REQUEST FOR QUALIFICATIONS RFQ FINANCIAL ADVISOR SERVICES

PERSONS RECEIVING THIS REQUEST FOR QUALIFICATIONS (RFQ) FROM THE INTERNET OR BY FAX MUST CALL (501) 377.1266 AND REGISTER AS POTENTIAL RESPONDERS. FAILURE TO REGISTER MAY RESULT IN YOUR MISSING RFQ AMENDMENT(S). MISSING AN AMENDMENT MAY RESULT IN YOUR OFFER BEING FOUND NON-RESPONSIVE.

REQUEST FOR QUALIFICATIONS

RFQ 11-14

FINANCIAL ADVISOR SERVICES

Mailing Date

April 27, 2011

Submittal Due Date

3:00 P.M., CST Thursday May 19, 2011

TO

Elizabeth Tuck-Rowan, C.P.M., CPPB, CPSD

Purchasing Manager

Purchasing Office

Central Arkansas Water

221 East Capitol Avenue, Third Floor

Little Rock, AR 72202

Financial Advisor Services RFQ 2 | P a g e

CENTRAL ARKANSAS WATER

REQUEST FOR QUALIFICATIONS

RFQ 11-14

FINANCIAL ADVISOR SERVICES

Objective………...………...……… Page 3 Background.……….……….. Page 3 Scope of Services….………...………. Page 3 Criteria………. Page 4 Format………...……….. Page 4 Review Process………..………... Page 5 Notes……….………... Page 5 Insurance Requirements……….………..……….. Page 6 Submittal..………..……… Page 6

CENTRAL ARKANSAS WATER

REQUEST FOR QUALIFICATIONS

RFQ 11-14

FINANCIAL ADVISOR SERVICES

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Central Arkansas Water (“CAW”) is seeking Statements of Qualifications from qualified firms with significant, high level investment banking and financial advisor experience to serve as CAW’s financial advisor on upcoming debt issues and ongoing financial management.

The closing date for the receipt of Statements of Qualifications is 3:00 P.M. CST Thursday,

May 19, 2011.

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CAW serves a retail and wholesale consumer population of approximately 398,000 in 17 cities and communities in the Little Rock-North Little Rock metropolitan area. As such, the utility has an essential role in quality of life, public health, and economic development for 1 in every 7 Arkansans. The utility has a national reputation for quality service at an affordable price and is an industry leader in water quality, source-water protection, regulatory compliance, financial management, planning and system integrity, automation, and customer service. As the largest water utility in the state of Arkansas, CAW has approximately 121,800 metered customers and 271 employees.

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The chosen firm shall be available to answer any questions, or provide any advice on financial matters that CAW may need in the course of its day-to-day operations. The Chief Financial Officer of CAW shall be designated as the contact person with the financial advisor. Services shall also include, but not be limited to, the following:

A. Advise CAW regarding bond structuring, market conditions, timing of sales and manage all aspects of the debt issuance transaction. Prepare a timetable for each issuance and coordinate the efforts of other bond service providers (e.g. CAW attorney, bond counsel, disclosure counsel, water rate analyst, rating agencies, insurers, trustee, verification agent, paying agent, registrar, escrow agent, printer, etc.).

In your response, please provide three recent examples of previous clients with contact information for which this service was provided.

B. Assist CAW in obtaining the best possible bond rating.

In your response, please outline your firm’s experience during the past two years with the major rating agencies. Discuss this experience and its potential applicability to achieving the best possible bond rating for CAW. Also, please offer an opinion as to which agency or agencies might be preferred and the anticipated extent of your firm’s participation in the agency presentation process.

Financial Advisor Services RFQ 4 | P a g e 1. Outline the circumstances under which each method (competitive and negotiated)

would be preferred.

2. Describe the role your firm would expect to play as financial advisor under each of the two methods.

D. Manage processes and assist in preparation of the preliminary official statement, the official statement, notice of sale, bid form (if applicable) and any other supplements, amendments, or other disclosure documents.

In your response, please attach an official statement in which you acted as financial advisor.

E. The firm shall facilitate the sale and marketing of CAW’s debt. The successful proposer

will be excluded from acting in the capacity of underwriter for CAW debt issue for which

it acts as a financial advisor. In your Proposal, please outline the activities the firm would undertake to perform this function.

F. The firm shall periodically evaluate refinancing options. In your Proposal, please: 1. Outline the role your firm would expect to play in refinancing CAW debt. 2. Describe the firm’s experience in refinancing municipal debt.

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A Review Committee will consider the Statements of Qualifications that meet the enumerated requirements and that are received by the designated closing time and date of 3:00 P. M., CST

Thursday May 19, 2011. The Review Committee will base evaluations on the criteria outlined

below:

1. Company background and experience with Water Revenue Bonds 2. Ability to perform requirements of the Scope of Services

3. Qualifications of the staff to be assigned 4. Three (3) references with contact information

5. Short explanation of why CAW should select the Financial Advisor

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The Request for Qualifications process is intended to offer interested financial advisor firms the opportunity to demonstrate their ability to perform the required services. The utility does not intend for the development of a proposal to be expensive or extravagant; however, the proposal should be well-considered for simplicity and ease of understanding.

1. Company Background

a. Name, address, email and telephone number b. Years in business

c. Offices available to support CAW

d. Departmental resources to perform the work required by CAW

2. A description of your institution’s experience in handling Water Revenue Bonds and confirmation of the ability to perform scope of services contained herein

3. Identification of the individuals assigned to this transaction, their roles, and relevant experience

4. Three (3) references with contact information

5. Short explanation of why CAW should select the Financial Advisor

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The Review Committee will select firm(s) deemed most qualified and responsive to the Request for Qualifications. During the review process, the committee may select finalists and require in-person interviews and/or presentations. After the completion of the review process, the committee will notify the selected firm(s) and begin contract negotiations.

Communications with CAW during this review process must be coordinated through the office of the Purchasing Manager.

CAW reserves the right to reject all or any portion of the Request for Qualifications submitted as a result of this request. Solicitation of this Request for Qualifications does not bind CAW to award any contract to any firm(s). CAW further reserves the discretion to select more than one firm to provide the different service requirements covered by this Request for Qualifications. CAW reserves the right to request clarification of information submitted and to request additional information from respondents.

The firm shall not assign any interest in the contract and shall not transfer any interest in the same without prior written approval of CAW.

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Each firm that submits a Statement of Qualifications should disclose all relevant material facts regarding significant financial or influential interest with CAW employees and Commissioners and all contracts and/or transactions that might reasonably be construed to be adverse to CAW's interests.

CAW has a policy of non-discrimination and abides by all laws, rules, and executive orders governing equal employment opportunity. As employers, CAW contractors and service providers may not discriminate on the basis of age, sex, race, religion, color, national origin, handicap, or veteran status. CAW encourages its contractors and service providers to accept the goal of having a workforce that generally reflects the demographic composition of the community in which the contractors and service providers are located.

Financial Advisor Services RFQ 6 | P a g e

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Respondent will maintain at least $5,000,000 of professional liability insurance.

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To meet the requirements of this Request for Qualifications, a firm must submit a minimum of five (5) copies of the Statement of Qualifications no later than 3:00 P.M., CST Thursday, May

19, 2011. The RFQ must be received in a sealed envelope bearing the following information

and delivered according to the following instructions: RFQ Title: Financial Advisor Services

Due Date: Thursday, May 19, 2011 Due Time: 3:00 P.M., CST

Location: 221 East Capital Avenue, Third Floor, Purchasing Office, Little Rock, AR 72202

HAND-DELIVERY OR PRIVATE CARRIER MAIL (USPS)

ATTN: Elizabeth Tuck-Rowan ATTN: Elizabeth Tuck-Rowan

Purchasing Manager Purchasing Manager

Central Arkansas Water Central Arkansas Water

James T. Harvey Administration Building, Third Floor P.O. Box 1789

221 East Capitol Avenue Little Rock, AR 72203

Little Rock, AR 72202

Interested firms having questions or requiring clarification concerning this Request for Qualifications should direct their inquiries to Jeff Mascagni, Controller, at (501) 377.1339 or via mail at [email protected]. CAW will not accept Statements of Qualifications by E-mail or facsimile transmittal.