8 Colo. Code Regs. § 1508-2-1.7

Current through Register Vol. 48, No. 1, January 10, 2025

Section 8 CCR 1508-2-1.7 - Selection of Outside Professional Services

A.Finance Professionals.

1.Financial Advisors. The State Treasurer may retain a financial advisor to assist in the issuance or incurrence of the proposed Financial Obligation, and the administration and post-issuance compliance of Financial Obligations. Financial advisors retained by the State Treasurer shall also comply with all applicable rules and regulations promulgated by the SEC and MSRB. A financial advisor may not serve as an underwriter on the same issuance or incurrence during the term of its engagement. Assistance to be provided by a financial advisor may include, but not be limited to:

(a) Analyze the costs and benefits of various funding sources, including the strengths and weaknesses of various financing alternatives or if requested, propose or develop a plan of financing;

(b) Analyze and report on the advantages and disadvantages of each proposed plan of financing and method of sale;

(c) Provide advice regarding the potential pricing of the Financial Obligation, and provide estimated repayment schedules of a proposed Financial Obligation;

(d) Monitor market opportunities, as well as favorable conditions for any refinancing opportunities of existing Financial Obligations;

(e) Work with the State Treasurer in recommending size, structure and specific terms and conditions of a Financial Obligation;

(f) Provide advice on the structuring, method and conditions of sale, including publicly offered and privately negotiated options;

(g) Provide advice on terms and conditions of credit and liquidity facilities, interest rate exchange agreements and other derivative products;

(h) Assist in preparing documents necessary for the issuance or incurrence of Financial Obligations, which may include schedules, sale notices, operative documents, closing memoranda and disclosure materials;

(i) Assist in the application for ratings and credit and/or liquidity facilities;

(j) Upon request, provide advice on investment of proceeds;

(k) Assist in the determination of the financing team, including development of requests for proposals for other professional services and the evaluation of responses; and

(l) Provide a written post-transaction assessment, including post-issuance compliance assessment, if requested by the State Treasurer.

2.Bond Counsel, Disclosure Counsel and other legal representation. The State Treasurer may retain bond counsel, disclosure counsel, tax counsel, or other legal counsel necessary for the issuance or incurrence of a Financial Obligation. If legal counsel will be retained by the State Treasurer to represent the State, any legal counsel must be authorized by the Office of the Attorney General and receive a designation as a Special Assistant Attorney General. Any legal counsel retained by the State Treasurer must be listed in the most recent The Bond Buyer's Municipal Marketplace ®, a periodic directory known as the "Red Book" and must have extensive experience in government and public finance, municipal securities regulation and tax issues.

3.Other Professionals. The State Treasurer may retain other professionals to assist with the Financial Obligation issuance or incurrence process if the State Treasurer determines that such retention is necessary and in the best interests of the State. Such professionals may include, but not be limited to: trustees, registrars, paying agents, escrow agents, accountants, financial printers, underwriters, tender/remarketing agents, credit and liquidity facility providers, and other professional services associated with financings.

B.Selection Process. The selection and retention of finance professionals will be achieved through an open and competitive request for proposal process. The State Treasurer is exempt from the State procurement code pursuant to sections 24-2-102(4) and 24-101-301(1), C.R.S., and may, but is not required to, post requests for proposals through the State procurement bid system or on the State Treasurer's website.

C.Criteria for Evaluating Selection of Financing Team Members. The criteria to be used in evaluating and selecting a finance professional may include, but is not limited to:

1. The firm's experience and capability and the individual finance professional's experience and capability to provide the requested services to major governmental issuers, including the State;

2. Experience and capability of assigned personnel and their familiarity with the State;

3. Fees and expenses;

4. Absence of conflicts of interest;

5. Availability of key personnel to serve the State;

6. References;

7. Knowledge of innovative approaches;

8. Demonstrated ability to meet deadlines and attention to detail;

9. Local office and Statewide presence;

10. Financial strength or capability to execute the proposed transaction; and

11. Limitations and qualifications in legal opinions.

The State Treasurer shall determine the weight given each evaluation criteria.

8 CCR 1508-2-1.7

. Rules 1.11 emer. rule eff. 06/14/2013.

. Rules 1.12 emer. rule eff. 06/14/2013.

. Rules 1.4 emer. rule eff. 06/14/2013.

Rule 1.11 eff. 09/14/2013.

Rule 1.12 eff. 09/14/2013.

Rules 1.4 eff. 09/14/2013.