2003-25270 ResoRESOLUTION NO. 2003-25270
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
AUTHORIZING THE ADMINISTRATION TO ISSUE A REQUEST
FOR PROPOSAL (RFP) FOR INVESTMENT ADVISORY SERVICES,
FOR A THREE-YEAR PERIOD WITH TWO ONE-YEAR RENEWAL
OPTIONS.
WHEREAS, the City is seeking competitive pricing for investment advisory services
to manage and direct the City's investments in accordance with the City's investment
objectives as set forth in the City of Miami Beach Investment Policy; and
WHEREAS, the City's key objectives are safety of capital, sufficient liquidity to meet
requirements and attaining market-average rates of returns; and
WHEREAS, the Investment Advisor will provide full-time management of the City's
investments on a daily basis, placing all orders for the purchase and sale of securities; and
WHEREAS, the Investment Advisor will provide monthly reports detailing investment
activity, earnings, value of the portfolio investment, portfolio return, and mark to market
valuation; and
WHEREAS, arbitrage calculations and reports on the investment of bond proceeds
will be provided by the Investment Advisor as required by the City; and
WHEREAS, the issuance of the RFP will allow the City to move forward with the
selection of a firm to provide investment advisory services for a three-year period, with two
one year renewal options; and
NOW, THEREFORE, BE IT DULY RESOLVED BYTHE MAYORANDCITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Miami Beach City
Commission approve the issuance of a Request for Proposal (RFP) for investment
advisory services, for a three-year period with two one-year renewal options,
PASSED and ADOPTED this
ATTEST:
CITY CLERK
July ,2003.
FORM & LANGUAGE
& FOR EXECUTION
City ~ttomey/'~'- Date
CITY OF MIAMI BI~ACH
COMMISSION ITEM SUMMARY
Condensed Title:
issue a Request for Proposal (RFP) for investment advisory services.
Issue:
Whether to authorize the issuance of a Request for Proposal (RFP) for Investment Advisory services~.
Item Summary/Recommendation:
IScope of services includes providing full-time management, on a daily bas s, of the City's investment
portfolio, placing all orders for the purchase and sale of securities, providing monthly statements and
providing arbitrage calculations and reports on the on the investment of bond proceeds.
Recommendation: Authorization to issue a Request for Proposal (RFP).
Advisory Board Recommendation:
On July 16, 2003, the Finance and City-Wide Projects Committee directed the Administration to prepare a
Request for Proposals (RFP) as a competitive process for obtaining an ongoing Investment Advisory
service.
Financial Information:
Amount to be expended: The fee for these services would be paid from additional investment
earnings.
Source of Amount Account Approved
Funds:
Fin ept. Total
City Clerk's Office Legislative Tracking:
Sign-Offs: ~
D,~p/artment Direc~ I ~ss~stant City Manager
City Manager
OAT
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miamibeachfl.gov
COMMISSION MEMORANDUM
To:
From:
Subject:
Mayor David Dermer and
Members of the City Commission
Jorge M. Gonzalez
City Manager
Date: July 30, 2003
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
AUTHORIZING THE ADMINISTRATION TO ISSUE A REQUEST FOR
PROPOSAL (RFP) FOR INVESTMENT ADVISORY SERVICES, FOR A
THREE-YEAR PERIOD WITH TWO ONE-YEAR RENEWAL OPTIONS.
ADMINISTRATION RECOMMENDATION:
Approve the issuance of the RFP.
ANALYSIS
The City is seeking proposals from firms interested in providing investment advisory
services to manage and direct the City's investments. This firm would manage and direct
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 $151 million from operating funds, $44 million from various bond
proceeds, and $20 million from the Miami Beach Redevelopment Agency.
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.
Fees for such services are competitive and would be paid from additional investment
earnings.
Minimum Requirements:
The following are minimum requirements to be met by the Proposer in order to be
considered:
· Have a minimum of ten (10) years of experience in managing fixed income assets for
state and local governments.
· Currently manage at least $10 billion of domestic fixed income assets.
· Assign an account manager to the City with a minimum of ten (10) years experience in
investment advisory.
· Be familiar with all applicable Florida Statutes with regard to qualified investments for
public entities.
· Display an understanding of related issues and constraints of the arbitrage regulations
and laws,
· Be financially solvent and appropriately capitalized to be able to service the City for the
duration of the contract.
SCOPE OF SERVICES
Provide full-time management on a daily basis of the City's investment portfolio pursuant to
the specific stated investment objectives and the City's Investment Policy. Place all orders
for the purchase and sale of securities, communicate settlement information to City staff
and assist in coordinating security settlement.
Serve as a general resource to City staff for information, advice and training regarding fixed
income securities, investment and yield curve analysis.
Work with City staff to develop cash flow projections to ensure that the investment strategy
is consistent with the City's cash requirements.
Provide monthly statements detailing investment activity, earnings, the value of the
investment portfolio, a portfolio return, mark to market valuation, and weighted average
maturity. The selected investment advisor must maintain accurate reports including
portfolio composition showing diversity of investments and compliance with applicable
investment policies of the City of Miami Beach and State of Florida Statutes.
Develop and implement investment strategies for the Advisory Account that will seek to
enhance portfolio performance under current a nd future market conditions within t he
parameters of the City's investment policy and cash flow needs.
Obtain and document competitive prices for securities transactions.
Provide semi-annual and annual portfolio performance reports.
Review and update the City's investment policy and written investment procedures.
Perform due diligence reviews of current and proposed broker/dealers.
Monitor the creditworthiness of the City's depository and custodian bank and investments
in the portfolio.
Provide client training on investment management subjects.
Attend meetings with the City's finance staff and governing body upon request.
Provide arbitrage calculations and reports on the investment of bond proceeds.
The Evaluation Committee shall base its recommendation on the following factors:
Factors: Weight
1. The firm's overall experience, qualifications, and technical ability 20%
2. The firm's experience in managing fixed income assets for state and 20%
local governments
3. Performance of managed portfolios that closely match the City's 20%
portfolio in size and governed by similar investment policies
4. Demonstrate the ability to meet objectives outlined in Section II 20%
of the RFP (Scope of Services)
5. Accessibility, availability and professional qualifications of the 20%
individuals who would be assigned to manage the City's portfolio
JMG:PDW:rd
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