Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Authorizing The Appropriate City Officials To Engage Any Combination Of The Three Highest Ranked Bond Underwriting Firms, To Serve As Members Of The City Of Hollywood’s Bond Underwriting Team For An Initial Period Of Three Years, With Two Optional One Year Renewal Periods.
Strategic Plan Focus
Financial Management & Administration
Body
Staff Recommends: Approval of Attached Resolution.
Explanation:
The Department of Financial Services wishes to select a team of underwriters to be in the underwriting pool and serve as members of the City’s bond issuance team, along with its Municipal Advisor, Bond Counsel and other debt and finance professionals as needed.
An RFQ 4651-20-PB was issued on April 29, 2020, and closed on May 26, 2020 with seventeen firms responding. A Selection Committee, comprised of representatives of the City Manager’s Office, the Financial Services Department, the Budget Office, the Public Utilities Department, and the City’s Municipal Advisor, in a non-voting, advisory role, met by teleconference on June 16, 2020. Two firms were determined to be non-responsive, and after review and discussion of the remaining fifteen firms, the Selection Committee recommends RBC Capital Markets, LLC, Bank of America, and Raymond James to be members of the City’s underwriting team.
The RFQ had a price component which includes costs exclusive of the takedown, such as any management fees and underwriter counsel, for example. Those prices were taken into consideration as one of the five components of the criteria used by the Selection Committee to make its recommendation. The prices ranged for the fifteen proposers from a low of $14,931.00 to a high of $45,500.00; the price range for the three recommended firms ranges from a low of $21,171.00 to a high of $25,105.11.
Fiscal Impact:
The costs associated with the provision of underwriting services are paid from bond proceeds and are usually paid as a cost per $1,000.00 of bonds issued. Costs are negotiable and determined at the time of each bond issuance.
Recommended for inclusion on the agenda by:
David Keller, Acting Director of Financial Services
Adam Reichbach, Assistant City Manager for Finance & Administration