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: