HomeMy WebLinkAboutRFP - P936 FINANCIAL ADVISORY INVESTMENT BANKING SERVICE (5)2/9/00
REQUEST FOR PROPOSAL
CITY OF FORT COLLINSP936 Financial Advisory, Investment Banking Consulting Services
Written proposals, nine (9) copies will be received at the City of Fort Collins' Purchasing
Division, 215 North Mason St., 2nd floor, Fort Collins, Colorado 80524. Proposals will be
received before 3:00 p.m. (our clock), May 19, 2004. Proposal No. P-936. If delivered, they are
to be sent to 215 North Mason Street, 2nd Floor, Fort Collins, Colorado 80524. If mailed, the
address is P.O. Box 580, Fort Collins, 80522-0580.
Questions concerning the scope of the project should be directed to Finance Director, Alan
Krcmarik (970) 221-6772.
Questions regarding proposals submittal or process should be directed to James B. O’Neill II,
CPPO, FNIGP (970) 221-6775.
A copy of the Proposal may be obtained as follows:
1. Call the Purchasing Fax-line, 970-416-2033 and follow the verbal instruction to
request document #3936.
2. Download the Proposal/Bid from the BuySpeed Webpage,
https://secure2.fcgov.com/bso/login.jsp.
3. Come by Purchasing at 215 North Mason St., 2nd floor, Fort Collins, and request
a copy of the Bid.
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,
James B. O'Neill II, CPPO, FNIGP
Director of Purchasing & Risk Management
2/9/00
P936
Financial Advisory, Investment Banking Consulting Services
I. REQUEST FOR QUALIFICATIONS
The Financial Officer of the City of Fort Collins (the “City”) is requesting proposals from firms to
provide financial advisory services or investment banking services or both for approximately $55
million of tax-exempt financial transactions over the next six months. Additionally, the financial
firm(s) selected by the City may be asked to assist the City in other aspects of its debt
management and leasing programs. The City may use the selected firm(s) for transactions over
the next 5 years. The Financial Officer expects the City will finance other capital projects in the
near future primarily through lease-purchase or similar transactions, probably structured as
certificates of participation.
II. SERVICES TO BE PERFORMED AND ENGAGEMENT PERIOD
Types of Financial Transactions subject to the Agreement:
Debt financing may include, but not be limited to the following:
o Revenue bonds for types of projects specifically authorized under current
Colorado statutes will be used when available.
o Downtown Development Authority Tax
Increment Revenue Bonds $ 6,000,000
The City will also be using lease-purchase (Certificates of Participation (“COPs”)) for the
undertaking of several new projects*, including but not limited to:
Police Services Building $ 28,000,000
Open Space Acquisition $ 15,000,000
Transportation De-icing facility $ 1,300,000
Southeast Fort Collins Branch Library $ 5,000,000
*All amounts are approximations and are subject to change. It is possible that not all
transactions will be consummated.
Period of Engagement
The engagement period will be in effect from selection for one year. The term may be extended
for up to four additional one-year terms.
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III. SCOPE OF SERVICES
To provide general financial information and planning concerning tax-exempt financing
plans, long range planning, rate requirements, new legislation, and other information
which may be desirable to the Financial Officer.
To assist the Financial Officer, members of the Finance Department, and professional
consultants, in evaluating alternatives, their costs, and devising and recommending for
City Council approval, a financial plan to cover any proposed revenue bonds or lease
purchase Certificates of Participation (COPs). Such plan shall include a maturity
schedule and other terms and conditions, such as options of prior payment and the like,
that will, in the selected firm’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.
With the assistance and guidance of a firm of recognized municipal bond attorneys to be
retained by the City, the selected firm 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 rendering an unqualified approving opinion as to the legality of the bonds.
The selected firm will inform, advise and recommend to the Financial Officer 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 or obtaining insurance for any of the transactions. Prepare
information necessary for presentation to the bond rating agencies and insurance
companies. The Financial Officer may also requested representatives of the firm(s) to
participate in the presentations.
Under the direction of the Financial Officer, The selected firm 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. The Financial Officer
may request representatives of the firm(s) to attend and participate in the Council
meetings.
When bonds or COPs are ready to be issued, the selected firm will assist the Financial
Officer in the preparation of the City's bonds or COPs for an advertised public sale or
through a negotiated sale. The selected firm will:
o 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 or COPs can be set at a time which, in the
selected firm's opinion, will be favorable.
o Attend the sale of the COPs or bonds, and assist in the award and delivery of the
COPs or bonds to the successful bidder or, in the case of a negotiated sale,
conduct the sale of the tax-exempt securities.
Provide a written, post-transaction assessment of any financing(s) undertaken.
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Assist the City in ensuring compliance with Rule 15c2-12 of the Securities and Exchange
Commission as amended.
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IV. PROPOSAL FORMAT AND CONTENT
Individuals or firms seeking to provide financial advisor or investment banking services must
have prior experience as a financial advisor or senior managing underwriter on a revenue bond
or lease-purchase COP financing of at least $5,000,000.
Due to the specialized nature of open space acquisition financing, firms should demonstrate
their knowledge and experience in this type of financing. Any specific risks or difficulties in this
type of financing should be concisely presented in the proposal to the City.
Firms submitting a qualifications proposal must respond, in sequence, to the following requests
for information*:
Overview: Briefly describe, in two (2) pages or less, the nature of the firm’s business as
it relates to providing financial advisory services to municipalities, particularly for tax-
exempt revenue bonds and lease-purchase transactions financed through COPs.
Ability and Experience: State in two (2) pages 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:
o 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.
o Identify the firm’s position as to (a) requesting a rating for the bonds or
certificates, and (b) seeking insurance. Describe the key topics and strategies
upon which you would focus in conducting a rating agency or insurance company
presentation.
o Identify the municipal bond interest rate scales that would be used as
benchmarks for pricing the transactions specifically listed in this proposal. Using
the scales as of April 15, 2004, estimate the interest rates that the City would
have attained, had the transaction been completed on that day. Provide the
basis for your estimates.
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.
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*To facilitate the review process, the City asks that each firm keep its qualification statement
concise and limit the submittal to eight (8) pages or less. Every page of your qualification
statement, excluding cover and divider pages, must be numbered.
The written proposal and eight (8) 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 listed above. The
City is interested in many types of innovative financing which should be established to
achieve the highest possible quality ratings from Fitch’s, Moody's and Standard and
Poor’s and the most favorable insurance quotes on each transaction.
Provide a concise history of your firm.
The City requires that the selected firm(s) 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.
List the dollar volume of your underwritings in the tax exempt market for the years 2001,
2002, 2003 and 2004 to date.
Provide complete information including background, overall abilities, and experience for
the person(s) who would serve in the role as described above. The City needs this
information to include consulting on tax- exempt debt issues with special emphasis on
the various types of instruments listed above.
Fees and Expenses:
o For advisory services, propose a flat dollar amount fee respective to each
financing. Indicate whether any economies of scale will be obtained if more than
one of the transactions is completed by your firm. Estimate and commit to a not-
to-exceed dollar amount for each respective transaction not included in the flat
fee quoted.
o For negotiated sales, indicate how your firm will manage transactions to minimize
costs to the City. Provide specific examples of the fee levels and arrangements
obtained for other clients.
o 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.
Include all other information or data which may uniquely qualify your firm in serving the
City in the role outlined in this document.
List all clients for which your firm has provided financial advisory or underwriting services
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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V. SIGNATURE FORM
"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 Telephone No.
_________________________________________________________________
RFP No. ____ Date of Proposal: ____________
__________________________________________
Signed by
___________________________________________________________________
Signed by _________________________________
____________________________________________________________________
(Please print or type name and title)
2/9/00
VI. 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?
Can the target start and completion dates be met?
Are other qualified personnel available to assist in
meeting the project 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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Reference evaluation (Top Ranked Firm)
The project Manager will check references using the following criteria. The evaluation rankings
will be labeled Satisfactory/Unsatisfactory.
QUALIFICATION STANDARD
Overall Performance Would you hire this Professional again? Did
they show the skills required by this project?
Timetable Was the original Scope of Work completed
within the specified time? Were interim
deadlines met in a timely manner?
Completeness Was the Professional responsive to client
needs; did the Professional anticipate
problems? Were problems solved quickly and
effectively?
Budget
Was the original Scope of Work completed
within the project budget?
Job Knowledge a) If a study, did it meet the Scope of Work?
b) If Professional administered a construction
contract, was the project functional upon
completion and did it operate properly?
Were problems corrected quickly and
effectively?
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SERVICES AGREEMENT
WORK ORDER TYPE
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 ____________________, hereinafter referred to as "Service
Provider".
WITNESSETH:
In consideration of the mutual covenants and obligations herein expressed, it is agreed
by and between the parties hereto as follows:
1. Services to be Performed.
a. This Agreement shall constitute the basic agreement between the parties for
services for ________________________. The conditions set forth herein shall apply to all
services performed by the Service Provider on behalf of the City and particularly described in
Work Orders agreed upon in writing by the parties from time to time. Such Work Orders, a
sample of which is attached hereto as Exhibit "A", consisting of ____ (___ ) page[s], and
incorporated herein by this reference, shall include a description of the services to be performed,
the location and time for performance, the amount of payment, any materials to be supplied by
the City and any other special circumstances relating to the performance of services. No
workorder shall exceed $_________. The only services authorized under this agreement are
those which are performed after receipt of such Work Order, except in emergency
circumstances where oral work requests may be issued. Oral requests for emergency actions
will be confirmed by issuance of a written Work Order within two (2) working days.
b. The City may, at any time during the term of a particular Work Order and without
invalidating the Agreement, make changes within the general scope of the particular services
assigned and the Service Provider agrees to perform such changed services.
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2. Changes in the Work. The City reserves the right to independently bid any
services rather than issuing work to the Service Provider pursuant to this Agreement. Nothing
within this Agreement shall obligate the City to have any particular service performed by the
Service Provider.
3. Time of Commencement and Completion of Services. The services to be
performed pursuant to this Agreement shall be initiated as specified by each written Work Order
or oral emergency service request. Oral emergency service requests will be acted upon without
waiting for a written Work Order. Time is of the essence.
4. Contract Period. [Option 1] This Agreement shall commence upon the date of
execution shown on the signature page of this Agreement and shall continue in full force and
effect for one (1) year, unless sooner terminated as herein provided. In addition, at the option of
the City, the Agreement may be extended for an additional period of one (1) year at the rates
provided with written notice to the professional mailed no later than 90 days prior to contract
end.
4. Contract Period. [Option 2] This Agreement shall commence _____ 200_, and
shall continue in full force and effect until _______, 200_, unless sooner terminated as herein
provided. In addition, at the option of the City, the Agreement may be extended for additional
one year periods not to exceed __ (_) additional one year periods. Pricing changes shall be
negotiated by and agreed to by both parties and may not exceed the Denver - Boulder CPI-U as
published by the Colorado State Planning and Budget Office. Written notice of renewal shall be
provided to the Service Provider and mailed no later than 90 days prior to contract end.
5. Delay. If either party is prevented in whole or in part from performing its
obligations by unforeseeable causes beyond its reasonable control and without is fault or
negligence, then the party so prevented shall be excused from whatever performance is
prevented by such cause. To the extent that the performance is actually prevented, the Service
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Provider must provide written notice to the City of such condition within fifteen (15) days from
the onset of such condition.
6. Early Termination by City/Notices. 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 Service Provider. Such notice shall be mailed at least fifteen (15)
days prior to 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 address:
City Service Provider
___________________________ __________________________
___________________________ __________________________
___________________________ __________________________
In the event of early termination by the City, the Service Provider shall be paid for
services rendered to the termination date, subject only to the satisfactory performance of the
Service Provider's obligations under this Agreement. Such payment shall be the Service
Provider's sole right and remedy for such termination.
7. Contract Sum. This is an open-end indefinite quantity Agreement with no fixed
price. The actual amount of work to be performed will be stated on the individual Work Orders.
The City makes no guarantee as to the number of Work Orders that may be issued or the actual
amount of services which will in fact be requested. No Work Order of _______ or more shall be
issued.
8. Payments. a. The City agrees to pay and the Service Provider agrees to accept
as full payment for all work done and all materials furnished and for all costs and expenses
incurred in performance of the work the sums set forth for the hourly labor rate and material
costs, with markups, stated within the Bid Schedule Proposal Form, attached hereto as Exhibit
"B", consisting of ____ (___) page[s], and incorporated herein by this reference.
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b. Payment shall be made by the City only upon acceptance of the work by the City and
upon the Service Provider furnishing satisfactory evidence of payment of all wages, taxes,
supplies and materials, and other costs incurred in connection with the performance of such
work.
9. City Representative. The City's representative will be shown on the specific
Work Order and shall make, within the scope of his or her authority, all necessary and proper
decisions with reference to the work requested. All requests concerning this Agreement shall be
directed to the City Representative.
10. Independent Contractor. It is agreed that in the performance of any services
hereunder, the Service Provider is an independent contractor responsible to the City only as to
the results to be obtained in the particular work assignment and to the extend that the work shall
be done in accordance with the terms, plans and specifications furnished by the City.
11. Personal Services. It is understood that the City enters into the Agreement
based on the special abilities of the Service Provider and that this Agreement shall be
considered as an agreement for personal services. Accordingly, the Service Provider shall
neither assign any responsibilities nor delegate any duties arising under the Agreement without
the prior written consent of the city.
12. Acceptance Not Waiver. 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 under the
Agreement or of any cause of action arising out of the performance of this Agreement.
13. Warranty.
(a) Service Provider warrants that all work performed hereunder shall be
performed with the highest degree of competence and care in accordance
with accepted standards for work of a similar nature.
(b) Unless otherwise provided in the Agreement, all materials and equipment
incorporated into any work shall be new and, where not specified, of the
most suitable grade of their respective kinds for their intended use, and all
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workmanship shall be acceptable to City.
(c) Service Provider warrants all equipment, materials, labor and other work,
provided under this Agreement, except City-furnished materials,
equipment and labor, against defects and nonconformances in design,
materials and workmanship/workwomanship for a period beginning with
the start of the work and ending twelve (12) months from and after final
acceptance under the Agreement, regardless whether the same were
furnished or performed by Service Provider or by any of its subcontractors
of any tier. Upon receipt of written notice from City of any such defect or
nonconformances, the affected item or part thereof shall be redesigned,
repaired or replaced by Service Provider in a manner and at a time
acceptable to City.
14. 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 thereof.
15. 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.
16. 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 representative, successors and assigns of said parties.
17. Indemnity/Insurance. a. The Service Provider agrees to indemnify and save
harmless the City, its officers, agents and employees against and from any and all actions, suits,
claims, demands or liability of any character whatsoever, brought or asserted for injuries to or
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death of any person or persons, or damages to property arising out of, result from or occurring in
connection with the performance of any service hereunder.
b. The Service Provider shall take all necessary precautions in performing the work
hereunder to prevent injury to persons and property.
c. Without limiting any of the Service Provider's obligations hereunder, the Service
Provider shall provide and maintain insurance coverage naming the City as an additional
insured under this Agreement of the type and with the limits specified within Exhibit "D",
consisting of _____ (____) page[s], attached hereto and incorporated herein by this reference.
The Service Provider before commencing services hereunder, shall deliver to the City's Director
of Purchasing and Risk Management, 215 N. Mason, PO Box 580, Fort Collins, Colorado 80522
one copy of a certificate evidencing the insurance coverage required from an insurance
company acceptable to the city.
18. Entire Agreement. This Agreement, along with all Exhibits and other documents
incorporated herein, shall constitute the entire Agreement of the parties. Covenants or
representations not contained in this Agreement shall not be binding on the parties.
19. Law/Severability. This Agreement shall be governed in all respect by the laws of
the State of Colorado. In the event any provision of this Agreement shall be held invalid or
unenforceable by any court of competent jurisdiction such holding shall not invalidate or render
unenforceable any other provision of this Agreement.
20. Special Provisions. [Optional] Special provisions or conditions relating to the
services to be performed pursuant to this Agreement are set forth in Exhibit ___, consisting of
_____ (____) page[s], attached hereto and incorporated herein by this reference.
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CITY OF FORT COLLINS, COLORADO
a municipal corporation
By: _________________________________
John F. Fischbach
City Manager
By: __________________________________
James B. O'Neill II, CPPO
Director of Purchasing and Risk Management
Date:_________________________________
ATTEST:
____________________________
City Clerk
APPROVED AS TO FORM:
____________________________
Assistant City Attorney
[INSERT CORPORATIONS NAME] or
[Insert Partnership name] or
[Insert individual's name]
Doing business as [Insert name of business]
By: _________________________________
______________________________________
PRINT NAME
______________________________________
CORPORATE PRESIDENT OR VICE PRESIDENT
Date:_________________________________
ATTEST: (Corporate Seal)
___________________________
CORPORATE SECRETARY
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EXHIBIT "A"
WORK ORDER FORM
PURSUANT TO AN AGREEMENT BETWEEN
THE CITY OF FORT COLLINS
AND
______________________
DATED: _____________
Work Order
Number:____________________________________________________________________
Purchase Order Number:
________________________________________________________________
Project Title:
__________________________________________________________________________
Commencement Date: _________________________________________________________________
Completion Date:
______________________________________________________________________
Maximum Fee: (time and reimbursable direct costs): _____________________________________
Project Description:
____________________________________________________________________
____________________________________________________________________________________
____
____________________________________________________________________________________
____
Scope of Services:
_____________________________________________________________________
____________________________________________________________________________________
____
____________________________________________________________________________________
____
Acceptance _________________________________
User
Service Provider agrees to perform the services
identified above and on the attached forms in
accordance with the terms and conditions
contained herein and in the Services Agreement
between the parties. In the event of a conflict
between or ambiguity in the terms of the
Services Agreement and this work order
(including the attached forms) the Services
Agreement shall control.
Service Provider
By:______________________________
Date:_________________________________
StandardForm/RFP Invitation 2004
The attached forms consisting of ____ (_) pages
are hereby accepted and incorporated herein by
this reference, and Notice to Proceed is hereby
given.
City of Fort Collins
By: _________________________________
Date: _______________________________