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HomeMy WebLinkAboutStatement of Work - Crowe Horwath LLP - Assistance with Issuing Bonds for Fire Station No 91316 COUNTY-CTry BuiLDING 227 W. JEFFERSON BouLEVARD SM M] BEND. INDIANA 46601-1830 CITY OF SOUU-i BEND PETS BUTTIGIEG, MAYOR BOARD, OF PUBLIC WORKS January 23, 2018 Alicia Antonetti-Tricker Crowe Horwath LLP 135 North Pennsylvania St,, Suite 200 Indianapolis, IN 46204-2407 RE: Statement of Work Dear Ms. Antonetti-Tricker: PHONE 574/235-9251 FAX 574/ 235-9171 The Board of Public Works, at its meeting held on January 23, 2018, approved the above referenced Statement of Work, regarding assistance with issuing bonds for Fire Station No. 9 in the amount of $50,000. Enclosed please find a copy of the agreement for your records. If you have any further questions regarding this matter, please call this office at (574) 235- 9251. Sincerely, Linda M. Martin, Clerk Enclosure c: Jen Hockenhull, Administration and Finance GARY A. Gn,oi, SUZANNA M. FRITZBERco EuZABETH A. MARADIK JAMEs A. MUELLER THERESE J. DoRAU Crowe Horwath. Crowe Horwath LLP Independent Mernber Crowe Horwath International 135 North Pennsylvania Street, Suite 200 Indianapolis, Indiana 46204-2407 Tel +1 317632 1100 Fax +1 317 635 6127 www.crowehorwath.corn STATEMENT OF WORK to that certain Master Services Agreement dated as of July 1, 2016 Between the City of South Bend, Indiana ("City" or "Client") and Crowe Horwath LLP ("Crowe") Municipal Advisory Services for the Proposed City of South Bend Bonds of 2017 (Fire Station Project) (the "Bonds") Description of Services and Deliverables Planning and Financial, Structuring 1. Attend working group meetings. 2. Communicate with local counsel and bond counsel concerning legal and financial timetables and necessary documentation. 3. Summarize sources and uses of funds and prepare amortization schedules for the Bonds. 4. Provide parameters to bond counsel for the bond ordinance. Disclosure and Presentations 1. Participate in due diligence investigations as required in connection with the client's disclosure obligations under SEC regulations, including Rule 10(b)(5), and the Securities Acts of 1933and 1934 and the disclosure rules applicable to governmental issuers under SEC Rule 15c2-12, if applicable. 2. Prepare for and attend up to three (3) public meetings. 3. Prepare a term sheet or Official Statement for the sale of securities at competitive bid or on a negotiated basis, including Preliminary or Nearly Finial and Final Official Statements, including determining, direct and overlapping community debt, debt ratios and per capita ratios for the purpose of establishing limitations, if any, and credit capabilities. 4. Apply for and manage data presenitations relative to request for credit ratings by Moody's Investors Service, Standard & Poor's, and/or Fitch Ratings, if required. Sale Closing and Follow -Through 1. Participate in pricing calls on behalf of the City, if the sale of the Bonds is negotiated. Arrange for sale of Bonds on Parity it the bonds are competitively bid. 2. Arrange for closing of sale and transfer of funds. 3. Assist with preparation of closing documents required by bond counsel. 4. Assist with pre -closing and closing. 5. Prepare post bond sale reporting documentation via Gateway to the Department of Local) Government Finance (DLGF),, if requested'. 1 of 4 STATEMENT OF WORK (Continued) to that certain Master Services Agreement dated as of July 1, 2016 Between the City of South Bend, Indiana ("City" or "Client") and Crowe Horwath LLP ("Crowe") Municipal Advisory Services for the Proposed City of South Bend Bonds of 2017 (Fire Station Project) (the "Bonds") II. Assumptions/Client Responsibilities Client will provide financial data as requested by a data request. III. Management Representative Jennifer Hockenhu Name/Title IV. Fees and Expenses The total fee for this project is a fixed fee of $50,000, plus out-of-pocket expenses. Services requested which are outside of the scope of services listed herein will be described and quoted separately. Fees will be billed for the following fixed fee milestones: Milestone Fixed Fee Bond issuance $ 47,000 Parity Report' $ 3,000 Total $ 50,000 1 Crowe expects to submit a separate agreed -upon -procedures agreement for the completion of a parity report at or around the time of the Bonds closing in an amount of $3, 000. The fee for the parity report is shown above for cost of issuance planning purposes and is included in the total fixed fee amount. Should there be any problems or unforeseen circumstances, we will notify the City's management and come to a mutual understanding of whether any additional fees will be involved before continuing. Crowe will be acting in an individual capacity while performing services for the City and will not unless otherwise indicated, be acting as agents, employees, partners, joint ventures or associates of the City. Out-of-pocket expenses paid by Crowe will be billed to the client at cost. These expenses generally include, but are not limited to, communication, printing (including printing of the Official Statement), binding, electronic marketing, electronic bidding expense, evaluation software and travel expenses incurred on behalf of the City. Should the project terminate prior to the issuance of the Bonds, we will invoice the City for the time and out-of-pocket expenses through the date of project termination. Otherwise, our fees can be paid from Bond proceeds at closing. Invoices that are not paid within 30 days of receipt are subject to a monthly interest charge of one percent (1.0%) per month or the highest interest rate allowed by law, whichever is less, which we may elect to waive at our sole discretion, plus costs of collection, including reasonable attorneys' fees. Crowe's fees are exclusive of taxes or similar charges, as well as customs, duties or tariffs, imposed in respect of the services, any work product or any license, all of which Client agrees to pay if applicable or if they become applicable (other than taxes imposed on Crowe's income generally), without deduction from any fees or expenses invoiced to Client by Crowe. 2of4 STATEMENT OF WORK (Continued) to that certain Master Services Agreement dated as of July 1, 2016 Between the City of South Bend, Indiana ("City" or "Client") and Crowe Horwath LLP ("Crowe") Municipal Advisory Services for the Proposed City of South Bend Bonds of 2017 (Fire Station Project) (the "Bonds") V. Crowe Horwath Subcontractors to be used to complete Services Crowe Horwath LLP will not be using any subcontractors. VL Disclosure of Conflicts of Interest and Other Information Pursuant to MSRB Rule G-42, if any known material conflicts of interest based on the exercise of reasonable diligence by Crowe are determined, Crowe will provide a written statement to the City to that effect. As of the date of this Statement of Work (SOW), Crowe is not aware of any material conflicts of interest. The firm is "nationally recognized" in matters relating to tax-exempt bond issues and has experience in advising governmental issuers on the financial aspects involved with the issuance of tax-exempt bonds. The firm is, registered with the Municipal Securities Rulemaking Board and the Securities and Exchange Commission (SEC) as a Municipal Advisor. As a Municipal Advisor, Crowe is required to file a Form MA pertaining to Crowe and Form MA-1 for each employee engaged in Municipal Advisory activities. These forms include information about any criminal actions, regulatory actions, investigations, terminations, judgments, liens, civil judicial actions, customer complaints, arbitrations and civil litigation. Such information can be viewed on the U.S. Securities and Exchange Commission EDGAR Company Filings. Crowe Horwath LLP CIK#: 0001620621 filings can be viewed at: htti,)://www.sec.goly/c:gi-bin/brow,,;e- ludeftount=40 Crowe's latest MA -A was accepted on April 20, 2017. The MSRB is the principal regulator in the municipal securities market and develops rules for financial professionals designed to ensure a fair and efficient market by preventing fraud and other unfair practices, establishing professional qualifications, supporting market transparency, and applying uniform practices to the industry. The MSRB offers a brochure that describes the protections available under MSRB rules and how to file a complaint with an appropriate regulatory authority. This brochure is located on the MSRB website at www.msrb.org. This Statement of Work will commence on the date of signing by the City. Crowe will serve in the capacity of municipal advisor to the Client until such time that the Client or Crowe notifies the other party of the, dissolution of the relationship. From time -to -time, businesses decide that an agreement does not continue to meet their needs. Accordingly, we mutually agree that either party can terminate this engagement upon delivery of written notice thirty (30) days prior to the date of the desired termination. 3 of 4 STATEMENT OF WORK (Continued) to that certain Master Services Agreement dated as of July 1, 2016 Between the City of South Bend, Indiana ("City" or "Client") and Crowe Horwath LLP ("Crowe") Municipal Advisory Services for the Proposed City of South Send Bonds of 2017 (Fire Station Project) (the "Bonds") City of South Bend 'k IY13,na:uv1:% Signature Jennifer Hockenhiull i A k '1 1) 1) 1"t A A Printed Name Controller Title W. Date --- Crowe Horwath LILP 4 1 V .6 jr4 Signature Alicia L. Antonetti-Tricker Printed Name Principal Title November 1, 2017 Date 4 of 4 BOARD OF PUBLIC WORKS AGENDA ITEM RE,VIEW REQUEST FORM Date 1/8/18, Name Jen HockenhuIl BPW Date 1/23/18 Department A/F Required Prior to Submittal to Board Legal Attorney Name Clara McDaniels Controller review is required for all Contracts $5,000.00 or more Controller and greater than one year in length per the City Purchasing Policy Nmmm� Agreement Professional Services R Bid Opening R Quote Opening El Chg Order No. El Ease./Encroach. El Other: " Contract LJ Proposal [] Amendment F] Bid Award ❑ Req. to Advertise ❑ Quote Award C/O & P,CA No. PCA Traffic Control ❑ Resolution El Claim LJ Addendum Title Sheet Required Information Company or Vendor Name Crowe Horwath D Yes El If Yes, Approved by Purchasing New Vendor M No MBENVBE Contractor Completed E-Verify Form Attached RF-1 WBE ❑Nos Project Name Fire Station #9 Project Number n/a Funding Source 2018 Fire Station Bond Proceeds Account No. n/a Amount $,50,000 Terms of Contract Due upon close of bond Purpose/Description The City is required to retain a municipal financial consultant for all bond issuance matters. Crowe will assist us with financial Amount of ❑ 1:1 Increase $ Decrease $ Previous Amount Current Percent of Change: New Amount Total Percent of Change: Time Extension: Copy Original M F-1 ❑ ❑ 11 11 Ell Jen Hockenhull