Selection of Financial Advisor
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RECEIVED
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TO:
FROM:
SUBJECT:
DA TE:
Dennis M. Kissinger, City Manager
Robert K. Biles, Finance Director
i.. JAN 1 7 1989
CIT" MANACER'S OFFICE
Selection of Financial Advisor
January 17, 1989
As you will recall, City staff began the process of selecting a Financial
Advisor for the City of Salina last October by sending letters asking for
proposals to thirteen firms. These firms had either been in contact with City
staff or had placed advertisements in the Kansas Government Journal. This
letter asked each firm to introduce their firm, identify key staff members,
include a sample contract, provide references and provide sample official
statements. Proposals were due the day before Thanksgiving.
Proposals were received from nine firms. Over the next two weeks you and
reviewed the proposals and decided four firms should be interviewed. In
mid-December, Stern Brothers, Wichita, and Bin!)ham & Company, George K.
Baum & Company and B. C. Christopher & Company, all of Kansas City, were
notified of our desire to interview them. Interviews were tentatively set for
January 12 and 13, 1989 at the Kansas City offices for each firm.
After notifying the firms of our interview plans, you established the Financial
Advisor Task Force consisting of Bill Harris, Roy Dudark, you and myself.
Each member was assigned the task of reviewing the information submitted by
each firm. The task force met in early January to discuss the financial
advisory needs of the City, develop an interview plan and make further team
assignments. Three pages of interview questions covering broad topics such
as bond ratings, financial advisory services, legislative efforts, the firm and
several other topics were prepared.
We notified each firm the interview would consist of a 45 minute presentation
by the firm's personnel, a 90 minute interview session based upon questions
developed by the City and a less formal discussion over a meal. This met with
the approval of each firm. Also in the week before the interviews, we
contacted at least three references for each firm. Many of the references were
very frank in their assessments of the various firms. Based upon these
references, it was obvious we had selected four very competent firms as our
finalists.
We began the interview process by meeting with Randy Irey and Jerry Powell
of Stinson, Mag & Fizzell, our bond counsel, over breakfast. Randy and
Jerry answered several questions and provided some thoughts on possible
areas we should cover during our interviews. Shortly thereafter we began the
first of four interviews.
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As you know, each of the task force members came away from the 22 hours of
interviews with a much deeper understanding and appreciation for the services
performed by a good financial advisor. We also were impressed with the
professionalism exhibited by each firm and the capabilities they could offer us.
Although each of the firms were impressive, all four of us quickly agreed that
George K. Baum & Company could best meet the financial advisory needs of
the City of Salina over the next three years. Several factors mentioned for
selecting George K. Baum & Company were the depth of their staff, their
broad experience in Kansas, their involvement in national and state legislation
and the quality of the individuals who would be assigned to our account.
With your approval, I have asked Roger Edgar of George K. Baum & Company
to give the City Commission an introduction to his firm at the January 23rd
meeting. We will negotiate a financial advisory services agreement with George
K. Baum & Company and have it ready for the City Commission's consideration
on January 30th.