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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. 28