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Home My WebLink About09/02/1997, C-7 - REQUEST FOR PROPOSAL FOR FINANCIAL ADVISOR SERVICES council �D� �� j acEnaa nEpout CITY OF SAN LUIS OBISPO FROM: Bill Statler,Director of Finance 114 k Prepared By: Linda Asprion,Revenue Manager+4�41 SUBJECT: REQUEST FOR PROPOSAL FOR FINANCIAL ADVISOR SERVICES CAO RECOMN ENDATION Approve distribution of the Request for Proposal(RFP)for financial advisor services. DISCUSSION Background On March 2, 1988, the Council approved the selection of Evensen Dodge as the City's financial advisor following an extensive RFP evaluation process. The agreement with Evensen Dodge was renewed in April, 1993 and again in April, 1996. In addition to preparing the "Comprehensive Financial Management Plan: 1989-2000",Evensen Dodge has served as the City's financial advisor for five financings: the 1988 Water fund Certificates of Participation, the General Fund 1990 Certificates of Participation, the 1993 Water Revenue Bonds, the 1994 Refunding of the 1986 Lease Revenue Bonds, and the General Fund 1996 Lease Revenue Bonds. In addition to these specific financings, Evensen Dodge has provided on-going financial advice and presentations to the City with notable examples being seismic retrofit and water desalination. Evensen Dodge has provided outstanding service to the City at a very competitive cost. However, the City has not solicited an RFP for financial advisor services for almost 10 years, and as we go forward with financing of key capital projects in the 1997-99 Financial Plan- seismic retrofit,water supply projects, youth athletic fields, parking facility expansion, and possibly refinancing the 1988 and 1990 Certificates of Participation - it is timely for us to issue an RFP for financial advisor services. Why does the City need a financial advisor? Financial advisors provide two key services: ■ Specific assistance on a case-by-case basis for project financings. These require specific marketing and technical skills that cannot reasonably be provided by staff. ■ On-going advice and assistance on the best approach in meeting the City's capital financing needs. This assistance is particularly beneficial to the City in preparing early assessments of our financing options. 67-1 Council Agenda Report- Request for Proposal for Financial Advisor Services Page 2 What firms will be included on the Proposer's List? We obtained a copy of the National Association of Independent Public Finance Advisors membership directory for May, 1997 and included all five firms located within California on the Proposer's list. Additionally, we included our current provider, Evensen Dodge and two other firms expressing interest in proposing to the City for financial advisor services. How will the RFPs be evaluated? Proposals will be evaluated by a review committee consisting of the Assistant City Administrative Officer, the Director of Finance, the Accounting Manager, and the Revenue Manager based on the following criteria: ■ Understanding of the work required by the City ■ Quality and responsiveness of the proposal ■ Demonstrated competence and professional qualifications necessary for satisfactory performance of the work required by the City ■ Recent experience in successfully performing similar services ■ Proposed approach in completing the work ■ References ■ Background and related experience of the specific individuals to be assigned to this project ■ Proposed compensation The proposal term is for three years with an option to renew for another three years. While we expect to use the selected fine as our financial advisor on all financings over the term of the agreement,this is not an"exclusive agreement". Based upon the proposals submitted, the Committee will select the top financial advisor firms to be interviewed. The Committee will then return to the Council with a final recommendation. FISCAL IMPACT The method and percent of compensation will be reviewed as a part of the RFP process. Typically the financial advisor's compensation is entirely contingent on the completion of a debt issuance and is payable solely from the proceeds of the issuance. However, if there is significant involvement by the financial advisor in a City project not resulting in a debt issue, there may be some alternative compensation requirements. ALTERNATIVES Do not issue an RFP and continue using Evensen Dodge as the City's financial advisor. While Evensen Dodge is a long-standing firm employing individuals with experience, integrity, and excellent technical abilities, the City has not issued an RFP for financial advisory services since 1988. It is just good business practice for the City to periodically solicit proposals for financial advisor services. As such, staff does not recommend this alternative. e r-z Council Agenda Report-Request for Proposal for Financial Advisor Services Page 3 SUMMARY As the City goes forward with financing key capital projects in the 1997-99 Financial Plan, we will require the services of a financial advisor. In 1988, Evensen Dodge was selected as the City's financial advisor and has proven themselves as a trustworthy firm. However, due to the amount of time since our last comprehensive evaluation of financial advisor services, we recommend issuing an RFP at this time. ATTACHMENT Proposer's List ON FILE IN THE COUNCIL OFFICE Request for Proposal for Financial Advisor Services 67-3 Attachment PROPOSER'S LIST FINANCIAL ADVISOR SERVICES-SPECIFICATION NO. 98-71 American Government Financial Services Company Public Financial Management Mr. Robert W. Doty,President Mr.Keith Curry,Managing Director 2500 Marconi Avenue,Suite 330A 660 Newport Center Drive, Suite 750 Sacramento, CA 95821-4856 Newport Beach, CA 92660-6408 Telephone#: 916-483-7378 Telephone#: 714-721-9422 Fax#: 916-483-7565 Fax#: 714-721-9437 Bartle Wells Associates Kellig,Northcross,Nobriga Mr. Tom Gaffney,Principal Mr. Ray Nobriga,President 1636 Bush Street 1333 Broadway, Suite 1000 San Francisco,CA 94109 Oakland,CA 94612 Telephone#: 415-775-3113 Telephone#: 510-839-8200 Fax#: 415-775-4123 Fax#: 510-208-8282 Evensen Dodge Inc. Mr. William Reynolds 2750 Bellflower Boulevard,Suite 201 Long Beach,CA 90815 Telephone#: 562-429-2121 Fax#: 562496-3773 Fieldman,Rolapp&Associates Mr. Timothy Schaefer 2100 Main Street, Suite 210 Irvine, CA 92614 Telephone#: 714-660-8500 Fax#: 714-474-8773 Kadie Jensen Johnson Bodnar Mr. Carl D. Kadie and Mr. Ernest Bodnar,Partners 7801 Mission Center court, Suite 200 San Diego, CA 92108 Telephone#: 619-296-1450 Fax#: .619-296-3783 Reiter Lowry Consultants Mr. Glenn Reiter and Mr. Gregg Lowry,Partners 11417 West Bernardo Court San Diego, CA 92127 Telephone#: 619-675-4400 Fax#: 619-675-9424