C7D-Approve Recommendation Of Underwriters For Bonds To Be Issued In 2015COMMISSION ITEM SUMMARY
Condensed Title:
APPROVING THE CITY MANAGER'S RECOMMENDATION OF UNDERWRITERS FOR THE MIAMI
BEACH REDEVELOPMENT AGENCY TAX INCREMENT BONDS, THE RESORT TAX REVENUE
BONDS, THE PARKING REVENUE BONDS FOR THE MIAMI BEACH CONVENTION CENTER
PROJECT AND FOR THE STORMWATER REVENUE BONDS
lntended Outcome
AGENDA trEM c 7D
Maximize the Miami Beach Brand as a Wodd Class Destination
Ensure Reliable Stormwater Management and Resiliency Against Flooding By lmplementing
Select Short and Lono Term Solutions
pporting Data (Surveys, Environmental Scan, etc
Item Summary/Recommendation :
The Mayor and City Commission accepted the City Manager's recommendation to create a pool of 15
firms for underwriting services at their meeting on April 14,2010.
The process to select firms to serve as a senior or co-manager for a particular issue involves a review
of work previously assigned to the various firms during the term of the pool, experience in and
commitment to Florida municipal finance, the capability of a firm to senior manage complex credit
structures, the size of the bond issue to be sold, and the various markets that the firm has access to
for marketing and distribution. A firm's response to other business requests, such as the City's Line of
Credit, and resulting commitment to the City is also considered. The list of firms is recommended by
the City Manager following consultation with the City's Chief Financial ffiicer and Financial Advisor.
Since the time that the 15 firms were originally selected for the underwriting pool, two firms no longer
have public finance representatives in Florida and one firm has withdrawn. All of the 12 remaining
firms are included in the recommended teams for the 2015 financings.
The Administration recommends that the Mayor and City Commission of the City of Miami Beach,
Florida approve the City Manager's recommendation of underwriters for the Miami Beach
Redevelopment Agency Tax lncrement Bonds, the Resort Tax Revenue Bonds, the Parking Revenue
Bonds for the Miami Beach Convention Center and for the Stormwater Revenue Bonds
Financial !nformation:
Source of
Funds:
Amount Account
1 To be paid from bond proceeds at the time of
issuance
2
3
OBPI Tota!
Financia! lmpact Summary:
T:\AGENDA\201S\February\mbcc and stormwater underwriting teams - summary.docx
MIAMIBEACH n^fE a-lh t{161
MIAMIBEACH
City of Miomi Beoch, I200 Convention Center Drive, Miomi Beoch, Florido 33,l39, www.miomibeochf .gov
COMMISSION MEMORANDUM
To: Mayor Philip Levine and Members
FROM: Jimmy L. Morales, City Manager
DATE: February 11,2015
the City
OF MIAMI BEACH, FLORIDA, APPROVING THE CITY MANAGER'S
RECOMMENDATION OF UNDERWRITERS FOR THE MIAMI BEACH
REDEVELOPMENT AGENGY TA)( INGREMENT BONDS, THE RESORT
TA)( REVENUE BONDS, THE PARKING REVENUE BONDS FOR THE
MIAMI BEACH CONVENTION CENTER PROJECT AND FOR THE
STORMWATER REVENUE BONDS
ADM!NISTRATION RECOMMENDAT!ON
Approve the resolution.
BACKGROUND
On December 9, 2009, the Administration recommended that the Mayor and City Commission
authorize the issuance of a Request for Proposals (RFP) to select a pool of investment banking
firms to provide Undenruriter Services for the issuance of various long-term municipal bonds.
RFP No. 15-09i10 for Underwriter Services for a Five Year Period, with five one year renewals
was issued on January 27, 2010, with an opening date of February 24, 2010. The Mayor and
City Commission accepted the City Manager's recommendation to create a pool of 15 firms for
undenruriting services at thelr meeting on April 14,2010.
The selected firms participate in the bond issues by assisting the City, its Chief Financial Officer
and its Financial Advisor, Julie Santamaria RBC Capital Markets, with the development of
financing structures, preparation of preliminary and final official statements, bond resolutions,
and other documentation as may be required. The undenruriters price, market and sell the
bonds to investors in municipal securities.
Additionally, firms appointed as the senior managing undenrvriter are required to provide the
services listed below throughout the proposed engagement. Co-managing undenarriters provide
assistance as requested and support in the marketing, distribution and undenrvriting of the
assigned transactions. The City, at its sole discretion, may select one or more firms to serve as
senior manager or co-manager from the undenarriting team for each of its bond financings. The
City reserves the right to assign less than all of the members of the underwriting pool for a
particular financing, and reserves the right to remove any undenarriter from participation in the
underwriting syndicate if the underwriter and the City are unable to agree on any provision of
162
the bond purchase contract. All fees are contingent upon the issuance of the proposed bonds.
The required services include, but are not limited to, the following:
1. Participate in drafting of all bond documents, including the Official Statement.
2. Assist in preparation and discussions with rating agencies and bond insurers, if
requested.
3. Make recommendations for the proposed financing, including, but not limited to, the
timing of the sale, the overall sales approach, the structure of the bonds, the call
provisions, and the use of credit enhancement.
4. Lead the underwriting team in marketing and distributing the bonds to both retail and
institutional investors.
5. Underwrite the financing based upon terms and conditions agreed to by both the City,
financial advisor, and the underwriters in the Bond Purchase Agreement.
6. Assist with the closing of the financing, including reviewing all closing documents and
providing a post-financing report to the City which highlights the key characteristics of
the financing.
ANALYS!S
The process to select firms to serve as a senior or co-manager for a particular issue involves a
review of work previously assigned to the various firms during the term of the pool, experience
in and commitment to Florida municipal finance, the capability of a firm to senior manage
complex credit structures, the size of the bond issue to be sold, and the various markets that the
firm has access to for marketing and distribution. A firm's response to other business requests,
such as the City's Line of Credit, and resulting commitment to the City is also considered. The
list of firms is recommended by the City Manager following consultation with the City's Chief
Financial Officer and Financial Advisor. Since the time that the 15 firms were originally selected
for the underwriting pool, two firms no longer have public finance representatives in Florida and
one firm has withdrawn. All of the 12 remaining firms are included in the recommended teams
for the 2015 financings. The firms proposed are as follows:
$350.000.000 Redevelopment Aqency Tax lncrement Revenue Bonds
Senior Manager
Co-Manager
Senior Manager
Co-Manager
$205.000.000 Resort Tax Revenue Bonds
- Morgan Stanley
- Wells Fargo Securities, lnc.- Bank of America Merrill Lynch- Raymond James Morgan Keegan
- Loop Capital Markets
- Bank of America Merrill Lynch
- Citigroup- Morgan Stanley- MFR Securities, lnc. (Ramirez)
- Siebert Brandford Shank
163
$60.000.000 Parkinq Revenue Bonds
Senior Manager - JP MorganCo-Manager - SunTrust Robinson Humphrey- Estrada Hinojosa & Co.
$1 00.000.000 Stormwater Revenue Bonds
Senior Manager - Wells Fargo Securities, lnc.Co-Manager - Citigroup- MFR Securities, lnc. (Ramirez)
- Siebert Brandford Shank
A list of the undenruriter's previous transactions with the City during the term of the pool and the
resulting total participation in the City's bond financings based on this recommendation is
provided on the following page.
CONCLUSION
The Administration recommends that the Mayor and City Commission of the City of Miami
Beach, Florida approve the City Manager's recommendation of undenryriters for the Miami
Beach Redevelopment Agency Tax lncrement Bonds, the Resort Tax Revenue Bonds, the
Parking Revenue Bonds for the Miami Beach Convention Center Project and for the Stormwater
Revenue Bonds.
JLM/PDW
164
Firm
Se nior
Manaqer Co Manaqer Total
Proposed 201 5 Transactions
Senior Co
Manager Manager Total
# lssues # lssues # lssues
City of Miami Beach, Florida
Current Team of lnvestment Banking Firms
As ol 212115
Undenrvriting Experience with the City
Since 2010
Total After Proposed 2015
Transactions
Senior
Manager Co Manager Total
###
lssues Year lssues Year lssues
##
lssues Year lssues
#
Year lssues
1
2
3
4
5
6
7
Bank of America Merrill Lynch 0
Citigroup
Estrada Hinojosa
Fifth Third*
JP Morgan
Loop Capital Markets
MFR Securities (Ramirez)
8 Morgan Stanley
9 Raymond James Morgan Keegan
10 Siebert Brandford Shank
11 Steme Agee.
12 SunTrust Robinson Humphrey
1 2011
1 2010
1
1
2
2
1
0
I
I
2
2
1
2
n
1
2
1
2
1
0
0
1
2
1
1
2
0
1
1
0
0
0
I
0
0
I
0
0
0
0
1
I
0
1
1
0
1
2
0
1
1
0
1 2015
2015,
2011
201s,
2010
2015,
2011
2015,
2010
2015
2015,
201 1
2015,
2010
2015
2015,
2011
2015
0
0
0
2
0
0
1
1
0
1
0
1
2
a
2
0
0
2
2
2
2
2
0
2
1
3
3
2
0
2
2
2
3
3
2
1
2
2
0
0
1 2011
0
0
0
1 2011
0
1 2011
1 2010
0
0
2015,
2011
2015
2011
2010
2015
2010
2011
2010
2011
1
0
0
1
0
13 Wells Fargo Securities 0 0
'No longer has public finance representatires based in Florida.
FirstSouthwestresigned from the City's underwriting pool during fie ln\€stmentAdvisorprocurementprocess in20'14.
165
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAM! BEACH, FLORIDA, APPROVING THE CITY MANAGER'S
RECOMMENDATION OF UNDERWRITERS FOR BONDS THE CITY
ANTICIPATES WILL BE ISSUED IN 2015, INCLUDING STORMWATER
REVENUE BONDS AND BONDS RELATING TO THE MIAMI BEACH
CONVENTION CENTER RENOVATION AND EXPANSION PROJECT
("MBCC PROJECT"), INCLUDING MtAMt BEACH REDEVELOPMENT
AGENCY TAX INCREMENT BONDS, RESORT TAX REVENUE BONDS,
AND PARKING REVENUE BONDS.
WHEREAS, on January 27, 2010, the City issued RFP No. 15-09110 for Underurrriter
Services for a Five Year Period, with five-one year renewals, to select a pool of investment
banking firms to provide Undenvriter Services for the issuance of various longterm municipal
bonds; and
WHEREAS, on April 14, 2010, the Mayor and City Commission accepted the City
Manager's recommendation to create a pool of 15 firms for undenruriting services; and
WHEREAS, the process to select firms to serve as a senior or co-manager for a
particular issue involves a review of work previously assigned to the various firms during the
term of the pool, experience in and commitment to Florida municipal finance, the capability of a
firm to senior manage complex credit structures, the size of the bond issue to be sold, and the
various markets that the firm has access to for marketing and distribution; and
WHEREAS, after considering the foregoing factors, the list of firms attached hereto as
Exhibit "A" is recommended by the City Manager following consultation with the City's Chief
Financial Officer and its Financial Advisor RBC Capital Markets.
NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission of the City of Miami Beach, Florida approve the City Manager's recommendation of
undenvriters set forth in Exhibit "A" attached hereto, for bonds the City anticipates will be issued
in 2015, including Stormwater Revenue Bonds and bonds relating to the MBCC Project,
including Miami Beach Redevelopment Agency Tax lncrement Bonds, Resort Tax Revenue
Bonds, and Parking Revenue Bonds.
PASSED and ADOPTED this 11th day of February,2015.
MAYOR
ATTEST:
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
L- + -t5
Doter=H*t
166
Exhibit "A"
PROPOSED LIST INVESTMENT BANKING FIRMS TO
PROVIDE UNDERWRITER SERVICES
FOR THE ISSUANCE OF THE PROPOSED LONG-TERM MUNICIPAL BONDS
$350.000.000 Redevelopment Aoencv Tax Increment Revenue Bonds
Senior Manager - Morgan StanleyCo-Manager - Wells Fargo Securities, lnc.- Bank of America Merrill Lynch
- Raymond James- Loop
$205,000.000 Resort Tax Revenue Bonds
Senior Manager - Bank of America Merrill LynchCo-Managet - Citigroup- Morgan Stanley- MFR Securities, lnc. (Ramirez)
- Siebert Brandford Shank
$60.000,000 Parkinq Revenue Bonds
Senior Manager - JP MorganCo-Manager - SunTrust Robinson Humphrey- Estrada Hinojosa & Co.
$1 00.000.000 Stormwater Revenue Bonds
Senior Manager - Wells Fargo Securities, lnc.Co-Managet - Citigroup- MFR Securities, lnc. (Ramirez)
- Siebert Brandford Shank
167
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