**IMPORTANT NOTICE**

ONLINE BIDDING PROCESS

  • Responses must be submittedonline through Alameda CountyStrategic Sourcing Supplier Portal.
  • Alameda County will not accept submissions or documentation after the bid response due date. Successful uploading of a document does not equal acceptance of the document by Alameda County.

RFI No. 90XXXX

Page 1

COUNTY OF ALAMEDA

REQUEST FORPRE-QUALIFICATION No.901364

for

MUNICIPAL BOND UNDERWRITING SERVICES

Any Request for Quotation (RFQ) issued as a result of this Request for Pre-Qualification (RFPQ) will be issued electronically via e-mail. This RFPQwill be posted on the General Services Agency Current Contracting Opportunities website located at: . Please visit the website for further information regarding this project, or contact the person listed below.

Contact Person: Evelyn Benzon, Procurement & Contracts Specialist

Phone Number: (510)208-9622

E-mail Address:

RFPQ RESPONSE DUE

by

2:00 p.m.

on

September 1, 2015

Alameda County, GSA–Procurement & Support Services

Strategic Sourcing Supplier Portal

Alameda County is committed to reducing environmental impacts across our entire supply chain.

If printing this document, please print only what you need, print double-sided, and use recycled-content paper.

  1. INTENT

The intent of this Request for Pre-Qualification (RFPQ) is to establish a pool of qualified vendors to provide municipal bond underwriting services for future debt financing.

Only vendors in the pool will be allowed to participate in anyfuture County’s underwriting bidsand their pre-qualification status is valid for three (3) years.

The County of Alameda does not guarantee that a subsequent RFQ will be issued. Should an RFQ be issued, the terms and conditions described in this RFPQ are not guaranteed to remain exactly the same.

  1. SCOPE

The County of Alameda is interested in securing the services from aselected pool of underwriter service firmsfor the purpose of assisting the Board of Supervisors, the County Administrator, Auditor-Controller, County Counsel, and other County partners, in meeting the County’s debt financing goals.

The selected pool of underwriting firms may be appointed to serve as underwriters for future debt financing and refunding opportunities on an as-needed basis over a three-year period. The number of debt financings to be completed during this period cannot be determined, but could include a variety of capital projects and refunding’s or other transactions as the opportunities arise.

  1. BACKGROUND

The County of Alameda was established in 1853 and is currently the 7th most populous County in California, with 14 incorporated cities and several unincorporated communities. Alameda County has a population in excess of 1,500,000, and is one of the most ethnically diverse regions in the Bay Area. The County has an approved budget of $2.7 billion for fiscal year 2015-16, and actively manages a debt portfolio comprised in part of certificates of participation, lease revenue, pension obligation and tax increment bonds, and commercial paper.

  1. VENDOR QUALIFICATION CRITERIA

1.Bidder and/or all key personnel assigned to the project shall be regularly and continuously engaged in the business of providing bond underwriting servicesparticularly California municipal/local government issuer bonds.

2.Bidder shall possess all permits, licenses and professional credentials necessary to perform services as specified under this RFPQ.

  1. SPECIFIC REQUIREMENTS

Bidder must demonstrate the firm has thecapacity to meet the range of responsibilities associated with underwriting municipal securities. With respecttospecificfinancings,theseresponsibilitiesmayincludethefollowing:

  1. AdvisingandassistingtheCountyinformulatingandexecutingadebt-financingplan.Recommendingamaturityschedule,redemptionterms,callpremiums,investmentoptionsandotherstructuralaspectsoftheissue,whichresultsinthemostcost-effectiveandefficientfinancingstructure;
  1. Reviewingandassessingtheavailableandprojectedcashflowfromtheunderlyingprojectsand othersources of revenueto support the proposed debtservices on thebonds;
  1. AssessingtheoptimaluseofinnovativeproductsthatmaybeofbenefittotheCountyasrelated to thesefinancings;
  1. Obtainingthenecessarycreditenhancements,orstructuringtheissuewithoutcreditenhancementinafashionthatassuresthemaximumfeasibleinvestmentgraderatingonthebonds;
  1. Participatinginallactivitiesassociatedwithbondratingagency’sreviewprocess,includingpreparationofratingagency’spresentationmaterials,arrangementsofratingmeetings,andfollowingup with regards to ratingagency’s questions andissues;
  1. Recommendingamarketingplanthatwouldresultinthemostfavorabletermsandcostofthefinancing.Theplanshouldassessallrelevantbondmarketconditionstorecommendtimingand pricingof thebond sale;
  1. Assistingbondandunderwriters’counselinthepreparationofdocumentationforthefinancing.ReviewingandcommentingonallrelevantlegaldocumentsrelatedtotheCounty’sdebtissuances,includingbutnotlimitedtoleaseagreements,bondresolutions,indentures,andthearbitragetaxcertificate.AssistinginthepreparationofthePreliminaryandFinalOfficeStatementsand distributingthese documents to potentialinvestors;
  1. Marketingthebondstoinstitutionalandretailcustomers,developingpreliminarycompensation,pricing,interestratescales,andunderwritingthebondsatmutuallyagreedupon pricing,andinterestratescalelevel;
  1. Ifrequired, serve as theremarketingagent forbonds sold in a variableratemode; and
  1. Managinganunderwritingsyndicate selectedbytheCountyto market thedebt obligations toinvestors(Senior or Co-SeniorManagers Only).
  1. EVALUATION CRITERIA
  1. Apanelwillreviewresponsesandwilldevelopashortlistofthemostqualifiedresponders.Thepanelmaychoosetointerviewthemostqualifiedresponders;intheeventthatinterviewsareheld,itwillbemandatoryfortheleadrepresentativeoftherespectiveorganizationstoattend.OnlythoseindividualswhowillbedirectlyinvolvedinworkingwiththeCountyshouldattendanyscheduledinterviews.
  1. Allresponseswillbevalidfora180-dayperiodfromtheduedateoftheRFPQ,andshouldbesignedbyanauthorizedofficialofthefirm.AfirmmaywithdrawitsresponsebywrittenrequesttotheCounty.
  1. TheCountyreservestherighttorejectanyresponse.AllresponsesbecomepartoftheCounty’spublic record.
  1. Response to this RFPQ will be evaluated according to the criteria listed below:
  1. Specialized experience and technical competence of the firm(s), record of performance, strength of key personnel identified in the proposal;
  1. Demonstration of the firm’s capacity to successfully underwrite the County’s tax-exempt and taxable debt, including the firm’s ability to distribute bonds both in California and nationally;
  1. The firm’s capital structure including total capital, equity capital, and uncommitted excess capital and how the firm has used that capital to support the sale and market distribution of municipal bonds;
  1. Knowledge and understanding of local environment and a local presence for working with County staff; and
  1. Organization, presentation and content of the proposal. The County reserves the right to:

(1)Request additional information from any firm prior to its selection;

(2)Select firms that will best meet the County’s needs; and

  1. Consider information about any firm from other sources in addition to the information submitted by the firm.
  1. COUNTY PROVISIONS
  1. Small Local Emerging Business Program: The County is vitally interested in promoting the growth of small and emerging local businesses by means of increasing the participation of these businesses in the County’s purchase of goods and services.

As a result of the County’s commitment to advance the economic opportunities of these businesses, Bidders must meet the County’s Small and Emerging Locally Owned Business requirements in order to be considered for the contract award. These requirements can be found online at:

For purposes of this bid, applicable industries include, but are not limited to, the following NAICS Code(s): 523110.

A small business is defined by the United States Small Business Administration (SBA) as having no more than the number of employees or average annual gross receipts over the last three (3) years required per SBA standards based on the small business's appropriate NAICS code.

An emerging business is defined by the County as having either annual gross receipts of less than one-half (1/2) that of a small business OR having less than one-half (1/2) the number of employees AND that has been in business less than five (5) years.

  1. COUNTY CONTACTS

Questions regarding this RFPQ must be submitted in writing by August 18, 2015 to Evelyn Benzon, . The County will answer answers the question thru an addendum and will be posted in the County’s website.

  1. ESTIMATED CALENDAR OF EVENTS:

Event / Date
Request for Pre-Qualification (RFPQ) Issued / August 12, 2015
RFPQ Response Due / September 1, 2015
Board Award Date / September 29, 2015
Pool Start Date / October 1, 2015

Note:Dates indicated are approximate.

  1. EVALUATION CRITERIA / SELECTION CRITERIA

All responses will be evaluated by a County Selection Committee (CSC). The County Selection Committee may be composed of County staff and other parties that may have expertise or experience in Municipal Underwriting Services. The CSC will score and recommend the prequalified Contractor in accordance with the evaluation criteria set forth in this RFPQ.

At the time services are required, the panel will interview the most qualified responders: it will be mandatory for the lead representative of the respective organizations to attend. Only those individuals who will be directly involved in working with the County should attend any scheduled interviews.

All contact during the evaluation phase shall be through the GSA–Procurement & Support Services department only. Bidders shall neither contact nor lobby evaluators during the evaluation process. Attempts by Bidder to contact and/or influence members of the CSC may result in disqualification of Bidder.

The CSC will evaluate each responses meeting the qualification requirements set forth in this RFPQ. Bidders should bear in mind that any responses that is unrealistic in terms of the technical or schedule commitments, will be deemed reflective of an inherent lack of technical competence or indicative of a failure to comprehend the complexity and risk of the County’s requirements as set forth in this RFPQ.

Each of the Evaluation Criteria below will be used in ranking and determining the quality of bidders’ responses. Responses will be evaluated according to each Evaluation Criteria, and scored on the zero to five-point scale outlined below. The scores for all Evaluation Criteria will then be added, according to their assigned weight (below), to arrive at a weighted score for each responses. A response with a high weighted total will be deemed of higher quality than a proposal with a lesser-weighted total. The final maximum score for any project is five hundred fifty (550) pointsincluding the possible fifty (50) points for local and small, local and emerging, or local preference points(maximum 10% of final score).

The bidders receiving the highest scores and with at least 350 points will be pre-qualified. Only the bidders meeting the criteria will be pre-qualified. All other bidders will be deemed eliminated from the process. All bidders will be notified of the prequalified list of participants.

The zero to five-point scale range is defined as follows:

0 / Not Acceptable / Non-responsive, fails to meet RFPQ specification. The approach has no probability of success. If a mandatory requirement this score will result in disqualification of proposal.
1 / Poor / Below average, falls short of expectations, is substandard to that which is the average or expected norm, has a low probability of success in achieving objectives per RFPQ.
2 / Fair / Has a reasonable probability of success, however, some objectives may not be met.
3 / Average / Acceptable, achieves all objectives in a reasonable fashion per RFPQ specification. This will be the baseline score for each item with adjustments based on interpretation of proposal by Evaluation Committee members.
4 / Above Average / Good / Very good probability of success, better than that which is average or expected as the norm. Achieves all objectives per RFP requirements and expectations.
5 / Excellent / Exceptional / Exceeds expectations, very innovative, clearly superior to that which is average or expected as the norm. Excellent probability of success and in achieving all objectives and meeting RFPQ specification.

The Evaluation Criteria and their respective weights are as follows:

Evaluation Criteria / Weight
/ Completeness of Response:
Responses to this RFPQ must be complete. Responses that do not include the prequalification content requirements identified within this RFPQ and subsequent Addenda and do not address each of the items listed below will be considered incomplete, be rated a Fail in the Evaluation Criteria and will receive no further consideration.
Responses that are rated a Fail and are not considered may be picked up at the delivery location within 14 calendar days of contract award and/or the completion of the competitive process. / Pass/Fail
Debarment and Suspension:
Bidders, its principal and named subcontractors are not identified on the list of Federally debarred, suspended or other excluded parties located at / Pass/Fail
/ Firm Qualifications and Relevant Experience:
Prequalification documents will be evaluated against the RFPQ specifications and the following:
  1. Specialized experience and technical competence of the firms;
  2. Records of performance;
  3. Demonstration of the firm’s capacity to successfully underwrite the County’s tax-exempt and taxable debt, including the firm’s ability to distribute bonds both in California and nationally;
  4. The firm’s capital structure including total capital, equity capital, and uncommitted excess capital and how the firm has used that capital to support the sale and market distribution of municipal bonds;
  5. The firm’s capital structure including total capital, equity capital, and uncommitted excess capital and how the firm has used that capital to support the sale and market distribution of municipal bonds;
  6. Knowledge and understanding of local environment and a local presence for working with County staff;
/ 25 Points
/ Staff Qualifications
Prequalification documents will be evaluated against the RFPQ specifications and the following:
Strength of Key personnel identified in the proposal / 20 Points
/ Understanding of the Project:
  1. Prequalification documents will be evaluated against the RFPQ specifications and the availability of team to work with County staff;
  2. Knowledge and understanding of local environment and a local presence for working with County staff.
/ 25Points
/ Overall Prequalification documents
Organization, presentation and content of the responses / 15Points
/ References / 15 Points
SMALL LOCALEMERGING BUSINESS PREFERENCE
Local Preference: Points equaling five percent (5%) of bidder’s total score, for the above Evaluation Criteria, will be added. This will be the bidder’s final score for purposes of award evaluation. / Five Percent (5%)
Small and Local or Emerging and Local Preference: Points equaling five percent (5%) of bidder’s total score, for the above Evaluation Criteria, will be added. This will be the bidder’s final score for purposes of award evaluation. / Five Percent (5%)
  1. REQUEST FOR PRE-QUALIFICATIONS RESPONSE FORMAT
  1. Responses are to be straightforward, clear, concise and specific to the information requested.
  1. All responses will be valid for a 180-day period from the due date of the RFPQ,andshouldbesignedbyanauthorizedofficialofthefirm.AfirmmaywithdrawitsresponsebywrittenrequesttotheCounty.
  1. TheCountyreservestherighttorejectanyresponse.AllresponsesbecomepartoftheCounty’spublic record.
  1. Responses, in whole or in part, are NOT to be marked confidential or proprietary. County may refuse to consider any bid response or part thereof so marked. Responses submitted in response to this RFPQ may be subject to public disclosure. County shall not be liable in any way for disclosure of any such records. Please refer to the County’s website at: more information regarding Proprietary and Confidential Information policies.
  1. IntroductorySection

Thissectionshouldconsistofaletterofintroductionsignedbyanofficerofthefirmandanexecutive summarywhichhighlights thefirm’skeyqualifications.

  1. FirmQualifications

This section should includethe following:

  1. Theaddress and telephonenumberof theofficewhich willstaffthis engagement.
  1. Thename ofthe firm’srepresentative designatedas the day-to-daycontactperson.
  1. A briefdescription of the firm’sunderwriting practice asrelated to public finance.
  1. Adescriptionofthefirm’sexperienceservingasunderwriterforobligationsissuedbylocalCaliforniaissuers,theStateofCalifornia,andissuersoutsideofCalifornia,sinceJanuary1,2012. Provideinanappendixthenameoftheissuer,thenameoftheissue,thesaledate,thesizeoftheissue,thetype of theissue,themethodofsale,andthefirm’srole in thetransaction.
  1. For those issues where the firm was acting as Senior or Co-Senior Manager, please also specify:

(1)Rating(s)

(2)Bond Insurance Provider (if any)

(3)Gross Spread Components

(4)Percentage of the Issue Sold by Your Firm

(5)Member of the Firm with Primary Responsibility for this Assignment

  1. A description of the firm’s ability to prepare detailed quantitative analyses of alternative structuring options and to develop and structure innovative financial structures and products that will add value to the bond issues contemplated by the County.
  1. A description of the firm’s ownership and capital structure; total number of employees in various categories (e.g., managerial, professional and clerical); principal place of business and location of other offices. Identify the amount of the firm’s net capital committed to support municipal bond underwriting and identify the maximum size of a long-term, tax-exempt bond issue the firm would be willing to underwrite, under applicable securities laws, given the firm’s current capital position.
  1. A discussion of the firm’s institutional and retail marketing, distribution, and remarketing capabilities both nationally and in California. Identify how many full-time employees are dedicated to the sales and trading of municipal securities, and the firm’s average trading volume in California municipal bonds. Describe how your firm would assist the County in improving itsimage with the municipal investor community in order to assure the widest distribution of its bonds at the lowest interest rate possible.
  1. Staff Qualifications

The qualifications,expertiseandavailabilityoftheindividualsassignedtoaprojectareexceedinglyimportanttotheCounty,andwillinfluencetheCounty’schoiceofmunicipal bond underwriting advisorsforthepool.Please bespecific in addressingthese items:

  1. Identify the members of the professional team, including specific areas of expertise of each as related to different types of financing structures, whether team members specified will be serving in a primary or support capacity, and the availability of identified team members to work on County projects.
  1. Providea briefresume for each team memberwhich should include anyrelevantCalifornia countypublicfinanceexperienceandqualifications.
  1. Compensation

TheCountyplansto pay feescontingent uponcompletion ofspecificfinancingtransactions onaperprojectbasis.Pleaseprovideaproposedfeeschedulebytypeoffinancing(e.g.,revenuebonds;lease financings;generalobligation bonds).

  1. Conflict of Interest and Pending Litigation:

Please address the following as part of your response:

  1. Arethereanyarrangements,formalorinformal,thatthefirmhaswithanyotherunrelatedindividualsorentitieswithregardstothesharingofanycompensation,feesor profitsreceivedfromorinrelationto,actingasanunderwriterfortheCounty? Ifso,provideacopyofanycontractrelatingtothearrangementandthemannerinwhichcompensationorfeeswould be shared.
  1. Willtheselectionofyourfirmresultinanycurrentorpotentialconflictsofinterest?Ifso,yourfirm’sresponsemustspecifythepartywithwhichtheconflictexistsormightarise,thenatureoftheconflict,andwhetheryourfirmwouldstepasideorresignfromtheengagementor representation creating the conflict.
  1. Pleaseidentifyfullytheextenttowhichyourfirmorindividualpartnersoremployeesarethesubjectofanyongoingmunicipalsecuritiesinvestigation,areapartytoanymunicipalsecuritieslitigationorarbitrationorarethesubjectofasubpoenain connectionwithamunicipalsecuritiesinvestigation.Inaddition,includeanysuchinvestigationswhichconcluded in anenforcement ordisciplinaryaction orderedor imposed in the lastthreeyears.
  1. References

Pleaseprovide, on the form below,thenames,addressesandtelephonenumbersforthree (3)issuerswithwhomyouhaveworkedovertheyears,andwhoareabletoattesttoyourfirm’sexpertise,qualityofwork, andtheserviceprovided.Californiacountyreferencesare preferred.

  1. Small Local Emerging Business (SLEB)

Please indicate how you propose to work with the County to support the involvement of SLEB firms in future financings.

  1. SLEB Partnering Information Sheet:

Every bidder must fill out and submit a signed SLEB Partnering Information Sheet, (found on page 19 ofRFPQ indicating their SLEB certification status. If bidder is not certified, the name, identification information, and goods/services to be provided by the named CERTIFIED SLEB partner(s) with whom the bidder will subcontract to meet the County SLEB participation requirement must be stated. Any CERTIFIED SLEB subcontractor(s) named, the Exhibit must be signed by the CERTIFIED SLEB(s) according to the instructions. All named SLEB subcontractor(s) must be certified by the time of bid submittal.

  1. Exceptions, Clarifications, Amendments:

(1)This shall include clarifications, exceptions and amendments, if any, to the RFPQand associated Bid Documents, and shall be submitted with your bid response using the template on page 20of this RFPQ.

(2)THE COUNTY IS UNDER NO OBLIGATION TO ACCEPT ANY EXCEPTIONS, AND SUCH EXCEPTIONS MAY BE A BASIS FOR NON ACCEPTANCE OF THE PREQUALIFICATION DOCUMENTS

  1. SUBMISSION INSTRUCTIONS

1.All responses must be completed and successfully uploaded through Alameda County Strategic Sourcing Supplier Portal BY 2:00 p.m. on the due date specified in the Calendar of Events. Technical difficulties in downloading/submitting documents through the Alameda County Strategic Sourcing Supplier Portal shall not extend the due date and time.