Financial Services RFP's
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MEMORANDUM
November 21, 2006
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Request for Proposal (RFP) for Financial Advisory Services
Finance Director Ken TeKippe recommends City Council authorization to release a
Request for Proposal for financial advisory services for the City of Dubuque.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Ken TeKippe, Finance Director
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TO:
Memorandum
Michael C. Van Milligen, City Manager
Ken TeKippe, Finance Director 1~ G f~
SUBJECT: Request for Proposal (RFP) for Financial Advisory Services
FROM:
DATE:
November 20, 2006
BACKGROUND
The purpose of this memo is to provide an RFP for financial advisory services for five
years beginning in early 2007. In 2001 the City issued an RFP for financial advisory
services for five years ending December 31, 2006. Public Financial Management
(acquired Evensen Dodge, Inc. who had been awarded the contract) has provided
services since 2002. The City utilized Speer Financial for financial advisory services for
many years prior to the 2001 RFP.
DISCUSSION
A committee will review proposals submitted and provide a recommendation. The
tentative time frame for the RFP process follows:
December 5,2006
December 19, 2006
January 8, 2007
January 15, 2007
January 16, 2007
Issue Proposal
Proposals Due
Committee Recommendation to City Manager
City Council Approval of Firm
Firms Notified of Selection
The following City of Dubuque employees are recommended to serve on the review
committee:
Ken TeKippe
Jenny Larson
Jean Nachtman
Steve Sampson Brown
Dave Heiar
Finance Director
Budget Director
Assistant Finance Director
Project Manager in Engineering
Economic Development Director
RECOMMENDED ACTION
The recommended action at the December 4, 2006 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.
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Enclosure
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Memorandum
TO: Firms Interested in Providing Financial Advisory Services
FROM: Ken TeKippe, Finance Director '~ ((;. ~
SUBJECT: REQUEST FOR PROPOSAL -
INDEPENDENT FINANCIAL ADVISORY SERVICES
DATE: December 5, 2006
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 this
Request for Proposal (RFP).
BORROWING INFORMA nON
The City has an Aa2 bond rating from Moody's Investors Service since September 2003.
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 majority of 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 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.
SUBMISSION DEADLINE
Eight (8) copies of the proposals must be received no later than 5:00 p.m., Tuesday,
December 19, 2006. The proposals should be submitted to:
Ken TeKippe, Finance Director
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001-4864
A copy of the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended
June 30,2005 is enclosed. The June 30, 2006 CAFR is not available. A $3,810,000
General Obligation Bond issue was finalized in May 2006 for stormwater and parking
projects and $3,345,000 of debt was refinanced with the issue.
Questions concerning this RFP may be addressed to Ken TeKippe via telephone
563-589-4133, fax 563-589-0890 or via e-mail ktekippe@citvofdubuQue.orQ until
December 12, 2006.
City of Dubuque
REQUEST FOR PROPOSAL
FOR
FINANCIAL ADVISOR SERVICES
December 5, 2006
Finance Department
City Hall
50 West 13th Street
Dubuque, Iowa 52001-4864
CITY OF DUBUQUE, IOWA
Request for Proposal: Financial Advisory Services
December 5, 2006
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 (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);
* 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 (if appropriate);
* Provides advice related to compliance with arbitrage regulations;
1
* Filing annual continuing disclosure report; and
* Provide refunding analysis in connection with new bond issues and/or when
appropriate at other times.
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;
* 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.
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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 3D-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.
Legal Violations and Conflicts of Interest
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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INSURANCE SCHEDULE C
INSURANCE REQUIREMENTS FOR PROFESSIONAL SERVICES TO THE
CITY OF DUBUQUE
1. 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 better in the current A.M. Best
Rating Guide.
2. All policies of insurance shall be endorsed to provide a thirty (30) day advance
notice of cancellation to the City of Dubuque, except for 10 day notice for non-
payment, if cancellation is prior to the expiration date. This endorsement supersedes
'the standard cancellation statement on the Certificate of Insurance.
3. shall furnish a signed Certificate of Insurance to the City of
Dubuque, Iowa for the coverage required in Paragraph 6 below. Such Certificates
shall include copies of the following endorsements:
a) Commercial General Liability policy is primary and non-contributing.
b) Commercial General Liability additional insured endorsement.
'c) Governmental Immunities Endorsement.
shall also be required to provide Certificates of Insurance
of all subcontractors and all sub-sub contractors who perform work or services
pursuant to the provisions of this contract. Said certificates shall meet the same
insurance requirements as required of
4. .Each certificate shall be submitted to the contracting department of the City of
Dubuque.
5. Failure to provide minimum coverage shall not be deemed a waiver of these
requirements by the City of Dubuque. Failure to obtain or maintain the required
insurance shall be considered a material breach of this agreement.
6. Contractor shall be required to carry the following minimum coveragellimits or
.greater if required by law or other legal agreement:
a) COMMERCIAL GENERAL LIABILITY
General Aggregate Limit
Products-Completed Operations Aggregate Limit
Personal and Advertising Injury Limit
Each Occurrence Limit
Fire Damage limit (anyone occurrence)
Medical Payments
$2,000,000
$1,000,000
$1,000,000
$1,000,000
$ 50,000
$ 5,000
10f2
June 2005
INSURANCE SCHEDULE C (Continued)
INSURANCE REQUIREMENTS FOR PROFESSIONAL SERVICES TO THE
CITY OF DUBUQUE
This coverage shall be written on an occurrence form, not claims made form. All
deviations or exclusions from the standard ISO commercial general liability form CG
0001 or Business owners BP 0002 shall be clearly identified. Form CG 25 04 03 97
'Designated Location (s) General Aggregate Limit' shall be included.
Governmental Immunity endorsement identical or equivalent to form attached.
Additional Insured Requirement:
The City of Dubuque, including all its elected and appointed officials, all its
employees and volunteers, all its boards, commissions and/or authorities and
their board members, employees and volunteers shall be named as an additional
insured on General Liability including "ongoing operations" coverage equivalent
to ISO CG 20100704.
b) Automobile $1,000,000 combined sinale limit.
c) WORKERS COMPENSATION & EMPLOYERS LIABILITY
Statutory for Coverage A
Employers Liability:
Each Accident
Each Employee Disease
Policy Limit Disease
$ 100,000
$ 100,000
$ 500,000
$1,000,000
$1,000,000
d) PROFESSIONAL LIABILITY
e) UMBRELLA/EXCESS LIABILITY
Completion Checklist
D Certificate of Liability Insurance (2 pages)
D Designated Location(s) General Aggregate Limit CG 25 04 03 97
D Additional Insured CG 20 10 07 04
D Governmental Immunities Endorsement
20f2
June 2005
IMPORTANT
If the certIflcate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A stalement
on this certificate does not canter rights to the certificate holder In lieu of such endorsement(s).
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may
require an endorsement A statement on thls certificate does not confllf rights to the certificate
holder in lieu of such endorsement(s).
DISCLAIMER
The Certificate of Insurance on the reverse side of this form does not constttute a contract between
the issuing insurer{s), authorized representative or producer, and the certificate holder, nor does it
affirmatively or negatively amend, extend or aiter the coverage afforded by the policies listed thereon.
SPECIMEN
rOSl
, ROlley NUMBER:
, .
COMMEr.:CIAL GENERAL LIABILITY
CG 25 04 03 97
THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY.
DESIGNATED LOCA TION(S)
GENERAL AGGREGATE LIMIT
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
SCHEDULE
Designated LOca1ion(s):
ANY AND ALL COVERED LOCATIONS
(If no entry appears above, Information required to complete t IS endorsement will be shown in the Declarations
as applicable to this endorsement.)
A. For all sums which the insured becomes legally
obligated to pay as damages caused by
'occurrences' under COVERAGE A (SECTION
I), and for all medical expenses caused by acci-
dents under COVERAGE C (SECTION I). which
can be attributed only to operations at a single
designated 'locatlon" shown In the Schedule
above:
1. A separate Designated Loca1lon General
Aggregate Umit applies to each designated
"location", and that Ilmit is equal to the
amount of the General Aggregate LImit
shown in the Declarations.
2. The 'Designated Loca11on General Aggregate
LImit is the most we wm pay for the sum of all
damages under COVERAGE A, except dam-
ages because of 'bod1ly Injury" or 'property
damage" included in the 'produc:ts:completed
operations hazard', and for medical expenses
under COVERAGE C regardless of the,num-
berof:
a. 'Insureds;
b. Claims made or 'suits. brought; or
c.. Persons or organizations making claims
or bringing 'suits".
3. Any payments made under COVERAGE A
for damages or under COVERAGE C for
medical expenses shall reduce the Desig-
nated Location General Aggregate LImit for
that designated 'Iocation". Such payments
shall not reduce the General Aggregate LImit
shown In the Declarations nor shall they re-
duce any other Designated Location General
Aggllilgate LImit for any other designated
"ocation" shown in the Schedule above.
4. The limits shown in the Declarations for Each
Occurrence, Fire Damage and Medical ex-
pense continue to apply. However, Instead of
being subject to the General Aggregate LImit
shown in the Declarations. slJ&ll Jlmits will. be
subject to the appllcable Designated Location
General Aggllilgate Umit.
SPECIMEN
CG ZS 04 03 97
Copyright, InsuranCl! Services Office, Inc., 1996
Page 1 of2
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POLICY NUMBER:
COMMERCIAL GENERAL LIABILITY
CO 20 10 07 04
'THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED - OWNERS, LESSEES OR
CONTRACTORS - SCHEDULED PERSON OR
ORGANIZATION
This endorsement modifies insurance prollided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
SCHEDULE
The City of Dubuque, including all its
elected and appointed officials, all its
employees and volunteers, all its boards,
cO!11I1issions and/or authorities and their
board members, employees and volunteers.
Location s Of Covered 0 rations
A. section " - Who Is An Insured is amended to
include as an additional insured the person(s) or
organization(s) shown in the Schedule, but only
w~h respect to liabil~ for "bodily injury", "property
damage" or "personal and advertising injury"
caused, in whale or in part. by:
1. Your acts or omissions; or
2. The acts or omissions of those acting on your
behalf;
In'the performance at your ongoing operations for
the additional insured(s) at the locatlon(s) desig-
nated above.
SPECIMEN
B. With respect to the insurance afforded to these
additional insureds, the following additional exclu-
sions apply:
This insurance does not apply to "bodily injury" or
"property damage" occurring after:
1. All work, including materials, parts or equip-
ment furnished in connection with such work.
on the project (other than serllice, maintenance
or repairs) to be performed by or on behalf of
the additional Insured(s) at the location of the
covered operations has been completed; or
2. That portion of ''your work" out of which the
injury or damage arises has been put to Its in-
tended use by any person or organization other
than another contractor or subconlractor en-
gaged in performing operations for a principal
as a part of the same project.
CO 20 10 07 04
ClISO Properties. Inc.. 2004
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CITY OF DUBUQUE, IOWA
GOVERNMENTAL IMMUNITIES ENDORSEMENT
1. Nonwaiver of Governmentallmmunitv. 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 from time to time.
2. Claims Coveraae. 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.
3. Assertion of Government Immunitv. 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.
4. Non-Denial of Coveraae. 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 Chanae in Policv. The above preservation of governmental immunities shall
not otherwise change or alter the coverage available under the policy.
SPECIMEN
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June 2005