Purchasing Department July 28, 2015 Kristine Johnston, Director of Purchasing Re: Financial Advisory Services, Request for Qualifications #15-08-4501RFQ Solicitation Notice Notice is hereby given that the Cypress-Fairbanks Independent School District ( Cypress-Fairbanks ISD, CFISD or "District") is soliciting statements of qualifications from qualified firms ( Financial Advisor, Advisor, or Firms ) to provide Financial Advisory Services to be provided in accordance with the terms, conditions, and specifications established herein. Sealed Bid Proposals for Financial Advisory Services, Request for Qualifications #15-08-4501RFQ, addressed to the attention of: Kristine Johnston, Director of Purchasing, Cypress-Fairbanks Independent School District, Windfern Administrative Annex, 12510 Windfern Road, Houston, Texas 77064-3108 will be received at the above address until 2:00 p.m., Wednesday, August 12, 2015. Proposal forms and specifications may be obtained from the Director of Purchasing, phone 281-897-4576, and/or downloaded from our website, http://www.cfisd.net/en/about/financialinformation/bids-and-proposals/. Please check our website for any updates, addendums or amendments to this bid. POINT OF CONTACT: The District s sole point of contact for questions regarding this solicitation is listed below. Unless otherwise indicated, any communication regarding this solicitation, including requests for clarification, must be directed via email only to: Karen W. Smith Assistant Superintendent for Business and Financial Services Cypress-Fairbanks Independent School District 10300 Jones Rd., Houston, TX 77065 karen.smith1@cfisd.net 281-897-4020 Please prepare and submit one (1) original of the complete proposal document with signatures along with three (3) additional copies of the complete proposal document. The proposal containing the original signatures should clearly be marked Original. The original proposal and copies must be provided in the sealed proposal envelope. Proposal envelopes should be plainly marked, Sealed Proposal for Financial Advisory Services, Request for Qualifications #15-08-4501RFQ. Do not open until 2:00 p.m., August 12, 2015. Faxed proposal responses will not be accepted. Any proposals received later than the specified time shall be disqualified. Disqualified proposals will be returned to the vendor unopened. The District reserves the right to reject any and/or all proposals, to accept any proposal deemed most advantageous to Cypress- Fairbanks Independent School District, and to waive any informalities in the proposals. Sincerely, Kristine Johnston Director of Purchasing KJ/ol Windfern Administrative Annex, 12510 Windfern Rd, Houston, Texas 77064-3108
Table of Contents 1. TIMELINE FOR SOLICITATION PROCESS... 3 2. OVERVIEW OF CYPRESS-FAIRBANKS ISD... 4 3. SCOPE OF SERVICES... 4 4. SERVICE REQUIREMENTS... 5 5. EVALUATION PROCESS... 7 6. STANDARD TERMS AND CONDITIONS... 7 7. SPECIAL TERMS AND CONDITIONS... 8 8. PROPOSAL GUIDELINES... 11 9. PROPOSAL SUBMISSION INSTRUCTIONS AND REQUIRED DOCUMENTS... 13 SUPPLEMENTAL FORMS RESIDENT PROPOSAL FORM... 15 FELONY CONVICTION NOTIFICATION... 16 CONFLICT OF INTEREST QUESTIONNAIRE... 17 VENDOR DEBARMENT STATEMENT... 18 PROPOSAL SUBMISSION FORM... 19 NO RESPONSE FORM... 20 Cypress-Fairbanks ISD #15-08-4501 RFQ (Financial Advisory Services) Page 2
1. TIMELINE FOR SOLICITATION PROCESS The timeline for the solicitation process is outlined below. Cypress-Fairbanks Independent School District reserves the right to make any changes as may be required and will notify all participants accordingly. July 28, 2015 (Tuesday) Solicitation issued August 4, 2015 (Tuesday) by 2:00 p.m. (CST) August 6, 2015 (Thursday) by 4:00 p.m. (CST) Deadline for vendor questions (Email questions to: Karen Smith, karen.smith1@cfisd.net ) NOTE: Reference 15-08-4501 RFQ Questions in the Subject line of your email. Questions & Answers will be posted at http://www.cfisd.net/en/about/financial-information/bidsand-proposals/ as an Addendum to the RFQ for all participating Firms to download/review August 12, 2015 (Wednesday) by 2:00 p.m. (CST) Deadline for submission of RFQ responses August 14, 2015 (Friday) Firms on-site interviews (if applicable) Location: CFISD (Houston, TX) Venue to be referenced in Firm invitation notice. NOTES: Date/time of interview will be assigned to each Firm and is non-negotiable. During interviews, CFISD reserves the right to negotiate the Firms proposed scope of services and fees. August 19, 2015 (Wednesday) Negotiation of scope of services and fees finalized with the most qualified Firm September 10, 2015 (Thursday) Board of Trustees Committee of the Whole to discuss recommendation for contract award September 14, 2015 (Monday) Board of Trustees Meeting (Approve/Reject recommendation for contract award) Series 2015-A Bond Parameter Order approval by Board of Trustees for new money/refunding bond sale scheduled for October 2015 September 15, 2015 (Tuesday) Finalize and execute contract Cypress-Fairbanks ISD #15-08-4501 RFQ (Financial Advisory Services) Page 3
2. OVERVIEW OF CYPRESS-FAIRBANKS ISD The Cypress-Fairbanks Independent School District serves over 113,000 pre-kindergarten through twelfth-grade students in a diverse and growing district comprising approximately 10% of Harris County that spans 186 square miles. Approximately 70% of the District s land area is developed. The District s 86 campuses include 24 schools constructed during the last decade and numerous renovations, which ensure that learning takes place in secure, technologically advanced and well-maintained facilities. CFISD s student average daily attendance has increased over 40% over a ten-year period and its enrollment is the third largest in the State. The campuses include 10 comprehensive high schools currently classified as 6A. CFISD also offers a high school of choice and flexibility that has a main focus of graduation leading to post-high school education and lifelong learning. In addition, the District has 18 middle schools, 53 elementary schools and 4 special program facilities. Woodard Elementary (elementary #54) is scheduled to open in August 2015. The District is primarily residential in character. The greatest need for classrooms due to student enrollment growth into the foreseeable future continues to be expected in the southwest part of the District. CFISD remains one of the fastest growing districts in the county. In preparation for a projected enrollment of 120,000 students, the voters passed a $1.2 billion bond referendum in May 2014. Proceeds of the referendum will be used to build new facilities; purchase school sites and buses; renovate instructional facilities; enhance safety and security at all campuses; and provide technology to accommodate new students and staff, replace aging technology, and increase student access to technology. Located within the District are numerous multi-use developments which include retail shopping centers, low to mid-rise office buildings, hotels, industrial parks, financial institutions, medical facilities, restaurants, and highdensity residential projects. The Cypress-Fairbanks community expects to maintain steady and sustained economic growth due in part to the relocation of key companies to Houston and the surrounding areas, positive trends in the housing market and partial completion of the Grand Parkway (State Highway 99). For additional information about Cypress-Fairbanks ISD, including demographics and various other facts and figures, please refer to the District s website at www.cfisd.net. 3. SCOPE OF SERVICES 3.1. INTRODUCTION: Cypress-Fairbanks ISD seeks to enter into a service contract with a single, highly qualified firm to provide Financial Advisory Services to the District. Firms interested in being considered for contract award should have significant experience and expertise in developing long-term financial plans, analyzing funding alternatives, and recommending debt financing strategies for mid-size to large fast growth Texas school districts. Beginning with your receipt of this notice and until a contract is fully executed between CFISD and the selected Financial Advisor, the District requests that Firms refrain from contacting members of the Board of Trustees or any members of the District administration except for the Assistant Superintendent of Business and Financial Services during this solicitation process. Failure to abide by this requirement may be considered grounds for immediate disqualification at the sole discretion of the CFISD Superintendent of Schools or designee. Cypress-Fairbanks ISD #15-08-4501 RFQ (Financial Advisory Services) Page 4
BACKGROUND AND OBJECTIVES: CFISD s last bond referendum was in May 2014 and is anticipated to facilitate the District s needs through 2020. The District currently has $90,030,000 authorized but unissued bonds remaining from the November 6, 2007 bond election and $1,036,280,500 in authorized but unissued bonds remaining from the May 10, 2014 bond election. CFISD has $114,680,000 variable rate unlimited tax school building bonds comprised of three subseries. These bonds were issued as term bonds scheduled to mature on February 15 of years 2036, 2040, and 2044, respectively. The District anticipates occasional refunding/advance refunding transactions when market conditions are favorable. The primary objectives for this project include: 1. Establish a contract with a highly qualified firm to provide financial advisory services over the term of the contract, including any renewal terms; 2. Shortly after contract execution, initiate planning for the CFISD s next bond sale in October 2015. 3.2. ROLE OF FINANCIAL ADVISOR: The Financial Advisor will furnish all required labor, materials, supplies, and travel required in connection with the project. 3.3. ROLE OF THE DISTRICT: CFISD will make available to Financial Advisor copies of any relevant reports, studies, or other resources as Contractor may reasonably need in fulfillment of its obligations under this contract. 4. SERVICE REQUIREMENTS 4.1. Firms responding to this solicitation may be asked to provide assistance in the provision of any or all of the following services on an ongoing basis for both competitive and negotiated transactions, as applicable (this list of services is not all-inclusive): 4.2. DEVELOP AND RECOMMEND A FINANCING PROGRAM FOR THE DISTRICT: 4.2.1. Review financial goals of district and make recommendations which encompass future expenditure needs, as requested; 4.2.2. Review and analyze existing debt and make recommendations for refunding, if appropriate; 4.2.3. Analyze and present a full range of debt alternatives available; 4.2.4. Analyze and review available debt structures; 4.2.5. Review available arbitrage rebate avoidance strategies; 4.2.6. Perform other related activities, as required. 4.3. PLAN AND ASSIST DISTRICT IN HOLDING A BOND ELECTION, IF APPLICABLE: 4.3.1. Prepare bond election strategy for administration; 4.3.2. Prepare bond election strategy for Board of Trustees; 4.3.3. Consult on timetable and schedule of events; 4.3.4. Consult with Bond Advisory Committee; 4.3.5. Attend community meetings and forums and make presentations, as necessary; 4.3.6. Assist in determining the optimum timing of bond election; 4.3.7. Coordinate with bond counsel regarding all legal requirements and Justice Department approval; 4.3.8. Perform other related activities, as required. Cypress-Fairbanks ISD #15-08-4501 RFQ (Financial Advisory Services) Page 5
4.4. CONSULT WITH DISTRICT AND TEA REGARDING EDA STATE FUNDING TO BE RECEIVED: 4.4.1. Ensure district is within the requirements to qualify for maximum EDA funding, as appropriate; 4.4.2. Perform other related activities, as required. 4.5. ADVISE THE DISTRICT ON THE FINAL FINANCING PLAN AND THE FOLLOWING: 4.5.1. Update financing plan based upon prevailing market conditions to minimize the interest cost given and the desired Interest & Sinking Fund tax rate; 4.5.2. Determine dollar amount of bonds to be sold; 4.5.3. Determine the debt structure i.e. fixed rate, variable rate, etc.; 4.5.4. Set financing terms such as call provisions, payment dates, security, mandatory redemption provisions, etc.; 4.5.5. Determine recommended sale date; 4.5.6. Determine appropriate method of sale i.e. competitive vs. negotiated; 4.5.7. Perform other related activities, as required. 4.6. COORDINATE THE DISTRICT S FINANCING TEAM: 4.6.1. Coordinate with bond and disclosure counsels to ensure all legal requirements are met; 4.6.2. Assist with selection of underwriting team, if necessary; 4.6.3. Assist in the selection of other service providers including, but not limited to, paying agent/registrar, verification agent, etc., and coordinate Requests for Proposals as necessary; 4.6.4. Apply for and coordinate the Permanent School Fund Guarantee or municipal bond insurance policy, as applicable; 4.6.5. Perform other related activities, as required. 4.7. PREPARE MARKETING DOCUMENTATION: 4.7.1. Prepare official statement, notice of sale, bid form, and certificate of underwriter; 4.7.2. Determine continuing disclosure requirements; 4.7.3. Perform other related activities, as required. 4.8. CONDUCT CREDIT RATING PROCESS: 4.8.1. Consult with District regarding financial, administrative, debt and economic credit factors; 4.8.2. Develop action plans to obtain District s credit rating goals; 4.8.3. Prepare draft of presentation materials for rating agency presentations; 4.8.4. Coordinate personal rating agency presentation; 4.8.5. Perform other related activities, as required. 4.9. CONDUCT MARKETING AND DEBT SALE: 4.9.1. Mail official statement to potential purchasers; 4.9.2. Develop market interest in District s debt sale; 4.9.3. Conduct sale of debt; 4.9.4. Recommend acceptance/rejection of financing based upon prevailing market conditions; 4.9.5. Prepare Pricing Book detailing the financing results and comparing results to recent comparable Texas debt offerings; 4.9.6. Prepare and provide District s outstanding debt service in total and by series to assist in tracking debt service requirements on an annual basis; Cypress-Fairbanks ISD #15-08-4501 RFQ (Financial Advisory Services) Page 6
4.9.7. Close transaction; 4.9.8. Perform other related activities, as required. 4.10. CONTINUING DISCLOSURE: 4.10.1. Annually in conjunction with disclosure counsel, assist District with Continuing Disclosure documentation from information obtained from TEA, Appraisal Districts, Audited Financial Statements, and the District; 4.10.2. Provide a listing of applicable SID s and NRMSIR s for the District s submission; 4.10.3. Provide format for District to annually meet its continuing disclosure requirements ; 4.10.4. Prepare Draft of Material Event Notice, upon notification from District; 4.10.5. Perform other related activities, as required. 4.11. LONG-RANGE STRATEGIC FINANCIAL PLANNING: 4.11.1. Consult and assist in the development of a long-term financial plan based upon various assumptions provided by the District; 4.11.2. Perform other related activities, as required. 5. EVALUATION PROCESS The review of RFQ responses received will determine the provider most capable of delivering the "best overall value" to the District, consistent with the requirements herein and as evidenced by the respondent s experience and expertise in providing the type and scope of services required within this solicitation. Upon review of the statements of qualifications received, Cypress-Fairbanks ISD may, at its sole discretion, invite one or more firms to be interviewed before making a final selection. If the District desires an interview, the firm will receive notification of the date and time. Statements of qualifications will be evaluated based on the following criteria: 1. (30 points) Overall demonstrated competence and qualifications in providing financial advisory services; 2. (30 points) Overall experience and expertise as financial advisor to Texas public school districts, including CFISD, if applicable; 3. (30 points) Firm s overall reputation, size, structure, and financial stability; 4. (10 points) Firm s scope of financial advisory services available for consideration by the District and associated fees; The District will make its selection of the most qualified firm based upon the demonstrated competence and qualifications of the respondents to perform the required services for a negotiated, fair and reasonable fee that is deemed in the best interest of the District. If either the scope of services or fees offered by a Firm cannot be agreed to by the District, negotiations with such Firm will be ended formally by the District and negotiations will be initiated with the next most qualified Firm until a mutually agreed upon contract is negotiated. 6. STANDARD TERMS AND CONDITIONS Firms or authorized representatives are expected to inform themselves as to all terms and conditions, requirements, and specifications contained within this solicitation and associated documents prior to submitting a proposal. Failure to do so will be at the proposer s own risk. Cypress-Fairbanks ISD #15-08-4501 RFQ (Financial Advisory Services) Page 7
In the event that the District selects a Firm to provide the products and/or services required within this solicitation, a written contract shall be executed between both parties prior to commencement of any services. 7. SPECIAL TERMS AND CONDITIONS In addition to the Standard Terms & Conditions referenced above, the following special terms and conditions ( Special Terms & Conditions ) shall apply to this solicitation and/or the resulting Agreement, where applicable. In the event of any conflict between provisions, the provisions referenced in the Special Terms & Conditions shall prevail. 7.1. CONTRACT TERM: Unless otherwise agreed to by the District, the initial contract term shall be for a period of either three (3) years or five (5) years from the effective date referenced in the Agreement executed by both parties (the Initial Term ). Thereafter, unless otherwise terminated in accordance with the termination provisions referenced in this solicitation, the Agreement shall auto-renew for successive one (1) year terms (the Renewal Term ) upon the District s acceptance and payment of a renewal invoice for any renewal fees then due. In the event the District agrees to a multi-year agreement, the following terms and conditions shall apply: 7.1.1. The District s fiscal school year extends from July to June 30 (For example, the 2014-2015 fiscal school year extends from July 1, 2014 through June 30, 2015). 7.1.2. Goods and/or services to be provided by Firm in fiscal school years subsequent to the fiscal year in which the Agreement went into effect are dependent upon the District s appropriation and allotment of funds to cover the ongoing costs of the Agreement. 7.2. CONTRACT TERMINATION: The contract award or the Agreement resulting from this solicitation may be terminated or cancelled under the following circumstances: 7.2.1. District may cancel or terminate the award or all, or any undelivered part, of the Agreement for convenience upon thirty (30) days written notice to Firm. 7.2.2. During any term of the Agreement, District may terminate the Agreement at the expiration of each District budget period if funds are not appropriated or allocated for payment of the Agreement. 7.2.3. For breach of contract by Firm, immediately upon Firm s default or breach under the Agreement, so long as District provides Firm written notice and thirty (30) days in which to cure such default to the reasonable satisfaction of the District. Breach of contract includes, but is not limited to, breach of warranties by Firm or if Firm becomes insolvent or begins bankruptcy or reorganization proceedings. 7.2.4. District s rights of termination or cancellation are in addition to other remedies District may have in law or equity. Regardless of the reason for termination, the District s responsibility under the Agreement will be limited to payment for only those services performed and/or products delivered through the effective date of termination. Under no circumstances will Firm be entitled to payment for anticipated profits, unabsorbed overhead, or interest on borrowing by reason of such termination. 7.3. APPROPRIATION AND ALLOTMENT OF FUNDS: Performance by CFISD under the Agreement may be dependent upon the appropriation and allotment of funds by the Texas State Legislature (the Legislature ) and/or allocation of funds by the Board of Trustees of the CFISD (the Board ). If the Legislature fails to appropriate or allot the necessary funds, or the Board fails to allocate the necessary funds, then CFISD may terminate this Agreement without further duty or obligation under the Agreement. Firm acknowledges that appropriation, allotment, and allocation of funds are beyond the control of CFISD. Cypress-Fairbanks ISD #15-08-4501 RFQ (Financial Advisory Services) Page 8
7.4. PRICING: The pricing offered by Firm shall remain firm for the life of the initial term of the Agreement, except for price decreases, which may be offered to District at any time over the term of the Agreement. Price increases may only be considered at the renewal points, at which time such price increase requests shall be followed by proper justification. The District reserves the right to negotiate any price increase requests, but shall not be obligated to accept any price increases. Unless specific market conditions exist which may have a significant impact on the Firm s costs associated with providing the products and/or services under the Agreement, any price increases shall be no greater than the maximum per unit increase over the previous year of 3% or Consumer Price Index (CPI), whichever the greater. 7.5. BEST VALUE INCENTIVES: Special consideration may be given to Firms who propose Best Value Incentives ( Incentives ) at no additional cost to Cypress-Fairbanks ISD. Incentives are considered to be services offered beyond the norm and not the standard level of service offered to most other clients of the Firm. Examples of Incentives include, but are not limited to, free Continuing Education training, free consulting services, customized reporting, etc. 7.6. MOST FAVORED CUSTOMER STATUS: Firm warrants that the pricing and product/service warranties offered in their proposal to this solicitation are equal to or better than those offered to the Firm s most favored customer of similar size and scope of products/services as those requested by the District in this solicitation. 7.7. PERFORMANCE STANDARDS: The successful Firm, including its principals, employees, agents, and/or subcontractors, shall perform all services in a timely manner with professional skill, competence, and integrity and in accordance with generally accepted practices of, and pursuant to a standard of care exercised by professionals providing similar services under like circumstances. Cypress-Fairbanks ISD reserves the right to evaluate the successful Firm s performance and to provide reasonable recommendations for improvement, and Firm shall comply with all such reasonable recommendations in support of providing optimum quality of services to the District. Failure of Firm to comply with these standards of service shall be considered a breach of contract and may result in termination of the contract. 7.8. ABANDONMENT: A Firm who abandons or defaults the work on the contract and causes CFISD to purchase the services elsewhere may be charged the difference in service, if any, and shall not be considered in the re-advertisement of the service and may not be considered in future bids for the same type of work unless the scope of work is significantly changed. 7.9. COMPLIANCE WITH LAWS: The successful Firm warrants that it shall comply with all federal, state, and local laws, statutes, ordinances, rules and regulations, and the orders and decrees of any court or administrative bodies or tribunals in any matter affecting the performance of the resulting agreement, including without limitation, workers compensation laws, minimum and maximum salary and wage statutes and regulations, and licensing laws and regulations. When requested, Firm shall furnish CFISD with satisfactory proof of its compliance. 7.10. CODES, PERMITS, AND LICENSES: The successful Firm shall comply with all national, state, and local standards, codes and ordinances and the terms and conditions of the services of CFISD, as well as other authorities that may have jurisdiction pertaining to equipment and materials used and their application. None of the terms or provisions of the specifications shall be construed as waiving any rules, regulations, or requirements of these authorities. The successful Firm shall be responsible for obtaining all necessary permits, certificates and/or licenses to fulfill contractual obligations. Cypress-Fairbanks ISD #15-08-4501 RFQ (Financial Advisory Services) Page 9
7.11. INSURANCE REQUIREMENTS: The successful Firm, at his/her own expense, shall provide and maintain insurance with fiscally sound firms (at least an AM Best rating of A ) authorized to do business in Texas as follows: successful Firm will be required to provide a copy of insurance coverage to District; insurance certificates may contain a provision, or Firm s digital signature on this solicitation certifies, that coverage afforded under the policies will not be cancelled or non-renewed until at least thirty (30) days prior written notice has been given to District; insurance coverage must remain in effect for the duration of this contract; and Cypress-Fairbanks ISD shall be named as an additional insured on the Firm s insurance certificate. Automobile Liability Comprehensive (Commercial) General Liability including Products, Completed Operations, Independent Contractors, Broad Form Property Damage, Pollution and Blanket Contractual Liability coverage. $1,000,000 Combined Single Limit $1,000,000 Aggregate, Occurrence and Personal Injury $ 500,000 Fire Damage $ 5,000 Medical Payments Per Project Aggregate Professional Errors & Omissions Liability One time project amount; $2,000,000 Occurrence & Aggregate minimum, $5,000,000 Maximum Limit Retroactive Date preceding date of contract must be shown Extended reporting period three years past completion of contract Workers Compensation insurance with limits to comply with the requirements of the Texas Workers' Compensation Act. Statutory Limits Employers Liability Limits $1,000,000 7.12. PROPOSALS TO BE HELD FIRM FOR 90 DAYS: All proposals submitted in response to this solicitation are considered an offer. All offers, including pricing, terms, and conditions must be held firm for a minimum of ninety (90) days from the date of Bid Opening. 7.13. FIRMS FULLY RESPONSIBLE FOR COST OF PROPOSALS: The District accepts no financial responsibility for any costs incurred by the Firm in the course of responding to this solicitation. 7.14. LIMITATIONS: This solicitation is not an offer by the District to contract with any party responding to it. This solicitation does not commit the District to award a contract or to reimburse any Firm for costs incurred in submitting a proposal. The District, in its sole discretion, reserves the right to reject any or all proposals received, to negotiate some or all elements of a proposal and/or proposed contract with any Firm, to waive any technicalities and formalities, to extend the deadline to submit a proposal, or to amend or cancel in part or in its entirety this solicitation. Cypress-Fairbanks ISD #15-08-4501 RFQ (Financial Advisory Services) Page 10
7.15. GOVERNING LAW & VENUE: This solicitation and any resulting contract will be governed by and construed in accordance with the Constitution and laws of the State of Texas, without regard to its conflict of laws rules. The exclusive venue of any dispute or legal proceeding relating to this solicitation or any related contract will be Harris County, Texas. 8. PROPOSAL GUIDELINES Statements of qualification must include the requested information referenced in each section and corresponding subsections and must be organized in the same numbering sequence, including the same header titles. Special Instructions: Responses must be clear and concise, yet comprehensive. 8.1. FIRM PROFILE: 8.1.1. Describe the overall organization, date founded, and ownership of your Firm as well as any subsidiaries and affiliates. Include firm size, structure, location of executive and mid-management personnel; 8.1.2. Provide details on the qualifications of the Firm, including the Firm s authorization to do business in Texas, experience with similar work, experience with major rating agencies, financial institutions, and investors during the past two (2) years; 8.1.3. Provide a description of how the Firm s structure and resources will be utilized on behalf of the District; 8.1.4. Upon review of the Service Requirements specified in Section 4 of this solicitation, provide a statement acknowledging your Firm s qualifications and experience in providing such variety of services. If any of the services listed in Section 4 are beyond the scope of services offered by your organization or beyond the required knowledge and/or skill of your personnel, you shall disclose such limitations in their entirety; 8.1.5. Describe the experience of the Firm in serving as financial advisor for municipalities and other public entities, in particular Texas K-12 public school districts with a minimum Average Daily Enrollment (ADA) of 40,000 students; 8.1.6. Describe any SEC or regulatory censure or litigation involving institutional business your Firm conducts with governmental investors at this time or within the past two years; 8.1.7. Describe why any accounts, if any, have dropped the Firm in the past three (3) years. Include the organization name and contact information for any such firms; 8.1.8. State whether, in the last five (5) years, your Firm has been disciplined for violation of, or found non-compliant with, applicable standards or laws regulating your business, whether those findings were made by a regulatory agency, a peer group, or otherwise. For each such instance, state the nature of the violation and the date of its resolution, together with the contact person for the Firm who could address any questions about the matter; 8.1.9. Provide proof of current, in force insurance policy covering errors and omissions, liability and comprehensive general liability, and indicate the amounts of such coverage. 8.2. PERSONNEL: 8.2.1. Identify the size of the Firm s staff commitment to the public sector; 8.2.2. Include resumes of the key professional(s) who will be assigned to work directly with Cypress- Fairbanks ISD and identify the location of their office. Lead (primary) and backup (secondary/alternate) personnel shall be clearly identified. Include their relationship to your organization (i.e. employee, independent agent, etc.), areas of expertise, years of financial advisory experience and experience with various types of bond issues they have been involved in; Cypress-Fairbanks ISD #15-08-4501 RFQ (Financial Advisory Services) Page 11
8.2.3. For the lead professional to be assigned to Cypress-Fairbanks ISD, provide a list of the names of school district clients, the number of Texas school district financing transactions for the last three (3) years, the dollar amount of those transactions, and the type of transactions (new money, refunding, etc.); 8.2.4. Provide a statement of availability of key personnel. If offices are not maintained in the immediate local area (Houston, TX), include a statement to address their accessibility by Cypress-Fairbanks ISD and their commitment to a high level of service; 8.2.5. Disclose if any of the above personnel have ever been investigated for alleged improper, fraudulent or unfair activities/practices related to the sale of securities. If so, please provide details; 8.2.6. Describe efforts your Firm makes to keep its investment professionals informed of developments relevant to government investment managers. 8.3. FIRM EXPERIENCE: 8.3.1. Discuss the Firm s approach in assisting the District with the selection of underwriters for negotiated bond sales; 8.3.2. Discuss the Firm s experience with rating agencies, the Firm s familiarity with the credit rating process, and the Firm s approach to rating agency presentations; 8.3.3. Discuss the Firm s relevant innovative financing experience including innovations previously developed, either individually or jointly, as related to tax-exempt securities, including the results and success of such innovations; 8.3.4. Describe the Firm s experience in refunding school debt, including: 8.3.4.1. Under what circumstances would you recommend a refunding and what criteria would you use to determine the appropriateness of a refunding? 8.3.4.2. Under what circumstances would you recommend utilizing a competitive sale for a refunding transaction? 8.3.4.3. Under what circumstances would you recommend utilizing a negotiated sale for a refunding transaction? 8.4. REPORTING: 8.4.1. Perform an analysis of the District s current debt and provide recommendations for possible refunding and restructuring opportunities (NOTE: The District s most recent Comprehensive Annual Financial Report (CAFR) and various other financial information is available under the Financial Transparency section of the CFISD website and may be accessed by clicking on the following link: http://www.cfisd.net/en/about/financial-information/budget/ ; 8.4.2. Describe and submit samples of the reports that would be provided and their frequency. Include the methods and formulas used to calculate yield and performance. 8.5. FEES: Firms must disclose their compensation method(s), fees, and other relevant information associated with any financial advisory services it would render to CFISD in fulfillment of its obligations under the contract resulting from this solicitation. 8.5.1. The District will consider entering into either a three (3)-year or five (5)-year contract. Firms fees should reflect discounted rates based on both a 3-year and 5-year initial contract term with subsequent annual renewal options; 8.5.2. Provide the Firm s Financial Advisory fee schedule for services related to debt issuance (contingent on bond sale) and for services unrelated to debt issuance (not contingent on bond sale) and describe the basis on which the fees are calculated. Details of any alternate method of Cypress-Fairbanks ISD #15-08-4501 RFQ (Financial Advisory Services) Page 12
compensation such as hourly fees, per bond basis, or annual retainers your Firm would consider shall also be disclosed; 8.5.3. List all expenses pertaining to a bond issue that will be reimbursable to the District. Example: bond printing, bond counsel, official statement printing, bond election expenses, bond ratings and related expenses, etc.; 8.5.4. Describe the fee structure offered to the District in comparison to other current or past contracts of similar size and scope. 8.6. ADDITIONAL INFORMATION: Provide any other pertinent information that would be helpful in assessing the Firm s ability to perform financial advisory services to CFISD (optional). 8.7. REFERENCES: List five (5) references of Texas public school districts. Only include districts where the lead professional to be assigned to CFISD has served as financial advisor in the last three (3) years. All references shall have a current address, telephone number, and email address. 9. PROPOSAL SUBMISSION INSTRUCTIONS AND REQUIRED DOCUMENTS All Firms submitting a proposal shall review and abide by the instructions referenced herein: 9.1. DEADLINE FOR SUBMISSION OF PROPOSALS ( BID OPENING ): Responses to this Request for Statement of Qualifications will be received until 2:00 p.m. (CST) on Wednesday, August 12, 2015. Responses received after this time will not be considered. 9.2. WITHDRAWING ( RETRACTING ) PROPOSALS: Submissions of Statement of Qualifications, once received by Cypress-Fairbanks ISD, may not be modified or withdrawn. 9.3. NOTICE OF NO PROPOSAL: Should you opt not to participate, please submit the No Proposal Notification form and provide a brief explanation as to your decision not to participate. 9.4. PROVIDE REQUIRED DOCUMENTS AS INSTRUCTED HEREIN: This solicitation requires proposing Firms to provide the documents listed below. Any required documents not provided by the proposing Firm may be grounds for disqualification from continued participation in this solicitation. 9.4.1. Firm s Statement of Qualifications ( Proposal or Offer ) Firms to submit a statement of qualifications, per the requirements and specifications listed in Section 8 ( Proposal Guidelines ) of this solicitation document. Ensure to address all subsections and label them accordingly in your response (e.g. 8.1.2., 8.2.3., etc.). 9.4.2. Firm s Services Contract Sample (Contract Specimen) Firm must provide a blank specimen of its organization s standard Services Contract documents that the Firm may use in its engagements with its clients (i.e. Professional Services Contract, etc.). o Special Instructions / Comments: The District, at its sole discretion, will decide whether to use its own Services Contract, the Firm s contract, or a hybrid version of both contracts. 9.4.3. Resident Proposal Form A blank version of this form is provided within this solicitation document and must be completed, signed, and submitted with RFQ proposal. 9.4.4. Felony Conviction Notification A blank version of this form is provided within this solicitation document and must be completed, signed, and submitted with RFQ proposal. Cypress-Fairbanks ISD #15-08-4501 RFQ (Financial Advisory Services) Page 13
9.4.5. Conflict of Interest Questionnaire You are required to complete the online Form E-CIQ, Conflict of Interest Questionnaire prior to the bid opening date. The form and instructions can be found on our website under the tab Conflict of Interest, https://app.cfisd.net/ciq/index.aspx. 9.4.6. Vendor Debarment Statement A blank version of this form is provided within this solicitation document and must be completed, signed, and submitted with RFQ proposal. 9.4.7. Proposal Submission Form A blank version of this form is provided within this solicitation document and must be completed, signed, and submitted with RFQ proposal. 9.4.8. No Response Form Return this form only if you choose not to submit a response to this solicitation. Cypress-Fairbanks ISD #15-08-4501 RFQ (Financial Advisory Services) Page 14
RESIDENT PROPOSAL FORM If you or your company own real or personal property within Cypress-Fairbanks ISD boundaries, please provide the address(es) and HCAD tax account number(s). If none, please indicate under item B. A. Address HCAD Tax Account Number (13 digits) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. List additional account numbers on a separate page. Additional accounts are listed Yes No B. There is no real or personal property located in Cypress-Fairbanks ISD boundaries to report. Signature of Authorized Agent Date I, the undersigned for the firm named below, certify that the information concerning notification of real or personal property located within Cypress-Fairbanks ISD boundaries is true to the best of my knowledge and have completed either item A or B above. Vendor (Company) Name Signature of Authorized Agent Date Note: This form must be executed and submitted with RFQ Proposal Form. Cypress-Fairbanks ISD #15-08-4501 RFQ (Financial Advisory Services) Page 15
FELONY CONVICTION NOTIFICATION State of Texas Legislative Senate Bill No. 1, Section 44.034, Notification of Criminal History, Subsection (a), states a person or business entity that enters into a contract with a school district must give advance notice to the district if the person or an owner or operator of the business entity has been convicted of a felony. The notice must include a general description of the conduct resulting in the conviction of a felony. Subsection (b) states a school district may terminate a contract with a person or business entity if the district determines that the person or business entity failed to give notice as required by Subsection (a) or misrepresented the conduct resulting in the conviction. The District must compensate the person or business entity for services performed before the termination of the contract. This Notice is not required of a Publicly-Held Corporation. I, the undersigned agent for the firm named below, certify that the information concerning notification of felony convictions has been reviewed by me and the following information furnished is true to the best of my knowledge. Vendor s Name: Authorized Company Official s Name (Printed): A. My firm is a publicly held corporation; therefore, this reporting requirement is not applicable. Signature of Company Official: B. My firm is not owned or operated by anyone who has been convicted of a felony. Signature of Company Official: C. My firm is owned or operated by the following individual(s) who has/have been convicted of a felony: Name of Felon(s): Details of Conviction(s): Signature of Company Official: Note: This form must be executed and submitted with RFQ Proposal Form. Cypress-Fairbanks ISD #15-08-4501 RFQ (Financial Advisory Services) Page 16
CONFLICT OF INTEREST QUESTIONNAIRE REQUIREMENT The Texas Senate passed House Bill No. 914, adding Chapter 176 to the Local Government Code, and imposing new disclosure and reporting obligations on vendors and potential vendors to local government entities beginning on January 1, 2006. This requirement includes school districts. You are required to complete the online Form CIQ, Conflict of Interest Questionnaire prior to the bid opening date. The form CONFLICT and instructions OF INTEREST can be found QUESTIONNAIRE on our website under REQUIREMENT the tab Conflict of Interest, https://app.cfisd.net/ciq/index.aspx. Note: This form must be executed electronically and must be completed each and every school year. CFISD must have one on file with a date of June 1, 2015 or after. Cypress-Fairbanks ISD #15-08-4501 RFQ (Financial Advisory Services) Page 17
VENDOR DEBARMENT STATEMENT I have read the conditions and specifications provided in the proposal document attached. I affirm, to the best of my knowledge, the company I represent has not been debarred or suspended from conducting business with school districts in the State of Texas. This certification is required by the regulations implementing Executive Order 12549, Debarment and Suspension, 7 CFR Part 3017, Section 3017.510, Participants responsibilities. The regulations were published as Part IV of the January 30, 1989, Federal Register (pages 4722-4733). Copies of the regulation may be obtained by contacting the Department of Agriculture Agency with which this transaction originated. NAME OF COMPANY (Please Type) MAILING ADDRESS CITY STATE ZIP PREPARED BY (Please Type) SIGNATURE TITLE TELEPHONE NUMBER FAX NUMBER DATE Check here if you have an address or telephone number change: Yes No Note: This form must be executed and submitted with RFQ Proposal Form. Cypress-Fairbanks ISD #15-08-4501 RFQ (Financial Advisory Services) Page 18
PROPOSAL SUBMISSION FORM Financial Advisory Services Request for Qualifications #15-08-4501RFQ Please Print Whereas on the day of, 2015 (print name of company) has reviewed RFQ and has responded in accordance with the terms and conditions which are incorporated herein. A copy may be obtained at http://www.cfisd.net/en/about/financial-information/bids-andproposals/ or by contacting the Cypress-Fairbanks ISD Director of Purchasing listed on the cover sheet. Any exception to the terms and conditions must be included in the firm s response. Texas Education Code 44.031 Purchasing and Acquisition, CFISD Policy CH (Legal) Purchasing and Acquisition, CFISD Policy CH (Local): Street Address City, State, Zip Code Telephone Number Fax Number Name of Authorized Individual Signature of Authorized Individual Cypress-Fairbanks ISD #15-08-4501 RFQ (Financial Advisory Services) Page 19
NO RESPONSE FORM RETURN ONLY IF YOU CHOOSE NOT TO SUBMIT A RESPONSE TO THIS SOLICITATION Financial Advisory Services Request for Qualifications #15-08-4501RFQ Please Print Whereas on the day of, 2015 (print name of company) has reviewed CFISD s solicitation #15-08-4501RFQ and elects not to submit a proposal: State the reason(s) for not submitting a proposal: Street Address City, State, Zip Code Telephone/Fax Number Name of Authorized Individual Signature of Authorized Individual -- End of Solicitation document. -- Cypress-Fairbanks ISD #15-08-4501 RFQ (Financial Advisory Services) Page 20