HomeMy WebLinkAboutRFP - 7262 SECURITIES SAFEKEEPING & CUSTODIAL SERVICESCity of
Fort Collins
Purchasing
Financial Services
Purchasing Division
215 N. Mason St. 2ntl Floor
PO Box 580
Fort Collins, CO 80522
970.221.6775
970.221.6707
/cgov. com/purchasing
CITY OF FORT COLLINS, COLORADO
REQUEST FOR PROPOSAL
SECURITIES SAFEKEEPING AND CUSTODIAL SERVICES
PROPOSAL NUMBER 7262
PROPOSAL DATE: 3:00 P.M. (OUR CLOCK) SEPTEMBER 26, 2011
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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 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 safekeeping and custody services selected through this RFP process shall
commence on or before January 1, 2012.
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.
2. 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).
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.
3. There will be no investment activities transacted with the custodial branch of the 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 to 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.
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B. Mandatory Requirements
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.
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 sub -custodians.
b. If any of these transactions are to occur through a correspondent or sub -custodian
relationships, those relationships should be fully disclosed including the length of the
relationships.
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c. What criteria do you use to select sub -custodians?
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.
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
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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?
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.)
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.
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D. Required Services
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.
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?
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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?
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 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.
c. Describe the physical security systems of your vault and custody areas.
d. Do you verify transaction detail from client instructions? How? When?
e. 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.
f. 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?
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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.)
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)?
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 un-invested balances? Who directs
this process and what are the deadlines for the service?
12. Collateral ization
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 $250,000. 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?
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13. Pricing of Securities
a. Describe your pricing services.
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? Can you provide system
to system electronic data transmission? PC downloading? Internet access?
c. What information 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
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state in Mountain Standard Time (MST) when information and access will be available
each business day.
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. Please provide your system support phone number.
g. What system's training is available for the City personnel?
h. Briefly describe you method of controlling client access.
i. 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.
o. Do you have an online cash management system?
p. Can cash balances be invested in Certificates of Deposits, Commercial Paper, and/or
Money Market Mutual Funds through your online system?
q. Describe the process for online investing. Also provide a list of the investment options
available.
r. Specify the costs associated with investing online.
16. Auditing Procedures
a. 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.
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REQUEST FOR PROPOSAL - TABLE OF CONTENTS
Section Description Page
SECTION 1. INTRODUCTION AND INFORMATION ABOUT THE CITY AND THE
FINANCE DEPARTMENT.........................................................................
3
SECTION 2. PROPOSAL SUBMITTAL INSTRUCTIONS..............................................5
SECTION 3. PROPOSAL EVALUATION AND SELECTION .........................................
6
SECTION 4. SCOPE OF SERVICES TO BE PROVIDED .............................................
9
A. General Service Requirements and Overview......................................................
9
B. Mandatory Requirements...................................................................................10
C. Institutional Profile Data......................................................................................
11
D. Required Services..............................................................................................13
E. Optional Services...............................................................................................18
F. Additional or Alternative Services.......................................................................
20
SECTION 5. PRICING PROPOSAL.............................................................................20
A. Basis of Compensation.......................................................................................
20
B. Pricing Schedule.................................................................................................
20
EXHIBITS......................................................................................................................
21
EXHIBIT A - Deadline, Cutoff and Notification Times ................................................
21
EXHIBIT B — Pricing Schedule...................................................................................
22
EXHIBIT C — Proposal Certification...........................................................................
23
APPENDICES...............................................................................................................
24
APPENDIX A — City of Fort Collins Standard Service Agreement (Sample)
.............. 24
APPENDIX B — City of Fort Collins Portfolio of Assets ..............................................
34
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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?
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 Treasury's
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 special 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.
a. Do you provide securities lending? If so, describe your program and the services
provided. What differentiates.your program from others?
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b. Is the securities lending group in-house? A part of the custody operation?
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?
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c. Can the program download to Excel? Other software applications?
d. What training is available to the City in understanding your performance products?
e. What costs are associated with these services?
F. Additional or Alternative Services
Any additional service or permissible alternatives to the required service's, 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. Pricing Schedule.
Each proposal must include a completed Exhibit B — Pricing Schedule which details all
services and the fee to be charged for each. Any additional services should also be
stipulated on Exhibit B.
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EXHIBITS
EXHIBIT A - Deadline, Cutoff and Notification Times
Purchase/ Sale/
Receipt Delivery
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
State any exemptions, restrictions or limitations on these deadlines below.
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EXHIBIT B — Pricing Schedule
Please see the attached Excel spreadsheet titled "Exhibit B — Pricing Schedule".
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EXHIBIT C — Proposal Certification
CITY OF FORT COLLINS
REQUEST FOR PROPOSAL 7262
SECURITIES 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 Officia
Name of Official (typed):
Title:
Name of Custody Provider:
Date:
Note: Proposals submitted without the signature of an authorized agent of the custody
provider may be considered non -responsive and ineligible for award.
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APPENDICES
APPENDIX A — City of Fort Collins Standard Service Agreement (Sample)
SAMPLE SERVICES AGREEMENT
PROFESSIONAL SERVICES AGREEMENT
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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 , 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 ( ) page , 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, and incorporated herein by this reference.
3. Contract Period. This Agreement shall commence 200 and
shall continue in full force and effect until 200 unless sooner terminated as
herein provided. In addition, at the option of the City, the Agreement may be extended for
additional one year periods not to exceed four (4) additional one year periods. Renewals and
pricing changes shall be negotiated by and agreed to by both parties. The Denver Boulder Greeley
CPIU published by the Colorado State Planning and Budget Office will be used as a guide.
Written notice of renewal shall be provided to the Professional and mailed no later than ninety (90)
days prior to contract end.
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
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termination date contained in said notice unless otherwise agreed in writing by the parties.
All notices provided underthis Agreement shall be effective when mailed, postage prepaid and sent
to the following addresses:
Professional:
City:
With Copy to:
City of Fort Collins
City of Fort Collins , Purchasing
Attn:
PO Box 580.
PO Box 580
Fort Collins, CO 80522
Fort Collins, CO 80522
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 $ Optional: according to the Insurance
Requirements attached hereto as Exhibit " ", consisting of one (1) page.
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
RFP 7262 Securities Safekeeping & Custodial Services Page 27 of 40
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 and upon the City's approval of the Professional's actual reimbursable expenses.
[Optional] Insert Subcontractor Clause 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
RFP 7262 Securities Safekeeping & Custodial Services Page 28 of 40
REQUEST FOR PROPOSAL COVER LETTER
CITY OF FORT COLLINS
PROPOSAL NO. 7262 SECURITIES SAFEKEEPING & CUSTODIAL SERVICES
The City of Fort Collins is seeking proposals from firms for a securities 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 five (5) 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 26, 2011, Proposal No. 7264.
Questions concerning the scope of the project should be directed to John Voss, Financial Officer, at
(970) 221-6772 or Harold Hall, Investment Administrator, at (970) 221-6784.
Questions regarding proposal submittal or process should be directed to James B. O'Neill ll, 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 BuySpeed Webpage,
hftps://fcgov.com/eprocurement
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.
Sincerely,
James B. O'Neill II, CPPO, FNIGP
Director of Purchasing & Risk Management
RFP 7262 Securities Safekeeping & Custodial Services Page 2 of 40
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, prepared on
stable Mylar base material using a non -fading process to provide for long storage and high quality
reproduction. "CD" disc of the as -built drawings shall also be submitted to the City in an AutoCAD
version no older then the established city standard.
9. 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
RFP 7262 Securities Safekeeping & Custodial Services Page 29 of 40
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 of ten (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
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.
17. Prohibition Against Employing Illegal Aliens. Pursuant to Section 8-17.5-101,
C.R.S., et. seq., Professional represents and agrees that:
a. As of the date of this Agreement:
1. Professional does not knowingly employ or contract with an illegal alien
who will perform work under this Agreement; and
2. Professional will participate in either the e-Verify program created in
Public Law 208, 104th Congress, as amended, and expanded in Public Law 156,
108th Congress, as amended, administered by the United States Department of
Homeland Security (the "e-Verify Program") or the Department Program (the
"Department Program"), an employment verification program established
pursuant to Section 8-17.5-102(5)(c) C.R.S. in order to confirm the employment
RFP 7262 Securities Safekeeping & Custodial Services Page 30 of 40
eligibility of all newly hired employees to perform work under this Agreement.
b. Professional shall not knowingly employ or contract with an illegal alien to
perform work under this Agreement or knowingly enter into a contract with a
subcontractor that knowingly employs or contracts with an illegal alien to perform work
under this Agreement.
C. Professional is prohibited from using the e-Verify Program or Department
Program procedures to undertake pre -employment screening of job applicants while this
Agreement is being performed.
d. If Professional obtains actual knowledge that a subcontractor performing work
under this Agreement knowingly employs or contracts with an illegal alien, Professional
shall:
1. Notify such subcontractor and the City within three days that Professional
has actual knowledge that the subcontractor is employing or contracting with an
illegal alien; and
2. Terminate the subcontract with the subcontractor if within three days of
receiving the notice required pursuant to this section the subcontractor does not
cease employing or contracting with the illegal alien; except that Professional
shall not terminate the contract with the subcontractor if during such three days
the subcontractor provides information to establish that the subcontractor has not
knowingly employed or contracted with an illegal alien.
e. Professional shall comply with any reasonable request by the Colorado
Department of Labor and Employment (the "Department") made in the course of an
investigation that the Department undertakes or is undertaking pursuant to the authority
established in Subsection 8-17.5-102 (5), C.R.S.
f. If Professional violates any provision of this Agreement pertaining to the duties
imposed by Subsection 8-17.5-102, C.R.S. the City may terminate this Agreement. If this
Agreement is so terminated, Professional shall be liable for actual and consequential
damages to the City arising out of Professional's violation of Subsection 8-17.5-102,
C.R.S.
g. The City will notify the Office of the Secretary of State if Professional violates this
provision of this Agreement and the City terminates the Agreement for such breach.
18. 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
RFP 7262 Securities Safekeeping & Custodial Services Page 31 of 40
) pages, attached hereto and incorporated herein by this reference.
RFP 7262 Securities Safekeeping & Custodial Services Page 32 of 40
THE CITY OF FORT COLLINS, COLORADO
By:
James B. O'Neill II, CPPO, FNIGP
Director of Purchasing & Risk Management
DATE:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Assistant City Attorney
[Insert Professional's name] or
[Insert Partnership Name] or
[Insert individual's name] or
Doing business as [insert name of business]
By:
Title:
CORPORATE PRESIDENT OR VICE PRESIDENT
Date:
ATTEST:
Corporate Secretary
(Corporate Seal)
RFP 7262 Securities Safekeeping & Custodial Services Page 33 of 40
INSURANCE REQUIREMENTS
1. The Professional will provide, from insurance companies acceptable to the City, the
insurance coverage designated hereinafter and pay all costs. Before commencing work under
this bid, the Professional shall furnish the City with certificates of insurance showing the type,
amount, class of operations covered, effective dates and date of expiration of policies, and
containing substantially the following statement:
"The insurance evidenced by this Certificate will not be cancelled or materially altered,
except after ten (10) days written notice has been received by the City of Fort Collins."
In case of the breach of any provision of the Insurance Requirements, the City, at its option,
may take out and maintain, at the expense of the Professional, such insurance as the City may
deem proper and may deduct the cost of such insurance from any monies which may be due or
become due the Professional under this Agreement. The City, its officers, agents and
employees shall be named as additional insureds on the Professional's general liability and
automobile liability insurance policies for any claims arising out of work performed under this
Agreement.
2. Insurance coverages shall be as follows:
A. Workers' Compensation & Employers Liability. The Professional shall maintain
during the life of this Agreement for all of the Professional's employees engaged in work
performed under this agreement:
Workers' Compensation insurance with statutory limits as required by
Colorado law.
2. Employers Liability insurance with limits of $100,000 per accident,
$500,000 disease aggregate, and $100,000 disease each employee.
B. Commercial General & Vehicle Liability. The Professional shall maintain during
the life of this Agreement such commercial general liability and automobile liability
insurance as will provide coverage for damage claims of personal injury, including
accidental death, as well as for claims for property damage, which may arise directly or.
indirectly from the performance of work under this Agreement. Coverage for property
damage shall be on a "broad form" basis. The amount of insurance for each coverage,
Commercial General and Vehicle, shall not be less than $500,000 combined single limits
for bodily injury and property damage.
In the event any work is performed by a subcontractor, the Professional shall be
responsible for any liability directly or indirectly arising out of the work performed under
this Agreement by a subcontractor, which liability is not covered by the subcontractors
insurance.
RFP 7262 Securities Safekeeping & Custodial Services Page 34 of 40
[Optional]
EXHIBIT " "
CONFIDENTIALITY
IN CONNECTION WITH SERVICES provided to the City of Fort Collins (the "City") pursuant to this
Agreement (the "Agreement"), the Professional hereby acknowledges that it has been informed that
the City has established policies and procedures with regard to the handling of confidential
information and other sensitive materials.
In consideration of access to certain information, data and material (hereinafter individually and
collectively, regardless of nature, referred to as "information") that are the property of and/or relate
to the City or its employees, customers or suppliers, which access is related to the performance of
services that the Professional has agreed to perform, the Professional hereby acknowledges and
agrees as follows:
That information that has or will come into its possession or knowledge in connection with the
performance of services for the City may be confidential and/or proprietary. The Professional
agrees to treat as confidential (a) all information that is owned by the City, or that relates to the
business of the City, or that is used by the City in carrying on business, and (b) all information that
is proprietary to a third party (including but not limited to customers and suppliers of the City) . The
Professional shall not disclose any such information to any person not having a legitimate need -to -
know for purposes authorized by the City. Further, the Professional shall not use such information
to obtain any economic or other benefit for itself, or any third party, except as specifically authorized
by the City.
The foregoing to the contrary notwithstanding, the Professional understands that it shall have no
obligation under this Agreement with respect to information and material that (a) becomes generally
known to the public by publication or some means other than a breach of duty of this Agreement, or
(b) is required by law, regulation or court order to be disclosed, provided that the request for such
disclosure is proper and the disclosure does not exceed that which is required. In the event of any
disclosure under (b) above, the Professional shall furnish a copy of this Agreement to anyone to
whom it is required to make such disclosure and shall promptly advise the City in writing of each
such disclosure.
In the event that the Professional ceases to perform services forthe City, orthe City so requests for
any reason, the Professional shall promptly return to the City any and all information described
hereinabove, including all copies, notes and/or summaries (handwritten or mechanically produced)
thereof, in its possession or control or as to which it otherwise has access.
The Professional understands and agrees that the City's remedies at law for a breach of the
Professional's obligations under this Confidentiality Agreement may be inadequate and that the City
shall, in the event of any such breach, be entitled to seek equitable relief (including without
limitation preliminary and permanent injunctive relief and specific performance) in addition to all
other remedies provided hereunder or available at law.
RFP 7262 Securities Safekeeping & Custodial Services Page 35 of 40
APPENDIX B — City of Fort Collins Portfolio of Assets
RFP 7262 Securities Safekeeping & Custodial Services Page 36 of 40
City of
I a
c
Flirt Collins
Fixed Income Portfolio
City of
Fort Collins
Finance
Investments by All Types
Active Investments
May 31, 2011
Purchase
Current
Maturity
Call
Call
CUSIP Investment 6
Fund
Issuer
Par Value
Price
Book Value
Rate
Data
Date
Price
Federal Agency Coupon Securities
31331JAB9 895
991
Federal Farm Credit Bank
3,000,000.00
99.2420000
2,977,260.00
1.625
12/24/2012
31331J2Z5 969
991
Federal Farm Credit Bank
5,000,000.00
99.9700000
4,998,5W.W
0.920
11/26/2013
3133XTA97 840
991
Federal Home Loan Bank
5,DW,0W.00
100 ODOOOW
5.000.000.00
2.100
09/082011
3133XTLYO 852
991
Federal Home. Loan Bank
3,DOO,000.00
1W.0000000
3,000,000.00
1.800
05/04/2012
3133XXRM1 908
991
Federal Home Loan Bank
6.000,000.00
100.0000000
5.000,000.00
2.000
10/15/2013
313373ACO 995
991
Federal Home Loon Bank
2,500,000.00
1000000000
2,500,OW.00
1.300
04/29/2014
3133737K2 996
991
Federal Home Loan Bank
2,500,000.00
1000000000
2,500,000.00
2.000
OWl3012015
Subtotal 26.000,000.00
25,975,760.00
Federal Agency Callable Securities
31331JT06 935-700
700
Federal Farm Credit Bank
2.000,000.00
100-ODODOO
2,000,000.00
3.250
06YJ0/2017
06I30I201I
100.000WW
31331JXJ7 949-700
7W
Federal Farm Credit Bank
2,000,000.00
100.0000000
2,000.ODO.00
3.000
08/03/2018
08/0312011
100.0000000
31331J3Y7 971-700
700
Federal Farm Credit Bank
2.000,000,00
97.7000000
1,954,000.00
2.650
12/01/2017
12/01/2011
100.0000000
3133IJKAD 915
991
Federal Farm Credit Bank
5.D00,000.0U
99.9500DOO
4,997,500.00
2.900
04/092015
04/09/2012
100.0000000
31331JL68 956
991
Federal Fans Credit Bank
S.000.000.00
100.0000000
5,000,000.00
1.100
09/30/2013
09/302011
1 W.0000000
31331JZ97 966
991
Federal Farm Credit Bank
5.000,000.00
100.0000000
5,000,000.00
1.600
111092015
11/092011
1 00.0000000
31331J3A9 968
991
Federal Farm Credit Bank
5.000,000.00
100.0000000
5,0W,0W.W
2.000
11/232015
05/23/2012
100.0tX700DD
31331J5W9 970
991
Federal Farm Credit Bank
3,000,DOO,00
1000000000 -
3,000,000.00
2.0DO
12/22/2014
12IM01I
100.0D00000
31331,170 973
991
Federal Farm Credit Bank
5,000,000.00
100.000OWO
5,000,000.00
0.750
01/112013
01111/2012
100.0000000
-31331KBDI 980
991
Federal Farm Credit Bank
5,0W,0W.00
10000D0000
5,0DO.000.00
2.OW
02/02/2015
021022012
100.0000000
313373FX5 IOW
991
Federal Home Loan Bank
4,915,000.00
1 W-0000000
4.915,000.00
1.070
042WO13
07129=11
100.0000000
313373PZ9 1W2
991
Federal Home Lwn Bank
5,0W,000.00
100.00000DO
5.000,000.00
0.9W
05242013
06/2412011
1D0.0000000
3133XXUC9 911
991
Federal Home Loan Bank
3,000,000AO
99.8500000
2,995.500.00
1.500
04/1612014
04/16/2012
1W.0000000
3133XXVR5 913
991
Federal Home Loan Bank
5.000,000.00
100.0000000
6,000,DOO.00
2.490
D4/182014
04116/2012
100.0000000
3133XYY41 936
991
Federal Home Loan Bank.
3.000,000,00
100.0000000
3,000.000.00
2.000
061302015
06130/2011
100.0000DOO
.313370A99 939
991
Federal Home Loan Bank
5.000,000.00
1DO-0000000
5,000,0DO.00
1.500
01/282014
07128MI1
100.0000000
3133702W7 940
991
Federal Home Lwn Bank
5.000,000.00
100.0000000
5,000,000.00
1.400
07112/2013
01/122012
100.0000000
313370WKO 952
991
Federal Home Lwn Bank
3,000,000.00
100.0000000
3,000,000.00
1.740
09/142015
09/142012
100.0000000
313370RAB 954
991
Federal Home Loan Bank
3.000,000.W
100.0D00000
3,000.000.00
1.820
OB12412015
08/242011
100.0000000
3133716Te 95B
991
Fedeml dome Loan Bank
5,000,000.00
100.0000000
5,0o0,OD0.00
1.500
04/1 War
10/15/2012
I00.0000000
313372GZI 979
991
Federal Home Loan Bank
5,0W,000.00
100.0000000
5,000,OW.00
1.300
02/14/2014
02/14/2012
100.ODOODW
991
Federal Home Loan Bank
4,105,000.00
IW-OODDOOO
4,105,00UO
2.000
11/28f2014
0212=012
100.00=0
313372NX8 987
Loan Bank
3,500,000.00
99.9500000
3,498,250.00
2.000
03f2312015
03232012
100.0000000
313372UG7 989
991
Federal Home
Run Dale: 07/14r2011 -09:13
Portfolio FORT
CP
AT (PRF_DT) SymRep1641.202
Repon Vor. 5.00
RFP 7262 Securities Safekeeping & Custodial Services Page 37 of 40
Fixed Income Portfolio
CUSIP
Investment s
Fund
Issuer
Investments by All Types
May 31, 2011
Par Value
Purchase
Price
Book Value
Current
Rate
Maturity
Date
Cell
Date
Page 2
Cell
Price
Federal Agency Callable Securities
313372VNI
991
991
Federal Home Loan Bank
2,500,000.00
100.0000000
2,500,000.00
1.400
031282014
03/282012
100.0000000
3134G2GO9
1003
991
Federal Home Loan Mortgage Co.
5.000,000.00
100.0000D00
5,000,000.00
1.350
05/23/2014
11/2312011
100,0000000
3134GIGTS
933
991
Federal Home Loan Mortgage Co.
5.000.000.00
100.0000000
5,000,000.00
1.750
12/24/2013
00/24/2011
100.0000000
3134G1 PP3
947
991
Federal Home Loan Mortgage Co.
5.000,000.00
100.0000000
5,000,000.DO
1.400
1111a2013
08/182011.
100.0000000
3136FRKYB
1004
991
Federal Nall Mfg. Assoc.
2.500,000.00
100.000DOW
2,500,000.00
2.000
08/24/2015
05/242012
100.0000000
3136FHMK8
850
991
Federal Nat'l Mfg. Assoc.
3,000,000.00
100.0000000
3,000,000.00
2.250
OWIQ014
OS/012012
100.0000000
3136FH2M6
874
991
Federal Nat'l Mfg. Assoc.
5,000,000.00
100.0000000
5,D00,000.00
2.000
08/152012
08115/2011
100.0000000
3136FJDMO
877
991
Federal Nall Mfg. Assoc.
5,000,000.00
99.9750000
4.998,750.00
2.000
09/232014
09/23/2011
100,0000000
3136FJF22
896
991
Federal Nat'l Mfg. Assoc.
5.000.000.00
99.200D000
4,960,000.00
2.100
07/08/2013
07/08/2011
100.0000000
3139BAS45
925
991
Federal Nall Mfg. Assoc.
5.000,000.00
100.0000D00
5.000,000.00
2.000
06242013
06/242011
100.0000000
31398AZ47
942
991
Federal Nat'l Mfg. Assoc.
5,000,000.00
100.0000000
5,000,000.00
1.250
0729/2013
07/29/2011
100,0000000
3136FM3R3
943
991
Federal Nat'l Mfg. Assoc.
5,000,000.00
100.0000000
5.000,000.00
1.750
08/182014
0a/182011
100.0000000
3136FM3D4
944
991
Federal Nat'l Mfg. Assoc.
2.500,000.00
1DODD00000
2,500,000,D0
1.500
07/282015
07128/2011
100.D000000
3139BA2A9
945
991
Federal Nat9 Mfg. Assoc.
2,500,000.00
100.0000000
2.500,000.D0
2.125
08/052015
08/052011
100.0000O00
3136FM5EO
946
991
Federal Nall Mfg. Assoc.
3,000,000.D0
100.0000000
3,000,000.00
2.000
08/102015
08/10/2012
100.0000000
31399A2Y7
950
991
Federal Nall Mfg. Assoc.
51000,000.00
100.0000000
5,000,000.D0
1.500
0826M14
Oa/262011
100.0000000
31398A302
951
991
Federal Neff Mfg. Assoc.
5,000.000.00
100.00000DO
6,000.000.00
1.125
09/092013
09/092011
100.00()OWO
3136FPLGO
955
991
Federal Nat'l Mfg. Assoc.
5,000,000.00
100.0000000
5,000,000.00
1.300
03/28/2014
092WO11
100.0000000
31398A402
960
991
Federal Nat'l Mfg. Assoc.
5,000,000.00
99.9850000
4,999,260.00
1.000
10/182013
10/1H/2011
100.0000000
3136FP0W0
961
991
Federal Nat'l Mfg. Assoc.
5,DD0,000.00
f00.0000000
5,000,000.00
1.625
101192015
10/192012
100.0000000
3136FPTLI
962
gill
Federal Nat'l Mfg. Assoc.
5,000,000oO
1DOADOD000
5.000.000.00
1.500
1028/2015
10/292012
100.0000000
3136FPW60
972
991
Federal Nat'l Mfg. Assoc.
5,000.000.00
1D0.0000000
5,000.000.00
1.500
12=2013
12/30201I
100.0000000
3136FP2S5
974
991
Federal Nat'l Mfg. Assoc.
4,250,000.00
100.0000000
4.250,000.00
0.625
01/18/2013
07/182011
100.0000000
3136FP3T2
978
991
Federal Nat'l Mfg. Assoc.
5,000,000.00
100.0000000
5.000.000.00
0,750
01272014
012712012
100.0000000
3136FP7J0
9a2
991
Federal Nat'l Mfg. Assoc.
- 5,000,000.00
100.0000000
5,000,000,00
1.250
=242016
02242012
100.OD000OO
3136FRAS2
983
991
Federal Nat'l Mfg. Assoc.
5.000,000.00
100.000DO00
5.000.000.00
1.500
02222016.
02/222012
100.0000000
3135GOAX1
986
991
Federal Nall Mfg. Assoc.
51000,000.00
99.9500000
4,997,SDO.00
1.750
03/072014
09/072011
100.0000000
3136FP7A9
992
991
Federal Nat'l Mfg. Assoc.
5,000,000.00
99.9500000
4.997.500.00
1.000
02/16/2016
08/16/2011
100.0000DDO
3135GOAS2
993
991
Federal Nat'l Mfg. Assoc.
5,000,ODO.00
99.9250000
4.996,250.00
1.500
0225/2014
081252011
100.0000000
3136FP3Y1
997
991
Federal Narl Mfg. Assoc.
2,500.000.00
99.9750000
2,499,375.00
2.000
012812015
07/282011
100.0D00000
3135GOAW3
998
991
Federal Nat'l Mfg. Assoc.
5.000,000.00
100.21700DO
51010,850.00
1.700
02/25/2014
08252011
100.0000000
Subtotal 231,270,000.00
231,174.725.00
Corporate Bonds
369604AY9
842-700
700
General Electric Co
3.000,000.00
97.7970000
2,933,910.00
5.0D0
02N12013
36962G3K8
927
991
General Else Cap Corp.
2,100,0D0.0D
107.3280000
2,253,888.00
5.250
10/192012
36962G4H4
938
991
General Elec Cap Corp.
5,000,000.00
101.3550000
5,067,750.00
2.800
01/08/2013
Run Date: 07/142011 - 09:13
Portfolio FORT
CID
AT (PRF_DT) SymR4p16.41.202
Remn Ver. 5.00
RFP 7262 Securities Safekeeping & Custodial Services Page 38 of 40
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 a safekeeping and custodial services contract for the City's 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 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.
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 safekeeping and custodial services is Wells Fargo. 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 five months of 2011, the City's portfolio averaged approximately $310 million,
consisting of 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. As of
May 31, 2011, the portfolio allocation was as follows:
RFP 7262 Securities Safekeeping & Custodial Services Page 3 of 40
Fixed Income Portfolio
Investments by All Types
May 31, 2011
Page 3
Purchase
Currant
Maturity Cell Call
CUSIP
Investment o
Fund
Issuer
Par Value
Price
Book Value
Rate
Date Date Prim
Corporate Bonds
36962G4X9
975
991
General Elec Cap Corp.
2,500,000.00
99-9510000
2,498,775.00
2.100
01/07/2014
36962G4X9
976
991
General Elec Cap Corp.
2,500,000.00
99.6980000
2.492,450.OD
2.100
01/07/2014
89233P4H6
953
991
Toyota Motor Credit Corp
3,000,000.00
100.4000000
3,012,000.00
1.375
08/12/2013
Subtotal
18,100,000.00
18,258,773.00
Certificates of Deposit
SYS957.820 957.820
820
Great Western Bank
1,250,000.00
100.0000000
1,250,000.OD
LOW
03121/2013
SYS917 917
991
Great Western Bank
3,600,000.00
100.D000000
3,600,000.00
1.250
01/15M12
SYS918 918
991
Great Western Bank
400.000.00
100.0000000
400.000.00
1250
01/1Y2012
SYS963 963
991
Great Western Bank
10,D00,000.00
100.0000000
10,000,000.00
0.850
10/21/2011
SYS964 964
991
Great Western Bank
10,000,000.00
100.0000000
10,000,000.00
1.000
11129/2012
Subtotal 25,250,000.00
25,25D,000.00
Commercial Paper Disc. -At Cost
89233HUE2 1001 991 Toyota Motor Credit Corp 11,000,000.00 99.9375000 10,993,125.00 0.250 07/14/2011
89233HT79 999 991 Toyota Motor Credit Corp 8,000,000.00 99.9583334 7,996,666.67 0.250 06/07/2011
Subtotal 19,000,000.00 18,989,791.67
Pass Through Securities (GNMA/CMO)
,
36216PW07 005.276 276
GNMA
1.185.87
98.9089623
1,172.93
8.500
0411512017
36216XXE6 311-276 276
GNMA
9,243.76
99.9703721
9,241.02
8.500
08/15l2016
36216PW07 007-501 501
GNMA
4,379.18
98.9089631
4.331.40
8.500
04/152017
362180MXG 397-700 700
GNMA
7,619.72
94.5172517
7,201.95
9.500
1011512017
36218EBB6 398-700 700
GNMA
12,950.48
94.5342399
12,242.64
9.500
09/1512017
36216PW07 006.640 840
GNMA
1,355.21
98.9089811
1,34OA2
8.600
04/15/2017
Subtotal 36.734.22
35.530.36
Total 319,656,734.22
Run Date: 07/142011 -09:13
319,684,580.03
Portfolio FORT
CP
AT (PRF_DT) SymRept 6.41.202
Report Var. 5.00
RFP 7262 Securities Safekeeping & Custodial Services Page 39 of 40
Rbc JUHMI I I HKU ytAR LUIU (Cost per Iler
bit B: Pricing Schedule
of Fort Collins
stmenl, Safekeeping and Custodial Services
2012
2070
2015
Type of SerWce
Usage /Items
DDallly,
Co`Bmer
Total Cost
Co` ttm�2011�
Cost
Total Cost
Co`B1per
Total Cost
(M)(MD
IA)
7�1
n.
mor
Account Analysis
1 statement
M
O.DO
0.00
0.00
0.0
Account Maintenance
3 accounts
A
0.00
D.00
0.00
0.0
Sweep Access
1
D
0.00
0.00
0.00
0.0
Securities Safekeepina
(Choose Onel
Average Portfolio balance
$308,798,270
A
0.00
0.00
0.00
0.00
OR
Per Security.
Fed wireable securities
110
M
0.00
0.00
0.00
0.0
Service Fees
Interest/ dividend payments
170
A
0.00
0.00
0.00
0.0
Purchases
85
A
0.00
0.00
0.00
0.00
Maturities (excl. repo)
35
A
0.00
O.Do
0.00
0.00
Sales
5
A
0.00
0.00
0.00
0.00
Calls
45
A
0.00
0.00
0.00
0.00
Mortgage Pay Downs
48
A
0.00
0.00
0.00
0.00
Repo Origination
52
A
0.00
0.00
0.00
0.00
Repo Redemption
52
A
0.00
0.00
0.00
0.00
Report Fees
Web access
1
A
0.00
0.00
0.00
0.0
Hard copy (3 Accounts)
3
M
0.00
0.00
0.00
0.0
(Account Analysis)
Electronic (3 Accounts)
3
D
0.00
0.00
0.00
0.0
Cash Management
System
Access
1
D
0.00
0.00
0.00
0.00
Investment Transactions
1
D
0.00
0.00
0.00
0.00
Provided Software
1
A
0.00
0.00
0.00
0.00
Wire Transfers
Incoming
10
A
0.00
0.00
0.00
0.00
Outgoing
10
A
0.0
0.00
0.00
0.00
Repo Incoming
52
A
0.00
0.00
0.00
0.00
Repo Outgoing
52
A
O.Ga
0.00
0.00
0.00
Cost of Collateral or Dep
1
A
0.0c
0.00
0.00
0.0
Insurance
Davlioht Overdraft
Per cccurance
Charges
Conversion Costs
One
Time0.0
N/A
N/A
N/A
N/A
N/A
N/A
Research (per hour)
5
Hours Annually
0.00
0.00
0.00
0.0
Training (cost per hour)
10
Hours Annually
0.00
0.00
0.00
0.00
Other (please specify)
U KANU
TOTAL:
US Government Treasuries
US Government Agencies
GNMAs
Corporate Bonds
Commercial Paper
Bankers' Acceptances
Repurchase Agreements
Par Value
# Securities
0
0
257,270,000
61
36,734
6
18,100,000
6
19,000,000
2
0
0
0
0
The City may use 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 $125 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 six months has been $0 daily.
A copy of the current portfolio is attached as Appendix B.
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 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.
Proposal Calendar
The following calendar outlines the critical dates for the City of Fort Collins 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 6 Written proposal inquiries due by 3:00 p.m.
September 26 Proposals due.
October 11 Interviews, if necessary.
October 24 Evaluations completed. Contract sent to selected Provider.
October 24 to Preparation and revisions to contract; Implementation.
December 31
January 1, 2012 Contract begins.
RFP 7262 Securities Safekeeping & Custodial Services Page 4 of 40
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 6, 2011. 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. 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.
Contact with City personnel, other than written inquiries to Jim O'Neill, John Voss, or Harold Hall,
regarding this RFP may be grounds for elimination from the selection process.
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:
John Voss, Financial Officer
City of Fort Collins Finance Department
P.O. Box 580
Fort Collins, CO 80522-0580
Facsimile: 970/221-6782
E-mail: jvoss@fcgov.com
SECTION 2. PROPOSAL SUBMITTAL INSTRUCTIONS
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 Exhibit B: "Pricing Schedule"
8. Sample Account Analysis Form
9. Sample Agreements (i.e., Wire Transfer Agreement)
10. Sample Reports
11. Appendices (i.e., Bank Call Reports)
RFP 7262 Securities Safekeeping & Custodial Services Page 5 of 40
Implied Requirements
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.
Proposal Term
All proposals must be valid for 90 calendar days from the required submittal date.
SECTION 3. PROPOSAL EVALUATION AND SELECTION
General Evaluation Guidelines
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.
Use of Pre -determined Criteria: The evaluation team will use the City's standard evaluation criteria,
modified slightly for 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
RFP 7262 Securities Safekeeping & Custodial Services Page 6 of 40
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
2.5
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.
2.5
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.
1.0
Financial Strength
Evaluation of key financial ratios and financial strength.
3.0
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.
1.0
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.
RFP 7262 Securities Safekeeping & Custodial Services Page 7 of 40
Acceptance Time
The City intends to make a bid selection for contract negotiations by October 24, 2011. Award shall
be recommended to the proposer whose proposal best meets the needs of the City, not necessarily
to the lowest cost proposer.
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.
The City shall have the right to use any ideas contained in any proposal from any Providerthat 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 A. The City expects that both parties will execute the contract
prior to the commencement of safekeeping and custody services on January 1, 2012.
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 aftercompletion 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.
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.
RFP 7262 Securities Safekeeping & Custodial Services Page 8 of 40