REQUEST FOR PROPOSALS FOR EMERGENCY FIRST RESPONDER VEHICLE FINANCING UP TO $10,000,000

Transcription

1 REQUEST FOR PROPOSALS FOR EMERGENCY FIRST RESPONDER VEHICLE FINANCING UP TO $10,000,000 April 13, 2016

2 A. INTRODUCTION The Virgin Islands Public Finance Authority (the PFA ) was founded in 1988 as a public corporation and autonomous government instrumentality of the Government of the United States Virgin Islands (the GVI ). The PFA was created to assist the GVI in the performance of its fiscal duties and in raising capital for essential public projects. The PFA is also empowered to borrow money and issue bonds to encourage private enterprise that maximizes employment opportunities for all Virgin Islanders. B. BACKGROUND AND PURPOSE OF THE RFP The PFA, on behalf of the GVI, is seeking a revolving multi-year credit facility to provide the financing for the following vehicles and equipment pursuant to Bill No , as amended (hereinafter, collectively, the Emergency First Responder Vehicles ), which would be available for the acquisition of additional police vehicles, and equipment for the Virgin Islands Police Department (the VIPD ), as well as emergency vehicles and equipment for other Virgin Islands first responders, including the Virgin Islands Department of Health (the VIDH ) and the Virgin Islands Fire Department (the VIFD ), together with law enforcement and public works departments, including the Office of the Medical Examiner (the OME ), the Virgin Islands Bureau of Corrections (the BOC ), the Virgin Islands Department of Public Works ( DPW ), the Department of Human Services (the DHS ), the Department of Education (the DOE ) and the Government of the Virgin Islands (collectively referred to herein as the Emergency First Responders Fleet Project ). Such financing is intended to ensure that adequate resources are available, in particular, to (i) acquire additional unmarked interceptors, prison transportation vans, utility vehicles, services relative to attaining and maintaining compliance with the VIPD Consent Decree and to combat crime in the Territory; (ii) acquire five (5) new fire suppression vehicles, one (1) Freightliner Tanker/Pumper, two (2) Kenworth Tankers, two (2) Freightliner Pumpers, and five (5) Rescue Trucks, as well as refurbishing of three (3) fire suppression units within the VIFD s existing fleet; (iii) upgrade and modernize the VIDH s emergency medical fleet, emergency medical support vehicles and ambulances for other emergency response vehicles; (iv) acquire modern biological and pathological equipment and vehicles to enable the OME to properly transport, autopsy and examine human remains, in order to effectively carry out its duties providing substantial and critical forensic support to the administration of justice in the Territory; (v) upgrade the BOC fleet, including prisoner transport vehicles, and acquire and improve a video surveillance system at BOC facilities, and construct perimeter fencing to ensure adequate security at its facilities; (vi) acquire vehicles for the Government of the Virgin Islands subject to the limitations in Bill No , as amended; (vii) acquire heavy equipment and vehicles for road repairs, general and emergency management, and hurricane restoration for the DPW; (viii) acquire secure and non-secure utility vehicles for the DHS for the transportation of the Youth Rehabilitation Center; and (ix) vehicles for the maintenance division of the DOE. A competitive bid process will be undertaken by the U.S. Virgin Islands Department of Property and Procurement to award certain contracts for the upgrades and acquisitions described herein, as required.

3 C. SCOPE OF RFP Services expected pursuant to this RFP will include: 1. The PFA seeks either a revolving multi-year credit facility financing or term loan in an amount not to exceed, at any time, $10,000,000, to provide a source of funding for the recurring needs of first responders, other law enforcement, the Government of the Virgin Islands and public works departments, the VIFD, the OME, the BOC, the DPW and the DOE, for efficient and reliable vehicles and equipment, to authorize the Emergency First Responder Vehicle Financing Credit Facility for a five (5) year term, with one automatic three (3) year renewal and, thereafter, such optional renewal periods as may be exercised at the discretion of the Legislature of the Virgin Islands. 2. Repayment of the loan will be in equal monthly installments. 3. The PFA shall have the option to prepay and terminate the loan with no prepayment penalty. 4. Proposals for both fixed and variable interest rates will be considered. 5. The loan will be structured as a subordinate lien revenue note, repaid and secured by an interest in Gross Receipts Tax revenues, subordinate to outstanding GRT Bonds. The Fifth and Sixth Supplemental Indentures amended the Gross Receipts Tax Indenture (September 7, 2005) between the PFA and the Bank of New York Mellon Trust Company, as Trustee, to provide for subordinate lien revenue notes. Included in the RFP package is the GRT Indenture; Fifth and Sixth Supplemental Indentures; Act 7453; and Amendments Bill # and Bill # The Emergency First Responder Vehicles will not be pledged as security for the financing. 7. The PFA expects to receive the funds in whole or in part, upon closing, and thereafter (if in part), through periodic draws under the Emergency First Responder Vehicle Financing Credit Facility. 8. The documentation for the financing must be satisfactory to the Virgin Islands Commissioner of Finance and the financing is subject to the approval of the PFA Board of Directors. 9. The proposal should detail all costs related to the financing, including those that are to be paid by the Government (ex. lender s counsel fees). 10. The interest rate for the loan must be guaranteed for 45 days from receipt of the proposal. 2

4 D. REQUEST FOR PROPOSAL The lending institution shall provide a clear, concise statement of qualifications relative to this financing, including statements regarding the total capitalization and the lender s credit ratings (if applicable), which will address the lender s capacity to provide the requested credit facility. 1. Provide a brief description of the financial institution. 2. Provide a list of credit relationships relevant to the GVI. Describe your experience with similar credits in the U.S, U.S. territories and throughout the Caribbean. 3. Detail the lender s total capitalization. 4. Provide audited annual report evidencing financial strength sufficient to support the capitalized cost of the Emergency First Responder Vehicles. 5. Name the principal banker and or team responsible for the management of this relationship with the PFA. 6. Outline the proposed fee structure, including estimated lender counsel s fees and any other related charges, relative to the draw down schedule, and terms for loan and banking services. 7. Detail any pending investigations of the bank or disciplinary actions within the last three years by the SEC. E. SCHEDULE Issuance of RFP April 13, 2016 RFP Due Date April 28, 2016 RFP Review Period April 28th - May 5, 2016 Selection of Financial Institution - May 5, 2016 Issuance of financing Term Sheet May 20, 2016 Negotiation May 23-26, 2016 Issuance of Bank Commitment Letter June 1, 2016 Finalize all Definitive Agreements June 1-14, 2016 Closing June 15, 2016 F. SUBMISSION OF PROPOSALS Five print copies of the proposal must be received no later than the close of business on April 28, 2016 at the following location: 3

5 Valdamier O. Collens, Executive Director Joanne E. Bozzuto, Director of Finance and Administration Virgin Islands Public Finance Authority 5033 Kongens Gade St. Thomas, USVI In addition, please your proposal to each of the following: Patricia A. Goins, Esq., Hawkins Delafield & Wood LLP 28 Liberty Street, 43rd Floor New York, NY (212) Andre Wright, Standard International Group, Inc Avenue of the Americas 29 th Floor New York, New York (212) G. REVIEW OF PROPOSALS The PFA invites the submission of proposals to provide financing for this Emergency First Responder Vehicle Credit Facility, and to offer the lowest possible rate subject to the foregoing terms. The proposals will be reviewed by the PFA, in consultation with its financial advisor and legal counsel. The PFA expects to award the contract to the lowest most responsible bidder meeting the terms and conditions set forth in this RFP. The PFA reserves the right to reject any proposal. The PFA reserves the right to ask follow-up questions based on the proposals received from all or some of the respondents, through written requests, interviews, and/or phone conferences. However, based upon responses, the PFA may determine, at its sole discretion, to proceed to a decision without requiring these steps. It is expected that on or around May 5, 2016 the selected financial institution will be contacted. H. GENERAL REQUIREMENTS The following will govern this process: 1. Incurring Cost: Any cost incurred by a financial institution in preparation, transmittal, or presentation of any proposal or material submitted in response to this RFP shall be borne solely by the financial institution. 2. Termination: This RFP may be canceled at any time if the PFA so determines. 4

6 3. Governing Laws: This RFP, and any agreement with banks that may result, shall be governed by the laws of the United States Virgin Islands. 4. Qualified Institutional Buyer: The lending institution selected for this financing will be required to make representations satisfactory to the PFA that, among other things, it has performed its own diligence, is a Qualified Institutional Buyer, as that term is defined in Securities Exchange Commission Rule 144A (17 CFR A), and has sufficient knowledge and experience in financial and business matters to understand and evaluate the merits and risks of entering into the loan, and is able and prepared to bear the economic risk of investing in and holding the bond securing such loan. 5. Right to Waive Minor Irregularities: The PFA reserves the right to waive RFP requirements. This right is at the sole discretion of the PFA. 5