HomeMy WebLinkAbout38-Community Development
Cll "OF SAN BERNARDI' .0 - REQUr"T FOR COUNCIL Acr ON
Date:
December 7, 1988
Dire'RarO. - ~PMf!: C F FPNDERWRITER SERVICES
FOR CITY/HOUSING
'SGB OEe -8 r~.1, I: lAUTHORITY/SAN BERNARDINO
, I HOSPITAL SENIOR HOUSING
COMPLEX
From:
Kenneth J. Henderson,
~ -t>t:
community Development
Synopsis of Previous Council action:
On November 17, 1986, the Mayor and Common Council approved in concept
the development of a fifty (50) unit senior housing complex by city,
the Housing Authority and San Bernardino Community Hospital.
On June 20, 1988, the Mayor and Common Council received and filed
status report and directed staff to prepare a detailed financing plan.
On August 1, 1988, the Mayor and Common Council authorized the issuance
of Requests for Proposals (RFP) for bond underwriter/financial advisor
services for issuance of bonds not to exceed 2.0 million dollars to
assist with the financing of a fifty (50) unit senior housing complex
at the corner of 17th and Flores Streets.
Recommended motion:
Approve the selection of Erlich Bober and Company, Inc., as underwriter
for City/Housing Authority/San Bernardino community Hospital Senior
Housing Complex, and direct the city Attorney to prepare the
appropriate documents for approval by the Mayor and Common Council on
January 3, 1988.
~~~r~
Contact person:
Ken Henderson/Maurice Oliva
Phone:
5065
Supporting data attached:
Staff Report
Ward:
6
FUNDING REQUIREMENTS:
Amount:
N/A
Source: (Acct. No.)
N/A
(Acct. Description)
N/A
Finance:
"''''\uncil Notes:
7 5-0262
Agenda Item No.
~~g
CI~'V OF SAN BERNARDr"~O - REQUF~T FOR COUNCIL ACr "'ON
STAFF REPORT
In November, 1986, the Mayor and Common Council approved in
concept the development of a fifty (50) unit senior citizen
apartment complex in conjunction with the Housing Authority
of the County of San Bernardino and the San Bernardino
community Hospital. On June 20, 1988, the Mayor and Common
Council received and filed a status report and directed
staff to prepare a detailed financing plan. On the same
date, representatives of Mudge Rose Guthrie Alexander and
Ferndon were introduced to the Mayor and Common Council as
bond counsel selected to represent the City of San Bernar-
dino for the issuance of a bond to pay the City's share of
the proposed 3.0 million dollar project.
On August 1, 1988, the Mayor and Common Council authorized
the issuance of a Request for Proposals (RFP) for bond
underwriter services for issuance of a bond not to exceed
2.0 million dollars. The City will use said bond to
finance its share of the proposed 3.0 million dollar
project.
Four (4) proposals were received, reviewed and rated by a
proposal review committee composed of the community
Development Department Housing Consultant and Housing
Development ,specialist, as well as the City Treasurer.
On December 6, 1988, the Director of community Development,
City Treasurer and Housing Development Specialist inter-
viewed representatives of Ehrlich Bober and Company, Inc.,
and Sutro and Company, each of which received the highest
and second highest rankings, respectively, by the review
committee. Attached are copies of the original RFP and
rating sheet used in the initial evaluation and the
personal interview.
Staff recommends that the Mayor and Common Council approve
by form motion the selection of Ehrlich Bober and Company,
Inc., as underwriter for said project and direct the City
Attorney to prepare appropriate documents for approval by
the Mayor and Common Council at the regular meeting sche-
duled for January 3, 1989.
iw~ r~ (:} ~ JAA4M
Kenneth J. Hendersorl
Director of community Development
KJH/MLO/lab/2059
December 7, 1988
75-0264
CI'n' OF SAN BERNARDI.l-..J
cnHJNl'lY I:E.VEI.OHmn' DEPARlMEN1'
RrJ;PEST RR 1'rot:a3AIS
FOR FINANCIAL ~ AND/OR tJNDEF&lRlTING SERVICES
Ba~
'!be Camlmity Deve1~t DepartIre.nt of the city of San Be.mardino desires
to retain a finaocial advisor or umerwriter to assist in the anticipated
issuance of bold f~in;J oot to exceed two million dollars ($2,000,000)
for the p.rrpose of financin;J the deve1qment of a fifty (50) unit senior
hcA.1sin;J project in the City of San Be.mardino.
'n1e total cost of the project is estimated at awroximately three million
dollars ($3,000,000). 'n1e project is an aparbtent OCIlplex for senior
citizens on fixed in:x:1res (priInarily 551 am SSA recipients) am wcW.d
include a nultip..u:pose facilty for leisure, educational an:Vor avocational
activities. 'n1e project will be located on approximately two point five
(2.5) acres at the future oomer of Flores am 17th streets. '!be project
will require the oonstroction of lx>th Flores am 17th streets am
installation of certain offsite iInprovements related to the CXIlpletion of
said streets.
'!he project will be financed as a joint venture between the City of san
Be.mardino, the HalSin;J Authority of the Camty of San Be.mardino am
Arr'avhead Health Care System, Inc., the parent CCl1"pal1Y of san Be.mardino
Camlmity Hospital. Arr'aYhead Health Care System, Irx:., will lease the
lam to the HalSin;J Authority for thirty (30) years with two (2) ten (10)
year options or thirty five (35) years with three (3) five (5) year options
for one dollar ($1.00) per year for the life of the lease am affected
options. '!be Hoosin;J Authority am the City will share in fi.ncm::in;J the
cost of the project described above. '!be Hoosin;J Authority will C1NJl ani
operate the project. '!he Authority will pay for architectural ani
en;ineeriIq services ani approximatelyone-half (1/2) of the project cost
(estimated at one point five million dollars ($1,500,000)) with its C1NJl
revenues.
'!he city proposes to pay its share of the project cost (estimated at
approximately one point five million dollars ($1,500,000)) by use of
Olarter City Notes. '!he City interrls to issue a Lilnited Obligation Loan
AgreeJrent Revenue Bond in an aIOClUl'lt not to exceed two million dollars
($2,000,000), ani City will retire the bom by pledgin;J a portion of its
twenty percent (20%) housiIq set-aside furrls generated fran successful
:redevelor:m:mt project areas.
Recent City of San Bernardino Redevelcpoont AgeT'Cj tax i.nc:rerrent
projections irrlicate tbat in fiscal year 1987/1988 three (3) of its eleven
(11) project areas prcrluced $245,548 in twenty percent (20%) hoosiIq set
aside furrls since June, 1987.: '!be total set-aside furrls on deposit as of
March 31, 1988 was reported at $381,476. HousiIq set-aside incc:me fran the
Northwest, Tri-<:=ity ani South Valle project areas has been increasin;J
fifteen percent (15%) to twenty percent (20%) annually.
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For pnposes of this project, the City has seltd:ed as b:n1 camsel the
finn of l-b1ge Rose QJthrie Alexamer am Ferdon.
Mininum Reauirem::mts
'!he City seeks a financial consultant or urrleJ:writer \410 will playa
leadership role ~ the process, provide ocntinrl.ty of personnel,
am advise the city ~ the JOOSt awropriate am oost-effective way
to structure the borxi finarx::in;J package to meet the needs of the City, the
Ha.1s:in;J Authority, am the Arrc1.-ihead Health care System, Inc. Respordents
to this RFP nust have a full service office in soothem california am be
able to derronstrate their ~tenoe am ccmn:itIoont to the successful
financ:in;J of similarly sized issues. '!he City wishes to minimize the time
am effort required of its staff am other cxnsultants to aocx:ll'plish a
successful financin;J. (Attachment "1" provides a detailed description of
the services required.)
Proposal Contents
'!he City requests the respoooents to this RFP provide, at a mi.nim.nn, the
items irdicated be1CM:
1. Oualifications
'Ibis section of the proposal shoold irdicate breadth of experience of
yoor firm in varioos types of barrl financed projects urrlertaken by
cities ard redevelcpoont agencies. Incl1.rle descriptions of yoor finn's
involvement in structur:in;J am deve1q>:in;J innovative finarx:in;J plans ard
techniques invol vi.rg the sale of bords to the nunicipal borrl market am
providi.rg the services listed in Attac1urent ''In.
Please include at least three (3) references of clients for whan yoor
finn has perfonood recent advisory services (within the last three (3)
years). Also describe the structure of your firm, J'l.IIIIber of enployees,
location of offices am its capital base. If possible, include a recent
audited financial staterrent.
Prooosals from finns that do not meet the req..lirements ootlined above
will not be considered.
2. Srope of Ser:vices
Attacllrcent "1" provides a list of the services the City will e>q)ect to
be provided by the selected financial advisor/urrleIwriter. '!he "scc:pe
of services" section of the proposal shoold identify any nOOifications,
deletions or additions to the listed services, as 'Nell as a description
of the nature and extent of services be:in;J proposed.
Additionally, the proposal should (a) outline the preliminary financing
structure proposed; (b) state whether credit enhancenent would be
necessary; (c) state anticipated debt service coverage requi.rerrents;
and, (d) suhnit a list of procedural steps involved together with a
proposed timetable.
3. Financing Costs and Compensation
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'!he prq:lOSCll shoold inchrle an estimate of fi.rlan:inl oosts incl\Xlin;J
fees ard expenses associated with the issuance of the bord ard indicate
whether these costs will be cart:fn:3ent upon closin) of the sale of the
bonds.
4. Responsible Personnel
Please describe the proposed personnel fran ycur fim 'Aho will have
direct ard primary responsibility for the provisioo of services am 'Aho
will \1/Ork with the City to arran;Je the proposed financin). Please
provide resumes am other information regardiIg their experieooe in
similar financirgs am financial advisory \1/Ork in general. Yt2D
selection. persormel may not be substituted withoot advance written
approval bv the City.
Selection Criteria
Consultants shall be selected thrc:u:Jh review of the subnitted prq:lOSClls,
usin:J the followin:J criteria:
1. DeIoc>nstration of specific current am extensive experieooe am track
record in st.ructurin:J ani coordinatin:J bard financin:3s as penni.tted
lD'rler California law.
2. Responsiveness of the sul:anission to the provisions am criteria of this
RFP.
3. Flexibility in tailorin:J the structure of financirgs (e.g.,
alt'Ortization, coverage ani reserve aspects) to the specific needs of the
City.
4. Experience, qualifications, continuity am availability of staff
assigned to the provision of the advisor/urrlezwritin;J services.
5. Fees am expenses.
A limited rn.nnber of firms may be ilwited to oral interviews prior to the
award of a contract for Sel.'Vices.
Selection Schedule
Five (5) copies of su1::missions in response to this RFP nust. be received by
the City no later than 4:00 p.m., FUr, August 31, 1988, at the followin;J
address:
City of San Bernardino
0:lmm.1ni. ty Devel<::pYent DepartIoont
300 North liD" street, 5th Floor
San Bernardino, CA 92418
Attn: Maurice Oliva, Hoosin;J Deve10pnent Specialist
Nothin;J in this RFP shall be deemed to canmi.t the city to en:Jage any
financial consultant arrl,Ior urdenJriter or to proceed with the sale of any
bords. No proposal costs will be rei.ml:ursed.
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eonsideratioo of the suanissions will ocx::ur as SOCI'l as p::lSSible foll<::JWirg
the above deadline arxi fims selected for oral inteIviews will be caltacted
inmediate1y after the pre1im.i.nary evaluatioo is carpleted.
Arr:l questions regardin;J this RFP may be directed to Mr. oliva at 714/384'"
5065.
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Attad1ment "1"
CI'lY OF SAN BEEWIDINO
<nMJNI'lY DEVELOR-!ENl' DEPARIMENl'
REUJEST FOR m:>row.s
FOR FINANCIAL AI:NJ.SORY AND/OR ~ SERVICES
~ested 5cq;)e of SeIvices
'!he sel.Vices listed below are those am:ently identified to be provided by
the selected financial advisor/\.1OOerwriter. Any SUC};Jestions for
IOOdifications to these sel.Vices shoold be inchrled in the pI~
sul:mi. tted in response to this RFP.
In general, the selected finaooial advisor/un:1eJ:writer woold be required to
advise City staff am ot:heJ:wi.se coordinate the proposed finaoo~.
'!he initial sel.Vices required will be to consult with City staff
regardirq the plblic financirg options available for the proposed
financirq, am provide advice, counsel am SUC};Jestions as to feasible
alternatives wen woold aCXX'lI{)lish the goals of the City in a tilnely am
cost-effective fashion. '!he advisor/un:1eJ:writer woold then be asked to
finalize the financ~ plan am provide the follow~ sel.Vices:
1. Prepare am reccmnerrl aJOC)rtization schedules for the proposed
financ~.
2. ArranJe am iIrpleIlS1t procedural steps for the financirq.
3. Make reccmnerrlations regarc1in;J the financial content of
resolutions, notices of sale, am other doo..nnents.
4. Prepare am revise, as requested by City staff am consultants,
the Official stateIrents am other doo..nnentation for the
financi.rg .
5. Coordinate the reproduction, mail~ am distrib.Ition of the
notices of sale, Official sta1:.enents, am other doo..nnents, if
any, to urrlerwriters am institutionlll. bIyers located
throughalt the coontry to encourage the best cx::rrpetitive
bidding for the financirg.
6. Assist in OOtaini.rg born rati..rqs fran M<xxiys arrl/or Starrlard
am Poors, if appropriate.
7. Assist in 00taini.rg municipal born insurance or other credit
enhancement, if appropriate.
8. With due regard for the needs am requirements of the City,
make reccmnerrlations regarc1in;J ti..mirq of the financirq to take
optimum advantage of market corrlitions.
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9. Advise City staff as to che selection of t.ne borxl printers,
fiscal agents am payirg agents, irelucii.n;J ootai.Jlirg
~titive bids, where atpIq>riate.
10. If p,lblicly bid, calculate bids for the bc:nis, identify the
lC1tJ'eSt bid am advise the City 00IX::el11irg award of the
fi.nancirg .
11. Arran;Je the closirg of the financirg am advise City staff
conce.rni.rg investment of financin;J proceeds, if arrj, pen:llig
their ~ture by the City. SUch advice shoold in:::l\X3e a1ly
very secure am insured investments S9 that the City assumes no
risk Mlatsoever regardiIq security of principal am guaranteed
return on investment.
lab/1081
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