Request for Proposals For Financial Advisor Services

Transcription

1 Request for Proposals For Financial Advisor Services Finance Department Contents Section I Introduction 2 Section II Description of Village 2 Section III Debt Financing Plans 3 Section IV Scope of Services 3 Section V Anticipated Schedule for Financial Advisor Selection 5 Section VI Contractual Arrangements 5 Section VI Proposal Requirements 5 Section VIII Selection Criteria 8 Section IX Proposal Due Date and Related Requirements 8 Section X Proposers Questions 9 Page 1

2 Section I Introduction Request for Proposals For Financial Advisor Services You are invited to submit a proposal to furnish financial advisor services to the Village of Deerfield. The Village has engaged Northern Trust to provide financial advisor services since The Village has invited several firms to submit proposals in response to this Request for Proposals. The selected financial advisor will be prohibited from acting as underwriter of any debt issued by the Village during the term of the engagement and will not be allowed to resign from the engagement for the purpose of underwriting the subsequent issue. Section II Description of Village The Village of Deerfield is a home-rule municipality with a population of approximately 19,000 incorporated under the laws of the State of Illinois. The Village has approximately 120 employees and an annual budget over $50 million. Village services include law enforcement, public works maintenance and improvements, community planning and development, parking facilities and general administration. Financial information concerning the Village can be found at including the annual financial report dated December 31, The Village s bond rating as determined by Moody s Investors Service for its outstanding debt is Aaa. The Village enjoys both a stable economic environment and continued growth due to its strong residential housing market, commercial development and the presence of a number of corporate headquarters including Walgreens, Baxter, Takeda Pharmaceuticals North America and Modelez International. The Village is ideally located in southeastern Lake County with ready access to two interstate highways, O Hare Airport, the Lake County corporate corridor and downtown Chicago via regular commuter rail service from two stations. In recent years, the Village has used tax increment financing to successfully redevelop its downtown business district and southern office and commercial areas. Residential redevelopment has taken place in the form of replacement of existing housing with new single family homes and two new luxury apartment complexes. More information about the Village can be found at The Village of Deerfield issues a Comprehensive Annual Financial Report (CAFR) in compliance with generally accepted accounting principles and in accordance with standards recommended by the Government Finance Officers Association of the U. S. and Canada. The Village has adopted formal policies in the areas of debt financing, budgeting, and investments. For many years, the Village has received GFOA s Certificate of Excellence in Financial Reporting and Distinguished Budget Presentation Awards. The Village s financial statements are audited annually by an independent certified public accountant pursuant to state statutes. Sikich is currently engaged by the Village to perform the Audit. Page 2

3 Financial operations are performed by an accountant and account clerks under the supervision of the Finance Director. The Finance Director works under the direction of the Village Manager, who is appointed by the Village Board. Section III Debt Financing Plans The Village has adopted a pay as you go philosophy for financing most capital assets, and issues debt for only unusual and expensive items that cannot be financed with cash within a reasonable period of time. The Village attempts to pay debt service with revenues other than property taxes. Currently, the Village abates property taxes for the interest rebates it receives related to its Build America Bonds and its Qualified Energy Conservation Bonds. The Deerfield Public Library s tax levy, which is their primary funding source, is also approved annually by the Village Board. Due to its bond rating, the Village is a strong proponent of competitively placed GO debt. The Village s bond counsel is Lewis Greenbaum of Katten Muchin Rosenman LLP, Chicago. Moody s Investors Services has assigned a rating of Aaa to the Village s fixed-rate general obligation debt. The Village is currently in year two of a three year expanded Capital Improvement Plan, which includes extensive Infrastructure projects. These projects are funded with Grants, Fund Balance Reserves and $10 million of GO debt issued in New debt could be considered for additional infrastructure projects in The Village will issue this debt as property tax supported general obligation debt. The selected Vendor will work with the Village to come up with solutions for all debt issuances and potential bond refundings within the contract period. Section IV Scope of Services 1. The financial advisor will become familiar with the Village s financial condition and policies, and will advise the Village on debt policies and other policies that might affect the marketability of the Village s bonds and its bond rating (e.g., investment policies.) 2. The financial advisor will become familiar with the Village s development strategies and its overall plans for projects that it plans to finance with debt. The advisor will also gain some familiarity with the Village s capital planning including its Five-Year Capital Improvements Plan. 3. The financial advisor will work with the Village s bond counsel and Village staff to determine the most advantageous ways for the Village to issue debt, including but not limited to the type of debt, repayment schedule, expected interest rates, annual maturity amounts, and call features. The financial advisor will join staff in presenting recommendations to the Village Board. 4. The financial advisor will plan and take such actions as to provide for the competitive sale of proposed debt. 5. The financial advisor will prepare tentative financing timetables setting out action dates for each respective party/person. 6. The financial advisor will estimate all costs of issuance. Page 3

4 7. The financial advisor will provide Bond Counsel with all relevant information needed for the bond ordinance and other closing documents. 8. The financial advisor will prepare the preliminary official statement (POS) and arrange for its issuance. The Village will provide reasonable assistance and information. The financial advisor will provide a draft POS to the Village and Bond Counsel for review prior to its release to the investment community. 9. The financial advisor will review the Village s current bond rating and coordinate the submittal of requests for bond rating reviews to rating agencies selected by the Village. 10. The financial advisor will coordinate any presentations to the rating agencies that might be required for rating reviews. 11. The financial advisor will distribute the Preliminary Official Statement and any other disclosure documents to the bond market community. 12. The financial advisor will arrange for the publishing of the notice of bond sale in the appropriate publications. 13. The financial advisor will be responsible for responding to all inquiries about the proposed bond sale from potential bond purchasers. 14. The financial advisor will receive and review all submitted bids on the day of the bid opening. 15. The financial advisor will provide a written summary of bids or proposals submitted by underwriters. The financial advisor will recommend to the Finance Director the underwriter whose bid the Village should accept, and the reasons for such recommendation. In a competitive issuance, such report shall be made on the day of the bid opening. 16. The financial advisor will attend the Board meeting the night of bond bid openings to present a summary of the bid opening and his or her recommendation. 17. The financial advisor will notify the successful bidder of the results of the bid opening and Board action. 18. The financial advisor will prepare the Final Official Statement and distribute the document as required. 19. The financial advisor will coordinate the delivery of the bonds and provide any other documents normally provided by a financial advisor in order for the bonds to close. 20. The financial advisor will attend bond closings if requested by the Village or bond counsel. 21. The financial advisor will review and explain the applicability of existing or proposed federal and state laws which affect the proposed issuance. Page 4

5 Section V Anticipated Schedule for Financial Advisor Selection Village Releases RFP to Firms March 25, 2016 Firms provide written or ed questions April 1, 2016 Village responds to questions April 8, 2016 RFP Due Date April 15, 2016 Selection of financial advisor May 16, 2016 The Village reserves the right to alter schedule dates if necessary. Section VI Contractual Arrangements The proposer must include in it proposal a sample contract and any other documents that it desires the Village to execute. The successful proposer shall execute the contract within 10 days of notification of selection. Section VII Proposal Requirements To secure information which facilitates systematic application of evaluation criteria, proposers must submit proposals with the information and in the format described below. A. Transmittal Letter. Proposals shall be transmitted by a letter which shall include the following: 1. An affirmation that the proposer has become familiar with this Request for Proposal dated March 25, 2016 and any addendums thereto, and that the proposers will furnish all personnel, supervision, labor, materials, machinery, tools, appurtenances, equipment, and services, including licenses, necessary to provide services in accordance with this Request for Proposals. (The requirements contained in this Request for Proposals shall be incorporated by reference into the proposer s proposal, which shall become part of the contract with the Village). 2. The name, title, postal address, and address of the individual to whom the Village should send notices regarding this Request for Proposal. 3. Confirmation that if selected as the Village s financial advisor, neither the firm nor its principals will underwrite the Village s debt, or submit a bid or proposal to purchase bonds from the Village, either directly or through participation in a syndicate or other means, during the term of the firm s financial advisor arrangement with the Village. 4. A statement disclosing any and all finder s fees, fee splitting, and/or other relationships and/or contractual agreements of the firm that could present real or perceived conflicts of interests. 5. A statement of any pending investigation of the firm or enforcement or disciplinary actions taken within the past three years by the SEC or other regulatory bodies. 6. Issues and alternatives that the Village should consider with respect to its debt financing plans discussed under Section III above (Debt Financing Plans). Page 5

6 7. The Village prohibits any firm from engaging in activities on behalf of the issuer that produce a direct or indirect financial gain for the successful proposer, other than the agreed-upon compensation, without the issuer s informed consent. B. Profile of the Proposer. Proposers shall describe: 1. The organization and size of the proposer, and whether it is local, regional, national, or international in operations. 2. The location of the office from which the work is to be done, and the number of professional staff employed at that office. 3. A description of the range of activities performed by the group proposed to provide services to the Village. 4. A description of any other specialized services provided by other offices of the proposer that are within 100 miles of Deerfield. 5. Identification of the professional staff who will be primarily responsible for performing the services outlined in this Request for Proposal, indicating title, nature of responsibilities, education, experience, any specialized skills, and number of years with the firm. (The Village understands that personnel may change from time to time, but the Village expects some continuity of staff.) 6. A description of the firm s ethics policy, and actions of the firm to ensure adherence to it. C. Firm Experience. Proposers shall provide the following information: 1. A summary of recent (within the past year) engagements where the firm served as financial advisor to a state or local government. 2. A listing of the firm s Illinois municipal clients during the past two years, including their non-insured bond ratings and home-rule status. 3. At least four references representing current Illinois municipal clients. D. Approach to Services. Proposals will include a discussion of the following: 1. The process the firm uses in working with municipal officials to develop plans to finance projects, including the type of written materials that the firm typically presents to the Finance Director and/or elected officials. 2. A discussion of circumstances in which the firm would typically recommend that the Village of Deerfield issue debt competitively and those circumstances in which the firm would typically recommend negotiated issuance. 3. A brief summary of the approach the firm would take in marketing the Village s competitive bond issue to the bond market to ensure the lowest possible interest cost. 4. A discussion of how the firm would ensure that the Village would obtain competitive rates on a negotiated bond issue. Page 6

7 5. A brief summary of the firm s philosophy on the use of rating agencies. 6. A description of the information normally presented to rating agencies. 7. A brief summary of the firm s philosophy on the use of premiums, discounts and call provisions. 8. The extent to which municipal equity should be used as a source of financing. 9. A brief summary of the approach the firm would take in preparing the POS. 10. A description of the information that the financial advisor would expect the Village to provide for the preparation of the POS. 11. The merits of using fixed rate and/or variable rate debt structures. E. Fee Proposals. Proposals shall include the following with respect to its proposed fees: 1. Services as Financial Advisor. Proposers shall present fee proposals to serve as financial advisor for this general obligation bond issue. Since the dollar amounts of planned bond issues are tentative and subject to change, the fee proposals may be structured as either a fee scale based on a specific dollar amount per bond, as a fixed dollar amount, or as a fee scale with a not-to-exceed amount. Any expenses that proposers expect to be reimbursed by the Village outside the quoted fees must be listed and estimated. 2. Hourly Fees. Proposers shall also discuss and present fee proposals for work that the Village might request that might not result in debt issuance, such as services discussed under section B4, above. Such rates shall include any and all direct and indirect costs. Proposers should discuss the extent to which it would waive fees for relatively minor work. 3. Continuing Disclosure. The financial advisor will provide the Village with an estimate of the fee to be charged for the preparation of the required financial information needed to meet continuing disclosure requirements each year. F. Documents to be submitted with Proposals. In addition to information specified elsewhere in this Request for Proposals, proposers shall provide one copy of the following with their proposals: 1. A copy of a Preliminary Official Statement prepared (within the past year) for an Illinois home-rule municipality. 2. A summary of bids for a competitive bond issue, recommending award of the bond sale. 3. A summary of proposals for a negotiated bond issue, recommending an underwriter. 4. A recommended plan to finance a capital project or projects. Page 7

8 Section VIII Selection Criteria The primary factor in determining the successful proposer will be the proposer s ability to provide the services described in this Request for Proposals as determined by responses to this Request for Proposals, references, and oral interviews. However, the Village will consider cost, particularly in the event of significant cost differences between proposers with similar qualifications. The Village anticipates inviting selected vendors to oral interviews following an initial evaluation of proposals submitted. Section IX Proposal Due Date and Related Requirements Each proposer shall submit three printed copies and one electronic (e.g. CD-ROM or ed pdf) copy of its proposal in a sealed envelope marked Financial Advisor Services Proposal not later than 4 PM April 15, 2016 to: Village of Deerfield Eric Burk Finance Director 850 Waukegan Rd. Deerfield, IL eburk@deerfield.il.us Late proposals may be returned, unopened, to the proposer. The Village reserves the right to reject any and all proposals, to waive any informalities or irregularities in any proposals received, to re-advertise for proposals, or take any other such actions that may be deemed to be in the best interest of the Village. All proposals submitted in response to this RFP shall be irrevocable for a period of Forty-five (45) days after the proposal due date and may not be withdrawn by the Vendor during this period. After such time has elapsed, the Vendor may withdraw the proposal if it has not been selected prior to the request to withdraw. Such withdrawal shall be requested in writing. The Village currently anticipates approving a contract for services during the regular Board meeting scheduled for May 16, All proposals, responses, inquiries, or correspondence relating to or in reference to this Request for Proposal, and all reports, charts, displays, and other documentation submitted by the Proposer shall become the property of the Village when received and shall not be returned to the Proposer. The Village reserves the right to use the material or any ideas submitted in this response to the Request for Proposal whether amended or not. Selection or rejection of any proposal does not affect this right. Any restrictions on the use of information contained within a proposal shall be clearly stated as such within the proposal. The Village will be able to comply with a request for confidentiality only to the extent allowed by law. The contents of the proposal or parts thereof selected by the Village will become contractual upon incorporation into the final Contract. Page 8

9 The Village is not responsible for any cost incurred by a Proposer in the process of responding to this Request for Proposal or for any pre-agreement costs incurred by any Proposer participating in the selection process. The Proposer is specifically denied the right to use the name of the Village of Deerfield for public advertising or reference in any form or medium without the express written permission of the Village of Deerfield. The Village reserves the right to terminate the selection process at any time, to reject any or all proposals and to award the engagement in the best interest of the Village of Deerfield. Section X Proposers Questions All questions regarding this proposal must be submitted by April 1, The Village will provide responses to all firms receiving this Request for Proposals by April 8, Send questions by to eburk@deerfield.il.us and include Financial Advisor RFP in the subject line. Address questions by letter to: Eric Burk, Finance Director Attn: Financial Advisor RFP 850 Waukegan Rd. Deerfield, IL Page 9