HomeMy WebLinkAboutRFP - P711 FINANCIAL ADVISOR SERVICESCity of Fort Collins
Adm-_-tstrative Services
Purchasing Division
REQUEST FOR PROPOSAL
CITY OF FORT COLLINS
FINANCIAL ADVISOR SERVICES
PROPOSAL NO. P-711
PROPOSAL DATE: 3:00 p.m. (our clock) MARCH 24, 1999
256 W. Mountain Avenue • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6775 • FAX (970) 221-6707
the termination date contained in said notice unless otherwise agreed in writing by the parties.
All notices provided under this Agreement shall be effective when mailed, postage prepaid and
sent to the following addresses:
If Professional: If City: With Copy To:
In the event of any'such early termination by the City, the Professional shall be paid for services
rendered prior to the date of termination, subject only to the satisfactory performance of the
Professional's obligations under this Agreement. Such payment shall be the Professional's sole
right and remedy for such termination.
5. Design Project Indemnity and Insurance Responsibility. The Professional shall
be responsible for the professional quality, technical accuracy, timely completion and the
coordination of all services rendered by the Professional, including but not limited to designs,
plans, reports, specifications, and drawings and shall, without additional compensation,
promptly remedy and correct any errors, omissions, or other deficiencies. The Professional
shall indemnify, save and hold harmless the City, its officers and employees in accordance with
Colorado law, from all damages whatsoever claimed by third parties against the City; and for
the City's costs and reasonable attorneys fees, arising directly or indirectly out of the
Professional's performance of any of the services furnished under this Agreement. The
Professional shall maintain commercial general liability insurance in the amount of $500,000
combined single limits, and errors and omissions insurance in the amount of
6. Compensation. [Use this paragraph or Option 1 below.] In consideration of the
services to be performed pursuant to this Agreement, the City agrees to pay Professional a
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fixed fee in the amount of ($ ) plus reimbursable direct costs. All such fees and
costs shall not exceed ($). Monthly partial payments based upon the
Professional's billings and itemized statements are permissible. The amounts of all such partial
payments shall be based upon the Professional's City -verified progress in completing the
services to be performed pursuant hereto and upon the City's approval of the Professional's
actual reimbursable expenses. Final payment shall be made following acceptance of the work
by the City. Upon final payment, all designs, plans, reports, specifications, drawings, and other
services rendered by the Professional shall become the sole property of the City.
6. Compensation. [Option 1] In consideration of the services to be performed
pursuant to this Agreement, the City agrees to pay Professional on a time and reimbursable
direct cost basis according to the following schedule:
Hourly billing rates:
Reimbursable direct costs:
with maximum compensation (for both Professional's time and reimbursable direct costs) not to
exceed ($ ). Monthly partial payments based upon the Professional's billings and
itemized statements of reimbursable direct costs are permissible. The amounts of all such
partial payments shall be based upon the Professional's City -verified progress in completing the
services to be performed pursuant hereto and upon the City's approval of the Professional's
reimbursable direct costs. Final payment shall be made following acceptance of the work by
the City. Upon final payment, all designs, plans, reports, specifications, drawings and other
services rendered by the Professional shall become the sole property of the City.
7. City Representative. The City will designate, prior to commencement of work,
its project representative who shall make, within the scope of his or her authority, all necessary
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and proper decisions with reference to the project. All requests for contract interpretations,
change orders, and other clarification or instruction shall be directed to the City Representative.
8. Project Drawings. [Optional] Upon conclusion of the project and before final
payment, the Professional shall provide the City with reproducible drawings of the project
containing accurate information on the project as constructed. Drawings shall be of archival
quality, prepared on stable mylar base material using a non -fading process to prove for long
storage and high quality reproduction.
9. Monthly Report. Commencing thirty (30) days after the date of execution of this
Agreement and every thirty (30) days thereafter, Professional is required to provide the City
Representative with a written report of the status of the work with respect to the Scope of
Services, Work Schedule, and other material information. Failure to provide any required
monthly report may, at the option of the City, suspend the processing of any partial payment
request.
10. Independent Contractor. The services to be performed by Professional are
those of an independent contractor and not of an employee of the City of Fort Collins. The City
shall not be responsible for withholding any portion of Professional's compensation hereunder
for the payment of FICA, Workers' Compensation, other taxes or benefits or for any other
purpose.
11. Personal Services. It is understood that the City enters into this Agreement
based on the special abilities of the Professional and that this Agreement shall be considered
as an agreement for personal services. Accordingly, the Professional shall neither assign any
responsibilities nor delegate any duties arising under this Agreement without the prior written
consent of the City.
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12. Acceptance Not Waiver. The City's approval of drawings, designs, plans,
specifications, reports, and incidental work or materials furnished hereunder shall not in any
way relieve the Professional of responsibility for the quality or technical accuracy of the work.
The City's approval or acceptance of, or payment for, any of the services shall not be construed
to operate as a waiver of any rights or benefits provided to the City under this Agreement.
13. Default. Each and every term and condition hereof shall be deemed to be a
material element of this Agreement. In the event either party should fail or refuse to perform
according to the terms of this agreement, such party may be declared in default.
14. Remedies. In the event a party has been declared in default, such defaulting
party shall be allowed a period of ten (10) days within which to cure said default. In the event
the default remains uncorrected, the party declaring default may elect to (a) terminate the
Agreement and seek damages; (b) treat the Agreement as continuing and require specific
performance; or (c) avail himself of any other remedy at law or equity. If the non -defaulting
party commences legal or equitable actions against the defaulting party, the defaulting party
shall be liable to the non -defaulting party for the non -defaulting party's reasonable attorney fees
and costs incurred because of the default.
15. Binding Effect. This writing, together with the exhibits hereto, constitutes the
entire agreement between the parties and shall be binding upon said parties, their officers,
employees, agents and assigns and shall inure to the benefit of the respective survivors, heirs,
personal representatives, successors and assigns of said parties.
16. Law/Severability. The laws of the State of Colorado shall govern the
construction, interpretation, execution and enforcement of this Agreement. In the event any
provision of this Agreement shall be held invalid or unenforceable by any court of competent
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jurisdiction, such holding shall not invalidate or render unenforceable any other provision of this
Agreement.
17. Special Provisions. [Optional] Special provisions or conditions relating to the
services to be performed pursuant to this Agreement are set forth in Exhibit "C", consisting of
( ) page[s], attached hereto and incorporated herein by this reference.
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THE CITY OF FORT COLLINS, COLORADO
By:
John F. Fischbach
City Manager
By:
James B. O'Neill II, CPPO
Director of Purchasing & Risk Management
DATE:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Assistant City Attorney
[Insert Professional's name] or
[Insert Partnership Name] or
[Insert individual's name]
Doing business as [insert name of business]
By:
Title:
CORPORATE PRESIDENT OR VICE PRESIDENT
Date:
ATTEST:
(Corporate Seal)
Corporate Secretary
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EXHIBIT C
YEAR 2000 COMPLIANCE CERTIFICATION AND INDEMNITY
Section 1. Contractor hereby certifies that all information resources or
systems to be provided or used in connection with the performance of this
Agreement are "Year 2000 Compliant", except as otherwise expressly described
in Section 2, below. "Year 2000 Compliant" shall mean that information
resources meet the following criteria:
a. Data structures (e.g., databases, data files) provide 4-digit date
century recognition. For example, "1996" provides date century recognition;
"96" does not.
b. Stored data contains date century recognition, including (but not
limited to) data stored in databases and hardware/device internal system
dates.
C. Calculations and programs logic accommodate both same century and
multi -century formulas and date values. Calculations and logic include (but
are not limited to) sort algorithms, calendar generation, event recognition,
and all processing actions that use or produce date values.
d. Interfaces (to and from other systems or organizations) prevent
non -compliant dates and data from entering any state system.
e. User interfaces (i.e., screens; reports; etc.) accurately show 4
digit years.
f. Year 2000 is correctly treated as a leap year within all
calculation and calendar logic.
Section 2. Contractor has identified the following information resources or
systems that will be provided or used in connection with the performance of
this Agreement that are not, or will not by December 1, 1998, be Year 2000
Compliant:
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Section 3.
a. Contractor hereby certifies that the instances of information
resources or systems not Year 2000 Compliant identified in Section 2, above,
will be Year 2000 Compliant no later than December 1, 1998, and that
Contractor shall notify the City of the status of Year 2000 Compliance for
such resources or systems upon the earlier of the date Year 2000 Compliance is
achieved or on June 30, 1999.
b. Contractor hereby certifies that the instances of information
resources or systems identified in Section 2, above, as not Year 2000
Compliant, and for which Year 2000 Compliance is or will not be achieved by
December 1, 1998, are not related to and do not impair the performance by
Contractor of the terms of this Agreement, and do not produce new non-
compliant information resources or systems.
Section 4. Contractor agrees to notify the City immediately of any
information resources or systems that are not Year 2000 Compliant upon
encountering the same in connection with the performance of the Agreement,
including without limitation any information resources or systems in use by
Contractor in the performance of the Agreement or information resources or
systems of the City regarding which Contractor obtains information in the
course of its performance of the Agreement.
Section 5. Contractor agrees to permit examination, by the City or agents
thereof, of any and all information resources and systems in use in connection
with this Agreement, and related Year 2000 Compliance implementation plans, in
order to evaluate Year 2000 Compliance and potential implications of the same
for the City and for performance of the Agreement.
Section 6. The Contractor shall indemnify and hold harmless the City, and its
officers, agents and employees, from and against all claims, damages, losses,
and expenses, including attorneys fees, arising out of or resulting from the
Contractor's failure to disclose instances of information resources or systems
that are not Year 2000 Compliant, or failure to comply with the terms of this
Exhibit C.
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REQUEST FOR PROPOSAL
CITY OF FORT COLLINS
FINANCIAL ADVISOR SERVICES
PROPOSAL NO. P-711
The City of Fort Collins is requesting proposals from firms to provide financial advisory services
for the issuance of approximately $10 million of storm water utility enterprise revenue bond over
the next 4 months. Additionally, the firm selected may assist the City in other aspects of its
financial management. The Financial Officer expects that the City will finance other capital
projects in the near future through lease -purchase transaction, possibly structured as
certificates of participation.
Written proposals, five (5) will be received at the City of Fort Collins' Purchasing Division, 256
West Mountain Avenue, Fort Collins, Colorado 80521. Proposals will be received before 3:00
p.m. (our clock), March 24, 1999. Proposal No. P-711.
Questions concerning the scope of the project should be directed to the Project Manager, Alan
Krcmarik, Finance Director (970) 221-6788.
Questions regarding proposals submittal or process should be directed to James B. O'Neill II,
CPPO, Director of Purchasing and Risk Management (970) 221-6775.
Sales Prohibited/Conflict of Interest: No officer, employee, or member of City Council, shall
have a financial interest in the sale to the City of any real or personal property, equipment,
material, supplies or services where such officer or employee exercises directly or indirectly any
decision -making authority concerning such sale or any supervisory authority over the services
to be rendered. This rule also applies to subcontracts with the City. Soliciting or accepting any
gift, gratuity favor, entertainment, kickback or any items of monetary value from any person who
has or is seeking to do business with the City of Fort Collins is prohibited.
Collusive or sham proposals: Any proposal deemed to be collusive or a sham proposal will be
rejected and reported to authorities as such. Your authorized signature of this proposal assures
that such proposal is genuine and is not a collusive or sham proposal.
The City of Fort Collins reserves the right to reject any and all proposals and to waive any
irregularities or informalities.
Sincerely, f�� p
Zlam/ `, —�
Ja es B. O'Neill II, CPPO
D' ector of Purchasing & Risk Management
1. REQUEST FOR QUALIFICATIONS
The Financial Officer of the City of Fort Collins (the "City") is requesting proposals from firms to
provide financial advisory services for the issuance of approximately $10 million of storm water
utility enterprise revenue bond over the next 4 months. Additionally, the firm selected may
assist the City in other aspects of its financial management. The Financial Officer expects that
the City will finance other capital projects in the near future through lease -purchase transaction,
possibly structured as certificates of participation.
2. SERVICES TO BE PERFORMED AND ENGAGEMENT PERIOD
Type of Debt Financing in the Agreement
Debt financing may include, but not be limited to the following:
Revenue bonds for types of projects specifically authorized under current
Colorado statutes will be used as required.
The city may also issue Certificates of Participation ("COPs") for the undertaking
of several new projects, including but not limited to:
Downtown Streetscape Improvements $ 1,500,000
Golf Course Irrigation & Improvements 2,500,000
2. Period of Engagement
The engagement period will be in effect from selection through December 31,
1999. The term may be extended for additional one year periods not to exceed
five years.
3. SCOPE OF SERVICES
1. To provide general financial information and planning concerning bonding plans,
long-range planning, rate requirements, new legislation, and other information
which may be desirable to the Financial Officer.
2. To assist the Financial Officer, its staff, and professional consultants, in
evaluating alternatives, their costs, and devise and recommend for City approval,
a financial plan to cover any proposed revenue bonds or COPs. Such plan shall
include a maturity schedule and other terms and conditions, such as options of
prior payment and the like, as well, in the Financial Service Advisor's opinion,
result in the issuance of the revenue bonds or COPs under terms and conditions
most advantageous to the City consistent with a minimum effective interest rate.
3. With the assistance and guidance of a firm of recognized municipal bond
attorneys, to be retained by the City, the Financial Service Advisor will assist the
Financial Officer in and supervise the steps necessary to be taken for the legal
authorization and issuance of the revenue bonds or COPS and their final
delivery. In this regard, it is to be understood that the City will retain a firm of
recognized municipal bond attorneys, whose legal service shall also include
rendition of an unqualified approving opinion as to the legality of the bonds.
4. The Financial Service Advisor will inform, advise and recommend to the
Financial Officer regarding other consulting services which may be necessary to
successfully market the bonds or COPS, including the necessity of rating from
Fitch's, Moody's Investors Services or Standard & Poor's Corporation. Prepare
information necessary for presentation to the bond rating agencies.
5. The Financial Service Advisor will consult, assist and provide information to the
bond attorneys for their preparation of the necessary orders, resolution, notices
and certificates; and upon preparation thereof, will submit such documents to the
City's governing body for appropriate action.
6. When bonds or COPs are ready to be issued, the Financial Services Advisor
will assist the Financial Officer in the preparation of the City's bonds or COPs for
an advertised public sale. The Financial Service Advisor will:
a. Advise the Financial Officer of current bond market conditions,
forthcoming Municipal issues and other general information and
economic data which might normally be expected to influence interest
rates or bidding conditions so that the date for the sale of the bonds
COPS can be set at a time which, in the Financial Advisor's opinion, will
be favorable.
b. Attend the sale of the COPs, and assist in the award and delivery of the
bonds to the successful bidder.
8. Provide a written, post -transaction assessment of any financing(s) undertaken.
9. Assist the City in ensuring compliance with Rule 15c2-12 of the Securities and
Exchange Commission as amended.
10. Conduct a competitive sale of revenue bonds or COPs.
11. The City at its discretion can go from a public to a negotiated sale if conditions
warrant.
12. The firm acting as the Financial Advisor will not be permitted to underwrite these
issues.
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4. PROPOSAL FORMAT AND CONTENT
Individuals or firms seeking to provide financial advisor services must have prior experience as
a financial advisor or senior managing underwriter on a utility revenue bond or lease -purchase
COP financing of at least $5,000,000.
Firms submitting a qualifications proposal must respond, in sequence, to the following requests
for information:
Overview: Briefly describe, in two pages or less, the nature of the firm's business as it relates
to providing financial advisory services to municipalities, particularly for utility enterprise
revenue bonds and lease -purchase transactions financed by COPs
Ability and Experience: State in one page or less, why your firm is well qualified to provide
the services outlined in the Scope of Services section above and your firm's experience in
providing such services. In citing prior engagements, indicate the role and responsibilities your
firm undertook (financial advisor, senior managing underwriter, etc.). Identify the individual from
the firm who had principal responsibility for the financing. Identify at least three individuals from
different entities with phone numbers who can be contacted to serve as references.
Approach: Based on your understanding of the Scope of Services, describe the general
framework the firm would use to analyze the financing options available to the City and discuss
the key factors to be evaluated. In addition:
Identify and discuss any services or methods of approach which the firm believes to be
either unique or outstanding or is recognized as giving your firm a superior competitive
advantage.
Identify the firm's position as to (a) requesting a rating for the bonds or certificates, and
(b) seeking insurance. Describe the key topics upon which you would focus in
conducting a rating agency or insurance company presentation.
Staffing: Identify the specific individuals who would be assigned to work with the City and
specify which individual would be the principal contact. Identify the nature of the work each
individual would perform, together with proposed time commitments and their related
professional knowledge and experience.
Office Location: Identify the location of the office from which the individuals identified in the
staff item above will be operating.
Disclosure: Disclose any relationship which could create or appear to create a potential
conflict of interest if your firm is selected.
To facilitate the review process, the City asks that each firm keep its qualification statement
concise and limit the submittal to 7 pages or less. Every page of your qualification statement,
excluding cover and divider pages, must be numbered.
The written proposal and four (4) copies should be submitted along with appropriate supporting
documentation including answers to the following:
Outline the procedures your firm would use to provide the services as
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listed above. The City is interested in many types of innovative financing which
should be established to achieve the highest possible quality ratings on each
issue from Fitch's, Moody's and Standard and Poor's.
2. Provide a concise history of your firm.
3. The City requires that the proposed financial adviser would be completely
independent and work in an unbiased manner. Please explain any agreements
that your firm would have that may conflict with the needs of the City or prevent
full disclosure.
4. List the dollar volume of your underwritings in the tax exempt market for
the years 1996, 1997, 1998 and 1999 to date.
5. Provide complete information including background, overall abilities, and
experience for the person(s) who would serve as the Advisor. The City needs
this information to include consulting on tax exempt debt issues with special
emphasis on the various types of instruments listed above.
6. Fees and Expenses:
Propose a flat dollar amount fee respective to each financing for your firm to
provide financial advisory services. Indicate whether any economies of scale will
be obtained if more than one new issues is completed. Estimate and commit to
a not -to -exceed dollar amount for each respective transaction not included in the
flat fee quoted.
Fees will be billed after closing of any transaction(s). If a transaction is not
consummated, the City will not be responsible to pay any fees or expenses
related to that transaction. Identify all fees for other services that may be
required to complete the transaction.
7. Include all other information or data which may uniquely qualify your firm
in serving the City as its financial adviser.
List all clients for which your firm acted as financial advisor over the past three years and those
which will provide a reference. The proposal should include the following statement and
signature form:
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"We propose to furnish a consultant in accordance with the terms, conditions, and
specifications detailed in the City's Request for Proposal and in our accompanying written
response without exception, deletion, or qualification."
Company Name
Business Address
RFP No. P-711 Date of Proposal:
Signed by
Signed by
Telephone No.
(Please print or type name and title)
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REVIEW AND ASSESSMENT
Professional firms will be evaluated on the following criteria. These criteria will be the basis for
review of the written proposals and interview session.
The rating scale shall be from 1 to 5, with 1 being a poor rating, 3 being an average rating, and
5 being an outstanding rating.
WEIGHTING
FACTOR QUALIFICATION STANDARD
2.0 Scope of Proposal Does the proposal show an understanding of the
project objective, methodology to be used and
results that are desired from the project?
2.0 Assigned Personnel Do the persons who will be working on the project
have the necessary skills? Are sufficient people of
the requisite skills assigned to the project?
1.0 Availability Can the work be completed in the necessary time?
other qualified personnel available to assist in
meeting the project Can the target start and
completion dates be met? Are schedule if
required? Is the project team available to attend
meetings as required by the Scope of Work?
1.0 Motivation Is the firm interested and are they capable of doing
the work in the required time frame?
2.0 Cost and Work Hours Do the proposed cost and work hours compare
favorably with the project Manager's estimate? Are
the work hours presented reasonable for the effort
required in each project task or phase?
2.0 Firm Capability Does the firm have the support capabilities the
assigned personnel require? Has the firm done
previous projects of this type and scope?
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PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT made and entered into the day and year set forth below, by and
between THE CITY OF FORT COLLINS, COLORADO, a Municipal Corporation, hereinafter
referred to as the "City" and , [insert either a corporation, a partnership or an individual,
doing business as ], hereinafter referred to as "Professional'.
WITNESSETH:
In consideration of the mutual covenants and obligations herein expressed, it is agreed
by and between the parties hereto as follows:
1. Scope of Services. The Professional agrees to provide services in accordance
with the scope of services attached hereto as Exhibit "A", consisting of () page[s],
and incorporated herein by this reference.
2. The Work Schedule. [Optional] The services to be performed pursuant to this
Agreement shall be performed in accordance with the Work Schedule attached hereto as
Exhibit "B", consisting of ( ) page[s], and incorporated herein by this reference.
3. Time of Commencement and Completion of Services. The services to be
performed pursuant to this Agreement shall be initiated within () days following
execution of this Agreement. Services shall be completed no later than . Time is of the
essence. Any extensions of the time limit set forth above must be agreed upon in writing by the
parties hereto.
4. Early Termination by Citv. Notwithstanding the time periods contained herein,
the City may terminate this Agreement at any time without cause by providing written notice of
termination to the Professional. Such notice shall be delivered at least fifteen (15) days prior to
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