Financial Advisory, Evensen DodMEMORANDUM
November 1, 2001
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Financial Advisory Services
Responses to a Request for Proposal for the provision of financial advisory services to
the City of Dubuque in connection with issuing bonds for the Vision Iowa Project and
other potential projects or existing bond refundings were recently received. A selection
committee consisting of Administrative Services Manager Pauline Joyce, Finance
Director Ken TeKippe, Community Development Specialist Aggie Kramer, Economic
Development Planner Pam Myhre and Assistant Finance Director Dawn Lang reviewed
the proposals and interviewed three firms.
The committee is recommending selection of Evensen Dodge as the City's financial
advisory firm for at least the next five years.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Ken TeKippe, Finance Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
TO:
FROM:
Michael Van Milligen, City Manager
Ken TeKippe, Finance Director
SUBJECT: Financial Advisory Services
DATE:
November 1,2001
A Request for Proposal (RFP) was recently developed relative to providing financial
advisory services to the City of Dubuque in connection with issuing bonds for the Vision
Iowa Project (Conference and Convention Center) and other potential projects or
existing bond refundings. The RFP was distributed to eight firms. Seven firms submitted
quality proposals in response to the invitation. The firms that submitted proposals
included: Robert W. Baird & Co., Inc.; Evensen Dodge, Inc.; Ehlers & Associates, Inc.;
Public Financial Management; Speer Financial, Inc.; Springsted Public Finance
Advisors; and US Bancorp Piper Jaffray. Ruan Securities did not respond with a
proposal but with a letter declining and expressing an interest in bidding on our bonds.
Two of the firms that submitted proposals (Robert W. Baird & Co. and US Bancorp
Piper Jaffray) also provide underwriting services (sell bonds), but agreed not to bid on
underwriting services if awarded the contract for providing financial advisory services.
A committee was established to review the proposals, interview selected firms and
provide a recommendation. The committee included Pauline Joyce, Administrative
Services Manager, Dawn Lang, Assistant Finance Director, Aggie Kramer, Community
Development Specialist, Para Myhre, Economic Development Planner, and myself.
After reviewing the proposals, three firms were invited to Dubuque for interviews. The
firms interviewed included Speer Financial, the City's financial advisor since 1963,
Evensen Dodge and US Bancorp Piper Jaffray. All the firms would be able to
adequately serve as our advisor based on the interviews.
The interviews were concluded on Monday, October 22nd. It was the unanimous
opinion of the committee that Evensen Dodge be retained as the financial advisory firm
for at least the next five years. Phone reference checks were conducted on the firm on
Tuesday, October 23rd. Factors that assisted in our selection included:
Size of firm with considerable staff experience assigned to team
Number of larger Iowa cities currently clients of firm (includes Ames, Ankeny,
Davenport, Iowa City, Marion, Sioux City)
· Longevity of clients
· Most favorable fees overall
Quality of presentation and questions asked during the interview
· Perceived ease of working with primary individual assigned to City
Number of bond issues involved in Iowa and across the country
· Familiar with Vision Iowa process and involved in preliminary bond issues for other
cities
In addition, selection of Evensen Dodge provides the opportunity for a bid on the bonds
by Piper Jaffray, a large player in the underwriting field.
The City has had a long relationship with Speer Financial firm and has always received
quality service. Their proposed fees were second highest overall for the anticipated
$5,000,000 December 2001 issue and third highest for the anticipated $8,360,000 April
2002 issue. The committee does not envision any negative impact on our future
borrowings due to a change in advisors. The primary factors affecting our interest costs
will continue to be:
Length of the bond issue
· Our credit rating
Official statement
· Type of issue
· Timing of issue
· Market
Financial strength of city
· Economy in area
· County and school district success
Copies of the RFP and Evensen Dodge's proposal and presentation report are
enclosed. It would be beneficial to notify the firm selected of the decision in the next few
days since work needs to begin soon to issue and close on bonds to satisfy our
commitment for the Vision Iowa Project. In addition, the current borrowing environment
provides for very favorable interest rates.
If there are any questions on the process or recommendation, the committee and/or I
would be available to review. Your approval to proceed would be appreciated. Thank
you.
KT/gm
Enclosures
Finance Department
50 West 13~ Street
Dubuque, Iowa 52001-4864
UB E
September 14, 2001
TO:
FROM:
SUBJECT:
Firms Interested in Providing Financial Advisory Services
Ken TeKippe, Finance Director
REQUEST FOR PROPOSAL-
INDEPENDENT FINANCIAL ADVISORY SERVICES
GENERAL
The City of Dubuque is seeking proposals to provide independent financial advisory
services. Qualified firms are invited to submit a proposal in the format outlined in the
Request for Proposal (RFP).
THE CITY
The City of Dubuque with a population of approximately 60,000 comprises an area of
approximately 27.5 square miles in Eastern Iowa. It is the home of five higher education
institutions including Clarke College, Loras College, University of Dubuque, Emmaus Bible
College and Northeast Iowa Community College. The City currently enjoys an Aa3
general obligation bond rating from Moody's Investors Service. The City Council has a
debt program, with General Obligation bond sales scheduled for December 2001 and April
2002. The December bond issue will be for approximately $5,000,000 and the Apdl issue
for $8,360,000. Scheduling of future year bond issues is dependent on projects approved
through the City's Five Year Capital Improvement Program, specifically from either
General Obligation or Revenue bond issues. The vast majodty of City projects are funded
from non-borrowing.
BASIS OF AWARD
A review committee of City staff will evaluate proposals based upon written responses to
the RFP, the respondent's qualifications, past financial advisor work, and proposed fees.
The City may schedule interviews with prospective firms. The City may reject any or all
proposals if, in the opinion of the City, they do not meet the City's requirements.
Service People Integrity Responsibility Innovation Teamwork
SUBMISSION DEADLINE
Five (5) copies of the written proposals must be received no later than 5:00 p.m., Friday,
September 28, 2001. The proposals should be addressed to:
Mr. Ken TeKippe, Finance Director
City of Dubuque
50 West 13~ Street
Dubuque, Iowa 52001-4864
A copy of the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended
June 30, 2000 is enclosed. A $6,265,000 TIF-backed General Obligation Bond Issue was
completed on November 22, 2000 and accordingly is not reflected in debt information in
the CAFR.
Questions concerning this RFP may be addressed to Ken TeKippe at 563~589.4133.
CITY OF DUBUQUE, IOWA
RFP: Financial Advisory Services
September 14, 2001
Description of Firm
Please provide a description of your firm including, at a minimum the following:
When the firm was established;
Location of the firm's main office and other offices and the number of
employees in each office; and
Certification that the firm is an independent financial advisory and/or a
member of National Association of Independent Public Financial Advisors
(NAIPFA).
Statement of Qualifications
Please provide a statement of your firm's qualifications.
Scope of Services
Key responsibilities of the Financial Advisor include:
Assists in evaluating capital funding alternatives and developing a financing
plan;
Assists with obtaining required authorizations, including referenda;
Provides advice on method of sales (where appropriate);
Develops RFP for financing team;
Evaluates proposal submissions;
Recommends timing of bond sale;
Identifies tasks, responsibilities, and dates for completing activities leading
up to bond sale;
Designs debt structure;
Provides advice on approach to ratings and assists with rating
presentations;
Evaluates use of and obtains bids for credit enhancement (if appropriate)
Assists in producing and reviewing documents, including preliminary and
final official statements;
Conducts pre-marketing of issue (competitive sale);
Evaluates bids, including accuracy of TIC calculation, and recommends
award (competitive sale);
Reviews pricing and allocations of bonds (negotiated sale);
Assists with closing arrangements and provide follow-up analysis;
Provides advice on investment of bond proceeds (if appropriate); and
Provides advice related to compliance with arbitrage regulations.
Please provide your firm's plan for service to the City.
References
Please provide five client summaries including, at a minimum, the following:
Name of client;
Description of services provided to the client in the past three years;
Firm's staff that worked with the client; and
Name and telephone number of a client contact person.
Staff to be assigned to our account
Please provide the following information on your staff:
Names of staff to be assigned to City;
Description of specific duties performed by each assigned staff person;
Qualifications of staff - years in public finance, other relevant experience,
educafion and accreditation; and
Percent of total staff time in the debt issuing process attributable to each
staff person.
insurance
The financial advisory services firm shall adhere to insurance requirements for
professional services as detailed by the insurance schedule attached during the term of
this agreement.
Fees
Please provide a fee schedule for bond issues (including the $5,000,000 and $8,360,000
G.O. issues anticipated to be sold in December 2001 and April 2002) and for other
projects and services including, at a minimum, the following:
Fee schedule;
List of services covered by fees. Specifically state which costs are included
in the fee proposal and any costs that are to be reimbursed;
List of bond issue expenses to be paid by the City;
Number of years for which the fee schedule is valid;
Type of debt subject to a higher fee, if any; and
Treatment of multiple issues sold at the same time.
Duration of Contract and Options for Renewal
The contract duration will be five years with the right to cancel the contract by either party
with 90-days notice. There should be an automatic renewal clause available upon
completion of the initial five-year term. Please provide options(s) for such a clause.
2
Special Conditions
To minimize any conflict of interest, any firm with underwriting capabilities who is selected
to serve as the City of Dubuque's financial advisor will not be permitted to underwrite the
City's bonds during the contract period and for a period of at least one year after its
engagement as financial advisor has ended.
The City of Dubuque will use the competitive bidding method of bond sale for bond issues
when the following conditions apply:
The market, if familiar with the issuer, and the issuer is a stable and regular
borrower in the public market;
There is an active secondary market with a broad investor base for the
issuer's bonds;
The issue has an unenhanced credit rating of A or above or can obtain a
credit enhancement prior to the competitive sale;
The debt structure is backed by the issuer's full faith and credit or a strong,
known or historically performing revenue stream;
The issue is neither too large to be easily absorbed by the market nor too
small to attract investors without a concerted sales effort;
The issue is not viewed by the market as carrying complex or innovative
features or requiring explanation as to the bonds' soundness; and
Interest rates are stable, market demand is strong, and the market is able to
absorb a reasonable amount of buying or selling at reasonable pdce
changes.
Legal Violations and Conflicts of Interest
State whether your firm, within the past five years, has had any legal or regulatory
violations, and pending or actual investigations by the SEC or other regulatory agencies,
or other legal action (such as litigation) in which the firm is involved.
The firm engaged as the City of Dubuque's Financial Advisor may not engage in activities
on behalf of the City that produce a direct or indirect financial gain for the firm, other than
the agreed-upon compensation, without the City's prior consent.
3
INSURANCE SCHEDULE C
INSURANCE REQUIREMENTS FOR PROFESSIONAL SERVICES
All policies of insurance required hereunder shall be with an insurer authorized to
do business in Iowa. All insurers shall have a rating of A or better in the current
A.M. Best Rating Guide.
All policies of insurance required hereunder shall be endorsed to provide a thirty
(30) day advanced notice to the City of Dubuque of any cancellation of the policy
prior to its expiration date. This endorsement supersedes the standard
cancellation statement on the Certificate of Insurance.
shall furnish Certificates of Insurance to the
City of Dubuque, Iowa for the coverage required in Paragraph 7. Such
certificates shall include copies of the endorsements set forth in Paragraphs 2
and 5 to evidence inclusion in the policy, shall
also be required to provide Certificates of Insurance of all subcontractors, and all
sub-subcontractors who perform work or services pursuant to the provisions of
this contract. Said certificates shall meet the same insurance requirements as
are required of
Each Certificate of Insurance shall be submitted to the contracting department of
the City of Dubuque, Iowa prior to commencement of worldservice. (The
contracting department shall submit the certificates to the Finance Director.)
All policies of insurance required in Paragraph 7 shall include the City of
Dubuque, Iowa under the attached Additional Insured Endorsement (CG2026)
and the attached Governmental Immunities Endorsement.
Failure to provide evidence of minimum coverage shall not be deemed a waiver
of these requirements by the City of Dubuque. Failure to obtain or maintain the
insurance required herein shall be considered a material breach of this
agreement.
, subcontractors, and all sub-subcontractors
shall be required to carry the following minimum insurance coverages or greater
if required by law or other legal agreement:
PROFESSIONAL LIABILITY:
$1,000,000
COMMERCIAL GENERAL LIABILITY:
General Aggregate Limit
Preducts-Compieted Operation Aggregate Limit
Personal and Advertising Injury Limit
Each Occurrence Limit
Fire Damage Limit (any one occurrence)
Medical Payments
$ 2,000,000
$1,000,000
$1,000,000
$1,000,000
$ 50,000
$ 5,000
4
Commercial general liability shall be written on an occurrence form, not a claims
made form. Coverage to include premises-operations-products-completed
operations, independent contractors coverage, contractual liability, broad form
property damage, and personal injury.
UMBRELLA OR EXCESS LIABILITY:
To include professional liability.
$ 4,000,000
5
POLICY NUMBER: COMMERCIAL GENERAL LLkBIUTY
THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY,
ADDITIONAL INSURED - DESIGNATED PERSON OR
ORGANIZATION
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART,
SCHEDULE
Name of Person or Organization.'
The Cit7 of Dubuque, including ail its elected and appointed officials,
all' its employees and volunteers, all les boards, co~sions and/or
authori~fee and their board members, employees, and volunteers.
,~If no entry appears above, information required to complete this endorsement will be shown in the
~c~arations as applicable to this endorsement.)
WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown
in the Schedule as an insured but only with respect to liability arising out of your operations or premises
owned by or rented to you.
CG 20 26 11 85
6
CITY OF DUBUQUE, IOWA
GOVERNMENTAL IMMUNITIES ENDORSEMENT
Nonwaiver of Governmental Immunity._ The insurance carrier expressly agrees and
states that the purchase of this policy and the including of the City of Dubuque, Iowa
as an Additional Insured does not waive any of the defenses of governmental
immunity available to the City of Dubuque, Iowa under Code of Iowa Section 670.4
as it is now exists and as it may be amended form time to time.
C~:c~sJ~,~er~4~ The insurance carrier further agrees that this policy of insurance
shall cover only those claims not subject to the defense of governmental immunity
under the Code of Iowa Section 670.4 as it now exists and as it may be amended
from time to time. Those claims not subject to Code of Iowa Section 670.4 shall be
covered by the terms and conditions of this insurance policy.
Assertion of Government Immunity. The City of Dubuque, Iowa shall be responsible
for asserting any defense of governmental immunity, and may do so at any time and
shall do so upon the timely written request of the insurance carrier.
Non-Denial of Coverage. The insurance carrier shall not deny coverage under this
policy and the insurance carrier shall not deny any of the rights and benefits
accruing to the City of Dubuque, Iowa under this policy for reasons of governmental
immunity unless and until a court of competent jurisdiction has ruled in favor of the
defense(s) of governmental immunity asserted by the City of Dubuque, Iowa.
No Other Change. in Policy. The above preservation of governmental immunities shall
not otherwise change or alter the coverage available under the policy.
7
PROPOSAL TO .SER~'E .AS
' FINANCIAL ADVISOR~
27 SEPTEMBER 2001
EVENSEN. DODG'E
FINANC A.L AND INV£S'i~ME NT ADV. ISC~R~
EVENS EN DO DG E
FINANCIAL AND iNVESTMENT ADVISORS
SePtember 27, 2001
Mr. Ken TeKippe, Finance Director
City of Dubuque
50 West 13~ Street
Dubuque, Iowa 52001-4864
Dear Mr. TeKippe:
On behalf of Evensen Dodge, Inc., I am proud to submit our Proposal to provide financial
advisory services to the City of Dubuque ("the City") for its anticipated General Obligation bond
sales.
As detailed in our Proposal, Evensen Dodge can provide the City with a unique combination of
strengths including expertise serving clients with similar needs, the resources of a national
independent advisory firm, immediate access to senior staff, and a clear understanding of
financing'practices and market conditions affecting the City.
Should you have any questions regarding our Proposal, please feel free to contact me at 515-282-
6138. Thank you for your consideration.
Sincerely,
EVENSEN DODGE, INC.
David M. Dirks
Senior Vice President
/jw
Atlanta, C~. ' Boston, MAI' Bu~a[o," 5,~ I Chicago, iL J Dallas, ?X J Des Moines, !A !1, fargo ND'
i Ha.~.ord,
Los Angeles, CA [ Milwaukee, W[ ] Mmneapohs, MN New Yor~:, NY Orlanao, FL ~ San Francisco, ~ J Washington, DC
100 Cou~ Avenue, Suite 215, Des Moines, Iowa 50309 515.282.6138 515.282.0252
Olp090
TABLE OF CONTENTS
Section Page
Description of Firm
Statement of Qualifications
Scope of Services
1
2
4
References
6
Project Team
11
Fees
15
Legal Violations/Conflicts of Interest
16
01p090
DESCRIPTION OF FIRM
History of the Firm
Founded in 1922, Evensen Dodge is the nation's first independent financial consulting firm to serve
municipal clients. The finn's primary business is providing high quality, sound advice to state and
local government clients on matters related to their capital financing needs. Through nearly eight
decades of service, the fu'm has gained national recognition as a leading financial advisory firm, and
has been instrumental in financing thousands of successful projects.
Exclusively in the financial advisory business, Evensen Dodge has experience in virtually every area
in which state and local governments plan and conduct financings. We provide services to states,
state agencies, regional governments, counties, cities, school districts, and special service districts.
Over the years, our clients' financing needs have become increasingly complex. To meet these needs,
we have aggressively expanded our clients' financing alternatives with new revenue sources,
enabling legislation, new financing instruments, credit enhancements, and innovative structuring and
marketing concepts. Even though the dynamics of our work have become more complex, our
hallmark commitment to integrity, professionalism, and the highest level of client service remains
unchanged. Our reputation in this regard is unparalleled.
Nationwide Office Locations
Headquartered in Minneapolis, Minnesota,
Evensen Dodge has eight national offices
staffed to serve our clients. With a
professional staff of 46, Evensen Dodge
includes personnel in Minneapolis (31), Des
Moines (2), New York (5), Los Angeles (4),
Atlanta (1), Buffalo (1), Milwaukee (1), and
Fargo (1).
The fu'm has continuously maintained an
office in Iowa since 1983. Evensen Dodge
consistently ranks as one of the top three
financial advisors in Iowa. From calendar years 1996 through 2000, the firm completed 167
transactions with a total par value of over $774 million for Iowa clients. The firm's clients in Iowa
include cities, counties, state agencies, community college districts and school districts.
Our national business presence, combined with our local accessibility, makes it possible for Evensen
Dodge to offer both a broad market perspective and specific knowledge of local Iowa market
conditions.
Certification
Assuring the highest standards of service and objectivity, Evensen Dodge is an independent financial
advisory firm. The firm is internally owned, and has no ownership relationships with commercial
banks, underwriters, or securities dealers. The firm represents only our client's position in a financial
transaction.
~- EVENSEN DODGE INC
01p090
STATEMENT OF QUALIFICATIONS
Rankings
Evensen Dodge ranks among the most active
and successful financial advisors to public
jurisdictions in the nation. Throughout the
firm's history, it has acted as financial advisor
on more than 7000 issues totaling in excess of
$90 billion. Based on 2000 statistics, the firm
ranked second by number of issues and fourth
by volume among the nation's top financial
advisors.
EVENSEN DODGE INC
Annual Financial Advisory Experience
(1990 - 2000)
Number of
Year Financings Amount ($000's)
2000 260 $ 5,201,500
1999 436 6,001,804
1998 512 7,674,840
1997 444 7,I27,652
1996 402 ..... ~ ,~Spy ,_528-
Total 2,054 $31,813,354
Top Ten National Financial Advisors
Long-Term Issues - 2000
Amount # of
Rank Firm ($000's) Issues
O Public Resources Adviso~ Group $14,705,300 8i
O Public Financial Management Inc. 13,542,200 251
~) First Southwest Company 6,045,100 329
O EVENSEN DODGE INC 5,20'1,500 260
~ Dain Rauscher Inc. 3,058,900 151
(~ FG Corbin & Company 2,175,300 36
~ Springsted Incorporated 2,062,600 237
~ Kauffnan Hall & Associates, Inc. 1,996,900 26
~) Ponder & Co. 1,950,500 35
~) Stauder Barch& Associates 1,938,200 111
Source: Thomson Financial Securities Data
Commitment to Public Finance
In an era when commercial and investment banks
are changing their commitment to financial
advisory services from year to year, Evensen
Dodge has steadfastly increased its commitment to
the advisory field. Evensen Dodge has been ranked
among the top ten financial advisors nationally, and
has averaged $6.3 billion annually in combined
volume of long-term and short-term issues over the
last five years.
Ability to Serve the City
Evensen Dodge has the experience necessary to meet the
financing requirements of jurisdictions of varying size
and complexity. Our clients consistently enter the market
with every size and type of financing in the industry. We
have advised clients on virtually every financing
structure and purpose for which states and local
governments issue bonds and conduct financings
including general obligation; revenue; COP/lease
financings; limited and special assessment security
structures; senior, subordinate, callable and non-callable
bonds; fixed, variable, floating and inverse floating
interest rate provisions; interest rate swaps, caps, floors
and related innovative financial structures; and insured,
enhanced, rated and unrated bond issues. The adjacent
table details the diversity of our 2000 experience and
rankings in various securities data categories.
As financial advisor on the transactions depicted in the
table, we worked with our clients on a day-to-day basis
to coordinate their individual £mancings with their long-
2000 Rankings
Securities Data Categories
Issue Type
Long-Term
Short-Term
Tax-Exempt
Taxable
Negotiated
Competitive
General Obligation
New Financing
Refunding
Variable Rate
Use of Proceeds
Airport
Economic Development
Education
General Purpose
Housing
Public Power
Solid Waste
Student Loan
Transportation
Water, Sewer and Gas
Principal
# Issues / Rank Amount (Mils)
260 4 $5,201.5
145 4 1,278.4
237 4 4,712.7
23 1 488.8
98 4 3,429.4
162 4 1,772.1
120 3 3,374.8
140 4 1,826.7
233 4 4,721.3
27 10 480.2
35 5 917.1
7 12 152.2
8 2 135.7
47 7 637.8
92 5 1,267.3
68 1 1,840.8
I 22 2.8
I 15 2.2
I 11 40.0
8 4 688.8
22 9 411.2
Source: Thomson Financial Securities Data
~ EVENSEN DODGE INC 2
01 p090
term debt goals, to prepare financing alternatives, to develop rating plans, and to represent them in
negotiations with underwriters and other service providers.
Principals of Evensen Dodge
In the 79-year history of Evensen Dodge, the firm has had only two Chief Executive Officers.
Homer B. Dodge has been the firm's Chief Executive Officer and President for the past 29 years.
The present management of the firm, with Homer B. Dodge as President and Chief Executive Officer
and Wayne S. Burggraaff as Principal and Senior Vice President, has been in place for 20 years.
Highly Qualified Personnel
Evensen Dodge's multidisciplinary staff is involved in providing full-time financial advisory
services or support for those services. The majority of our professionals have advanced degrees or
professional certifications. With backgrounds in government administration, investment banking,
accounting, economics, law, engineering, and financial management, our staff has diverse
capabilities and experience.
The firm's professionals are organized into specialty groups that have developed expertise in various
disciplines, including tax increment, economic development, education, student loan, housing,
general infrastructure, pooled loan programs, water and sewer, public power, transportation, and
solid waste. These specialty groups develop software and maintain industry-specific resources to
meet the particular needs of clients in these areas.
Centralized Resources
Evensen Dodge has considerable resources available to support the project team in providing
primary services to the City. In our Minneapolis headquarters, three service groups assist project
managers in meeting our clients' needs: an analytical group, a quantitative group, and an
administrative group. These service groups are comprised of full-time professionals who are
dedicated to their respective specialties. These centralized resources ensure that thorough and
accurate advisory services are provided to our clients in all areas of the country.
The Analytical Group manages the competitive sale process through careful document preparation
and the coordination of the specific details for each sale. This group of professionals prepares official
statements for primary market offerings, secondary market disclosure documentation, pre-sale and
post-sale market analyses, credit rating agency materials and other specialized reports. The
individuals within the group are assigned to Specific clients to work on the preparation of disclosure
documentation and the smooth implementation of the sale process.
The Quantitative Analysis Group is the foundation of our technical expertise. This group of
specialists produces all of the major analytical work requiring computer modeling and complicated
financial analysis for the firm's clients. The professionals in this group are highly skilled in such
areas as escrow structuring, arbitrage rebate, housing loan cash flows, and structured finance, thus
allowing Evensen Dodge to prepare all financial analyses in-house. As a result of our quantitative
capabilities, Evensen Dodge has become one of the leading financial advisors in the nation.
The Administrative Services Group facilitates the production of official statements, bid
documents, and all other reports and analyses for presentation to the public. Utilizing advanced word
processing, color graphics, and printing software, this group is capable of producing both small and
large documents within tight deadlines for clients across the country.
~ EVENSEN DODGE INC 3
0~p090
SCOPE OF SERVICES
Plan for Service to the City
We believe debt should be issued in accordance with a financing plan, a plan that takes into account
the City's outstanding debt, proposed debt, debt capacity, debt management policies, related
budgetary issues, and rating agency criteria.
A carefully developed debt management program provides evidence of a community's commitment
to control its borrowing practices and adhere to its overall financial goals and objectives. Debt
management initiatives should be designed to allow for the accomplishment of established goals and
objectives, yet provide flexibility to respond to changing conditions without jeopardizing essential
public services.
Our role as financial advisor will be to assist you with capital planning in such a way as to provide
you with funds in a cost effective and efficient manner, while maintaining a debt structure and debt
position that supports the City's excellent rating.
Our responsibilities in the financial planning process will encompass all of the items listed in the
City's RFP. Specifically, our plan for service will include:
1. Debt capacity analysis: Annually, during the capital planning process, provide the City with
statistical analysis of the impact of the proposed capital plan on tax rates and debt burden and
determine whether the proposed capital plan conforms to the City's debt management
~policies.
2. Annual planning session: Upon adoption of the capital improvement plan, we will meet
with City staff to strategize the approach to debt issuance in the following year. By
addressing such issues as timing, security, changes in market requirements, changes in the
economy and/or legislative initiatives, we will take a proactive approach to the plann'mg and
implementation of City bond issues.
3. Financial policy statements: We will review existing financial policies and recommend
changes or additions, as needed, for the City's consideration.
4. Debt structuring and presale analysis: Prior to the implementation ora specific fmancing,
we will provide structuring and security options for the bonds, work with bond counsel to
identify tax issues, if any, and recommend a method of sale. We will summarize the
approved finance plan in a Presale Analysis and present the Presale Analysis to the Board
and/or Finance Committee.
5. Method of sale: We will assist the City in determining the appropriate method of sale,
including whether to use an electronic bidding format and electronic disclosure as well as
whether to issue the bonds at competitive or negotiated sale.
6. Implementation of the plan: We will coordinate the whole debt issuance process, preparing
a financing timetable and task list, assisting with the selection of service providers, and
serving as a liaison between the City, bond counsel, registrar and underwriters.
~ EVENSEN DODGE INC 4
m
Credit Ratings
Evensen Dodge has substantial experience assisting municipal issuers with receiving successful
rating upgrades, maintaining existing high ratings, obtaining initial ratings, and assisting distressed
credits with improving their ratings. The £ollowing lists a few of the many success stories where our
clients' ratings have been upgraded.
Jurisdiction Prior Ratine(si
Alaska Student Loan Corporation A/A
Amherst, NY A2
Arkansas, State of Aa3/AA
Aurora, CO Aa3/AA-
Boston Water and Sewer Commission, MA A2/A
Chelsea, MA Baa2/BBB-
Clarence Central School District, NY A2
Columbus Water and Sewerage Works, GA A2
C0unetquot Schools~ NY A3
Dudley-Charleton Regional School District, MA NR
Duluth, MN A
East Hampton, NY A2
Edina Public Schools, MN Al/AA-
Freeport, NY Baal
Georgeto ~wn, MA A2
Glen Cove, NY Baal
Gwinnett County, GA Aa 1/Aa+
Hudson, NH A I
Johnston, RI Ba3
Lee's Summit, MO Al
Lindenhurst Schools, NY Baa3
Lindenhurst Schools, NY Baal
Manchester, NH BBB+
Marion, IA A 1
Milwaukee County, WI A1/AA-/AA-
Minot, ND A+
North Dakota Municipal Bond Bank (SRF) Aa2
North Hempstead, NY A3
North Hempstead, NY A2
North Shore, NY A1
Oklahoma City Water Utilities Trust, OK NR/AA-
Polk County, IA Aa2
Rockland County, NY A1
Sudbury, MA Aa2/NR
Suffolk County, NY Baal
Suffolk County, NY BBB+
Thief River Falls, MN Baa3
Vermont Housing Finance Agency A
White Bear Lake, MN A2
West Allis, WI Al/AA
Western Lake Superior Sanitary District, MN A
West Virginia, State of A1/AAdAA-
Revised Rating(s)
Moody's/S&P/Fitch Year
Aa/AA 1999
Aa3 1999
Aa2/AA 2000
Aa2/AA 2000
Al/A+ 1998
Baal/BBB+ 2000
A1 2000
A1 2000
A2 1998
A- (S&P) 1999
Al/A+ 1997
Aa3 2000
Aa2/AA 1998
A3 2000
A1 1998
A3 1999
AAA/AAA/AAA 1997
Aa3 1998
Baa3 2001
Aa3 1999
Baal t998
A3 1999
A 2000
Aa3 1999
Aa3/AA/AA 2001
AA- 2000
Aaa 2001
A2 1999
A1 2000
Aa3 2000
Aa2/AA 1998
Aal t999
Aa3 1997
AM/AA+ 1999
A3 1999
A 2000
Baa2 2001
Aa3 1999
Aa3 1999
Aa3/AA 1999
A1 1998
Aa3/AA-/AA- 1999
~ EVENSEN DODGE INC 5
01 pO90
REFERENCES
The following are descriptions of our work with selected clients over the past three years. Names of
team members who provided financial advisory services are included below, as is client contact
information. We encourage you to contact these clients in your evaluation of our Proposal.
Polk County, Iowa
Evensen Dodge was retained by Polk County to serve as its general financial advisor in 1990 after
serving as its advisor on a project-by-project basis since 1984. Evensen Dodge provides
comprehensive advisory services in connection with the issuance of general obligation debt and
completes special projects as requested. Since 1984, we have served as the County's financial
advisor in connection with the issuance of 26 financings totaling $209.8 million.
Evensen Dodge has also assisted the County with several rating upgrades during our tenure as
financial advisor. In 1996, we helped the County receive three double "A" category rating upgrades
from Moody's, Standard & Poor's, and Fitch for a November sale of $10 million in general
obligation bonds. In 1999, we helped the County receive a Moody's rating upgrade from "Aa2" to
"Aal ."
Beginning in January 2000, Evensen Dodge began assisting in the development of the Vision Iowa
Grant Application and Financial Plan for the $200 million Iowa Events Center. This project is
currently anticipated to begin construction later this year.
Evensen Dodge is serving as financial advisor as the County is currently considering developing and
financing a new 19,000 seat, $90 million arena and a new $110 million convention center in Des
Moines. The arena's tenants would include the local arena football franchise and would expect to
attract a minor league hockey or basketball teams. The arena would also be the region's primary
entertainment events facility for major concerts and high school sport championships. The County's
existing convention center does not meet the region's needs. Funding for the arena and convention
center will come from local revenues and state contributions. Evensen Dodge has prepared a
financing strategies paper and is currently assisting with the proposed legislation necessary to finance
the projects.
Project Team
· Wayne S. Burggraaff
· David M. Dirks
· Robert J. McCauley
· Brian T. McQuillan
· Heather A. Casperson
Client Contact
Mark Stevens, Assistant Cotthty Manager
111 Court Avenue
Des Moines, IA 50309
515-286-2087
~ EVENSEN DODGE INC 6
01 p090
Iowa City, Iowa
Evensen Dodge has served as financial advisor to Iowa City since 1985. Since then, the tam has
assisted Iowa City with all aspects of their financial planning and debt issuance for 30 financings
totaling more than $261 million. In 1999, Evensen Dodge assisted the City with the issuance of
$25.2 million in water revenue, sewer revenue, and general obligation bonds. Most recently, in
September 2000, we assisted the City with an additional $12 million in sewer revenue bonds. In our
role as financial advisor, we have also assisted the City with maintaining their "Aaa" rating.
Project Team
· Wayne S. gurggraaff
· David M. Dirks
· Robert J. McCauley
· Brian T. McQuillan
· Heather A. Casperson
Client Contact
Kevin O'Malley, Finance Director
Civic Center
410 East Washington Street
Iowa City, IA 52240
319-356-5053
City of Ames, Iowa
In 1999, our plan for a credit rating improvement led to a "AAA" rating for the City of Ames from
Moody's Investors Service. The City, with a population of 50,000 and home to Iowa State
University, first hired Evensen Dodge in 1983 as general f'mancial advisor to assist the City with the
preparation of a financing plan for a $38 million sewer utility construction project and to issue debt
for the City's other capital improvement projects. Since that time, Evensen Dodge has assisted the
City with 29 f'mancings, totaling more than $157.8 million, for utilities (water, sewer, electric),
hospital, city hall, corporate purpose, and general improvements.
Project Team
· Wayne S. Burggraaff
· David M. Dirks
· Robert J. McCauley
· Brian T. McQnillan
· Heather A. Casperson
CHent Contact
Steven Schainker, City Manager
'515 Clark Avenue
Ames, IA 50010
515-239-5101
~ EVENSEN DODGE INC 7
City of Davenport, Iowa
In 1998, we assisted the City with a refunding of several outstanding taxable and tax exempt issues
that were originally issued to financing capital improvement, sewer and economic development
projects in the City. The refundings ($14,590,000 General Obligation Refunding Bonds and
$5,250,000 General Obligation Taxable Refunding Bonds) were sold at competitive sale resulting in
a total debt service savings of $1.7 million
Evensen Dodge has served as the City of Davenport's financial consultant since 1985 and has
assisted the City with over 35 financings totaling more than $248.2 million during that time. In
addition to debt issuance services for the City's annual capital improvement financing, Evensen
Dodge has assisted the City with various economic development projects in the downtown, with
rating agency analysis and presentations, and with debt management planning.
Economic development projects have included a public/private venture to clear a blighted section of
downtown to enable construction of a newspaper plant, the development &plans for a hotel in the
downtown area and the construction of a parking ramp to serve major downtown employers as well
as the general public. Evensen Dodge has assisted the City with planning and implementation of a
tax increment district, with cash flow analysis of various agreements with developers, and with
development of a financing plan designed to reduce the amount of taxable debt required for projects
(thereby substantially reducing debt costs to the City). Evensen Dodge has also been effective in
helping the City maintain its ratings in the~double A category.
Project Team
· Wayne S. Burggraaff
· David M. Dirks
· Christy L. Myers
· Brian T. McQuillan
· Heather A. Casperson
Sioux City, Iowa
Client Contact
Kent Kolwey, Finance Director and
Acting City Administrator
226 West Fourth
Davenport, IA 52801
319-326-7780
In 1998, Evensen Dodge served as financial advisor as Sioux City issued $3,625,000 General
Obligation Refunding Bonds that were sold at competitive sale and received eight bids with a net
interest rate of 4.13%.
Evensen Dodge has served as financial advisor to Sioux City since March 1983, during which time
we have assisted with the issuance of 33 financings totaling in excess of $201.7 million. Because of
our long standing relationship with the City, Evensen Dodge plays an important role in the City's
ongoing capital financing process.
During the past eleven years, we have also prepared numerous rating presentations for the City. We
have maintained a Aa (Moody's) rating for the City's outstanding general obligation debt and have
assisted the City with a rating upgrade from A to A1 on its reserve revenue water and sewer debt.
Project Team
· Wayne S. Burggraaff
· David M. Dirks
· Charles A. Upcrafi
· Brian T. McQuillan
· Heather A. Casperson
Client Contact
John Meyers, Director of Finance
P. O. Box 447
Sioux City, IA 51102
712-279-6207
~ EVENSEN DODGE INC 8
01p090
City of Ankeny and Ankeny Community School District, Iowa
The City of Ankeny and Ankeny CSD have used Evensen Dodge as their financial advisor since
1985. The firm has provided various financial planning and debt management services throughout
that period. Evensen Dodge has assisted the City with 32 financings totaling more than $119.8
million and the CSD with 14 issues for a total value of nearly $63.5 million. We have worked on
cooperative City/School District projects for shared facilities by providing financial plan modeling,
referenda assistance, and debt issuance.
Located in the Des Moines metropolitan area, Ankeny CSD has eight school buildings and a total
enrollment of approximately 5,417. Evensen Dodge provides general financial advisory services to
Ankeny CSD in connection with the issuance of general obligation debt for the District. In 1998,
Evensen Dodge assisted the District with the issuance of $5 million school bonds to build and
furnish additions to Ankeny High School and two middle schools. Also, in 2000, the District issued
$10 million of school infrastructure sales tax revenue bonds with the help of Evensen Dodge.
Project Team
· David M. Dirks
· Charles A. Upcraft
· Robert J. McCauley
· Brian T. McQuillan
· Heather A. Casperson
Client Contact
Mr. James H. Spradling
Assistant City Manager
410 West First Street
Ankeny, IA 50021
515-965-6400
~ EVENSEN DODGE
Additional Iowa Experience
Evensen Dodge has an unmatched history of serving
Iowa clients. Financial advisory services provided in the
State of Iowa represent an important part of our
business, and we have committed significant resources
to serve our Iowa clients. The firm has provided
financial advisory services to Iowa jurisdictions for over
25 years. Our professionals work with a wide variety of
clients throughout the State.
The adjacent table depicts the firm's long-term Iowa
financing experience over the past five years.
~s~ Ooo~ ~c
Iowa FTnancings
(1996-2000)
Number of
Year Issues Amount
2000 44 $223,445,000
1999 27 106,335,000
1998 34 ] 79.100.000
1997 36 131,015,0~0
1996 26 134,385,000
The following list illustrates the variety of our client engagements in the State and our knowledge of
Counties
· Adair
· Black Hawk
· Cedar
· Cerro Gordo
· Dubnque
· Hardin
· Polk
Higher Education
· Des Moines Area Community
Colleges
· Iowa Valley Community College
the region generally.
State Agencies
· Department of Corrections
· Facilities Improvement Corp.
· Department of Natural
Resources
Cities
· Ames · Iowa City · North Liberty
· Ankeny · Iowa Falls · Pocahontas
· Davenport · Knoxville · Sioux City
· Eagle Grove · Marion · West Branch
Regional Authorities
· Des Moines Convention & Visitors Bureau
Polk County Aviation Authority
School Districts
· Allison Bristow CSD · Glidden-Ralston CSD · Newton CSD
· Ames CSD · Harlan CSD · North Scott CSD
· Ankeny CSD · Iowa City CSD · Pleasant Valley CSD
· Bettendorf CSD · Lawton-Bronson CSD · Sioux City CSD
· Camanche CSD · Le Mars CSD · Solon CSD
· Clear Creek-Amana CSD · Marshalltown CSD · Urbandale CSD
· Davenport CSD · Mason City CSD · West Des Moines CSD
· Forest City CSD · Lawton-Bronson CSD
Earlier this year, Evensen Dodge was selected by Dubnque County to provide services for the
Dubuque County/City Law Enforcement Center Addition financing.
~ EVENSEN DODGE INC 10
01p090
PROJECT TEAM
Evensen Dodge has assembled a team of five professionals to serve the City. All team members are
knowledgeable of public finance law and regulations and have extensive experience in public
interaction and presentations. In addition, the team includes three persoimel who serve as Client
Managers to various Iowa jurisdictions. To provide superior accessibility and service to the City,
Evensen Dodge's Iowa regional office in Des Moines will be responsible for primary client service,
with centralized support services provided by the Minneapolis office. Our team is unconditionally
committed to providing the s,ervice that the City deserves and requires.
Wayne S. Burggraaff, Senior Vice President and Principal, will serve as the Engagement Principal
to the City. Mr. Burggraaff will be responsible for the overall performance of the team, including
assuring the timeliness and quality of work products and attending key decision-making meetings as
necessary. He will allocate the necessary staff and resources required by this engagement. Mr.
Burggraaff has over 35 years of experience in public administration and finance, including 20 years
as a Senior Vice President at Evensen Dodge. He serves as Engagement Principal for most state and
local government client relationships in the Midwest and has direct working relationships with Polk
County and the Cities of Ames, Davenport, Iowa City and Sioux City, Iowa. Mr. Bruggraaff will
provide 20% of the team's total staff time in the debt issuing process.
David M. Dirks, Senior Vice President, will serve as Project Manager to the City. He will be the
City's point of contact, responsible for program development and implementation, bond issue
structuring, producing necessary work products, and attending meetings and making presentations.
Mr. Dirks has 18 years of experience in public finance. He serves as Project Manager to the State of
Iowa, the Iowa Department of Natural Resources, and many Iowa jurisdictions including 15 cities.
Mr. Dirks will contribute 40% of the team's total staff time in the debt issuing process.
Robert J. McCauley, Vice President, will provide project management support to Mr. Dirks by
assisting .with all aspects of the delivery of services to the City. Mr. McCauley has more than 30
years of experience providing services to public entities. He also has specialized expertise working
with cities and school districts in Iowa. Mr. McCauley will provide 5% of the team's total staff time
in the debt issuing process.
Brian T. McQuillan, Vice President and Manager of Evensen Dodge's Quantitative Services
Group, will oversee the completion of cash flow and feasibility analyses, review outstanding debt,
provide arbitrage rebate analysis and advice, and analyze refunding and restructuring opportunities
for the City. Mr. McQuillan has 16 years of experience in public finance. He brings significant
analytical expertise to the City, having structured financings, refundings, and complex transactions
for several Iowa clients including the State of Iowa Facilities Improvement Corporation, the State of
Iowa, Polk and Black Hawk Counties, and numerous cities and school districts. Mr. McQnillan will
provide 5% of the team's total staff time in the debt issuing process.
Heather A. Casperson, Associate, will provide technical and analytical support to the City. She
will assist with the preparation of disclosure documentation, credit rating presentations, and terms
and conditions of sales. She will also provide market and credit analyses and assistance with
secondary market disclosure, if necessary. Ms. Casperson will contribute 30% of the team's total
stafftime in the debt issuing process.
The following are resumes for each team member proposed to serve the City.
~EVENSEN DODGE INC 'T '1
m po~o
Wayne S. Burggraaff
Senior Vice President and Principal, Minneapolis Office
A principal with Evensen Dodge since 1981, Mr. Burggraaffhas 35 years of experience in the fields
of public administration and finance, including experience as Commissioner of Finance for the State
of Miunesota. He manages a staffof consulting client managers and is principal-in-charge for major
client engagements. Mr. Burggraaff has had considerable experience with municipal issues. He has
conducted citizen information meetings and made presentations before legislative committees, local
elected officials, and rating agencies. Mr. Burggraaff has served as project manager for over 700
issues with an aggregate value in excess of $8 billion during his tenure with the firm.
Mr. Burggraaff has 18 years of experience in local government finance and administration including
service as Assistant City Manager in Des Moines, Iowa. He has served as engagement principal for
these selected state and local governnaent clients: Cities of Ames, Davenport, Iowa City, and Sioux
City, Iowa; Polk County, Iowa; City of Milwaukee, Wisconsin; City of Duluth, Minnesota; City of
Aurora, Colorado; City of Overland Park, Kansas; Oklahoma City Water Utility Trust, Oklahoma;
Milwaukee County, Wisconsin; Kent County Department of Aeronautics, Michigan; Minneapolis-St.
Paul Metropolitan Council, Minnesota; Oklahoma Turnpike Authority; Massachusetts Turnpike
Authority; and State of North Dakota.
Mr. Burggraaff served as President of the.Minnesota League of Cities during ins city manager tenure
in Richfield, Minnesota and recently finished serving on a Twin Cities Metropolitan Council Task
Force 9harged with the responsibility of recommending a search area for a new international airport
in the metropolitan area.
Mr. Burggraaff holds an M.G.A. degree in governmental management from the Wharton School at
the University of Pennsylvania and a B.A. degree from Lafayette College.
~ EVENSEN DODGE INC 12
01 p090
David M. Dirks
Senior Vice President, Des Moines Office
Mr. Dirks is a Senior Vice President of Evensen Dodge and Manager of the firm's Des Moines
office. During his 18-year career with the firm, he has planned and directed numerous public
improvement and economic development projects for general public improvements, tax increment
districts, special assessment areas, industrial development revenue and utility revenue issues. In
addition, he has developed capital improvement plans and is experienced in financial planning,
budgeting and cash management.
Mr. Dirks has worked with the State of Iowa Facilities Improvement Corporation; the Iowa Schools
Energy Bank and the Iowa Hospital Association to develop and implement master lease programs
designed to finance energy improvements.
Mr. Dirks serves as Project Manhger for the State of Iowa; the Cities of Iowa City, Davenport, and
Ames; and many other Iowa jurisdictions. He is also a principal consultant or team member for a
number of clients, including major cities, school districts, state agencies and regional districts in
Iowa and throughout the Midwest.
Prior to joining Evensen Dodge, Mr. Dirks worked in local government finance for twelve years as
the Assistant City Manager in Council Bluffs, Iowa and as City Manager for Ankeny, Iowa. A past
president of the Iowa City Manager's AsSociation, he has participated in numerous committees for
enhancing city management techniques on both the national and international level.
Mr. Dirks has a M.A. degree from Minnesota State University, Mankato.
Robert J. McCauley
Vice President, Des Moines Office
Mr. McCauley consults on short and long term financings for Evensen Dodge's Des Moines office.
He has special expertise in working with local government entities. Mr. McCauley will assist Mr.
Dirks in the administration of the client relationship.
Robert McCauley joined Evensen Dodge after over 25 years experience providing service to public
entities. Mr. McCauley previously was a senior vice president and stockholder of the largest
insurance brokerage firm in Iowa.
Mr. McCauley has worked with the Cities of Ames, Ankeny, Bettendorf, Davenport, Iowa City, Iowa
Falls, North Scott, Sioux City, West Des Moines, and numerous other Iowa clients.
Mr. McCauley has also been an a~tive community leader. He is currently a member of the board of
directors and is past president of the Polk County "I" Club.
Mr. McCauley is a graduate of the University of Iowa with a degree in Business Administration.
~ EVENSEN DODGE INC 13
01p090
Brian T. McQuillan
Vice President and Quantitative Group Manager, Minneapolis Office
Mr. McQuillan, manager of Evensen Dodge's quantitative group in the Minneapolis office,
specializes in providing analytical services, feasibility and cash flow analysis, bond sizing, and debt
structuring for clients. He has 12 years of experience with Evensen Dodge.
Mr. McQuillan performs the financial analysis, debt schedule development and modeling, and
arbitrage rebate for capital projects of governmental entities. He specializes in performing refunding
transactions for clients and is thoroughly familiar w/th Federal tax implications for refunding
transactions. He also provides economic impact and sensitivity analysis for rate changes, analysis of
tax and revenue sources, debt structuring analysis for capital projects, and economic, financial, and
cost analyses with respect to proposals.
Mr. McQuillan has provided quantitative services to cities nationwide including the Cities of Ames,
Ankeny, Davenport, Iowa City, LeMars, and Sioux City, Iowa. His additional Iowa clients include
Polk County and the State of Iowa Facilities Improvement Corporation.
Mr. McQuillan holds an M.B.A. in finance from the University of Minnesota, Carlson School of
Management and a B.A. in business administration from the University of Wisconsin-Ean Claire.
He is also a CPA.
Heather A. Casperson
Financial Analyst, Minneapolis Office
Heather A. Casperson joined Evensen Dodge in 1998 and has six years of experience in public
finance. Ms. Casperson provides analytical support to many of the firm's clients in Iowa and the
Midwest. She actively supports client managers by providing services, such as maintaining daily
contact with clients, structuring the bonds, preparing and maintaining disclosure documentation,
preparing terms and conditions of sales, preparing rating agency presentations, analyzing market
conditions, and assisting with the development of debt and management policies. She has provided
assistance on various types of bonds and notes including general obligation, lease revenue, sewer
revenue, water revenue, aid anticipation notes, capital loan notes, tax anticipation certificates of
indebtedness, and refundings.
Ms. Casperson has served as financial analyst to the following clients in Iowa: Black Hawk County,
Cerro Gordo County, and the Cities of Ames, Ankeny, Iowa City, Iowa Falls, LeClaire, and North
Liberty. She has also provided services to the following Iowa school districts: Cedar Rapids CSD,
Davenport CSD, Sheldon CSD, and West Des Moines CSD.
Ms. Casperson joined Evensen Dodge after working for almost three years in the Corporate Trust
Services department at U.S. Bank Trust, NA. She received a B.S.B. in general management with
psychology from the Carlson School of Management at the University of Minnesota.
~ EV£NSEN DODGE INC 14
01p090
FEES
Fee Schedule
Evensen Dodge proposes the following fee schedule:
$5,000,000 G.O. Issue $7,800
$8,360,000 G.O. Issue $10,152
For other bond issues we propose the following fee schedule:
Initial $1.0 million of financing: $5,000
Each additional $1,000 of bonds: $0.70
Services
~Ihe above fee covers the services articulated in the Scope of Services section of this Proposal and
the City's RFP. Out-of-pocket expenses for which Evensen Dodge would seek reimbursement are
travel, conference calls arranged by Evensen Dodge, postage and overnight mail, specialized printing
services and reproduction of audits and reports, and costs associated with investor meetings or credit
enhancement trips, assuming such meetings are held outside of Dubuque'.
Bond Issue Expenses
The City will pay for bond counsel services and bond ratings, if required. The City will also be
responsible for all third party costs. Purchaser may request additional copies of the final official
statement that the City will be responsible for.
Validity
This fee schedule is valid for the term of engagement.
Debt Subject to Higher Fee
Non-General Obligation bonds would be subject to a fee calculated at 110% of the above fee.
Multiple Issues Sold Concurrently
Multiple issues sold concurrently would be calculated at 85% of the above fee.
~ EVENSEN DODGE INC 15
01 pO90
LEGAL VIOLATIONS & CONFLICTS OF INTEREST
Legal Violations
No member of our proposed project team, nor any of the firm's ownership, management, or staff,
are currently or have previously been under investigation by any law enforcement or regulatory
agency alleging improper conduct in connection with participation in any financing by any unit of
local government or in the daily operations of our firm. There is no litigation pending against the
firm or any of its employees.
Conflicts of Interest
Evensen Dodge has no business relationships with other organizations that may provide the
appearance of or an actual conflict of interest in serving as financial advisor to the City. Although
we represent other clients in Iowa, we do not foresee any conflicts resulting from those
relationships.
Evensen Dodge works in many states where we have financial advisory relationships with state,
regional, and local level issuers. It is a critical objective of our firm to avoid actual or perceived
conflicts of interest in providing service to our clients. Our success in achieving this objective
can be attributed in large measure to our use of the following four practices:
1. We avoid engagement where a conflict of interest would exist;
2. We disclose our client relationships whenever there is a possibility ora perceived conflict;
3. We advise our clients of all financing mechanisms and opportunities available to them; and
4. We always recommend the most cost effective and efficient method of financing to our
clients.
The livelihood of our firm is dependent solely on the fees we receive for providing financial
advisory services to our clients; we have no other source of income. Therefore, we work hard at
maintaining our reputation for independence, objectivity, and good advice because it is our
greatest asset in maintaining a successful business.
~ EVENSEN DODGE INC ~16
O~p090
EN DODGE
FINANCIAL AND [NV[~TMENT ADVISORS
Background of Project Team
Full Service Capabilities
Iowa Experience
Our Approach
Our Understanding of Your Needs
Refunding Experience
Credit Rating Experience
Summary
~ EYENSEN DODGE The City of Dubuque Pg. 2
We offer
Team Member
David M. Dirks
Senior Vice President
Wayne S. Burggraaff
Senior Vice President
& Principal
Robert J. McCauley
Vice President
Brian T. McQuillan
Vice President
Heather A. Casperson
Associate
a team with Iowa experience and we can effectively apply
our team's skills for the City's benefit.
· Day-to-day Project Manager
· Identify needs and develop
work plan
· Attend client meetings
· Engagement Principal
· Oversee firm resources
· Provide rating and special
project expertise
· Project management support
· Serve as back-up for all
meetings
· Analyze refunding and
restructuring opportunities
· Provide arbitrage rebate
analysis
· Technical research and
analytical support to the City
· Preparation of documents
Experience.
Heads Evensen Dodge's Des Moines office
18 years of public finance experience
Serves as Project Manager to 15 Iowa cities
Over 35 years of public finance and local
government experience
Facilitated hundreds of meetings with a variety of
stakeholders
30 years of experience providing services to public
entities
Extensive experience with Iowa municipalities
Manager of Evensen Dodge's Quantitative Services
Group
16 years experience in public finance
Experienced in all forms of refunding research and
analysis
Analytical experience serving Iowa municipalities
~ EVENSEN DODGE
The City of Dubuque
We offer the City a full range of in-house services.
~ EVENSEN DODGE
The City of Dubuque
Pg. 4
Evensen Dodge has an unmatched history of serving Iowa clients.
1997
1996 26 $t34,385,000
Established Iowa office in 1983
Consistently rank as one of the top three
financial advisors in Iowa
Representative clients include
the Cities of:
· Ames
· Ankeny
· Davenport
· Iowa City
· Iowa Falls
· Knoxville
· Marion
· Sioux City
~ EVENSEN DODGE
The City of Dubuque
Pg. 5
We will work to ensure a thorough understanding of the transaction, allowing
you to make decisions that are in your best interest.
Im
P
Tho~
Strategy
Senior level staff will work with you
throughout the entire process
Service flexibility to adjust to
your needs
Clear process to keeP each
constituent well.informed
Attention to detail to ensure a
successful transaction or work
product
~ EVENSEN DODGE The City of Dubuque Pg. 6
Our team has experience with each of the areas in Which the City has indicated
financing needs.
REFUNDINGS
· Evaluate capital funding alternatives
· Advise on method, structure and timing of sale
· Produce official statement
· Follow-up analysis
· Provide arbitrage regulation compliance advice
CREDIT RATINGS
· Advise on approach to ratings
· Assist with rating presentations
· Help gain rating upgrades
· Evaluate use of and obtain bids for credit enhancement
~ EVENSEN DODGE
The City of Dubuque Pg. 7
Evensen Dodge is unmatched in its successful experience completing complex
refunding transactions, ranking #2 nationally for the calendar year 1998.
OUR TEAM...
· Experienced in the full range
of refunding products
· Pioneers of competitively
sold advance refunding
bonds
· Identify client objectives
with respect to refundings
· Accuracy in meeting
statutory and regulatory
requirements
SELECTED CLIENTS
· Ames
· Davenport
· Marion
· Sioux City
~ EVENSEN DODGE The City of Dubuque Pg. 8
We are knowledgeable in obtaining ratings under all conditions.
Maintain current ratings under adverse circumstances · Davenport, IA
· Sioux City, IA
· Marion, IA
Achieve rating upgrades · Polk County, IA
· Marion, IA
· Ames, IA
Obtain ratings for new or previously dormant programs · Lee's Summit, MO
· Dubuque County, IA
· West Des Moines Community School District, IA
-~ EVENSEN DODGE The City of Dubuque Pg. 9
We believe we can best serve the Oty as its financial advisor for the following reasons:
~ We are a full service, national firm with a business presence in Iowa
Our firm ranked second by number of issues and fourth by volume
among nation's top financial advisors in 2000
We have excellent credentials and experience in structuring and executing
complex refunding and revenue bond transactions
~ We have been successful and innovative in serving our clients in the area
of credit enhancement
Our project team offers senior personnel with experience serving the
cities of Iowa
----- EVENSEN DODGE
The City of Dubuque
Pg. lO
EVENSEN DODGE
FINANCIAL AND INVESTMENT ADVISORS
"We Represent A Commitment To Service"
CLIENT
Ames
Ankeny
Davenport
Marion
Polk County
Sioux City
TENURE
18 years
15 years
17 years
15 years
15 years
19 years