CITY OF OCOEE, FLORIDA Request for Qualifications (RFQ) #1603 for Investment Banking Services Due Date: August 22, 2016 Stifel, Nicolaus & Company, Incorporated (Federal Taxpayer Identification Number: 43-0538770) Matthew Sansbury, Managing Director (407) 956-6804 | [email protected] Margaret Lezcano, Managing Director (407) 956-6803 | [email protected] 111 N. Magnolia Avenue, Suite 1175 Orlando, Florida 32801 August 22, 2016 Ms. Joyce Tolbert Purchasing Agent, City of Ocoee 150 N. Lakeshore Drive Ocoee, Florida 34761 Dear Ms. Tolbert: On behalf of Stifel, Nicolaus & Company, Incorporated (“Stifel”), we are pleased to submit our response to the City of Ocoee’s (the “City”) Request for Qualifications for Investment Banking Services (“RFQ”). Stifel began as a single office in St. Louis in 1890 and today is a full service investment bank with approximately 395 offices and nearly 7,500 employees worldwide. Stifel brings deep expertise to providing financial services to an array of clients, including municipalities, individuals, public and private businesses, and institutional and professional money managers. At Stifel, our people make the difference, as our financial professionals respect the importance of relationships built on trust and value delivered. The points below highlight why the City would benefit from selecting Stifel as its senior manager: . EXTENSIVE FIRM-WIDE NATIONAL PUBLIC FINANCE EXPERIENCE According to industry league tables, Stifel has been the top ranked Public Finance Department based on the number of negotiated transactions completed annually since 2010. For 2016 YTD, Stifel once again tops the negotiated underwriter rankings, having senior managed 491 transactions (25% more than the second ranked firm) valued at a total par amount of approximately $10.8 billion (ranking us 7th nationally based on par amount underwritten). EXPERTISE UNDERWRITING SIMILARLY SIZED TRANSACTIONS Dating back to 1990, the City has completed seven public bond offerings, all of which were less than $20 million in par amount. The average size of a City public offering during this time period was $10.4 million. Since 2013, Stifel has senior managed 1,996 negotiated transactions with a par amount of $25 million or below. This makes Stifel the top ranked underwriter of these sized financings based on both number of deals issued and on total par amount underwritten. LOCAL PERSONNEL WITH DIRECT EXPERIENCE WORKING WITH FLORIDA CITIES Matthew Sansbury and Margaret Lezcano, Managing Directors, will serve as the lead contacts for the City throughout the proposed engagement. Combined, these two bankers have roughly 35 years of public finance experience focused on serving the needs of local Florida governments and authorities. These professionals have provided senior managed banking services on financings for Leesburg, Hialeah, Madeira Beach, Orlando, St. Pete Beach, Seminole County, and the School Boards of Highlands, Marion and Volusia Counties. In addition, Mr. Sansbury and Ms. Lezcano have provided recent co-managed banking services to Fernandina Beach, Kissimmee, Leesburg, Miramar, Miami Gardens, Miami Lakes, Orlando, Pembroke Pines, Riviera Beach, Charlotte County, Orlando Utilities Commission, South Florida Water Management District, Citizens Property Insurance Corporation and several school boards located throughout the State. STIFEL, NICOLAUS & COMPANY, INCORPORATED 111 N. Magnolia Avenue, Suite 1175, Orlando, Florida 32801 I www.stifel.com AUGUST 22, 2016 CITY OF OCOEE (RFQ #1603) . LARGE AND GROWING RETAIL DISTRIBUTION NETWORK Having a significant retail presence throughout the State provides direct access for local “mom and pop” investors interested in owning a stake in their community. Stifel’s 352 retail brokerage offices and 2,128 retail brokers manage approximately 735,000 retail accounts valued at $157.3 billion in assets. Our 20 retail brokerage offices in Florida keep up-to-date with changing interests and needs of Florida retail investors. These Florida retail offices are staffed by 122 financial advisors who manage nearly 30,500 client accounts with assets under management of $7.9 billion. DIVERSE INSTITUTIONAL DISTRIBUTION NETWORK Stifel currently has 47 fixed income institutional sales and trading offices nationally, which house 295 fixed income sales associates and 92 fixed income trading associates. In total, these sales and trading associates cover roughly 10,450 fixed income institutional accounts, significantly more than most investment banks. Three of Stifel’s institutional sales offices are located in Florida (Boca Raton, Rosemary Beach and Tampa). With a strong presence in the Midwest and western United States, Stifel has forged extensive relationships with Tier II and Tier III institutional investors, an attribute unique to a firm of our size. These relationships will increase the number of potential investors immediately for the City. STABILITY IN CHAOTIC MARKETS Stifel is one of the most financially sound independent investment banks in the country. The firm did not require nor request any federal TARP money in the aftermath of the 2008/2009 financial crises. Stifel’s total capital of $1.2 billion and excess net capital of $236 million positions the firm amongst the most well capitalized of all investment banks. As a show of our support for our municipal clients, since 2013 Stifel has underwritten over $2.8 billion in unsold bonds on negotiated transactions in which the firm served as senior manager. Given the uncertainty of the market, this strong capital position and our proven willingness to commit this capital on our clients’ behalf is a significant benefit provided by a firm that is as fiscally conservative as the City. Stifel appreciates the opportunity to compete for your business. The undersigned affirm that selecting Stifel as the City’s senior manager will not result in conflicts of interest with respect to the City. Further, we affirm that we have not contacted, or attempted to contact, any member of the Ocoee City Commission or any of the City’s staff members. Sincerely, STIFEL, NICOLAUS & COMPANY, INCORPORATED (FEIN: 43-0538770) Matthew Sansbury, Managing Director Margaret Lezcano, Managing Director 111 N. Magnolia Avenue, Suite 1175 111 N. Magnolia Avenue, Suite 1175 Orlando, Florida 32801 Orlando, Florida 32801 (407) 956-6804 | (407) 649-2145 fax (407) 956-6803 | (407) 649-2145 (fax) [email protected] [email protected] Table of Contents Question 1: Transmittal Letter ............................................................................................................................................ 1 Question 2: Overview of Firm ............................................................................................................................................. 2 Question 3: Public Finance Professionals .......................................................................................................................... 4 Question 4: Fixed Rate Underwriting Experience ............................................................................................................... 5 Question 5: Florida Capital Improvement Underwriting Experience ................................................................................... 6 Question 6: Florida Water and Sewer Underwriting Experience ........................................................................................ 9 Question 7: Marketing Strategy and Distribution Capabilities ........................................................................................... 12 Question 8: Client References ......................................................................................................................................... 14 Question 9: Underwriter’s Counsel ................................................................................................................................... 15 Question 10: Capital Position ............................................................................................................................................ 16 Question 11: Technical Support ........................................................................................................................................ 17 Question 12: Litigation...................................................................................................................................................... 18 Question 13: Additional Information ................................................................................................................................. 20 Appendices: Public Finance Professionals’ Resumes ............................................................................................................. Appendix A National Fixed Rate Underwriting Experience List .............................................................................................. Appendix B Florida Fixed Rate Underwriting Experience List ............................................................................................... Appendix C Florida Capital Improvement Fixed Rate Underwriting Experience List ............................................................. Appendix D Florida Water and Sewer Underwriting Experience List ...................................................................................... Appendix E Required Forms .................................................................................................................................................. Appendix