Placement: Consent Agenda
Action Requested: Motion / Vote
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Award Contract #20220064 for Investment Advisory Services.
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Submitted By: Nathaniel Rubel, Procurement Division Assistant Director, Office of Management and Budget
Strategic Plan Link: The City’s Mission to be financially responsible.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Nathaniel Rubel, Procurement Division Assistant Director, Office of Management and Budget
2. Parties: City of Port St. Lucie and PMA Asset Management, LLC, and Public Trust Advisors, LLC.
3. Purpose: To provide Investment Advisory Services to the City in accordance with Florida Statues and the City’s Investment Policy.
4. New/Renewal/Modified: New
5. Duration: The initial term of the Contracts is for three (3) years from the date of execution. The City shall have the option to renew for one (1) additional three (3)-year term.
6. Benefits to Port St. Lucie: Investment Advisors will provide, access to a broader investment pool, better investment diversification, outside investment guidance, yearly Cash Flow Analysis, investment training, and investment policy guidance.
7. Cost to Port St. Lucie (Annual and Potential): Consultants will be compensated per the fee schedule in the Contract based on the amount invested with the Consultant. Consultants will be paid out of the earnings of the invested funds.
Presentation Information: N/A
Staff Recommendation: Move that the Council award Contract #20220064 and enter into contracts with PMA Asset Management, LLC and Public Trust Advisors, LLC for Investment Advisory Services.
Alternate Recommendations:
1. Move that the Council amend the recommendation and award Contract #20220064.
2. Move that the Council not approve the recommendation and provide staff with direction.
Background: Earlier this year, the City decided to incorporate a hybrid approach with our investment portfolio. The Finance Department hired an Investment Manager and also decided to hire outside money managers to assist staff with its short and long-term investment strategies. Having this hybrid approach allows for the team to be in control of our portfolio and, at the same time, allows us a strategy of having more access to the investment market. This approach creates a better diversification of our portfolio while maintaining safety, liquidity, and yield.
Having a third-party money manager allows the City access to a broader investment pool that will provide for better diversification of our cash/funds. The money managers are in the investment market every day and can provide investment staff with invaluable guidance on our total investments. City staff are currently taking advantage of the rising interest rate market; however, having outside consultants onboard will allow for us to take full advantage of other investment strategies that we might not have access to within our local platform/market. The money managers will also give us insight into our cash flow throughout the year. The firms engaged will provide the City with a yearly Cash Flow Analysis and offer investment training to our team that is needed for us to stay in compliance with our investment policy and Florida State Statute training requirements. Each firm will also review our investment policy and recommend any changes needed for us to stay in compliance with State and Local requirements.
Issues/Analysis: an eRFP was advertised on DemandStar on April 28, 2022, with a proposal due date of May 26, 2022. During the advertisement period, 136 suppliers were notified with 18 of those downloading the solicitation documents. There were 9 proposals submitted within the required timeframe. On June 30, 2022, Procurement held a public meeting where the Evaluation Committee members met to review and discuss their individual scores. The Committee voted to shortlist the field of proposers to four firms (1) PMA Asset Management, LLC, (2) Public Trust Advisors, LLC, (3) Hilltop Securities, and (4) PFM Asset Management and have discussions on July 13, 2022, with the shortlisted firms. These firms were invited to the presentation/discussion meeting. The discussions allowed the Committee to gain a better understanding and more insight into the firms’ qualifications and fitness for the project based on the firms’ presentations and answers to questions. The Committee voted to request additional information from the shortlisted firms and have further discussions on July 19, 2022. With a better understanding and more insight, the Committee voted to select the two top-ranked firms (1) PMA Asset Management, LLC and (2) Public Trust Advisors, LLC and enter into Contract negotiations.
Financial Information: Consultants will be compensated per the negotiated fee schedule in the Contract based on the amount invested with the Consultant. Consultants will be paid out of the earnings of the invested funds.
Special Consideration: N/A
Location of Project: N/A
Attachments:
1. eRFP Documents.
2. Consolidated Score Sheet.
3. PMA Asset Management Proposal.
4. Public Trust Advisors Proposal.
5. PMA Asset Management Signed Contract.
6. Public Trust Advisors Signed Contract.
7. Notice of Intent to Award.
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 8773 (Public Trust Advisors, LLC) 8776 (PMA Asset Management, LLC).
Legal Sufficiency Review:
Reviewed by Sebastian Poprawski, Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.