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RESOLUTION NO.
A Resolution of the Mayor and City Commission of the City of
South Miami, Florida, authorizing the Acting City Manager to
hire Richard Montalbano of RBC Capital Markets as the City's
Financial Advisor; and providing an effective date.
WHEREAS, the city attorney believes that time is of the essence and that it is in
the best interest of the City to retain a Financial Advisor and has recommended the
services of Mr. Richard Montalbano of RBC Capital Markets; and
WHEREAS, the City Commission approves the conditions stipulated in the
attached email from Richard Montalbano dated July 7, 2010, and annexed to this
Resolution as Exhibit A.
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA;
Section 1. That the City Commission hereby authorizes the Acting City
Manager to engage in an agreement with Richard Montalbano of RBC Capital Markets as
the City's Financial Advisor.
Section 2. That the City Commission hereby approves the conditions
stipulated in the attached email from Richard Montalbano dated July 7, 2010, and
annexed to this Resolution as Exhibit A.
Section 3. This resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED this _ day of 2010.
ATTEST:
CITY CLERK
READ AND APPROVED AS TO FORM
AND SUFFICIENCY:
CITY ATTORNEY
Page 1 of 1
APPROVED:
MAYOR
COMMISSION VOTE:
Mayor Stoddard:
Vice Mayor Newman:
Commissioner Palmer:
Commissioner Beasley:
Commissioner Harris:
Additions shown by underlinine and deletions shown by otriking.
Exhibit A
From: Richard.Montalbano @rbccm.com
To: AslanF @aol.com, pkstoddard @gmail.com, valerienewman09 @gmail.com
CC: brwitt@cityofsouthmiami.net, markgoldstein98 @yahoo.com,
ariverol @cityofsouthmiami.net, Ireiter @ssd.com
Sent: 7/7/2010 5:35:05 P.M, Eastern Daylight Time
Subj: RE: City of South Miami
Larry, as a follow up to your email and our telephone conversation this week I am including
everyone that was on your email in my response. As I explained at the City's workshop
meeting with the Commissioners and City Administration, before accepting a new engagement
we must perform initial due diligence to ascertain that we have the resources to address the
scope of services requested by a new client and we need to determine if a client is prepared to
commit to the proposed project. Before I can submit a Financial Advisory Agreement for
consideration by the City Commission to hire RBC Capital Markets to serve as financial
advisor to the City I must submit the proposed Agreement to the Firm's Compliance
Department for approval. Before I can submit a document to our Compliance Department I
must complete a certain level of review of the City's financial condition and legal compliance
with it's current debt obligations. I have reviewed certain loan agreements and financial
statements for 2007 & 2008 but I have not yet been able to obtain financial information on the
City for the fiscal year ended September 30, 2009. 1 will need to review 2009 and any stub
period since that time. Alfredo knows what I need to see and I believe he is working on it. To
shorten the process I think it would be productive for me to provide you with a breakdown of
our hourly fees since the scope of services for the work which will be required by the City
would be done on an hourly basis. Our hourly fees for our financial advisory contract would be:
Managing Directors - $350 per hour
Directors 300
Vice Presidents 275
Associates 250
Analyst 150
Support Staff No charge
We believe that our fees are competitive with Accounting and Legal professional services.
We will also bill for out of town travel if required based on commercial rates.
Before we go thorough the process of completing our complete due diligence procedures and the
preparation of a detail agreement I would appreciate feed back from City officials if they have an
interest in moving forward with hiring's RBC Capital Markets as the:City Financial Advisor. I understand
that time is of the essence in this assignment and we would be prepared to start working immediately
upon approval from our Compliance Department and the City Commission.
Thank you and I look forward to your response .
Dlck
Richard Montalbano
Managing Director
RBC Capital Markets
(305) 810 -1720
dick. montalbano@rbccm.com
IX