Request for Proposals RFP-14-405 Financial Advisor for the Bond Program

REQUEST FOR PROPOSALS

Financial Advisor for the Bond Program

RFP-14-405

State of California

California Energy Commission

June 2015

Table of Contents

I.Introduction

Purpose of RFP

Key Activities and Dates

Available Funding and How Award is Determined

Eligible Bidders

Questions

Contact Information

Responses to this RFP

Reference Documents

II.Scope of Work and Deliverables

About This Section

Background

General Requirements

III.Proposal Format, Required Documents, and Delivery

About This Section

Required Format for a Proposal

Number of Copies

Packaging and Labeling

Preferred Method for Delivery

Organize Your Proposal As Follows

IV.Evaluation Process and Criteria

About This Section

Proposal Evaluation

Scoring Scale

Notice of Proposed Award

V.Business Participation Programs (Preferences/Incentives)

Disabled Veteran Business Enterprise (DVBE)

Compliance Requirements

DVBE Incentive

Small Business / Microbusiness / Non-Small Business

Target Area Contract Preference Act (TACPA)

VI.Administration

RFP Defined

Cost of Developing Proposal

Printing Services

Confidential Information

Darfur Contracting Act of 2008

RFP Cancellation and Amendments

Errors

Modifying or Withdrawal of Proposal

Immaterial Defect

Disposition of Bidder’s Documents

Bidders’ Admonishment

Grounds to Reject a Proposal

Protest Procedures

Agreement Requirements

Attachments
1 / Contractor Status Form
2 / Darfur Contracting Act
3 / DVBE Std. 843
4 / Bidder Declaration form GSPD-05-105
5 / Contractor Certification Clauses
6 / Client References
7 / Budget Forms
8 / Sample Standard Agreement

June 2015Page 1 of 18RFP-14-405

I.Introduction

Purpose of RFP

The purpose of this Request for Proposals (RFP) is to select an expert Financial Advisor to provide investment monitoring and programmatic advice, to counsel Energy Commission staff in their administrative interactions with various bond program contractors (audit, rebate, bond counsel), and other outside participants in the revenue bond program (trustee, issuer, investment contacts). This solicitation will also provide assistance in making public comments and presentations, providing training concerning financial matters affecting Energy Commission program activity and providing advice and recommendations to Energy Commission staff in managing the complexities of the tax exempt revenue bond program.

Key Activities and Dates

Key activities including dates and times for this RFP are presented below. An addendum will be released if the dates change for the asterisked (*) activities.

ACTIVITY / ACTION DATE
RFP Release / June 3, 2015
Deadline for Written Questions by 5:00 p.m.* / June 10, 2015
Distribute Questions/Answers and Addenda (if any) to RFP / June 17, 2015
Deadline to Submit Proposals by 3:00 p.m.* / June 29, 2015
Anticipated Notice of Proposed Award / July 2015
Anticipated Contract Start Date / August 2015
Contract Termination Date / August 2018

Available Funding and How Award is Determined

There is $125,000available for the contract resulting from this RFP. This is an hourly rate plus cost reimbursement contract and the award will be made to the responsible Bidder receiving the highest points.

The Energy Commission reserves the right to reduce the contract amount to an amount deemed appropriate in the event the budgeted funds do not provide full funding of Energy Commission contracts. In this event, the Contractor and CommissionAgreement Manager (CAM) shall meet and reach agreement on a reduced scope of work commensurate with the level of available funding.

Eligible Bidders

This is an open solicitation for public and private entities. Each agreement resulting from this solicitation includes terms and conditions that set forth the contractor’s rights and responsibilities. Private sector entities must agree to use the attached standard terms and conditions (Attachment 6). The University of California or U.S. Department of Energy National Laboratories must use either the standard or the pre-negotiated terms and conditions at the following website: ( The Energy Commission will not award agreements to non-complying entities. The Energy Commission reserves the right to modify the terms and conditions prior to executing agreements.

All corporations, limited liability companies (LLCs) and limited partnerships (LPs) are required to register and be in good standing with the California Secretary of State to enter into an agreement with the Energy Commission. If not currently registered with the California Secretary of State, Bidders are encouraged to contact the Secretary of State’s Office as soon as possible to avoid potential delays in beginning the proposed project(s) (should the application be successful). For more information, contact the Secretary of State’s Office via its website at

Questions

During the RFP process, questions of clarification about this RFP must be directed to the Contracts Officer listed in the following section. You may submit written questions via mail, electronic mail, and by FAX. However, all questions must be received by 5:00 pm on the deadline to submit questions.

The questions and answers will be posted on the Commission’s website at:

Any verbal communication with a Commission employee concerning this RFP is not binding on the State and shall in no way alter a specification, term, or condition of the RFP. Therefore, all communication should be directed in writing to the Energy Commission’s Contract Officer assigned to the RFP.

Contact Information

Michael Poe, Contracts Officer

California Energy Commission

1516 Ninth Street, MS-18

Sacramento, California 95814

Telephone: (916) 654-4809

FAX: (916) 654-4423

E-mail:

Responses to this RFP

Responses to this solicitation shall be in the form of an Administrative, Technical and Cost Proposalaccording to the format described in this RFP. The Administrative response shall include all required administrative documents. The Technical Proposal shall document the Bidder’s approach, experience, qualifications, and project organization to perform the tasks described in the Scope of Work, and the Cost Proposal shall detail the Bidder’s budget to perform such tasks.

Reference Documents

Bidders responding to this RFP may want to familiarize themselves with the following documents for both bond issues 2003A and 2005A. Although the 2003A bonds have been paid off, the documents for the 2003A bonds are included online for reference.

• Master Trust Agreement
• Bond Indentures
• Secured Loan Agreements
• Official Statements
• Most recent Bond Audits
• Tax Agreements

All above reference documents are available online at:

II.Scope of Work and Deliverables

About This Section

This section describes the contract scope of work, deliverables and due dates under the direction of the CAM.

The purpose of this contract is for an expert Financial Advisor to provide investment monitoring and programmatic advice, to counsel Energy Commission staff in their administrative interactions with various bond program contractors (audit, rebate, bond counsel), and other outside participants in the revenue bond program (trustee, issuer, investment contacts).

Background

The Energy Efficiency Master Trust Revenue Bond Series include issues 2003A (dated April 27, 2003 for $28,005,000) and 2005A (dated May 11, 2005 for $36,955,000). The 2003A bonds were paid off in March 2014. Repayments from pledged loans from the Energy Conservation Assistance Program (ECA) and Local Jurisdiction Account (LJA) support each series. Loan payments used in support of the bonds are made semi-annually in June and December of each year to the Energy Commission and include unscheduled loan payments. Several bond sub-account funds are invested through Guaranteed Investment Contracts (GICs) and a Repurchase Agreement at specified interest rates through Wells Fargo Bank and the Royal Bank of Canada. The bond issues are audited annually. Continuing disclosure reports are filed annually, and rebate arbitrage calculations are prepared annually and filed on a five year computation date.

General Requirements

TASK LIST

Task # / Task Name
1 / Agreement Management
2 / Cash Flow Certification Preparation
3 / Rebate Arbitrage Assistance
4 / Annual Continuing Disclosure Report Analysis
5 / Bond Administration and Management
6 / Accounting Compliance and Coordination
7 / Bond Closeout

ACRONYMS/GLOSSARY

Specific acronyms and terms used throughout this scope of work are defined as follows:

Acronym / Definition
CAM / Commission Agreement Manager
DGS / Department of General Services
DVBE / Disabled Veteran Business Enterprise
Energy Commission / California Energy Commission
Proposal / Formal written response to this document from Bidder
RFP / Request for Proposal, this entire document
State / State of California

FORMAT/REPORTING REQUIREMENTS

Deliverables/Reports

When creating reports, the Contractor shall use and follow, unless otherwise instructed in writing by the Commission Contract Manager (CAM), the latest version of the Consultant Reports Style Manual published on the Energy Commission's web site:

Each final deliverable shall be delivered as one original, reproducible, 8 ½” by 11”, camera-ready master in black ink. Illustrations and graphs shall be sized to fit an 8 ½” by 11” page and readable if printed in black and white.

Electronic File Format

The Contractor shall deliver an electronic copy (CD ROM or memory stick or as otherwise specified by the CAM) of the full text in a compatible version of Microsoft Word (.doc).

The following describes the accepted formats of electronic data and documents provided to the Energy Commission as contract deliverables and establishes the computer platforms, operating systems and software versions that will be required to review and approve all software deliverables.

• Data sets shall be in Microsoft (MS) Access or MS Excel file format.
• PC-based text documents shall be in MS Word file format.
• Documents intended for public distribution shall be in PDF file format, with the native file format provided as well.
• Project management documents shall be in MS Project file format.

Software Application Development

If this scope of work includes any software application development, including but not limited to databases, websites, models, or modeling tools, contractor shall utilize the following standard Application Architecture components in compatible versions:

• Microsoft ASP.NET framework (version 3.5 and up) Recommend 4.0
• Microsoft Internet Information Services (IIS), (version 6 and up) Recommend 7.5
• Visual Studio.NET (version 2008 and up) Recommend 2010
• C# Programming Language with Presentation (UI), Business Object and Data Layers
• SQL (Structured Query Language)
• Microsoft SQL Server 2008, Stored Procedures Recommend 2008 R2
• Microsoft SQL Reporting Services Recommend 2008 R2
• XML (external interfaces)

Any exceptions to the Software Application Development requirements above must be approved in writing by the Energy Commission Information Technology Services Branch.

TASK 1- AGREEMENT MANAGEMENT

TASK 1.1 - KICKOFF MEETING

The goal of this task is to establish lines of communication and procedures for implementing this Agreement.

The Contractor shall:

• Attend a “kick-off” meeting with the CAM, the Contracts Agreement Officer, and a representative of the Accounting Office. The meeting will be held in Sacramento, CA and the CAM will designate the specific location. The Contractor shall include its Project Manager, Contracts Administrator, Accounting Officer, and others designated by the CAM in this meeting. The administrative and technical aspects of this Agreement will be discussed at the meeting.
• If necessary, prepare an updated Schedule of Deliverables based on the decisions made in the kick-off meeting.

The CAM shall:

• Arrange the meeting including scheduling the date and time.
• Provide an agenda to all potential meeting participants prior to the kick-off meeting.

Deliverables:

• An Updated Schedule of Deliverables (if applicable)

TASK 1.2 - INVOICES

The goal of this task is to ensure timely accounting of contract expenses.

The Contractor shall:

• Prepare invoices for all reimbursable expenses incurred performing work under this Agreement in compliance with the Exhibit B of the Terms and Conditions of the Agreement. Invoices shall be submitted with the same frequency as progress reports (task 1.4). Invoices must be submitted to the Energy Commission’s Accounting Office.

Task 1.3 Manage Subcontractors

The goal of this task is to ensure quality products, to enforce subcontractor Agreement provisions, and in the event of failure of the subcontractor to satisfactorily perform services, recommend solution to resolve the problem.

The Contractor shall:

• Manage and coordinate subcontractor activities. The Contractor is responsible for the quality of all subcontractor work and the Energy Commission will assign all work to the Contractor. If the Contractor decides to add new subcontractors, they shall 1) comply with the Terms and Conditions of the Agreement, and 2) notify the CAM who will follow the Energy Commission’s process for adding or replacing subcontractors.

Task 1.4 Progress Reports

The goal of this task is to periodically verify that satisfactory and continued progress is made towards achieving the objectives of this Agreement.

The Contractor shall:

• Prepare progress reports which summarize all Agreement activities conducted by the Contractor for the reporting period, including an assessment of the ability to complete the Agreement within the current budget and any anticipated cost overruns. Each progress report is due within 15 calendar days after the end of the reporting period. The CAM will provide the format for the progress reports.

Deliverables:

• Quarterly Progress Reports

TASK 1.5 - FINAL REPORT

The goal of this task is to prepare a comprehensive written Final Report that describes the original purpose, approach, results and conclusions of the work completed under this Agreement. The Final Report shall be prepared in language easily understood by the public or layperson with a limited technical background.

The Final Report must be completed before the termination date of the Agreement in accordance with the Schedule of Deliverables.

The Final Report shall be a public document. If the Contractor has obtained confidential status from the Energy Commission and will be preparing both a public and a confidential version of the Final Report, the Contractor shall perform the following subtasks for both the public and confidential versions of the Final Report.

Task 1.5.1 Final Report

The Contractor shall:

• Prepare the draft Final Report for this Agreement.
• Submit the draft Final Report for review and comment. The CAM will provide written comments to the Contractor. The Contractor shall review the comments and discuss any issues with the recommended changes with the CAM.
• Prepare and submit the Final Report, incorporating CAM comments.

Deliverables:

• Draft Final Report
• Final Report

TASK 2 – Cash Flow Certificate Preparation

The goal of this task is to assist Energy Commission staff to analyze the flow of funds within the bond program. This review and analysis will principally be used for preparation of biannual cash-flow certificates.

The Contractor shall:

• Assist staff to prepare financial analysis and recommendations for:

• Bond program structure and flow of funds
• Cash-flow strategies
• Monitoring of investments, including advice for:
• Compliance with cash-flow certificate preparation
• Future scenario risk analysis, etc.
• Provide ongoing advice and analysis on bond financial structure

Deliverable:

•Cash Flow Certificate Analysis (annual August and February)

TASK 3 – Rebate Arbitrage Assistance

The goal of this task is assist Energy Commission staff in tax analysis and rebate calculation interpretation.

The Contractor shall:

• Provide administrative assistance to coordinate with the various bond program contractors and participants, including those parties within and outside the Energy Commission responsible for rebate tax liability analysis.

Deliverable:

•Rebate Arbitrage Analysis (annual April-May)

TASK 4 – Annual Continuing Disclosure Report Analysis

The goal of this task is to assist Energy Commission staff in analyzing current outstanding loans and program information in preparation for the Continuing Disclosure Report. This report is filed annually by the Energy Commission.

The Contractor shall:

• Provide financial analysis and recommendations regarding information pertinent to the Continuing Disclosure Report, including:
• Financial analysis of loans pledged to the repayment of the bonds.
• Analysis and recommendations regarding any significant events that have occurred over the preceding fiscal year and their impact to the tax exempt revenue bond program.
• Statistical information regarding principal and payment delinquencies or defaults during the preceding fiscal year

Deliverable:

•Continuing Disclosure Report Analysis (annual March)

TASK 5 - Bond Administration and Management

The goal of this task is to provide Energy Commission staff with proper advice and recommendations for compliance with administrative requirements for administering the tax exempt revenue bond program. This advice mayinclude training Commission staff on various aspects of bond program.

The Contractor shall:

• Provide proper advice and recommendations to the Energy Commission, upon written direction of the CAM, in managing the complexities of the tax exempt revenue bond program, including:
• Providing public comments and presentations when necessary
• Coordinating training and workshopsfor Energy Commission staff
• Assist staff with documenting bond activities necessary for administration of bond document requirements

• Provide advice and recommendation on compliance and implementation of bond requirements for existing and new loans funded with bond proceeds.
• Assist CAM, upon request, to ensure all other compliance issues are met.

Deliverable:

•Administrative Recommendations (upon written request of the CAM)

•Document covenant interpretation (as requested by the CAM)

•Loan compliance analysis (as requested by the CAM)

TASK 6 - Accounting Compliance and Coordination

The goal of this task is to ensure bond program accounting compliance and coordination. Due to the frequent number of accounting transactions, expertise is required to keep current of General Accounting Standards Board (GASB) auditing regulations and interpret bond related tax laws, the California Energy Commission requires assistance to coordinate among Energy Commission staff and the auditing and rebate contractors. Assistance is needed to ensure compliance with all applicable bond related regulations and laws.

.