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CITY 4F PALM DESERTlPALM DESERT REDEVELOPMENT
AGENCYlPALM DESERT FINANCING AUTHORITY
STAFF REPORT
REQUEST: SELECTION OF FIRMS TO BE INCLUDED IN THE INVESTMENT
BANKING POOL FOR THE CITY OF PALM DESERT AND THE
PALM DESERT REDEVELOPMENT AGENCY
SUBMITTED BY: DENNIS M. COLEMAN, REDEVELOPMENT/HOUSING FINANCE
MANAGER
DATE: JULY 14, 2005
Recommendation:
That the City Council, the Redevelopment Agency Board, and the Financing
Authority approve the recommended firms to be inciuded in the Investment
Banking Pool for the City and the Redevelopment Agency bond issuance.
Executive Summary
Approval of this item will establish a pool of eligible investment banking firms to be utilized
in future bond issues for the City and Agency.
Discussion:
It has been expressed that it would a good idea to open the investment banking business
to competition in order to assure that the City and Agency receive excellent service and
pricing in their respective bond issues. On April 19, 2005, staff issued a Request for
Qualifications (RFQ) for investment banking services. Staff issued the RFQ to sixteen (16)
investment banking firms. On May 13, 2005, staff received thirteen (13} Statements of
Qualifications (SOQ).
The following firms submitted SOQs:
Kinsell, Newcomb 8� DeDios/Stinson Securities
Citigroup Global Markets, Inc.
Wedbush Morgan Securities
UBS Financial Services, Inc.
Stone & Youngberg
First Albany Capital
De La Rosa Investment Bankers
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Approval of an Investment Banking Pool for the City, Redevelopment Agency and
Financing Authority
July 14, 2005
Page 2
RBC Dain Rauscher
Piper Jaffray
Hoefer & Arnett Public Finance
Brandis Tallman, LLC
A.G. Edwards/Backstrom, McCarley, Berry & Co., LLC
Newman & Associates, Inc.
Staff evaluated the SOQs based on the following:
1) The firm's experience in issuing Tax Allocation and Limited Obligation
Improvement Bonds
2) The firm's ability to structure, price and sell the bond issue
3) The qualifications and experience of the assigned professional
4) Customer service and responsiveness to client needs
5) Cost of services
The subcommittee assigned by the Investment & Finance Committee, along with the City's
financial advisor, met on June 9, 2005 to review the SOQs received and select a firm to
recommend for inclusion to the pool. The subcommittee discussed the strengths and
weaknesses of each firm in terms of how they matched up with the needs of the City and
the Redevelopment Agency.
The subcommittee selected the following �rms for inclusion in an investment banking pool:
Citigroup Global Markets, Inc.
Stone & Youngberg
Piper Jaffray
Kinsell, Newcomb and DeDios/Stinson Securities
Wedbush Morgan Securities
Newman & Associates, Inc. (Housing only)
The subcammittee felt that the firms selected would provide the City and the Agency with
a good poo! that could be utilized to issue the Tax Allocation Bonds and the Limited
Obligation Bonds for Assessment Districts. The firms were selected based on their
experience and capabilities to structure, price and sell our bond issues.
The Investment & Finance Committee reviewed the selection of firms recammended to be
included in the Investment Banking Pool. They voted unanimously to recommend to the
City Council and Redevelopment Agency Board that the investment banking pool be
approved as presented.
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Approval of an Investment Banking Pool for the City, Redevelopment Agency and
Financing Authority
July 14, 2005
Page 2
Staff is recommending that the City Council and Redevelopment Ageney Board approve
the recommended firms to be included in the investment Banking Pool.
Submitted By:
Dennis M. Coleman
Redevelopment Finance Manager
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Department Head:
David Yri n /
Director Redevelopment/Housing
Paul S. Gibson, Director of Finance
Carlos L. O ga
City Manager/Executive Director
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Approval: