HomeMy WebLinkAboutRFP - P807 INVESTMENT SAFEKEEPING AND CUSTODIAL SERVICESCity of Fort Collins
Administrative Services
Purchasing Division
CITY OF FORT COLLINS, COLORADO
REQUEST FOR PROPOSAL
INVESTMENT, SAFEKEEPING AND CUSTODIAL SERVICES
PROPOSAL NUMBER P-807
PROPOSAL DATE: 3:00 p.m. (Our clock) September 28, 2001
215 North Mason Street • 2nd Floor • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6775 • FAX (970) 221-6707
Proposal Term
All proposals must be valid for 180 calendar days from the required submittal date.
Section 3. Proposal Evaluation and Selection
General Evaluation Guidelines
Opening Time and Date: Purchasing staff will open proposals on September 28, 2001, at 3:00 p.m.
Mountain Daylight Savings Time, at the Purchasing Division Office located at 215 N. Mason Street,
2nd Floor, Fort Collins, Colorado.
Public Record Disclaimer: Under the Colorado Open Records Act, all information in the proposals
is a public record and will be available for inspection upon completion of contract negotiations and
award. Only the names of the Providers submitting proposals will be released prior to the
completion of contract negotiations and award.
Evaluation: The City's proposal evaluation team will read and evaluate all proposals submitted. The
evaluation team will include the Director of Purchasing, the Financial Officer, the Assistant Finance
Director, and the Finance Department Financial Analyst.
Use of Pre -determined Criteria: The evaluation team will use the City's standard evaluation criteria,
modified slightly for investment, safekeeping and custodial services. The Director of Purchasing
and the Financial Officer may eliminate proposals that are clearly non -responsive to the stated
requirements.
Additional Information: Throughout the evaluation and selection process, the Director of Purchasing
and Financial Officer reserve the right, in the best interest of the City, to request additional
information or clarification from the Providers, or allow corrections of errors or omissions. At the
discretion of the City, Providers may be requested to make oral presentations as part of the
evaluation process.
Amendments: After proposals are opened, Providers may not amend or clarify submitted proposals
unless the Director of Purchasing and Financial Officer request such information.
Basis of Selection: The selection will be made on the basis of the one being the most advantageous
to the City, price and other factors considered. Lowest cost may not indicate the highest ranked
candidate. Cost is only one of several evaluation criteria.
Council Approval: Under the Charter and Code of the City of Fort Collins, the selection by the
evaluation team is not subject to Council approval.
Criteria for Evaluation of Proposals
The evaluation team will use the following criteria to judge and score the written proposals and, if
necessary, for interviews.
The rating scale shall be from 1 to 5, with 1 being the lowest score, 3 being an average rating, and
5 being an outstanding rating.
WEIGHTING
QUALIFICATION
STANDARD
FACTOR
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Cost
Fees and Compensation.The proposal that provides the
services at the lowest total cost to the City. The total cost
for the requested custodial services will be determined
using the attached Pricing Schedule (Exhibit B). The City
will consider the impact of incremental revenues
_generated by proposed Securities Lending activities.
5
Understanding City
Degree to which the proposal and supporting materials
Needs
demonstrate that the Provider understands the City's
needs and operational requirements. Quality and scope
of the conversion implementation plan.
3
Financial Strength
Evaluation of key financial ratios and financial strength.
5
Scope of Services
The availability and quality of services proposed by the
Provider. Includes the value of any new product or
service suggestions or other new ideas and
enhancements.
2
Experience
The experience, resources, and qualifications of the
Provider and individuals assigned to the City's account.
Relevant experience managing similar relationships with
public sector clients.
At the option of the City, interviews and site visits may be conducted with some or all of the
Providers responding to this Request for Proposal. The final selection will be based on an
evaluation of all of the information submitted and the City's determinations that the proposal
will best serve the City's needs.
Performance Standard
In their proposals, Providers should strive to meet or exceed the standards of performance provided
in this RFP. The evaluation team retains the SOLE responsibility to determine the extent to which
proposals meet or exceed the standards of the City.
Acceptance Time
The City intends to make a bid selection for contract negotiations by November 15, 2001
Acceptance of Proposal Content
Upon selection by the City, the contents of the proposal become contractual obligations. If the
selected Provider does not accept these obligations, the City may cancel this award and disqualify
the proposing Provider from future solicitations. Should this occur, the City reserves the right to
award this RFP to the Provider with the next highest rank.
The City shall have the right to use any ideas contained in any proposal from any Provider that has
submitted a proposal in response to the RFP. Selection or rejection shall not affect this right.
Contract Negotiation
If necessary, the City shall have the right to negotiate with one or more of the Providers that respond
to this RFP or the successful Provider. The content of the RFP and the selected Provider, including
the scope of services, will become an integral part of the Contract, but may modified by the Contract.
By responding to this RFP, the Provider acknowledges the willingness to include, in the Contract,
any information provided in response to this RFP.
A proposal in response to this RFP is an offer to contract with the City based on the terms,
conditions, scope of work, and specifications contained in the RFP. The City's Standard Services
Agreement is attached as Appendix C. The City expects that both parties will execute the contract
prior to the commencement of investment, safekeeping and custody services on January 1, 2002.
During the period between the award and the completion of the Contract, this RFP, in conjunction
with the accepted proposal, will constitute, unless otherwise negotiated, a legal binding contract
between the City and the selected Provider.
If the selected Provider fails to sign and return a contract in substantial compliance with the RFP and
proposal within 15 days after completion of the contract documents, withdraws from negotiating the
contract documents, or otherwise fails to complete the transaction, the City shall have the right to
recover all expenses incurred in reliance upon the proposal, including reasonable attorney's fees.
If the selected Provider fails to sign and return the contract documents within 15 days following the
receipt thereof, the City may annul the award. The City may then alternately make the award to the
next highest ranked Provider. The City also retains the right not to make any subsequent award.
According to the Contract, the City may terminate the Contract upon 90 calendar days written notice.
The selected Provider shall waive all rights to security interests and rights to set -offs to City
deposits.
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The City retains the specific power and authority to require the selected Provider to furnish, such
information the City may request or demand concerning the portion of deposits which are issued by
the Federal Deposit Insurance Corporation, the amounts of the Provider's capital funds, and the
nature, amount, market value, and location of the eligible collateral maintained or pledged by it to
secure City deposits.
Term of Contract
The City is seeking a contract for a period of one year, with the option to renew four additional one-
year periods. In order to determine the maximum cost of the investment, safekeeping and custody
services contract, the City will evaluate each proposal based on the entire contract cost over five
years. Therefore, specific annual costs must be given for each of the five years. Please note that
Exhibit B requires a total dollar cost for each of the five years.
Commencement of Services
The City expects that investment, safekeeping and custody services selected through this RFP
process shall commence on or before January 1, 2002.
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Section 4. Scope of Services to be Provided
Any proposal must commence with responses or compliance statements to each
of the following points. Please reference the Section number for each response.
A. General Service Requirements and Overview
1. Safety of City assets is the highest priority under this contract. As the City's custodian, the
Provider will be acting as a fiduciary agent of City. State the Provider's general philosophy
on the safeguarding of public assets in this capacity.
The City anticipates that it will establish a cash account with the Provider to fund purchase
of securities or accept credit from sale or interest of securities. The City may also transfer
funds on settlement day for all security deliveries. All deliveries will be made delivery versus
payment (DVP). On the sale or maturity of a security, funds would normally be held in the
cash account for reinvestment by the City. In the normal course of business, should there
be delays or fails on the deliveries, funds may be left in the cash account for an unspecified
period of time. This cash account would be maintained by the Provider and must have the
capability to be automatically swept into an authorized investment vehicle (approved money
market fund). Specific sweep options are required in Section 4.D.11.
Since City funds must be collateralized, insured or invested, the proposal must describe the
general flow of funds anticipated and how those funds would be collateralized, insured or
invested.
Securities used as pledged collateral for deposits must be held in an independent third -party
entity not within the same bank holding company. If collateral is pledged, the Provider will
execute a tri-party safekeeping agreement with the City and the Safekeeping Bank for
safekeeping of these collateral securities, as applicable. Please state the third -party bank
to be used in such a situation.
3. There will be no investment activities transacted with the custodial institution except the
provision of an overnight sweep capability, if desired by the City. Any repurchase agreement
must be with a separate primary dealer as counterparty although custody of collateral can
be safekept with the Provider. Provider should describe how such a relationship could be
structured and/or state any difficulty with this provision. Please provide a reference for a
comparable relationship.
4. The City wants the be able to report all investments in its financial statements as Category
#1 under GASB Statement III ("Deposits with Financial Institutions, Investments and
Reverse Repurchase Agreements") provisions which requires securities be insured or
registered in the name of the governmental entity or held by the entity's agent in the
governmental entity's name. Please describe how the Provider assures such classification.
B. Mandatory Requirements
1. Non -Discrimination of Provider and Sub -Contractors
The City is committed to equal opportunity and affirmative action. It is the policy of the City
that the maximum practical opportunity to participate in government contracts be provided
to minority and women enterprises. The Provider shall at all times in the bidding and
contracting period comply with all applicable city, county, state and federal anti-
discrimination laws, rules, regulations and requirements.
IPA
Any violations of this provision shall be considered a violation of a material provisions of the
contract and shall be grounds for cancellation, termination, or suspension in whole or part
of the agreement with the City.
Please respond by describing how the Provider provides for such opportunities and describe
the minority representation in your organization.
2. Bank Providers
a. In accordance with the provisions of Colorado State law, Colorado Banking Institutions
must be designated as a public depository by the State of Colorado. Please state the
Provider's status.
b. The Community Reinvestment Act (CRA) of 1977 stipulates that banks and other
financial institutions must meet the credit needs of the communities they serve.
Proposals should include a copy of the bank's most current CRA policy statement and
the current CRA rating of the institution.
3. Insurance Requirements
Provider must have either insurance or collateral for City funds. State what insurance is
available for City funds or whether collateral is available for funds in transit.
4. Ability to Handle All Security Transaction Types
a. Provider must be able to handle the following types of security transactions through their
own operations or through an established correspondent banking relationship. Please
respond to each and state whether each operates on a same day posting and crediting
basis for all credit transactions.
Fed Wireable Security Transfer (FedWire)
Depository Trust Corporation (DTC)
Participatory Trust Corporation (PTC)
Physical Security Settlement (New York)
List your depository memberships (FRB, DTC, PTC) and the services you use at each.
How long have you had this membership. Is membership through the Provider or
correspondent? Fully describe the use of any subcustodians.
b. If any of these transactions are to occur through a correspondent or subcustodian
relationships, those relationships should be fully disclosed including the length of the
relationships.
c. What criteria do you use to select subcustodians?
5. Same Day Posting Requirements
Same day posting of all credits and debits (cash transfers, interest payments, maturities, and
sales, etc.) is required. Please stipulate the Provider's policy on posting of debits and
credits. Please include a schedule of your income and collection standards.
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6. Immediate Instruction Execution
Provider will be required to act promptly on all instructions given by authorized
representatives of the City through mutually agreed upon procedures. There is no
requirement for the Provider to verify the validity of the transaction, or compliance of that
transaction, with state statute or City policy. Please describe Provider's policy and limitations
on this issue.
C. Institutional Profile Data
1. Brief History and Service Statement
a. The Proposal should state a brief history of the Provider institution and development of
its custodial division(s) which indicates the scope of service, philosophy as a public
depository, and key dates of implementation and enhancement to its custodial services.
b. Describe the Provider's commitment to the custodial services business.
2. Financial Information
a. The City requires a Provider that is fiscally strong and able to provide these custodial
services on an uninterrupted basis. Foremost in any system must be safety of assets
and accuracy of information with provision for an adequate audit trail. In order to fulfill
the City's fiduciary responsibility to protect public funds, all proposals will include, as part
of the proposal:
(1) audited financial statements for the three most recent fiscal years,
(2) if the Provider is owned by a holding company, financials must also be provided
for the holding company, and
(3) if a bank, the most recent call reports must be supplied.
b. Please provide a statement regarding any recent or anticipated merger, acquisition, or
charter change affecting the Provider.
c. If the potential Provider is a bank, the City requires a minimum of a "green" VERIBANC
rating. Please state your current VERIBANC rating and any other ratings of note. Banks
that do not meet the minimum criteria but desire to submit a proposal must include a
written Justification for Consideration. A written Justification for Consideration does not
obligate the selection committee to consider the proposal of a bank that does not meet
the minimum criteria.
3. Organization
a. Briefly describe your organization and its institutional custody division(s). Describe the
structure of the organization with core businesses, locations and services.
b. Briefly describe your institutional custody service capabilities and what capabilities set
you apart from other providers.
c. Provide an organizational chart showing the operating interrelationships and authorities
within the Provider's entire organization.
d. How many professional staff are devoted exclusively to institutional custodial services?
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e. Are accounts administered by teams or individually?
f. Comment on the personnel turnover you have experienced in the last year in the
division.
4. Client Base and Trust Assets
a. Please state the total of all assets held in custody by the Provider and the number of
trust or custodial clients (and average size) currently served. Provide a breakdown of
our client base in the categories of personal and institutional accounts, both globally and
domestically.
b. How many public entities are currently served? How many twelve months ago? Provide
ten (10) accounts of comparable size (and asset type) to be used for references. List
the name, address and phone number of the appropriate contact person to be used for
this reference.
c. How many custodial clients has the Provider gained in the last twelve months?
d. How many custodial clients has the Provider lost during the past twelve months? And
what percent of your total clients does this represent? For each client lost provide the
reason for the termination.
5. Service Commitment
a. Describe your approach to and level of commitment to client service. Include a
statement describing the Provider's approach to satisfying the services requirements of
the City. What is the Provider's commitment to institutional custody relationships?
Please illustrate.
b. How do you monitor customer satisfaction?
6. Training
Describe any ongoing educational seminars, user meetings, publications, or other training
mechanisms you use for keeping clients informed and educated. (Respond on system
specific training in Sections: 4.D.15g, 4.D.18e and 4.E.6d.)
7. Outstanding Litigation
Identify and describe any litigation or investigations by a regulatory agency or authority or
contingent liabilities your company, its officers or its principals, have been involved in within
the last three years relative to your custodial service.
D. Required Services
1. Legal Segregation of Securities and Accounts
The City requires that all its assets be legally segregated from all other clients for safety.
Describe how this separation will be established and maintained.
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2. Account Executive
a. To insure smooth implementation and continuation of services, an account executive
must be assigned to the City's account to coordinate the account services and expedite
the solution of any problem. The account executive will work with the City representative
as central coordinators on all matters under the resulting contract. The City expects that
all custodial problems and questions can be addressed through this one account
executive. Provide the name, title and qualifications of the account executive expected
to be assigned to the account. Please state how long the person has been in their
current position and the training or experience they have had.
b. How many accounts are assigned to the executive? Typically how many accounts are
assigned to each account representative?
c. Is account administration handled as a team or individual effort?
d. Trained and competent backup for the account executive, familiar with the account,
should also be assigned. Provide the name, title and qualifications of the back-up
personnel expected to be assigned to the account.
e. Describe the policy on notification of changes in these positions during the contract
period.
3. Accounting
a. Accurate accounting is critical to the City. Describe your accounting process (or module)
and the degree of flexibility available through it.
b. Does your system report or accommodate trade date, settlement date and accrual
accounting? What accounting methods do you offer? (Trade or settlement? Cost
basis? Amortization?)
c. What is your source of pay down information? When is this posted? Do you maintain
records of the original face amount?
d. How do you handle corrections/reversals (i.e. as an adjustment or an offsetting sale or
purchase?)
e. What is your policy toward same day crediting of interest and dividends on payable
dates? Are payments credited in same day funds? If not credited on the same day how
is the City compensated?
f. When are funds withdrawn for purchases?
4. Security
a. What security procedures and precautions are in place to protect City information,
especially with respect to unauthorized on-line access or telephone instructions? Please
fully describe all security measures.
b. What procedures restrict unauthorized use at the time of transaction recording?
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c. How are authorization codes assigned? Are authorization codes changed periodically?
How often?
5. Delivery versus Payment "DVP" Settlement
All securities transactions must be delivery versus payment (DVP). Describe how this process
will function and how the DVP protection is assured.
6. Securities Movement and Trade Settlement
a. Describe your system for settlement, registration and custody of assets. Can you handle
same -day turnaround transactions?
b. Describe your "DK" wiring procedures.
c. Describe where and how the receipt and delivery of physical securities occurs and how
they are secured. Describe any involvement by correspondent banks in the clearing.
d. Describe the physical security systems of your vault and custody areas.
e. Do you verify transaction detail from client instructions? How? When?
f. Describe the flow of data for the following transaction types. (Provide flow charts if
necessary.)
(1) Receipt and transference of trade instructions on purchases and sales.
(2) Clearing functions.
(3) Transfer to safekeeping.
(4) Payment for income and maturities.
(5) Handling of repurchase agreement collateral.
(6) Handling of reverse repurchase agreement activity.
(7) Delayed deliveries and sales.
g. How do you handle corporate actions? (splits, dividends, etc.)
7. Service Deadlines and Cutoffs
What are your trade settlement instruction deadlines for timely processing of regular and
same -day transactions? Proposal must include completion of Exhibit A.
8. Fail Process and Policy
a. Does the Provider take responsibility for collection of due bills, interest and fails?
Describe your policy.
b. What is your client compensation policy on failed transactions?
c. What procedures are in place to identify, follow-up and resolve failing trades? What
percent of transactions failed for the most recent calendar year? (Purchases and sales.)
d. How many times in the past year have your electronic information systems been out of
service due to reasons internal to your company? How long were the downtimes? If you
had outages or downtimes, what has been done to eliminate the problem(s)?
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Request for Proposal — Table of Contents
Section Description Pape
Cover Page
Table of Contents ii
Request for Proposal Cover Letter 1
Section 1. Introduction and Information about the City
and the Finance Department 2-5
Section 2. Proposal Submittal Instructions 6-7
Section 3.
Proposal Evaluation and Selection
8 — 11
Section 4.
Scope of Services to be Provided
A. General Service Requirements and Overview
12
B. Mandatory Requirements
12 - 14
C. Institutional Profile Data
14 - 15
D. Required Services
15 - 21
E. Optional Services
21 - 22
F. Additional Services
23
Section 5.
Pricing Proposal
Exhibits
A. Deadline and Cut-off Schedules
24
B. Custody Services Pricing Schedule
25 - 27
C. Proposal Certification
29
Appendices
A. City of Fort Collins Investment Policies
B. City of Fort Collins Investment Portfolio Listing
C. City of Fort Collins Standard Services Agreement (sample)
9. Wire Transfers
a. A separate wire transfer agreement must be executed with the Provider establishing the
names of authorized individuals and repetitive wires, etc. This may be the Provider's
standard agreement form. The City will retain the right to modify the form if found
necessary. Please provide a copy of this agreement.
b. Describe the procedures and controls for repetitive and non -repetitive wires including
security controls. Is wire transfer transaction processing available on line?
c. Wire transfers must be credited the same day as received. The proposal will list all
deadlines and cutoff times on Exhibit A.
10. Daylight Overdraft Provisions
Every effort will be made to eliminate daylight overdraft situations on the City's account.
However, in case this situation does arise, the proposal should include any and all policies
regarding daylight overdraft charges or handling procedures.
11. Sweep Provisions
a. Do you provide an automated daily sweep mechanism for anticipated or unanticipated
cash balances? Describe all alternatives available to the City for its cash balances.
Include timing restraints and controls that assure that funds are not left unprotected. The
prospectus for each alternative must be provided for review and approval before use by
the City.
b. Are balances automatically monitored to assure no uninvested balances? Who directs
this process and what are the deadlines for the service?
12. Collateralization
a. If a non -Colorado bank, the Provider will agree to obtain and maintain collateral
acceptable to the City sufficient to cover all anticipated intra-day and overnight balances,
above the FDIC insured limit of $100,000. Please state bank's agreement to this
requirement. How will the City be assured that acceptable collateral is maintained?
Colorado Banks must be designated as Colorado Public Depositories by the State of
Colorado and meet all Public Depository Protection Act requirements.
b. Describe any alternative to this collateralization requirement.
c. What margin will be used for collateral provided?
For collateral safekeeping, a tri-party agreement must be executed between the bank,
the City and the safekeeping bank which outlines the responsibilities of each. The
safekeeping bank will provide original, third party safekeeping receipts detailing the
collateral which clearly shows, on its face, that the security is "Pledged to..." All
substitutions of collateral are to be in writing and the entity will make every effort to
approve and process them in a timely manner.
13. Pricing of Securities
a. Describe your pricing services.
M
b. What is the source of your pricing data for securities authorized by the City?
c. How do you price securities not available from pricing services?
d. How frequently do you price securities?
e. Will the City have access to your pricing service?
14. Reporting
a. Accurate and timely reporting is of critical importance to the City. Describe your standard
and custom reporting package(s) and alternatives. Describe and submit copies of all
standard reports available and how they are made available (paper only, on-line, real-
time, next day, delayed, etc.). Describe all aspects of reporting and download
capabilities.
b. How soon after calendar month -end can you provide reports, or a disc or tape of
holdings if requested? Can you provide system to system electronic data transmission?
PC downloading? Internet access?
c. What information, current, future cash flow, and historical is available on-line? How long
is historical data available on-line? How long does the Provider maintain historical data?
Are there charges for research?
d. Describe the confirmation process for each settlement. Provide a sample confirmation.
e. Is an original safekeeping receipt issued for each holding?
f. How do you handle notification on mortgaged -backed securities principal and interest?
g. Do you use CUSIPs or internal identification numbers for your securities? Are CUSIP
numbers on each report?
h. What is the interday time lag between trade execution, posting, and availability of on-line
information to the client?
I. What are your transaction confirmation procedures as it relates to notifying the City on
upcoming interest payments, call actions, and receipts of payments and calls.
15. Systems
a. Describe the automated systems and environment supporting the custodial services
(age, state of development, etc.) and describe the Provider's commitment to system
development and maintenance. Include your current capacity and track record.
b. Within your institution, does your custody system use dedicated or shared computers?
If shared, what is its priority level?
c. Between what hours each business day is information available? The proposal should
state in Mountain Standard Time (MST) when information and access will be available
each business day.
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d. How long has on-line inquiry and reporting been available to clients?
e. The City desires on-line transaction processing if possible. Can all custody transactions
be entered, completed and reviewed on-line? Provide examples of all transaction
screens.
f. Do you provide an 800- or local number for dial -in information?
g. What system's training is available for the City personnel?
h. Briefly describe you method of controlling client access.
How long has the current system been in place? What changes in the systems, if any,
are anticipated and in what time -frame?
j. How much funding have you committed to computer systems and data processing for
custodial accounts and systems in the past five years?
k. Does the system provide electronic mail capabilities between the City's and Provider's
personnel?
I. List any circumstances or situations in which the information sent electronically by the
City would be manually entered at the Provider.
m. Back-up via telephone must be available for transaction processing. Describe this
process.
n. Specify any hardware and software required of the City for on-line services.
16. Auditing Procedures
Describe your daily and periodic auditing procedures for both internal and external
processes. Will the City have access to audit information?
b. Would the City's accounting reports be audited for accuracy before submission to the
City? Describe this process.
17. Back-up and Disaster Plans
a. It is imperative that the City have access to its financial assets in case of a disaster.
Describe your disaster and back-up plan and capabilities including data processing
systems, telephone access, system security controls, and customer identity controls.
b. How often is the plan tested?
c. Has this plan had to be used within the past three years?
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18. Conversion
a. Describe your approach to the implementation and conversion process as City assets
are moved to the Provider. Include an estimated conversion calendar.
b. What resources will be dedicated to the conversion effort?
c. What controls are suggested for this period?
d. What type and level of City involvement do you foresee in the process?
e. What training is offered to the City during transition?
f. What is the relationship between the transition team and the permanent support staff?
What role will the account executive play in the conversion?
g. What costs are associated with the conversion? List all types and charges on Exhibit
B.
h. Will the Provider defray any costs the City may incur from the present custodian for
transferring assets?
E. Optional Services
1. Subsequently Added Services
It is the intent of the City to pay for all services on a fee basis. If new services become
available and are provided during the period of this contract, how will the City be charged?
Describe your policy on subsequently added services.
2. US Treasury Auctions
During the course of the contract the City may wish to take advantage of the US Treasurys
Automated Auction Bidding for Institutional Investors. Since this requires electronic bid
submission and FedLine connections, the proposal should state whether the Provider
currently has, or plans to have, the capability to handle such transactions.
3. Computer Terminal Link
Should services provided by the Provider require a computer terminal for inquiry and
updates (not available through a personal computer), the City would request that two
terminals be provided by the Provider for the City's Treasury and Accounting Departments.
Provide a full explanation and cost estimate. Specify systems requirements and costs.
4. Securities Lending
The City may elect to do securities lending transactions with other institutions.
a. Do you provide securities lending? If so, describe your program and the services
provided. What differentiates your program from others?
b. Is the securities lending group in-house? A part of the custody operation?
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c. How long have you provided securities lending services?
d. If provided through a third party, identify the vendor, their split of revenues and the
residual percentage to the City. How long have you had this relationship?
e. How do you minimize the risk in securities lending?
f. Provide a list of borrowers with whom the Provider works and a copy of the current
collateral contract.
g. How many institutional custodial clients currently use the securities lending services?
(Identify public versus private.)
h. How often is the creditworthiness of borrowers reviewed?
I. Describe the type of securities in the program.
j. Do you mark -to -market daily? Is collateral adequacy monitored daily?
k. How is cash collateral invested?
I. Provide a copy of all transaction and income reports. Describe the on-line reporting
availability for securities lending.
m. Can assets be designated as available for different sector types and varying time
frames?
n. Are loaned securities flagged on the custody reports for client identification?
o. To what degree are the securities lending clients insured against losses in the program?
p. On the City's portfolio provided as part of this RFP, what incremental revenues (in basis
points per annum) could be expected in a year? Do you guarantee income?
5. Investment Management
a. What investment management services do you provide?
b. Does the Provider act as third party custodian for existing repurchase agreement
programs with multiple primary dealers which allows on-line rate inquiry and transaction
processing?
6. Performance Management
a. Does the Provider provide portfolio performance measurement? What are the
performance products available? What portion of these services are available on-line?
What are the advantages of using your performance management services?
b. What level of control on the reporting and options are available for this service?
c. Can the program download to Excel? Other software applications?
d. What training is available to the City in understanding your performance products?
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e. What costs are associated with these services?
F. Additional or Alternative Services
Any additional service or permissible alternatives to the required services, whether for
charge or no charge, should be specified under this section. If alternatives are offered on
services outlined above, please note the reference number from the RFP for the service.
Give a full description of the service along with all charges and detail charges on Exhibit B.
The volume for such transactions will be available upon written request.
Describe any service restrictions or limitations.
Section 5. Pricing Proposal
A. Basis of Compensation
a. Compensation will be on a fee basis with respect to the services used and detailed on
the account analysis. The Provider will be paid upon receipt and verification of the
account analysis maintenance report each month. If another payment schedule is
desired, proposal should so state the schedule and requirements of that proposal.
b. Please state when the account analysis will be provided and provide a sample of the
proposed account analysis form.
B. Exhibit B
Each proposal must include a completed Exhibit B which details all services and the fee to
be charged for each. Any additional services should also be stipulated on Exhibit B.
23
EXHIBIT A
DEADLINE, CUTOFF AND NOTIFICATION TIMES
SAME DAY TRANSACTIONS
Federal Reserve (FedWire)
NY Physical - (Muni/Equities/Corporates)
NY Physical Money Markets (CP)
DTC
PTC
REGULAR SETTLEMENT (NEXT DAY / CORPORATES — 3 DAY)
Federal Reserve (FedWire)
NY Physical - (Muni/Equities/Corporates)
NY Physical Money Markets (CP)
DTC
PTC
Purchase/ Sale/
Receipt Delivery
State any exemptions, restrictions or limitations on these deadlines below.
No
XMI
Lll�IWjL,1
Xccounl Xnam 7ysi"s
Account maintenance
■
Sweep Access
Securities Safekeeping
■
Credit Posting
1phterestl
dividend ym st' payments
_�
Maturities (excl.
repo■
25
n
UNIUM10
INION9191
Ebeiiveries
•
Fedwire (with
• • )
■,
Wire Transfers
__
,Cost of Collateral or Dep
Insurance
� � �� Ali
.•
Daylight Overdraft
Charges
(perocc7AMMMMMMMMME
14
Costs
Other
RAND TOTAL:
earnings on sweep account: (avg
27
Administrative Services
Purchasing Division
REQUEST FOR PROPOSAL
CITY OF FORT COLLINS
PROPOSAL NO. P-807
The City of Fort Collins is seeking proposals from firms for an investment, safekeeping and custodial
services contract for the City's portfolio assets. Fort Collins is a municipal corporation which derives
its powers from the home rule charter of the City and from applicable Colorado state law.
Firms should submit six (6) written proposals to the City of Fort Collins Purchasing Division. If
delivered, they are to be sent to 215 North Mason Street, 2nd Floor, Fort Collins, Colorado 80524
If mailed, the address is P.O. Box 580, Fort Collins, 80522-0580. Proposals must be received
before 3:00 P.M. (our clock), September 28, 2001, Proposal No. P-807.
Questions concerning the scope of the project should be directed to Alan Krcmarik, Financial Officer
or Julie Depperman, Financial Analyst (970) 221-6788.
Questions regarding proposal submittal or process should be directed to James B. O'Neill 11, CPPO,
FNIGP, Director of Purchasing and Risk Management (970) 221-6775.
A copy of the Proposal may be obtained as follows:
Download the Proposal/Bid from the Purchasing Webpage,
www.fcqov.com/purchasing.
2. Come to the Finance Department, Purchasing Division Office, located at 215 N.
Mason Street, 2nd Floor, Fort Collins, to request a copy of the Bid.
Sales Prohibited -Conflict of Interest: No officer, employee, or member of City Council, shall have a
financial interest in the sale to the City of any real or personal property, equipment, material, supplies,
or services where such officer or employee exercises directly or indirectly any decision -making
authority concerning such sale or any supervisory authority over the services to be rendered. This rule
also applies to subcontracts with the City. Soliciting or accepting any gift, gratuity favor, entertainment,
kick -back or any items of monetary value from any person who has or is seeking to do business with
the City of Fort Collins is prohibited.
Collusive or sham proposals: Any proposal deemed to be collusive or a sham proposal will be rejected
and reported to authorities as such. Your authorized signature of this proposal assures that such
proposal is genuine and is not a collusive or sham proposal.
The City of Fort Collins reserves the right to reject any and all proposals and to waive any
irregularities or informalities.
gtre'y,
sBONeill II, CPPO, FNIGP
or of Purchasing & Risk Management
215 North Mason Street • 2nd Floor • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6775 • FAX (970) 221-6707
EXHIBIT C
CITY OF FORT COLLINS
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
6. 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.
Signature of the Custody Provider
Name of Official (typed):
Title:
Name of Custody Provider:
Date:
Note: Proposals submitted without the manual signature of an authorized agent of the custody
provider may be considered non -responsive and ineligible for award.
m
APPENDIX A
INVESTMENT POLICY
CITY OF FORT COLLINS, COLORADO
CASH MANAGEMENT AND INVESTMENT POLICY
September 7, 1993
The Financial Officer of the City of Fort Collins, Colorado, is charged with the responsibility to invest
funds of the City. Currently, these funds must be placed in investments appropriately authorized
by the City of Fort Collins Ordinance No. 108, 1988. The following Investment Policy prescribes the
manner in which the program authorized by the ordinance will be administered to ensure effective
and sound fiscal management.
SCOPE
OBJECTIVES
This policy shall apply to the investment of all general and special funds of the
City of Fort Collins (hereinafter referred to as the "the City") over which it
exercises financial control, including the City of Fort Collins Fire Fighters Pension
and General Employees Retirement funds.
The City's principal cash management and investment objectives are:
A. Preservation of capital through the protection of investment principal.
B. To maximize the cash available for investment.
C. Maintenance of sufficient liquidity to meet the City's cash needs.
D. Diversification of investments to avoid incurring unreasonable risk regarding a
specific security, maturity period, or institution.
E. To maximize the rate of return for prevailing market conditions for eligible
securities.
F. Conformance with all Federal, State and other legal requirements.
DELEGATION OF AUTHORITY
Responsibility for the collection and investment of all City funds is assigned to the
Financial Officer by the Charter, subjected to direction of Council by resolution.
The Financial Officer may appoint other members of the Finance Department to
assist in the cash management and investment functions.
The City Manager shall appoint an investment committee, consisting of the
Financial Officer and at least two (2) other employees of the City knowledgeable
in the area of governmental investments. The purpose of the investment
committee shall be to provide advice to the Financial Officer regarding the
operation of the cash management and investment program. The investment
committee shall review and discuss the economic outlook for the ensuing
investment period, the diversification and maturity structure of the portfolio,
potential risks to the investment of City funds, and the conformance of the cash
management and investment program to the adopted policies. The investment
committee shall also review the actual rate of return on the portfolio as compared
to the target rate of return.
The Financial Officer shall have the discretion to appoint one or more Investment
Advisors, registered with the Securities and Exchange Commission under the
Investment Advisors Act of 1940, to assist in the management of a portion of the
City's authorized purchasing procedures for selecting professional services. All
investments made through such Investment Advisors shall be within the
guidelines of this Investment Policy with regard to the City's assets.
A list of individuals and institutions who are authorized to purchase, sell and wire
securities or funds on behalf of the City shall be maintained by the Financial
Officer. Such list shall be provided to a financial institution prior to the City
conducting any investment transactions with said institution.
The Financial Officer shall be responsible for all investment decisions and
activities, and shall establish written administrative procedures for the operation
of the City's investment program consistent with the Investment Policy. The
Financial Officer and designees acting within the guidelines of this investment
policy shall not be held personally liable for specific investment transactions.
FINANCIAL OFFICER'S PROGRAM RESPONSIBILITIES
A. Safekeeping
1. Wireable investment securities purchased by the City will be delivered
by book entry and held in third party safekeeping by a Federal
Reserve member financial institution designated as the City's
depository.
2. The purchase of wireable securities shall be on a deliver -versus -
payment basis. Sale of wireable securities shall be on a payment -
versus -delivery basis.
3. Nonwireable securities may be:
a. Held in safekeeping with a firm recognized as a Primary Dealer of
the Federal Reserve Board of New York, or financial institution
authorized by the City, with the following provisions:
(1) The dollar value of securities held by any firm shall not
exceed the firm's insurance limits for the City's account.
(2) Firms must supply the City with documentation supporting
their insurance limits as well as the name of their insurers.
Such documentation shall be maintained by the Financial
Officer.
(3) City staff shall monitor and update the insurance data
required by this section on a quarterly basis.
b. Physically delivered and held in third party safekeeping by a Federal Reserve
member financial institution approved by the City.
B. Reporting
On a quarterly basis, a report shall be prepared listing all of the
investments held by the City, transaction summaries and performance
results. The quarterly investment report shall be submitted in a timely
manner to the City Manager. A summary investment report shall be
published in a newspaper of local publication, or other suitable publication
of general local circulation on an annual basis.
C. Performance Review
The Financial Officer and designated investment staff shall meet
at least quarterly to review the portfolio's adherence to appropriate
risk levels and to compare the portfolio's total return to the
established investment objectives and goals.
2. Cash and investment performance standards, to be determined
quarterly, shall include:
a. Optimal daily cash balance to be maintained in both the
demand account and savings account.
b. The yield as a measure of net return to be achieved on
investments.
C. The percentage of cash balances to be invested daily.
The Financial Officer shall periodically establish a benchmark yield
for the City's investments which shall be equal to the average yield
on the U.S. Treasury security which most closely corresponds to
the portfolio's actual weighted average maturity.
4. The Financial Officer, in order to determine the actual rate of
return to the City on any portion of the portfolio managed by an
investment advisor, shall include all of the advisor's expenses and
fees in the computation of the rate of return.
D. Investment Transactions
All investment transactions initiated by the City must be executed
with brokers -dealers and financial institutions that have been
authorized by the City. Each city -initiated transaction for publicly -
traded funds must be competitively transacted with a least two
authorized broker -dealers or financial institutions.
PRUDENCE
2. In order to insure that the City receives competitive pricing, a
record shall be maintained by the City for securities transactions.
3. Commercial paper may be bought directly from the issuers and be
held in third party safekeeping.
4. In lieu of taking delivery through the Federal Reserve System or
the Depository Trust Company (DTC), if an investment opportunity
can increase yield but maintain prudent safety requirements, the
charges for transmitting, transacting, or performing third party
safekeeping for securities may be charged against interest income
generated by the transaction.
The Financial Officer shall:
1. Prepare a cash budget in order to determine cash needs time
horizons, and the availability of cash to invest.
2. Analyze market conditions of the various investment securities on
a daily basis to determine the maximum yield obtainable.
3. Prepare investment assumptions as to market conditions, cash
availability and starting mix of investment securities.
4. Prepare investment strategies or actions to be taken based upon
assumptions and actions to be taken in the event of an
unexpected drop in cash flow or unexpected revenues.
5. Whenever possible, pool cash from the various City Funds to
enhance investment capabilities, thus maximizing investment
income. Interest income will be distributed to the participating
funds in proportion to each fund's level of contribution.
6. Prepare strategies that will maximize amount of cash available for
investment.
F. The Financial Officer shall promulgate administrative procedures as
deemed necessary.
The standard of prudence to be used to managing the City's assets is the
"prudent investor" rule, which states, "Investments shall be made with judgment
and care, under circumstances then prevailing, which persons of prudence,
discretion and intelligence exercise in the management of their own affairs, not
for speculation, but for investment considering the probable safety of their capital
as well as the probable income to be derived."
ELIGIBLE INVESTMENT
A. As a home rule City, Fort Collins may adopt a list of acceptable
investment instruments differing from those outlined in CRS 24-75-601.1,
"Legal Investment of Public Funds". The City Council has adopted
Ordinance No. 108, 1988 of the Council of the City of Fort Collins
"Providing for the Investment and Deposit of Public Funds and Moneys of
the City of Fort Collins" (hereinafter referred to as "Ordinance No. 108,
1988").
B. The following is an outline of authorized investments with certain
additional qualifications. It is intended to define the administrative
boundaries within which these investments will be conducted:
1. Any securities now or hereafter designed as legal investment for
municipalities in any applicable statute of the State of Colorado.
2. Interest -bearing accounts or time certificates of deposit at state or
federally -chartered savings and loan associations in Colorado
which have been designated as depositories for public moneys by
the State of Colorado.
3. Interest -bearing accounts or time certificates of deposit in state or
national banks doing business in Colorado which have been
designated as depositories for public moneys by the State of
Colorado.
4. Obligations of the United States Government, such as treasury
bills, treasury notes and treasury bonds.
5. Obligations issued by any agency, instrumentality or public
corporation of the United States.
6. Obligations issued by or on behalf of the City.
7. Obligations issued by or on behalf of any state of the United
States, any political subdivision, agency, instrumentality or public
corporation thereof having an investment grade rating from
Moody's Investors Service or Standard & Poor's Corporation.
Investment Grade means one of the top three highest rating
categories.
8. Prime -rated bankers acceptances shall have a maturity of six
months or less and be issued on domestic banks or branches of
foreign banks domiciled in the U.S. and operating under U.S.
banking laws.
9. Prime -rated commercial paper shall have a maturity of six months
or less and be issued on U.S. corporations which are rated A-1 by
Moody's, P-1 by Standard and Poor's or 1+ by Duff and Phelps,
Inc.
10. Guaranteed investment contracts of domestically -regulated
insurance companies having a claims -paying ability rating of "AA"
or better from Standard & Poor's Corporation and have a rating of
A+ from Best Rating Services.
11. Repurchase and reverse repurchase agreements of any
marketable security described in Ordinance No. 108, 1988 which
afford the City a perfected security interest in such security.
Repurchase Agreements shall be collateralized at a minimum of
102 percent of the dollar value of the transaction. The transaction
shall be on delivery -versus -payment basis to the City's depository
bank's account at the Federal Reserve Bank.
12. Local government investment pools authorized under the laws of
the State of Colorado.
13. Shares in any money market fund or account, unit investment trust
or open- or closed -end investment company, all of the net assets
of which are invested in securities described in this section, to the
extent not prohibited by Colorado Constitution Article XI, Section 2
or by the Colorado Revised Statutes. City investment in such
funds or trusts shall be limited to funds and trusts which meet the
following conditions:
a. The Money Market Fund shall be a domestic money market
mutual fund registered with the Federal Securities and
Exchange Commission (SEC) and meeting the
requirements of Rule 2a-7 of the Investment Company Act
of 1940. The unit investment trust maximum maturity will
not exceed Section VIII of these policies.
b. The fund or trust shall be "no load" i.e., no commission fee
shall be charged on purchases or sales of shares.
C. The investment advisor or administrator of the fund or trust
must be specifically prohibited from conducting securities
transactions with its sponsoring institution.
d. The net asset value per share of the fund shall be held
constant at a certain amount (usually $1.00 per share).
The market value of a unit investment trust share shall be
compared to market monthly.
14. Mutual funds that include eligible investments found in VI. B. The
funds utilized must have a top rating for at least five years in the
national rating service Morningstar Mutual Funds.
15. For bond reserve funds only, treasury securities with a put option
may be used to control and immunize arbitrage rebates. To
maximize arbitrage the interest income of the security may pay for
the put.
C. In addition to those investments listed in subsection B above, pension
funds may be invested as follows:
1. Equipment trust certificates;
2. Real property and loans secured by first mortgages or deeds of
trust on real property; participation guarantee agreements with
domestically -regulated life insurance companies;
3. Tax certificates issued by any county treasurer of Colorado upon
any real property located within the state of Colorado; and
4. Common or preferred stock or debt obligations, convertible or
otherwise, of private corporations organized under the laws of any
state in the United States.
5. International mutual funds that have a five star rating for at least
five years from a national rating agency service Morningstar
Mutual Funds.
VII. INVESTMENT DIVERSIFICATION
It is the intent of the City to diversify the investment instruments within the
Portfolio to avoid incurring unreasonable risks inherent in over -investing in
specific instruments, individual financial institutions or maturities. The asset
allocation in the portfolio should be flexible, depending upon the outlook for the
economy and the securities markets.
VIII. INVESTMENT MATURITY AND LIQUIDITY
Eighty percent of the City's investments, excluding pension funds, shall be limited
to maturities not exceeding five years. In addition, the weighted average maturity
life of the total portfolio, excluding pension funds and long-term reserve funds, at
no time shall exceed two years. The City shall at all times maintain five percent of
its total investment portfolio in instruments maturing in 120 days or less.
IX. Before any repurchase agreements shall be executed with an authorized broker -
dealer or financial institution, a Master Repurchase Agreement, approved as to
form and content by the City Attorney, must be signed between the City and that
broker -dealer or financial institution. The Financial Officer shall maintain a file of
all Master Repurchase Agreements. The purchase and sale of all deliverable
securities shall be on a delivery -versus -payment basis or in case of a sale on a
payment -versus -delivery basis.
SALE OF INVESTMENT AT A LOSS
The City seeks an active, rather than passive, management of its portfolio assets.
Assets may be sold at a loss only if the Financial Officer or designee decides,
based upon sufficient analysis, that the sale of the security is in the best long-
term interest of the City. Sufficient analysis shall be provided to support each
investment decision in which a loss is realized. This documentation shall be kept
at least two (2) years from the date of sale.
X. SELECTION OF BANKS AND SAVINGS AND LOANS
A. As outlined in Section 2 of Ordinance No. 108, 1988: `The City may
deposit public funds and moneys in any bank or savings and loan
association located in the State of Colorado as now or hereafter provided
in any applicable statute of the State of Colorado or in a bank or savings
and loan association located outside the State of Colorado, provided that
such deposit is insured by the Federal Deposit Insurance Corporation or
collateralized as provided under the laws governing deposit of public
funds of the state in which such institution is located."
B. In addition, the City shall maintain a list of authorized banks and savings
and loans which meet the following criteria and are eligible to provide
banking services to the City. To be eligible for authorization, a bank or
savings and loan must meet the minimum credit criteria (described below)
of a credit analysis provided by a commercially available bank rating
service. Banks or savings and loans failing to meet the minimum criteria,
or in the judgment of the Financial Officer no longer offering adequate
safety to the City, will be removed from the list. Although a bank or
savings and loan is on the qualified list, it will still be required to pledge
collateral on all deposits and investments, pursuant to State Law.
C. The City shall utilize a commercially available bank rating service to
perform a credit analysis on banks and savings and loans. The bank
rating guidelines will be calculated using publicly available financial
information obtained from the release of the preliminary reports of
condition and reports on income from the Federal Reserve. Data
obtained from the bank rating service will include factors covering the
following: overall rating, liquidity policy, credit risk policy, interest rate
Policy, profitability and capital policy.
D. The following are the minimum credit criteria for a bank or savings and
loan:
The overall credit rating must be average or above according to
nationally -recognized rating firms.
2. The credit risk and capital policy rating must be average or above,
its equivalent, regardless of the overall credit rating, and
3. The institution must qualify as a depository of public funds in
Colorado as defined in CRS 24-75-603.
E. The Financial Officer shall maintain a file of all credit rating analysis
reports performed for the City.
XI. ETHICS AND CONFLICTS OF INTEREST
City officers and employees involved in the investment process shall adhere to
the rules of conduct concerning conflicts of interest as stated in Art. IV, Section
9(b) of the Charter of the City of Fort Collins, Colorado.
XII. POLICY REVISIONS
This Investment Policy will be reviewed periodically by the City Manager and the
Financial Officer and may be amended by City Council as conditions warrant.
Prepared by: Date:
Alan James Krcmarik
Financial Officer
Effective Date:October 1. 1993
Section 1. Introduction and Information about the City and the Finance Department
Purpose and Objectives
The City of Fort Collins, Colorado, and its Finance Department (hereafter referred to as the "City")
is seeking proposals for an investment, safekeeping and custodial services contract for the City's
investment portfolio assets. These services are to meet the City's needs as described in this
Request for Proposal (RFP).
This RFP contains the instructions governing the proposals to be submitted, the material to be
included within the RFP, minimum requirements that must be met to be eligible for consideration,
and other requirements.
Background Information
The City is a municipal corporation organized under Article XX of the Constitution of the State of
Colorado. The City derives its powers from the State Constitution, applicable Colorado Revised
Statues, and the home rule charter.
The City recognizes the custody of its securities and assets as an integral part of its cash
management and treasury management program. The leading priority of the City in investment,
safekeeping and custodial services is the safety of public funds and assets. Through this contract
the City intends to assure the safety of its assets, minimize investment, safekeeping and custodial
costs and maximize its investment flexibility and capability.
Investment, safekeeping and custodial service providers are being solicited from banks within
Colorado, banks outside Colorado, and non -bank custody providers (hereafter referred to as the
"Providers"). The institution chosen through this process will be responsible for the safekeeping of
the City's securities and for the safe transfer of public funds. The Provider's services will
complement those of the City's banking services provider and will be required to work with City staff
to assure safety and operational efficiencies. All funds and assets of the City are covered by this
proposal and include: operating funds, bond funds, and pension funds.
The City's current provider of investment, safekeeping and custodial services is Bank of New York
(BNY) Western Trust Company. BNY Western Trust has provided these services to the City for the
past five years. According to a separate agreement and not subject to this RFP, First National Bank
of Fort Collins provides primary banking services to the City.
This contract does not include investment advisory or management services. The City reserves its
right to invest as it chooses and the Provider will execute on the proper order of authorized City
representatives. The Provider will not be responsible for the composition, compliance or
performance of the City's portfolio.
Current Investment Practices
During the first seven months of 2001, the City's portfolio averaged approximately $235 million,
consisting of repurchase agreements and a variety of securities that are legal investments under
the Fort Collins Municipal Code. The Financial Officer or his assigned representatives are
authorized to buy, sell, and exchange all such instruments. All transactions are handled on a
delivery -versus -payment basis. Dependent upon market conditions, the portfolio is traded somewhat
actively, and investment transactions can be expected daily including collateral transfers for
repurchase agreements. A copy of the City's Investment Policy is attached as Appendix A.
APPENDIX B
Investment Portfolio Listing
As of: July 31, 2001
Asset Short Description
ASSOCIATES CORP NORTH AMER
ASSOCIATES CORP NORTH AMER NT
ASSOCIATES CORP NORTH AMER
ASSOCIATES CORP NORTH AMER SR NT
ASSOCIATES CORP NORTH AMER SR NT
BP AMER INC M/T/N
COMMERCIAL CR GROUP INC
FCC NATL BK WILMINGTON DEL
FEDERAL NATL MTG ASSN
FEDERAL HOME LN MTG CORP DEB
FEDERAL HOME LN MTG CORP DEB
M/T/N
FEDERAL HOME LN MTG CORP DEB
FEDERAL NATL MTG ASSN CPN STRIPS
FEDERAL HOME LN MTG CORP DEB
M/T/N
FEDERAL FARM CR BKS CONS
FEDERAL HOME LN MTG CORP DEB
M/T/N
FEDERAL HOME LN MTG CORP DEB
M/T/N
FEDERAL NATL MTG ASSN M/T/N
FEDERAL NATL MTG ASSN
FEDERAL NATL MTG ASSN
FEDERAL NATL MTG ASSN M/T/N
FEDERAL NATL MTG ASSN
FEDERAL NATL MTG ASSN M/T/N
FEDERAL NATL MTG ASSN
FEDERAL NATL MTG ASSN M/T/N
FEDERAL NATL MTG ASSN M/T/N
FEDERAL HOME LN MTG CORP M/T/N
FEDERAL NATL MTG ASSN M/T/N
FEDERAL NAT'L MTGE ASSN M/T/N
Cusip
Interest
Maturi t
Quanti
Price
Market Value
Price date
Rate
Date
046003JS9
046003J1-13
5.7500
6.1000
11/1/03 $
2,000,000.00
102.243000 $
2,044,860.00
31-Jul-01
046003JY6
5.5000
1/15/05 $
2/15/04 $
580,000.00
2,000,000.00
102.685000 $
101.882000 $
595,573.00
2,037,640.00
31-Jul-01
046003FF1
046003HM4
6.6250
6/15/05 $
200,000.00
104.015625 $
208,031.25
31-Jul-01
31-Jul-01
05563HAP5
6.8750
8.0100
8/1/03 $
2,000,000.00
104.179000 $
2,083,580.00
31-Jul-01
201615DG3
6.3750
10/10/01 $
9/15/02 $
1,000,000.00
1,000,000.00
100.802000 $
102.575000 $
1,008,020.00
1,025,750.00
31-Jul-01
30241NU45
5.7000
5/3/02 $
2,000,000.00
101.413000 $
2,028,260.00
31-Jul-01
31-Jul-01
31359MBC6
312923V44
6.3750
1/16/02 $
2,000,000.00
101.218750 $
2,024,375.00
31-Jul-01
312923PQ2
5.1400
5.5100
1/10/05 $
2,000,000.00
100.446000 $
2,008,920.00
31-Jul-01
3/19/04 $
2,000,000.00
100.225000 $
2,004,500.00
31-Jul-01
312902NV7
31358CC87
7.0100
12/26/03 $
300,000.00
101.314000 $
303,942.00
31-Jul-01
312923QS7
5.6400
8/15/01 $
3/22/05 $
1,600,000.00
1,000,000.00
99.856000 $
100.401000 $
1,597,696.00
1,004,010.00
31-Jul-01
31-Jul-01
31331HXJ1
312923YV1
6.3900
7/7/04 $
2,000,000.00
104.875000 $
2,097,500.00
31-Jul-01
5.1250
11/4/04 $
1,000,000.00
100.637000 $
1,006,370.00
31-Jul-01
312923A54
5.0000
5/24/04 $
2,000,000.00
100.625000 $
2,012,500.00
31-Jul-01
3136FOPD8
31359MHL0
5.0500
6/18/04 $
1,000,000.00
100.968750 $
1,009,687.50
31-Jul-01
31359MHC0
5.7500
5.5000
3127/06 $
2/27/04 $
400,000.00
1,000,000.00
100.843750 $
101.750000 $
403,375.00
1,017,500.00
31-Jul-01
31359MHS5
5.0500
4/8/04 $
2,000,000.00
101.062500 $
2,021,250.00
31-Jul-01
31-Jul-01
31359MHE6
31364KYM6
5.3750
7.3500
3/8/04 $
2,000,000.00
100.968750 $
2,019,375.00
31-Jul-01
31359MJM6
5.2500
11/12/10 $
6/4/04 $
500,000.00
2,000,000.00
105.031250 $
101.031250 $
525,156.25
2,020,625.00
31-Jul-01
31364GBH1
5.2600
10/2/03 $
3,000,000.00
101.979000 $
3,059,370.00
31-Jul-01
31-Jul-01
31364C4D7
312902653
6.1500
8/5/02 $
1,630,000.00
102.213000 $
1,666,071.90
31-Jul-01
31364KP53
7.6250
5.5000
12/14/15 $
1/23/04 $
1,000,000.00
101.685000 $
1,016,850.00
31-Jul-01
31364GKB4
5.2700
12/3/01 $
2,000,000.00
1,000,000.00
102.062500 $
100.472000 $
2,041,250.00
1,004,720.00
31-Jul-01
31-Jul-01
FEDERAL NATL MTG ASSN M/T/N
FEDERAL NATL MTG ASSN
FEDERAL HOME LN BKS DEB
FEDERAL NATL MTG ASSN M/T/N
FEDERAL HOME LN BKS DEB
FEDERAL HOME LN BKS
FEDERAL HOME LN BKS
FEDERAL HOME LN BKS
FEDERAL HOME LN BKS DEB
FEDERAL HOME LN BKS
FEDERAL HOME LN BKS DEB
FEDERAL HOME LN BKS DEB
FEDERAL HOME LN BKS DEB
FEDERAL NATL MTG ASSN M/T/N
FEDERAL NATL MTG ASSN M/T/N
FEDERAL HOME LN BKS DEB
FEDERAL NATL MTG ASSN M/T/N
FEDERAL NATL MTG ASSN M/T/N
FEDERAL HOME LN BKS DEB
FEDERAL NATL MTG ASSN M/T/N
FEDERAL NATL MTG ASSN
FEDERAL HOME LN BKS DEB
FEDERAL HOME LN BKS DEB
FEDERAL HOME LN BKS DEB
FEDERAL HOME LN BKS DEB
FEDERAL HOME LN BKS DEB
FEDERAL HOME LN BKS DEB
FEDERAL HOME LN MTG CORP DEB
M/T/N
FEDERAL HOME LN BKS DEB
FEDERAL HOME LOAN BANK CONS BD
E/M/T/N
FEDERAL HOME LN BKS DEB
FEDERAL HOME LN BKS DEB
FEDERAL HOME LN BKS DEB
FEDERAL NAT'L MTGE ASSN
GENERAL ELEC CAP CORP M/T/N
GENERAL ELECTRIC CAP CORP DEB
31364C4T2
6.4400
8/14/02 $
1,000,000.00
102.548000 $
1,025,480.00
31-Jul-01
3136FOME9
5.2500
6/14/04 $
2,000,000.00
101.093750 $
2,021,875.00
31-Jul-01
3133M2GT8
6.0200
12/3/02 $
1,100,000.00
102.843750 $
1,131,281.25
31-Jul-01
31364K7117
5.3500
9/22/04 $
2,000,000.00
100.843750 $
2,016,875.00
31-Jul-01
3133M2N29
5.5300
1/15/03 $
1,000,000.00
102.281250 $
1,022,812.50
31-Jul-01
3133M5AM2
5.6400
8/10/01 $
2,000,000.00
100.062500 $
2,001,250.00
31-Jul-01
3133MCTK1
6.5800
1/18/11 $
1,000,000.00
100.656250 $
1,006,562.50
31-Jul-01
3133M5YS3
5.0650
10/21/02 $
1,000,000.00
101.531250 $
1,015,312.50
31-Jul-01
3133M6S25
5.1900
10/20/03 $
1,000,000.00
101.843750 $
1,018,437.50
31-Jul-01
3133M9DB5
6.1900
7/8/02 $
1,000,000.00
102.343750 $
1,023,437.50
31-Jul-01
3133MABE8
6.0000
11/15/01 $
1,000,000.00
100.656250 $
1,006,562.50
31-Jul-01
3133M9NR9
6.6700
8/23/02 $
1,000,000.00
103.093750 $
1,030,937.50
31-Jul-01
3133M9RW
6.5900
9/10/02 $
1,000,000.00
100.312500 $
1,003,125.00
31-Jul-01
4
31364K4R8
5.4600
3/12/04 $
2,000,000.00
101.031250 $
2,020,625.00
31-Jul-01
3136FOAK8
5.2500
10/4/04 $
2,000,000.00
100.750000 $
2,015,000.00
31-Jul-01
3133MAWN
7.0000
2/14/03 $
2,000,000.00
104.500000 $
2,090,000.00
31-Jul-01
5
3136FOES7
5.3200
10/26/04 $
2,000,000.00
100.875000 $
2,017,500.00
31-Jul-01
3136FOLR1
5.2500
5/21/04 $
2,000,000.00
101.000000 $
2,020,000.00
31-Jul-01
3133MCM69
7.2500
12/20/10 $
500,000.00
103.468750 $
517,343.75
31-Jul-01
31364K3V0
5.4300
9/20/04 $
1,000,000.00
100.968750 $
1,009,687.50
31-Jul-01
31364K7J3
5.3500
9/22/04 $
2,000,000.00
100.843750 $
2,016,875.00
31-Jul-01
3133ME5J6
5.2400
10/18/04 $
2,000,000.00
101.125000 $
2,022,500.00
31-Jul-01
3133ME5S6
5.3200
10/18/04 $
2,000,000.00
100.906250 $
2,018,125.00
31-Jul-01
3133MEJ36
5.3400
10/26/04 $
1,000,000.00
100.937500 $
1,009,375.00
31-Jul-01
3133MEKF7
5.5000
11/3/04 $
2,000,000.00
101.187500 $
2,023,750.00
31-Jul-01
3133MEN72
5.1700
11/4/04 $
2,000,000.00
100.937500 $
2,018,750.00
31-Jul-01
3133MEWX
4.8750
5/14/04 $
3,000,000.00
100.906250 $
3,027,187.50
31-Jul-01
5
312923R98
5.2500
12/20/04 $
3,000,000.00
100.793000 $
3,023,790.00
31-Jul-01
3133MFJC3
5.2500
6/11/04 $
1,000,000.00
101.031250 $
1,010,312.50
31-Jul-01
3133M5BC3
5.5000
8/13/01 $
4,000,000.00
100.062500 $
4,002,500.00
31-Jul-01
3133MFYP7
5.0000
7/9/04 $
1,000,000.00
100.625000 $
1,006,250.00
31-Jul-01
3133MG6M3
5.1100
7/23/04 $
1,000,000.00
101.156250 $
1,011,562.50
31-Jul-01
3133MFZE1
5.2600
1/25/05 $
2,000,000.00
100.906250 $
2,018,125.00
31-Jul-01
31359MEN9
5.3750
3/15/02 $
2,000,000.00
101.062500 $
2,021,250.00
31-Jul-01
36962FHG4
6.3000
3/10/03 $
2,000,000.00
103.126000 $
2,062,520.00
31-Jul-01
369622AW5
5.5000
11/1/01 $
1,000,000.00
100.161000 $
1,001,610.00
31-Jul-01
GENERAL ELEC CAP CORP M/T/N
ILLINOIS BELL TEL CO DEB
36962GSD7
5.5000
4/15/02 $
2,000,000.00
101.226000 $
2,024,520.00
31-Jul-01
MERRILL LYNCH & CO INC
451794AV3
590188DU9
5.8000
8.0000
2/1/04 $ 725,000.00
102.333000 $
741,914.25
31-Jul-01
MERRILL LYNCH & CO INC
590188HZ4
6.0000
2/1/02 $
1,000,000.00
101.981000 $
1,019,810.00
31-Jul-01
MERRILL LYNCH & CO INC M/T/N
59018YAW1
7.1800
2/12/03 $
1,000,000.00
102.491000 $
1,024,910.00
31-Jul-01
MERRILL LYNCH & CO INC M/T/N
59018YJC6
5.4600
2/11/03 $
1,000,000.00
103.821000 $
1,038,210.00
31-Jul-01
MORGAN ST DEAN WITTER
617446DS5
7.1250
5/7/04 $
1/15/03 $
1,000,000.00
2,000,000.00
101.290000 $
1,012,900.00
31-Jul-01
MORGAN STANLEY DEAN WITTER M/T/N 61745EQN4
7.1250
8/15/03 $
2,000,000.00
103.905000 $
2,078,100.00
31-Jul-01
SOUTHWESTERN BELL TEL CO
845335BU1
6.2500
10/15/02 $
104.549000 $
2,090,980.00
31-Jul-01
STUDENT LN MARKETING ASSN M/T/N
86387UAX3
5.0000
1,000,000.00
102.394000 $
1,023,940.00
31-Jul-01
TOYOTA MTR CR CORP
892332AF4
5.5000
6/30/04 $
9/17/01 $
1,000,000.00
1,000,000.00
101.156250 $
1,011,562.50
31-Jul-01
TOYOTA MTR CR CORP M/T/N
89233PMB9
7.0000
8/5/02 $
100.198000 $
1,001,980.00
31-Jul-01
U S TREASURY NOTES
U S TREASURY NOTES
912827F49
7.5000
5/15/02 $
1,000,000.00
1,000,000.00
103.042000 $
103.125000 $
1,030,420.00
1,031,250.00
31-Jul-01
U S TREASURY BONDS
9128272G6
912810BZ0
6.2500
1/31/02 $
2,000,000.00
101.375000 $
2,027,500.00
31-Jul-01
31-Jul-01
USAA CAP CORP 144A
90327QCH0
7.8750
7.4100
11/15/07 $
2,310,000.00
105.156250 $
2,429,109.38
31-Jul-01
U S TREASURY NOTES
912827Z88
6.2500
6/30/03 $
10/31/01 $
2,000,000.00
2,000,000.00
105.133000 $
2,102,660.00
31-Jul-01
U S TREASURY NOTES
912827Z54
6.3750
9/30/01 $
6,000,000.00
100.656250 $
2,013,125.00
31-Jul-01
U S TREASURY NOTES
9.13E+07
6.1250
12/31/01 $
2,000,000.00
100.437500 $
6,026,250.00
31-Jul-01
U S TREASURY NOTES
FEDERAL HOME LN BKS
9128272Y7
6.2500
6/30/02 $
3,000,000.00
101.093750 $
102.468750 $
2,021,875.00
3,074,062.50
31-Jul-01
31-Jul-01
FEDERAL HOME LN BKS DEB
3133MBHE0
3133M7J64
8.1250
5.1000
5/24/10 $
500,000.00
103.531250 $
517,656.25
31-Jul-01
FEDERAL FARM CR BKS CONS DEB
31331HWT0
5.2500
2/5/04 $
1,300,000.00
101.593750 $
1,320,718.75
31-Jul-01
FEDERAL HOME LN BKS
3133MGHM
6.0000
5/1/02 $
7/26107 $
2,000,000.00
1,000,000.00
101.218750 $
2,024,375.00
31-Jul-01
101.031250 $
1,010,312.50
31-Jul-01
FEDERAL HOME LOAN BANK
TENNESSEE VALLEY AUTH
3133MEHL8
880591DE9
4.8750
4/16/04 $
1,000,000.00
100,937500 $
1,009,375.00
31-Jul-01
MORGAN STANLEY DEAN WITTER M/T/N
617446DE6
6.0000
5.6250
9/24/02 $
1,000,000.00
102.390625 $
1,023,906.25
31-Jul-01
GOV'T NAT'L MTGE ASSN POOL #
362180MX6
9.5000
1/20/04 $
10/15/17 $
3,000,000.00
2,000,000.00
101.975000 $
3,059,250.00
31-Jul-01
237174
109.999000 $
65,513.69
31-Jul-01
GOV'T NAT'L MTGE ASSN POOL #
210146
3621721-30
8.5000
3/15/17 $
6,014,592.00
106.937000 $
963,893.25
31-Jul-01
GOV'T NAT'L MTGE ASSN POOL #
170855
36216PWQ
8.5000
4/15/17 $
2,042,513.00
106.937000 $
164,722.22
31-Jul-01
GOV'T NAT'L MTGE ASSN POOL #
178077
7
36216XXE6
8.5000
8/15/16 $
1,020,684.00 106.923000 $
98,013.49
31-Jul-01
GOV'T NAT'L MTGE ASSN POOL #
195602
36217KGK8
8.5000
1/15/17 $
1,000,000.00 106.923000 $
94,274.66
31-Jul-01
GOV'T NAT'L MTGE ASSN POOL #
219734
36218EBB6
9.5000
9/15/17 $
1,000,000.00 109.999000 $
114,642.95
31-Jul-01
REPO UBS PAINEWEBBER INC
R21213220
3.8050
8/6/01 $ 91,000,000.00
$ 91,000,000.00
MERRILL LYNCH & CO INC M/T/N
USAA CAP CORP M/T/N *PP*
59018YGA3
90327QCD9
5.7000 2/6/04 $
1,000,000.00
101.890000
$
1,018,900.00
31-Jul-01
JPM INSTL SERVICE TRSY M M FD # 369
S99995280
6.9000 11/1/02 $
1,000,000.00
103.195000
$
1,031,950.00
31-Jul-01
FEDERAL HOME LN BKS DEB
3133M2M79
- $
5.6000 1/21/03 $
2,051,132.93
2,000,000.00
1.000000
$
2,051,132.93
20-Jul-01
Total:
102.406250
$
2,048,125.00
31-Jul-01
$255,773,921.93
$246,647,185.97
APPENDIX C
INVESTMENT PORTFOLIO LISTING
CITY OF FORT COLLINS, COLORADO
CASH MANAGEMENT AND INVESTMENT POLICY
September 7, 1993
The Financial Officer of the City of Fort Collins, Colorado, is charged with the responsibility to invest
funds of the City. Currently, these funds must be placed in investments appropriately authorized
by the City of Fort Collins Ordinance No. 108, 1988. The following Investment Policy prescribes the
manner in which the program authorized by the ordinance will be administered to ensure effective
and sound fiscal management.
SCOPE
OBJECTIVES
This policy shall apply to the investment of all general and special funds of the
City of Fort Collins (hereinafter referred to as the "the City") over which it
exercises financial control, including the City of Fort Collins Fire Fighters Pension
and General Employees Retirement funds.
The City's principal cash management and investment objectives are:
G. Preservation of capital through the protection of investment principal.
H. To maximize the cash available for investment.
I. Maintenance of sufficient liquidity to meet the City's cash needs.
J. Diversification of investments to avoid incurring unreasonable risk regarding a
specific security, maturity period, or institution.
K. To maximize the rate of return for prevailing market conditions for eligible
securities.
L. Conformance with all Federal, State and other legal requirements.
DELEGATION OF AUTHORITY
Responsibility for the collection and investment of all City funds is assigned to the
Financial Officer by the Charter, subjected to direction of Council by resolution.
The Financial Officer may appoint other members of the Finance Department to
assist in the cash management and investment functions.
The City Manager shall appoint an investment committee, consisting of the
Financial Officer and at least two (2) other employees of the City knowledgeable
in the area of governmental investments. The purpose of the investment
committee shall be to provide advice to the Financial Officer regarding the
operation of the cash management and investment program. The investment
committee shall review and discuss the economic outlook for the ensuing
investment period, the diversification and maturity structure of the portfolio,
potential risks to the investment of City funds, and the conformance of the cash
management and investment program to the adopted policies. The investment
committee shall also review the actual rate of return on the portfolio as compared
to the target rate of return.
The Financial Officer shall have the discretion to appoint one or more Investment
Advisors, registered with the Securities and Exchange Commission under the
Investment Advisors Act of 1940, to assist in the management of a portion of the
City's authorized purchasing procedures for selecting professional services. All
investments made through such Investment Advisors shall be within the
guidelines of this Investment Policy with regard to the City's assets.
A list of individuals and institutions who are authorized to purchase, sell and wire
securities or funds on behalf of the City shall be maintained by the Financial
Officer. Such list shall be provided to a financial institution prior to the City
conducting any investment transactions with said institution.
The Financial Officer shall be responsible for all investment decisions and
activities, and shall establish written administrative procedures for the operation
of the City's investment program consistent with the Investment Policy. The
Financial Officer and designees acting within the guidelines of this investment
policy shall not be held personally liable for specific investment transactions.
FINANCIAL OFFICER'S PROGRAM RESPONSIBILITIES
F. Safekeeping
4. Wireable investment securities purchased by the City will be delivered
by book entry and held in third party safekeeping by a Federal
Reserve member financial institution designated as the City's
depository.
5. The purchase of wireable securities shall be on a deliver -versus -
payment basis. Sale of wireable securities shall be on a payment -
versus -delivery basis.
6. Nonwireable securities may be:
b. Held in safekeeping with a firm recognized as a Primary Dealer of
the Federal Reserve Board of New York, or financial institution
authorized by the City, with the following provisions:
(4) The dollar value of securities held by any firm shall not
exceed the firm's insurance limits for the City's account.
(5) Firms must supply the City with documentation supporting
their insurance limits as well as the name of their insurers.
Such documentation shall be maintained by the Financial
Officer.
(6) City staff shall monitor and update the insurance data
required by this section on a quarterly basis.
b. Physically delivered and held in third party safekeeping by a Federal Reserve
member financial institution approved by the City.
G. Reporting
On a quarterly basis, a report shall be prepared listing all of the
investments held by the City, transaction summaries and performance
results. The quarterly investment report shall be submitted in a timely
manner to the City Manager. A summary investment report shall be
published in a newspaper of local publication, or other suitable publication
of general local circulation on an annual basis.
H. Performance Review
5. The Financial Officer and designated investment staff shall meet
at least quarterly to review the portfolio's adherence to appropriate
risk levels and to compare the portfolio's total return to the
established investment objectives and goals.
6. Cash and investment performance standards, to be determined
quarterly, shall include:
Optimal daily cash balance to be maintained in both the
demand account and savings account.
e. The yield as a measure of net return to be achieved on
investments.
The percentage of cash balances to be invested daily.
7. The Financial Officer shall periodically establish a benchmark yield
for the City's investments which shall be equal to the average yield
on the U.S. Treasury security which most closely corresponds to
the portfolio's actual weighted average maturity.
8. The Financial Officer, in order to determine the actual rate of
return to the City on any portion of the portfolio managed by an
investment advisor, shall include all of the advisor's expenses and
fees in the computation of the rate of return.
Investment Transactions
5. All investment transactions initiated by the City must be executed
with brokers -dealers and financial institutions that have been
authorized by the City. Each city -initiated transaction for publicly -
traded funds must be competitively transacted with a least two
authorized broker -dealers or financial institutions.
PRUDENCE
6. In order to insure that the City receives competitive pricing, a
record shall be maintained by the City for securities transactions.
7. Commercial paper may be bought directly from the issuers and be
held in third party safekeeping.
8. In lieu of taking delivery through the Federal Reserve System or
the Depository Trust Company (DTC), if an investment opportunity
can increase yield but maintain prudent safety requirements, the
charges for transmitting, transacting, or performing third party
safekeeping for securities may be charged against interest income
generated by the transaction.
The Financial Officer shall:
7. Prepare a cash budget in order to determine cash needs time
horizons, and the availability of cash to invest.
Analyze market conditions of the various investment securities on
a daily basis to determine the maximum yield obtainable.
9. Prepare investment assumptions as to market conditions, cash
availability and starting mix of investment securities.
10. Prepare investment strategies or actions to be taken based upon
assumptions and actions to be taken in the event of an
unexpected drop in cash flow or unexpected revenues.
11. Whenever possible, pool cash from the various City Funds to
enhance investment capabilities, thus maximizing investment
income. Interest income will be distributed to the participating
funds in proportion to each fund's level of contribution.
12. Prepare strategies that will maximize amount of cash available for
investment.
F. The Financial Officer shall promulgate administrative procedures as
deemed necessary.
The standard of prudence to be used to managing the City's assets is the
"prudent investor" rule, which states, "Investments shall be made with judgment
and care, under circumstances then prevailing, which persons of prudence,
discretion and intelligence exercise in the management of their own affairs, not
for speculation, but for investment considering the probable safety of their capital
as well as the probable income to be derived."
ELIGIBLE INVESTMENT
D. As a home rule City, Fort Collins may adopt a list of acceptable
investment instruments differing from those outlined in CRS 24-75-601.1,
"Legal Investment of Public Funds". The City Council has adopted
Ordinance No. 108, 1988 of the Council of the City of Fort Collins
"Providing for the Investment and Deposit of Public Funds and Moneys of
the City of Fort Collins" (hereinafter referred to as "Ordinance No. 108,
1988").
E. The following is an outline of authorized investments with certain
additional qualifications. It is intended to define the administrative
boundaries within which these investments will be conducted:
16. Any securities now or hereafter designed as legal investment for
municipalities in any applicable statute of the State of Colorado.
17. Interest -bearing accounts or time certificates of deposit at state or
federally -chartered savings and loan associations in Colorado
which have been designated as depositories for public moneys by
the State of Colorado.
18. Interest -bearing accounts or time certificates of deposit in state or
national banks doing business in Colorado which have been
designated as depositories for public moneys by the State of
Colorado.
19. Obligations of the United States Government, such as treasury
bills, treasury notes and treasury bonds.
20. Obligations issued by any agency, instrumentality or public
corporation of the United States.
21. Obligations issued by or on behalf of the City.
22. Obligations issued by or on behalf of any state of the United
States, any political subdivision, agency, instrumentality or public
corporation thereof having an investment grade rating from
Moody's Investors Service or Standard & Poor's Corporation.
Investment Grade means one of the top three highest rating
categories.
23. Prime -rated bankers acceptances shall have a maturity of six
months or less and be issued on domestic banks or branches of
foreign banks domiciled in the U.S. and operating under U.S.
banking laws.
24. Prime -rated commercial paper shall have a maturity of six months
or less and be issued on U.S. corporations which are rated A-1 by
Moody's, P-1 by Standard and Poor's or 1+ by Duff and Phelps,
Inc.
25. Guaranteed investment contracts of domestically -regulated
insurance companies having a claims -paying ability rating of "AA"
or better from Standard & Poor's Corporation and have a rating of
A+ from Best Rating Services.
26. Repurchase and reverse repurchase agreements of any
marketable security described in Ordinance No. 108, 1988 which
afford the City a perfected security interest in such security.
Repurchase Agreements shall be collateralized at a minimum of
102 percent of the dollar value of the transaction. The transaction
shall be on delivery -versus -payment basis to the City's depository
bank's account at the Federal Reserve Bank.
27. Local government investment pools authorized under the laws of
the State of Colorado.
28. Shares in any money market fund or account, unit investment trust
or open- or closed -end investment company, all of the net assets
of which are invested in securities described in this section, to the
extent not prohibited by Colorado Constitution Article XI, Section 2
or by the Colorado Revised Statutes. City investment in such
funds or trusts shall be limited to funds and trusts which meet the
following conditions:
e. The Money Market Fund shall be a domestic money market
mutual fund registered with the Federal Securities and
Exchange Commission (SEC) and meeting the
requirements of Rule 2a-7 of the Investment Company Act
of 1940. The unit investment trust maximum maturity will
not exceed Section VIII of these policies.
f. The fund or trust shall be "no load" i.e., no commission fee
shall be charged on purchases or sales of shares.
g. The investment advisor or administrator of the fund or trust
must be specifically prohibited from conducting securities
transactions with its sponsoring institution.
h. The net asset value per share of the fund shall be held
constant at a certain amount (usually $1.00 per share).
The market value of a unit investment trust share shall be
compared to market monthly.
29. Mutual funds that include eligible investments found in VI. B. The
funds utilized must have a top rating for at least five years in the
national rating service Morningstar Mutual Funds.
30. For bond reserve funds only, treasury securities with a put option
may be used to control and immunize arbitrage rebates. To
maximize arbitrage the interest income of the security may pay for
the put.
In addition to those investments listed in subsection B above, pension
funds may be invested as follows:
As of July 31, 2001, the portfolio allocation was as follows:
Par Value
# Securities
US Government Treasuries
$ 18,310,000
7
US Government Agencies
96,830,000
63
GNMAs
1,399,020
6
Corporate Bonds
34,505,000
25
Commercial Paper
0
0
Bankers' Acceptances
0
0
Repurchase Agreements
93,000,000
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The City uses overnight or term repurchase agreements for short-term cash needs. The Provider
must be able to act as third party custodian for this collateral. Repurchase agreements normally
range from $50 to $90 million. Primary securities brokers or dealers (broker/dealers) will deliver
between 2 and 4 pieces of collateral per repo transaction. The average repo size for the preceding
seven months has been $84 million daily.
A copy of the current portfolio is attached as Appendix B. If new security types are authorized for
use during the contract period, the City expects the Provider to make every effort to provide the
needed investment, safekeeping and custodial service.
Invitation to Propose
By this Request for Proposal, the City is contacting prospective custody providers that have an
interest or are known to meet the "Requirements to Propose" as specified below. All interested
Providers that were not contacted are invited to submit a proposal in accordance with the policies,
procedures, and dates set forth herein. NOTE: In the event of a "no proposal," please sign the
RFP, indicate "No Proposal," and return.
The intent of this Request for Proposal is to select one custodian for the City. The City does not
intend to split its investment, safekeeping and custodial services between entities. The City may
decide to undertake securities lending transactions through an ancillary selection process.
The City has no expressed or implied obligation to reimburse responding Providers for any
expenses incurred in preparing proposals in response to this request.
All material submitted to the City of Fort Collins in response to or regarding this RFP becomes the
property of the City and will be returned to the institution only at the City's option.
The City reserves the right to withdraw this RFP at any time and for any reason. The City may issue
any combination of clarifications, modifications, or amendments it may deem appropriate.
Equipment trust certificates;
7. Real property and loans secured by first mortgages or deeds of
trust on real property; participation guarantee agreements with
domestically -regulated life insurance companies;
8. Tax certificates issued by any county treasurer of Colorado upon
any real property located within the state of Colorado; and
g. Common or preferred stock or debt obligations, convertible or
otherwise, of private corporations organized under the laws of any
state in the United States.
10. International mutual funds that have a five star rating for at least
five years from a national rating agency service Morningstar
Mutual Funds.
XIII. INVESTMENT DIVERSIFICATION
It is the intent of the City to diversify the investment instruments within the
Portfolio to avoid incurring unreasonable risks inherent in over -investing in
specific instruments, individual financial institutions or maturities. The asset
allocation in the portfolio should be flexible, depending upon the outlook for the
economy and the securities markets.
XIV. INVESTMENT MATURITY AND LIQUIDITY
Eighty percent of the City's investments, excluding pension funds, shall be limited
to maturities not exceeding five years. In addition, the weighted average maturity
life of the total portfolio, excluding pension funds and long-term reserve funds, at
no time shall exceed two years. The City shall at all times maintain five percent of
its total investment portfolio in instruments maturing in 120 days or less.
XV. Before any repurchase agreements shall be executed with an authorized broker -
dealer or financial institution, a Master Repurchase Agreement, approved as to
form and content by the City Attorney, must be signed between the City and that
broker -dealer or financial institution. The Financial Officer shall maintain a file of
all Master Repurchase Agreements. The purchase and sale of all deliverable
securities shall be on a delivery -versus -payment basis or in case of a sale on a
payment -versus -delivery basis.
XVI. SALE OF INVESTMENT AT A LOSS
The City seeks an active, rather than passive, management of its portfolio assets.
Assets may be sold at a loss only if the Financial Officer or designee decides,
based upon sufficient analysis, that the sale of the security is in the best long-
term interest of the City. Sufficient analysis shall be provided to support each
investment decision in which a loss is realized. This documentation shall be kept
at least two (2) years from the date of sale.
XVII. SELECTION OF BANKS AND SAVINGS AND LOANS
F. As outlined in Section 2 of Ordinance No. 108, 1988: `The City may
deposit public funds and moneys in any bank or savings and loan
association located in the State of Colorado as now or hereafter provided
in any applicable statute of the State of Colorado or in a bank or savings
and loan association located outside the State of Colorado, provided that
such deposit is insured by the Federal Deposit Insurance Corporation or
collateralized as provided under the laws governing deposit of public
funds of the state in which such institution is located."
G. In addition, the City shall maintain a list of authorized banks and savings
and loans which meet the following criteria and are eligible to provide
banking services to the City. To be eligible for authorization, a bank or
savings and loan must meet the minimum credit criteria (described below)
of a credit analysis provided by a commercially available bank rating
service. Banks or savings and loans failing to meet the minimum criteria,
or in the judgment of the Financial Officer no longer offering adequate
safety to the City, will be removed from the list. Although a bank or
savings and loan is on the qualified list, it will still be required to pledge
collateral on all deposits and investments, pursuant to State Law.
H. The City shall utilize a commercially available bank rating service to
perform a credit analysis on banks and savings and loans. The bank
rating guidelines will be calculated using publicly available financial
information obtained from the release of the preliminary reports of
condition and reports on income from the Federal Reserve. Data
obtained from the bank rating service will include factors covering the
following: overall rating, liquidity policy, credit risk policy, interest rate
Policy, profitability and capital policy.
The following are the minimum credit criteria for a bank or savings and
loan:
4. The overall credit rating must be average or above according to
nationally -recognized rating firms.
5. The credit risk and capital policy rating must be average or above,
its equivalent, regardless of the overall credit rating, and
6. The institution must qualify as a depository of public funds in
Colorado as defined in CRS 24-75-603.
The Financial Officer shall maintain a file of all credit rating analysis
reports performed for the City.
XVIII. ETHICS AND CONFLICTS OF INTEREST
City officers and employees involved in the investment process shall adhere to
the rules of conduct concerning conflicts of interest as stated in Art. IV, Section
9(b) of the Charter of the City of Fort Collins, Colorado.
XIX. POLICY REVISIONS
This Investment Policy will be reviewed periodically by the City Manager and the
Financial Officer and may be amended by City Council as conditions warrant.
Prepared by: Date:
Alan James Krcmarik
Financial Officer
Effective Date:October 1 1993
APPENDIX C
SAMPLE SERVICES AGREEMENT
PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT made and entered into the day and year set forth below, by and
between THE CITY OF FORT COLLINS, COLORADO, a Municipal Corporation, hereinafter referred
to as the "City" and , [insert either a corporation, a partnership or an individual, doing business
hereinafter referred to as 'Professional'.
WITNESSETH:
In consideration of the mutual covenants and obligations herein expressed, it is agreed by
and between the parties hereto as follows:
1. Scope of Services. The Professional agrees to provide services in accordance with
the scope of services attached hereto as Exhibit "A", consisting of () a p ge[s], and
incorporated herein by this reference.
2. The Work Schedule. [Optional] The services to be performed pursuant to this
Agreement shall be performed in accordance with the Work Schedule attached hereto as Exhibit
"B", consisting of ( ) page[s], and incorporated herein by this reference.
3. Time of Commencement and Completion of Services. The services to be performed
pursuant to this Agreement shall be initiated within
( )days following execution of this
Agreement. Services shall be completed no later than
Time is of the essence. Any
extensions of the time limit set forth above must be agreed upon in writing by the parties hereto.
4. Early Termination by City. Notwithstanding the time periods contained herein, the
City may terminate this Agreement at any time without cause by providing written notice of
termination to the Professional. Such notice shall be delivered at least fifteen (15) days prior to the
termination date contained in said notice unless otherwise agreed in writing by the parties.
All notices provided under this Agreement shall be effective when mailed, postage prepaid and sent
1
to the following addresses:
In the event of any such early termination by the City, the Professional shall be paid for services
rendered prior to the date of termination, subject only to the satisfactory performance of the
Professional's obligations under this Agreement. Such payment shall be the Professional's sole right
and remedy for such termination.
5. Design Project Indemnity and Insurance Responsibility. The Professional shall be
responsible for the professional quality, technical accuracy, timely completion and the coordination
of all services rendered by the Professional, including but not limited to designs, plans, reports,
specifications, and drawings and shall, without additional compensation, promptly remedy and
correct any errors, omissions, or other deficiencies. The Professional shall indemnify, save and hold
harmless the City, its officers and employees in accordance with Colorado law, from all damages
whatsoever claimed by third parties against the City; and for the City's costs and reasonable
attorneys fees, arising directly or indirectly out of the Professional's negligent performance of any
of the services furnished under this Agreement. The Professional shall maintain commercial
general liability insurance in the amount of $500,000 combined single limits, and errors and
omissions insurance in the amount of
6. Compensation. [Use this paragraph or Option 1 below.) In consideration of the
services to be performed pursuant to this Agreement, the City agrees to pay Professional a fixed
fee in the amount of ($ ) plus reimbursable direct costs. All such fees and costs shall
not exceed ($ ). Monthly partial payments based upon the Professional's billings and
itemized statements are permissible. The amounts of all such partial payments shall be based upon
the Professional's City -verified progress in completing the services to be performed pursuant hereto
2
and upon the City's approval of the Professional's actual reimbursable expenses. Final payment
shall be made following acceptance of the work by the City. Upon final payment, all designs, plans,
reports, specifications, drawings, and other services rendered by the Professional shall become the
sole property of the City.
6. Compensation. [Option 1] In consideration of the services to be performed pursuant
to this Agreement, the City agrees to pay Professional on a time and reimbursable direct cost basis
according to the following schedule:
Hourly billing rates:
Reimbursable direct costs:
with maximum compensation (for both Professional's time and reimbursable direct costs) not to
exceed ($ ). Monthly partial payments based upon the Professional's billings and
itemized statements of reimbursable direct costs are permissible. The amounts of all such partial
Payments shall be based upon the Professional's City -verified progress in completing the services
to be performed pursuant hereto and upon the City's approval of the Professional's reimbursable
direct costs. Final payment shall be made following acceptance of the work by the City. Upon final
payment, all designs, plans, reports, specifications, drawings and other services rendered by the
Professional shall become the sole property of the City.
7. City Representative. The City will designate, prior to commencement of work, its
project representative who shall make, within the scope of his or her authority, all necessary and
Proper decisions with reference to the project. All requests for contract interpretations, change
orders, and other clarification or instruction shall be directed to the City Representative.
8. Project Drawings. [Optional] Upon conclusion of the project and before final
payment, the Professional shall provide the City with reproducible drawings of the project containing
accurate information on the project as constructed. Drawings shall be of archival quality, prepared
on stable mylar base material using a non -fading process to prove for long storage and high quality
reproduction.
3
g. Monthly Report. Commencing thirty (30) days after the date of execution of this
Agreement and every thirty (30) days thereafter, Professional is required to provide the City
Representative with a written report of the status of the work with respect to the Scope of Services,
Work Schedule, and other material information. Failure to provide any required monthly report may,
at the option of the City, suspend the processing of any partial payment request.
10. Independent Contractor. The services to be performed by Professional are those
of an independent contractor and not of an employee of the City of Fort Collins. The City shall not
be responsible for withholding any portion of Professional's compensation hereunder for the
payment of FICA, Workers' Compensation, other taxes or benefits or for any other purpose.
11. Personal Services. It is understood that the City enters into this Agreement based
on the special abilities of the Professional and that this Agreement shall be considered as an
agreement for personal services. Accordingly, the Professional shall neither assign any
responsibilities nor delegate any duties arising under this Agreement without the prior written
consent of the City.
12. Acceptance Not Waiver. The City's approval of drawings, designs, plans,
specifications, reports, and incidental work or materials furnished hereunder shall not in any way
relieve the Professional of responsibility for the quality or technical accuracy of the work. The City's
approval or acceptance of, or payment for, any of the services shall not be construed to operate as
a waiver of any rights or benefits provided to the City under this Agreement.
13. Default. Each and every term and condition hereof shall be deemed to be a material
element of this Agreement. In the event either party should fail or refuse to perform according to
the terms of this agreement, such party may be declared in default.
14. Remedies. In the event a party has been declared in default, such defaulting party
shall be allowed a period often (10) days within which to cure said default. In the event the default
remains uncorrected, the party declaring default may elect to (a) terminate the Agreement and seek
damages; (b) treat the Agreement as continuing and require specific performance; or (c) avail
0
himself of any other remedy at law or equity. If the non -defaulting party commences legal or
equitable actions against the defaulting party, the defaulting party shall be liable to the
non -defaulting party for the non -defaulting party's reasonable attorney fees and costs incurred
because of the default.
15. Binding Effect. This writing, together with the exhibits hereto, constitutes the entire
agreement between the parties and shall be binding upon said parties, their officers, employees,
agents and assigns and shall inure to the benefit of the respective survivors, heirs, personal
representatives, successors and assigns of said parties.
16. Law/Severability. The laws of the State of Colorado shall govern the construction,
interpretation, execution and enforcement of this Agreement. In the event any provision of this
Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such
holding shall not invalidate or render unenforceable any other provision of this Agreement.
5
17. Special Provisions. [Optional] Special provisions or conditions relating to the
services to be performed pursuant to this Agreement are set forth in Exhibit "_", consisting of
( ) page[s], attached hereto and incorporated herein by this reference.
THE CITY OF FORT COLLINS, COLORADO
M
John F. Fischbach
City Manager
By:
James B. O'Neill II, CPPO, FNIGP
Director of Purchasing & Risk Management
DATE:
ATTEST:
Clerk
APPROVED AS TO FORM:
Assistant City Attorney
[Insert Professional's name] or
[Insert Partnership Name] or
[Insert individual's name]
Doing business as _[insert name of business]
By:
Title:
CORPORATE PRESIDENT OR VICE PRESIDENT
Date:
ATTEST:
Corporate Secretary
(Corporate Seal)
11
Proposal Calendar
The following calendar outlines the critical dates for the City of Fort Collins Investment, Safekeeping
and Custodial Services RFP process. The City reserves the right to adjust this timetable as required
and will provide written notice of any changes to all institutions that may desire to submit a proposal.
Date Event
September 20 Written proposal inquiries due by 3:00 p.m.
September 28 Proposals due. Sealed proposals with six (6) copies.
October 15 Written evaluations completed.
October 22 Interviews, if necessary.
November 15 Evaluations completed. Contract sent to selected Provider.
November 15 to Preparation and revisions to contract; Implementation.
December 31
January 1, 2002 Contract begins.
Inquiries about the Request for Proposal and the Subject
Any questions or clarification regarding this RFP and the subjects contained therein must be made
in writing by September 20, 2001. If there is any perceived ambiguity, conflict, discrepancy,
omission, or other error in the RFP, the Provider should immediately notify the City in writing and
request modification or clarification of the document. Written responses to all submitted inquiries
will be given by written notice to all potential firms on or before September 24.
The Provider desiring to submit a proposal is responsible for clarifying any ambiguity, conflict,
discrepancy, omission, or other error in the RFP prior to submitting the proposal.
Please direct all written inquiries to: James B. O'Neill II, CPPO, FNIGP
Director of Purchasing and Risk Management
City of Fort Collins
P.O. Box 580
Fort Collins, CO 80522-0580
By facsimile: 970/221-6707
Via e-mail: joneill@fcgov.com
Such inquiries will be accepted until 3:00 p.m., September 20, 2001. All inquiries regarding content
or investment, safekeeping, and custodial services issues received by the Purchasing Department
will be forwarded to the appropriate staff person for review and will receive a response.
Contact with City personnel, other than written inquiries to Jim O'Neill, Alan Krcmarik, or Julie
Depperman, regarding this RFP may be grounds for elimination from the selection process.
4
News Release
News releases pertaining to this selection process or any part of the subject shall not be made
without prior written approval by the Financial Officer. Direct all information regarding news releases
to:
Alan Krcmarik, Financial Officer
City of Fort Collins Finance Department
P.O. Box 580
Fort Collins, CO 80522-0580
Facsimile: 970/221-6782
E-mail: akrcmarik()fcpov.com
5
Section 2. Proposal Submittal Instructions
Submittal
All proposals must be in a single sealed package and clearly marked on the outside with the RFP
number (RFP- P-807)
The U.S. Mail address for proposals is:
James B. O'Neill II, CPPO, FNIGP
Director of Purchasing and Risk Management
City of Fort Collins Purchasing Division
P.O. Box 580
Fort Collins, CO 80522-0580
If a delivery service to the office address is used, please use the following address:
James B. O'Neill II, CPPO, FNIGP
Director of Purchasing and Risk Management
City of Fort Collins Purchasing Division
215 North Mason Street, 2nd Floor
Fort Collins, CO 80524
All proposals must be received by 3:00 p.m. (according to the City's bid clock) on September 28,
2001. Any proposals received after this time will not be considered and will be returned. Faxed
proposals will not be accepted.
The City reserves the right to reject any or all proposals submitted, to waive informalities, and minor
irregularities in proposals received, and to accept any portion of a proposal or all items of a proposal
if deemed in the best interest of the City to do so.
The City reserves the right to retain all proposals submitted and to use any ideas or information
provided in a proposal regardless of whether that proposal is selected. Submittal of a proposal
indicates acceptance by the Provider of the conditions contained in the RFP unless clearly and
specifically noted in the proposal submitted and confirmed in the contract between the City and the
Provider.
According to the Colorado Open Records Act, all information submitted in response to this RFP is
a public record. Such information will be available for inspection upon completion of contract
negotiations and award. The Provider should not include as a part of the response to this RFP any
information that the Provider believes to be a trade secret or other privileged or confidential data.
If the Provider wishes to include such information in the proposal, then the material must be placed
in a separate envelope and labeled with the proposal number and clearly marked confidential. The
City will endeavor to keep that information confidential, separate and apart from the proposal,
subject to the provisions of the Colorado Open Records Act (CRS 23-72-201 et.seq.) or court order.
Format
All Providers should organize their proposals according to the format described below. Failure to
comply with all provisions of this RFP may result in the proposal being disqualified. Significant
deviation from the format prescribed below may also result in the proposal being disqualified.
Providers must submit proposals that are substantially complete, thorough, and accurate. Brochures
and other similar background material may be attached to the proposal but will not be used by the
City evaluation team in determining the extent to which the proposal is responsive or complete.
The proposal should be bound and include the following items (in order)
1. Title Page
2. Table of Contents
3. Executive Summary
4. Copy of the Proposal Certification Form (Exhibit C)
5. Responses to the "Scope of Services to be Provided"
6. Completed Exhibit A: "Deadline, Cutoff and Notification Times"
7. Completed Service Pricing Schedule (including analysis of Securities
8. Sample Account Analysis Form
9. Sample Agreements (i.e., Wire Transfer Agreement)
10. Sample Reports
11. Appendices (i.e., Bank Call Reports)
Implied Requirements
Lending activities)
Products and services that are not specifically requested in the RFP, but are necessary to provide
the functional capabilities offered by the Provider, shall be included in the proposal.
Required Items
Included in the sealed proposal package, but not bound with the proposal, each institution must
include a Transmittal Letter. This letter should briefly state the Provider's understanding of the work
to be accomplished, provide a commitment to perform the work, and indicate the proposal is firm
and irrevocable for the period of the contract. It should also identify all materials and enclosures
included in the response to the RFP.
Each Provider must submit copies of its three (3) most recent audited financial statements in the
sealed proposal package, but should not bind the statements with the proposal document.
Exceptions to the Prescribed Format
In prescribing the format for proposals, the City desires to make the responses from the Providers
consistent and comparable. The City recognizes that Providers may vary in their approach and
processes to providing the required services. Proposals that deviate significantly to the required
format may be rejected. All requested information must be submitted, or if not, an explanatory
statement summarizing the Provider's reason for not submitting the requested information must be
given.