EXECUTIVE
SUMMARY
Finance Ÿ
Redevelopment Ÿ
Implementation Ÿ Planning
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Mr. David Berger
General Manager
Monterey Peninsula Water Management
District
5 Harris Court, Building “G”
P. O. Box 85
Monterey, California 93942-0085
|
|
|
RE: FINANCIAL ADVISORY SERVICES FOR THE
MONTEREY PENINSULA WATER MANAGEMENT DISTRICT
Dear
Mr. Berger:
Thank
you for the opportunity to present this proposal to provide Financial Advisory
services to the Monterey Peninsula Water Management District (the
"District"). This proposal is intended
to serve as a mechanism for Urban Futures to be the Financial Advisor for the District. An initial contemplated assignment is for the
proposed issuance of certificates of participation (the “Bonds”), which will be
used to finance the construction of a second water injection well and related
infrastructure for the District’s Aquifer Storage and Recovery Project. In addition to financial advisory services,
it is our understanding that the District desires assistance in determining
whether the Bonds may be issued on either tax exempt or taxable basis.
Since
our founding, Urban Futures, Inc. (“UFI”) has served over 150 governmental
entities in various capacities, and as financial advisors/fiscal consultants,
we have been involved in over $6,000,000,000 worth of transactions. We have helped many California agencies create a sound financial
foundation and look forward to sharing this expertise with the District.
Due
to our extensive public finance experience in California, Urban Futures, Inc.
is uniquely qualified to provide fiscal consultant reporting services to the District
in an innovative and comprehensive manner.
UFI “brings to the table”:
·
Knowledge of and
familiarity with the current municipal bond market and trends relative to
financings in California;
·
A team of
professionals with a combined 120 years of municipal financing and
redevelopment experience;
·
Analytic
sophistication that fosters a multi-disciplinary approach to problem solving
regardless of project size or type;
·
An integrated
full-service approach which provides clients with all necessary finance
services; and
·
Continuity of
service; UFI is small enough so that there is never a break in the
client/professional network, yet large enough to offer a full range of
services.
The greatest benefit that we present to the District
is that our firm can combine these necessary services into
a comprehensive whole. The list in Section 2 (Scope of Services)
details the services that UFI will perform.
Firm Description
and Experience:
Urban
Futures, Inc. (UFI) is a full service municipal consulting firm serving local
government primarily in the State of California. The firm was founded in 1972 and has existed
in its present form since 1974. It is
the largest singularly owned, municipal financial advisor/redevelopment
consulting firm in the State. UFI is a
closely held California
corporation and serves as the controlling company for Urban Futures Bond
Administration, Inc. (UFBAI), one of the nation's largest bond administrators. UFBAI shares offices with UFI in the District
of Orange, California.
UFI
currently employs 27 staff members.
Staff members regularly attend seminars to upgrade their skill
levels. For this particular financing,
Al Holliman will be UFI’s lead fiscal consultant, as a significant portion of
his practice includes the Central California
coastal region. Joining him in this
assignment will be Marshall Linn, Doug Anderson and Eva Wolf. A short biographical sketch for each of them
is provided below.
Over the last 32
years, UFI has provided financial advice and/or prepared fiscal consultant
reports for the following types of financings:
a. Assessment District Bonds
b. Mello -Roos Special Tax Bonds
c. Certificates of Participation
d. Lease Revenue Bonds
e. RDA Tax Allocation Bonds — Taxable and
Tax-Exempt
f. RDA Tax Allocation Notes — Taxable and
Tax-Exempt
g. Single Family Revenue Bonds
h. Mobile Home Revenue Bonds
i. Multifamily Revenue Bonds
j. Variable Rate Bonds
k. Water and Sewer Revenue Bonds
l. General Obligation Bonds
m. Grant Anticipation Notes
n. Enterprise
Fund Financings
UFI's Public Finance Department
is dedicated to providing comprehensive and innovative financial consulting
services to cities, counties, redevelopment agencies and special districts. The principal members of the firm have over one
hundred and twenty years of combined experience in both public and private
financings. The firm, over the last
decade, has served as financial advisor, fiscal consultant and/or bond
administrator for more than six billion dollars worth of tax exempt and taxable
securities.
UFI
currently serves as financial advisor and/or bond administrator to over 125
counties, cities and redevelopment agencies.
In addition to redevelopment and Marks-Roos, other kinds of issues for
which we have served as financial advisor include water and sewer revenue
bonds, special assessment bonds, Mello-Roos Special Tax Bonds, certificates of
participation revenue bonds, single and multifamily revenue bonds, taxable
bonds, and various forms of refunding bonds.
In
addition, major banks have issued Letters of Credit to a significant number of California cities, redevelopment
agencies and special districts based on their confidence in our work
product. Both Moody's Investor's Service
and Standard & Poor's recognize our name and have issued ratings on issues
where we served as financial advisor/fiscal consultant.
Understanding of Tasks for Injection Well
Bonds:
UFI will provide the following services:
1.
Evaluate and
project the District’s cash flows (property tax and rate payer) required to size
and debt service the Bonds.
2.
Subsequent to
the determination of the tax exempt or taxable nature of the Bonds, render an
opinion with respect to the size of the Bond issue.
3.
Assist
District staff in their conduct of a Proposition 218 validation process.
4.
Recommend the
financing team members (underwriters, bond counsel, disclosure counsel,
trustee, etc.) that are best suited to the Districts current needs and
coordinate all meetings with financing team members.
5.
Coordination
of and assistance in the preparation of the preliminary and final official
statements for the bond issue.
6.
UFI will
actively participate in the rating agency and bond insurance process and be
available for all questions by the rating agencies and/or bond insurers.
7.
Pricing
advisory services – one week before the final pricing date for the bonds, UFI
will begin assembling market data relative to tax exempt debt offerings in
general and tax exempt tax allocation bonds.
On the day before and morning of pricing, UFI will prepare a detailed
analysis of similar bond issues which will be presented to the District. This analysis will be used as a benchmark in
determining the equitability and viability of the net yield offered by the
underwriter.
8.
UFI will
participate in the “pricing call” between the District and the underwriters and
will offer “offline” advice to the District in accordance with the
aforementioned analysis regarding the price and terms as quoted by the
underwriters.
9.
UFI’s services will include a thorough review of
the various components which equate to the net bond yield, including
appropriate scrutiny of the underwriters’ spread and any related premiums or
discounts on the bonds.
10. Assistance in the investment of bond
proceeds.
11. Post bond follow-up.
Compensation:
Please refer to
Exhibit C for Urban Futures’ fee schedule.
Urban Futures is only compensated if and when bonds are issued. Our fees are payable from bond proceeds.
Qualifications of Key Personnel:
MARSHALL F. LINN, President will oversee all
aspects of the work performed for The District.
Mr. Linn has more than 38 years of municipal and private consulting
experience. As a financial advisor, Mr.
Linn has participated in more than 350 bond issues, totaling well over five billion dollars in tax exempt securities,
including over 250 tax allocation notes and bonds, lease revenue bonds, certificates
of participation, sewer and water revenue bonds, community facilities and
assessment district financings, and other miscellaneous type of transactions.
Education:
Bachelor of Science Degree, Economics; Master's Degree, Urban
Planning, University
of Southern California.
AL HOLLIMAN, Principal will
have significant responsibilities for this engagement. Al enjoyed a successful 33 year career in
state and local government before joining Urban Futures in late 2006. His
career consisted primarily of assistant district manager, finance director, and
redevelopment administrative positions.
As such, he has extensive experience in municipal finance, public
utilities, economic development, redevelopment, and housing, which includes
lead issuer responsibilities for over $500 million in tax exempt debt
offerings.
Mr.
Holliman has a unique background in that he is a certified public accountant
but also has demonstrated experience in public utility matters, developer
negotiations, development agreements, and capital project administration. He has
taught government finance and economic development courses in the California State University
system since 1998.
Education: Mr. Holliman earned a
Bachelor of Arts Degree from California State University Fullerton in Business
Administration and a Master of Arts Degree in Management from the Claremont Graduate School. He is currently enrolled in doctoral studies
at the University
of Maryland.
DOUGLAS P. ANDERSON, Vice President will be
available for assistance for any services deemed necessary. He is responsible for the research and
analysis necessary to structure tax exempt bond issues and assists in the
investment of proceeds upon the issuance of bonds. Prior to his work with Urban Futures, Mr.
Anderson worked for a commercial bank and obtained experience in commercial
finance, housing and credit analysis.
Mr. Anderson has been with Urban Futures since 1985.
Education: Mr. Anderson earned a
Bachelor of Science Degree from San
Diego State University in Business Administration,
with a Finance emphasis.
EVA WOLF, Assistant Vice President will
research and compile the financial and statistical data necessary for any of
the District’s financing needs. She provides research and analysis of
information, which makes up components of the financial advisory report and the
preliminary and official statements for the bond issue. Ms. Wolf is responsible for coordinating with
the financing team to ensure adherence to the financing schedule. She has been with Urban Futures for over 12
years.
Education: Ms. Wolf earned a
Bachelor of Science Degree from the University
of Redlands in Business
Management.
We look forward to assisting the District
as its Financial Advisor. If you have
any questions or need additional information, please contact me or Mr. Holliman
at (714) 283-9334.
Sincerely,
MARSHALL F. LINN
President
Enclosures [Exhibits A (references), B (client list),
and C (fee schedule)]
EXHIBIT A:
REFERENCES
Joe
Hughes, City Manager Leon
Compton, City Manager
CITY OF HIGHLAND CITY
OF RIPON
27215 E. Baseline Street 259 North Wilma Avenue
Highland, CA 92346 Ripon, CA 95306
(909)
864-8732 (209)
599-2108
Financial advisor for 8+ financings Financial
advisor for 5+ financings
Bob
Adams, City Manager Jeff
Allred, City Manager
CITY OF MANTECA CITY
OF NORCO
1001
W. Center Drive 2870 Clark Avenue
Manteca, CA 95337 Norco, CA 92860
(209)
239-8400 (951)
735-3900
Financial advisor for 8+ financings Financial
advisor for 10+ financings
Brad
Kilger,City Manager Edward
Todd, City Manager
CITY OF CERES CITY
OF DINUBA
2720
Second Street 405 E. El Monte Street
Ceres, CA 95307-3292 Dinuba, CA 93618
(209)
538-5700 (559)
591-5904
Financial advisor services Financial
advisor services
Exhibit B: Clients
REDEVELOPMENT AGENCIES, CITIES, DISTRICTS
AND INSTITUTIONAL CLIENTS THAT URBAN FUTURES, INC. HAS SERVED
Adelanto
Alameda County
Anderson
Apple Valley
Arroyo Grande
Azusa
Bakersfield
Baldwin Park
Banning
Barstow
Bell Gardens
Belmont
Big Bear
Lake
Blythe
Brawley
Brisbane
Buena Park
Calabasas
Calipatria
Calexico
Carson
Cathedral District
Ceres
Cerritos
Coalinga
Colton
Commerce
Corcoran
Corona
Costa Mesa
Covina
Crescent District
Cudahy
Delano
Desert Hot
Springs
Dinuba
Downey
Duarte
Economic Development Corporation-Southwest Riverside County
El Centro
Exeter
Farmersville
Fillmore
Firebaugh
Folsom
Fort Bragg
Fountain Valley
Fowler
Fresno
Fresno County
Garden Grove
Glendora
Gonzales
Grand Terrace
Greenfield
Gridley
Hanford
Hawaiian Gardens
Hesperia
Highland
Holtville
Huntington Beach
Huntington Park
Hughson
Indio
Industry
Kings County
Lafayette
Lancaster
La Verne
Lawndale
Lemoore
Lemon Grove
Lindsay
Livingston
Loma Linda
Los Angeles, District
Los Angeles, County
Los Banos
Manhattan Beach
Manteca
March Joint Powers
Authority
(Military Base
Reuse)
Maywood
Mendota
Merced
Montebello
Monterey Park
Moorpark
Morgan Hill
Murrieta
Needles
Norco
Oceanside
Ontario
Ontario Local
Redevelopment
Authority
Orange
Orange County
Oxnard
Parlier
Pasadena
Pico Rivera
Pismo Beach
Pittsburg
Pomona
Rancho Cucamonga
Rancho Palos Verdes
Redlands
Redondo Beach
Reedley
Rialto
Rio Vista
Ripon
Rocklin
San Bernardino
San Diego, District
San Diego, County
San Dimas
San Francisco
San Juan Capistrano
San Luis Obispo, District
San Luis Obispo, County
San Leandro
Santa Ana
San Buenaventura
Santa Paula
San Fernando
San Jacinto
Shasta Utility District
Soledad
South El Monte
Stanislaus County
Stanton
Susanville
Victor Valley Economic
Development
Authority
(Military Base
Reuse)
University of La Verne
Upland
Ventura
Walnut
West Covina
Westminster
Winters
Winton
Yorba Linda
REPRESENTATIVE BOND ISSUERS AND/OR ADMINISTRATION CLIENTS
Azusa
Big Bear Redevelopment Agency
Barstow
Blythe
Blythe Redevelopment Agency
Brawley
Brawley Redevelopment Agency
Calabasas
Calexico
Calexico Community Redevelopment Agency
California Statewide Community Development Authority
(CSCDA)
Camarillo
Cathedral District
Cathedral District Redevelopment Agency
Clovis
Colton Redevelopment Agency
Concord
Covina
Covina Redevelopment Agency
Covina‑Rancho Cucamonga‑Calexico‑Downey
Housing Finance
Agency
Delano Redevelopment Agency
Dinuba
Dinuba Redevelopment Agency
Duarte Redevelopment Agency
El Monte‑Downey‑San Jacinto Housing Finance
Agency
Encinitas
Escondido‑Chula Vista Housing Finance Agency
Firebaugh Redevelopment Agency
Fresno
Garden Grove
Highland
Highland Redevelopment Agency
Huntington Park Redevelopment Agency
Indio
Lancaster
Lancaster Housing Authority
Lancaster Redevelopment Agency
Lemoore
Lemoore Redevelopment Agency
Lindsay Redevelopment Agency
Livermore
Loma Linda
Los Angeles County
Manteca
Manteca Redevelopment Agency
Montebello Redevelopment Agency
Montebello‑Oxnard Housing Finance Agency
Monterey Park
Moorpark
Moorpark Redevelopment Agency
Moreno Valley
Murrieta
Murrieta Joint Powers Authority
National City
Norco
Norco Redevelopment Agency
Oceanside
Ontario Redevelopment Agency
Orange County
Orange County Redevelopment Agency
Oxnard
Palmdale
Paramount
Pasadena Community Development Commission
Phoenix, Arizona
Pittsburg
Pomona
Pomona Redevelopment Agency
Port Hueneme‑Covina Housing Finance Agency
Rancho Cucamonga
Redlands
Rialto
Riverside County
Sacramento County
San Bernardino County
San Buenaventura‑Covina Housing Finance Agency
San Diego County
San Diego County
Housing Authority
San Jacinto
San Juan Capistrano Redevelopment Agency
San Leandro
San Marcos
Simi Valley
Southern California Home Financing Authority (SCHAFA)
Stanton
Stanton Redevelopment Agency
Thousand Oaks
Union City
Upland
Vallejo
Victorville
Vista
Walnut Improvement Agency
Westminster
Westminster Redevelopment Agency
Winton
Yucaipa
The cost for the services requested
by the Client for Financial Advisor shall be based on the following fee
schedule and other considerations:
Fee Bond
Amt
1)
$28,500 up to and including.......................... $ 1,000,000
2)
$31,500 up to and including.......................... $ 2,000,000
3)
$34,500 up to and including.......................... $ 3,000,000
4)
$37,500 up to and including.......................... $ 4,000,000
5)
$40,500 up to and including.......................... $ 5,000,000
6)
$41,500 up to and including.......................... $ 6,000,000
7)
$45,500 up to and including.......................... $ 7,000,000
8)
$47,500 up to and including.......................... $ 8,000,000
9)
$49,500 up to and including.......................... $ 9,000,000
10)
$51,500 up to and including.......................... $10,000,000
11)
$53,500 up to and including.......................... $11,000,000
12)
$55,500 up to and including.......................... $12,000,000
13)
$57,500 up to and including.......................... $13,000,000
14)
$59,500 up to and including.......................... $14,000,000
15)
$61,500 up to and including.......................... $15,000,000
16)
$63,500 up to and including.......................... $16,000,000
17)
$65,500 up to and including.......................... $17,000,000
18)
$67,500 up to and including.......................... $18,000,000
19)
$69,500 up to and including.......................... $19,000,000
20)
$71,500 up to and including.......................... $20,000,000
21)
$73,500 up to and including.......................... $21,000,000
22)
$75,500 up to and including.......................... $22,000,000
23)
$77,500 up to and including.......................... $23,000,000
24)
$79,500 up to and including.......................... $24,000,000
25)
$81,500 up to and including.......................... $25,000,000
For any single issue in excess of
$25,000,000, the financial advisor fee will be $2,000 per million over and
above $25,000,000.
Such fee shall become payable only
upon delivery by the District (or the legal entity or entities issuing such
bonds, notes or obligations) of such bonds.
In addition, the Financial Advisor shall be reimbursed for direct
out-of-pocket expenses and for legal expenses, if a competitive bid situation
is called for, out of the proceeds from the financing.
In addition to the Financial
Advisor's duties listed in the proposal, if the District needs UFI to perform
services other than those related to the potential issuance of bonds and the
accompanying analysis of the “taxable” versus ‘tax exempt” nature, UFI’s staff will be available on an hourly
fee basis based on the schedule provided below.
Principals $185.00
Senior Staff $160.00
Associate Staff $125.00
Assistant Level $ 75.00
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