RFP for Financial Advisory ServicesMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Request for Proposal (RFP) for Financial Advisory Services
DATE: June 12, 2012
Dubuque
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All-America City
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2007
Budget Director Jenny Larson is requesting City Council to authorize the release of the
RFP to receive proposals for financial advisory services for five years beginning 2012.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM:sv
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Jenny Larson, Budget Director
Masterpiece on the Mississippi
TO Michael C Van Milligen, City Manager
FROM Jenny Larson, Budget Director
DATE June 11, 2012
SUBJECT Request for Proposal (RFP) for Financial Advisory Services
Dubuque
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NI- America City
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2007
BACKGROUND
The purpose of this memo is to provide an RFP for financial advisory services for five years beginning in 2012 In 2001
Evensen Dodge, Inc was the successful bidderforthe 5 year Financial Advisory Contract Evensen Dodge was later
acquired by Public Financial Management In 2006 Public Financial Management was again the successful bidderfor5 year
contract through 2011 The City utilized Speer Financial for financial advisory services for many years prior to the 2001 RFP
DISCUSSION
Acommittee will review proposals submitted and provide a recommendation The tentatwe time frame for the RFP process
follows
June 19, 2012 Issue Proposal
June 29, 2012 Proposals Due
July9,2012 Committee Recommendation to Crty Manager
July 16, 2012 City Council Approval of Firm
July 17, 2012 Firms Notified of Selection
The following Crty of Dubuque employees are recommended to serve on the review committee
Jenny Larson Budget Director
Ken TeKippe Finance Director
Jean Nachtman Assistant Finance Director
RECOMMENDATION
The recommended action at the June 18, 2012 meeting is for the City Council to authorize the release of the RFP to receive
proposals for Financial Advisory Services for the City of Dubuque
Prepared by
JL/eml
Enclosure
TO:
FROM:
SUBJECT:
DATE:
GENERAL
Firms Interested in Providing Financial Advisory Services
Jenny Larson, Budget Director
REQUEST FOR PROPOSAL —
INDEPENDENT FINANCIAL ADVISORY SERVICES
June 19, 2012
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 this
Request for Proposal (RFP).
BORROWING INFORMATION
The City has an Aa1 bond rating from Moody's Investors Service since April 2010 as part
of the recalibrating of municipal bonds. 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. Many City
projects are funded from non - borrowing. The City may be utilizing the State of Iowa
Revolving Loan Fund for projects that qualify due to the favorable borrowing costs.
William Noth from the Ahlers & Cooney law firm in Des Moines serves as the City's bond
counsel. Wells Fargo Bank provides paying agent services for City bond issues. The City
does not anticipate any negotiated bond sales.
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, proposed fees and
other factors deemed important. The City may schedule interviews with a limited number
of 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. The recommendation of the committee will be
subject to City Manager and City Council approval.
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SUBMISSION DEADLINE
Five (5) hard copies and one (1) electronic filing of the proposals must be received no later
than 5:00 p.m., June 29, 2012. The proposals should be submitted to:
Jenny Larson, Budget Director
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001 -4864
JLarson @CityofDubuque.org
A copy of the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended
June 30, 2011 is available at www.cityofdubuque.orq/2011CAFR.
Questions concerning this RFP may be addressed to Jenny Larson via e-mail
jlarson a@.cityofdubuque.orq until June 22, 2012.
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CITY OF DUBUQUE, IOWA
Request for Proposal: Financial Advisory Services
May 22, 2012
Description of Firm
Please provide a description of your firm including, at a minimum the following:
• Date the firm was established;
• Location of the firm's main office and other offices and the number of
employees in each office; and
• Whether the firm is an independent financial advisory firm 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 providing assistance
in any referendum campaign;
• 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 Of 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), present at City council meeting on date of sale;
• Reviews pricing and allocations of bonds (negotiated sale);
• Coordinates supplying information to City bond counsel and rating agency;
• Work with City staff to ensure costs of debt repayment are favorable short
and long term;
• Assists with closing arrangements and provide follow -up and post sale
analysis;
• Provides advice on investment of bond proceeds Of appropriate);
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• Provides advice related to compliance with arbitrage regulations;
• Assist in TIF financings including cash flow, preparing materials for
negotiating and best financial plans;
• Assist in SRF borrowings and determine best financing options;
• Assist with maintaining a City debt management policy
• Filing annual continuing disclosure report; and
• Provide refunding analysis in connection with new bond issues and /or when
appropriate at other times;
• Provide input on Post - Issuance Compliance Policy for Tax - Exempt Qualified
Obligations.
Please provide your firm's plan for service to the City.
References
Please provide at least three government client references 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:
• Detail of staff to be assigned to City of Dubuque;
• Description of specific duties performed by each assigned staff person;
• Qualifications of staff - years in public finance, other relevant experience,
education 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. Please provide confirmation that the requirements will be met. Insurance
certificate can be supplied at a later date by the successful firm.
Fees
Please provide a fee schedule for potential bond issues and for other projects and services
including, at a minimum, the following:
• Fee schedule;
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• List of services covered by fees. Specifically state which costs are included
in the fee proposal and 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;
• Treatment of multiple issues sold at the same time; impact on fees; and
• Annual continuing disclosure report;
• Retainer fee Of applicable).
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 30 -days notice. There may be an automatic renewal clause available upon
completion of the initial five -year term. Please provide options(s) for such a clause.
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 or submit bids to purchase the same 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 price
changes.
However, negotiated sales for TIF related projects may occur.
Legal Violations and Conflicts of Interest
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State whether your firm, within the past five years, has had any legal or regulatory
violations, and describe any investigations by the SEC or other regulatory agencies, or
other legal action (such as litigation) in which the firm has been 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.
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