Loading...
HomeMy WebLinkAbout2011-087 CCR Member Tim Roche introduced the following resolution and moved its adoption: RESOLUTION NO. 2011 -87 RESOLUTION ADOPTING A "REQUEST FOR PROPOSALS FOR PROVIDING FINANCIAL ADVISORY SERVICES" DOCUMENT WHEREAS, the City of Brooklyn Center is required by its City Council Code of Polices to periodically solicit proposals for performance of financial advisory services and assist in the sale of bonds and other debt instruments; and WHEREAS, a form for obtaining those proposals, the "Request for Proposals for Financial Advisory Services" has been developed by staff and reviewed and approved by the Financial Commission; and WHEREAS, the City Council desires to obtain such professional services at both the highest level of industry performance and the most reasonable cost possible. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that the "Request for Proposals for Financial Advisory Services ", dated June 2011, is approved and should be distributed to firms wishing to prepare proposals for performance of the annual audit. June 13, 2011 - > Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Kay Lasman and upon vote being taken thereon, the following voted in favor thereof: Tim Willson, Carol Kleven, Kay Lasman, Tim Roche, and Dan Ryan; and the following voted against the same: none; whereupon said resolution was declared duly passed and adopted. RESOLUTION NO. 2011 -87 City of Brooklyn Center, Minnesota Request for Proposals for Financial Advisory Services I. Statement of Purpose The City of Brooklyn Center, Minnesota is inviting proposals for the purpose of selecting a firm serve as independent financial advisor to the City. The-City expects-to select a financial advisor who will serve the City fora period of,four to six years, commencing .on 1 January 2012. The independent financial. advisor will be expected to perform services as required by the City in*a professional and - timely manner. II. General Information Regarding the City The City of Brooklyn Center is a northern suburb of Minneapolis. The City is wholly ithin Hennepin Coun and encompasses a re approximately Y p ty p n a a appro m y 8.5 square miles. The Mississippi River forms the City's eastern boundary. The City experienced its most rapid growth from 1959 to 1979 when the City's population grew from 4,300 to its peak of 35,173. Following a period of decline in both population and the number of households, both categories have stabilized and are recovering slowly. The 2010 U.S. Census certified the population at 30,104, a 3.2 %increase from the 2000 Census. "The number of households decreased from 11,430 in 2000 to 10,756 in 2010; likely a. result of the foreclosure crisis. Brooklyn Center has been a municipal corporation since 1911, and is governed under Home Rule Charter adopted in 1966 and subsequently amended. The City has a Council- Manager form of government. The Mayor and four City Council members are elected to serve overlapping four -year terms. The current governing body is: Tim Willson Mayor Term expires 12 -31 -2014 Carol Kleven Council Member Term expires 12 -31 -2014 Dan Ryan Council Member Term expires 12 -31 -2014 Kay Lasman Council Member Term -expires 12-3i-201.2- Tim Roche Council'Member Term expires 12 -31 -2012 The City Manager, Cornelius Boganey, is responsible for the administration of Council policy and the day -to -day administration of the City. The City'Manager is RESOLUTION NO. 2011 -87 appointed by the City Council and serves at its discretion. Mr. Boganey has served as City Manager since September of 2006. Daniel Jordet serves as Director of Fiscal & Support Services and is responsible for the City's financial operations. His department handles all - financial reporting, investments and debt issuance. Mr. Jordet has served the City since January of 2004.. Prior to that. time he served as the chief financial.officer in the cities of Mankato and Saint Peter. III. Scope of Services The independent financial'advisorwill assist the City in the analysis, structure, issuance and management of debt on a regular ongoing basis. The financial advisor may also be called upon to provide other financial advisory services on an as needed basis, such as analyzing capital financing plans, tax increment financing plans or projects, utility or service rate analysis, housing financing or assistance with negotiated transactions. Services will include, but not be limited to, the following tasks: Task 1: Debt Issue Development and Oversight Task 2: Continuing Disclosure /Arbitrage Rebate Management Task 3: Financial Planning and Debt Management Task 4: Economic Development Planning Any outlined task(s) requiring periodic updates and 'monitoring' by the City and /or the financial advisor for which working documents and /or computer models are necessary will be formatted so as to be compatible with the City's most current software. Such working documents will become property of the City. Task 1: Debt Issue Development and Oversight The financial advisor will be responsible for the oversight of issuance of all competitive and negotiated debt sale /bond sale transactions. This task will include A.) Planning and Development; B.) Marketing; C.) Bond Closing and D.) Work Products. A. Planning and Development The financial advisor will: 1.) . Research and advise the City on. aspects of tax exemption and arbitrage in cooperation with Bond Counsel and the City Attorney; .8 RESOLUTION NO. 2011 -87 2.) Review preliminary feasibility studies in cooperation with City officials and administrative staff, attorneys, bond counsel and others as requestedby the City outlining each proposed project, its costs, funding sources and alternatives, existing debt and future debt service requirements and cash flow and revenue needs; 3.) Analyze the proposed financing, including financing; alternatives to determine methods of strengthening marketability, and recommend the best method of marketing consistent with current economic and conditions and rating agency criteria; - 4.) Consult with established rating agencies regarding proposed .financing and assist the City in obtaining the most favorable rating possible by directing preparation of appropriate information including analysis of City credit' rating with reference to standards, national trends and other relevant factors and advising the City on measures that may be taken to improve bond and credit ratings; 5.) Act as a liaison with bond counsel and coordinate the work of Other professionals providing similar services. B. Marketing The financial advisor will assist the City in the marketing of bond issues. The following duties will be required. 1.) Advise the City on the appropriate terms and conditions of the sale, such as maturity schedule, discounts, par, premium, net interest cost and true interest rate. The financial advisor will consult with the City and bond counsel concerning bond covenants and advise on advantageous features such as parity provisions,. reserve requirements, sinking fund payments and redemption provisions. The financial advisor will also assist the City in preparation of call notices and provisions. 2.) Advise on the timing of bond sales, taking into consideration such factors as changing economic conditions, current and projected market trends and convenience to the City. 3.) Assist in preparation of the Official Statement on behalf of the City and with the cooperation of the City and the bond counsel. Advise the City on.full disclosure requirements and conformance to suggested guidelines. Coordinate review and revision with the City, bond counsel and underwriter. This Official Statement will be subject to final review by City officials, City staff and bond counsel. 4.) Assist in publicizing the issue with an Official Statement, notice of sale, bid forms and. other means necessary and advisable to develop regional public and institutional interest, 9 RESOLUTION NO. 2011 -87 5.) Advertise the bond sale in prominent financial publications as may be appropriate to the sale in addition to coordinating .local publication requirements with bond counsel. C. Bond Closing The financial advisor will assist the City in directing, coordinating and supervising bond sale closing transaction. -Such services will include: 1.) Coordinate the compilation of transcript material; 2.) Oversee all bond pricing and registration procedures; 3.) Solicit proposals for investment of funds, if necessary. D. Work Product The financial advisor will be expected_ to provide the following work products for each debt offering unless specific arrangements are made for one or more of these products to be provided by others: 1.) Pre -sale analysis; 2.) Offering statement; 3.) Post sale analysis: 4.) Such other studies; including analysis of funding alternatives, cash flow projections and materials necessary for.financial planning and bond sale purposes. Task 2: Continuing Disclosure / Arbitrage Rebate Management The financial advisor will assist the City in the administration of continuing disclosure and arbitrage/ rebate management. These services will include, but are not Limited to: A. Compile and assist with the distribution of an annual report for submission to all nationally recognized municipal securities information repositories and the state information depository, if one is designated, and the Municipal Securities Rulemaking Board, as required by the provisions of the specific issue; B. Monitor material eventsthrough periodic requests for information and assist with the disclosure of materi al. events; C. Advise on arbitrage and /or rebate provisions; i 10 RESOLUTION N0. 2011 -87 D. Monitor funds subject to arbitrage restrictions and calculate rebates. Task 3:' Financial' Planning and Debt Management The financial advisor will assist the City in financial planning and debt management activities. These services: will include, but are not limited to: A. Assist and advise with the implementation of a long -range financial plan for the City. Development of the plan will .include: 1.) establishing policies and procedures; 2.) identifying and evaluating objectives; 3.) review.and analyze cost effective alternatives for financing the City's operating and capital requirements; and 4.) review revenue requirements of the various enterprise funds. B. Assist and advise the City in. managing its short- and long -term debt programs. Such services will include: 1.) assist and advise on development of debt management policies including total debt, levy and per capita levels, pay back provisions, etc.; 2.) monitor markets for opportunities to refinance existing City debt; . 3.) advise and assist the City in determining the -scope of new debt financing; 4.) assist in'communications with the financial community to.promote the City's debt securities and improve bond ratings; and 5.) assist the City in meeting its secondary market disclosure requirements. Task 4: Economic Development Planning . The financial. advisor will assist the in fiscal planning of debt and debt management of its economic development activities in the following areas: A. Housing; including senior housing, market rate housing, housing rehabilitation and pro forma models for projects. B. Tax Increment Financing; including TIF plans, TIF debt management plans, TIF policies and procedures, issuance 'of TIF debt, and. pro forma models for projects. C. Economic Development; including establishment of policies and procedures, project analysis, tax impacts, and job creation. possibilities. 11 ' . RESOLUTION NO. 2011 -87 IV. Proposal Form and Content A. Qualifications Proposals should include responses to each of the following items. Include sample'work products as appropriate to address the services expected, as outlined in the Scope of Services section. Please construct the proposal with responses in the same order as listed below to facilitate review and comparison . by the Review Committee. 1. Experience of the firm with bond issues ih.the State of Minnesota'. 2. Experience of the firm with jurisdictions of comparable characteristics to the City of Brooklyn Center. 3. Identify the primary contact that will be assigned to work with the City. List the qualifications and experience of the individual. If more than one person is assigned identify the senior level contact. Include resumes for all financial advisor staff listed as contacts for the City. 4. Experience dealing with bond rating agencies..- Summarize the firms approach to preparing and presenting bond rating p 9 p P p 9 p information. 5. Outline the firm's experience in providing debt issue development and oversight services as outlined in the Scope of Services section. 6. Outline the firm's experience in providing continuing disclosure /arbitrage rebate management services as outlined in - the Scope of Services. 7. Outline the firm's experience in providing financial planning and debt management services as outlined in the Scope of Services section. 8. Outline the firm's experience in providing economic development planning services as outlined in the Scope of Services section. 9. Summarize the firm's support services capability (i.e. computer printing, word processing, graphics, etc.) and whether these services are done in -house or are contracted out. 10. Outline the firm's experience irradvance refunding for local governments. 11. Describe the process by which your firm will acquire a working knowledge of the City's outstanding debt so as to be able to advise the city n an financial legal, market or regulatory tY Y 9 9 rY issues in the future. 12. List of references, relating to projects completed for local governments over the past five'years with comparable characteristics to the City of Brooklyn. Center, preferably in the 12 RESOLUTION NO. 2011 -87 State of Minnesota. Provide .name, address and telephone number of a contact with the reference government. ` B. Fees Provide the pricing schedule the firm will use to charge the City for providing the services described in the 'Scope of Services section'. Differentiate between fees which may be based upon a sliding scale tied to the size of a bond issue, fees for different types of bond issues, fees which may be flat fees for service or a flat annual fee and hourly rates for all personnel who may be billed on that basis. Also indicate the level of'service commensurate with the quoted price. If the firm is proposing that the City pay the cost of incidental expenses state clearly. what types of expenses'will be included in these charges. C. Terms and Conditions 1. The City reserves the right to reject any or all of -the proposals or to negotiate a. contract in the best interests. of the City at the absolute and sole discretion of the Brooklyn Center City Council. 2. The firm will submit five copies of its proposal to the Finance Department of the City no later than 3:00 PM on Friday, 26 August 2011 Submittals may be addressed to: City of Brooklyn Center Financial Advisor RFP 6301 Shingle Creek Boulevard Brooklyn .Center, Minnesota 55430 -2199 All proposals must be signed by an individual duly authorized by . the firm. All proposals will be come property of the City. No public bid opening will be held. A list of the names of the firms submitting proposals will be made available no later than 11 :00 AM on Tuesday, 30 August 2011. 3. The Director of Fiscal and Support Services, Daniel Jordet, will be the City's. primary contact for this process. He will coordinate appointments with staff and /or the Review Committee for the interview and selection process. Questions and requests for information will be directed to him. Any other contact with City staff, the Mayor, Council Members or City Manager may be grounds for immediate rejection of the firm's proposal, at the discretion of the City. 4. Only independent financial advisors should submit proposals to-the City. An independent financial advisor is a firm that does.not' 13 RESOLUTION NO. 2011 -87 engage in the underwriting of municipal securities nor is it affiliated with any firms engaging in the underwriting of municipal securities. 5. The City reserves the right to request clarification of any - information submitted and to request additional information for any or all proposers. 6. Any agreement or contract resulting from this process and the acceptance of 'a frm's proposal will -be on' forms supplied by or approved by the Cityand will contain,'at a minimum, the applicable provisions of this Request for Proposals. The' City reserves the right to reject any agreement or contract that does not conform to the Request for Proposals, any additional negotiated terms or conditions, and City or State requirements for agreements and contracts. 7. The firm will not subcontract or assign any interest in any contract - or agreement without the prior written consent of the City executed . by an authorized individual, -8. No .reports, information or data given to or prepared by the financial advisor under the contract or agreement will be made available to any individual or organization by the financial advisor without the prior written approval of the City. 9. All data, documents and other information provided to the City by the financial advisor as -a result of this Request for Proposals will become property of the City and subject to its disposal. 10.All costs associated with the preparation ofthe firm's proposal will be the responsibility of the firm submitting the proposal 11.The financial advisor selected will provide evidence that they carry professional liability insurance with minimum per incident coverage of $ 1,000,000 and a maximum deductible of $50,000. 12.The financial advisor will be expected to meet with City Officials at Brooklyn Center City Hall as during the course of the service engagement. ` 13.The City expects the financial advisor to respond to occasional telephone inquiries that do not require considerable research on a complimentary basis. 14.This document is a Request for Proposals, not for Bids. The City, therefore, reserves the right to negotiate with any qualifying firm or party on any matter in the proposal V. Selection Process A. Interviews The City may select two or more firms to make presentations to a Review Committee. prior to making a final recommendation the City Council. 14 RESOLUTION NO. 2011 -87 'Each selected firm will'make'a presentation of no more than 30 minutes to the Committee and then respond to questions from the Committee. B. Schedule The City has developed the following schedule of events for this process: Proposals Due Friday, 26 August 2011 Selection of Finalists -Friday, 9-September 2011 Interview Finalists Tuesday, 20 September 2011 through Friday, 23 September 2011 Recommendation to City Council Monday, 24 October 2011 C. Evaluation of Proposals. A Review Committee will-consider the proposals and make a recommendation to the City Council. The recommendation will be based on the following criteria: I. Quality of the proposal and its responsiveness to the criteria of the Request for Proposals. 2. Experience and creativity in providing financial advisory services to cities of comparable size and character to the City of Brooklyn Center. 3. Experience and availability of staff assigned to serve the City... 4. Proven ability to provide all of the services described in the. Scope of Services. 5. References. 6. Fees. Questions or requests for additional information may be directed to the Director of Fiscal and Support Services at diordetCa )ci.brooklyn- center.mn.us at telephone number (763) 569 =3345. Thank you for your consideration of this Request for Proposals. 15