Agenda Information Sheet City of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
DCM: David Gaines
DATE: April 5, 2022
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager to execute a Professional Services Agreement with Hilltop Securities, Inc.,
for arbitrage, continuing disclosure, and debt financial advisory services for the Finance Department as set
forth in the contract; providing for the expenditure of funds therefor; and providing an effective date (RFQ
7887 – Professional Services Agreement for arbitrage, continuing disclosure, and debt financial advisory
services awarded to Hilltop Securities, Inc., for one (1) year, with the option for four (4) additional one (1)
year extensions, in the total five (5) year not-to-exceed amount of $2,500,000.00).
INFORMATION/BACKGROUND
On December 6, 2016, City Council approved an arbitrage, continuing disclosure, and debt financial
advisory contract (Ordinance No. 16-1523) with Hilltop Securities, Inc. The five (5) year contract
commenced on February 21, 2017, and expired on February 20, 2022. An extension was approved by both
parties on February 3, 2022, extending the term to July 20, 2022.
On December 2, 2021, staff initiated a Request for Qualifications (RFQ) for arbitrage, continuing
disclosure, and debt financial advisory services for the Finance Department, and according to state law was
published in the Denton Record Chronicle.
To fully evaluate proposals within the context of the City’s required services, Finance staff members from
Treasury and Accounting were utilized to participate in the evaluation process. Below are the evaluation
criteria used for the RFQ.
• 30% Specifications
• 45% Probable Performance
• 25% Key Project Personnel
Request for Qualifications (RFQ) for professional arbitrage, continuing disclosure, and debt financial
advisory services were sent to 832 prospective firms, including 32 Denton firms, for these services. In
addition, the RFQ was placed on the Procurement and Compliance website for prospective respondents to
download and advertised in the local newspaper. Three (3) statement of qualifications (SOQ) were received.
The SOQs were evaluated based on published criteria including identification and understanding of the
City’s requirements, probable performance, and key personnel. Based upon this evaluation, the
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
recommended award is to Hilltop Securities, Inc., and is determined to be the most qualified firm for the
City.
NIGP Code Used for Solicitation: 918 - (Service Only) - Consulting
Services & 946 - (Service Only) -
Financial Services
Notifications sent for Solicitation sent in IonWave: 832
Number of Suppliers that viewed Solicitation in IonWave: 15
HUB-Historically Underutilized Business Invitations sent out: 86
SBE-Small Business Enterprise Invitations sent out: 355
Responses from Solicitation: 3
RECOMMENDATION
Award a contract with Hilltop Securities, Inc. for arbitrage, continuing disclosure, and debt financial
advisory services for the Finance Department, in a one (1) year, with the option for four (4) additional one
(1) year extensions, in the total five (5) year not-to-exceed amount of $2,500,000.
PRINCIPAL PLACE OF BUSINESS
Hilltop Securities, Inc.
Dallas, TX
ESTIMATED SCHEDULE OF PROJECT
This is an initial one (1) year contract with options to extend the contract for four (4) additional one (1) year
periods, with all terms and conditions remaining the same.
FISCAL INFORMATION
These arbitrage and continuing disclosure services will be funded by the General Fund. These financial
advisory services will be funded by each Fund based on the participation of each bond sale.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Evaluation Sheet
Exhibit 3: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Randee Klingele, 940-349-8206.
Legal point of contact: Marcella Lunn at 940-349-8333.