Section 681.8.8. Selection of financial advisors.

       8.8(1) Selection of employees and agents utilized in the issuance of bonds or notes (general).

        a.           Competitive selection procedures shall be used and supervised by the executive director.

        b.           The board may waive the requirements for a competitive selection procedure upon adoption of a resolution stating why the waiver is in the public interest.

        c.           Results of a competitive selection process shall be referred to the board for action if the aggregate annual compensation is expected to exceed $25,000.

        d.           The executive director may act for the board on competitive selections where the aggregate annual compensation is not expected to exceed $25,000. A request for board ratification of the executive director’s action shall be docketed at the next regularly scheduled board meeting.

        e.           Agreements with firms selected as financial advisor, bond counsel or for other functions necessary for the issuance of bonds or notes shall provide for annual renewals during a period not to exceed five years.

       8.8(2) Criteria for selection of financial advisor.

        a.           Familiarity with:

       (1)             Iowa laws, the governing statutes, and court decisions relating to regent bonding authority.

       (2)             Federal law and tax laws applicable or potentially applicable to financings by the state board of regents.

       (3)             The state of Iowa, the board, the universities, and outstanding regent bond issues.

       (4)             The “Iowa market” and retail bond brokers within the state of Iowa.

        b.           Experience with:

       (1)             State and municipal financings in Iowa.

       (2)             University financings and public competitive bidding.

        c.           Cost of service as identified in fees and any separate out-of-pocket expenses.

        d.           Demonstrated relationship of cooperation and trust with bond rating agencies.

        e.           Knowledge of regional and national bond underwriters and any syndicates that traditionally bid on regent bonds and other critical financing participants.

        f.            Professional qualifications and experience of principal employees who will work with regents.

        g.           Demonstrated capability to quantitatively evaluate financial variables and their impact on proposed financings.

        h.           Familiarity and experience with innovative borrowing mechanisms which could offer increased financial advantage or flexibility.

        i.            Ability to undertake the assignment immediately and perform in a satisfactory manner to provide services identified under “Scope of Services” in the Request for Proposals.

        j.            Experience and demonstrated success as indicated in a listing of current major clients.

        k.           Independence from municipal bond underwriting, trading, or other activities or events which could result in a conflict of interest (this is an absolute requirement for any firm selected as the regents’ financial advisor).

        l.            Reputation for integrity and compliance with law.

        m.          Commitment to fair and equitable employment practices.

       8.8(3) Criteria for selection of bond counsel.

        a.           Familiarity with:

       (1)             Iowa laws, the governing statutes and court decisions relating to existing regent bond financing authority, and familiarity with outstanding regent bond issues.

       (2)             Federal law and tax laws applicable or potentially applicable to financings by the state board of regents.

       (3)             Financial advisors, underwriters, and bond rating agencies.

        b.           Experience with state and municipal financings in Iowa and expertise with tax aspects of state and municipal financings.

        c.           Experience of attorneys that would be assigned to board of regents with university tax exempt financings.

        d.           Cost of service as identified in fees and any separate out-of-pocket expenses.

        e.           Professional qualifications and experience of principal employees who will work with regents.

        f.            Demonstrated relationship of cooperation and trust with bond rating agencies, underwriters, and other critical financing participants.

        g.           Familiarity and experience with master leases, variable rate demand bonds and other innovative borrowing mechanisms which could offer the board advantage or flexibility.

        h.           Demonstrated ability to provide written opinions on bonding matters recognized and accepted by underwriters, brokers and investors in the national market.

        i.            Ability to undertake the assignment immediately and perform in a satisfactory manner to provide services identified under “Scope of Services” in the Request for Proposals.

        j.            Experience and demonstrated success as indicated in a listing of current major clients.

        k.           Independence from financial functions such as municipal bond underwriting or trading or other activities and the absence of other clients which could result in a conflict of interest.

        l.            Reputation for integrity and compliance with law.

        m.          Commitment to fair and equitable employment practices.

This rule is intended to implement Iowa Code section 262.9(17).