Request for Proposal Financial Advisor Services

Transcription

1 Request for Proposal Financial Advisor Services County of Maui Department of Finance March 4, 2014 RFP 13-14/P-81

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3 SPECIFICATIONS INTRODUCTION The County of Maui is seeking the services of a Financial Advisor to assist in the planning and issuance of four series of general obligation bonds, two new money series and two refunding series, totaling up to $65 million. The financing may also include a private placement of one of the series. The County may also require the Financial Advisor, from time to time, to provide financial studies or related assignments. The County s last issue was in 2012 and bonds were sold by competitive sale. BACKGROUND The County consists of the inhabited Islands of Maui, Moloka`i and Lana`i and the uninhabited Island of Kahoolawe. The County is the second largest of the four Counties in the State in area. Its land area (including the uninhabited Island of Kahoolawe) is 1,162 square miles (approximately the size of Rhode Island), or 18% of the land area of the State. Based on U.S. Census data, the County's resident population grew from 101,588 in 1990 to 128,241 in 2000, representing the highest growth rate (26.2%) in the State over this period. Based on U.S. Census data, by 2010, the County's resident population grew to 154,834. The U.S. Census Bureau estimates the County's population as of July 1, 2011 to be 156,674. The County's web site address is The information presented on such website is not incorporated by reference as part of this Official Statement. Government The County provides a broad range of municipal services. These services include public safety (police, fire and public prosecutor), construction and maintenance of highways and streets, sanitation, social services, culture and recreation, public improvements, planning and zoning, water supply and general administrative service. Outstanding Debt The County of MAUI has $ 203,275,000 in outstanding general obligation bond debt and periodically issues general obligation bonds to fund additional projects. The County s current Bond rating is Aa1/AA+/AA+. Minimum Applicant Requirements 1. Financial Advisor shall be registered with the SEC as required under section 975 of Title IX of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( Dodd-Frank Act ) 2. Financial Advisor shall have the appropriate certifications to undertake business with the County in the State of Hawaii 3. Financial Advisor shall be available as needed on Maui for meetings and be generally familiar with Maui County

4 4. Financial Advisor shall have a minimum of $2 million in errors and omission insurance 5. Financial Advisor must be an independent advisor specializing in providing municipal advisory services solely on debt transactions and not affiliated or owned by a bank or other financial institution. SCOPE OF SERVICES Role of Financial Advisor 1. Serve as the County s consultant on debt financing projects. 2. Provide independent financial advice and serve solely the interests of the County. 3. Manage the bond financing process and negotiate key business points to accomplish the County s objectives. Services to be provided The County seeks to utilize the best combination of options available to adequately address the capital needs of the County. The selected Financial Advisor will be required to perform the following: 1.Develop a plan of finance and prepare financing schedule. 2. Evaluate legal approaches permitting various financing structures and propose financing methods, with emphasis on innovation, to be considered for accomplishing the County's objectives. This will be done in conjunction with the County's staff and legal counsel. 3. Review legal documents. 4. Analyze and report on the advantages and disadvantages of each proposed financing. 5. Evaluate the projected cash flow from any revenue sources that may constitute security for any obligation incurred. 6. Review existing revenue sources, budgetary practices, policies, and debt commitments to determine potential impacts, if any, on the proposed financing and make appropriate recommendations to the County's financing team. 7. Work with the County's bond counsel and financing team in recommending size, structure, specific terms and conditions of a debt issue. Present information regarding methods of sale, including publicly offered and privately negotiated options. 8. Assist the County in selection of formation of financing team, including preparing a list of services required of underwriter, trustee, verification agent and other professionals, as agreed upon.

5 9. Advise the County's financing team on areas of industry specific knowledge that affects the financing and marketing of the project's debt. 10. Assist bond counsel in preparing the text of an official statement as required. The official statement and disclosure documents. Official statements will include a description of the securities, the project, and pertinent financial and economic data. In the preparation of such an official statement, assist the County in ascertaining material facts and circumstances regarding the project. The official statement will be printed and mailed, together with copies of the official notice of sale and basic legal documents, to a comprehensive list of prospective bidders. 11. Prepare credit profiles and assist County making presentations bond insurance companies and/or rating agencies. These agencies may require sufficient information to receive the highest possible rating on any securities prior to the sale of such securities. 12. Prior to the sale of securities, assist in representing the County at information meetings if such meetings are necessary or desirable. 13. Assist in negotiations with bond insurers and/or letter of credit providers. 14. Manage competitive or negotiated sale process. Arrange for advertising and premarketing of issue. Represent the County at the bid opening for a public sale and analyze the bids, identify the most favorable bid, and make a recommendation as to award of the bid. Act as the County's agent if bid negotiations are required. After the bid is awarded, prepare an actual debt service table based on accepted coupon rates. In the event of a negotiated offering, assist the County in negotiating appropriate terms, reviewing spreads, comparing deals, analyzing market levels, and clarifying syndicate roles with selected underwriter. 15. Assist the County in closing the financing, which includes assistance in selecting a bond printer and in advising the County on the investment of proceeds pending expenditure. 16. Prepare and deliver presentations designed to facilitate an understanding of public sector financing and its implications to Maui County officials. 17. Analyze the financing impact of project costs, cash flow projections and rate implications. Participate in the development of alternate strategies with County's financing team. TERM OF CONTRACT The contract period shall begin with the notice to proceed. Upon satisfactory performance and availability of funds, the contract may be extended, at the same

6 prices, terms and conditions, by the County for not more than four (4) additional twelve (12) month periods, without re-bidding, upon mutual agreement in writing. PROPOSAL REQUIREMENTS A. Scope of Services Consultant shall provide a clear, concise response to the scope of service requirements set forth above. In the event of joint proposals between two or more firms, indicate the role that each sub consultant or co-proposer would perform. The County reserves the right to select or choose between co-proposers and sub consultants. B. Qualifications The consultant shall identify the financing team and any other key personnel involved in this project, including sub consultants and co-proposers. The people identified as this team will be the ones allowed to participate in the event the team is invited to an interview. Provide a brief resume for each person listing specific qualifications 1. Please provide a list of financial advisory assignments completed for Hawaii Counties. 2. Please provide a list of general obligation bond or general fund obligations in which your firm has served as financial advisor 3. Identify other Counties in which you are under contract and serve as financial advisor 4. Please discuss your familiarity with Maui County and its financial objectives, policies and goals. 5. Please discuss your general availability to provide services in Maui County.. C. References Consultant shall include the name, address and telephone number of three to five clients for whom services similar to those described in this Request for Proposal have been performed.. D. Disclosure The Consultant will disclose any professional or personal financial interest which could be a possible conflict of interest in representing the County. Consultant shall further disclose arrangements to derive additional compensation from various investment and reinvestment products, including financial contracts

7 E. Fee The Consultant will prepare a total fee statement for the four general obligation bond series proposed and an hourly fee statement for additional studies or support as needed. F. Proposal Submission Two copies of the completed proposal with length not to exceed 5 pages must be submitted no later than 4:00 PM, April 1, 2014 to: Office of the division of Purchasing 2145 Wells Street Suite 104 Wailuku, HI, The County of Maui General Terms and Conditions for Goods and/or Services shall be made a part of these bid documents, and can be found at the following link: news: SELECTION PROCESS Decision criteria include: 1. Overall quality of responses - 20% 2. Firm experience with Hawaii municipality negotiated and competitively bid general obligation bond issuances - 25%, 3. Qualifications of Financial Adivsor - 15% 4. Fees and expenses - 20% Fees and expenses will be evaluated using the following formula: (lowest cost proposal X max number of points)/cost of proposal being evaluated. In order to determine the proposal cost, we will add the total fee statement for the four general obligation bond series and the hourly fee for 100 hours for additional studies or support as needed. 5. Demonstrated understanding of the Scope of Work - 20%. The County reserves the right to reject any and all proposals and to waive informalities and minor irregularities in any proposal reviewed. Further, the County may reject any proposal which does not conform to the instructions herewith. Additionally, the County reserves the right to negotiate all final terms and conditions of any agreement entered

8 into. Nothing in the Request for Proposals shall be deemed to commit the County to engage any Financial Advisor. Discussions may be conducted with priority-listed offerors pursuant to section However, proposals may be accepted without discussions. Offerors shall designate in writing those portions of the un-priced proposal that contain trade secrets or other proprietary data that are to remain confidential, subject to section ; that the material designated as confidential shall be readily separable from the proposal in order to facilitate inspection of the non-confidential portion of the proposal. OTHER REQUIREMENTS Hawaii Compliance Express (HCE) In accordance with Section , as amended, of the Hawaii Administrative Rules, the successful bidder must produce the following documents: a. Tax Clearance Certificate b. DLIR Certificate of Compliance c. Certificate of Good Standing from the DCCA The awarded vendor is encouraged to use the Hawaii Compliance Express website to assist them in obtaining the above certificates. The state website is LIMITATIONS The Financial Advisor shall not be permitted to participate directly or indirectly in any manner in the purchase of any financing debt or bonds relating to any phase of the project for which Financial Advisor services are provided. Should you have any questions, please contact Jack Kulp at or at