HomeMy WebLinkAbout2011 05-19 FCA AGENDA
Brooklyn Center Financial Commission
Thursday, May 19, 2011 — 6:30 PM
All America Conference Room (Main Level of City Hall)
I. Call to Order
II. Approval of Agenda
III. Approval of Minutes
a. March 17, 2011
IV. Review of RFP for Financial Advisor
V. Update on Prior Issues
a. Use of State Revenue Memo to Council
b. RFP for Insurance Agent
VI. Other Business
a. Joint Meeting with City Council on June 6, 2011 - CAFR
VII. Adjournment
Financial Commission
Work Session Meeting Minutes
17 March 2011
1. Call to Order
The meeting was called to order by Newman at 6:39 PM
Members Present: Commissioners Newman, Landis, Schueller, Plunkett and
Agbssou. Council Member Roche was absent. Staff present were City Manager
Boganey and Director of Fiscal & Support Services Jordet.
2. Adoption of the Agenda
Without objections, the Agenda was declared adopted as presented.
3. Minutes
Without objections, the Minutes for the 20 January 2011 meeting were declared
adopted as presented.
4. Review of City Council Requests
A Council request to address State Aid Revenues and their use when received by the
City was discussed as a continuation of a conversation form the January 20, 2011
meeting. The Commission was presented with a draft memorandum for
consideration. It detailed the discussions of the Financial Commission concerning
use of LGA and MVHC, two traditional revenue sources which have become
unreliable. Following some revisions of the draft memorandum conclusions it was
moved by Schuller and seconded by Landis that the revised memorandum be
presented to the City Council as the Financial Commission's recommendation on the
receipt and use of LGA and MVHC. With all members present voting in favor, the
motion was adopted.
5. Review of RFP for Insurance Agent of Record
Jordet presented a draft Request for Proposals for an Insurance Agent of Record.
This RFP is the next one due in the sequence for RFP's for professional services
adopted as a City Council policy in 2006. Following discussion of the details and the
RFP process Landis moved and Plunkett seconded a motion adopting the RFP as
presented. With all members present voting in favor the motion was adopted.
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8. Other Business
The Commission was remided of the schedule joint meeting of the City Council and
all Commission members in Constitution Hall on Wednesday, 6 April 2011 at 6:00
PM.
No other business was brought before the Commission.
9. Adjournment
With no other business to transact, the meeting was adjourned at 7:40 PM.
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Memorandum
Date: 17 May 2011
To: Financial Commission
Fr Daniel Jordet, Director of Fiscal & Support Services
Re: RFP for Financial Advisory Services
Attached is a draft Request for Proposals soliciting financial advisor services for
the City over the next six year period. The last previous RFP process pursued for
these services was done in 2004.
Section III on the Scope of Services details four tasks the City expects the
Financial Advisor to perform. Those tasks are explained in greater detail in the
balance of Section III.
The selection process for the successful proposer includes review of the
proposals by a Committee made up of members of the City Council, Financial
Commission and Staff, all appointed by the Mayor in consultation with the Chair
of the Financial Commission. The schedule for completion of the RFP process on
the last page indicates that the Committee will recommend two or more finalists
for interview by Friday, 9 September 2011. Interviews of the finalists will be
conducted by the Committee between 20 September 2011 and 23 September
2011. A final decision will be recommended to the City Council on Monday, 24
October 2011.
Staff is currently aware of four firms who would be able to provide the services
requested. These are:
• Springsted, Inc. (the incumbent)
Ehlers, Inc.
Public Financial Management
Northland Securities
If other firms should be discovered or make themselves known to the City they
will be given the chance to respond to the RFP as well. Of these four, staff
expects responses from at least three of the firms.
Please bring questions and/or comments to the May meeting.
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SECTION H - GENERAL POLICIES
City Council Code of Policies
SCHEDULE FOR PROFESSIONAL SERVICES POLICIES
2.80 Policy and Procedure on Requests for Proposals for Financial Professional Services
1. Need for Policy
The City needs a policy and procedure to provide for the orderly conduct of requesting
proposals for professional services for handling financial affairs, to ensure that all
services will be periodically reviewed, and that the proper balance will be maintained
between cost and quality of services.
2. Policy
A. All professional services in the area of City finances will be periodically let out
for request for proposals (RFPs) according to an established schedule.
B. Service levels will be monitored by the City Council and Staff and if
unsatisfactory service is received, that contract will be re-advertised prior to the
year set in the schedule.
C. Quality of service will be the primary factor in awarding a contract for
professional service, but cost will also be a determinant.
3. Procedure
A. A schedule shall be established for the conduct of RFPs. The schedule should be
adhered to unless there is a performance problem or other justification for an
earlier RFP. Going to the market too frequently with RFPs expends Staff time,
requires extensive orientation of new professionals, and discourages quality firms
from submitting proposals at their most attractive price since they will expect to
only have the contract for a short time.
B. Specifications tailored to the professional service to be advertised will be
prepared by Staff, reviewed by the Financial Commission, and approved by the
City Council.
C. A review committee made up of the City Manager and Finance Director shall
review proposals for Banking Services, Insurance Agent, Risk Management
Consultant, and Custodian for Investment Securities. Proposals for Auditor and
Financial Advisor shall be initially screened by Staff, and then reviewed by a
committee of City Council Members and Financial Commission Members
appointed by the Mayor in consultation with the Chair of the Financial
Commission, with the approval of the City Council, which committee shall also
include the City Manager and Finance Director.
City of Brooklyn Center
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SECTION II - GENERAL POLICIES
City Council Code of Policies
D. The specifications will emphasize the abilities, qualifications, and experience of
the applicant firms to provide high quality service to the City. Price will be
considered after one or more applicants have been identified as providing the
desired quality of service. When appropriate, the specification shall require prices
to be submitted in a separate, sealed envelope to be opened after applicants have
been ranked according to quality.
E. The City Manager shall make a recommendation to the City Council of a provider
to be appointed to a multi-year engagement. It shall be written in the engagement
that the appointment may be terminated earlier.
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*Awarded to Deloite Touche who subsequently withdrew after the FY 2001 audit.
Balance of engagement awarded to HLB Tautges Redpath for FY 2002—FY 2006,
Reference: City Council Resolution Nos. 2006-120; 2000-120; 99-20; City Council Minutes
5/28/96
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City of Brooklyn Center
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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 to serve as independent financial advisor to the City. The City
expects to select a financial advisor who will serve the City for a 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 within Hennepin County and encompasses an area of approximately 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 a 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 12-31-2012
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
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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 advisor will 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;
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2.) Review preliminary feasibility studies in cooperation with City
officials and administrative staff, attorneys, bond counsel and
others as requested by 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 such other means necessary and advisable to
develop regional public and institutional interest.
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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 events through periodic requests for information and
assist with the disclosure of material events;
C. Advise on arbitrage and/or rebate provisions;
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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 City 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.
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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 in 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
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 in advance 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 on any financial, legal, market or regulatory 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
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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 )ordet, 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
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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 firm's proposal will be on forms supplied by or
approved by the City and 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 of the 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 needed 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 to the City Council.
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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:
1. 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 diordet @ci.brooklyn-center.mn.us or at
telephone number (763) 569-3345.
Thank you for your consideration of this Request for Proposals.
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