(A) Senior manager selection. The city shall select a senior manager for any proposed negotiated sale. The selection criteria shall include, but not limited to the following:
(1) Ability and experience in managing transactions similar to that contemplated by the city;
(2) Prior knowledge, experience and support of the city;
(3) Ability and willingness to risk capital and demonstration of such risk and capital availability;
(4) Quality and experience of personnel assigned to the city’s engagement;
(5) Financing plan; and
(6) Underwriting fees.
(B) Co-manager selection. Co-managers may be selected on the same basis as the senior manager. In addition to their qualifications, co-managers appointed to specific transactions will be a function of transaction size and the necessity to ensure maximum distribution of the city’s bonds.
(C) Underwriter’s counsel. In any negotiated sale of city debt in which legal counsel is required to represent the underwriter, the appointment will be made by the senior manager with final approval from the city.
(D) Underwriter’s discount. The city will evaluate the proposed underwriter’s discount against comparable issues in the market. If there are multiple underwriters in the transaction, the city will determine the allocation of underwriting liability and management fees, if any. The allocation of fees will be determined prior to the sale date: a cap on management fees, expenses and underwriter’s counsel fee will be established and communicated to all parties by the city. The senior manager shall submit an itemized list of expenses charged to members of the underwriting group. Any additional expenses must be substantiated.
(E) Evaluation of underwriter performance. In conjunction with its financial advisor, the city will evaluate each bond sale after completion to assess the following: costs of issuance including underwriters’ compensation, pricing of the bonds in terms of the overall interest cost and on a maturity-by-maturity basis, and the distribution of bonds and sales credits.
(F) Designation policies. To encourage the pre-marketing efforts of each member of the underwriting team, orders for the city’s bonds will be net designated, unless otherwise expressly stated. The city shall require the senior manager to:
(1) Fairly allocate bonds to other managers and the selling group;
(2) Comply with Municipal Securities Rulemaking Board (MSRB) regulations governing the priority of orders and allocations; and
(3) Within ten working days after the sale date, submit to the city a detail of orders, allocations and other relevant information pertaining to the city’s sale.
(1984 Code, § 40.04) (Ord. O-07-19, passed 3-26-2019)