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HomeMy WebLinkAbout2006 02 27 Consent 401 Results of RFP COMMISSION AGENDA Februarv 27, 2006 Regular Meeting Consent X MGR/DEPT. Authorization ITEM 401 REQUEST: City Manager requesting the City Commission to authorize the City Manager to issue an RFP for procurement of on-going 3rd party pension advisory services to the City of Winter Springs Defined Benefit Pension Plan and bring back the results of the RFP to the Commission for selection. PURPOSE: To obtain Commission authorization for the City Manager to issue an RFP for procurement of on-going 3rd party pension advisory services to the City of Winter Springs Defined Benefit Pension Plan and bring back the results of the RFP to the Commission for selection. CONSIDERATIONS: On January 31, 2006 the Board of Trustees voted to recommend the City Commission approve the issuance of an RFP for the procurement of on-going 3rd party pension advisory services. This pension advisor would be charged with task-specific duties including evaluation of and recommendations regarding investment objectives, asset allocation and investment policies as well as evaluation of asset managers and total fund performance. FUNDING: Funding would come from the Pension Fund. RECOMMENDATION: The City Manager recommends the Commission take the following action: Authorize the City Manager to issue an RFP to procure the services of a 3rd party pension advisor and bring back the results of the RFP to the Commission for selection. ATTACHMENTS: 1. RFP - 3rd Party Pension Advisory Services. COMMISSION ACTION: City of Winter Springs, Florida REQUEST FOR PROPOSALS: RFP # 005/06/KS for Third Party Pension Advisory Services for The City of Winter Springs Defined Benefit Pension Plan Issued: , 2006 1 REQEST FOR PROPOSALS RFP #005/06/KS City of Winter Springs, Florida Third Party Pension Advisory Services for The City of Winter Springs Defined Benefit Pension Plan TABLE OF CONTENTS I. Introduction_____1 II. Services Requested ______1 III.General Information_____2 IV. Manager Searches_____2 V.Performance Measurement_____2 VI. Accounting and Reporting _____ 2 VII. Advisory Relationships_____ 3 VIII. Pricing_____ 3 IX. General Instructions_____ 3 REQEST FOR PROPOSALS RFP #005/06/KS City of Winter Springs, Florida Third Party Pension Advisory Services for The City of Winter Springs Defined Benefit Pension Plan I. Introduction The City of Winter Springs, Florida (the "City") was originally incorporated in 1959 under the name of the Village of North Orlando and became the City of Winter Springs in 1972. The City is located in Central Florida in Southern Seminole County. The City's estimated 2005 population is 33,321. The City is served by a Commission - Manager form of government consisting of a Mayor, five Commissioners and a City Manager. The Mayor and Commissioners are elected to four year terms. The Mayor votes on matters before the City Commission only in case of a tie. The City Manager is appointed by the City Commission. After six months of service, employees working more than 29 hours per week are eligible to participate in the City's Defined Benefit Pension Plan (the "Plan"). The City's workforce totals approximately 273. There are approximately 239 active, 12 retired and 71 terminated with vesting participants in the plan. Each employee currently contributes 3% of his /her compensation to the fund with the City currently contributing 9.5% of each employee's compensation. As of December 31, 2005, the Plan assets totaled approximately $11,811,048 and is currently managed by SunTrust Bank in Orlando. II. Services Requested The City wishes to retain a Pension Consultant to provide Third Party Pension Advisory and Reporting Services. The services shall include but are not limited to: 1. Evaluate and make recommendations regarding investment objectives, asset allocation and investment policies. 2. Written quarterly and annual performance evaluations of asset managers as well as total fund performance. 3. Asset allocation studies and recommendations as requested. 4. Attendance at Retirement Board meetings, quarterly and as requested. 5. Investment manager, custodian and commission recapture search and selection services, as needed. 1 III. General Information 1. Company profile including name of institution and address. Please include information concerning staff turnover rates. 2. Do you have any physical locations in Florida? 3. Have there been any NASD or SEC investigations of your firm that resulted in admonishment or other penalties? 4. How many investment managers has your firm discharged or recommended the discharge of during the past five years? When and under what circumstances would you recommend the termination of a manager? 5. State what you believe distinguishes your consulting firm from your competitors. 6. Describe your investment consulting philosophy. IV. Manager Searches 1. Describe your management search process. Include statistics on the size and scope of your manager database. Provide examples within the last two years if available. 2. Describe in detail any circumstances under which your firm receives fees or other compensation from investment managers. V. Performance Measurement 1. What methodology is used to compute individual manager returns? 2. How are total fund and asset class numbers calculated? 3. Describe in detail the performance measurement attribution and analysis services you provide. Provide a sample of your report customization capabilities. 4. Describe your process of reviewing investment manager compliance with the plan's investment objectives and guidelines. VI. Accounting and Reporting 1. Please provide a sample quarterly and annual report for a public sector retirement fund. Include any special reports/exhibits. List and discuss the purpose, frequency, and timing of any additional reports provided through your advisory services. Include samples of all standard and any customized. 2 2. How soon are performance reports available after the end of the quarter? 3. Is system software or firmware proprietary or licensed? If licensed, from whom? What is the expiration date of this license? VII. Advisory Relationships 1. Please provide name, asset size, contact person, and phone number of three existing clients we may contact as references. From subdivisions, or other public sector plans. 2. Largest, smallest and median account size for all public plans. 3. Name, brief biography including tenure with firm, and description of other accounts handled by person who would be responsible for management of this account relationship. VIII. Pricing 1. Clearly and precisely provide a complete fee quotation inclusive of anyone time, extraordinary, or special charges based upon specifications contained in the RFP. 2. Additionally, provide a fee quotation for providing performance monitoring and reporting only, and list separately the cost of performing an asset manager search, custodian search, asset allocation study, investment policy review with revisions and commission recapture search. 3. Itemize and describe and other services (including fees) you provide that you feel may be of benefit to the City. IX. General Instructions A. Issuing Office This request for proposals is being issued by the City of Winter Springs. Unless otherwise specified, the City's General Services Department is the sole point of contact for the purposes of the RFP and subsequent responses shall be in writing. B. Addendum to RFP The City reserves the right to amend the RFP prior to the due date of responses. If it becomes necessary to revise any part of the RFP, an addendum shall be provided to all offerors who have been sent a copy of this RFP. All offerors shall include acknowledgment of all addenda as part of this proposal. Failure to acknowledge addenda may be grounds for disqualification of the proposal. 3 C. Cost of Preparing Proposal The cost of developing and submitting the proposal is entirely the responsibility of the offeror. This includes costs to determine the nature of this engagement, preparation of proposal, submission of proposal, negotiation for the contract, and all other costs associated with this RFP and responses thereto. All responses will become the property of the City and may be a matter of public record subsequent to award of the contract or rejection of all proposals. E. Submissions of ProposalslDue Date Five (5) copies of each offeror's proposal(s) shall be submitted in a sealed package marked "THIRD PARTY PENSION ADVISORY SERVICES PROPOSAL" to the Office of the City Clerk, City of Winter Springs, 1126 East SR 434, Winter Springs, FL 32708 no later than 3:00 p.m., prevailing time, on April 5, 2006. The City will in no way be responsible for delays caused by the United States Post Office or a delay caused by other occurrence. F. Awards Awards will be made by the City consistent with the Purchasing Policy and based upon the best potential interest of the City and the Plan. The City reserves the right to reject any or all responses to the RFP, for whatever reason deemed by it to be appropriate, and shall not be obligated to return any material in connection with this request. G. Independent Price Determination A proposal will not be considered for award if the fees were not arrived at independently and without collusion, communication or agreement as to any matter related to such prices with any other vendor, competitor or public officer. The vendor must include a certified statement in the proposal transmittal letter certifying that the price was arrived at without any conflict of interest. H. Preparation Responses should provide a straightforward, concise description of offeror's capabilities to satisfy the requirements of this RFP. Emphasis should be on completeness and clarity of content. Repetition of the terms and conditions of the RFP, without additional explanation, will not be considered sufficiently responSIve. I. Errors in Proposal Preparation The City has the right to rely on any price quotes provided by offerors. The offerors may be responsible for any mathematical error or incorrect extension of 4 any calculations leading to the offeror's price quotes. The City reserves the right to reject proposals, which contain errors. J. Evaluation of Proposals All proposals submitted in response to the RFP will be evaluated by the City, with consideration focused toward, but not limited to, the following: 1. Firm's qualifications and experience to provide the required service as defined in the RFP. 2. Personnel qualifications to provide the required services as defined in the RFP. 3. Cost of services, including projected hours for each project specified in the proposal. 4. Firm's understanding ofthe City Pension Plan. 5. Compliance with the terms, conditions and other provisions of the RFP. 6. Adequacy and completeness of the proposal with regard to the information specified in the RFP. K. Appearance Before City Committees Any or all offerors may be required to appear before one or more City Committee(s) to explain the offeror's understanding and approach to the project and/or respond to any questions in regard to the proposal submitted. The project manager shall make any requested oral presentations before the City Committee(s). L. Conflicts of Interest In order to avoid the appearance of potential conflicts of interest, the successful offeror may be required to exclude from consideration and selection asset managers from or representing the offeror's firm and/or its subsidiaries. M. Payments Payments to successful offeror(s) shall be contingent upon negotiation of fees and acceptance of the proposal and will be made in accordance with mutually agreeable terms by the City. 5