HomeMy WebLinkAboutRESPONSE - RFP - P807 INVESTMENT SAFEKEEPING AND CUSTODIAL SERVICES (2)City of Fort Collins
Administrative Services
Purchasing Division
CITY OF FORT COLLINS
ADDENDUM No. 2
INVESTMENT, SAFEKEEPING AND CUSTODIAL SERVICES
October 8, 2001
Description of Request for Proposal #P-807
OPENING DATE: 3:00 p.m. (our clock) October 12, 2001
To all prospective proposors, the following are the questions submitted by firms and the City's
responses:
1. Under ELIGIBLE INVESTMENT, Section B, item #7, page 5, could you please clarify what you
mean by the one of the top three highest rating categories or corporate bonds. Would it be A,
AA and AAA? Or, is it AA, AA+ and AAA?
The Investment Policy allows the City to invest in corporate bonds with Moody's and S&P ratings
of A, AA and AAA.
2. Could you confirm what is the maximum maturity on corporate bonds? Per
section Vlll. INVESTMENT MATURITY AND LIQUIDITY, it appears to be 5 years.
The City normally limits the maturity on corporate bonds to 3 years, but for certain funds within
the City, we can extend the maturity to 5 years.
3. Can you please confirm that your policy allows for a corporate backed
repo? Under ELIGIBLE INVESTMENT, Section B, item #11, it seems to allow
for it.
The City does not accept corporate bonds as repo collateral.
4. Is it correct to assume that the RFP request is for safekeeping and custody only with some minor
investment of cash into a money market fund based on standing or specific instructions from
City staff. Investment advisory or management services are not included.
This is correct. Investment advisory and management services are not part of this RFP.
5. There are four accounts: a) operating funds, b) bond funds, c) pension funds d) what is the
fourth account for?
The four accounts are as follows:
a) City investment portfolio
b) Pension portfolio
c) Collateral for self insurance reserve fund ($2mm)
d) Safekeeping of repo collateral
6. Can you distinguish between Fed Wireable and the Repo transaction volumes stated on pages
25 and 26 of the RFP? Do the Repo transaction volumes reflect each piece (2 to 4 pieces per
Repo as stated on page 3 of RFP) of the Repo collateral that is received or delivered? If not can
you provide an estimated number?
215 North Mason Street • 2nd Floor • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6775 • FAX (970) 221-6707
The assumption in the Exhibit B is that a repo purchase and redemption is each considered one
transaction. If your bank charges for each piece of repo collateral purchased or redeemed
please multiply the volume by 3.5 for both credit posting and debit posting. Please indicate this
clearly in your response.
7. How many same day turnaround transactions are there and what type of security?
All repurchase transactions are considered same day transactions. For the most part, term
repos occur weekly. The City may purchase Treasury Notes or Agency Securities for same day
settlement.
8. Is Performance Measurement reporting a requirement and is it utilized today and will it definitely
be utilized in the future or is it just an option? What type of performance report is required and
is an example available?
Performance Measurement is an option in this RFP. The City does not use a Performance
Measurement tool from its current custodial provider. The City is using a combination of the
Technical Data Corp software and Excel models for performance measurement.
9. Does the City issue its own checks and direct deposit ACH transactions for the pension account
or does the Provider?
The Provider is not expected to handle any City pension payments. The City handles all
pension payments through its primary banking relationship.
10. What day of the month does the City require the monthly statements by?
The City requires that statements be received by the 10`h of the following month.
11. Does the City require safekeeping receipts and when do they need to be received by? Will the
monthly statement suffice as an alternative or access via the Internet to the information?
Safekeeping receipts are not required as long as the City has access to the information via the
Internet and monthly statements.
12. On what accounting basis does the City require its statements; trade, settlement or contractual
date?
The City requires the statements to be based on settlement date.
13. Are there any special requirements other than custody that needs to be performed by the
Provider for the pension account?
The Provider is only responsible for the safekeeping and custody of the pension assets.
RECEIPT OF THIS ADDENDUM MUST BE ACKNOWLEDGED BY A WRITTEN STATEMENT
ENCLOSED WITH THE PROPOSAL STATING THAT THIS ADDENDUM HAS BEEN RECEIVED.
EXHIBIT C 00P
CITY OF FORT COLLINS sz0O1
REQUEST FOR PROPOSAL P-807
INVESTMENT, SAFEKEEPING AND CUSTODIAL SERVICES
PROPOSAL CERTIFICATION FORM
The undersigned hereby affirms that:
1. He or she is a duly authorized agent of the custody provider issuing this proposal and that all
information provided in the proposal is true and accurate;
2. He or she has read the conditions and specifications that have been made available to the
custody provider in conjunction with this RFP and fully understands and accepts these terms
unless specific variations have been expressly listed in the custody provider's proposal;
3. The custody provider will follow and adhere to all terms and conditions and provide, at a
minimum, all services as expressed in the RFP and the custody provider's proposal
responding to the RFP;
4. The custody provider's proposal is offered independently of any other proposer and is in full
compliance with the terms specified in the RFP;
5. The custody provider will accept any awards made to it, contingent on contract negotiation,
as a result of the RFP for a minimum of ninety (90) calendar days following the date and Time
of the bid opening; and
o. if awarded a contract, the custody provider warrants that it will not delegate or subcontract its
responsibilities without the express prior written permission of the City of Fort Collins.
NO PROPOSAL
Signature of the Custody Provider Official: --
Name of Official (typed):
Title: VICE PRESIDENT
KENNETH B. BUCKIUS
Name of Custody Provider: THE BANK OF CHERRY CREEK, N.A.
Note: Proposals submitted without the manual signature of an authorized agent of the custody
provider may be considered non -responsive and ineligible for award.
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