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HomeMy WebLinkAbout2000 08 14 Regular (4) ----...--, '.- -.. -,~:;.:-::,,:.(~:,. .,-~ t. :" -~ -:; '=- - - . I - - . . I" . ... - - -- ii .IIIl . . _. I .. .... - - .- - . - . - - .' ~ RESPONSE 'fO REQUESTFORPROPOSALS ' .FOR. UNDERWRITING '. S.ERV ICES CITx'"OF WINTER SPRINGS February 17, 1999 Gardnyr Mi~haelCapital, Inc. Wint~rPark,Florida , I I I I I I I I I I I I I' I . . February 17; 1999 GA~DNYR.MICHAEL CAPITAL, INC. INVESTMENT BANKERS,l=iNANCIAL AND INVESTMENT ADVISORS 2281 Lee ~oad, Suite 104 Winter Park, Florida 32789 407/629-4600 Fax: 407/629-2101 Mr. Harry Martin Finan.ce Director City of Winter Spring!? 1126 East State Road 434 , Winter Springs, Florida 32708 Dear ML Martin: , On behalf of Gardnyr Michael Capital, Inc. ("Gardfwr Michael") we,are pleased to submit this proposal to serve as investment banker to the City of Winter Springs (the '!City"). Our firm will bring a unique combination of expertise, local presence, innovation and commitment to service tha~ will assist the City in meeting its' financing needs. ' . . We believe our firm is well suited to assist the City for the following reasons: . Florida-Based Firm. Gardnyr Michael is a 100% locally, owned and operated municipal investment banking firm. Started in 1991, we are the only municipal firm 'headquartered in the Orlando/Central Florida area afld one of only a few remaining Florida-based firms. In spite of recent consolidations, failures and disciplinary actions within our industry, Gardnyr Michael has remained witho!.!t blemish, has continued to grow outward. from the central.Florida base, and now has eighteen employees in five offices in Florida; Alabama and New Jersey. . . . Experience: personnel with the firm have over 100 years of combined experience in all areas of public . finance including originations, research, computer analysis, trading, sales, and bond law: These ~individuals have been involved in well over 1,990 issue$ totalin'g m6rethan $10 billion throughout their careers: . . . Local Area Experience. Our team leader:has prior experience with past bond issues, as well as, the City's recent fire truck'lease. . . ' . Sales Ability. Gardnyr Michael has an excellent network of institutional and local retail salespeople with' its offices in Alapama, Florida and New Jersey. Additionally, we recently formed a sales alliance with New Jersey-based J.B. Hanauer & Co., giving us access to over 250 institutional and retail sales people. Thank you for the opportunity to present our qualifications. We look forwar~ to continuing our long-sta'nding relationship with the City. Sincerely, ~c..~ Michael C. Stewart Vice President Alabama . . Florida . · . . . New Jersey' I I I I I I I I I I I I In Respo.nse to Request for Proposals for Underwriting Services City of Winter Springs, Florida February 17, 1999 1. Provide a brief history and organizational structure of your firm. Gardnyr Michael Capital, Inc. was formed in 1991 by Jim Pietkiewicz and Pfilip Hunt. Prior to forming the company, both principals worked for Southeastern Municipal Bonds, Inc., another Florida-based regional firm located in Orlando, Florida. Mr. Pietkiewicz served as the senior trader and underwriter for that firm while Mr. Hunt served as a research analyst and investment banker. Subsequent to forming Gardnyr Michael Capital, Inc., the company has grown from two employees to eighteen with five offices in Florida, Alabiuna and New Jersey. The company specializes in public finance and municipal leasing for cities, counties, states, authorities, governmental agencies and not-for-profit corporations. In recent years there has been a well advertised wave offailures, consolidations and mergers within the industry as well as major criminal investigations and disciplinary actions. In spite of this industry shakeout, Gardnyr Michael has continued to grow while remaining free of any investigations and disciplinary actions that have plagued many of our industry's participants. We now remain one of only a handful of Florida-based investment banking firms, and the ONLY one headquartered in the Orlando-central Florida area. The following chart graphically depicts the location and specialties of our respective offices. . I . . GARDNYR MICHAEL CAPITAL, INC. I I I I I I I I I I I I I I I I . !! In Response to Request for Proposals for Underwriting Services City of Winter Springs, Florida February 17, 1999 GARDNYR MICHAEL CAPITAL, INC. Office Locations and Respective Areas of Concentration Orlando. Florida Public Finance (Ha) Institutional Sales (Ha) Trading (Ha) Retail sales Municipal Leasing Asset Management I I Gainesville. Florida Mobile. Alabama Birminaham. Alabama Public Finance Public Finance Public Finance - Specializing in FmHA Deals Municipal Leasing Municipal Leasing Retail Sales Retail Sales Clinton. New Jersev Research Institutional Sales Reatil Sales GARDNYR MICHAEL CAPITAL, INC. I I I I I I I I I I I I I - In Response to Request for Proposals for Undenvriting Services City of Winter Springs, Florida February 17,1999 2. Name, qualifications, experience and location of those persons who will be assigned to work with the City staff, Financial Advisor and Legal Counsel. Proiect Leader MICHAEL C. STEW ART, Vice President Mr. Stewart has been engaged in public finance and marketing since January 1987. Prior to entering the municipal finance arena, he spent two years in commercial banking concentrating on credit analysis and several years in the computer software industry. Over the past twelve years, Mr. Stewart has assisted in approximately $3 billion in financings. These issues have included a wide range of revenue pledges from utilities to school boards. His responsibilities with Gardnyr Michael include solicitation of municipal clients, structuring transactions, preparation of necessary documentation and daily contact with underwriting clients. Mr. Stewart received a B.A. Economics from Rollins College, Winter Park, Florida in 1982. He received his Registered Municipal Securities Representative license in 1987 and his Registered General Securities Municipal Securities Representative license in 1988 with the NASD. I PFILIP G. HUNT, JR., President Mr. Hunt has been in the public finance industry for thirteen years, with the last eight being the principal of Gardnyr Michael Capital, Inc. Mr. Hunt has extensive experience in computer assisted financial programming as well as financial and legal structuring. From May 1986 to April 1991 Mr. Hunt served as research analyst and investment banker for Southeastern Municipal Bonds, Inc., another regional firm in Orlando, Florida. Since 1986, Mr. Hunt has been involved in various types of general obligation and revenue bond financings including advance refunding, electric utility, water and sewer, solid waste, road improvements, criminal justice facilities, single and multi- family housing, healthcare, stadium, note financings, and swaps. I I Mr. Hunt graduated from Florida State University, Tallahassee, Florida in 1984 with a B.S. in Finance and Economics and in 1985 with an MBA in Finance. He is the licensed principal of the firm holding the Series 7, 24, 27, 53, and 63 industry licenses. . Undenvriter JAMES M. PIETKIEWICZ, Executive Vice President Mr. Pietkiewicz is in charge of underwriting, trading and sales for Gardnyr Michael. In this capacity, he is constantly monitoring market conditions and in contact with several tax-exempt issuers. Mr. Pietkiewicz has been involved as managing underwriter on numerous Florida and Alabama issues and has been involved with over GARDNYR MICHAEL eAPIT AL, INC. I I I I I I I I I I I In Response to Request for Proposals for Underwriting Services City of Winter Springs, Florida February 17, 1999 1,000 syndicates in his career. As Executive Vice President for Underwriting and Trading, Mr. Pietkiewicz is responsible for pricing and marketing all financings for Gardnyr Michael. His knowledge of the municipal markets enables Gardnyr Michael to advise our clients as to the effects that the various alternative structures will have on their financings. Mr. Pietkiewicz started his career in municipal sales with Merrill Lynch in 1984. Since that time he has gained additional valuable experience on the trading and sales desks of Dean Witter and Southeastern Municipal Bonds. Mr. Pietkiewicz graduated from Auburn University with a B.A. in Political Science in 1978 and received his M.RA. from Rollins College, Crummer School of Finance, Winter Park, Florida in 1984. Mr. Anthony A. Grey and Mr. J. Franklin Sands will be assisting Mr. Pietkiewicz with the pricing, underwriting and marketing of the City's financing. ANTHONY A. GREY, First Vice President Mr. Grey brings nearly 20 years of experience in the securities business to Gardnyr Michael. He has been with the firm since 1994 and has worked with a diverse cross section of the firm's clients. A native of New York, Mr. Grey began his career with Paine Webber, on their municipal trading desk in Manhattan. He proceeded to the Orlando office of Paine Webber where he was a financial advisor for the finn. In 1986, Mr. Grey accepted a position of Assistant Branch Manager and Vice President of Prudential Securities. Mr. Grey's experience in the securities business enables him to bring knowledge of trading, portfolio management, financial advisory, sales and marketing to the firm. I A resident of Winter Park, Florida he holds a RS. in Accounting from St. John Fisher College in Rochester, New York. Over the years he has been active in numerous civic organizations. Mr. Grey is a Paul Harris Fellow and presently serves on the advisory board for the Boys Town of Central Florida. I J. FRANKLIN SANDS, Senior Vice President Mr. Sands brings to Gardnyr Michael extensive experience in municipal underwriting, municipal finance marketing, institutional sales, and sales management with major investment banking firms over a twenty-five-year period. Mr. Sands began his banking career with the Philadelphia National Bank, ultimately serving in their New York City Representative's office. Other firms which Mr. Sands represented include Morgan Guaranty Trust Company, Shearson American Express and Smith Barney Harris Upham. In 1984 Mr. Sands left New York City to become Senior Vice President of M. G. Lewis & Company in Winter Park, Florida where he managed their municipal sales effort. . Mr. Sands graduated from the University of Pennsylvania in 1960 and attended New York University Graduate School of Business. GARDNYR MICHAEL CAPITAL, INC. I I I I I I I I I I I I - In Response to Request for Proposals for Undenvriting Services City of Winter Springs, Florida February 17, 1999 3. Has your firm, or members of your firm, have any prior experience as senior manager or co-manager on previous City of Winter Springs issues. If so, please describe. Both the firm of Gardnyr Michael Capital, Inc. and several professionals with the firm have previous experience with issues for the City of Winter Springs. Pfil Hunt acted as primary banker and Jim Pietkiewicz and Frank Sands served as underwriter/lead salesman when the firm served as senior manager for the City's $16,050,000 Series 1993 Capital Improvement Revenue Bonds, and co- manager for the City's 9,365,000 Series 1993 Capital Improvement Refunding Revenue Bonds. Also, Michael Stewart and Frank Sands represented Gardnyr Michael Capital Leasing recently with an offering of the winning bid for a $134,568.00 EMS vehicle lease-purchase financing for the City. . - I GARDNYR MICHAEL CAPITAL, INC. I I I I I I I I I I I I I I I I In Response to Request for Proposals for Underwriting Services City of Winter Springs, Florida February 17, 1999 4. Please list the Florida financings your firm has serviced as a Senior manager or Co-Manager over the past three (3) years, the type of revenue source, size of transaction, T.I.C. and underwriting cost for each issue. See following charts. . . GARDNYR MICHAEL CAPITAL, INC. - - - - - Role Issuer SM SM SM SM SM SM CSM CSM CSM SM SM SM SM SM SM SM SM SM SM SM CSM SM CSM SM SM SM City of South Bay, FL City of Port St. Joe, FL City of Cocoa, FL City of Winter Park, FL State of Florida - Department of Juvenile Justice Central Florida Healthcare, Inc. Orange County Housing Finance Authority Orange County Housing Finance Authority Orange County Housing Finance Authority City of Madison, FL City ofMacclenny, Florida Lee County Industrial Development Authority Lee County Industrial Development Authority ACT Corporation City of Aubumdale, Florida City of Belle Glade, Florida ACT Corporation, FL City of Groveland, Florida Trenton Medical Center, Florida City of Hawthome, Florida Orange County Health Facilities Authority, Florida Wauchula, Florida Arcadia, Florida Cedar Key, Florida Town ofWelaka, Florida Dixie County, Florida - - - - - - SENIOR MANAGER EXPERIENCE FLORIDA SINCE 1/1/94 Name of Issue Water & Sewer Bond Anticipation Notes, Series 1998 Capital Improvement Bond Anticipation Notes, Series 1998 Capital Improvement Revenue Bonds, Series 1998 Park Avenue Improvement Revenue Bonds, Series 1998 Certificates of Lease, Series 1998 (St. Johns County Facility) Taxable RD Loan Anticipation Notes, Series 1998 Variable Rate Housing Revenue Refunding Bonds, Series 1998J Multifamily Housing Revenue Bonds, Series 1998 A Taxable Multifamily Housing Revenue Bonds, Series 1998 B Water and Sewer Revenue Bonds, Series 1997 Capital Improvement Revenue Refunding Bonds, Series 1996 North Fort Myers Utilities Project, Series 1996 A North Fort Myers Utilities Project, Series 1996 B Taxable FmHA Loan Anticipation Refunding Notes Water and Sewer Revenue Bonds, Series 1995 Water and Sewer Revenue Bonds, Series 1995 Taxable FmHA Loan Anticipation Notes Water and Sewer Revenue Bond Anticipation Notes Taxable FmHA Loan Anticipation Notes Sewer Revenue Bond Anticipation Notes Hospital Revenue Bonds Utility Refunding Revenue Bonds Dedicated Pool Local Government Revenue Bonds Cedar Key Special Water and Sewage Anticipation Notes Water Revenue Bonds, Series 1993 Public Improvement Revenue Bonds - - - - - - - - In Response to Request for Proposals for Undenvriting Services City of Winter Springs, Florida February 17, 1999 Maturity Insurance/ Revenue Amount Date Rating Spread Pledge 1,339,000 1999 NR 7.50 Water and Sewer 2,500,000 1999 NR 7.50 Guaranteed Entitlement 4,560,000 2022 MBIA 5.50 PST and Franchise Fees 4,020,000 2021 Aa3 6.39 Annual Appropriation 19,984,000 2019 MBIA 19.90 Annual Appropriation 2,039,400 1999 NR 10.00 Healthcare Revenues 7,855,000 2038 FNMA 5.00 Rental Income 8,500,000 2038 FNMA 12.00 Rental Income 1,400,000 2038 FNMA 12.00 Rental Income 2,240,000 1997 NR 7.50 Water and Sewer 3,160,000 2026 AMBAC 15.00 Water and Sewer 12,470,000 2025 BBB 9.80 Water and Sewer 1,200,000 2005 BBB 9.80 Water and Sewer 1,668,000 1996 NR 9.00 Healthcare Revenues 16,825,000 2025 AMBAC 7.95 Water and Sewer 13,060,000 2015 FSA 9.50 Water and Sewer 1,668,000 1995 NR 7.50 Healthcare Revenues 1,951,000 1995 NR 7.50 Water and Sewer 534,700 1995 NR 15.00 Healthcare Revenues 1,262,500 1995 NR 10.00 Water and Sewer 96,255,000 2015 MBIA 7.80 Healthcare Revenues 5,000,000 2009 FSA 8.00 Water, Sewer, Elecric 45,335,000 2020 FGIC 12.22 Pool Loan Revenues 579,600 1994 NR 15.00 Water, Sewer, Elecric 1,028,800 1994 NR 10.00 Water, Sewer, Elecric 3,300,000 1994 MIG-I 7.50 Sales Tax GARDNYR MICHAEL CAPITAL, INC. - - - - Role Issuer - - - - - - - - - - - - - - - CO-MANAGER EXPERIENCE FLORIDA SINCE 1/1/94 Name of Issue In Response to Request for Proposals for Undenvriting Services City of Winter Springs, Florida February 17, 1999 Amount Maturity Insurance! Date Rating Spread CM CM CM CM CM CM CM CM CM CM CM City of Cocoa, FL Water and Sewer Escambia County Utilities Authority Greater Orlando Aviation Authority City of Cocoa, FL Orange County Housing Finance Authority City of Belle Glade, Florida Cocoa, Florida Water and Sewer Greater Orlando Aviation Authority, Florida City of Winter Springs, Florida City of Winter Park, FL Florida Keys Aqueduct Authority Water and Sewer System Refunding Revenue Bonds, Series 1999 Sanitation System Improvement and Refunding Bonds, Series 1998 Airport Facilities Revenue Bonds, Series 1997 Water and Sewer Improvement Revenue Bonds, Series 1997 Multifamily Housing Rev. Bonds, Series 1997 B (pointe Vista Apts.) Water and Sewer Revenue Refunding Bonds Water and Sewer System Refunding and Improvement Airport Facilities Refunding Revenue Bonds Improvement Refunding Revenue Bonds General Obligation Bonds Water Revenue Refunding Bonds, Series 1993 24,430,000 18,200,000 169,880,000 27,500,000 9,850,000 7,130,000 40,645,000 95,135,000 9,365,000 6,895,000 34,565,000 2018 FGIC 2015 FSA 2027 FGlC 2026 FGlC 2037 FNMA 2012 FSA 2023 MIBAC 2018 Al\1BAC 2018 AMBAC 2003 AalAA 2021 AMBAC 5.46 Water and Sewer 4.69 Solid Waste Fees 6.85 Airport Revenues 5.50 Water and Sewer 10.00 Rental Incomes 9.70 Water and Sewer 7.23 Water and Sewer 7.45 Airport Revenues 6.25 Water and Sewer 5.00 General Obligation 8.20 Water Revenues GARDNYR MICHAEL CAPITAL, INC. I I I I I I In Response to Request for Proposals for Underwriting Services City of Winter Springs, Florida February 17,1999 5. AssumingJhe issues would qualifY for bond insurance, what rating strategy for marketing the bonds would you recommend? Over the past few years, bond insurance companies have gotten very aggressive on their premiums. The result has been that most ratable issuers are better off purchasing bond insurance than going with a stand-alone rating. Our analysis shows that an issuer must have a rating of at least "AA" before they are better off going with a stand-alone rating compared to purchasing bond insurance. The City of Winter Springs is financially sound, but does not have the population base to qualifY for an "AA" rating. Assuming an insurance premium of25 basis points, and an underlying rating of "A", the City will have present value debt service savings by purchasing bond insurance. . - GARDNYR MICHAEL eAPIT AL, INC. I I I I I I I I I I I I I I I I I I In Response to Request for Proposals for Undenvriting Services City of Winter Springs, Florida February 17, 1999 6. Provide an estimate of total fees and expenses your firm would charge assuming bond insurance for the following sized bond issues. $1 Million - $5 Million $5 Million - $10 Million Gardnyr Michael Capital, Inc. would propose total underwriting fees for issues of $1 Million - $10 Million of between $5.00 - 7.50 per bond including all underwriters' expenses. We will be willing to negotiate these fees with the City and the City's financial advisor. If the underwriting spread becomes the major determining factor for selection, we will match any reasonable low bid to keep the business local. i GARDNYR MICHAEL CAPITAL, INC. I I I I I I I I I I I I . I I - - - In Response to Request for Proposals for Undenvriting Services City of Winter Springs, Florida February 17,1999 7. Marketin2 strate2V and distribution capabilities. Please describe your approach to marketing, both rated and non-rated issues, type of investor you would seek and geographical location of where the bonds would be marketed from. Should the issue be non-rated, does your firm have a credit approval process? If so, what is that process? Gardnyr Michael Capital is pleased to announce that it recently formed a sales alliance with New Jersey-based IB. Hanauer & Co. Between the two firms we have access to over 250 institutional and retail sales people. Gardnyr Michael has four southeastern sales offices in Winter Park and Gainesville, Florida and Mobile and Birmingham, Alabama. IB. Hanauer has three southeastern sales offices in Tampa, West Palm Beach and Hallandale, Florida. As with many other firms, prior to pricing we try to determine the demand and pricing differentials between the institutional and retail markets. For institutional sales we contact the potential buyers one to three weeks prior to pricing to discuss possible structure, preferable sale dates, forward calendar, and pricing views. Two days to one week in advance of the sale date we mail pas's. We again contact the recipients of the pas's and assess buyer interest and notify the book running manager of views and ideas which will affect final pricing. We have developed a unique retail marketing strategy for issues where we believe there will be large retail demand. Unlike most Wall Street brokers, our sales people specialize only in municipal bond sales. Our sales staff is very knowledgeable in municipal bonds and can answer most questions that a potential buyer may have. Firstly, Gardnyr Michael has developed a profile of the municipal bond buyer that resides in Florida. We would be utilizing that profile to determine our target market in and around Winter Springs. Gardnyr Michael would begin a mailing campaign directed at the target market, which would begin two weeks before the issue is priced. Secondly, we would place an advertisement on the bond issue in the local newspaper (Orlando Sentinel) in the business or financial section. This optimizes our reach including individuals that we may have missed with our target mailing. By canying out this strategy we will generate a large inquiry about the bond issue. The incoming phone calls will be handled by a municipal bond specialist. The results of these efforts accomplish two goals. a. Increased retail sales can often times lower the overall borrowing cost to the issuer, and b. Increased local resident awareness and involvement can have good public relations side effects. For example, Gardnyr Michael was recently hired to senior manage a $4,020,000 bond issue for the City of Winter Park, Florida where this very issue oflocally available bonds was a major concern with the City Commission and staff. In the Winter Park financing the sales people at Gardnyr Michael took advantage of targeted direct mail, newspaper advertising, and a local community newsletter publication. These forms of media were utilized for one month prior to pricing to generate substantial local demand. Several days prior to pricing the sales people contacted the interested respondents and mailed them copies of the pas. One day prior to the pricing we ran a special retail pricing period. GARDNYR MICHAEL CAPITAL, INC. I I I I I I I I I I I I In Response to Request for Proposals for Undenvriting Services City of Winter Springs, Florida February 17, 1999 On the day of pricing these orders were reconfirmed and augmented with institutional orders. This same local retail scenario can be utilized in Leon County's financings. Below is a copy of one of the advertisements used in the Winter Park financing. This is neither an otTer to sell nor a solicitation of an otTer to buy these bonds. This is onlv an advertisement Dated: JULY 15, 1998 $4,005,000 CITY OF WINTER PARK FLORIDA P ARK A VENUE IMPROVEMENT REVENUE BONDS - - SERIES 1998 Aa3 Rated by Moody's I The undersigned is serving as Senior Managing Underwriter . . Gardnyr Michael Capital, Inc. For more information or a preliminary official statement please call: Tony Grey @ 629-4600 GARDNYRMICHAEL CAPITAL, INC. I I I I I I I I I I In Response to Request for Proposals for Underwriting Services City of Winter Springs, Florida February 17, 1999 Gardnyr Michael's credit committee for non-rated financings includes senior management in the Winter Park office. Four members of senior management are polled regarding creditworthiness of non-rated issues, with the final vote being taken by the two shareholders. The shareholders must vote unanimously to proceed. Generally speaking, non-rated issues are sold primarily to institutional buyers. There are exceptions, however, when certain issues that are too small for credit enhancement, but have good credit, such as general obligations or water and sewer revenue issues, can be sold retail. ii - - iiii GARDNYR MICHAEL CAPITAL, INC. I I I I I I I I I I I I I I I I . II In Response to Request for Proposals for Undenvriting Services City of Winter Springs, Florida February 17, 1999 8. Identify fully the extent to which your firm or individual partners or employees are the subject of any ongoing municipal securities investigation, are a party to any municipal securities litigation or arbitration, or are the subject of a subpoena in connection with a municipal securities investigation. In addition, include any such investigations which concluded in an enforcement or disciplinary action ordered or imposed in the last three years. Neither the firm nor any partner or employees are the subject of any ongoing municipal securities investigation or a party to any municipal securities litigation or arbitration, or are the subject of a subpoena in connection with a municipal securities investigation. In addition, there have not been any investigation which have concluded in an enforcement or disciplinary action ordered or imposed in the last three years. GARDNYR MICHAEL CAPITAL, INC. I I I I I I I I I I I - In Response to Request for Proposals for Undenvriting Services City of Winter Springs, Florida February 17, 1999 9. MSRB Rule G-38: Please indicate whether your firm has retained the services ofa consultant who is not regularly employed by the firm who will represent the firm's interest with respect to this RFP. Provide the name of the consultant and the compensation. If the consultant is covered by the firm's most recent G-38 report, you may attach and reference the report. If the consultant is not included in the most recent report, provide the requested information. Please provide a statement of positive assurance indication that your firm and all of its representatives are not presently being investigated or in violation of Rule G-38, or attach a stafement describing the current status of such investigations or violations. The firm and all of its representatives are not presently being investigated or in violation of Rule G- 38. GARDNYR MICHAEL CAPITAL, INC. I I I I I I I I I I . . - - - iiii In Response to Request for Proposals for Undenvriting Services City of Winter Springs, Florida February 17, 1999 10. Conflict of Interest Statement Will the selection of your firm result in any current or potential conflict of interest? If so, your firm's response must specify the party with which the conflict exists or might arise, the nature of the conflict and whether your firm would step aside or resign from the engagement or representation creating the conflict. Please include Conflict of Interest Statement. The selection of Gardnyr Michael Capital, Inc. will not result in any current or potential conflict of interest. GARDNYR MICHAEL CAPITAL, INC. I I I I I I I I I I I I I I I I I In Response to Request for Proposals for Underwriting Services City of Winter Springs, Florida February 17, 1999 11. References Provide a list offive (5) references with a contact name, telephone number and fax number for similar issues who may be contacted by the City. Mr. Robert Green, City Manager CITY OF AUBURNDALE, FLORIDA P.O. Box 186 Auburndale, Florida 33823 941/965-5506 Mr. Rick Holt, Finance Director CITY OF COCOA, FLORIDA 603 Brevard Ave. Cocoa, Florida 32922-1750 (407) 639-7551 Bob Hattaway, Chairman GREATER ORLANDO AVIATION AUTHORITY Orlando International Airport One Airport Boulevard Orlando, Florida 32827 (407) 875-8111 Randy Knight, Assistant City Manager CITY OF WINTER PARK 401 Park Avenue Winter Park, Florida 32789 (407) 599-3236 Clay Connell, City Commissioner' CITY OF BELLE GLADE 110 S.E. Avenue E Belle Glade, Florida 33040 (561) 996-0100 . . . . - GARDNYR MICHAEL CAPITAL, INC. I I I I I I I I I In Response to Request for Proposals for Undenvriting Services City of Winter Springs, Florida February 17, 1999 12. In two (2) pages or less, please describe why your firm should be selected as either the Senior Manager or Co-Manager to the City. We believe that our firm is the most qualified to serve as the City's senior manager for the following reasons: Local Florida-based Firm Gardnyr Michael was incorporated in Winter Park, Florida in 1991. Since that time there has been a well advertised wave of failures, consolidations and mergers within the industry as well as major criminal investigations and disciplinary actions. In spite of this industry shakeout, Gardnyr Michael has continued to grow from two employees to eighteen, and has opened five offices in Florida, Alabama and New Jersey. While we have grown we have also remained free of any investigations and disciplinary actions that have plagued many of our industry's participants. We now remain one of only a handful of Florida-based investment banking firms and the only one headquartered in the Orlando- central Florida area. . Local Sales Force As we proved in the recent City of Winter Park financing, our local sales people do an outstanding job of selling to local retail in the central Florida area as well as institutionally. Winter SDrin2:s EXDerience Both the firm of Gardnyr Michael Capital, Inc. and several professionals with the firm have previous experience with issues for the City of Winter Springs. Pfil Hunt acted as primary banker and Jim Pietkiewicz and Prank Sands served as underwriter/lead salesman when the firm served as senior manager for the City's $16,050,000 Series 1993 Capital Improvement Revenue Bonds, and co- manager for the City's 9,365,000 Series 1993 Capital Improvement Refunding Revenue Bonds Also, Gardnyr Michael Capital Leasing recently offered the winning bid for a $134,568.00 EMS vehicle lease-purchase financing for the City of Winter Springs. Minority Involvement Another strength of Gardnyr Michael is our commitment to minority involvement within the firm. Eleven percent of our firm's employees, the two senior bankers in the Birmingham and Mobile, Alabama offices, are African-American. One of our senior bankers in the Gainesville, Florida office IS a woman. GARDNYR MICHAEL CAPITAL, INC.