HomeMy WebLinkAboutRFP Manley ROad SID Bonds (002)Page 1 of 13
REQUEST FOR PROPOSALS (RFP)
The City of Bozeman is seeking proposals from lending institutions willing to issue a loan
evidenced by a bond to its Speicial Improvement District 747 (the “District”). The District has
annual assessments available to make loan payments.
PROPOSAL FOR PURCHASE OF SPECIAL IMPROVEMENT
DISTRICT NO. 747 BONDS
CITY OF BOZEMAN
Bozeman, MT
City of Bozeman
PO Box 1230
Bozeman, MT 59771‐1230
May 2020
NOTICE IS HEREBY given that the City of Bozeman (City) is seeking proposals from financial
instituitions to The City of Bozeman is seeking proposals from lending institutions willing to issue
a loan evidenced by a bond to its Speicial Improvement District 747 (the “District”). The District
has annual assessments available to make loan payments.
Copies of the Request for Proposals are available on the City’s website at
https://www.bozeman.net/government/city‐clerk/bids‐rfps‐rfqs.
All proposals must be in the format specified, enclosed in a sealed envelope and clearly identified
with RFP title, company name and due date, and transmitted via hard copy.
Deliver RFPs to the City Clerk by Wednesday, May 20, 2020 at 3:00 p.m. MST. It is the sole
responsibility of the proposing party to ensure that proposals are received prior to the closing
time as late submittals will not be accepted and will be returned unopened.
The physical address is:
City Clerk’s Office, Suite 200, (upstairs) City Hall, 121 N. Rouse Avenue, Bozeman, Montana.
The mailing address is:
City Clerk’s Office, City Hall, P.O. Box 1230, Bozeman, Montana, 59771
(USPS only, shipping companies should be sent to the physical address)
NON‐DISCRIMINATION
The City of Bozeman is an Equal Opportunity Employer.
Discrimination in the performance of any agreement awarded under this RFP on the basis of race,
color, religion, creed, sex, age, marital status, national origin, or actual or perceived sexual
orientation, gender identity or disability is prohibited. This prohibition shall apply to the hiring
and treatment of the awarded entity’s employees and to all subcontracts.
As such, each entity submitting under this notice shall include a provision wherein the submitting
entity, or entities, affirms in writing it will not discriminate on the basis of race, color, religion,
creed, sex, age, marital status, national origin, or because of actual or perceived sexual
orientation, gender identity or disability and which also recognizes the eventual contract will
contain a provision prohibiting discrimination as described above and that this prohibition on
discrimination shall apply to the hiring and treatment of the submitting entity’s employees and
to all subcontracts.
Failure to comply with the above may be cause for the City to deem the submittal non‐responsive.
Any administrative questions regarding proposal procedures should be directed to: Mike Maas,
City Clerk (406) 582‐2321, agenda@bozeman.net.
Questions relating to the RFP should be directed to: Kristin Donald, Finance Directoe, (406) 582‐
2318, kdonald@bozeman.net.
DATED at Bozeman, Montana, this 6th day of May, 2020.
Mike Maas
City Clerk
City of Bozeman
For publication on:
Sunday, May 10, 2020
Sunday, May 17, 2020
I. INTRODUCTION
The City of Bozeman (Owner), is seeking proposals lending institutions willing to issue a loan
evidenced by a bond to its Speicial Improvement District 747 (the “District”). The District has annual
assessments available to make loan payments. This funding will improve Manley road.
The Owner intends to enter into a contract with the selected firm that will include The District is
seeking a fixed rate loan in the estimated amount of $3.3M payable in equal semi‐annual
installments over a period of 20 years to fund infrastructure improvements on Manley Road
FY20/FY21.
This RFP shall not commit the Owner to enter into an agreement, to pay any expenses incurred
in preparation of any response to this request, or to procure or contract for any supplies, goods
or services. The Owner reserves the right to accept or reject all responses received as a result of
this RFP if it is in the Owner’s best interest to do so.
This procurement is governed by the laws of the State of Montana and venue for all legal
proceedings shall be in the 18th Judicial District Court, Gallatin County. By offering to perform
services under this RFP, all Submitters agree to be bound by the laws of the State of Montana
and of the Owner, including, but not limited to, applicable wage rates, payments, gross receipts
taxes, building codes, equal opportunity employment practices, safety, non‐discrimination, etc.
II. PROJECT BACKGROUND AND DESCRIPTION
Development along Manley Road during the past few decades has created a need for extensive
improvements to its transportation infrastructure. By resolution the City of Bozeman
Commission created the SID pursuant to the City’s authority under the Montana Code
Annotated.
The total cost of the proposed construction project excluding sewer improvements is currently
estimated to be approximately $3.2M. The proposed improvements to be paid for by the
created special improvement district (SID) to include a new street surface and subsurface, curb
and gutter, bike lanes, sidewalks, storm drainage improvements, lighting, and increased
parking. Sewer improvements will be made during the construction of the project but will be
financed using sewer impact fees.
Assessment Methodology: Montana law provides several methods for assessing properties in a
SID. These include street frontage, area, assessed value, or a combination of the above. The
proposed assessment methodology is to allocate the SID’s share of costs based on a
combination of street frontage and area. Properties that front along Manley Road would be
assessed for the portion of the overall costs of improvements their frontage bears in relation to
the entire frontage of the project. For Gallatin Park Subdivision, and Minor Sub 385 (Turtle
Way), and Glen Lake Commercial Subdivision the assessments would be based on the frontage
of the lots within the subdivision that front on Manley Road and then split on an area basis
between all lots within the subdivision.
III. SCOPE OF SERVICES‐ BASIC TERMS
Fixed rate loan in the estimated amount of $3.3M, plus any costs of issuance, payable in equal
semi‐annual installments over a period of 20 years to fund infrastructure improvements on
Manley Road FY20/FY21.
This letter sets forth the general terms and conditions relating to Special Improvement District
No. 747 Bonds (the “Bonds”) of the City of Bozeman, Montana (the “City”).
The purpose of this letter is to summarize the basic terms and conditions regarding the proposed
purchase and sale of the Bonds so that you can submit a proposal to the City regarding the
interest rate at which you propose to purchase the Bonds and other relevant terms.
1. Summary of Terms and Conditions:
Issuer of Bonds: City of Bozeman, Montana
Estimated Principal Amount: $3,299,177.00
Closing Date: On or about June 5, 2020, on a date to be selected
by the City
Par Purchase: The purchase price of the Bonds will be 100% of the
principal amount thereof.
Semiannual Installments: Principal and interest paid semiannually on January
1 and July 1, commencing January 1, 2021 through
and including July 1, 2040
Amortization Bonds: The Bonds will bear interest at a single, uniform
interest rate throughout the term of the Bonds and
semiannual principal and interest installments (the
sum of principal and interest) will be equal or
substantially equal on each payment date.
Term of Bonds: Approximately 20 years (40 semi‐annual payment
installments), subject to prepayment and
redemption
No Bank Fees: There shall be no fee of any kind charged by the
bank or other financial institution in connection
with the Bonds
Additional Terms and Conditions: As set forth below in this letter
2. Purpose and Security: The Bonds will be issued for the purpose of financing the cost of
construction of certain local improvements (the “Improvements”) within or for the
benefit of Special Improvement District No. 747 (the “District”), in accordance with the
provisions of Montana Code Annotated, Title 7, Chapter 12, Parts 41 and 42, as amended
(the “Act”). The Bonds will be special, limited obligations of the City and do not constitute
general obligations of the City. The Bonds are payable primarily from the collection of
special assessments, which are a lien against the assessable real property within the
District benefited by the Improvements to be undertaken therein or therefor. The special
assessments are payable in semiannual installments over a term of approximately 20
years, with 40 semi‐annual installments of principal and interest in substantially equal
amount, at an annual rate equal to the sum of (i) the rate of interest borne by the then
outstanding Bonds, plus (ii) one‐half of one percent (0.50%) per annum. The Bonds are
further secured by the Special Improvement District Revolving Fund of the City (the
“Revolving Fund”). From the proceeds of the Bonds, the City will deposit $164,959 into
the Revolving Fund. If there are inadequate amounts received from special assessments
to pay an installment of interest and, if applicable, principal due on the Bonds, the City
would make a loan from the Revolving Fund to the District Fund to pay interest on and, if
applicable, principal of the Bonds, subject to the availability of amounts in the Revolving
Fund. The City will agree to make loans from the Revolving Fund to a sinking fund
established for the District in connection with the Bonds to make good any deficiency
then existing in the principal and interest subaccounts in such fund and to provide funds
to replenish the Revolving Fund by levying a tax or making a loan from the City’s general
fund to the extent and for the period authorized by the Act. Within the Special
Improvement District Fund established for the District (the “District Fund”) there shall be
maintained three separate accounts, designated as the “Construction Account,” the
“Principal Account,” and the “Interest Account,” respectively. The Revolving Fund of the
City secures all outstanding Special Improvement District bonds of the City to which
amounts in the Revolving Fund have been pledged, including the Bonds.
3. Date and Type: The Bonds will be dated, as originally issued, on the date of issuance and
delivery thereof by the City, and will be issued in registered form as to both principal and
interest.
4. Maturities and Form: The Bonds are expected to be sold as amortization bonds, meaning
they will bear a fixed rate of interest with equal or substantially equal installments of
principal and interest due on each semiannual payment date. Principal and interest shall
be paid on each January 1 and July 1, commencing January 1, 2021 through and including
July 1, 2040.
5. Interest Payment Dates, Rates: Interest will be payable each January 1 and July 1,
commencing January 1, 2021, to the registered owners of the Bonds as such appear in the
bond register as of the close of business on the 20th day (whether or not a business day)
of the immediately preceding month. All Bonds are expected to bear interest from date
of original issue until paid at a single, uniform rate.
6. No Book Entry: The Bonds will be issued in certificated form.
7. Redemption:
(a) Mandatory Redemption. If on any interest payment date there will be a balance in
the Principal Account in the District Fund after payment of the principal and interest
due on the Bonds drawn against it, either from the prepayment of special assessments
levied in the District or from the transfer of surplus money from the Construction
Account to the Principal Account in the District, then outstanding Bonds, or portions
thereof, in an amount which, together with the interest thereon to the interest
payment date, will equal the amount of such funds on deposit in the District Fund on
that date are subject to mandatory redemption and prepayment on that interest
payment date. The redemption price or prepayment amount shall equal the amount
of the principal amount of the Bonds to be redeemed and prepaid plus interest
accrued to the date of redemption, without premium.
(b) Optional Redemption. The Bonds are subject to redemption, in whole or in part, at
the option of the City from sources of funds available therefor other than those
described above under “Mandatory Redemption” (i.e., from proceeds of refunding
bonds or other available money) on the terms of this paragraph. The Bonds are
subject to redemption, at the option of the City, in whole or in part, at a redemption
price equal to the principal amount thereof to be redeemed plus interest accrued to
the redemption date, without premium, on any date selected by the City; provided
that such date may not be earlier than a date that is 30 days following written notice
of redemption and prepayment from the City to the Purchaser of the Bonds.
(c) Selection of Bonds for Redemption; Reamortization. If less than all of the Bonds are
to be redeemed, Bonds shall be redeemed in order of the principal installments
thereof, and the Purchaser shall reamortize the remaining principal amount of the
Bond over the remaining term of the Bond.
8. Bond Registrar, Transfer Agent and Paying Agent: The City Finance Director will act as
bond registrar, transfer agent and paying agent (the “Registrar”) in connection with the
Bonds, provided that the City may subsequently appoint and pay a fee to another
qualified Registrar. The bond register will be kept, transfers of ownership will be effected
and principal of and interest on the Bonds will be paid by the Registrar. The City reserves
the right to remove any Registrar and to appoint a successor.
9. Delivery: The City will deliver to the Registrar the Bonds ready for completion and
authentication. The Bonds will be registered in the name of the original purchaser
thereof. On the day of closing and delivery of the Bonds and following payment of the
purchase price thereof, the City will furnish to the Purchaser the opinion of Bond Counsel
hereinafter described, a tax certificate in respect of the Bonds and a certificate stating
that no litigation questioning the validity of the Bonds is then pending or, to the
knowledge of the applicable officers of the City, threatened. Payment for the Bonds must
be received by the City in full in immediately available funds at its designated depository
on the day of closing. The Purchaser shall submit to the City Finance Director not later
than the day of closing a certificate, in form satisfactory to Bond Counsel, as to the
intention of the Purchaser to purchase the Bonds with intent to hold and various
certifications as to its financial sophistication and net worth.
10. Legal Opinion: An opinion as to the validity of the Bonds and the exclusion of the interest
on the Bonds from gross income for federal income tax and State of Montana individual
income tax purposes will be furnished by Dorsey & Whitney LLP, of Missoula, Montana,
as Bond Counsel, subject to customary limitations. The legal opinion will state that the
Bonds are valid and binding special, limited obligations of the City enforceable in
accordance with their terms, except to the extent to which enforceability thereof may be
limited by customary matters, such as the exercise of judicial discretion or by state or
federal laws relating to bankruptcy, reorganization, moratorium or creditors’ rights.
11. Content of Proposal: You are encouraged to submit a proposal to purchase the Bonds.
Any proposal must be for the purchase of all of the Bonds. At a minimum, you must
submit an amortization schedule for a 20‐year Bond issue that clearly shows the single,
uniform interest rate in respect of the Bonds and the substantially level dollar amounts
of the semiannual installments of principal and interest due each January 1 and July 1,
commencing January 1, 2021 through and including July 1, 2040. You must also specify
the total dollar interest cost over the term of the Bonds. For purposes of the amortization
schedule, please use June 5, 2020 as the date on which interest will commence on
principal advanced, recognizing the City, in its discretion, may elect to close on a date
other than June 5, 2020. The entire principal amount of the Bonds will be advanced on
the closing date.
IV. PROPOSAL REQUIREMENTS
Firms interested in providing the services described above are requested to submit the attached
term sheet:
a) Proposal
Based on the terms described above
b) Affirmation of Nondiscrimination (see Appendix A)
Non‐completion of the Affirmation of Nondiscrimination is cause for disqualification of
firms.
V. TIMELINES, DELIVERY DEADLINE, AND INSTRUCTIONS
EVENT DATE/TIME
Publication dates of RFP Sunday, May 10, 2020
Sunday, May 17, 2020
Deadline for receipt of proposals Wednesday, May 20, 2020 at 3:00 p.m.
MST
Evaluation of proposals May 22, 2020
With the exception of the advertising dates and advertised due date, the City reserves the right
to modify the above timeline.
VI. AMENDMENTS TO SOLICITATION
Any interpretation or correction of this request will be published on the City’s webpage. The
deadline for questions related to this document is Wednesday, May 20, 2020 at 3:00 p.m. MST.
VII. CONTACT INFORMATION
Any administrative questions regarding proposal procedures should be directed to: Mike Maas,
City Clerk, (406) 582‐2321, agenda@bozeman.net
Questions relating to scope of services should be directed to: Kristin Donald, Finance Directoe,
(406) 582‐2318, kdonald@bozeman.net.
VIII. RFP – FORM AND CONTENTS
Deliver one (1) original, two (2) copies, and one digital copy (via flash drive), prepared as follows:
As the initial submittal to the Owners, PROPOSALS IN RESPONSE TO THIS RFP MUST BE
DELIVERED NO LATER THAN Wednesday, May 20, 2020 at 3:00 p.m. MST, in a sealed box or
envelope with company name shown clearly on the outside, addressed to:
Proposal for Purchase of Special
Improvement District No. 747
Bonds
Bozeman City Clerk
City Hall
121 North Rouse Avenue
Bozeman, MT 59715
RESPONSES THAT ARE UNSIGNED OR SUBMITTED BEYOND THE DEADLINE SHALL
NOT BE CONSIDERED AND SHALL BE REJECTED.
IX. SELECTION PROCEDURE
A review committee will evaluate all responses to the RFP that meet the submittal requirements
and deadline. Submittals that do not meet the requirement or deadline will not be considered.
The review committee will rank the proposals and may arrange interviews with the finalist(s) prior
to selection. Selection may be made directly based on the written RFP submission.
If interviews occur, the selection of finalists to be interviewed will be made by a selection
committee representing the City of Bozeman. The selection of interview candidates will be based
on an evaluation of the written responses to the RFPs.
All submitted proposals must be complete and contain the information required as stated in the
"Request for Proposals.”
X. SELECTION CRITERIA
Proposals will be evaluated based on the following criteria:
Based on terms described above
XI. FORM OF AGREEMENT
The Contractor will be required to enter into a contract with the City in substantially the same
form as the professional services agreement attached as Attachment B.
XII. CITY RESERVATION OF RIGHTS / LIABILITY WAIVER
A. All proposals submitted in response to this RFP become the property of the City and
public records and, as such, may be subject to public review.
B. The City reserves the right to accept or reject any and all proposals; to add or delete
items and/or quantities; to amend the RFP; to waive any minor irregularities,
informalities, or failure to conform to the RFP; to extend the deadline for submitting
proposals; to postpone award for up to 30 days; to award one or more contracts, by
item or task, or groups of items or tasks, if so provided in the RFP and if multiple awards
or phases are determined by the City to be in the public interest; and to reject, without
liability therefore, any and all proposals upon finding that doing so is in the public
interest.
C. The City of Bozeman reserves the right to reject the proposal of any person/firm who
previously failed to perform properly to the satisfaction of the City of Bozeman, or
complete on time agreements of similar nature, or to reject the proposal of any
person/firm who is not in a position to perform such an agreement satisfactorily as
determined by the City of Bozeman.
D. The City of Bozeman reserves the right to determine the best qualified Contractor and
negotiate a final scope of service and cost, negotiate a contract with another Contractor
if an agreement cannot be reached with the first selected Contractor, or reject all
proposals. The professional services contract between the City of Bozeman and the
successful Contractor will incorporate the Contractor's scope of service and work
schedule as part of the agreement (see Appendix B for form of professional services
agreement. The professional services agreement presented to the Contractor may
differ from this form as appropriate for the scope of services).
E. This RFP does not commit the City to award a contract. The City assumes no liability or
responsibility for costs incurred by firms in responding to this request for proposals or
request for interviews, additional data, or other information with respect to the
selection process, prior to the issuance of an agreement, contract or purchase order.
The Contractor, by submitting a response to this RFP, waives all right to protest or seek
any legal remedies whatsoever regarding any aspect of this RFP.
F. The City reserves the right to cancel, in part or in its entirety, this RFP including, but not
limited to: selection procedures, submittal date, and submittal requirements. If the City
cancels or revises this RFP, all Contractors who submitted proposals will be notified
using email.
G. Projects under any contract are subject to the availability of funds.
XIII. NONDISCRIMINATION POLICY
The City of Bozeman requires each entity submitting under this notice shall affirm, on a
separate form provided, that it will not discriminate on the basis of race, color, religion, creed,
sex, age, marital status, national origin, or because of actual or perceived sexual orientation,
sexual preference, gender identity, or disability in fulfillment of a contract entered into for the
services identified herein and that this prohibition on discrimination shall apply to the hiring
and treatment of the submitting entity’s employees and to all subcontracts it enters into in
the fulfillment of the services identified herein. Failure to comply with this requirement shall
be cause for the submittal to be deemed nonresponsive.
XIV. MISCELLANEOUS
A. No Oral Agreements. No conversations or oral agreements with any officer, employee, or
agent of the City shall affect or modify any term of this solicitation. Oral communications
or any written/email communication between any person and City officer, employee or
agent shall not be considered binding.
B. No Partnership/Business Organization. Nothing in this solicitation or in any subsequent
agreement, or any other contract entered into as a result of this solicitation, shall
constitute, create, give rise to or otherwise be recognized as a partnership or formal
business organization of any kind between or among the respondent and the City.
C. Employment Restriction and Indemnity. No person who is an owner, officer,
employee, contractor, or consultant of a respondent shall be an officer or employee of
the City. No rights of the City’s retirement or personnel rules accrue to a respondent,
its officers, employees, contractors, or consultants. Respondents shall have the
responsibility of all salaries, wages, bonuses, retirement, withholdings, worker’s
compensation and occupational disease compensation, insurance, unemployment
compensation other benefits and taxes and premiums appurtenant thereto concerning
its officers, employees, contractors, and consultants. Each Respondent shall save and
hold the City harmless with respect to any and all claims for payment, compensation,
salary, wages, bonuses, retirement, withholdings, worker’s compensation and
occupational disease compensation, insurance, unemployment compensation other
benefits and taxes and premiums in any way related to each respondent’s officers,
employees, contractors and consultants.
D. Accessibility. Upon reasonable notice, the City will provide assistance for those persons
with sensory impairments. For further information please contact the ADA Coordinator
Mike Gray at 406‐582‐3232 or the City’s TTY line at 406‐582‐2301.
E. Procurement. When discrepancies occur between words and figures in this solicitation,
the words shall govern. No responsibility shall attach to a City employee for the
premature opening of an RFP not properly addressed and identified in accordance with
these documents.
F. Governing Law. This solicitation and any disputes arising hereunder or under any future
agreement shall be governed and construed and enforced in accordance with the laws
of the State of Montana, without reference to principles of choice or conflicts of laws.
XV. ATTACHMENTS
The following exhibits are incorporated in this RFP:
Appendix A: Non‐Discrimination Affirmation
END OF RFP
APPENDIX A
NONDISCRIMINATION AFFIRMATION
____________________________________(name of entity submitting) hereby affirms it will not
discriminate on the basis of race, color, religion, creed, sex, age, marital status, national origin,
or because of actual or perceived sexual orientation, gender identity or disability and
acknowledges and understands the eventual contract will contain a provision prohibiting
discrimination as described above and this prohibition on discrimination shall apply to the hiring
and treatments or proposer’s employees and to all subcontracts.
______________________________________
Name and title of person authorized to sign on behalf of submitter