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HomeMy WebLinkAbout2009 01 12 Regular 606 RFP Financial Advisory ServicesCOMMISSION AGENDA ITEM 606 January 12, 2009 Regular Meeting Consent Informational Public Hearin Re ular X MGR. ~~'~ /DEPT. Authorization REQUEST: Requesting the City Commission review the results of the Request for Proposals for Financial Advisory Services and provide direction for proceeding as deemed appropriate. PURPOSE: This agenda item is needed for the City Commission to review the results of the Request for Proposals for Financial Advisory Services and provide direction for proceeding as deemed appropriate. CONSIDERATIONS: On October 20, 2008 the Commission approved the issuance of an RFP for investment Advisory Services for the City's surplus operating funds. That RFP was subsequently issued and has now closed. The City received five (5) responses from the following firms: MBIA Asset Management 301 East Pine Street, Suite 150 Orlando, Fl 32801 Eagle Asset Management 880 Carillon Parkway St Petersburg, FL 33716 The Bogdahn Group 340 West Central Avenue Suite 300 Winter Haven, FL 33880 PFM Asset Management 300 South Orange Avenue Suite 1170 Orlando, FI 32708 First Southwest Asset Management 300 West Sixth Street, Suite 1940 Austin, TX 78701 Staff has reviewed and evaluated the submittals, in accordance with the evaluation criteria and provisions of the RFP, and ranked the five (5) firms as follows: Staff Ranltin~ Firm 1 PFM Asset Management 2 First Southwest Asset Management 3 The Bogdahn Group 4 MBIA Asset Management 5 Eagle Asset Management At this point, the Commission has four (4) options for proceeding with the selection of a Financial Advisor as follows: 1. Accept the firm ranked #1 by staff (PFM Asset Management) and authorize the City Manager and City Attorney to prepare and execute a contract for services with PFM Asset Management. 2. Select a different firm (than PFM) and authorize the City Manager and City Attorney to prepare and execute a contract for services with that firm. 3. Select 2 or more of the 5 firms and schedule interviews/presentations from these firms in front of the Commission at a Special Meeting. Then, upon conclusion of the presentations, proceed with a selection and authorize the City Manager and City Attorney to prepare and execute a contract for services with the selected firm. 4. Refer the process to the Board of Trustees for an advisory opinion which would come back to the Commission for approval. FUNDING: Proposed fees for services are as follows: FIRM PROPOSED ANNUAL FEE PFM Asset Mana ement $17,500 First Southwest Asset Management 12bp x (ls` $100M), 6bp x (next $100M), 3bp x (thereafter) ($40,000 minimum) For Ci o WS = A rox. $40, 000 (minimum a lies) The Bo dahn Grou $25,000 MBIA Asset Management l Obp x (1 S` $ l OM), 8bp x (next $15M), 7bp x (thereafter) For City o WS = A rox. $22, 000 Eagle Asset Management 30bp x (1 S` $ l OM), 25bp x (next $40M), 20bp x (thereafter) For Ci o WS = A rox. $67, 500 RECOMMENDATION: The City Manager recommends the City Commission choose from one of the following four (4) options: 1. Accept the firm ranked # 1 by staff (PFM Asset Management) and authorize the City Manager and City Attorney to prepare and execute a contract for services with PFM Asset Management. 2. Select a different firm and authorize the City Manager and City Attorney to prepare and execute a contract for services with that firm. 3. Select 2 or more of the 5 firms and schedule interviews/presentations from these firms in front of the Commission at a Special Meeting. Then, upon conclusion of the presentations, proceed with a selection and authorize the City Manager and City Attorney to prepare and execute a contract for services with the selected firm. 4. Refer the process to the Board of Trustees for an advisory opinion which would come back to the Commission for approval. ATTACHMENTS: Firm proposals previously transmitted. COMMISSION ACTION: