Resolution 2024-32909 RESOLUTION NO. 2024-32909
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)
2023-543-WG FOR CUSTODIAL BANKING SERVICES, AUTHORIZING THE
ADMINISTRATION TO NEGOTIATE WITH FIDUCIARY TRUST
INTERNATIONAL,THE TOP-RANKED PROPOSER;AND, IF UNSUCCESSFUL
IN NEGOTIATING AN AGREEMENT WITH THE TOP-RANKED PROPOSER,
AUTHORIZING THE ADMINISTRATION TO NEGOTIATE WITH PNC BANK,
N.A., THE SECOND-RANKED PROPOSER; AND FURTHER, AUTHORIZING
THE CITY MANAGER AND CITY CLERK TO EXECUTE AN AGREEMENT
UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS.
WHEREAS, on September 13, 2023, the Mayor and City Commission approved the
issuance of an RFQ for Custodial Banking Services; and
WHEREAS, on September 133, 2023, RFQ 2023-543-WG was issued; and
WHEREAS, on October 26, 2023, the City received proposals from the following two (2)
firms:
• Fiduciary Trusty International
• PNC Bank N.A.; and
WHEREAS, on January 4, 2024, the Evaluation Committee comprised of Richard Ajami,
Budget Officer, Office of Management and Budget; Gretel Ferrer, Accounting Manager, Finance
Department; Manny Marquez, Assistant Director, Finance Department; and Sara Patino,
Treasury Manager, Finance Department, convened to consider proposals; and
WHEREAS, the Committee was provided an overview of the project, information relative
to the City's Cone of Silence Ordinance, the Government Sunshine Law, 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 ranked—Fiduciary Trust International
2nd ranked— PNC Bank N.A.
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 accept the recommendation of the City Manager, pursuant to Request for
Qualifications (RFQ) 2023-543-WG for Custodial Banking Services, authorize the Administration
to negotiate with Fiduciary Trust International, the top-ranked proposer; and, if unsuccessful in
negotiating an agreement with the top-ranked proposer, authorize the Administration to negotiate
with PNC Bank, N.A., the second-ranked proposer; and further, authorize the City Manager and
City Clerk to execute an agreement upon conclusion of successful negotiations.
PASSED AND ADOPTED this a day of "147 2024.
ATTEST:
FIB 2 3 2024 • ,
RAFAEL E. GRANADO, CITY CLERK STEVEN MEINER, MAYOR
"`tttt, APPROVED AS TO
FORM&LANGUAGE
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Cyl�, &FOR EXECUTION
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% to, For City Attorney Date
Competitive Bid Reports-C2 A
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: February 21, 2024
SUBJECT: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) 2023-543-WG FOR CUSTODIAL BANKING SERVICES,
AUTHORIZING THE ADMINISTRATION TO NEGOTIATE WITH FIDUCIARY
TRUST INTERNATIONAL, THE TOP-RANKED PROPOSER; AND, IF
UNSUCCESSFUL,AUTHORIZING THE ADMINISTRATION TO NEGOTIATE
WITH PNC BANK, N.A., THE SECOND-RANKED PROPOSER; FURTHER,
AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE AN
AGREEMENT UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS.
RECOMMENDATION
It is recommended that the Mayor and City Commission of the City of Miami Beach, Florida,
approve the Resolution accepting the City Manager's recommendation, pursuant to Request for
Qualifications (RFQ) 2023-543-WG for custodial banking services, to negotiate with Fiduciary
Trust International, the top-ranked proposer. If negotiations with Fiduciary Trust International are
not successful, the Resolution authorizes the Administration to negotiate with PNC Bank, N.A.,
the second-ranked proposer. Finally, the Resolution authorizes the City Manager and City Clerk
to execute an agreement upon the conclusion of successful negotiations by the Administration.
This solicitation is currently under the cone of silence.
BACKGROUND/HISTORY
In accordance with the City's investment policy, long-term city investments with a term of five or
more years are to be maintained in a custodial account at a financial institution that qualified to
provide custodial services. Unlike investment banks, that are focused on wealth creation and
portfolio management, the role of custodian banks is asset protection, compliance, and
administration of its clients assets or investments.
On July 1, 1998, pursuant to Resolution 98-22801, the Mayor and City Commission authorized
the execution of an agreement with Fiduciary Trust International for custodial banking services
of its investment accounts.
The City currently has a contract with Fiduciary Trust International. In order to consider
Page 25 of 1278
proposals for a replacement contract, the Administration prepared RFQ 2023-543-WG for
custodial banking services.
ANALYSIS
On September 13, 2023, the Mayor and City Commission approved the issuance of RFQ
2023-543-WG. On September 13, 2023, the RFQ was issued. The Procurement Department
issued bid notices to 2,949 companies utilizing the City's e-procurement system, with 41
prospective bidders accessing the solicitation. RFQ responses were due and received on
October 26, 2023. The City received proposals from Fiduciary Trusty International and PNC
Bank N.A.
On January 4, 2024, the Evaluation Committee appointed by the City Manager convened to
consider the responsive proposals received.The Committee was comprised of Richard Ajami,
Budget Officer, Office of Management and Budget; Gretel Ferrer, Accounting Manager,
Finance Department; Manny Marquez, Assistant Director, Finance Department; and Sara
Patin, Treasury Manager, Finance Department. The Committee was provided an overview of
the project, and 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 proposers being ranked by the Evaluation Committee in
the following order(See Attachment A):
1st ranked— Fiduciary Trust International
2nd ranked— PNC Bank N.A.
After reviewing the proposals and the results of the evaluation committee, which resulted in
Fiduciary Trust International being unanimously ranked as best qualified, it is recommended that
the Administration negotiate first with Fiduciary Trust International. While both of the proposing
firms have sufficient experience to provide services for the City of Miami Beach, Fiduciary Trust
International provides a unique familiarity with the City's present financial and fiduciary needs.
The firm has assisted not only the City of Miami Beach Finance Department with custodial
banking services but also provided services to components of the City, including the City's
General Employee Retirement and Miami Beach Fire and Police Pension plans. •
Fiduciary Trust International's tenure with the City has created unique opportunities and
capabilities amplified based on its history with the City. For example, the firm has identified
trends and patterns, as well as anomalies and risks, to City's investment. Together these
capabilities have resulted in the maximization of returns and increased safety of the City
assets.
Historically, Fiduciary Trust International has been able to advise the City on the latest market
development for fiduciaries and customers and has been able to advise the City on new
methodologies, tools and techniques to address the risks, as well as educate the City on best
stratagems and protocols to mitigate concerns including the challenges of new Al technologies
and increased fraud factors for governmental institutions. The firm's knowledge of the City's
partners including financial institutions and investment advisors, permit seamless
implementations of new security protocols while providing additional points of contacts to
encourage greater safety parameters.
Page 26 of 1278
Fiduciary Trust International has a long-standing relationship and familiarity with the City's
investment advisors, which fosters a more collaborative relationship around the City's monetary
assets, resulting in significant benefits to the City, most notably allowing the City to maximize
product options not easily implemented for other.customers.
Fiduciary Trust International has a strong emphasis on internal control policies and procedures
to ensure the safety of customer assets. Unlike a significant number of other fiduciary services
institutions, fiduciary services are its primary business, and this has permitted the firm to narrow
its focus on assets security, maximize expertise in fiduciary services, and assertively develop its
business model to adapt to an ever-changing, risky financial environments.
The following is a summary of both firms.
Fiduciary Trust International
Fiduciary Trust International is a qualified custodian and chartered Trust Company and has been
safekeeping client assets for more than 91 years. In addition to serving as custodian for
investment management and trust clients, their custody business is a strategic part of the firm
that also provides standalone custody solutions. Today, the firm serves as a custodian for public
pension plans, municipalities, government agencies, foundations, endowments and others.
Fiduciary Trust International offers a unique, highly personalized service model and solutions-
based approach that alleviates the administrative burden faced by individuals, families, and
institutions.
The firm has local offices in Coral Gables, St. Petersburg, Palm Beach, and Boca Raton, as
well as offices in New York, Virginia, Georgia, California, Massachusetts, Pennsylvania, the
District of Columbia, and Delaware. The City of Miami Beach would be serviced from the fimn's
Coral Gables Office located at 2 Alhambra Plaza, PH-1A, Coral Gables, FL 33134. Some of
their local custodial banking clients include the City of Hollywood and the City of Miramar.
PNC Bank N.A.
For more than 170 years, PNC has been committed to providing its clients with great service
and powerful financial expertise to help them meet their financial goals. PNC is proud of its
longstanding history of supporting customers and their communities, employees, and
shareholders.
PNC offers strategic insight and financial solutions for businesses, organizations, municipalities,
and nonprofits throughout the U.S. and internationally.
PNC remains committed to serving custody clients by forging long-lasting relationships and
continually enhancing solutions. This mission has been at the forefront of the firm's custody
solution for over 75 years. As of June 30, 2023, 1,284 clients with $136 billion in assets under
administration benefit from their custody services. The City of Miami Beach's custody team can
share insights gathered from working with similar clients nationwide.
Some of their local clients include the Miami Beach Community Health Center, Inc., and the
Town of Highland Beach, Florida.
SUPPORTING SURVEY DATA
Page 27 of 1278
Not Applicable
FINANCIAL INFORMATION
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.
CONCLUSION
Based on the foregoing, it is recommended that the Mayor and City Commission approve the
Resolution authorizing the Administration to enter into negotiations with Fiduciary Trust
International, as the top-ranked proposer and, if unsuccessful, authorizing negotiations with PNC
Bank N.A., the second-ranked proposer; further authorizing the City Manager and City Clerk to
execute an agreement upon the conclusion of successful negotiations by the Administration.
LOBBYIST DISCLOSURE
In accordance with Resolution No. 2023-32857, adopted by the City Commission on
December 13, 2023, the following information has been provided by the Administration.
1. Was the Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481,
includes a principal engaged in lobbying? No
2. If so, specify name of lobbyist(s)and principal(s): 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 Tracking
Finance/Procurement
ATTACHMENTS:
Description
o Attachment A
Page 28 of 1278
I
RFQ 2023-543•WG Custodial w w
Richard Ajami Y Grate!Ferrer Manny Marquez Y Sara Patino Y Low
Banking Services c c e c A99n9+t e
ai i ;ag , Totals g
Qualitative Quantitative Subtotal Qualitative Quantitative Subtotal uuamanv Quantitative Subtotal _Qualitative Quantitative Subtotal •:;
Fiduciary Trust International 90 _ 0 90 1 100 0 100 1 97 0 97 1 100 0 100 1 R 4 1
PNC Bank,N.A. 80 0 80 _2 90 0 90 2 88 0 88 2 90 0 90 2 a 8 2
, 7111?"lilfat"l M;l!u a4. E4.810;i> .^.'8 ,l0Ik,i1Srhn'll' i4;E,Gtk 'Y ,.Aw
Total
Veteran's Quantitative
Proposer Points (Veteran's)
Fiduciary Trust International 0 0
PNC Bank,N.A. 0 0
FOR DISPLAY PURPOSES ONLY.FINAL RANKING DOES NOT
CONSTITUTE AN AWARD RECOMMENDATION.
PA?ad❑1!