2015-29040 Reso RESOLUTION NO. 2015-29040
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
CITY MANAGER PERTAINING TO THE RANKING OF PROPOSALS
RECEIVED, PURSUANT TO INVITATION TO NEGOTIATE NO. 2015-081-LR,
FOR INVESTMENT ADVISORY SERVICES; AUTHORIZING THE CITY
ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE TOP-
RANKED PROPOSER, PUBLIC TRUST ADVISORS, LLC; AND, IN THE
EVENT THAT THE ADMINISTRATION IS UNABLE TO NEGOTIATE A
MUTUALLY AGREEABLE AGREEMENT WITH PUBLIC TRUST ADVISORS,
LLC, ACCEPTING THE CITY MANAGER'S RECOMMENDATION TO
AUTHORIZE THE ADMINISTRATION TO NEGOTIATE WITH OTHER FIRMS,
IN ORDER OF RANK; AND FURTHER AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE AN AGREEMENT, ACCEPTABLE TO THE CITY
MANAGER AND THE CITY ATTORNEY, UPON CONCLUSION OF
SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION.
WHEREAS, Invitation to Negotiate (ITN) No. 2015-081-LR was issued on February 20,
2015 with an opening date of April 10, 2015; and
WHEREAS, a pre-proposal conference was held on March 2, 2015; and
WHEREAS, the City of Miami Beach (City) received proposals from Chandler Asset
Management, Inc.; Davidson Fixed Income Management, Inc.; First Southwest Asset
Management, LLC; PFM Asset Management LLC; and Public Trust Advisors, LLC.; and
WHEREAS, on April 14, 2015, the City Manager via Letter to Commission appointed an
Evaluation Committee (Committee), consisting of the following individuals:
• Jim Goldsmith, Resident
• Sanford Horowitz, Certified Public Accountant
• Julie Santamaria, RBC Capital Markets, Financial Advisor
• Allison Williams, City of Miami Beach, Chief Accountant
• John Woodruff, City of Miami Beach, Office of Budget and Performance Initiatives
WHEREAS, the Committee convened on May 22, 2015 to consider all proposals; and
WHEREAS, the Committee was provided an overview of the project, information relative
to the City's Cone of Silence Ordinance and the Government Sunshine Law, general information
on the scope of services, references, and a copy of the proposal; and
WHEREAS, the Committee was instructed to score and rank the proposals pursuant to
the evaluation criteria established in the ITN; and
WHEREAS, the Committee's ranking was as follows: Public Trust Advisors, LLC, top-
ranked; PFM Asset Management, LLC second highest ranked; First Southwest Asset
Management, Inc., third highest ranked; Chandler Asset Management, Inc., fourth highest
ranked; and Davidson Fixed Income Management, Inc., fifth highest ranked; and
WHEREAS, after reviewing all the submissions and the Evaluation Committee's
rankings, the City Manager exercised his due diligence and recommended that the
Administration be authorized to enter into negotiations with the top ranked proposer, Public
Trust Advisors, LLC. In the event that the Administration is unable to negotiate a mutually
agreeable agreement with Public Trust Advisors, LLC, the City Manager recommends that the
Mayor and City Commission authorize the Administration to negotiate with other firms, in order
of rank. Further, the City Manager recommends that the Mayor and City Clerk be authorized to
execute an Agreement, acceptable to the City Manager and City Attorney, upon 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 pertaining to the ranking
of proposals received, pursuant to Invitation to Negotiate No. 2015-081-LR, for Investment
Advisory Services; authorize the Administration to enter into negotiations with the top-ranked
proposer, Public Trust Advisors, LLC; and, in the event that the Administration is unable to
negotiate a mutually agreeable agreement with Public Trust Advisors, LLC, accept the City
Manager's recommendation that the Administration negotiate with other firms, in order of rank;
and further authorize the Mayor and City Clerk to execute an agreement, acceptable to the City
Manager and City Attorney, upon conclusion of successful negotiations by the Administration.
PASSED AND ADOPTED this /0 day of JLIIII 2015.
Philip Levine;
ATTEST: /
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COMMISSION ITEM SUMMARY
Condensed 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 Invitation To Negotiate(ITN) No. 2015-
081-LR For Investment Advisory Services.
Key Intended Outcome Supported:
Ensure expenditure trends are sustainable over the long term
Supporting Data (Surveys, Environmental Scan, etc: N/A
Item Summary/Recommendation:
On November 19, 2014,the City Commission authorized the issuance of an Invitation to Negotiate
(ITN) for Investment Advisory Services. The Administration issued ITN 2015-081-LR to seek
proposals from parties interested in providing the City with non-discretionary investment advisory
services to make recommendations for the City's investments in accordance with the City's
investment policy. The ITN was released on February 20, 2015. A pre-proposal conference to
provide information to the proposers submitting a response was held on March 2,2015. On March
19, 2015, the City received proposals from: Chandler Asset Management, Inc.; Davidson Fixed
Income Management, Inc.; First Southwest Asset Management, LLC; PFM Asset Management
LLC; and Public Trust Advisors, LLC.
On May 22, 2015,the Evaluation Committee appointed by the City Manager convened to consider
the responsive proposals received. The Committee was instructed to score and rank the proposals
received pursuant to the evaluation criteria established in the ITN. The results of the evaluation
committee process were presented to the City Manager for his recommendation to the City
Commission.
After reviewing the submission and the Evaluation Committee's rankings of proposals received,the
City Manager recommends that the Mayor and the City Commission, pursuant to Invitation to
Negotiate(ITN) No. 2015-081-LR, for Investment Advisory Services, authorize the Administration
to enter into negotiations with the top ranked proposer, Public Trust Advisors, LLC. In the event
that the Administration is unable to negotiate a mutually agreeable agreement with Public Trust
Advisors, LLC, the City Manager recommends that the Mayor and City Commission authorize the
Administration to negotiate with other firms, in order of rank. Further, the City Manager
recommends the Mayor and City Clerk be authorized to execute an Agreement upon conclusion of
successful negotiations by the Administration.
RECOMMENDATION
ADOPT THE RESOLUTION.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account
Funds: 1 NA
2
•
3
OBPI Total
Financial Impact Summary: The fees for the Investment Advisors are an offset of the interest
earnings on the investments.
City Clerk's Office Legislative Tracking:
Alex Denis, Extension 6641
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•
CAAGENDA ITEM C 7_
MIAMIBEACH DATE 640--1..
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSI O N MEMORANDUM
TO: Mayor Philip Levine and Members o the City C,.mmission
FROM: Jimmy L. Morales, City Manager
DATE: June 10, 2015
SUBJECT: A RESOLUTION OF THE MAYO AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCE TING THE RECOMMENDATION OF THE CITY
MANAGER PERTAINING TO THE RANKING OF THE PROPOSALS RECEIVED,
PURSUANT TO INVITATION TO NEGOTIATE NO. 2015-081-LR (THE ITN), FOR
INVESTMENT ADVISORY SERVICES; AND FURTHER AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT UPON CONCLUSION
OF SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
FUNDING
The fees for the Investment Advisors are an offset of the interest earnings on the
investments. Below are the funds that the fees are charged to. The object codes is xxx-8000-
361110
General Fund: 011
General Obligation Bonds Funds: 382/383/384
Storm Water Series 2011 Bond Fund: 431
Water& Sewer Bonds Series 2000: 424
Water & Sewer Bonds Series 2006: 423
Water& Sewer Bonds Series 2009: 420
Parking Bonds Series 2010: 486
South Pointe Fund: 379
RDA City Center Fund: 365
BACKGROUND
The City requires the services of an investment advisor to manage and recommend the City's
investments. The investment advisor is to provide advice on the investment of excess funds
in accordance with the City's investment objectives as set forth in City of Miami Beach's
Investment Policy. The key objectives of the City's investment policy are safety of capital,
sufficient liquidity to meet requirements and attaining market—average rates of return. Excess
funds are defined as funds not required to meeting short term expenditures of the City.
Currently, funds available for investment consist of approximately $522 million which include:
$346 million from operating funds, $103 million from various bond proceeds, and $73 million
from the Miami Beach Redevelopment Agency (RDA).
Commission Memorandum—ITN 2015-081-LR Investment Advisory Services
June 10, 2015
Page 2
The City expects its investment advisor to be highly experienced, a leader and innovator in
the management of investments, and able to provide comprehensive investment advisory
services. The firm selected as the investment advisor and its affiliates will be restricted from
selling to the City, or buying from the City, any securities to or from that firm's own inventory
or account. The investment advisor will also be restricted from placing into the City's portfolio
any securities for which it, or an affiliate, is the issuer. Investment advisors will not provide
custodial services or security safekeeping. All City investments, except for swap agreements
must be held in an independent custodial account.
RFP PROCESS
On November 19, 2014, the City Commission authorized the issuance of an Invitation to
Negotiate (ITN) for Investment Advisory Services. The Administration issued ITN 2015-081-
LR to seek proposals from parties interested in providing the City with non-discretionary
investment advisory services to make recommendations for the City's investments in
accordance with the City's investment policy. The ITN was released on February 20, 2015. A
pre-proposal conference to provide information to the proposers submitting a response was
held on March 2, 2015. On March 19, 2015, the City received proposals from: Chandler Asset
Management, Inc.; Davidson Fixed Income Management, Inc.; First Southwest Asset
Management, LLC; PFM Asset Management LLC; and Public Trust Advisors, LLC.
On April 14, 2015, the City Manager appointed an Evaluation Committee (the "Committee")
consisting of the following individuals:
• Jim Goldsmith, Resident
• Sanford Horowitz, Certified Public Accountant
• Julie Santamaria, RBC Capital Markets, Financial Advisor
• Allison Williams, City of Miami Beach, Chief Accountant
• John Woodruff, City of Miami Beach, Office of Budget and Performance Initiatives
The Committee convened on May 22, 2015 to consider the proposals received. Due to
scheduled vacation, Mr. Sanford Horowitz was unable to attend. The Committee was provided
an overview of the project, information relative to the City's Cone of Silence Ordinance and the
a o p � ,
Government in the Sunshine Law. The Committee was also provided general information on
the scope of services, references, and a copy of each proposal. The Committee was
instructed to score and rank the proposal pursuant to the evaluation criteria established in the
ITN.
The evaluation process resulted in the following:
Commission Memorandum—ITN 2015-081-LR Investment Advisory Services
June 10, 2015
Page 3
w
a
� O
re
E � S_o
ITN 2015-081-LR INVESTMENT ADVISORY 0 Y Y o Y c Y 3
SERVICES 5 m `� cca o m O O
72 4 72 4 76 4. 72 5 17 4
Chandler Asset Management
69 5 54 5 75 5 74 3 18 5
Davidson Fixed Income Management,Inc.
83 3 75 3 79 3 73 4 13 3
FirstSouthw est Asset Management
r
84 2 82 2 81 2 87 2 8 2
FFM Asset Management,LLC
98 1 100 1 95 1 95 1 4 1
Public Trust Advisors,LLC
A brief summary of the firms and their proposal is provided below for informational purposes.
The Public Trust Advisors, LLC (Public Trust) was established in 2011, but its team has a
long history of service to the City of Miami Beach as investment advisors and fiduciary for the
City's investment program from 2003 to 2012. Public Trust currently manages more than $9.3
billion in short term funds for more than 1,500 participants within their local government
investment pools and several separately managed accounts. Public Trust is an independent
manager registered with the Securities and Exchange Commission. Public Trust does not
receive any economic benefit, directly or indirectly from any third party for advice rendered to
its clients.
In addition to reducing the fees (basis points per thousand) compared to the City's prior
contract, Public Trust Advisors, LLC, has proposed to pay the City's custodial charges, as well
as the cost of all arbitrage audits. Based on the City's current amount of investments, this will
save the City in excess of $100,000. As the amount of the City's portfolio grows, with
significant financing for the Convention Center, the costs for the custody services and
arbitrage audits will also grow and be paid by Public Trust Advisors, LLC.
MANAGER'S DUE DILIGENCE & RECOMMENDATION
After reviewing the submission and the Evaluation Committee's rankings of proposals
received, the City Manager recommends that the Mayor and the City Commission, pursuant to
Invitation to Negotiate (ITN) No. 20.15-081-LR, for Investment Advisory Services, authorize the
Administration to enter into negotiations with the top ranked proposer, Public Trust Advisors,
LLC. In the event that the Administration is unable to negotiate a mutually agreeable
agreement with Public Trust Advisors, LLC, the City Manager recommends that the Mayor and
City Commission authorize the Administration to negotiate with other firms, in order of rank.
Further, the City Manager recommends the Mayor and City Clerk be authorized to execute an
Agreement upon conclusion of successful negotiations by the Administration.
Commission Memorandum—ITN 2015-081-LR Investment Advisory Services
June 10, 2015
Page 4
CONCLUSION
The Administration recommends that the Mayor and the City Commission, approve the
resolution accepting the recommendation of the City Manager, pursuant to Invitation to
Negotiate (ITN) No. 2015-081-LR, for Investment Advisory Services.
JLM /MT/ PDW/AD
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