RFP NO: 2012-02 Financial Advisor Services for the City of North …purchasing.citynmb.org/2012-02Estrada Hinojosa.pdf · 2012. 1. 31. · 2937 SW 27th Avenue Suite 200B Miami, FL

RESPONSE TO:

RFP NO: 2012-02

Financial Advisor Services for the City of North Miami Beach

Primary Contact: Estrada Hinojosa & Company, Inc.

Lourdes Reyes Abadin Executive Vice President

[email protected]

2937 SW 27th Avenue, Suite 200B Miami, FL 33133

Telephone: (305) 507-0100 Facsimile: (305) 648-1002 Mobile: (305) 812-4345

February 1, 2012

www.ehmuni.com

RFP NO: 2012-02 Financial Advisor Services

Table of Contents

a) Title Page b) Table of Contents

Tab 1

c) Cover Letter and Executive Summary Page Tab 2

d) Firm Overview 1 e) Personnel and References 5 f) Long-term Strategic Financial Planning Experience 12 g) Tax-Exempt New Money and Derivative Product Experience 15 h) Taxable Financing Experience 16 i) Advanced and Current Refunding Experience 17 j) Market and Pricing Information 18 k) Disciplinary Action 22 l) Cost Proposal and Reimbursement for “Out-of-Pocket” Expenses 23

Tab 3

m) Acknowledgements 28

Tab 4 n) Appendices 29

Tab 1

2937 SW 27th Avenue Suite 200B Miami, FL 33133 (305) 507-0100 Fax (305) 648-1002

February 1, 2012 Brian K. O’Connor, Chief Procurement Officer City of North Miami Beach, Florida 17011 NE 19th Avenue, Room 315 North Miami Beach, FL 33162

Re: RFP NO: 2012-02, Financial Advisor Services Dear Mr. O’Connor: Estrada Hinojosa & Company, Inc. (“Estrada Hinojosa” or “Company”) is pleased to submit this response to your Request for Proposals to serve as Financial Advisor to the City of North Miami Beach (the “City”). Estrada Hinojosa is committed to assisting the City of North Miami Beach with all of its financial endeavors. The Company understands the scope of services requested by the City and pledges to deliver the highest quality of service. Estrada Hinojosa’s History, Organization and Continued Growth Estrada Hinojosa’s inception began in 1992 and takes its name from the capable leadership of Mr. Robert A. Estrada and Mr. Noe Hinojosa, Jr. Estrada Hinojosa is a privately-held corporation that is 100% Hispanic-owned and employee-owned. Even with the recent economic downturn, no recent changes in the structure or ownership of the firm have occurred, and the firm has not had to reduce personnel. In fact, over the last two years, Estrada Hinojosa has added employees and resources to enhance our national presence. Since 2009, we opened offices in Austin, Texas, Chicago, Illinois, New York City, New York and Phoenix, Arizona. Estrada Hinojosa’s Financial Advisory Qualifications Estrada Hinojosa is well recognized as a leader in providing investment banking services to municipal issuers. Our technical expertise and dedication have resulted in our ranking as one of the leading minority-owned firms in the nation. Since the creation of Estrada Hinojosa in January of 1992, we have provided financial advisory and/or underwriting services to numerous issuers for a wide range of projects. To date, Estrada Hinojosa has completed 1,201 financial advisory transactions totaling $65.96 billion in par value. Proven Financial Advisory Experience with Cities The firm’s overall experience in providing financial advisory services to cities includes 612 transactions totaling over $37.2 billion in par value. This financial advisory activity attests to our ability to meet the needs of cities, whether those cities are some of the largest in the country, or are small cities located throughout the United States. Florida Commitment, Experience and Technical Ability Estrada Hinojosa enhanced its commitment to issuers in Florida in 2003 by establishing an office in Miami, Florida managed by Ms. Lourdes Reyes Abadin, an investment banker with 22 years of Florida public finance experience. This commitment has resulted in the firm participating in 149 Florida financings totaling $20.23 billion in par value. Estrada Hinojosa is very selective with its Financial Advisor clients, since at Estrada Hinojosa we view the Financial Advisor role to be an extension of the Finance Department’s staff.

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City of North Miami Beach, FL Proposal to serve as Financial Advisor

1

SECTION 4.0 PROPOSAL FORMAT-SUBMIT

D. Firm Overview Provide a brief description of how your firm is organized, including the businesses in which it is engaged, the location of offices, the number of public finance professionals in each office, and the role of the municipal department in your firm. Indicate your firm's commitment to the municipal bond industry and comment on any recent significant changes in your organization. Include a discussion of the specific expertise and services that distinguish your firm. Company History - Estrada Hinojosa & Company, Inc. was established in January of 1992 by Mr. Robert A. Estrada and Mr. Noe Hinojosa, Jr. The Company prides itself in being a regional minority-owned and 100% employee owned investment banking firm. The firm is a full service investment banking firm headquartered in Dallas, Texas. Our banking professionals specialize in public finance, and provide expertise in municipal financial advisory, underwriting services, investment advisory, technical analysis and transaction processing, as well as monitoring outstanding debt for opportunities to realize savings, restructuring debt service or revising covenants. Being a full service investment banking firm allows us to assist our underwriting clients with the most recent market data, pricing tactics, buyer preferences and other relevant information. Our experience in providing such services transcends our Texas border to include clients in Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Louisiana, New Mexico, New York and Wisconsin. Estrada Hinojosa is fully registered as a broker/dealer with the Financial Industry Regulatory Authority (“FINRA”) – formerly the National Association of Securities Dealers (the “NASD”), and is a member of the Securities Investor Protection Corporation (the “SIPC”). Firm Stability and Growth Estrada Hinojosa is a privately-held small business corporation that is 100% employee-owned and 100% Hispanic-owned. Estrada Hinojosa is led by Mr. Noe Hinojosa, Jr., who serves as President and Chief Executive Officer. Mr. Hinojosa is responsible for all managerial decisions within the firm, as well as the oversight of all personnel. Mr. Robert Estrada serves as Chairman and Chief Compliance Officer. In addition, Messrs. Adrian Galvan, Jorge Garza, Donald J. Gonzales, Lawrence E. Jordan, and Thomas B. Nolan serve on the Management Committee. There are no outside investors, and the firm has no outstanding corporate debt. Over the last few years, Estrada Hinojosa has added personnel in the banking area to enhance services to issuer clients. No recent changes in the structure or ownership of the firm have occurred, except the addition of more professional staff to serve our clients. Since 2008, the Firm has opened 4 new offices; in Austin, Chicago and New York City as well as added more professional staff. The most recent addition is an office in Phoenix, Arizona. As a result of our firm’s growth to accommodate additional business demands, it is very unlikely we would experience any downsizing, even in this unusually slow business cycle. While some competitor firms laden with huge losses from the current financial crisis have changed their business model, ownership structure, or exited the industry, Estrada Hinojosa continues to grow and serve municipal clients as a financial advisor and municipal underwriter. Commitment to Public Finance - Estrada Hinojosa’s commitment to public finance is well-documented. Almost 100% of the Company’s revenues are from public finance, so public finance is our major concern and focus. Our full participation in the market assists our financial advisory clients. As a firm that frequently puts our capital at risk, Estrada Hinojosa has an incentive to closely follow current levels in the market. Estrada Hinojosa’s

BondUnderwriting

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InvestmentAdvisory

FinancialAdvisory

PublicFinance


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marketing desk is an asset to the City. Our daily involvement in the underwriting, sales and trading of fixed income securities enables us to offer the most up-to-date information on trading levels for any type of security. Estrada Hinojosa is able to execute a financing, providing expertise in the areas of banking, credit, quantitative and marketing, from start to finish. Our participation in numerous financings, either as financial advisor or as underwriter, ensures that all of our professionals offer the latest financing techniques to our clients. In addition to our commitment to Public Finance, another advantage to engaging a firm, such as Estrada Hinojosa, is the attention to detail that we will provide in an effort to accomplish our clients’ goals. Our technical expertise and dedication have resulted in the continuous growth of our firm over the past 20 years. Location of Banking Support Estrada Hinojosa maintains one office in Florida and eight more offices nationwide. If selected as financial advisor, the banking support will be a cooperative effort between our Florida office and our Headquarters Office in Dallas, where the Trading Desk is located. The day-to-day banker on this engagement will have full access to the firm’s resources which makes the firm’s overall expertise available to the City.

Florida Office: Headquarters: 2937 SW 27th Avenue, Suite 200B 1717 Main Street, Suite 4700

Miami, FL 33133 Dallas, TX 75201 Telephone: 305-507-0100 Telephone: 214-658-1670 Facsimile: 305-648-1002 Toll Free: 800-676-5352

Cell: 305-812-4345 Facsimile: 214-658-1671 Estrada Hinojosa currently has 41 employees; of these, 30 are experienced bankers; 4 of whom joined the Firm in the last year. The Firm maintains offices at the following locations:

Austin, TX (1 person) Chicago, IL (1 person) Dallas, TX (Headquarters) (25 persons) Houston, TX (3 persons) Miami, FL (2 persons) New York, NY (2 persons) Phoenix, AZ (1 person) San Diego, CA (1 person) San Antonio, TX (5 persons)

Overall Experience Estrada Hinojosa is consistently positioned among the top investment banking firms in the country. Since the creation of Estrada Hinojosa in 1992, the firm has provided public finance services on 3,231 financings totaling more than $245 billion The Firm understands the complicated political, legal, and financial issues faced by counties and cities. Estrada Hinojosa has assembled a team of professionals that have significant experience working with city credits. The individuals assigned have in-depth combined financial advisor and underwriting experience and can compete with the best of the national and regional firms. Having an underwriting desk has proven to be extremely valuable to our financial advisor clients because we can provide up-to-the-minute market information instead of relying on past days’ indices and out-of-date buyer’s demands.

Estrada Hinojosa’s National Presence


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Since inception, the firm has served as underwriter on 622 city financings totaling more than $23.6 billion and has served as financial advisor on 612 city financings totaling more than $37.2 billion in par amount. The chart below illustrates the Company’s continuous growth. This is a testament to the quality of work we provide and our clients’ continuing loyalty in engaging our services. The firm’s volume of financings ensures that we maintain a constant presence in the municipal market and that we remain up-to-date on state-of-the-art financing techniques.

During the past few years, Estrada Hinojosa professionals have assisted cities with the following types of financings:

Certificates of Obligation Civic Center Convention Complex Revenue Bonds Combination Tax and Airport Revenue Certificates of Obligation Combination Tax and Revenue Certificates of Obligation Combined Utility System First Lien Revenue Refunding Bonds Drainage Utility System Revenue Bonds Electric and Gas Systems Revenue Bonds Equipment Acquisition Contractual Obligations General Obligation Bonds General Obligation Public Improvement and Refunding Bonds General Purpose Bonds

Hotel Occupancy Tax Subordinate Lien Revenue Bonds International Toll Bridge System Revenue Bonds Public Improvement Refunding Bonds Public Power Finance Contractual Obligations Senior Lien Revenue and Refunding Bonds Tax Notes Taxable Pension Obligation Bonds Utilities System Revenue Refunding Bonds Water System Revenue Bonds Water and Sewer System Revenue Refunding Bonds

Experience With Various Debt Instruments Estrada Hinojosa and the bankers assigned to the account have significant experience with various debt instruments, including the following: assessment bonds industrial development bonds multi-modal securities certificates of participation interest rate swaps project revenue bonds commercial paper lease agreements special tax bonds contract revenue bonds lease purchase agreements system revenue bonds

Estrada Hinojosa & Company, Inc. National Experience

Financial Advisor and Underwriting Roles


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Cities58%

Counties11%

Education16%

Transportation 15%

development agreements letters of credit tax anticipation notes general obligation bonds lines of credit variable rate bonds Experience with Various Credits Estrada Hinojosa and the bankers assigned to the account have significant experience with various credits, including the following: convention center pension obligation special revenue general obligation public improvement district stadium healthcare public power student loans higher education public private partnership tax increment financing housing rail toll road international toll bridges sales tax water and wastewater not-for-profit school district Financial Advisory Experience The following chart highlights the fact that Cities are our major clients and attests to our ability to provide the City with its requested scope of services, having done so for numerous cities nationwide. Financial Advisory Services Estrada Hinojosa has been offering financial advisory services since its founding in 1992. The Firm has been privileged to serve as a financial advisor to cities, counties, institutions of higher education, school districts, state agencies, water and wastewater districts, as well as other political subdivisions. Although every one of these financings has had some unique aspect, constraint, or condition, there has also been a great deal of similarity among these financings. For example, each of these financings has started with the comprehensive development of a financing plan, including a detailed analysis of the sources and uses of funds; each has been constrained by a set of legal conditions and powers; and each has contained marketing issues, including the ability to secure appropriate ratings, in some cases, bond insurance and, ultimately, the ability to sell the issuer’s debt at economically attractive or viable rates and conditions. Our approach to providing financial advisory services is described below. Optimal Market Pricing Estrada Hinojosa professionals are well-versed on the specific issues that our clients face. Our lead bankers have witnessed years of changing economic conditions and have structured financings in these market environments. As professionals, we monitor current market conditions on a daily, even hourly basis. We meld our years of public finance experience with up-to-the-minute market knowledge to ensure that our clients will receive the best possible financing directives given the current conditions, the nature of the projects, and the specific attributes of the objectives. Estrada Hinojosa assists with the selection of financial teams and will specifically tailor our approach to meet the desires of our clients as to the level of involvement, grading criteria, conflicts of interest, and other concerns, duties and assignments.


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E. Personnel and References Provide the names, proposed roles, background and experience, office location and availability of the personnel that would work on the City's account, and specifically identify the primary person(s) who will be responsible for managing the relationship with the City of North Miami Beach. Identify who will provide any computer financial analysis services. For the proposed personnel, provide a list of five clients worked with in the last 36 months; a brief description of the type and size of transaction and the services you provided; and the names, titles, addresses and telephone numbers of the government officials primarily responsible for the transactions. You should only list clients and transactions which are similar to financings contemplated by the City (i.e., taxable or tax-exempt new money issues, variable rate financings, refundings, derivatives, etc.). Also include a list of your personnel's experience in the State of Florida and provide three additional client references for your firm. Financial Advisor Team for the City of North Miami Beach Estrada Hinojosa uses the “team approach” when providing services to our clients. This team effort will be led by Ms. Lourdes Reyes Abadin, manager of our Florida branch office, who will assume the day-to-day responsibilities in supporting the City’s financings. Ms. Abadin will work closely with Mr. Robert Estrada who will be available to the City to ensure the City has the Firm’s complete resources towards achieving its goals. The entire network of professionals assures each client complete dedication and an unparalleled standard of quality and purpose with the completion of every transaction. Because of the Company’s relatively small size, all professionals share account responsibility, thereby enabling optimal communication with clients and ensuring clients access to the Company’s resources and specialized professionals.

ESTRADA HINOJOSA FINANCE TEAM FOR THE CITY Name Title Role Location Availability

Lourdes Abadin Executive Vice President Lead Banker/Primary Contact Miami, FL 100% Robert Estrada Chairman Project Supervision Dallas, TX 100% Adrian Galvan Managing Director Quantitative Analysis Dallas, TX 100% Paul Jack Executive Vice President Resource Banker Austin, TX 80% Cristina Zeinali Associate Analysis Support Miami, FL 100% Thomas B. Nolan Managing Director Credit, Sales and Marketing Dallas, TX 80% Ross Moring Senior Vice President Trading and Underwriting Dallas, TX 80% Virgil Wiesner Senior Vice President Trading and Underwriting Dallas, TX 80%

Lead Banker- Miami, Florida Lourdes Reyes Abadin leads Estrada Hinojosa’s efforts in providing municipal bond services to governmental entities in the state of Florida. Ms. Abadin has been involved with Florida public finance for the over 22 years having initially served on the public side where she eventually rose to the positions of Chief Financial Officer (CFO) to the Miami Sports & Exhibition Authority (an independent government entity) and Comptroller to the City of Miami. As a result of her governmental experience, she is sensitive to the goals and objectives from an issuer’s point of view.

LOURDES REYES ABADIN

Executive Vice President

2937 SW 27th Avenue ■ Suite 200B ■ Miami, Florida 33133

(305) 507-0100 ■ Cell (305) 812-4345 [email protected]

Member FINRA/SIPC


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Ms. Abadin commenced her Public Finance career as the Finance Director for the Miami Sports & Exhibition Authority where she was responsible for several bond issues related to the Miami Arena. She also provided the financial analysis utilized in the lobbying efforts for the appropriation of sales tax from the Florida state legislature to fund improvements for the Joe Robbie stadium to accommodate the Florida Marlins. Ms. Abadin was also involved with analysis regarding the location of a Major League stadium for the Florida Marlins. Five proposals had been presented for a Major League Baseball Stadium located within the City of Miami CRA boundaries, removing properties currently on the tax rolls, but also increasing the assessed values of the surrounding real estate. Ms. Abadin developed a report that focused on the financial impact of the proposed Baseball Stadiums on the CRA’s Tax Increment Revenues, its primary source of funding. It was very important that the development of this area consider the CRA’s Tax Increment Revenues in order for it to prosper and profit from its economic expansion. Over the years, Ms. Abadin has gained much recognition for her in-depth knowledge and vast experience in Florida public finance and she is also credited for her experience in other diverse sectors. Prior to being involved with Municipal Finance, she worked for Florida Power & Light and was involved in the Quality Improvement Program that earned FPL the Deming Award of Excellence. She specialized in investment banking when she joined a Wall Street Firm in 1993. Her work has included developing financial structures, credit enhancement, and development of bond rating presentations, preparation of official documents, and the pre-marketing of bonds. She has concentrated on Florida municipal capital/bond markets and has experience with many sectors of the municipal market. Furthermore, her experience includes the following types of financings:

• Taxable and Tax-exempt Securities • Tourist Development Tax • Convention Development Tax • Sales Tax Rebates • Covenant to Budget and Appropriate

• Water, Stormwater and Sewer Fees • General and Special Obligation Bonds • Special Revenues • CRAs • TIFs

Since joining the firm in 2003, Ms. Abadin has grown our Florida client base, resulting in Estrada Hinojosa being selected to serve more municipalities in Florida as Financial Advisor. She has served as Financial Advisor to the City of North Bay Village, Town of Miami Lakes, the City of Sweetwater and the Village of Key Biscayne during her tenure at Estrada Hinojosa. Additionally, under a previous employer, Ms. Abadin served as Financial Advisor to the following issuers:

City of Miami CRA Miami Sports & Exhibition Authority Miami-Dade County Water and Sewer and Seaport departments City of Miami Beach City of Aventura Florida Ports Financing Commission

Miami-Dade Expressway Authority

Ms. Abadin holds a Bachelor of Science degree in Finance from Florida International University, and has taken MBA studies at Nova Southeastern University. She is a Certified Government Finance Officer (CGFO), and is a FINRA Series 7 and Series 63 Registered Representative. ROBERT A. ESTRADA, Chairman and Project Supervisor, Dallas, TX Mr. Estrada is Chairman of Estrada Hinojosa & Company, Inc. He is an attorney at law and has extensive experience in the areas of tax exempt securities and investment banking. Colleagues in the industry have recognized Mr. Estrada’s


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stature in the business by electing him to the Board of Directors of the Municipal Securities Rulemaking Board (“MSRB”), the national regulatory organization for the municipal bond industry. Mr. Estrada served as Chairman of the MSRB during 1999-2000. He is also a past Chairman of the Municipal Advisory Council (“MAC”) of Texas. From 1990-1993 Mr. Estrada served on the Board of Directors for the Student Loan Marketing Association (“Sallie Mae”) in Washington, D.C., a $45 billion corporation, including service on the Board's Executive Committee. Hispanic Business magazine has twice named Bob Estrada among the 100 most influential Hispanics in America. Mr. Estrada served as a board member of the Federal Reserve Bank of Dallas from 2004 to 2010. He currently serves as a member on the District Committee (District 6) of FINRA. Mr. Estrada received his Bachelor of Science degree and his Doctor of Jurisprudence degree from the University of Texas at Austin. He is a former member of the Board of Regents for the University of Texas System. Mr. Estrada is an active member of the Texas Bar Association and is also registered with the MSRB as a Principal. ADRIAN GALVAN, Quantitative Analysis, Dallas, TX Adrian Galvan serves Estrada Hinojosa as Senior Quantitative Analyst. He has personally been involved in modeling all types of debt structures, including housing transactions, current and advance refundings, defeasance analysis, and new money offerings for airports, cities, counties, school districts, special districts, and utility systems. Mr. Galvan is a graduate of The Wharton School of the University of Pennsylvania where he received a B.S. in Economics. As Senior Quantitative Analyst, Mr. Galvan is involved in the structuring of all the firm’s transactions. PAUL JACK, Executive Vice President, Resource Banker, Austin, TX Paul Jack is an Executive Vice President with Estrada Hinojosa. Mr. Jack has over 14 years of experience in the structuring and issuance of debt obligations for political entities in Texas and across the country. While serving in various capacities either as financial advisor or underwriter, Mr. Jack has managed or supported the bond issuance process for over $11 billion in debt obligations. Prior to Estrada Hinojosa, Mr. Jack worked for JPMorgan, Public Financial Management, and Citigroup. Mr. Jack’s public finance experience includes a variety of municipal projects including:

State revolving funds Water and wastewater systems Public power General city infrastructure Convention centers Stadiums and arenas

Airports Toll roads Hospitals School districts Universities Economic development projects

Mr. Jack has a Bachelor of Business Administration from the University of Texas at Austin and a Master of Public Affairs from the University of Texas’ LBJ School of Public Affairs. Prior to his public finance career, Mr. Jack also served as an officer in the United States Navy. CRISTINA ZEINALI, Analysis Support, Miami, FL Cristina Zeinali recently joined Estrada Hinojosa’s Florida office during the firm’s expansion of its Florida Office. She assists Ms. Abadin with quantitative and research support along with preparation of financial projections, offering documents and proposal responses. She has provided support on transactions for Greater Orlando Aviation Authority, City of West Palm Beach, Miami-Dade County, City of Miami Beach, City of Orlando, Village of Key Biscayne, and the City of North Bay Village. Ms. Zeinali is a graduate of Florida International University where she earned a Bachelor’s degree in Business Administration.


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Sales/Trading and Underwriters, Dallas, TX Estrada Hinojosa’s proposed financing team for the City of North Miami Beach will include the Firm’s highly experienced underwriting desk. The Firm’s financial advisor clients have benefited tremendously from having an underwriting desk that can provide the most up-to-the-minute market information. The Desk has been essential in providing input on the strengths, risks, structure and timing of bond transactions.

THOMAS B. NOLAN III, Senior Managing Director, Underwriting, Sales & Trading Mr. Nolan, who serves as a Managing Director, has over 30 years of securities industry experience, with a background in trading and underwriting, and a primary focus in the institutional sales area. Prior to joining Estrada Hinojosa, Mr. Nolan was a Managing Director at SAMCO Capital Markets and a Senior Vice President in institutional sales with Dain Rauscher, both in Dallas. His investment banking career began with Moody’s Investors Service in 1978 in New York City, and he was employed by Dillon Read & Co. in New York City prior to moving to Dallas. His experience in underwriting exceeds over $30 billon dollars in par amount. Mr. Nolan holds a Bachelor of Science degree in Business Management from Cornell University. He is a Registered Representative of FINRA and is a Registered Principal with the MSRB. Mr. Nolan currently serves as the Chairman of the Board of Directors of the Municipal Advisory Council of Texas. ROSS A. MORING, Senior Vice President, Underwriting, Sales & Trading Mr. Moring has been a participant in the municipal market for more than 30 years. He has held the position of Manager of Underwriting, Trading and Sales for both national wire houses and dealer banks. His responsibilities have included managing large national negotiated and competitive underwritings and the acquisition and hedging of a wide variety of trading positions. Mr. Moring received a B.S.B.A. Degree from the University of Arkansas. He was elected to serve a term on the Board of Directors of the Municipal Advisory Council of Texas and held the Office of Chairman during his last year. He is a Registered Representative of FINRA, the MSRB, and the State of Texas. As Head Underwriter for the firm, Mr. Moring is involved in all of the firm's transactions, both financial advisory and underwriting. Mr. Moring has assisted in the pricing, marketing, and selling of bond issues in which Estrada Hinojosa served as a managing underwriter. VIRGIL J. WIESNER, Senior Vice President, Underwriting, Sales & Trading Mr. Wiesner has over 30 years of securities industry experience, focusing on institutional sales of fixed income products to banking, mutual funds and broker/dealer organizations. Mr. Wiesner has also held positions on the underwriting and trading desks of Texas institutions. Before joining Estrada Hinojosa, Mr. Wiesner was a senior officer and head of Underwriting and Sales/Trading for a regional broker/dealer. Prior to beginning his career in the securities industry in 1974, Mr. Wiesner owned and managed his own businesses in Lincoln and Omaha, Nebraska. Mr. Wiesner holds an A.B. degree from Creighton University in Omaha, Nebraska and has taken M.B.A. studies at the University of Nebraska at Omaha. Mr. Wiesner is a Registered Representative of FINRA and currently holds securities licenses with the New York Stock Exchange and the State of Texas.

ESTRADA HINOJOSA & COMPANY, INC.- Sales Representatives for all Bond Issues Institutional Trader Underwriter Mr. Thomas Nolan III, Managing Director Mr. Ross Moring, Senior Vice President-Head Underwriter Mr. Virgil Wiesner, Senior Vice President


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Case Studies Below please find case studies demonstrating Estrada Hinojosa’s proposed personnel’s experience within the last 36 months on similar financings contemplated by the City. City of Sweetwater, FL- Estrada Hinojosa & Co. had the pleasure of working with the City on refinancing its

$850,000 Land Acquisition Revenue Refunding Bonds, Series 2009 by issuing $840,265 Land Acquisition Revenue Refunding Bonds, Series 2011, which closed in December 2011. Ms. Abadin identified this opportunity while surveying the City’s finances. The existing debt service included an interest rate of 4.96% and a large balloon payment in 2019. After exploring several debt structures, the most advantageous option extended the loan four more years, eliminated the large balloon payment,

decreased the interest rate to 2.41% and all the while created $93,257 in Net Present Value Savings for the City. Below please find a table comparing the existing debt service with the proposed debt service. Contact Person: Anny Chez, Finance Director City of Sweetwater, FL 500 SW 109th Avenue Sweetwater, FL 33174 (305) 485-4533 City of North Bay Village, FL- Ms. Abadin serves as Financial Advisor to the City of North Bay Village. In 2010, in

spite of its 50% ad-valorem revenue reduction over the past two years, she was able to obtain for the City a new money financing of $2,160,000 General Obligation Note, Series 2010 with a TIC of 3.8%, and a $6,325,000 General Obligation Refunding Note, Series 2010 with a TIC of 3.51%. With the second refunding she was able to obtain a savings of over $900,000 for the City.

Contact Person: Gerard Pirri, Finance Director City of North Bay Village, FL 1700 Kennedy Causeway North Bay Village, FL 33141 (305) 756-7171 Village of Key Biscayne, FL- Ms. Abadin serves the Village of Key Biscayne as Financial Advisor. During 2011,

Ms. Abadin surveyed the Village’s Debt and was able to refinance several of the Village's outstanding loans. She identified 5 refunding opportunities that ultimately resulted in more than $1.9 million in Net Present Value Savings for the Village. She assisted with the new money financing and refinancing of the Village’s Police Vehicles. Ms. Abadin was able to obtain $321,680.85 for new money financing

and $137,242.74 for refinancing at interest rate of 2.00%. In addition, she worked with Finance Director on the Village's credit ratings which resulted in Moody’s Investors Service upgrading the Long Term Issuer Rating from Aa2 to Aa1 and the Standard & Poor’s rating increased from AA- to AA.. Contact Person: Beatrice Galeano, Finance Director Village of Key Biscayne, FL 88 W. McIntyre Street Key Biscayne, FL 33149 (305) 756-7171 Town of Miami Lakes, FL- Ms. Abadin assisted the Town with the financing of a new Government Center in issuing

$7.330 million Special Obligation Bonds, Federally Taxable (Government Center Project), (Build America Bonds- Direct Payment), Series 2010. Ms. Abadin served the Town as Financial Advisor


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and worked diligently for the Town of Miami Lakes since they were a first time issuer and an unknown credit in the marketplace. However, despite being a first time issuer, Estrada Hinojosa was able to obtain ratings of AA and AA- from Fitch and Moody’s for the Town. The Town of Miami Lakes issued nearly $7.3 million in Build America Bonds to finance development of a new Government Center. The financing was successful in allowing tax payers to pay less for purchasing a new building than the cost of continuing to rent a government facility. Contact Person: Alex Rey, Town Manager Town of Miami Lakes, FL 15150 NW 79th Court Miami Lakes, FL 33016 (305) 364-6100 City of West Palm Beach- Estrada Hinojosa serves the City as Underwriter. To briefly mention, In February 2010,

Estrada Hinojosa identified a savings opportunity and served as sole-senior underwriter on the City of West Palm Beach, Florida’s $15,140,000 Utility System Revenue Refunding Bonds, Series 2010. Ms. Lourdes Abadin identified this refunding opportunity that saved the City over $940,000. Recently, in late September 2011, the Firm analyzed the City’s Utility debt portfolio and provided an analysis of their outstanding debt and any proposed issuances. Ms. Abadin and the experienced

quantitative team at Estrada Hinojosa work diligently to provide the most advantageous financings for the City keeping in mind prior and future projects and other factors that may affect the City’s finances. In analyzing their debt, budget and prior projects, Ms. Abadin can offer solutions to the City, such as how to fund future contemplated projects and how to structure those in a way that is best suited for the City. Contact Person: Kimberly Mitchell, City Commissioner City of West Palm Beach 401 Clematis Street West Palm Beach, FL 33401 (561) 822-1390


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Estrada Hinojosa’s Experience in Florida- Estrada Hinojosa enhanced its commitment to issuers in Florida by establishing an office in Miami, Florida managed by Ms. Lourdes Reyes Abadin, an investment banker with 22 years of Florida public finance experience. This commitment has resulted in the firm participating in 149 Florida financings totaling $20.23 billion in par value. Estrada Hinojosa is very selective with its Financial Advisor clients, since at Estrada Hinojosa we view the Financial Advisor role to be an extension of the Finance Department’s staff. Although Ms. Abadin’s Financial Advisor experience includes clients throughout the State of Florida, her current Financial Advisor commitments are focused within Miami-Dade County. It would be an honor to also assist the City of North Miami Beach with its financial endeavors. Estrada Hinojosa has assembled a team of professionals with pride and commitment to high standards of service, experience structuring, pricing, and marketing Florida credits, as well as a superb knowledge of Florida rules, statutes, procedures, and debt practices. The Financing Team will be led by Ms. Lourdes Reyes Abadin, and our registered representatives are seasoned bankers who consistently add value to our clients. Below please find a table listing Estrada Hinojosa’s Florida clients.

Additional Client References Estrada Hinojosa believes that strong recommendations from our clients are the most accurate indications of our firm’s level of service and expertise. The following are selected client references that will be helpful in assessing our ability to serve the City in addition to those provided in the Reference Form attached herein.

ESTRADA HINOJOSA FLORIDA CLIENTS Alachua County

City of Cape Coral City of Miami Beach

Town of Miami Lakes (Financial Advisor) City of North Bay Village (Financial Advisor)

City of Orlando City of West Palm Beach

Florida Municipal Power Agency Greater Orlando Aviation Authority

Miami-Dade County Miami-Dade County Seaport

Miami-Dade County Water & Sewer Department Miami-Dade County Educational Facilities Authority

Miami-Dade County, Miami International Airport Miami-Dade County Industrial Development Authority

Miami Sports & Exhibition Authority Miami-Dade Expressway Authority

Orlando Utilities Commission School Board of Miami-Dade County

South Broward Hospital District South Florida Water Management District

Village of Key Biscayne (Financial Advisor)

SELECTED CLIENT REFERENCES

Mr. Ben Gorzell Director of Finance

City of San Antonio, Texas P.O. Box 839966

San Antonio, TX 78283 (210) 207-8620

[email protected]

Ms. Lidia Monzon-Aguirre Director, Division of Bond

Administration Miami-Dade County, Florida

111 N.W. 1st Street, Suite 2550 Miami, FL 33128

305-375-5147 [email protected]

Dr. Lew Blackburn

President of the Board Dallas Independent School

District 3700 Ross Avenue

Dallas, TX 75204-5491 (214) 943-2244

[email protected]


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F. Long-term Strategic Financial Planning Experience Provide a description of your proposed personnel's relevant experience over the last three years. Include three case studies, if available, that illustrate your experience with relevant services where the proposed personnel have served as financial advisor. Village of Key Biscayne, Florida

Presently, Estrada Hinojosa serves the Village of Key Biscayne as Financial Advisor. For several years Ms. Abadin has assisted the Village with its Water, Sewer and Water Reclamation Projects with obtaining federal, state and local grants, as well as private gap financings to reduce the pressures on the cash flows. The role of Financial Advisor included mapping out the funding of the various capital

projects, timing their construction draw downs and timing of reimbursements, processing and monitoring the various grant reimbursements and project close-outs. The Water, Sewer, and Water Reclamation Projects came to a close during the Summer of 2011. Dallas Area Rapid Transit

Estrada Hinojosa has served at the financial advisor to Dallas Area Rapit Transit since 2001, serving as sole FA since 2007. During this time we have assisted them with the completion of eight transactions for a total par value of over $3.8 billion. Over the last four years we have worked extensively with DART to help them finance the development and construction of one of the largest

light rail systems in the country. In 2007, Estrada Hinojosa assisted DART with the issuance of their $770.3 million Senior Lien Sales Tax Revenue Refunding Bonds, Series 2007. The proceeds of the Bonds were used to “fix-out” a portion of DART’s Senior Subordinate Lien Commercial Paper Notes, as well as refund portions of their outstanding Series 2001 and 2002 Bonds for debt service savings. In late 2007, DART revised its construction cost estimates on its planned Orange Line and Blue Line Extension light rail lines from a 1% design level to a 10% design level. Revised estimates placed the DART projects approximately $900 million over budget. Although we calculated that DART had the financial capacity at the time based on revenue and expense projections and a minimum 2.0X coverage to support approximately $5 billion in debt, they only had voter authorization to issue $2.9 billion in voted authorization for sales tax supported debt with a term over five years. Additionally, because DART could afford to do less in pay-as-you-go projects, the increase would cause DART to potentially delay several projects. During the winter of 2008, we worked extensively with DART to develop a new 20-year financial plan that would work given the revised construction cost estimates. Through value engineering and other efforts, DART was able to reduce the projected increase to about $350 million. In June 2008, we assisted DART in issuing its $731.4 million Senior Lien Sales Tax Revenue Bonds, Series 2008. Unlike previous bond sales, the bonds were sold without insurance. This was partly due to market conditions at the time and partly due to the fact that DART was able to get a rating upgrade from S&P from AA+ to AAA. Additionally, the bonds were sold with terms out to 40 years. Also of note is the fact that we broke from DART tradition and issued bonds to be used to directly fund projects in addition to fixing-out commercial paper.


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In the summer of 2009, we served as the sole financial advisor for the issuance of $1 billion Sales Tax Revenue Bonds, Series 2009A & Taxable Series 2009B (BABs). The issue was divided between a $170,385,000 Series A tax-exempt series, and a $829,615,000 taxable Build America Bonds series, one of the largest Build America Bond issues in the Southwest. . The financing was structured to provide the lowest possible cost to DART, beginning with the taxable/tax exempt structure. DART sold the Bonds together in order to make use of the “breakeven” point on the yield curve. Build America Bonds produce savings past a certain date on yield curve due to various factors such as credit and market conditions. DART sold serial tax-exempt bonds before the breakeven date, which for this issue was 2022, with a call in 2019. The Series B Build America Bonds were backloaded, with a twelve year term BAB maturing in 2034, and a ten year BAB maturing in 2044, bringing the total structure out 35 years. This remains one of the longest issuances of BABs to date. The 2034 Bonds have a standard 10 year call in 2019. Due to the 2044 term bond’s extended maturity, this term was sold with a Make-Whole redemption provision. As we entered 2010, DART’s sales tax continued to fall as a result of the recent recession. We worked extensively with them to revise their financial projects and update their 20-year financial plan in an effort to find a solution to finance light rail projects under development given the lower sales tax revenues. We also evaluated other alternatives to their commercial paper program given the increase in liquidity costs. In the fall of 2010, Estrada Hinojosa assisted DART with the issuance of their $95,235,000 Senior Lien Sales Tax Revenue Refunding Bonds, Series 2010A and their $729,390,000 Senior Lien Sales Tax Revenue Refunding Bonds, Taxable Series 2010A (Build America Bonds). Both series of bonds were sold without insurance and were rated AA+ / Aa2 from S&P and Moody’s respectively. The tax-exempt 2010A refunding bonds were issued for debt service savings and moderate restructuring. The Series 2010A bonds achieved NPV savings of $7.2 million or 7.0%. The Series 2010A also accomplished a moderate restructuring which achieved significant cash flow relief in FY 2012 and 2013. Although larger restructurings were analyzed because of a drop in sales tax revenue from the recession, the structure and size of this refunding offered a good balance of positive NPV savings and cash flow relief while at the same time preserving options for later. The bonds were sold with coupons ranging from 2.0 to 5.0%. The escrow was funded with open market securities. The Series 2010B bonds were sold to fund the continued expansion of DART’s light rail system. DART maintains a long range capital improvement plan. The plan called for the issuance of approximately $400 million of debt to fund capital requirements in the near term. After extensive analysis by DART staff and Estrada Hinojosa, DART decided to up-size the transaction to take advantage of the Build America Bond program and extremely low absolute rates. The Series 2010B bonds were structured as two term bonds with amortization from 2037 through 2048. The Series 2010B bonds were sold at spreads to the 30UST of +120 and +130 resulting in an all-in TIC of 3.27% after consideration of the 35% federal subsidy on the bonds. After an analysis of various call features, the Series 2010B bonds were sold with a make-whole call to take full advantage of the BABs pricing.

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

2009

2011

2013

2015

2017

2019

2021

2023

2025

2027

2029

2031

2033

2035

2037

2039

2041

2043

2045

Callable Principal

2009A T/E

Interest

Callable Principal

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Make-Whole Principal

2009B BABsCallable Term 2034 MW Term 2044

Interest

Net

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$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

2009

2011

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2015

2017

2019

2021

2023

2025

2027

2029

2031

2033

2035

2037

2039

2041

2043

2045

Callable Principal

2009A T/E

Interest

Callable Principal

Interest

Make-Whole Principal

2009B BABsCallable Term 2034 MW Term 2044

Interest

Net

Deb

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City of San Antonio, TX We have served as financial advisor to the City of San Antonio since 1992. We have assisted the City with all its financings during this period, which includes 131 transactions totaling $15.3 billion in par. Among them: the successful completion of the Alamo Dome, expansion of the Convention Center, construction of the Grand Hyatt Hotel, and the City’s first issuance of Build America Bonds.

Estrada Hinojosa advised the City of San Antonio on its issuance of $156,255,000 General Improvement Refunding Bonds, Series 2010 for savings. This issue refunded portions of 18 outstanding bond and certificate obligations of the City. This comprehensive refunding targeted every issue that the City could refund for savings, including currently refundable issues, such as the City’s 1998, 1998A, 1999 C/Os, and also advance refundable issues from their Series 2006 Bonds and Series 2007 C/Os. Targeting these high coupon bonds generated savings and long-term debt restructuring capabilities that the City needed. The transaction was four-handed, with a single book runner and three co-managers. The City has strong ratings, holding an Aa1 from Moody’s, an AAA from Standard and Poor’s, and an AA+ from Fitch. We, thus, advised that bond insurance was unnecessary due to the underlying ratings being stronger than available insurance. The structure of this fixed-rate issue was modeled to match the Bonds being taken out, leading to an escrow matching the maturities being taken out. A bifurcated coupon was used in the final maturity (2023) in order to appeal to a large buyer. The final maturity is 02/01/2023, so a standard 10-year call was placed on the Bonds for 2/1/2020.

Estrada Hinojosa served as Financial Advisor to the City of San Antonio for their planned convention center hotel financing in 2005 ($129.9 million Contract Revenue Empowerment Zone Bonds and $78.2 million Taxable Contract Revenue Bonds). We interfaced with the City and their underwriter in developing the preferred plan of finance. We analyzed numerous financial structures for both public and private ownership models and different levels of required credit enhancement. Ultimately, the City decided on a private ownership model financed through the use of tax-exempt Empowerment Zone Bonds, taxable project revenue debt, and developer equity. The financing was additionally secured by certain state and local tax revenues made available as credit enhancement. After the preferred plan of finance was developed, Estrada Hinojosa assisted the City in writing the hotel developer request for proposal and evaluating the proposal responses for the proposed financial structure, credit profile, risk mitigation and financial returns to the City. Our analysis of the developer proposals included but was not limited to the review of the project cost and timing, level of developer equity contribution, project debt load, coverage ratio analysis, proposed revenue sharing agreement, and use of available credit enhancement. We advised the pricing of $208,145,000 of Series 2005A tax-exempt Empowerment Zone Bonds and Taxable Series 2005B issued by the City of San Antonio, Texas Convention Center Hotel Finance Corporation. Bond proceeds were issued to finance a portion of the costs to design, develop, construct, equip and furnish a full-service 1,000-room Hyatt hotel and up to 1,000 parking spaces. Proceeds from the sale were likewise used to pay certain financing costs and fund certain reserves. In addition to bond proceeds, the remainder of the costs of the project was financed with $77,331,200 of preferred equity from Marathon Asset Management, Faulkner USA, and the Hyatt Corporation.


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Dallas Convention Center Hotel $479.82 Million Hotel Revenue Bonds,

Series 2009A, B & C

G. Tax-Exempt New Money and Derivative Product Experience Describe your proposed personnel's relevant experience over the last three years. Include three case studies, if available, that illustrate your experience with relevant transactions where the proposed personnel have served as financial advisor. Derivative Product Experience In our capacity as financial advisor to very sophisticated issuers, such as the City Public Service Board of San Antonio, the City of Houston, and the City of Dallas, Estrada Hinojosa possesses the ability to receive and analyze derivative products. Our clients often receive proposals recommending the use of such products. With our knowledge of the products entering the market, we are able to advise our clients on the best financing methods available. Dallas Convention Center $479,821,197 Dallas Convention Center Hotel Development Corporation Hotel Revenue Bonds, Series 2009A, 2009B, and 2009C Estrada Hinojosa acted as Co-Financial Advisor for The City of Dallas Convention Center Hotel. The purpose of the issuance is to acquire approximately six acres of land and finance costs for design, construction, equipment, furnishing, etc. Proceeds needed to fund 34 months of net capitalized interest, debt reserve fund, fund an initial deposit and pay certain costs of issuance. Our firm assisted in the following roles crucial to this transaction:

Analyzed various public and private ownership structures to assess the optimal ownership structure for the City - performed various stress scenarios to weigh the City’ potential risk/reward profile

Selection of the underwriting team, hotel developer, and hotel operator, negotiations with the various firms and evaluation of the best candidates

Developing a Plan of Finance (an in-depth financial model to structure the proposed bond offering) which included determining the most cost-efficient mixture and structure of tax-exempt current interest bonds, tax-exempt capital appreciation bonds, Build America Bonds (the first for a hotel project) and pure taxable bonds

Worked with the underwriters to develop a comprehensive pre-pricing marketing strategy to maximize investor interest for the City’s hotel transaction which proved critical to generating investor “traction”

The transaction successfully came to market with three separate bond offerings:

$74,411,197 Tax-Exempt Series 2009A (current interest and capital appreciation bonds) $388,175,000 Build America Bonds Series 2009B $17,235,000 Taxable Series 2009C


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H. Taxable Financing Experience Describe your proposed personnel's relevant experience over the last three years. Include three case studies, if available, that illustrate your experience with relevant transactions where the proposed personnel have served as financial advisor. City of Laredo, Texas

Estrada Hinojosa advised the City of Laredo on its issuance of $51,420,000 Combination Tax & Waterworks and Sewer System Certificates of Obligation, Series 2009C & Taxable BABs Series 2009D, issued together to fund water and sewer system improvements. As the City sells its Bonds under the same credit, the Bonds were rated AA- from S&P and Fitch, and A1 from Moody’s. Because

of this, we advised the purchase of bond insurance from Assured Guaranty to improve the marketability of the Bonds, raising the ratings to Aa3 / AAA (Moody’s/S&P). The transaction was three-handed, with a single bookrunning manager and two co-managers. The same syndicate was used for both the taxable and tax-exempt tranches. The taxable BABs were sold as a single term to mature in 2039, with a sinking fund beginning in 2022. The tax-exempt Bonds were sold as serial bonds with a final maturity in 2021, with level debt service after 2011. The first maturity was slightly larger than the 2011 – 2013 maturities in order to level out existing debt service. Both series were fixed-rate and had a standard 10-year call. City of San Antonio, Texas

Estrada Hinojosa advised the San Antonio Water System (“SAWS”) on its issuance of $115,000,000 Water System Revenue Bonds, Series 2009A & Taxable BABs, Series 2009B. These Bonds were sold together to fund water system improvements. San Antonio Water System, a utility governed by a Board of Trustees consisting of the Mayor of San Antonio and six City Council appointed trustees, sells bonds under its own credit, separate from the City of San Antonio.

The City’s water system has strong ratings, holding an Aa2 from Moody’s, and AA ratings from S&P and Fitch. Thus, we advised SAWS the double-A category ratings made the purchase of bond insurance unnecessary. Moreover, the Bonds were sold as Senior Lien obligations, further strengthening their credit. The syndicate consisted of five members, with a single bookrunning manager and four co-managers. The same syndicate was used for both the taxable and tax-exempt issues. The taxable BABs were sold as fixed-rate serial bonds for the 2015 – 2024 maturities, with a five-year term bond maturing in 2029 and a 10-year term bond maturing in 2039. The tax-exempt Bonds were sold as serial bonds, with five maturities from 2010 – 2014. The Bonds were structured together to provide level debt service. A standard 10-year call was used on the serial bonds in the taxable BAB portion. The 2029 and 2039 term bonds are subject to a make-whole redemption price. Town of Miami Lakes, FL- Ms. Abadin assisted the Town with the financing of a new Government Center in issuing

$7.330 million Special Obligation Bonds, Federally Taxable (Government Center Project), (Build America Bonds- Direct Payment), Series 2010. Ms. Abadin served the Town as Financial Advisor and worked diligently for the Town of Miami Lakes since they were a first time issuer and an unknown credit in the marketplace. However, despite being a first time issuer, Estrada Hinojosa was able to

obtain ratings of AA and AA- from Fitch and Moody’s for the Town. The Town of Miami Lakes issued nearly $7.3 million in Build America Bonds to finance development of a new Government Center. The financing was successful in allowing tax payers to pay less for purchasing a new building than the cost of continuing to rent a government facility.


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I. Advance and Current Refunding Experience Provide a description of your proposed personnel's relevant experience over the last three years. Include three case studies, if available, that illustrate your experience with relevant services where the proposed personnel have served as financial advisor. City of Laredo, Texas

Estrada Hinojosa advised the City of Laredo, Texas on its issuance of $27,150,000 General Obligation Refunding Bonds, Series 2009 for savings. This issue refunded portions of five outstanding bond issues the City’s 1998A and 1998B Certificates of Obligation, the 1999 Parking Certificates of Obligation, the 1999 Wastewater & Sewer System Certificates of Obligation, and their 1998 Refunding Bonds.

The transaction was handled three handed, with a single bookrunning manager and two co-managers. The City has split ratings, holding AA- ratings from Standard and Poor’s and Fitch, and an A1 rating from Moody’s. Because of this, we advised the purchase of bond insurance from Assured Guaranty to improve the marketability of the Bonds, raising the ratings to Aa3 / AAA. The fixed-rate structure of the issue was modeled to match the bonds being taken out, leading to a frontloaded escrow, along with bifurcated coupons in 2012, 2013, and 2014 to take advantage of the needs of differing buyers. The final maturity is 8/15/2018, so no call was placed on the Bonds. Summary of Experience with Advance and Current Refundings As described in the case studies under Section E., the Firm works diligently to review the outstanding debt of its financial advisor clients to ensure optimal structures. This can be seen in the case studies provided on pages 8 and 9 for the City of Sweetwater, City of North Bay Village and the Village of Key Biscayne. For the City of Sweetwater, Ms. Abadin analyzed their outstanding debt and found an opportunity for the City to realize savings by refunding their $850,000 Land Acquisition Revenue Refunding Bonds, Series 2009. Several alternatives were explored in order to achieve the most advantageous structure for the City. In the end, Ms. Abadin was able to assist the City in achieving Net Present Value Savings of over $93,000. In the case of the Village of Key Biscayne, Ms. Abadin identified several opportunities the Village could take advantage of to realize savings as well. After completing a debt profile for the Village, she encountered 5 refunding opportunities that ultimately resulted in more than $1.9 million in Net Present Value Savings for the Village. Below is a list of those refunding transactions.

• $4,450,000 Stormwater Utility Revenue Refunding Bonds, Series 2011 • $6,890,000 Capital Improvement Revenue Refunding Bonds, Series 2011A • $7,130,000 Capital Improvement Revenue Refunding Bonds, Series 2011B • $1,865,000 Capital Improvement and Land Acquisition Revenue Refunding Bonds, Series 2011 • $2,808,952 Transportation Tax Revenue Refunding Bonds, Series 2011

The City of North Bay Village, like many municipalities in the State of Florida has experienced a large revenue reduction over the past two years, with a 50% ad-valorem reduction. In spite of these troubling figures, Ms. Abadin was able to obtain a $6,325,000 General Obligation Refunding Note, Series 2010 with a TIC of 3.51%. With this refunding she was able to obtain a savings of over $900,000 for the City. For more details regarding these case studies, please see the response to Section E. on pages 8 and 9.


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J. Market and Pricing Information Describe your firm’s knowledge, experience and resources in tracking and monitoring the tax-exempt and taxable bond markets, including fixed rate, variable rate, swaps and other derivative products, and the government securities market. Include a discussion of your firm's participation in underwriting tax-exempt and taxable bonds, acting as a principal in swap transactions, and providing investment services. Also discuss your process for ensuring that the City of North Miami Beach receives the best price for any bonds, financings involving swaps and other derivative products, and any escrow securities as part of any refunding. Include a discussion of how you evaluate the success of any pricing. Analytical Capabilities Estrada Hinojosa has made a significant investment in analytical tools and professionals. Estrada Hinojosa has substantial technological and quantitative resources that we bring to bear in support of our financial advisory clients. An important resource and capability that distinguishes Estrada Hinojosa is its Underwriting Desk that has proven to be essential in adding value to our Financial Advisor clients. We have worked with numerous financial advisor clients on multi-year capital improvement programs; debt structuring; complex project finance transactions; tax increment financing (TIF); P3 initiatives; and a host of other modeling exercises. DBC Finance, our analytical software, is generally recognized as the most reliable and versatile on the market. We possess considerable technical capabilities for structuring and calculating bond sales, modeling interest rate swaps, and monitoring refunding opportunities. DBC Finance consists of four modules: Debt/Size, Monitor, Refund, and Project Finance. The DBC Finance program provides the following capabilities:

• Provides cash flow models with the flexibility to project tax rate analysis and user charge requirements, bond capabilities based on debt service installments, revenues, expenses, growth or use factors, interest earnings and construction fund drawdown schedules.

• Structures bond payment schedules with level principal, level debt service or level total requirements, on a semi-annual or annual basis.

• Calculates an internal rate of return or “True Interest Cost” and provides present value schedules

based on such yields for use in evaluating bids.

• Performs a comprehensive evaluation of refunding selected bonds. The focus of the program is to refund tax-exempt debt within the limitations that are set forth by the U.S. Treasury Department. It also evaluates multiple refunding and new money transactions, furnishing complete documentation of complex transfers that take place.

• Identifies those bonds which, based on preliminary analysis, would appear to meet the user's

minimum savings target if they were to be refunded. The system provides the user with a prioritized set of savings reports that would enable us to proceed with more in-depth analysis. In addition, it evaluates refunding candidates from entire issues or any combination of issues and maturities.

• Structures bond issues with overlapping maturities and multiple bond types.

We also supplement DBC Finance with Excel spreadsheets and extensive custom-built models. These models are often developed to determine financial feasibility and the ability of the given cash flows to support the required debt


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Underwriting Activity

issuance but can take on a host of other forms depending upon the situation. Examples include pro forma revenue projections from various fees and taxes, operating expense analysis, ascending debt modeling, present value analysis, project valuation, and many others. Outputs of the models vary from model to model depending upon client needs. Our Financial Advisory team will work with the City on an ongoing basis to review and update as necessary its goals and objectives with respect to its various debt programs. Based on these established goals and objectives, our analytical team will develop a work plan for the ongoing monitoring and optimization of the Debt Portfolios. The goals and objectives typically include the following:

• Savings targets for advance refundings • Target mix for variable rate debt versus fixed rate debt and synthetic fixed/variable rate debt • Asset/Liability matching • Call Option value analysis related to the use of callable versus non-callable debt • Policies related to the use of derivative products

In addition we view it as part of our core service to be available to monitor current market opportunities as it relates to the developing of new financial tools and/or financing strategies given changing market/legal/tax conditions. The strength of our analytical team allows us to review unsolicited financing proposals and prepare for the City a thorough analytical review, with special focus on:

• Legality; • Appropriateness; • Benefits; • Costs; and • Risks

Sales, Trading, and Underwriting Expertise Estrada Hinojosa’s underwriting desk is located at our Headquarters Office in Dallas, Texas. Since our Desk is in the market on a daily basis, our staff has 24-hour, up-to-the-minute access to sources central to a bond pricing. The firm subscribes to the Bloomberg news service, as well as other Internet services and industry publications specific to investment banking. The professionals who serve on our underwriting desk have over 100 years of collective experience. They are extremely knowledgeable regarding the different types of bonds, structuring considerations such as call features, credit enhancement, maturity patterns, serial or term bonds, and discount or premium securities to enhance investor interest. In addition, they have established customer bases in the institutional sector; which is the major purchaser of bonds. Our underwriting desk has added value in financial advisor transactions by assessing the strength of the municipal markets and providing input on the structure and timing of negotiated sales. Our trading desk is aware of other issuers in the market at the same time. Some of our clients have benefited by delaying their sale dates when the markets are experiencing a downturn. In this regard, our underwriting desk also provides input on the strengths and risks inherent in both negotiated and competitive sales. The underwriting desk has also provided knowledge in the selection of underwriters for negotiated sales. Our desk has long-established relationships

Cities, 33%

Airport, 5%

Education, 30%

Counties, 11%

Other, 21%


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throughout the country, and is extremely knowledgeable of the strength of the distribution network utilized by other firms. Marketing Approach Our marketing approach includes the following elements: A. Marketing Preparation: Following a successful bond election, and in those instances where no election is

required, we will meet with the City to re-evaluate the proposed financing program in light of current and projected market conditions. This will help foster a more receptive market for the program. Should the need arise, we will redesign the offering to more precisely fit the needs of the City, City taxpayers, and City users. Further, we will perform the following as necessary throughout the pre-financing period:

Assist bond counsel in the preparation of all legal documents and proceedings regarding the bond

sale, whether the bond sale is to be placed with a state or federal agency or simply through a public or negotiated offering.

Work with the City's staff, taxpayers, and others to obtain all relevant financial, economic,

demographic and descriptive information to prepare the Official Statement or offering document. Print and distribute the Official Statement or offering document to potential investors. Assist the City in evaluating and selecting a Paying Agent/Registrar. Inform the bond rating services and bond insurance companies of upcoming bond sales and take

responsibility for distributing all information thereto. At the earliest possible opportunity, reasonably complete documents will be forwarded to S&P, Moody's, and/or Fitch, along with an additional written presentation intended to expand upon the essential information contained in a normal preliminary Official Statement. In our experience, as conditions allow, we prefer to provide the rating agencies with as much information as possible because uncertainty among the rating agencies translates into foregone opportunities to improve the issuer's debt rating.

Meet with the City's staff to discuss the bond rating process and assist in the preparation for its bond

rating meeting as they become necessary in order to obtain a beneficial bond rating. Accompany City officials to New York City, when needed, for bond rating, insurance companies, and

investor meetings, and coordinate the itineraries of all, if applicable. If debt ratings are not required, we will coordinate, when requested, any meetings with state agency

officials to present the project or projects and their economic need and viability. Encourage competitive responses from the national capital markets by stimulating an interest in the

City's bond sale among prospective purchasers primarily through advertisement and personal interaction.

Negotiated Issues Only: We solicit proposals from underwriters to serve as principal marketers of

pending issues to be sold via negotiation. Once selected by the City, we then continue to work closely with the selected firms up until and including the final preparation of the preliminary Official Statement and the signing of a bond purchase agreement with said underwriters. In the midst of the process undertaken by the underwriters to establish a final scale of reoffering yields, we monitor each


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successive scale and the resulting subscription levels of each to affirm that the final scale matches or outperforms the broader markets for similar issues offered on that day.

Provide the City with current tax-exempt market advice and, based upon market conditions,

recommend the date and hour of sale to achieve the lowest interest cost. B. Marketing Coordination: At the time of the financing, Estrada Hinojosa will perform the following: In conjunction with a competitive sale, assist the City in appropriately advertising the sale through the

industry's periodicals and The Bond Buyer. Additionally, we will coordinate the submission of bids from interested bidders in order to maximize lowering costs of borrowing, and then proceed to evaluate the bids received.

Prepare and present a detailed marketing report to the City on the outcome of the bond sale. The

report will include comparable tax-exempt offerings and municipal market indicators which affect interest rates.

If the bond issue is not book-entry only, assist bond counsel in the printing of the bonds and in their

distribution to the purchaser. Prior to closing, consult with the City's staff and other applicable parties to determine the cash

disbursement schedule of the project to be financed and recommend an investment plan for those bond proceeds not disbursed immediately.

Assist bond counsel in the preparation of all closing memoranda and documentation. Coordinate and supervise all closing procedures. C. Post Financing Consultation: Upon receipt of bond proceeds, assist the City's staff in the execution of an investment plan. Prepare debt service repayment schedules and corresponding tax or user rate impact projections to

assist the City officials on ongoing planning efforts. On an ongoing basis, monitor all of the City's obligations in light of municipal market conditions in

order to advise the City of any refinancing opportunities or procedures which could benefit the City.


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K. Disciplinary Action List any and all disciplinary action, administrative proceeding, malpractice claim or other like proceeding against your firm or any of its personnel relating to your firm’s services as financial advisor current, pending or occurring in the last five (5) years. Estrada Hinojosa has not had any disciplinary action, administrative proceeding, malpractice claim or other like proceeding against the Firm or any of its personnel relating to the Firm’s services as financial advisor in the last 5 years.


23

L. Cost Proposal and Reimbursement for “Out-of-Pocket” Expenses 1. Cost Proposal Present a concise list of the scope of services and the work products that your firm proposes to provide. Given your proposed scope of services and work products, discuss your proposed fee arrangement based on each of the following alternatives:

a. Compensation on a fixed annual cost, payable monthly. b. Compensation on a time and expense basis, with a list of hourly billing rates for the proposed personnel

and any proposed increases in such rates during the term of the contract, and the types of reimbursable expenses with proposed charges.

c. Compensation on a cents-per-bond or per $1,000 of notional amount basis to be paid on a contingent basis for specific financing issues. Fees will be subject to adjustment based upon assignment, by the Finance Director, of more than one firm to a single project. Any omissions or ambiguities will be construed most favorable to the City.

Proposed Scope of Services- Estrada Hinojosa understands the services requested by the City and is well versed in providing these services to municipalities in the state of Florida and Nationally. The Firm has been providing these services since 1992, totaling 1,201 financial advisor transactions, representing more than $65.96 billion in par amount. Approach and Ability in Providing Requested Services All of our Financial Advisory clients present unique economic, financial, and political conditions within which we work to customize the Financial Advisor services we provide. Estrada Hinojosa provides its Financial Advisor clients with (1) non-transaction financial planning services and (2) transaction related services. The non-transaction financial planning services are enumerated below.

Financial Planning Services Attend any and all meetings when the subject of financing is to be discussed Advise the City on Federal or State laws and regulations affecting the municipal bond market Analyze City’s capital plan, revenue streams and credit strength Determine appropriate updates to the City’s debt management and investment policies Evaluate alternative financing sources available to the City Analyze the City’s debt portfolio for options to increase financial capacity or savings Prepare a Debt Profile for the City Review Annual Report and Bond Disclosure Supplement Make recommendations on Debt Instruments Advise City of current bond market conditions In the event, it is necessary to hold an election to authorize the Debt Instruments, Consultant will coordinate

the assembly and transmittal to Bond Counsel Assist with consultations and negotiations with various entities as part of the funding mechanism for projects Review and monitor the various agreements necessary for securing funding of projects Prepare the reimbursement request and payment from the various grants Work with Finance Director to design reports that monitor funding of projects Perform special quantitative analyses as designated by the City

Along with the Financial Planning Services, the Firm provides transaction related services which are described below in three phases.


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The Firm approaches each engagement with a similar Financial Advisor Service Plan which has the primary goal of designing and executing the financing plan that achieves the client’s financing goals at the lowest possible cost. The fundamental service plan involves three phases:

1. Evaluation and planning 2. Transaction execution 3. Post transaction monitoring

The key components of each of these phases is summarized in the following table and further illustrated in the seven-step process:

Goal SettingFinancing Alternative Identification and EvaluationRisk and Sensitivity AnalysisCredit Alternative and EvaluationCost benefit analysisFinancial Plan design

Financing document design and reviewFinancial structuringRating agency presentationsMethod of Sale recommendationsProcurement of financing firms (i.e. Underwriter’s, Insurers, Paying Agents, etc.)Governing board approvalsMarket data and Pricing

Proceed Investment advisoryRefunding monitoringLOC/Liquidity Renewal

Evaluation and Planning Transaction Execution Post Trans. Monitoring

Step Two: Develop Financing Alternatives Identify likely financing alternatives and develop financial models of each option. Determine pros, cons and economics of each financing alternative. Assess the proposed bond issue’s marketability to receive the greatest demand when offered in the market.

Step Three: Develop a Plan of Finance Develop a comprehensive plan of finance including proposed security, size and structure of the issue, the method of sale, and the resultant debt service requirements. Develop a detailed timetable to accomplish the financing.

Step One: Determine the Objectives and Identify Constraints Clearly identify the business objectives of the financing. Gain a comprehensive understanding of the economic condition, financial position, and projected revenues. Thoroughly examine and understand the client’s legal powers and constraints.

Step Four: Prepare Necessary Documents Produce an official statement that accurately describes the material aspects of the client and the proposed financing. Work closely with bond counsel and the client’s staff to complete the official statement and other required legal documents. Submit financial applications to federal or state agencies, as required.


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The following paragraphs highlight the Firm’s approach and capability to provide the service requirements. We work closely with legal counsel and the financing team to review and assess pertinent statutes and related legislative history to help assess the full scope of authority to conduct any financing. Estrada Hinojosa has excellent working relationships with all of the major law firms offering bond counsel services. Additionally, we have relationships with out-of-state entities which may allow us to more thoroughly explore any legal issues or new financing models that may arise during the term of the engagement. Whether the client ultimately chooses to do a competitive sale, a negotiated sale, or a private placement, we manage the sale process from start to finish, beginning with the preparation of a financing timetable and plan of finance. Additionally, we help our clients understand the differences between the various types of financings and will recommend an appropriate type based on our professional experience, current market conditions, and the client’s particular circumstances. An issuer has a set of powers and legal constraints that govern the types of financings that can be undertaken. We will evaluate options that appear to have promise and work closely with legal counsel to utilize the best available financing structures and methods available, with an emphasis on innovation and cost-of-funds reduction. Our understanding of the client’s objectives will ensure a cohesive effort and a comprehensive financing program. Estrada Hinojosa has excellent relationships with rating agencies, underwriters, commercial banks and bond insurers. Representative members from each of these disciplines will ultimately become part of the finance team. Estrada Hinojosa works diligently to efficiently conduct the best financial transactions. In this process, we will consider the client’s objectives, past debt structure, current financial condition, and proposed transactions

Step Seven: Render Post-Financing Services Determine the cash disbursement schedule of the project and recommend an investment plan for bond proceeds not disbursed. Assist in ongoing planning efforts with the client. Monitor the client’s obligations to identify any refinancing opportunities.

Step Six: Undertake the Bond Sale Work closely with underwriters to ensure that the financing is executed well, that the client receives market rates or better, and that the final structure meets the client’s needs. Coordinate bond marketing and presentation of detailed reports on sale outcome, including comparable financings and municipal market indicators that can affect interest rates. Work with bond counsel to ensure that appropriate legal documents are prepared and submitted on time. Draft the closing letter and coordinate the completion of the transaction.

Step Five: Prepare for the Bond Sale Determine and execute an appropriate strategy for obtaining the most favorable bond ratings possible given the economics of the client and the transaction, and the nature of the revenue pledge. Develop a strategy for securing favorable bond insurance rates and examine the economics of insured versus uninsured options. Re-evaluate the proposed financing program in light of current and projected market conditions in order to develop a receptive market. Scrutinize issuance costs to ensure that costs are required and justifiable.


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in an effort to minimize risks and maximize returns. The financing program product will include a specific written plan which details the proposed method of sale; security, sizing, and structure of the issue; and resultant supporting schedules. If applicable, we will also address the phasing of issues and the reinvestment of proceeds. Estrada Hinojosa is committed to assisting with the completion of required legal documents in full and timely disclosure. We will work closely with the staff, bond counsel and appropriate participants to ensure that the official statement accurately reflects material circumstances related to the issuer, the project and the proposed financing. We also assist in the coordination of printing and distribution of the preliminary and final official statement and other legal documents, where appropriate. Estrada Hinojosa understands the importance of complete and timely presentations to internal and external related parties and commits to assisting in the entire process, including ensuring that the issuer is prepared prior to any presentation and that appropriate presentation materials are prepared. Every successful financing ends with a closing. We will prepare the closing documents, post-transaction assessment and any other post-sale analysis requested and ensure that all parties understand their respective roles in this important event. Compensation for Financial Advisor Services Estrada Hinojosa proposes the following fee schedule for transaction related services such as debt transactions including bonds, notes, loans, capital leases and other debt obligations (taxable or tax-exempt, fixed rate or variable, new money or refunding, competitive or negotiated). Bond Size ($000) Incremental Fee per $1,000 1-50,000 $1.00 50,001 and over $0.50 Minimum Debt Transaction Fee $15,000 Maximum Debt Transaction Fee $70,000 Estrada Hinojosa proposes an annual retainer of $20,000 (payable monthly or quarterly). The retainer is intended to cover the on-going financial advisor services and the transactional evaluation and planning services outlined on page 23 and 24. Hourly Rates Although Estrada Hinojosa is providing the hourly fee schedule below, non transactional work will be handled under the retainer indicated above. Thus, no hourly rates will apply for on going financial advisor services. For other special financial advisor services, the Firm proposes the following hourly rate schedule. Experience Level Principal/Senior Bankers $195 per hour Other Professionals $150 per hour Administrative Support $75 per hour In all of our financial advisory relationships, Estrada Hinojosa seeks to maximize value for the client. Our fees are competitive in the marketplace, but we do not submit artificially low fee bids just to land the business and then assign a low priority to such client. Estrada Hinojosa works diligently for our fees, and we do not put quotas or barriers on non-billable time spent assisting the client. We are available anytime to consult with the client, whether or not a bond issue is pending.


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Our fees and expenses are contingent on the issuance of debt and payable solely from bond proceeds. Expenses are borne by the Firm until a fee statement and expense reimbursement are submitted at the bond issue closing in accordance with the contract between the City and our Firm. Our depth of resources and capital base allows Estrada Hinojosa to operate on this basis without creating ongoing costs to the City. At any time between bond issues, Estrada Hinojosa is prepared to report to the City, upon request, the hours spent on financial advisory services and the accumulated expenses being carried forward. 2. Reimbursement of “Out-of-Pocket” Expenses The City shall reimburse for “Out-of-Pocket” expenses upon proper invoice rendered with appropriate receipts attached. Such expenses include long distance telephone, postage, air express charges, fax, reproduction and related costs necessarily incurred as Financial Advisor. Such expenses will be paid from legally available funds of the City. Travel expenses related to performance of the services to the City, and approved in advance by the City, will be reimbursed in accordance with the City’s travel policy. Any costs incurred by Financial Advisor which are not specifically provided for herein shall be the expense of Financial Advisor. Estrada Hinojosa will request reimbursement of reasonable and actual out-of-pocket expenses incurred in serving the City as its financial advisor. Estrada Hinojosa proposes the following rates or a flat fee of $1,000 per transaction for expenses: Type of Expense Rate Photocopies $0.10 per page for Black and White $1.00 per page for Color Printer Facsimile $1.00 per page Long Distance Telephone At Cost Conference Calls At Cost Travel In accordance with F.S.112.061 Mileage In accordance with F.S.112.061 Postage At Cost Courier, Overnight Delivery At Cost The City shall not be responsible for the reimbursement of any costs not specifically stated in the Firm’s proposal. In addition, the City shall reserve the right to accept any part of the Proposer’s entire fee schedule and to negotiate any charges contained herein, unless otherwise qualified by the Proposer.

Tab 3


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M. Acknowledgements The Proposer must complete, sign as required, and submit the Addenda (refer to Section 1.8) and all forms from Section 6 as part of its Proposal. Estrada Hinojosa acknowledges receipt of any and all addenda submitted in connection with this Request for Proposals. The Firm has attached any Addenda Documents and all forms in Section 6 on the following pages.

Tab 4


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N. Appendices

• News articles, brochures, flyers and certifications that will assist the city in evaluating your proposal. Licenses and Authorizations Estrada Hinojosa & Co., Inc. is fully registered as a broker/dealer with the Financial Industry Regulatory Authority (“FINRA”) – formerly the National Association of Securities Dealers (the "NASD"), is a member of the Securities Investor Protection Corporation (the "SIPC"), and is in full compliance with all licensing and other requirements of the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and the Municipal Securities Rulemaking Board (MSRB). Community and Industry Involvement Despite the demands of building its presence in the market, the Company has not overlooked its obligation to give back to the community and to serve and improve the industry. The Firm is involved in numerous public interest groups, such as the following, among others:

Government Finance Officers Association of Florida and Texas Government Treasurers Organization of Texas Municipal Advisory Council (MAC) Municipal Securities Rulemaking Board (MSRB) Florida Government Finance Officers Association Greater Miami Chamber of Commerce Miami Behavioral Health Systems Florida League of Cities Miami-Dade League of Cities

Lourdes Abadin, who will serve as the City’s primary contact, is a GFOA Certified Government Finance Officer. Estrada Hinojosa’s Participation in Educational Seminars/Conferences - Estrada Hinojosa’s Chairman and CEO are well-known professionals in the area of public finance and are often called upon to speak at conferences or other related events and quoted in financial publications. Mr. Noe Hinojosa has had the pleasure of speaking at the Bond Buyer Conference, including the most recent one held in Miami Beach, FL in April 2011. At this Bond Buyer Conference, he presented along with professionals from Morgan Keegan and JP Morgan on the State of the Market. His inclusion as a speaker at the Bond Buyer Conference attests to his strong reputation for creative solutions to complex challenges in the world of investment banking. Mr. Hinojosa has broad experience as a financial advisor to municipalities. Mr. Hinojosa has also been quoted in the Bond Buyer publication many times including the issue for September 13, 2011 when he was quoted in the Bond Buyer, regarding his work with the City of Laredo, Texas, where our Firm serves as Financial Advisor. Ms. Lourdes Abadin, the primary contact for the City of North Miami Beach, has been recognized in publications as well throughout Florida. Attached herein on the following pages, please find an article regarding the closing of the $7.330 million Special Obligation Bonds, Federally Taxable (Government Center Project), (Build America Bonds- Direct Payment), Series 2010. In addition, attached herein please find an article featuring Ms. Abadin, entitled, “Key Biscayne Council Meetings.” Also included, are articles regarding the participation of Noe Hinojosa and Bob Estrada in the Texas Bond Buyer Conference as well as a notice of the 8thAnnual Bond Buyer Deal of the Year Award. The Firm is willing to provide more information regarding Estrada Hinojosa & Company if so desired by the City.

Key Biscayne Council Mefi1!tingsTwo Council meetings took place in May.A proposed ordinance for the amendmentof the Village Code regarding the creationof two departments was unanimously approved in first reading. The ordinancecreates a separate 'Fire Rescue Department and a 'Police Department, insteadof the previous. Public Safety Department. Ed Meyer, local resident, remindedCouncil that the idea of a Public Safetydepartment had been considered prior toincorporation, and rejected when comments from other cities security forces

. considered. it not a good idea to fostercooperation and assistance. The PublicSafety department, combining in one department Fire"and Police, was introducedtwo years ago.A proposed ordinance for a capital projectconcerning the Phase II of the CrandonBlvd. improvement plan was unaniinous

·Iyapproved in first reading witho,ut publiccomment. It was the consensus of Council

to include language in the ordinance.and in' the notice to electors indi~tingthe funding source for the S4.8 millionsneeded by the project.A proposed ordinance for the amendmentof the Village Charter regarding the election system was approved in its second andfinal reading. The ordinance brings backfour-year terms ,for Council members.The term for Mayor remains unch~nged.Key Biscayners are expected to vote for oragainst this modification in the upComing November elections. Council memberJorge Mendia suggested the eliminationof primaries for council members, in aneffort to simplify the election process.Village staff will look into the matter.A proposed ordinance for approving aloan by SunTrust Bank was approved infirst reading. The loan allows the villageto use the S22,000 dollars per month obtained as transport taxes revenue to payfor a 20-yearslow interest rate loan of

S3.5 millions. SunTrust won the biddingproviding a 4.05% interest" rate and noprepayment penalties. The loan seemeda financially sound alternative to a bond,that would only have yielded S2.5 millionin the same conditions.

The second reading of the beach use ordinance and the noise ordinance took

place. The beach ordinance was modified to allow for the storage of chairs andumbrellas belonging to hotels and condominiums according to a beach management plan. The plans mustbe approved bythe village manager. Commercial use ofmotorized vessels is prohibited. Personaluse, both motorized and non-motorized is aliowed.Council member PatriciaWeinman addressed her fellow Council

members regarding the need of a moreextefisive and ~proved communicationsprogram. Village Manager JacquelineMenendez will present a proposal at theBudget Workshop.

. II"J

J. ':.' .. " \,J ." ' ..•••

," .' JJPi " .'.. " .•

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. ,. ~

Mayor Robert Oldakowski announced

the fact that the village obtained an eightyear extension for the use of the CrandonPark fields.

The village lobbyist working in Tallahassee managed to allocate S4 millions in the 'next Florida state budget. If approved,S2.8 millions will be used in 'Phase III of

the Crandon Blvd. improvement project;SI million Will go to the sewer project andSO.2 millions for the water pipes. Accord:'ing to the lobbyist, a great effort was doneby State Senator Gwen Margolis --sisterof Council member Steve Lieclman-- toallocate the funds.

2020 'VISION:.Keeping the ,Village in our Vill~ge,By Frank Cap/an

In 1995 Key Biscayne "adopted a Comrehensi~.J'~.,,:.()ft:e11 referre9 to as. the

This initial prog~ will be repeated atthe Key Biscayne Community School

'Cafeteria on Saturday, June 11th from

, 9:0() ~,m",9ntill1ool!' FOO(l~~~~~~~

and a certain ambiance that we wished

to retain, but that we also wanted certain

-improvements. For example, the first partof the 1995 Master Plan itself reBects that

Village has undertaken, and the processleading to its development;"present critically important tools and opportunities.E~rience; at19 ma!lY examples tell us