HomeMy WebLinkAboutResolution 2026-34244RESOLUTION NO 2026-34244
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
CITY MANAGER, PURSUANT TO REQUEST FOR QUALIFICATIONS (RFQ)
NO. 2026-152-WG FOR CUSTODIAL BANKING SERVICES; AUTHORIZING
THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH U.S. BANK
NATIONAL ASSOCIATION, AS THE TOP -RANKED PROPOSER; FURTHER, IF
THE ADMINISTRATION IS NOT SUCCESSFUL IN NEGOTIATING AN
AGREEMENT WITH U.S. BANK NATIONAL ASSOCIATION, AUTHORIZING
THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE
NORTHERN TRUST COMPANY, AS THE SECOND -RANKED PROPOSER;
AND FURTHER, AUTHORIZING THE CITY MANAGER AND CITY CLERK TO
EXECUTE AN AGREEMENT UPON THE CONCLUSION OF SUCCESSFUL
NEGOTIATIONS BY THE ADMINISTRATION.
WHEREAS, on February 5, 2026, the City Commission approved the issuance of Request
for Qualifications (RFQ) 2026-152-WG for Custodial Banking Services; and
WHEREAS, on March 25, 2026, the City received proposals from the following four (4)
firms: Fifth Third Bank, N.A., The Northern Trust Company, U.S. Bank N.A., and Wilmington
Trust, N.A.; and
WHEREAS, the proposals submitted by Fifth Third Bank, N.A., and Wilmington Trust,
N.A., were deemed non -responsive for failure to meet the minimum requirements of the RFQ and
received no further consideration; and
WHEREAS, on March 11, 2026, the City Manager appointed an Evaluation Committee
via LTC # 104-2026; and
WHEREAS, the Evaluation Committee was comprised of Richard Ajami, Assistant
Director, Office of Management and Budget, Lorena Bravo, Assistant Director, Human Resources
Department, Juan Guerra, Accounting Manager, Finance Department, Manny Marquez,
Assistant Director, Finance Department, and Sara Patino, Treasury Manager, Finance
Department; and
WHEREAS, the Evaluation Committee convened on April 16, 2026, to consider the
proposals received; and
WHEREAS, the Evaluation Committee was provided with an overview of the project,
information relative to the City's Cone of Silence Ordinance, the Government Sunshine Law, and
general information on the scope of services and a copy of each proposal; and
WHEREAS, the Committee was instructed to score and rank each proposal pursuant to
the evaluation criteria established in the RFQ; and
WHEREAS, the evaluation process resulted in the proposers being ranked by the
Evaluation Committee in the following order:
1st U.S. Bank N.A.
2nd The Northern Trust Company; and
WHEREAS, after reviewing the qualifications of each proposer and having considered the
Committee's rankings and commentary, U.S. Bank N.A., the top -ranked firm, has been deemed
the best -qualified firm to provide custodial banking services for the City; and
WHEREAS, The Northern Trust Company, the second -ranked proposer, was also
deemed by the Committee to be qualified in the event that negotiations with U.S. Bank, N.A. are
unsuccessful; and
WHEREAS, accordingly, the City Manager recommends that the Mayor and City
Commission do the following: (i) authorize the Administration to enter into negotiations with U.S.
Bank N.A., as the top -ranked proposer and, if unsuccessful, The Northern Trust Company, as the
second -ranked proposer, and (ii) authorize the City Manager and City Clerk to execute the final
agreement upon the conclusion of successful negotiations by the Administration.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby accept the recommendation of the City Manager, pursuant to Request for
Qualifications (RFQ) No. 2026-152-WG for Custodial Banking Services; authorize the
Administration to enter into negotiations with U.S. Bank National Association, as the top -ranked
proposer; further, if the Administration is not successful in negotiating an agreement with U.S.
Bank National Association, authorize the Administration to enter into negotiations with The
Northern Trust Company, as the second -ranked proposer; and further, authorize the City Manager
and City Clerk to execute an agreement upon the conclusion of successful negotiations by the
Administration.
PASSED and ADOPTED this � day of
2026.
STEVEN MEINER, MAYOR
ATTEST: b
MAY 2 6 2026 ;.
RAFAEL E. 6RANADO, CITY CLERK �,INCORP ORATE
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
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City Attorney /.t% Date
Procurement Requests - C2 A
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Eric Carpenter, City Manager
DATE: May 20, 2026
TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA. ACCEPTING THE RECOMMENDATION OF THE CITY
MANAGER, PURSUANT TO REQUEST FOR QUALIFICATIONS (RFQ) NO. 2026-
"52-WG FOR CUSTODIAL BANKING SERVICES; AUTHORIZING THE
ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH U.S. BANK
NATIONAL ASSOCIATION, AS THE TOP -RANKED PROPOSER; FURTHER, IF
THE ADMINISTRATION IS NOT SUCCESSFUL IN NEGOTIATING AN
AGREEMENT WITH U.S. BANK NATIONAL ASSOCIATION, AUTHORIZING THE
ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE NORTHERN
TRUST COMPANY, AS THE SECOND -RANKED PROPOSER; AND FURTHER,
AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE AN
AGREEMENT UPON THE CONCLUSION OF SUCCESSFUL NEGOTIATIONS BY
FHE ADMINISTRATION. (FINANCE)
RECOMMENDATION
The City Administration ("Administration") recommends that the Mayor and City Commission
("City Commission") approve the Resolution.
The solicitation is currently under the cone of silence.
BACKGROUND/HISTORY
In accordance with the City of Miami Beach Investment Policy, long-term city investments, whose
terms are five or more years, are to be maintained in a custodial account at a custodian bank or
institution. A custodian bank is a financial institution that will hold the City's securities for
safekeeping. The custodian may hold stocks, bonds, or other assets in electronic or physical form
on behalf of its customers. Additionally, a custodian bank may also manage customers' accounts
and transactions, manage the settlement of financial transactions, account for the status of
assets, and ensure compliance with tax regulations.
On July 1, 1998, pursuant to Resolution No. 98-22801, the Mayor and City Commission
authorized the execution of an agreement with Fiduciary Trust International (FTI) for custodial
banking services for the City's investment accounts. In order to consider proposals for a
replacement contract, the Administration issued RFQ 2023-543-WG for custodial banking
services.
On February 21, 2024, pursuant to Resolution No. 2024-32909, the Mayor and City Commission
authorized the Administration to enter into negotiations with FTI as the top -ranked proposer. The
resolution further authorized the Administration to negotiate with PNC Bank N.A. (PNC), the
second -ranked proposer, should negotiations with FTI prove unsuccessful.
Following extensive negotiations, on August 7, 2025, FTI informed the City of its decision to exit
the municipal services market, including master custodianship of public pension plans and benefit
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payment services. Accordingly, the Administration declared an impasse in contract negotiations
with FTI under the RFQ.
On October 31, 2025, the Administration initiated negotiations with PNC. After reviewing PNC's
written responses and conducting a negotiation meeting on November 19, 2025, the
Administration determined that while PNC met the RFQ's minimum requirement of being a Trust
Banking Facility with a branch in Florida, it did not demonstrate the depth of experience or
qualifications necessary to meet the City's custodial banking needs —particularly within the Florida
municipal context. As a result, on December 29, 2025, the Administration declared an impasse
with PNC and developed Request for Qualifications (RFQ) 2026-152-WG for Custodial Banking
Services.
ANALYSIS
On February 5, 2026, the City Commission approved the issuance of Request for Qualifications
(RFQ) 2026-152-WG for Custodial Banking Services. On February 5, 2026, the RFQ was issued.
A voluntary pre -proposal conference was held on February 19, 2026, to provide information to
proposers submitting a response. Two addenda were issued, and 55 prospective bidders
accessed the advertised solicitation. RFQ responses were due and received on March 25, 2026.
The City received a total of 4 proposals from the following firms:
Fifth Third Bank, N.A.
The Northern Trust Company
U.S. Bank N.A.
Wilmington Trust, N.A.
The proposals received from Fifth Third Bank, N.A., and Wilmington Trust, N.A., were deemed
non -responsive for failure to meet the minimum requirements of the RFQ and received no further
consideration.
On March 11, 2026, the City Manager appointed the Evaluation Committee ("Committee") via LTC
#104-2026. The Committee convened on April 16, 2026, to consider proposals received. The
Committee was comprised of Richard Ajami, Assistant Director, Office of Management and
Budget, Lorena Bravo, Assistant Director, Human Resources Department, Juan Guerra,
Accounting Manager, Finance Department, Manny Marquez, Assistant Director, Finance
Department, and Sara Patino, Treasury Manager, Finance Department.
The Committee was provided an overview of the project, information relative to the City's Cone
of Silence Ordinance, and the Government Sunshine Law. The Committee was also provided with
general information on the scope of services and a copy of each proposal. The Committee was
instructed to score and rank each proposal pursuant to the evaluation criteria established in the
RFQ. The evaluation process resulted in the ranking of proposers as indicated below (See
Attachment A):
1s' U.S. Bank N.A.
2na The Northern Trust Company
After reviewing the submissions and the Evaluation Committee's rankings and commentary, U.S.
Bank N.A., the top -ranked firm, has been deemed the best -qualified firm to provide custodial
banking services for the City. As noted by the evaluation committee, this firm has a strong team
with a wealth of knowledge in the industry and in neighboring municipalities of similar size,
portfolios, and scope of responsibilities. Additionally, the Committee noted that some of the prior
experience provided demonstrated their ability to seamlessly transition from our existing service
provider.
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The Northern Trust Company, the second -ranked proposer, was also deemed by the Committee
to be qualified in the event that negotiations with U.S. Bank, N.A. are unsuccessful.
A summary of the two top -ranked firms, based on the information provided by each firm, follows:
U.S. Bank N.A.
For the past 50 years, they have delivered high -quality service to their clients through a strong
governance model and the continuous pursuit of client service excellence.
U.S. Bank N. A. offers a specialized team dedicated to servicing clients with assets in excess of
$1 billion. Institutional Trust and Custody services 585 government clients with more than $341
billion in assets. Sixty-five of those clients have over $1 billion in assets, five of which are Florida
government clients. This national team comprises some of their most experienced and senior
relationship management and client services personnel and is equipped to provide a
comprehensive suite of products and high -touch, premium and personalized service to clients
with significant custody assets.
Some of their Florida clients include City of Miami, City of St. Petersburg, and City of Sarasota.
The references received provide positive feedback regarding U.S. Bank N.A. services.
The Northern Trust Company
Northern Trust Corp. is a financial holding company, which engages in the provision of asset
servicing, fund administration, asset management, fiduciary, and banking solutions for
corporations, institutions, families, and individuals. It operates through the Asset Servicing and
Wealth Management segments. The Asset Servicing segment offers asset servicing, brokerage,
banking and related services to corporate and public retirement funds, foundations, endowments,
fund managers, insurance companies and sovereign wealth funds. The Wealth Management
Segment includes trust, investment management, custody, and philanthropic services, financial
consulting, guardianship and estate administration, family business consulting, family financial
education, brokerage services and private and business banking. The company was founded on
August 12, 1889, and is headquartered in Chicago, IL.
Some their Florida clients include City of Miami Fire Fighters and Police Officers Retirement Trust,
City of Ft Lauderdale Police & Fire Retirement System, and City Pension Fund for Fire & Police
Officers — Pembroke Pines. The references received provide positive feedback regarding The
Northern Trust Company services.
FISCAL IMPACT STATEMENT
The City does not budget for these services, associated costs of custodial banking services are
calculated monthly by the fiduciary institutions and are netted against investment returns. These
expenses are then remitted to the City's Investment Advisors (Public Trust Advisors, Contract No.
2021-264-KB) for reimbursement. In its current agreement with Public Trust Advisors, the City
receives a full reimbursement from the Investment Advisor for all related fiduciary expenses. As
a result, the City records net zero expenses for these services.
Does this Ordinance require a Business Impact Estimate?
(FOR ORDINANCES ONLY)
If applicable, the Business Impact Estimate (BIE) was published on:
See BIE at: https•//www miamibeachflgov/city-hall/city-clerk/meeting-notices/
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FINANCIAL INFORMATION
N/A
CONCLUSION
For the reasons stated herein, it is recommended that the Mayor and City Commission approve
the Resolution authorizing the Administration to enter into negotiations with U.S. Bank N.A., the
top -ranked proposer; and if unsuccessful, authorizing negotiations with The Northern Trust
Company, the second -ranked proposer; and further authorizing the City Manager and City Clerk
to execute an agreement upon conclusion of successful negotiations by the Administration.
Applicable Area
Citywide
Is this a "Residents Right to Know" item,
pursuant to City Code Section 2-17?
Is this item related to a G.O. Bond
Project?
M
Was this Agenda Item initially requested by a lobbyist which as defined in Code Sec. 2-481
includes a principal engaged in lobbying? No
If so, specify the name of lobbyist(s) and principal(s):
Department
Procurement
Sponsor(s)
Co-sponsor(s)
Condensed Title
Award RFQ 2026-152-WG, Custodial Banking Services. (FN/PR)
Previous Action (For City Clerk Use Only)
51 of 1709
RFO 2026-152-WG
Loran■ Bravo
Juan Guerra
Manny Marquez
c Sara PatlnO
Custodial Banking Sarvlca
Richard Alarm
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52 of 1709