HomeMy WebLinkAbout2006 05 24 Regular 300 3rd Party Pension Advisory Services
BOARD OF TRUSTEES AGENDA
Mav 24, 2006
Special Meeting
Consent
Informational
Public Hearin
Re ular X
MGR.~P~
Authorization
ITEM 300
REQUEST:
Requesting the Board of Trustees receive presentations from the two firms
responding to City's RFP for procurement of on-going 3rd party pension
advisory services to the City of Winter Springs Defined Benefit Pension Plan.
PURPOSE:
For the Board of Trustees to receive presentations from the two firms responding
to City's RFP for procurement of on-going 3rd party pension advisory services to
the City of Winter Springs Defined Benefit Pension Plan.
CONSIDERATIONS:
On April 25, 2006 the Board of Trustees voted to schedule a special meeting in May to receive
presentations from the firms responding to City of Winter Springs RFP # 005/06/KS. The two
firms are:
Burgess, Chambers & Associates, Inc.
601 N New York Ave., Suite 200
Winter Park, FL 32789
Bogdahn Consulting, LLC
340 West Central Ave., Suite 300
Winter Haven, FL 33880
This special meeting to receive presentations from these two firms has been scheduled for May
24,2006 at 6:30 pm. Burgess, Chambers and Associates will present at 6:30 following by
Bogdahn Consulting at 7:30.
In accordance with Section X. (9) of the RFP, the following criteria should be considered in your
evaluation:
9. 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:
A. Firm's qualifications and experience to provide the required service as defined in the
RFP.
B. Personnel qualifications to provide the required services as defined in the RFP.
C. Cost of services, including projected hours for each project specified in the proposal.
D. Firm's understanding of the City Pension Plan.
E. Compliance with the terms, conditions and other provisions of the RFP.
F. Adequacy and completeness of the proposal with regard to the information specified
in the RFP.
The Board may also consider other relevant factors it considers pertinent to the selection
of the Pension Fund Advisor.
Following the presentations, the City's Financial Advisor, Steven Alexander with Public
Financial Management, will provide the Board with his analysis of the RFP submittals
and his recommendation.
FUNDING:
Funding for these services, when approved, would come from the Pension Fund.
RECOMMENDATION:
Staff recommends the Board receive presentations from the two firms responding to the RFP and
then either:
1. Select one of the two firms for recommendation to the City Commission for final
consideration and potential award.
2. Recommend to the City Commission to reject all bids and re-bid.
ATTACHMENTS:
1. RFP # 005/06/KS for Third Party Pension Advisory Services for the City of Winter Springs
Defined Benefit Pension Plan.
BOARD 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
City of Winter Springs, Florida
1126 East SR 434
Winter Springs, FL 32708
407-327-1800
REQUEST 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
T ABLE OF CONTENTS
I. Introduction.......... __u _. _ _ _ _ _ _ _ u.u _ _ _ _ _ _u_u _ _ _ _ _ _ _ _ _ _ _ _uu u _ _ _ _ _. _. _.... _... .__.. _... "u_ _. _. _ _u _ _ _ _ _ u_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ I
II. Background. ............ ........ ........................ ........................... _... 'u_ _ _ _ _ uu_ _ _ u_u _ _ _ uuu_ _ _ _ _ _ _. _ _ _ __I
III. Services Requested _ _ _ _ _ uu _ _ _ _ _ _ _ u uu _ _ _ _ _. _ _ u uuu_ _. _ _ _. _ _............... ....................... __u. _ _ _ _uuuuuu 2
IV.
General Information
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V. Manager Searches_. .._. _..................... ................. ..................... ......... __...... .___. _ _. u_ _ _. _ uu_ u _ _ _ 2
VI.
Performance Measurement
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VII. Accounting and Reporting m____..m__. _ _.. _ __. __m __. _. _..... _ _ _ _ _ _ _ _ _ mom _ _ _ _ um _ _ mm _ _ _ um _ _ _ _ _ _ _ _ _ _ _ _ _ _ 3
VIII. Advisory Relationships. _ _ _. _.................. _ __u____. _.... _ _ _. _ _ _. _ _ _ _ _. _ _ _ _ m _ _ _ _ _m _ _ _ _ m _ _ _ _ um _ _ _ _ _ _ u _ _ _ _ _ _ _ 3
IX. Pricing.___. _ _... _ ____ _ _ _ ____.. _. _... _................. ................... ................ .__..... _ ____.... __ _ _. _ uu _ _ _ _ u_ _ _ _ u _ _ _ _ 3
X. General Instructions...... ........... _.. _... _. ....... u.. _. _ _ u.uuuu_uu _ _ _ _ _ _ uu _ _ uu_ _ _ _u _ _ u_ _ _ _ _ u_u_ _ _ _ _ _ _ _ _ _ _ _ 4
REQUEST 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
Pursuant to its Purchasing Policies and Procedures, The City of Winter Springs, Florida,
invites the submission of proposals to provide Third Party Pension Advisory Services for
its Defined Benefit Pension Plan. All proposals must be submitted in a sealed envelope
marked "THIRD PARTY PENSION ADVISORY SERVICES PROPOSAL" and
received by the Office of the City Clerk, 1126 East State Road 434, Winter Springs,
Florida 32708, no later than 3:00 P.M. Wednesday, April 12, 2006.
Proposals will be evaluated by an ad hoc committee of city staff and the Pension Board of
Trustees. A final determination on award will be made by the City Commission at a date
and time to be determined.
It is understood that the City of Winter Springs reserves the right to reject any or all
proposals as it determines to be in the best interest of the City.
II. Background
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 Seminole County. The City's 2005
population was 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, Plan assets totaled approximately
$11,800,000. Plan assets are currently managed by SunTrust Bank in Orlando.
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III. Services Requested
The City wishes to retain a Pension Consultant to provide Third Party Pension Advisory
Services. These 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 Pension Board of Trustees meetings - quarterly and as requested.
5. Investment manager, custodian and commission recapture search and selection
services - as needed.
RESPONSES TO THIS RFP MUST INCLUDE THE FOLLOWING:
IV. General Information
1. Company profile including name of firm 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.
V. 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.
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VI. 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.
VII. 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. 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?
VIII. 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.
IX. 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.
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3. Itemize and describe and other services (including fees) you provide that you feel
may be of benefit to the City.
X. General Instructions
1. 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 inquiries shall be directed to:
Mr. Kevin Smith, General Services Director
City of Winter Springs
1126 East S.R. 434
Winter Springs, Florida 32708
407 -327 -6557 (phone)
407-327-6694 (fax)
ksmith@winterspringsfl.org
2. 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. 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.
4. Submissions of Proposals/Due Date
Five (5) originals 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 12, 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.
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5. 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.
6. 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.
7. 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.
8. 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
any calculations leading to the offeror's price quotes. The City reserves the right
to reject proposals, which contain errors.
9. 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:
A. Firm's qualifications and experience to provide the required service as defined
in the RFP.
B. Personnel qualifications to provide the required services as defined in the
RFP.
C. Cost of services, including projected hours for each project specified in the
proposal.
D. Firm's understanding of the City Pension Plan.
E. Compliance with the terms, conditions and other provisions of the RFP.
F. Adequacy and completeness of the proposal with regard to the information
specified in the RFP.
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10. 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).
11. 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.
12. 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.
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