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2007-26484 Reso RESOLUTION NO. 2007-26484 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 20-06/07, FOR FINANCIAL ADVISORY SERVICES, FOR A FIVE-YEAR PERIOD WITH FIVE ONE-YEAR RENEWAL OPTIONS; AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE TOP RANKED FIRM OF RBC CAPITAL MARKETS; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION. WHEREAS, RFP No. 20-06/07 for Financial Advisory Services for a Five-Year Period with Five One-Year Renewal Options (the "RFP") was issued on December 19, 2006, with an opening date of January 31, 2007; and WHEREAS, the RFP seeks competitive pricing for financial advisory services involving the financial planning, project financial analysis, investment management, debt issuance, reporting, evaluation of proposals, and the development of financial strategy for capital projects taking into consideration the City's short and long term financial needs, available financing options and alternative debt structures, and computer support and modeling for complex financial analysis; and WHEREAS, a pre-proposal conference was held on January 8, 2007; and WHEREAS, BidNet issued bid notices to 35 prospective firms, RFP Depot issued bid notices to 1602 prospective firms, and 100 prospective firms viewed the RFP documents, which resulted in the receipt of four (4) proposals; and WHEREAS, the City Manager, via Letter to Commission (LTC) No. 058-2007, appointed an Evaluation Committee ("the Committee") consisting of the following individuals: . James Sutter, Director Internal Auditing, CMB . Georgina Echert, Assistant Director Finance, CMB . Larry Herrup, Resident and Independent CPA . James Bryant Kirkland III, CPA and Graduate of the Leadership Academy . Sanford Horwitz, Resident and Graduate of the Leadership Academy . Mark Gidney, Florida CPA . Alex Mendez, CFO, Mt. Sinai; and WHEREAS, on March 7, 2007, the Committee convened to rank the proposals; and WHEREAS, the Committee members were provided with general information on the scope of services, and Performance Evaluation Surveys, for all the firms being evaluated; and WHEREAS, the Committee reviewed and evaluated all four (4) proposals, and they unanimously recommended RBC as the top-ranked Firm; and WHEREAS, the City Manager concurs with the Committee's rankings, and would recommend that the City Commission authorize the Administration to negotiate with the top ranked firm; and WHEREAS, the City Manager further authorizes the Mayor and City Clerk to execute a Professional Services Agreement upon conclusion of successful negotiations by the Administration. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby accept the recommendation of the City Manager pertaining to the ranking of proposals pursuant to Request for Proposals (RFP) No. 20-06/07, for Financial Advisory Services for a Five-Year Period with Five One-Year Renewal Options; authorize the Administration to enter into negotiations with the top ranked firm of RBC Capital Markets; and further authorizing the Mayor and City Clerk to execute a Professional Services Agreement upon conclusion of successful negotiations by the Administration PASSED AND ADOPTED THIS 14th DAY OF March 2007. ATTEST: Robert Parcher fJlwd' r L\A~ CITY CLERK Michael Gongora Vice-Mayor T :\AGE N DA \2007\mar1407\Consent\RF P-20-06-07 FinancialAdvisoryServices - Resolution .doc APPROVED AS TO FORM & LANGUAGE & Fa CUllON COMMISSION ITEM SUMMARY Condensed Title: Accept the City Manager's Recommendation Pursuant To Request For Proposals No. No. 20-06/07, For Financial Advisory Services, For A Five-Year Period With Five One-Year Renewal Options; Authorizing The Administration To Enter Into Negotiations With The Top-Ranked Firm of RBC Capital Markets; And Further Authorizing The Mayor And City Clerk To Execute A Professional Services A reement U on Conclusion Of Successful Ne otiations B The Administration. Ke Intended Outcome Su orted: 1m rove The Cit 's Overall Financial Health and Maintain Overall Bond Ratin Issue: I Shall the City Commission approve the City Manager's recommendation? Item Summary/Recommendation: RFP No. 20-06/07 was issued on December 19, 2006 with an opening date of January 31,2007. A pre- proposal conference to provide information to firms submitting a response was held on January 8,2007. BidNet issued bid notices to 35 prospective firms, RFP Depot issued bid notices to 1602 prospective firms, and 100 prospective firms viewed the RFP documents, which resulted in the receipt of the following four (4) proposals: 1. P.G. CORBIN & COMPANY 2. PUBLIC FINANCIAL MANAGEMENT, INC. 3. PUBLIC RESOURCES ADVISORY GROUP 4. RBC CAPITAL MARKETS The City Manager via Letter to Commission (LTC) No. 058-2007. appointed an Evaluation Committee (lithe Committee") that convened on March 7, 2007. The Committee reviewed and evaluated all four (4) proposals, and they unanimously recommended RBC as the top-ranked Firm. In addition to submitting an excellent proposal, RBC has provided excellent services to the City for the last five (5) years. ACCEPT THE CITY MANAGER'S RECOMMENDATION Advisory Board Recommendation: I N/A Financial Information: Source of Amount Account Approved Funds: 1 None D 2 3 4 OS PI Total Financial Impact Summary: Fees are paid at the time of bond issuance from bond funds. islative Trackin POW \mar1407\Consent\RFP-20-06-07 FinancialA City Manager JMG It\ ..... MIAMIBEACH AGENDA ITEM DATE t17J 3--Itj-d7 lD MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM FROM: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez, City Manager ) ~ 0- March 14, 2007 {l TO: DATE: SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 20- 06/07, FOR FINANCIAL ADVISORY SERVICES, FOR A FIVE-YEAR PERIOD WITH FIVE ONE-YEAR RENEWAL OPTIONS; AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE TOP-RANKED FIRM OF RBC CAPITAL MARKETS; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION. ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANAL YSIS On December 6, 2006, the Mayor and City Commission approved the issuance of Request for Proposals (RFP) No. 20-06/07 for Financial Advisory Services, for a Five-Year Period with Five One-Year Renewal Options. The RFP seeks competitive pricing for financial advisory services involving the financial planning, project financial analysis, investment management, debt issuance, reporting, evaluation of proposals, and the development of financial strategy for capital projects taking into consideration the City's short and long term financial needs, available financing options and alternative debt structures, and computer support and modeling for complex financial analysis. The selected firm will also assist in the selection of investment banking teams for the City. The firm selected will participate in future bond issues by assisting the City with development of timetables, preparation of preliminary and final official statements, bond resolution, and other documentations as may be required. Further, the Financial Advisor will make recommendations of appropriate credit structures, evaluate the use of various credit enhancements, participate in presentations to the rating agencies and review the marketing and sale of any debt prior to, during and after the pricing of bonds. Pursuant to the City Key Intended Outcome to Improve the City's Overall Financial Health and Maintain Overall Bond Rating, the City's Finance Department is in need of a "best value" solution. Commission Memorandum - RFP-20-06/07 March 14, 2007 Page 2 of 3 RFP No. 20-06/07 was issued on December 19, 2006 with an opening date of January 31, 2007. A pre-proposal conference to provide information to firms submitting a response was held on January 8, 2007. Bid Net issued bid notices to 35 prospective firms, RFP Depot issued bid notices to 1602 prospective firms, and 100 prospective firms viewed the RFP documents, which resulted in the receipt of the following four (4) proposals: 1. P.G. CORBIN & COMPANY 2. PUBLIC FINANCIAL MANAGEMENT, INC. 3. PUBLIC RESOURCES ADVISORY GROUP 4. RBC CAPITAL MARKETS The City Manager via Letter to Commission (LTC) No. 058-2007, appointed an Evaluation Committee ("the Committee") consisting of the Following individuals: . James Sutter, Director Internal Auditing, CMB . Georgina Echert, Assistant Director Finance, CMB . Larry Herrup, Resident and Independent CPA . James Bryant Kirkland III, CPA and Graduate of the Leadership Academy . Sanford Horwitz, Resident and Graduate of the Leadership Academy . Mark Gidney, Florida CPA . Alex Mendez, CFO, Mt. Sinai On March 7,2007, the Committee convened with five committee members in attendance. Larry Herrup and Sanford Horwitz were unable to attend. The Committee unanimously nominated Mark Gidney as Chair of the Committee Georgina Echert, Assistant Finance Director, addressed the Committee and provided information relative to the scope of services currently being provided by the current firm; RBC Capital Markets (RBC). The Committee members were also provided with Performance Evaluation Surveys received from clients of the four (4) firms being evaluated. The Committee members did not require presentations from the firms being evaluated. The following Evaluation Criteria was used to evaluate and rank the groups or individuals: 1. Experience and Qualification of the Firm (30 points) 2. Experience and qualification of the team assigned to work with the City (20 points) 3. Proposed fees (40 points) 4. Past successful performance as Financial Advisor (10 points) The Committee reviewed and evaluated all four (4) proposals, and they unanimously recommended RBC Capital Markets as the top-ranked Firm. In addition to submitting an excellent proposal, RBC Capital Markets has provided excellent services to the City for the last five (5) years. The Committee then discussed the possibility of recommending a second or third firm, should negotiations with RBC Capital Markets be unsuccessful. A motion was made and unanimously agreed upon, that should negotiations with RBC Capital Markets be unsuccessful, the Committee at this time is reluctant in recommending one of the other Commission Memorandum - RFP-20-06/07 March 14, 2007 Page 3 of 3 firms. Instead, they recommended that the Committee re-convene and bring the other three (3) firms in for presentations and a question and answer (O&A) session, after which time they would either recommend another firm(s) or recommend that the City issue another Request for Proposals (RFP). The final scoring is as follows: James Georgina J. Bryant Sutter Echert Kirkland III LOW AGGREGATE TOTALS P.G. CORBIN & COMPANY PUBLIC FINANCIAL MANAGEMENT, INC. PUBLIC RESOURCES ADVISORY GROUP 13 14 18 RBC CAPITAL MARKETS 5 RFP No. 20-06-07 (#'s 1) (#'s 2) (#'s 3) (#'s 4) P.G. CORBIN & COMPANY 3 1 1 PUBLIC FINANCIAL MANAGEMENT, INC. 2 2 1 PUBLIC RESOURCES ADVISORY GROUP 2 3 RBC CAPITAL MARKETS 5 CONCLUSION A Resolution of the Mayor and City Commission of the City of Miami Beach, Florida accepting the recommendation of the City Manager pursuant to Request for Proposals (RFP) No. 20-06/07, for Financial Advisory Services, for a Five-Year Period with Five One- Year Renewal Options; Authorizing the Administration to enter into negotiations with the top- ranked Firm of RBC Capital Markets; and further Authorizing the Mayor and City Clerk to execute a Professional Services Agreement upon conclusion of successful negotiations by the Administration. T:\AGE N DA \2007\ma r1407\Consent\RFP-20-06-07FinanciaIAdvisoryServices -Memo .doc