Introduction. Scope of Services

Transcription

1 Introduction South San Francisco, "The Industrial City" was incorporated on September 19, It has a population of approximately 66,000 and a land area of 9.14 square miles. South San Francisco is located approximately 8 miles south of Downtown San Francisco and is adjacent to the northern border of the San Francisco Airport and San Bruno, south of Daly City, Colma, and Brisbane, and east of Pacifica. The City of South San Francisco is a general law city, which operates under the council/manager form of government with a General Fund budget of over $84 million and a total budget of over $135 million for Fiscal Year The City of South San Francisco (the City ) is seeking proposals from firms wishing to serve as Financial Advisor. The City is seeking a single firm for a multi-year engagement, to provide on-going financial consultation services in addition to debt issuance rated services. The firm that is selected as financial advisor will not be considered for any underwriter or broker-dealer role with the City during the time it acts as financial advisor, or within 6 months of ceasing to act as the financial advisor. The firm that is selected will be prohibited from engaging in activities on behalf of the issuer that produce a direct or indirect financial gain for the financial advisor, other than the agreed-upon compensation, without the issuer s informed consent. Scope of Services In order to assist the City, the firm selected as Financial Advisor will be required to have the capabilities to perform the following duties: Serve as the City s bond market expert, including tax-exempt and taxable markets, fixed-rate and variable rate markets, and provide on-going analysis of current and upcoming trends and events in these and related areas. Review the overall financial status of the City and provide advice and recommendation related to the issuance of bonds and project-specific financing programs to maximize resources available for the implementation of each specific project. Monitor outstanding debt portfolios, including providing recommendations related to debt refunding and/or restructuring and providing status reports when requested (monthly, quarterly, annually, depending on need). Coordinate and participate in all aspects of the bond issuance process, from creating and maintaining a schedule, preparing solicitation/bidding documents, conducting independent analysis of financing alternatives, reviewing all aspects of negotiated pricings, monitoring performance of underwriting teams, to post issuance analysis and all tasks during the process. Assist the City in developing credit rating strategies. Perform special projects, including, but not limited to, assisting with capital improvement programs and debt affordability analysis. Be available on a regular, sometimes same day, basis for consultations with City Staff.

2 Proposal Requirements Interested firms shall submit a proposal which exhibits and substantiates extensive knowledge of and experience in providing the above scope of services to municipal clients. Each firm s submission shall be subject to a limit of twenty (20) pages, in a font no smaller than eleven-point, inclusive of a transmittal letter and exclusive of the resume exhibit. Section One: Transmittal Letter All proposals shall be accompanied by a transmittal letter addressed to Richard Lee, Director of Finance, and signed by an officer authorized to commit firm resources. The transmittal letter shall not exceed one page in length and shall: Provide the name of the proposing firm with the name, address, telephone number and facsimile numbers, and addresses of the proposed lead and backup Financial Advisors. Provide an executive summary of your proposal. Provide a certification stating that: o All information submitted in your proposal is true and correct; o The person signing the proposal has the full authority to do so on behalf of the firm; o The fees proposed have not been knowingly disclosed, directly or indirectly, to any other firm responding to the RFP; o No attempt has been made by your firm to induce any other person or firm to submit or not submit a response to this RFP for the purpose of restricting competition; and Section Two: Financial Advisor Experience Provide a brief description of the firm, including its history, size, geographic focus, structure of firm ownership (e.g., publicly held corporation, partnership, etc.) and any parents, affiliates, or subsidiaries of the firm. Discuss any recent changes in ownership, management, or staffing, or such changes that are expected to be executed within the next year, if any. Indicate whether your firm is registered with the Securities and Exchange Commission and/or the Department of Corporations as an Investment Advisor (NASD Series 65), and provide your firm s IARD/CRD number. Describe the types of financial advisor services your firm has provided to California municipal clients in the last three years, not limiting your discussion to debt issuance-related work. As an exhibit to the proposal, provide resumes of the proposed lead and back-up financial advisor and their respective office locations, including their direct involvement providing services to California municipal clients in the last three years. Experience of the proposed lead and back-up financial advisor with another firm other than the proposing firm will be considered. Provide at least three references from California municipal issuers for which the lead financial advisor being proposed by your firm has provided financial advisor services in the last three years.

3 Describe your firm s other available resources that would be available to assist the lead and backup financial advisors in performing the above scope of work. Section Three: Legal Proceedings Respond to the following questions regarding legal proceedings in connection with any offering of municipal securities: o Are there now pending any legal actions alleging violations of law in connection with an offering of municipal securities against the firm, any partner of the firm, or any employee of the firm? Describe each such pending action. o Have there been any settlements or judgements involving such actions within the last five years? Describe each such settlement or judgment, including the nature of the action and the amount of recovery. o Are there pending any legal or disciplinary matters involving such actions against the firm, any partner of the firm, or any employee of the firm by any state or federal regulatory agency? Describe each such action. o In addition, include any information about any criminal indictments or convictions against the firm or its employees where the charges involved an offering of municipal securities, and any material pending legal action, settlement, or judgement involving a claim of fraud, whether civil or criminal. o Discuss whether or not the firm is a party to any pending litigation with the City. o Disclose all contractual or informal financial arrangements/agreements, including joint accounts, fee-splitting, profit sharing and consulting agreements of your firm that could impact the City. The disclosure must be complete, accurate, and in sufficient detail to permit the City to make informed decisions as to with whom business is being conducted. Section Four: Fee Proposal Propose the fees to be charged by your firm for each type of financial advisor service your firm is including in your proposal. Identify which fees are on a not-to-exceed basis Identify which fees are at a flat rate Identify which fees are on a negotiated basis per assignment, and if applicable, the range of a fee within which negotiations would take place Describe any condition attached to a proposed fee, or any fee that would be payable on a contingent basis State which costs are included in the proposed fees and which costs are reasonable reimbursable expenses

4 If hourly rates are proposed for any type of service, include the rates for lead financial advisor, back-up financial advisor, and other employees who would be involved in providing services. Describe retainer fees if applicable Any other fees Selection Criteria The firm s submittal will be evaluated in accordance with the criteria outlined in the section entitled Proposal Requirements. Submittals will be evaluated for specificity, completeness, qualifications of personnel, demonstrated knowledge and experience providing the breadth and depth of services contemplated to be required by the City as described in the section entitled Scope of Services. The Consultant will be selected based on qualifications and demonstrated competence and the agreement may not be awarded to the lowest responsible proposer. When selecting the Consultant, the skill and ability of the entity or person performing the services is a key component of the selection criteria. The City will select a Consultant based on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. Cost will be only one factor in determining the selection. Consultants will be evaluated and selected based upon experience, price and schedule. Consultants should address these criteria in their proposal. General Conditions Financial Advisors are advised to become familiar with all conditions, instructions, and specifications of this RFP. By submitting a proposal, Consultant represents and warrants that it has thoroughly examined and is familiar with work required under this RFP, that Consultant has conducted such additional investigation as it deems necessary and convenient, that Consultant is capable of providing the services requested by the City in a manner that meets the City s objectives and specifications as outlined in this RFP, and that Consultant has reviewed and inspected all materials submitted in response to this RFP. Once the consultant has been selected, a failure to have read the conditions, instructions, and specifications herein shall not be cause to alter the contract or for Consultant to request additional compensation. Non-Discrimination Requirement By submitting a proposal, the Financial Advisors represents that it and its subsidiaries do not and will not discriminate against any employee or applicant for employment on the basis of race, religion, sex, color, national origin, sexual orientation, ancestry, marital status, physical condition, pregnancy or pregnancyrelated conditions, political affiliations or opinion, age, or medical condition. Conditions of Acceptance This RFP does not commit the City to award a contract, to pay any costs incurred in the preparation of a proposal for this RFP, or to procure or contract for any services. The City reserves the right to waive any

5 irregularities or informalities contained within this RFP, and/or reject any or all proposals received as a result of this request; negotiate with any qualified source or to cancel the RFP in part or whole. All proposals and material submitted will become the property of the City of South San Francisco and will not be deemed confidential or proprietary. The City of South San Francisco reserves the right to award in whole or in part, by item or group of items, by section or geographic area, when such action serves the best interests of the City. The City and Contractor may agree to add additional areas to the contract (Attachment D) by mutual agreement at a later date. The City may elect to stop work at any time in the contract and will pay for work completed to that point on a time and material basis. Proposal Submittal Procedures Proposals are required in two formats: five (5) printed copies and one (1) electronic copy by . Complete written proposals and electronic ( ed) copies must be received no later than 4:00 p.m. (PST) on February 19, 2016 to the address below. Written proposals must be submitted in marked sealed envelopes. Proposals will not be accepted after this deadline. Late proposals will not be accepted, and will be returned unopened, regardless of postmark. Prospective Proposers are responsible for having proposals deposited on time at the place specified and assume all risk of late delivery, including any delay in the mail or handling of the mail by the U.S. Postal Service. Faxed proposals will not be accepted. City of South San Francisco Office of the City Clerk 400 Grand Ave. South San Francisco, CA RE: Financial Advisor The electronic copy of the proposal may be sent to: richard.lee@ssf.net Inquiries Questions about this RFP must be directed in writing by February 12, 2016, to: Richard Lee, Director of Finance richard.lee@ssf.net The City will answer all written questions received within the prescribed deadline by no later date than February 15, From the date of this RFP is issued until a firm or entity is selected and the selection is announced, firms or public entities are not allowed to communicate outside the process set forth in this RFP with any City

6 employee other than the contracting officer listed above regarding this RFP. The City reserves the right to reject any proposal for violation of this provision. No questions other than written will be accepted, and no response other than written will be binding upon the City.