Management, Financial Consulting, and Bond Engineering Services

SCOPE OF SERVICES AND TERMS The Seaport Department must conduct inspections of its facilities pursuant to Master Bond Ordinance 21-74. In addition, the Seaport Department requires management financial consulting services to assist in the pursuit of funding for capital improvement projects. The Consultant shall provide professional services, which includes, but shall not be limited to bond engineering services, value analysis studies [in accordance with Section 2-10.4 of the Miami-Dade County (County) Code], management financial consulting services, and any supportive tasks ancillary to the primary scope of services. 1. The Consultant will perform Bond Engineering Services, including, but not limited to, the following: a. Inspecting the Seaport Departments facilities, providing reports on the condition of aforementioned facilities, noting deficiencies and needs relevant to the Seaport Departments long-range plans, as well as evaluating financial and budgetary records for: b. Preparing the annual bond engineering report, which includes providing recommendations, evaluations, rate studies, feasibility studies, financial forecasts, and certifications, as required by the Seaport Master Bond Ordinance No. 21-74, and subject to County review and acceptance. c. Providing 40-year certification reports; d. Reviewing and setting forth recommendations as to any necessary revisions of rates and Port tariff structures; e. Reviewing Port facility designs by others for consistency with facility requirements, relevance to the Seaport Departments long-range master plan, and adherence to requirements of funding sources, property values for insurance coverage, and facilities reserve for maintenance; f. Evaluating the alignment and timing of facility investments to support projected revenue sources; and g. Reviewing new Capital Development projects to ensure conformity to current and future operational requirements, estimated impact on revenues, and relational changes in maintenance and operations expenses. 2. The Consultant will perform Value Analysis studies, including, but not limited to, the following: a. Gathering and tabulating information concerning the facility as designed, to evaluate the specific use or functional requirements of the items under study and their alignment to the Seaport Departments plans; b. Developing alternative recommendations that fulfill the facility's basic required function(s), in accordance with best practices and standards; c. Incorporating analysis and work products of other Seaport Department Consultants within business case deliverables; d. Business case analysis evaluating, critiquing, ranking, and prioritizing feasible best alternatives developed in (b) above. An estimated dollar value shall be developed and applied to all possible options, and a determination shall be made of the alternatives that offer the most significant potential for savings or net benefit to the Seaport Department. e. Presenting a written value analysis study, which incorporates the best alternatives, to County staff for approval; f. Providing assistance and recommendations in incorporating the selected alternatives into a project. The costs considered in the value analysis shall include initial construction costs, start-up costs, financing costs, and continuing operational costs. Where continuing costs are analyzed, the value analysis shall consist of life cycle costing, and g. Providing value analysis services, upon request of the Seaport Department, for additional or changed work required after award of a project to the Contractor. 3. The Consultant will perform highly specialized Management Financial Consulting Services, which represent 40% of the contract amount. Services include, but are not limited to, the following: a. Evaluating the ability of the Seaport Department to generate revenues sufficient to satisfy debt service coverage requirements (i.e., analyzing the economic base, forecasting passenger and cargo traffic, forecasting revenues and expenditures, etc.). Such evaluation shall be in the form of a financial feasibility report. b. Participating in the preparation of the Preliminary Official Statement and the Official Statement and related documents for each bond issuance; c. Participating in investment rating agency, credit insurer, and investor presentations and responding to inquiries by such groups; d. Performing due diligence and other services for Port-related financial transactions; e. Evaluating rate covenant compliance rents, fees for Seaport Department properties, facilities, and services; f. Recommending rents, fees for the Seaport Departments system (revenue infrastructure) in conjunction with each debt issuance; g. Notify the Seaport Department and make recommendations as to a revision of the rates, fees, or any changes needed if it is determined that the total net revenues are not sufficient to meet the terms of the Ordinance. h. Evaluating the financial impact of facilities constructed with third-party funds or revenues and later absorbed by the Seaport Department to determine whether the Seaport Department still satisfies its debt services coverage requirements; i. Developing long-range pro forma financials beyond the five-year net revenue estimates, required by the Ordinance, for the greater of twenty-five years or the debt term being considered; j. Evaluating the Capital Investment Program in the Master Plan and determining the alignment of investments and investment timing to the cargo and revenue projections; k. Evaluating long-term cargo projections relative to the Seaport Departments existing market share within key Florida markets, as well as more distant hinterland markets. Determine to what extent market share is likely to change within these respective locations by comparing the Ports competitive position relative to other Florida, East Coast, and United States Ports. Validate cargo forecasts, to be developed by commodity, trade partner, and US-County level; l. Based on cargo projections, evaluate long-term expansionary capital requirements for infrastructure and equipment (capital plan). This capital plan will also incorporate the typical lifecycle of the infrastructure and equipment used at the Port to determine the replacement timeline. m. Reviewing capital expenditure cost estimates, including inflation for future years, and providing an opinion on estimated cost relationships to industry norms to assist in the preparation of the annual capital budget; n. Evaluating existing operational expenses and providing recommendations for reductions and opportunities for efficiencies; o. In the performance of the required facility inspections, aligning the lifecycle of critical infrastructure components to their financial performance, noting any deficiency expectations over the pro-forma period; p. Evaluating the potential mix of funding sources relative to the strengthening of the Seaport Departments financial position, relationship to covenants in the Ordinance, and positioning with the rating agencies; q. Evaluating the best use of undeveloped areas on and off Port properties that support the Seaport Departments long-range plans; and r. Evaluating unsolicited proposals and Public Private Partnership proposals and providing recommendations to Seaport Department Senior Staff.