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Home My WebLink About09/02/1997, C-8 - REQUEST FOR PROPOSAL FOR BOND COUNSEL SERVICES council m266"°� j acEnaa Report ®N e•8 C I T Y OF SAN LUIS OBISPO FROM: Bill Statler,Director of Finance Prepared By: Linda Aspnon,Revenue ManagerpA I SUBJECT: REQUEST FOR PROPOSAL FOR BOND COUNSEL SERVICES CAO RECOMMENDATION Approve distribution of the Request for Proposal(RFP) for bond counsel services. DISCUSSION Background On November 1, 1988, the Council approved the selection of Jones, Hall, Hill & White as the City's bond counsel following an extensive RFP evaluation process: The agreement with Jones, Hall, Hill & White was renewed in April, 1993 and again in April, 1996. Jones,Hall, Hill & White has served as the City's bond counsel 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. Jones, Hall, Hill & White has provided outstanding service to the City at a very competitive cost. However, the City has not solicited an RFP for bond counsel 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 bond counsel services. Why does the City need a bond counsel? Bond counsel provides a number of specific technical legal services relating to case-by-case project financings that cannot reasonably be provided by staff. These services include but are not limited to the following: ■ Examining the applicable law relating to the financings to be accomplished from the proceeds. ■ Preparing all legal proceedings necessary for the authorization and delivery of the issuance. ■ Applying to the Internal Revenue Service for any pilings necessary to assure tax-exempt status. Council Agenda Report-Request for Proposal for Bond Counsel Services Page 2 ■ Advising the City on registration requirements of the Securities Exchange Commission or California Corporations Commission. ■ Examining any official statement or other document as to the sufficient description of the debt issue. ■ Approving the validity of the financing agreements and the execution and delivery of the debt issuance. Additionally, bond counsel is available to provide ongoing legal advice on the City's capital financing needs. What firms will be included on the Proposer's List? We obtained a copy of the Bond Buyer's Municipal Marketplace listing of bond counsels within the State and included nine firms from the listing which have expressed interest in proposing to the City for bond counsel services. Additionally,we included our current provider, Jones, Hall, Hill & White and two other firms expressing interest in proposing to the City for bond counsel 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 firm as our bond counsel 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 bond counsel firms to be interviewed. The Committee will then return to the Council with a final recommendation. FISCAL IlWPACT The method and percent of compensation will be reviewed as a part of the RFP process. Typically the bond counsel'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 Council Agenda Report-Request for Proposal for Bond Counsel Services Page 3 the bond counsel 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 Jones,Hall,Hill& White as the City's bond counsel. While Jones, Hall, Hill & White is a long-standing firm employing individuals with experience, integrity, and excellent technical abilities,the City has not issued an RFP for bond counsel services since 1988. It is just good business practice for the City to periodically solicit proposals for bond counsel services. As such, staff does not recommend this alternative. SUMMARY As the City goes forward with financing key capital projects in the 1997-99 Financial Plan, we will require the services of a bond counsel. In 1988, Jones, Hall, Hill & White was selected as the City's bond counsel and has proven themselves as a trustworthy firm. However, due to the amount of time since our last comprehensive evaluation of bond counsel services, we recommend issuing an RFP at this time. ATTACHMENT Proposer's List ON FILE IN THE COUNCIL OFFICE Request for Proposal for Bond Counsel Services L'�-3 Attachment -PROPOSER'S LIST BOND COUNSEL SERVICES-SPECIFICATION NO. 98-72 Jones,Hall,Hill&White Foley Lardner Weissberg&Aronson Mr. Charles Adams,Vice President Mr. Mark Schieble Four Embarcadero Center, Suite 1950 One Maritime Plaza, Suite 600 San Francisco,CA 94111 San Francisco,CA 94111-3404 Telephone#: 415-391-5780 Telephone#: 415-434-4484 Fax#: 415-391-5784 Fax#: 415-434-4507 Latham&Watkins O'Melveny&Myers Mr.John Kenny Mr. Daniel Deshon 505 Montgomery Street, suite 1900 275 Battery Street,Embarcadero Center West San Francisco,CA 94111-2586 San Francisco, CA 94111 Telephone#: 415-391-0600 Telephone#: 415-984-8700 Fax#: 415-391-8095 Fax#: 415-984-8701 Cox,Castle&Nicholson,LLP Orrick,Herrington& Sutcliffe Mr. Lewis Feldman Mr.Richard Salladin 2049 Century Park East,28'h Floor 400 Sansome Street,Federal Reserve Bldg. Los Angeles, CA 90067 San Francisco,CA 94111 Telephone#: 310-277-4222 Telephone#: 415-392-1122 Fax#: 310-277-7889 Fax#: 415-773-5759 Bowie,Arneson,Kadi,Wiles&Giannone Keck,Mahin&Cate Mr. Alexander Bowie Mr. Edsell Eady,Jr. 4920 Campus Drive One Maritime Plaza,23'd Floor Newport Beach, CA 92660 San Francisco, California 94111-3577 Telephone#: 714-851-1300 Telephone#: 415-392-7077 Fax#: 714-851-2014 Fax#: 415-392-3969 Stradling,Yocca, Carlson&Rauth Brown,Diven&Hentschke Mr. Fritz Stradling Mr. F. MacKenzie Brown 660 Newport Center Drive, Suite 1600 12770 High Bluff Drive, Suite 240 Newport Beach, CA 92660-6401 San Diego, CA 92130 Telephone#: 714-725-4000 Telephone#: 619-456-1915 Fax#: 714-725-4100 Fax#: 619-259-0292 Kutak Rock Mr. Sam Balisy 117 E. Colorado Boulevard, Suite 210 Pasadena, CA 91105-1952 Telephone#: 818-432-1630 Fax#: 818-432-1614 Brown&Wood Mr. Eric Tashman 555 California Street, Suite 5000 San Francisco,CA 941041715 Telephone#: 415-772-1200 Fax#: 415-397-4621