Resolution 2020-31322 RESOLUTION NO. 2020-31322
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA,ACCEPTING THE RECOMMENDATION OF
THE CITY MANAGER AND WAIVING, BY 517TH VOTE, THE
COMPETITIVE BIDDING REQUIREMENT PURSUANT TO SECTION 2-
367 OF THE CITY CODE, FINDING SUCH WAIVER TO BE IN THE BEST
INTEREST OF THE CITY; AUTHORIZING THE CITY MANAGER TO
EXECUTE AMENDMENT NO. 1 TO THE AGREEMENT WITH PUBLIC
TRUST ADVISORS, LLC, PURSUANT TO INVITATION TO NEGOTIATE
(ITN) 2015-081-LR FOR INVESTMENT ADVISORY SERVICES; SAID
AMENDMENT EXTENDING THE AGREEMENT FOR AN ADDITIONAL
ONE (1) YEAR PERIOD, AND PROVIDING FOR THE ADDITIONAL
TERMS AND CONDITIONS CONTAINED IN THIS RESOLUTION.
WHEREAS, on June 10, 2015, the Mayor and City Commission authorized the
Administration to negotiate and execute an agreement with Public Trust Advisors, LLC
("Consultant") the top-ranked proposer to Invitation to Negotiate (ITN) 2015-081-LR for
Investment Advisory Services (the "Agreement"); and
WHEREAS, on September 4, 2015, the City executed the Agreement for a period of three
(3) years, with two (2)additional one (1)year renewals; and
WHEREAS, the City has exhausted all available renewal periods, and the Agreement is
set to expire in September 3, 2020; and
WHEREAS, due to the financial impact that resulted from COVID19, the Administration
has looked for ways to reduce its operating costs; and
WHEREAS, the Finance and Procurement Departments approached the Consultant and
discussed the potential extension of the Agreement for one (1) year beyond the original term
stipulated in the ITN; and
WEHREAS, the Consultant agreed to the one (1) year extension of the Agreement and
additionally proposed the following:
1) a reduction in the management fee for asset value of $550,000,000, from 0.03% to
0.0265%, yielding annual savings of approximately$19,250;
2) 8 hours of CPE in person or virtual training, at the sole discretion of the City Manager,
in accordance with Florida Statutes 218.415;
3) agree to continue paying arbitrage rebate fees during the life of the Agreement;
4) coordinate with S&P for the annual review for the AAA rating; and
WHEREAS, the Finance Department has reviewed the proposal provided by the
Consultant, and determined that it is fair and reasonable, the City Manager hereby recommends
that the City Commission hereby waive the competitive bidding requirement to extend the
existing Agreement for a one (1) year period, commencing on September 4, 2020 and ending
on September 3, 2021; and authorize the City Manager to execute the Amendment.
Page 281 of 2461
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 of the City of Miami Beach, Florida, hereby accept the written recommendation of
the City Manager and waive, by 5/7ths vote, the competitive bidding requirement pursuant to
Section 2-367 of the City Code, finding such waiver to be in the best interest of the City; and
authorize the City Manager execute Amendment No. 1 to the current Agreement with Public
Trust Advisors, LLC, pursuant to Invitation to Negotiate (ITN) 2015-081-LR for Investment
Advisory Services; said Amendment extending the Agreement for an additional one (1) year
period, and providing for the additional terms and conditions contained in this Resolution.
PASSED AND ADOPTED this Pi day of .714�r 2020.
Dan Gelber, Mayor
ATTEST:
Qv6 21.2crLo
Rafael E. Granado, City Clerk
IIICORPIORATED'
CF ''Z6
APPROVED AS TO
FORM&LANGUAGE
&FOR EXECUTION
V-
City Attorney Data
Page 282 of 2461
Resolutions-C7 D
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: July 29,2020
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE CITY MANAGER AND WAIVING, BY5/7TH VOTE, THE COMPETITIVE
BIDDING REQUIREMENT PURSUANT TO SECTION 2-367 OF THE CITY
CODE, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE
CITY; AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT
NO. 1 TO THE AGREEMENT WITH PUBLIC TRUST ADVISORS, LLC,
PURSUANT TO INVITATION TO NEGOTIATE (ITN) 2015-081-LR FOR
INVESTMENT ADVISORY SERVICES; SAID AMENDMENT EXTENDING
THE AGREEMENT FOR AN ADDITIONAL ONE (1) YEAR PERIOD, AND
PROVIDING FOR THE ADDITIONAL TERMS AND CONDITIONS
CONTAINED IN THIS RESOLUTION.
RECOMMENDATION
The Administration recommends adopting the Resolution.
BACKGROUND/HISTORY
On June 10, 2015, the Mayor and City Commission authorized the Administration to negotiate and
execute an Agreement with Public Trust Advisors, LLC ("Consultant") the top-ranked proposer to
Invitation to Negotiate (ITN) 2015-081-LR for investment advisory services (the "Agreement"). On
September 4, 2015, the City executed the Agreement for a period of three (3) years, with two (2)
additional one (1) year renewals. The City has now exhausted all available renewal periods and the
Agreement is set to expire in September 3,2020.
ANALYSIS
Due to the financial impact that resulted from COVID19, the Administration has looked for ways to
reduce its operating costs.
The Finance and Procurement Departments approached the Consultant and discussed the potential
extension of the Agreement for one(1)year beyond the original term stipulated in the ITN. During the
negotiations, the Consultant agreed to the one (1)year extension of the Agreement and additionally
proposed the following additional services:
Page 278 of 2461
1)A reduction in the management fee. As shown in the table below, the reduction proposed by the
Consultant for asset value of$550,000,000 from 0.03% to 0.0265% lowers the highest cost for the
City and represents a 6.58% reduction in the annual operation cost for the management of the City's
investment, yielding annual savings of approximately$19,250.
Anatrsis based an March 2020 invoice
make ad t:s:rneres in hghtitxed area to deterrninQ impact 0'fee change scenario
Average Daily market Value Average Daily Market Value
5936,94:.605 52 5936 9.11,605 52
Current Fee Struture Charge in Fer Proposed Fee Struture
5100.000.000 00 0 05 X % 54.166 67 0 000096 5100.000,000 00 005_00% 54.166.67
5100.000.000 00 0 010)Y 53 333 33 0 0000% 51030'00 000 00 3 0400% 53 333 33
5550,000,000.00 0.0300096 513,750.00 -0.0035% ' 5550.001000.00 0.0265% 512,145.83
S16940552 0 0200096 53.:15 69 0 0000% 5186 941.605 52 0 0200% 5 3.,::5 69
Weglsed Fee 0 0312% 523 365 69 ,:':etgteed Fee 0 0292% 522 76153
Mond*Difference in PTA Fees i5:.604:7i
WWI 0eft rence 15:9.2 0 0):
%Change .6 5891
2) Guarantee 8 hours of CPE in person or virtual training, at the sole discretion of the City, in
accordance with Florida Statue 218.415. Ensures that more staff members participate in the
training and reduces the need from travel time and costs. This training meets the requirements
of State Statutes and official certificates will be provided for audit purposes; and
3) Agree to continue paying Arbitrage rebate and custody fees during the life of the contract.
The City engages a 3rd party to perform arbitrage calculations based on IRS regulation, on its
outstanding municipal bonds. Public Trust Advisors has and will continue to pay for these
services,which is approximately$14,000 and$120,000 in custodian fees annually; and
4) Coordinate with Standard & Poor's for the annual review of the City's investment policy.This
is approximately $10,000 in value and Public Trust Advisors provides the required
documentation for review and rating confirmation and also pays the annual fee; and
5) Public Trust will continue to be held to a Fiduciary standard for the City's investment program
and provide a full range of management and advisory resources that includes professional
portfolio management,credit research, investment advisory, compliance and reporting.
The Finance Department has reviewed the proposal provided by the Consultant and determined
that it is fair and reasonable, and in the City's best interest to extend the existing Agreement for
a one (1) year period effective October 2020. During this one (1) year extension, if approved,
the Finance and Procurement Department will reassess the market and prepare a Request for
Proposal that would seek to establish a replacement agreement for these services.
CONCLUSION
The administration recommends that the Mayor and City Commission of the City of Miami
Beach, Florida,accept the written recommendation of the City Manager and waiving, by 5/7th
vote, the competitive bidding requirement pursuant to section 2-367 of the City code, finding
such waiver to be in the best interest of the City; authorizing the City Manager execute
Amendment No. 1 to the Agreement with Public Trust Advisors, LLC, pursuant to Invitation to
Negotiate (ITN) 2015-081-LR for investment advisory service; said Amendment extending the
Page 279 of 2461
Agreement for an additional one (1) year period, and providing for the additional terms and
conditions contained in this resolution.
Applicable Area
Not Applicable
Is this a"Residents Right Does this item utilize G.O.
to Know" item, pursuant to Bond Funds?
City Code Section 2-14?
No No
Legislative Trackina
Finance
Sponsor
Vice-Mayor Mark Samuelian
ATTACHMENTS:
Description
o Resolution
o Amendment Nal to agreement
o Exhibit B
o Memo
Page 280 of 2461
AMENDMENT NO. 1 TO THE CONTRACT
BETWEEN
THE CITY OF MIAMI BEACH, FLORIDA
AND
PUBLIC TRUST ADVISORS, LLC
This Amendment No. 1 (Amendment) to the Contract, dated September 4, 2015, is
entered into this 4th day of September, 2020 (Effective Date), by and between the City of
Miami Beach, Florida, a municipal corporation organized and existing under the laws of
the State of Florida, having its principal place of business at 1700 Convention Center
Drive, Miami Beach, Florida 33139 (City), and Public Trust Advisors, LLC, a Colorado
limited liability company, having its principal place of business at 717 17th Street, Suite
1850, Denver Colorado 80202 (Consultant).
RECITALS
WHEREAS, on June 10, 2015, the Mayor and City Commission authorized the
Administration to negotiate and execute an agreement with Public Trust Advisors, LLC
("Consultant") the top-ranked proposer to Invitation to Negotiate (ITN) 2015-081-LR for
Investment Advisory Services (the "Agreement"); and
WHEREAS, on September 4, 2015, the City executed the Agreement for a period of
three (3) years, with two(2)additional one(1)year renewals; and
WHEREAS, the City has exhausted all available renewal periods, and the
Agreement is set to expire in September 3, 2020; and
WHEREAS, due to the financial impact that resulted from COVID19, the
Administration has looked for ways to reduce its operating costs; and
WHEREAS,the Finance and Procurement Departments approached the Consultant
and discussed the potential extension of the Agreement for one (1) year beyond the
original term stipulated in the ITN; and
WHEREAS, on July 29, 2020, the Mayor and City Commission adopted Resolution
No. , approving this amendment No. 1 to the Agreement.
NOW THEREFORE, in consideration of the mutual promises and conditions
contained herein, and other good and valuable consideration, the sufficiency of which is
hereby acknowledged,the City and Consultant hereby agree to amend the Agreement as
follows:
Page 283 of 2461
1. ABOVE RECITALS.
The above recitals are true and correct and are incorporated as part of this
Amendment.
2. MODIFICATIONS.
The Agreement is hereby modified (deleted items struck-thy and inserted
items underlined) as follows:
A. the Agreement is hereby extended for one (1) additional year, beginning on
September 4, 2020, and expiring on September 3, 2021.
B. Exhibit "B" Fees to the Agreement is deleted in its entirety and replaced
with the attached "Amended Exhibit B."
3. RATIFICATION.
Except as amended herein, ail other terms and conditions of the Agreement shall
remain unchanged and in full force and effect. In the event there is a conflict
between the provisions of this Amendment and the Agreement, the provisions of
this Amendment shall govern.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their appropriate officials, as of the date first entered above.
THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.
Page 284 of 2461
FOR CITY: CITY OF MIAMI BEACH, FLORIDA '
ATTEST:
By:
Rafael E. Granado, City Clerk Jimmy L Morales, City Manager
Date
FOR CONSULTANT: PUBLIC TRUST ADVISORS, LLC
ATTEST:
By:
Managing Partner Managing Partner
Print Name Print Name
Title Title
APPROVED AS TO
FORM&LANGUAGE
&FOR EXECUTION
7JJ(I ,4,-- ri_ c —/-20
City Attorney Dat
Page 285 of 2461
EXHIBIT B
Renegotiation of Agreement Between the City of Miami Beach and Public Trust Advisors, LLC.
Fee Schedule
1. The Consultant Fee is set as a Not to Exceed amount of$365K per year,according to a "4 tier asset values"
See proposed reduced fee structure below.
Analysis based on March 2020 Invoice
Adjustments in highlighted area to determine impact of fee change scenario
Average Daily Portfolio Market Value
$936,941,605.52
Current Fee Struture Proposed Fee Struture Savings
$100,000,000.00 0.05000% $4,166.67 $100,000,000.00 0.0500% $4,166.67 0.0000%
$100,000,000.00 0.04000% $3,333.33 $100,000,000.00 0.0400% $3,333.33 0.0000%
$550,000,000.00 0.03000% $13,750.00 $550,000,000.00 0.0265% $12,145.83 -0.0035%
$186,941,605.52 0.02000% $3,115.69 $186,941,605.52 0.0200% $3,115.69 0.0000%
Weigthed Fee 0.0312% $24,365.69 Weighted Fee 0.0292% $22,761.53
Monthly Savings in PTA Fees ($1,604.17)
Annual Savings ($19.250.00)
%Savings (6.58%)
Other Items
•
1) Annual savings in City's investment activities$207,000(based on$1.3 Billion In Assets).Saving reflects Public
Trust's paying for the City's arbitrage and custody fees.
2) Public Trust to provide 8 hours of CPE in accordance with Florida State Statute 218.415 at no additional cost to
the City. Host an annual in person seminar in October in Orlando each year. In addition,coordinate with the City
to provide up to 8 hours of in person training at the City's preferred location and/or via virtual training. For City
employees that require this training prior to the September 30th fiscal year end and commit to this timeline.
3) Public Trust to pay for all fees associated with the Investment Policy Rating and Certification.
A. Public Trust coordinates with S&P for the annual review for the AAA rating and follow up with City's Finance
staff with any requested information required to complete the ratings review process.
B. The City received the Association of Public Treasurer's(APT)investment policy certification in 2019(based
on the City's approved updated investment policy from December 2019). The APT recommends a policy
certification renewal every three years.
Last updated 7/16/2020
Page 286 of 2461
MAMIBEACH
City of Miami Beach,1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Dan Gelber and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: July 29, 2020
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE
RECOMMENDATION OF THE CITY MANAGER AND WAIVING, BY
517TH VOTE, THE COMPETITIVE BIDDING REQUIREMENT
PURSUANT TO SECTION 2-367 OF THE CITY CODE, FINDING SUCH
WAIVER TO BE IN THE BEST INTEREST OF THE CITY;
AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT
NO. 1 TO THE AGREEMENT WITH PUBLIC TRUST ADVISORS, LLC,
PURSUANT TO INVITATION TO NEGOTIATE(ITN) 2015-081-LR FOR
INVESTMENT ADVISORY SERVICES; SAID AMENDMENT
EXTENDING THE AGREEMENT FOR AN ADDITIONAL ONE(1)YEAR
PERIOD, AND PROVIDING FOR THE ADDITIONAL TERMS AND
CONDITIONS CONTAINED IN THIS RESOLUTION.
ADMINISTRATION RECOMMENDATION
The Administration recommends adopting the Resolution.
BACKGROUND
On June 10, 2015, the Mayor and City Commission authorized the Administration to
negotiate and execute an Agreement with Public Trust Advisors, LLC ("Consultant") the
top-ranked proposer to Invitation to Negotiate (ITN) 2015-081-LR for investment advisory
services (the "Agreement"). On September 4, 2015, the City executed the Agreement for
a period of three(3)years,with two(2)additional one (1)year renewals. The City has now
exhausted all available renewal periods and the Agreement is set to expire in September
3, 2020.
ANALYSIS
Due to the financial impact that resulted from COVIDI9,the Administration has looked for
ways to reduce its operating costs.
The Finance and Procurement Departments approached the Consultant and discussed
the potential extension of the Agreement for one (1) year beyond the original term
stipulated in the ITN. During the negotiations, the Consultant agreed to the one (1) year
extension of the Agreement and additionally proposed the following additional services:
1) A reduction in the management fee. As shown in the table below, the reduction
proposed by the Consultant for asset value of $550,000,000 from 0.03% to
0.0265% lowers the highest cost for the City and represents a 6.58% reduction in
the annual operation cost for the management of the City's investment, yielding
annual savings of approximately$19,250.
Page 287 of 2461
Page 12
Analysis based on March 2020 Invoice
Make adjustments in highlighted area te determine impact of fee change scenario
Average Daily Market Value Average Daily Market Value
$936.941,605.52 5936.941,605.52
Current Fee Struture Change in Fee Proposed Fee Struhire
5100,000,000 00 0 05000% $4,166 67 0 0000% $100,000,000.00 0.0500% $4,166 67
5100000.000.00 0.04000% 53,333.33 0.0000% 5100.000,000.00 0.0400% 53.333.33
$550,000,000.00 0.03000% $13,750.00 -0.0035% $550,000,000.00 0.0265% 512,145.83
5186,941,605.52 0.02000% $3,115.69 0.0000% $186,941,605.52 0.02006 .. $3,115.69
Weigthed Fee 0 0312% 524.365 69 Weighted Fee 0.0292% $22,76153
Monthly Difference in PTA Fees ($1.60417)
Annual Difference (519,250.00)
%Change (658%)
2) Guarantee 8 hours of CPE in person or virtual training, at the sole discretion of the
City, in accordance with Florida Statue 218.415. Ensures that more staff members
participate in the training and reduces the need from travel time and costs.. This
training meets the requirements of State Statutes.and official certificates will be
provided for audit purposes; and
3) Agree to continue paying Arbitrage rebate and custody fees during the life of the
contract. The City engages a 3rd party to perform arbitrage calculations based on
IRS regulation,on its outstanding municipal bonds. Public Trust Advisors has and
will continue to pay for these services, which is approximately $14;000 and
$120,000 in custodian fees annually; and
4) Coordinate with Standard & Poor's for the annual review of the City's investment
policy. This is approximately$10,000 in value and Public Trust Advisors provides
the required documentation for review and rating confirmation and also pays the
annual fee; and
5) Public Trust will continue to be held to a Fiduciary standard for the City's
investment program and provide a full range of management and advisory
resources that includes professional portfolio management, credit research,
investment advisory, compliance and reporting.
The Finance Department has reviewed the proposal provided by the Consultant and
determined that it is fair and reasonable, and in the City's best interest to extend the
existing Agreement for a one (1) year period effective October 2020. During this one (1)
year extension, if approved, the Finance and Procurement Department will reassess the
market and prepare a Request for Proposal that would seek to establish a replacement
agreement for these services.
CONCLUSION
The administration recommends that the Mayor and City Commission of the City of Miami
Beach, Florida, accept the written recommendation of the City Manager and waiving, by
5/7th vote,the competitive bidding requirement pursuant to section 2-367 of the City code,
finding such waiver to be in the best interest of the City; authorizing the City Manager
execute Amendment No. 1 to the Agreement with Public Trust Advisors, LLC, pursuant to
Invitation to Negotiate (ITN) 2015-081-LR for investment advisory service; said
Amendment extending the Agreement for an additional one (1)year period, and providing
for the additional terms and conditions contained in this resolution.
Page 288 of 2461