Non-Discretionary Investment Advisory Services

1City of Lacey, WashingtonRequest for ProposalsNon-Discretionary Investment Advisory ServicesIssued June 1, 2017Proposal Closing: June 22, 2017, 4:00 p.m. Pacific Daylight Time Submit Proposals to: Troy Woo, Finance Director City of Lacey 420 College Street SE, Lacey, WA 98503 and Terry McCall Portfolio Services for Government, LLC 704 SE 38th Drive, Gresham, OR 97080 City of Lacey - RFP - Non-Discretionary Investment Advisory Services 2TABLE OF CONTENTSPage Number Introduction/Background 3Tentative Schedule 3Scope of Work, Project Description, Services Required 3Term of Contract 6Qualifications/Experience 6Proposal Instructions 6Pre-Proposal Questions and RFP Addenda 6Proposal Contents 7Exceptions to Sample Professional Services Agreement & RFP 7Evaluation of Proposals 7General Proposal/Contract Conditions 8Notice to All Proposers -- Standard Agreement 8Attachment A - Sample Professional Services Agreement 9Attachment B - Investment Policy 16Attachment C - Investment Policy – Advisor Certification 22Attachment D - Questionnaire 23Attachment E - Checklist of items to be submitted 29City of Lacey - RFP - Non-Discretionary Investment Advisory Services 3 I. INTRODUCTION The City of Lacey, Washington (City) requests proposals for Non-Discretionary Investment Advisory Services. Proposals will be due as indicated on the Request for Proposals (RFP) cover page.II. BACKGROUND/HISTORY OF PROJECT Lacey, with a current population of approximately 48,000 residents, was settled in the 1850s and incorporated in 1966. The City lies approximately 60 miles south of Seattle on Interstate 5 and is 50 miles south of the Seattle-Tacoma International Airport. The City does not currently use an investment advisor. December 31, 2016 cash and investments were approximately $144,661,731. However, the intent is to place approximately $60 million under advisement. Proposers should not expect any significant change in the approach during the contract period. The fiscal year is from January 1 to December 31. The City uses U.S. Bank for safekeeping.A portfolio report is not available but in calendar year 2016, balances ranged from $125.4 million to $145.0 million, and at April 30, 2017, the funds were held accordingly:State of Washington Investment Pool $135,354,554 Bank Deposits 12,647,905 Other Investments 0 Total $148,002,459The City has contracted with Portfolio Services for Government LLC to facilitate the selection of an investment advisor.III. TENTATIVE SCHEDULE RFP issued and advertised June 1, 2017Pre-proposal questions due June 8, 2017 RFP closing, proposals due June 22, 2017 4:00 p.m., Pacific Daylight Time Finalist interview(s) August 21, 2017 Notification to proposers of firm recommended to city council for By August 25, 2017 contract award Contract executed By September 29, 2017 Commencement of Services October 2, 2017 The City reserves the right to change the above tentative schedule.IV. PROPOSED SCOPE OF WORKDetailed Description of the Project The City is committed to excellence in fiscal administration, striving for the highest standards of performance and accountability. Therefore, the City invites competitive proposals from qualified and experienced investment advisory firms to assist with the management and performance of the investment portfolio by providing non-discretionary advisory services. The objective of requesting proposals is to determine which firm can offer the highest quality of service at the most reasonable cost.Summary of Services Required Successful Proposer will provide the City with the following services: a. Provide full-time, non-discretionary investment advisory services of the portion of the City’s portfolio under advisement.City of Lacey - RFP - Non-Discretionary Investment Advisory Services 4 b. Be available in a timely manner, in person, by telephone, fax or e-mail, for consultation or advice. Meet with and provide information to City staff, City Council and/or City committees such as the Finance Committee, when requested. Meet periodically with staff, including on-site meetings not less than twice annually, to review and refine portfolio strategy and performance. c. Prepare investment reports summarizing that period’s financial environment, investment holdings by type, maturity, broker, duration, and benchmark comparables. d. Comply with all federal and State of Washington laws as well as ordinances, resolutions and policies of the City relating to investment of public funds. e. Provide assistance in developing and implementing investment strategies that will maintain or enhance portfolio quality and performance within the parameters of the City’s investment policies and cash flow needs, taking into consideration the primary objective, the preservation of principal. f. Work with the staff to assure coordination of investment trades, delivery of the securities and availability of funds. Assist with trade settlements. Obtain and document competitive prices for securities transactions. Provide technical and fundamental market research including yield curve analysis and swap analysis. g. Assist in reviewing and recommending any appropriate amendments to the City’s investment policy at the outset of the Agreement term, and assist in the annual review and update of policy. h. Assist in reviewing investment internal controls. i. Assist in reviewing investment procedures and portfolio documentation with a goal of process improvement. j. Assist in the development of investment benchmarks. k. Assist in the review of third-party safekeeping/custodial services. l. Annually perform (and provide supporting documentation to the City) due diligence reviews of current and proposed broker/dealers and financial institutions as described in the City’s Investment Policy. m. Monitor repurchase agreement documentation to maintain the necessary paperwork (not currently permissible by the City’s investment policy, but this could be discussed during policy review). n. Provide detailed reports of investment portfolio activity and performance at least monthly. Such statements shall be furnished to the City within three (3) business days after the close of each month. Include earnings and accounting methodology. Reports shall follow Generally Accepted Accounting Principles (GAAP) and Governmental Accounting Standards Board (GASB) True-Value reporting and Deposit & Investment Risk Disclosure, and any other reports that may now or later be required. Provide separate quarterly and annual portfolio performance reports based on the City’s fiscal year. o. Allow the City to query data and generate internal reports and to be exportable to Excel. p. Participate in the City’s evaluation, selection and review of any investment software the City may consider using. q. Provide weekly to City staff, statement of upcoming cash flows that includes maturities, coupons, called securities and potential callables for a period of 45 days. Upon request, have the ability to provide a statement of upcoming cash flows for a six-month period.City of Lacey - RFP - Non-Discretionary Investment Advisory Services 5 r. Provide the City investment staff investment training and technical advice as needed. s. Provide periodic status reports on the services provided by the firm. t. Provide itemized invoices of charges either monthly or quarterly, as agreed upon in the Professional Services Agreement. u. Coordinate with the City staff all the activities necessary to ensure a smooth implementation. Such activities will begin upon execution of Agreement and are projected to be completed by September 28, 2017. v. Account Management: a.i.1. The City, through its Investment Policies, shall specify the types of securities, amounts, and maturities that can be purchased for the City, and will provide the successful proposer with written notification of such Authorized Securities. a.i.2. The successful proposer agrees to make recommendations to the City as to changes, including the acquisition and sale of securities for the City as the successful proposer from time to time deems appropriate and permissible under the laws governing the City and as specified in the Investment Policies. a.i.3. The City acknowledges that it may act upon the recommendations provided to it by the successful proposer pursuant to an Agreement - or not - at the City’s sole discretion. The successful proposer will assist the City in seeking competitive bids and offers from approved broker/dealers for each transaction involving the City. The City further acknowledges that it has the responsibility for establishing all brokerage arrangements and paying all brokerage fees required or incurred in connection with City transactions. a.i.4. By entering into an Agreement, the City in no way surrenders ownership of the cash or securities comprising the City’s account. The successful proposer will not act as a custodian of assets for the City or have possession of any such assets. With the successful proposer’s assistance the City shall select and authorize a custodian bank to hold all assets of the City in safekeeping. The City shall be solely responsible for all fees involved with any such custodial arrangement. a.i.5. While the City expects the investment advisor’s recommendation as to retention or selection of broker/dealers, the City staff retains sole discretion in the final determination. w. In order that the City may be kept informed of the status and activities in its portfolio, the successful proposer will take all steps necessary to ensure that each broker/dealer who executes a transaction on behalf of the City shall furnish a copy of the brokerage account confirmation to the City, as well as any periodic statements relating to the City. In addition, the City agrees to notify the successful proposer promptly of any change in the amount of assets and the withdrawal of any funds. x. The successful proposer agrees to furnish the City with a comprehensive monthly report showing a detail of all transactions involving the City. The report shall include the market value of the securities and cash held for the City, as well as information regarding the performance of the portfolio. Such statement shall be furnished to the City in not more than three (3) business days after the close of each month. y. The successful proposer will at all times render the services called for in this Agreement in a competent, professional manner in accordance with industry standards. However, the successful proposer does not imply or guarantee profits or freedom from loss in connection with its recommendations. The City, City of Lacey - RFP - Non-Discretionary Investment Advisory Services 6 realizing that fluctuations in security prices occur, agrees to not hold the successful proposer liable for any losses sustained by the City, except those resulting from the successful proposer negligence, willful or reckless misconduct, or lack of good faith. It is understood that the successful proposer will be acting in a similar capacity for other customers, and that the City’s investments and reinvestments may differ in kind and quantity from those made or recommended with respect to other accounts and customers even though the investment objectives may be the same or similar.V. TERM OF CONTRACT (PROFESSIONAL SERVICES AGREEMENT) The City intends to award this contract (Professional Services Agreement) to a single firm to provide the services required. The term of the contract is anticipated to be from October 1, 2017 through September 30, 2020, and may be extended by up to two (2) years, with a maximum combined contract period of five (5) years. VI. QUALIFICATIONS/EXPERIENCE Proposers must meet or exceed the following criteria: a. Be a Registered Investment Advisor as defined and regulated by the Securities and Exchange (SEC), be registered in the State of Washington, and whose primary business is municipal investment advisory or investment management services. b. Be familiar with all applicable Washington statutes with regard to qualified investments for public entities. (See http://www.tre.wa.gov/documents/inv_elig.pdf) c. Be completely independent of any financial institution or securities brokerage firm, or shall fully disclose any such relationships relevant to the firm’s relationship with the City. d. Have a minimum of five years experience in managing municipal funds, including operating and bond funds. e. Have a minimum of $1 billion dollars in municipal assets under ongoing management with at least $500 million under non-discretionary advisement. f. Must meet the requirements as set forth in the attached Sample Professional Services Agreement. VII. PROPOSAL INSTRUCTIONS a. Submission of Proposals: Proposals must be submitted in a sealed envelope or package bearing the title “City of Lacey – Investment Advisory Services” along with the proposer’s name and address. Provide to the individuals listed on the cover page: . Five (5) spiral-bound copies for the City . One (1) spiral bound copy for Portfolio Services for Government (PSG) . One electronic copy (CD or USB stick) for City . One electronic copy (CD or USB stick) for PSG b. Deadline: Proposals will not be considered if received after the date and time indicated on the RFP cover page. It is the responsibility of the proposer to ensure that the proposal arrives on time and at the correct locations. All proposals received later than date and time indicated will be returned unopened.City of Lacey - RFP - Non-Discretionary Investment Advisory Services 7 c. RFP as Basis for Proposals: This Request for Proposals represents the most definitive statement the City will make concerning the information upon which Proposals are to be based. Any verbal information which is not addressed in the RFP will not be considered by the City in evaluating the Proposal. d. Pre-Proposal Questions/RFP Addenda: All questions relating to this RFP should be addressed by email to [email protected] by not later than June 8, 2017. All answers to questions, which in the opinion of the City, warrant a written reply or RFP addendum will be furnished to all parties receiving this RFP. The City will not respond to questions received after the deadline listed on the estimated schedule. e. Information Release: All Proposers are hereby advised that the City may solicit and secure background information based upon the information, including references, provided in response to this RFP. By submission of a proposal all Proposers agree to such activity and release the City from all claims arising from such activity. All proposals submitted will be considered part of the public record, except to the extent they are exempted from disclosure.VIII. PROPOSAL CONTENTS The proposal should economize on the volume of content to the extent possible, and should describe the ability of the consultant to perform the work requested, as outlined herein. The proposal should be submitted on recyclable, double-sided recycled paper (post consumer content). No non-recyclable materials should be included in the proposal. a. Transmittal Letter: Indicate who will be assigned to the project, who will be project manager, and that the proposal will be valid for ninety (90) days. The letter is also to state that “The undersigned is an officer of the firm and is authorized to act in this capacity.” b. Table of Contents: Number all pages and include clearly identified attachments and/or exhibits. c. Approach/Project Work Plan: Describe how the work will be done within the given timeframe. Include a proposed work plan and schedule. d. Exceptions to Sample Professional Services Agreement and RFP: Carefully review the Sample Professional Services Agreement attached hereto as Attachment A, and incorporated herein. This is the standard agreement that successful respondents to this RFP will be required to execute. RFP respondents wishing to propose any exceptions or alternative clauses to the agreement or to any specified criteria within this RFP should propose those exceptions or alternative clauses in their proposal; however, the City shall not be required to consider proposed revisions. Proposed exceptions or alternative clauses should be accompanied by explanatory comments that are succinct, thorough and clear. e. Investment Policy - Advisor Certification: By signing the certification form (Attachment “C”) and submitting with its proposal, proposer acknowledges it has read and understands the objectives and constraints outlined in the Investment Policy. f. Questionnaire: The questionnaire (Attachment D) is to be completed in its entirety.IX. EVALUATION OF PROPOSALS a. Evaluation Procedure: Proposals received that conform to the proposal instructions will be evaluated. The evaluation will take place using the evaluation criteria identified in the following section. Interviews may be requested prior to final selection of firm(s). Award will be made to the highest ranked Proposer. If contract negotiations are unsuccessful with the highest ranked firm, the City reserves the right to enter into negotiations with the next highest ranked Proposer.City of Lacey - RFP - Non-Discretionary Investment Advisory Services 8 b. Evaluation Criteria: This section provides a description of the criteria which is intended to be used in the evaluation of the proposals submitted to accomplish the work defined in the RFP. However, the City may, without notice, at its sole discretion, change the evaluation criteria. 1. Meets Minimum Qualifications/Experience 2. Statement of Understanding  Demonstration of a full understanding of the work to be performed.  Background and scope of work described in RFP  Ability to provide and meet scope of work a.i.3. Approach to the Project  Quality of firm’s standard statements and reports  Ability to ensure a smooth transition/conversion  Description of project approach to completing the work4. Firm’s Strength and Stability  Firm’s stability and past experience working with local governments5. Experience and Qualifications of Assigned Personnel  Qualifications of the firm, project leader and project team members for the types of services required6. Cost Proposal  Proposed fee for services in the City’s judgment, which will provide the most comprehensive service at the most reasonable cost7. Interview8. Reference ChecksX. GENERAL PROPOSAL/CONTRACT CONDITIONS a. Award Determination: The award will be made to the Proposer that in the City’s opinion, will meet our needs. b. Limitation and Award: This RFP does not commit the City to the award of a contract, nor to pay any costs incurred in the preparation and submission of proposals in anticipation of a contract. The City reserves the right to waive minor irregularities, accept or reject any or all proposals received as the result of this request. c. Dispute Resolution: Any unresolved dispute(s) arising from this RFP will be adjudicated in the State of Washington, County of Thurston. c. Billing Procedures: Proposers are informed that the billing procedures of the selected firm are subject to the review and prior approval of the City before reimbursement of services can occur. Contractor's invoices shall include an itemized statement of the work done during the billing period, and will not be submitted more frequently than once a month. Payment shall be made by the City on a Net 30 day basis upon approval of Contractor invoice. d. Validity Period and Authority: The proposal shall be considered valid for a period of at least ninety (90) days from the date of receipt and shall contain a statement to that effect. The proposal shall contain theCity of Lacey - RFP - Non-Discretionary Investment Advisory Services 9 name, title, address, and telephone number of an individual or individuals with authority to bind any company contacted during the period in which the City is evaluating the proposal. e. Conflict of Interest: A Proposer submitting a proposal thereby certifies that no officer, agent, or employee of the City or the City has a financial interest in this proposal or has participated in contract negotiations on behalf of the City; that the proposal is made in good faith without fraud, collusion, or connection of any kind with any other Proposer for the same call for proposals; the Proposer is competing solely in its own behalf without connection with, or obligation to, any undisclosed person or firm. f. State and City Licensing/Excise Tax: The successful proposer will be required to be licensed to do business in the State of Washington and in the City of Lacey, and may be subject to the State of Washington excise tax. For website information, go to dor.wa.gov .XI. NOTICE TO ALL PROPOSERS/ STANDARD AGREEMENT The attached Sample Professional Services Agreement included herein reflects preliminary, draft contract language and selected, proposed contract terms for this procurement. Proposers should be aware that such language terms and provisions are for illustrative purposes only and that the City reserves the right, following submission and ranking of all proposals submitted in response to this procurement, to amend, modify or negotiate over any and all such contract language, terms and provisions before making a final determination regarding the execution of the Agreement rising from this procurement. By submitting a proposal in response to this procurement, proposers acknowledge that they are aware of and do not object to any later, potential amendment and modification of such preliminary, draft language and terms. In addition, by responding to this procurement, proposers acknowledge that they are aware of their ability to offer alternatives to any of the preliminary, draft contract language and proposed contract terms set forth herein. City of Lacey - RFP - Non-Discretionary Investment Advisory Services 10 ATTACHMENT “A”SAMPLE PROFESSIONAL SERVICES AGREEMENTTHIS AGREEMENT is made by and between the City of Lacey, a code City of the State of Washington, hereinafter “City” and <name of Consultant>, hereinafter “Consultant,” jointly referred to as “Parties.”IN CONSIDERATION of the terms and conditions contained herein, the Parties agree as follows:1. Work to Be Performed . Consultant shall provide all labor, services, and material to satisfactorily complete the Scope of Services, attached as Exhibit A.A.1. Administration . The City Manager or designee shall administer and be the primary contact for Consultant. Prior to commencement of work, Consultant shall contact the City Manager or designee to review the Scope of Services, schedule, and date of completion. Upon notice from the City Manager or designee, Consultant shall commence work, perform the requested tasks in the Scope of Services, stop work, and promptly cure any failure in performance under this Agreement.A.2. Representations . City has relied upon the qualifications of Consultant in entering into this Agreement. By execution of this Agreement, Consultant represents it possesses the ability, skill, and resources necessary to perform the work and is familiar with all current laws, rules, and regulations which reasonably relate to the Scope of Services. No substitutions of agreed-upon personnel shall be made without the prior written consent of City.Consultant represents that the compensation as stated in paragraph 3 is adequate and sufficient for the timely provision of all professional services required to complete the Scope of Services under this Agreement.Consultant shall be responsible for the technical accuracy of its services and documents resulting therefrom, and City shall not be responsible for discovering deficiencies therein. Consultant shall correct such deficiencies without additional compensation except to the extent such action is directly attributable to deficiencies in City-furnished information.A.3. Standard of Care. Consultant shall exercise the degree of skill and diligence normally employed by professional consultants engaged in the same profession, and performing the same or similar services at the time such services are performed.A.4. Modifications . City may modify this Agreement and order changes in the work whenever necessary or advisable. Consultant shall accept modifications when ordered in writing by the City Manager or designee, so long as the additional work is within the scope of Consultant’s area of practice. City of Lacey - RFP - Non-Discretionary Investment Advisory Services 11 Compensation for such modifications or changes shall be as mutually agreed between the Parties. Consultant shall make such revisions in the work as are necessary to correct errors or omissions appearing therein when required to do so by City without additional compensation.2. Term of Contract . This Agreement shall be in full force and effect upon execution and shall remain in effect until completion of all contractual requirements have been met as determined by City. Consultant shall complete its work by <date>, 20 , unless the time for performance is extended in writing by the Parties.Either Party may terminate this Agreement for material breach after providing the other Party with at least 10 days’ prior notice and an opportunity to cure the breach. City may, in addition, terminate this Agreement for any reason by 10 days’ written notice to Consultant. In the event of termination without breach, City shall pay Consultant for all work previously authorized and satisfactorily performed prior to the termination date.3. Compensation and Method of Payment . A.1. The City shall pay Consultant for the performance of those services designated in Exhibit "A," an amount not to exceed $**********. If the description of services on Exhibit "A" designates additional services which may be requested by the City, said additional services will be paid for by the City at the rate set forth on Exhibit "A," which sum may exceed the "not to exceed" amount set forth above; however, said services will only be performed and compensated by the City after the City has directed such performance in writing.A.2. Payment by the City for services will only be made after the services have been performed, a voucher or invoice is submitted in the form specified by the City, and the same is approved by the appropriate City representative. Payment may be made on a monthly or other periodic basis and may be made on the basis of an estimate of the percentage of contract completion accomplished if said procedure is approved by the City.A.3. If an hourly rate of compensation or other means of measurement is set forth on Exhibit "A," the parties intend that said measurement shall be used up to the "not to exceed" figure set forth above.A.4. The City reserves the right to withhold payment under this Agreement for that portion of the work (if any) which is determined in the reasonable judgment of the City Manager or designee to be noncompliant with the Scope of Services, City standards, City Code, and federal or state standards. City of Lacey - RFP - Non-Discretionary Investment Advisory Services 12 4. Notice . Notices other than applications for payment shall be given in writing as follows:TO THE CITY : TO THE CONSULTANT :Name:********** Name: ********** Phone: Phone: Address: Address:5. Applicable Laws and Standards . The Parties, in the performance of this Agreement, agree to comply with all applicable federal, state, and local laws and regulations. Consultant warrants that its designs, construction documents, and services shall conform to all federal, state, and local statutes and regulations.6. Certification Regarding Debarment, Suspension, and Other Responsibility Matters – Primary Covered Transactions .A. By executing this Agreement, the Consultant certifies to the best of its knowledge and belief that it and its principals:1. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any federal department or agency;2. Have not within a three-year period preceding this proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state, or local) transaction or contract under a public transaction; violation of federal or state antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property;3. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (federal, state, or local) with commission of any of the offenses enumerated in paragraph (A)(2) of this certification; and4. Have not within a three-year period preceding this application/proposal had one or more public transactions (federal, state, or local) terminated for cause or default.B. Where the prospective primary participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this Agreement.7. Relationship of the Parties . It is understood and agreed that Consultant shall be an independent contractor and not the agent or employee of City, that City is interested in only the results to be achieved, and that the right to control the particular manner, method, and means in which the services are performed is solely within the discretion of Consultant. Any and all employees who provide services to City under this Agreement shall be deemed employees solely of Consultant. The Consultant shall be solely responsible for the conduct and actions of all its employees under this City of Lacey - RFP - Non-Discretionary Investment Advisory Services 13 Agreement and any liability that may attach thereto.8. Ownership of Documents . All drawings, plans, specifications, and other related documents prepared by Consultant under this Agreement are and shall be the property of City, and may be subject to disclosure pursuant to chapter 42.56 RCW or other applicable public record laws. The written, graphic, mapped, photographic, or visual documents prepared by Consultant under this Agreement shall, unless otherwise provided, be deemed the property of City. City shall be permitted to retain these documents, including reproducible camera-ready originals of reports, reproduction quality mylars of maps, and copies in the form of computer files, for the City’s use. City shall have unrestricted authority to publish, disclose, distribute, and otherwise use, in whole or in part, any reports, data, drawings, images, or other material prepared under this Agreement, provided that Consultant shall have no liability for the use of Consultant’s work product outside of the scope of its intended purpose.9. Records . The City or State Auditor or any of their representatives shall have full access to and the right to examine during normal business hours all of Consultant’s records with respect to all matters covered in this Agreement. Such representatives shall be permitted to audit, examine, make excerpts or transcripts from such records, and to make audits of all contracts, invoices, materials, payrolls, and record of matters covered by this Agreement for a period of three years from the date final payment is made hereunder.10. Insurance . Consultant shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by Consultant, its agents, representatives, employees, or subcontractors.A.1. Minimum Scope of Insurance . Consultant shall obtain insurance of the types described below:1. Automobile liability insurance covering all owned, non-owned, hired, and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage.2. Commercial general liability insurance shall be at least as broad as ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, stop-gap independent contractors and personal injury, and advertising injury. City shall be named as an additional insured under Consultant’s commercial general liability insurance policy with respect to the work performed for the City using an additional insured endorsement at least as broad as ISO CG 20 26.3. Workers’ compensation coverage as required by the industrial insurance laws of the State of Washington.4. Professional liability insurance appropriate to Consultant’s profession.City of Lacey - RFP - Non-Discretionary Investment Advisory Services 14 A.2. Minimum Amounts of Insurance . Consultant shall maintain the following insurance limits:1. Automobile liability insurance with a minimum combined single limit for bodily injury and property damage of no less than $1,000,000 per accident.2. Commercial general liability insurance shall be written with limits no less than $1,000,000 for each occurrence, and $2,000,000 for general aggregate.3. Professional liability insurance shall be written with limits no less than $1,000,000 per claim and $1,000,000 policy aggregate limit.A.3. Other Insurance Provisions . The policies are to contain, or be endorsed to contain, the following provisions for automobile liability, professional liability, and commercial general liability insurance:1. Consultant’s insurance coverage shall be primary insurance with respect to the City. Any insurance, self-insurance, or insurance pool coverage maintained by City shall be in excess of Consultant’s insurance and shall not contribute with it.2. Consultant shall fax or send electronically in .pdf format a copy of insurer’s cancellation notice within two business days of receipt by Consultant.3. If Consultant maintains higher insurance limits than the minimums shown above, City shall be insured for the full available limits of commercial general and excess or umbrella liability maintained by Consultant, irrespective of whether such limits maintained by Consultant are greater than those required by this Agreement or whether any certificate of insurance furnished to the City evidences limits of liability lower than those maintained by Consultant.4. Failure on the part of Consultant to maintain the insurance as required shall constitute a material breach of the Agreement, upon which the City may, after giving at least five business days’ notice to Consultant to correct the breach, immediately terminate the Agreement, or at its sole discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to City on demand, or at the sole discretion of the City, offset against funds due Consultant from the City.A.4. Acceptability of Insurers . Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII.A.5. Evidence of Coverage . As evidence of the insurance coverages required by this Agreement, Consultant shall furnish acceptable insurance certificates to the City Clerk at the time Consultant returns the signed Agreement, which shall be Exhibit C. The certificate shall specify all of the parties who are additional insureds, and shall include applicable policy endorsements, and the deduction or retention level. Insuring companies or entities are subject to City acceptance. If requested, complete copies of insurance policies shall be provided to City. Consultant shall be financially responsible for all pertinent deductibles, self-insured retentions, and/orCity of Lacey - RFP - Non-Discretionary Investment Advisory Services 15 self-insurance.11. Indemnification and Hold Harmless . Consultant shall, at its sole expense, defend, indemnify, and hold harmless City and its officers, agents, and employees, from any and all claims, actions, suits, liability, loss, costs, attorney's fees, costs of litigation, expenses, injuries, and damages of any nature whatsoever relating to or arising out of the wrongful or negligent acts, errors, or omissions in the services provided by Consultant, Consultant's agents, subcontractors, subconsultants, and employees to the fullest extent permitted by law, subject only to the limitations provided below.Consultant's duty to defend, indemnify, and hold City harmless shall not apply to liability for damages arising out of such services caused by or resulting from the sole negligence of City or City's agents or employees pursuant to RCW 4.24.115.Consultant's duty to defend, indemnify, and hold City harmless against liability for damages arising out of such services caused by the concurrent negligence of (a) City or City’s agents or employees, and (b) Consultant, Consultant's agents, subcontractors, subconsultants, and employees shall apply only to the extent of the negligence of Consultant, Consultant's agents, subcontractors, subconsultants, and employees.Consultant's duty to defend, indemnify, and hold City harmless shall include, as to all claims, demands, losses, and liability to which it applies, City's personnel-related costs, reasonable attorneys' fees, the reasonable value of any services rendered by the office of the City Attorney, outside consultant costs, court costs, fees for collection, and all other claim-related expenses.Consultant specifically and expressly waives any immunity that may be granted it under the Washington State Industrial Insurance Act, Title 51 RCW. These indemnification obligations shall not be limited in any way by any limitation on the amount or type of damages, compensation, or benefits payable to or for any third party under workers' compensation acts, disability benefit acts, or other employee benefits acts. Provided, that Consultant's waiver of immunity under this provision extends only to claims against Consultant by City, and does not include, or extend to, any claims by Consultant's employees directly against Consultant.Consultant hereby certifies that this indemnification provision was mutually negotiated.12. Waiver . No officer, employee, agent, or other individual acting on behalf of either Party has the power, right, or authority to waive any of the conditions or provisions of this Agreement. A waiver in one instance shall not be held to be a waiver of any other subsequent breach or nonperformance. All remedies afforded in this Agreement or by law shall be taken and construed as cumulative and in addition to every other remedy provided herein or by law. Failure of either Party to enforce at any time any of the provisions of this Agreement or to require at any time performance by the other Party of any provision hereof shall in no way be construed to be a waiver of such provisions nor shall it affect the validity of this Agreement or any part thereof.City of Lacey - RFP - Non-Discretionary Investment Advisory Services 16 13. Assignment and Delegation . Neither Party shall assign, transfer, or delegate any or all of the responsibilities of this Agreement or the benefits received hereunder without prior written consent of the other Party.14. Subcontracts . Except as otherwise provided herein, Consultant shall not enter into subcontracts for any of the work contemplated under this Agreement without obtaining prior written approval of City.15. Confidentiality . Consultant may, from time-to-time, receive information which is deemed by City to be confidential. Consultant shall not disclose such information without the prior express written consent of City or upon order of a court of competent jurisdiction.16. Jurisdiction and Venue . This Agreement is entered into in Thurston County, Washington. Disputes between City and Consultant shall be resolved in the Superior Court of the State of Washington in Thurston County. Notwithstanding the foregoing, Consultant agrees that it may, at City’s request, be joined as a party in any arbitration proceeding between City and any third party that includes a claim or claims that arise out of, or that are related to Consultant’s services under this Agreement. Consultant further agrees that the Arbitrator(s)’ decision therein shall be final and binding on Consultant and that judgment may be entered upon it in any court having jurisdiction thereof.17. Cost and Attorney’s Fees. The prevailing party in any litigation or arbitration arising out of this Agreement shall be entitled to its attorney’s fees and costs of such litigation (including expert witness fees).18. Entire Agreement . This written Agreement constitutes the entire and complete agreement between the Parties and supersedes any prior oral or written agreements. This Agreement may not be changed, modified, or altered except in writing signed by the Parties hereto.19. Anti-kickback . No officer or employee of City, having the power or duty to perform an official act or action related to this Agreement shall have or acquire any interest in this Agreement, or have solicited, accepted, or granted a present or future gift, favor, service, or other thing of value from any person with an interest in this Agreement.20. Business Registration . Consultant shall register with the City as a business prior to commencement of work under this Agreement if it has not already done so.21. Severability . If any section, sentence, clause, or phrase of this Agreement should be held to be invalid for any reason by a court of competent jurisdiction, such invalidity shall not affect the validity of any other section, sentence, clause, or phrase of this Agreement.The Parties have executed this Agreement this day of ______, 20___.City of Lacey - RFP - Non-Discretionary Investment Advisory Services 17CITY OF LACEY CONSULTANT: By:______By:______Scott Spence *********** City ManagerApproved as to form:______David Schneider City AttorneyATTACHMENT “B”CITY OF LACEY INVESTMENT POLICY1. GENERALA. This policy establishes the rules by which the City of Lacey will invest public funds that will provide maximum security with the highest investment return while meeting the daily cash flow demands of the City of Lacey and conforming to all federal, state, and local statutes governing the investment of public funds. B. Any questions or comments should be directed to the Finance Director at (360) 438- 2624.C. This investment policy applies to all financial assets of the City of Lacey. These funds are accounted for in the City of Lacey‘s Annual Financial Report and include:City of Lacey - RFP - Non-Discretionary Investment Advisory Services 18 General Fund Special Revenue Funds Capital Project Funds Enterprise Funds Internal Service Funds Debt Service Funds Trust and Agency Funds Retirement/Pension Funds Any new fund created by the City Council, unless specifically exempted D. 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. The standard of care to be used by investment officials shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. The investment portfolio is subject to public review and evaluation. The program shall be designed and managed with a level of professionalism that is worthy of and maintains the public trust.E. This policy is divided into the following sections:SECTION 1 GENERAL SECTION 2 OBJECTIVES SECTION 3 DELEGATION OF AUTHORITY SECTION 4 ETHICS AND CONFLICTS OF INTEREST SECTION 5 AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS SECTION 6 AUTHORIZED INVESTMENTS SECTION 7 SAFEKEEPING AND CUSTODY SECTION 8 DIVERSIFICATION SECTION 9 MAXIMUM MATURITIES SECTION 10 INTERNAL CONTROLS SECTION 11 PERFORMANCE STANDARDS SECTION 12 REPORTING SECTION 13 INVESTMENT POLICY ADOPTION2. OBJECTIVESA. The primary objectives, in priority order, of the City of Lacey’s investment activities shall be: City of Lacey - RFP - Non-Discretionary Investment Advisory Services 19 1. Safety: Safety of the principal is the foremost objective of the investment program. Investments of the City of Lacey shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To obtain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. 2. Liquidity: The City of Lacey's investment portfolio will remain sufficiently liquid to enable the City of Lacey to meet all operating requirements that might be reasonably anticipated. 3. Return on Investment: The City of Lacey's investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the City of Lacey's investment risk constraints and the cash flow characteristics of the portfolio. 3. DELEGATION OF AUTHORITYA. Authority to manage the City of Lacey's investment program is derived from the following: Revised Code of Washington (RCW), Washington Municipal Treasurer’s Association model investment policy, BARS manual, and Resolution No. 992. Management responsibility for the investment program is hereby delegated to the Finance Director, who shall establish procedures for the operation of the investment program consistent with this investment policy. B. Procedures should include reference to the following: safekeeping, wire transfer agreements, custody agreements and investment related banking services contracts. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Finance Director. The Finance Director shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. 4. ETHICS AND CONFLICTS OF INTERESTA. Officers and employees involved in the investment process shall refrain from personal business activity that may conflict with the proper execution of the investment program, or may impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the City Manager or Finance Director any material financial interests in financial institutions that conduct business within this jurisdiction, and they shall further disclose any personal financial/investment positions that could be related to the performance of the City of Lacey's portfolio. Investment officers shall refrain from conducting personal investment transactions with the same individuals with whom the business is conducted on behalf of the City of Lacey and shall subordinate their personal investment transactions to those of the City of Lacey, particularly with regard to the timing of purchases and sales. City of Lacey - RFP - Non-Discretionary Investment Advisory Services 20 5. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONSA. No public deposits shall be made except in qualified public depositaries as provided in Chapter 39.58 RCW. B. The Finance Director will maintain a list of financial institutions authorized to provide investment services. C. In addition, a list will also be maintained of approved security broker/dealers selected by credit worthiness. The list may include primary dealers (those who as primary government securities dealers report daily to the New York Federal Reserve Bank) or regional dealers that qualify under Securities and Exchange Commission Rule 15C3-1 (uniform net capital rule).Secondary security dealers may be included if they meet all of the following conditions:1. Have an office in the State of Washington and are currently conducting business with other State of Washington public entities. 2. Have a minimum net worth of $10 million. 2.a) A dealer will not be considered if it has two consecutive quarters of declining net worth or has one quarter with a drop in net worth of five (5) percent or more.D. All brokers/dealers and financial institutions who desire to do business with the City of Lacey must supply the Finance Director with the following:  Annual audited financial statements for the last three (3) years.  Proof of National Association of Securities Dealers certification. . Proof of state registration.  Certification of having read the City of Lacey's investment policy.  References preferably from governmental entities.E. The Finance Director will conduct an annual review of the financial condition of firms. 6. AUTHORIZED INVESTMENTSA. The City of Lacey is empowered to invest in the following types of securities:  The Washington State Local Government Investment Pool (LGIP) (RCW 43.250.040).  Savings accounts or certificates of deposit issued by Washington State Public Depositories (RCW 39.59.020).  United States bonds (RCW 43.84.080).  United States certificates of indebtedness (RCW 43.84.080).  United States Treasury Bills (RCW 43.84.080).  General obligation or utility revenue bonds or warrants of its own or of any other city or town in the state, which at the time of investment have one ofCity of Lacey - RFP - Non-Discretionary Investment Advisory Services 21 the three highest credit ratings of a nationally recognized rating agency (RCW 35.39.030).  Its own bonds or warrants of a local improvement district which are with the protection of the local improvement guaranty fund law (RCW 35.39.030).  United States Government Agency securities and United States Government- Sponsored Corporations including but not limited to Farmers Home Administration, Federal Land Banks, Federal Home Loan Banks, Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), Government National Mortgage Association (Ginnie Mae), Student Loan Marketing Association (Sallie Mae) (RCW 43.84.080).B. The City of Lacey is prohibited from investing in the following types of investments.  Corporate Stocks  Corporate Bonds  Foreign Government Obligations  Futures Contracts  Guaranteed Investment Contracts  Investment in Commodities  Limited Partnerships  Negotiable Certificates of Deposit  Real Estate7. SAFEKEEPING AND CUSTODYA. To protect against potential fraud, embezzlement, or losses caused by the collapse of individual securities dealers, all investment securities purchased by the City shall be held by the City or in safekeeping by the City’s custodian bank or a third party bank trust department, acting as an agent for the City under the terms of a custody or trustee agreement executed by the bank and by the City. The primary agent shall issue a safekeeping receipt to the City listing the specific instrument, rate, maturity, and other pertinent information.B. All security transactions entered into by the City of Lacey shall be conducted on a delivery-versus-payment (DVP) basis. C. Investments and safekeeping procedures are subject to annual review by the Washington State Auditor.8. DIVERSIFICATIONA. The City of Lacey will diversify its investments by security type and institution to reduce overall portfolio risks. With the exception of U.S. Treasury securities and authorized investment pools, no more than 50 percent of the City of Lacey's total investment portfolio will be invested in a single security type or with a single financial institution. However, 85 percent of the City of Lacey’s total investment portfolio may be invested in U.S. Treasury Obligations or 100 percent of the City ofCity of Lacey - RFP - Non-Discretionary Investment Advisory Services 22 Lacey’s total investment portfolio may be invested in the Washington State Local Government Investment Pool.B. At least 15 percent of the portfolio shall be invested in overnight instruments or marketable securities which can be sold to raise cash in one day’s notice.C. Portfolio maturities shall be staggered to avoid a concentration of assets in a specific maturity period.9. MAXIMUM MATURITIESA. To the extent possible, the City of Lacey will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City of Lacey will not directly invest in securities maturing more than five (5) years from the date of purchase. However, the City of Lacey may invest in securities maturing up to twenty (20) years if they consist solely of the corpus of a perpetual operating fund or consist solely of bond reserve funds. Reserve funds may be invested in securities exceeding five (5) years if the maturity of such investments is made to coincide as nearly as practical with the expected use of the reserve funds.B. It is the intent of the City of Lacey to hold investments to maturity, but security exchanges may be executed to upgrade yield if it maintains cash flow requirements and the overall portfolio quality. 10. INTERNAL CONTROLSA. The Finance Director shall subject the investment policies and procedures to the City of Lacey’s annual audit by the Washington State Auditor. This review will provide internal control by assuring compliance with policies and procedures. 11. PERFORMANCE STANDARDSA. The investment portfolio will be designed to obtain an average rate of return during budgetary and economic cycles, consistent with the investment objectives and cash flow needs. B. The portfolio should obtain a market average rate of return during a market/economic environment of stable interest rates. 12. REPORTINGA. The Finance Director shall provide the City Manager consistent periodic reporting. These reports shall provide an accurate and meaningful representation of the investment portfolio and proof of compliance with the investment policy. Quarterly reports will include:  A listing of individual securities held at the end of the reporting period.  Average life and final maturity of all investments listed.  Coupon or discount rate. City of Lacey - RFP - Non-Discretionary Investment Advisory Services 23  Par value and amortized book value.  Percentage of the portfolio in each investment category.  Market value versus book value comparisons, which include unrealized gain or loss information.13. INVESTMENT POLICY ADOPTIONA. The City of Lacey's investment policy shall be adopted by resolution of the City Council. The policy shall be reviewed on an annual basis by the approving authority and the same authority must approve any modifications. Note: This policy was adopted by the Lacey City Council on February 13, 2014.ATTACHMENT “C”INVESTMENT POLICY – ADVISOR CERTIFICATIONCity of Lacey - RFP - Non-Discretionary Investment Advisory Services 24INVESTMENT POLICY – ADVISOR CERTIFICATIONI certify that the firm has received a copy of the City’s Investment Policy, adopted February 13, 2014, and I understand the objectives and constraints outlined in the Policy. I further certify that I am authorized, and do commit the firm I represent, to this same understanding and that this commitment applies to all future amended Investment Policies that our firm would advise and assist in developing.______Signed Title______Firm DateATTACHMENT “D”QUESTIONNAIRE City of Lacey - RFP - Non-Discretionary Investment Advisory Services 25Please complete this questionnaire. In order to adequately compare and evaluate proposals objectively, all proposals must be submitted in accordance with this format. While detailed responses are valued here and elsewhere, to the extent possible they should be prepared simply and economically, providing straightforward, concise information. Table A. INFORMATION ABOUT THE INVESTMENT ADVISORY FIRM1. Briefly describe the evolution of your firm including the date founded, ownership, and any subsidiary relationships. Provide audited financial statements for the past two years and a current interim financial statement. If your firm is privately held and does not produce audited statements, unaudited will be acceptable.2. State the dollar totals of portfolios and the number of public sector portfolios the firm has under non- discretionary advisement and discretionary management.Assets Under Non-Discretionary Advisement # of Totals clients Cities $ Counties $ Special Districts $ Other $ Totals $Assets Under Discretionary Management # of Totals clients Cities $ Counties $ Special Districts $ Other $ Totals $3. Non-discretionary accounts a. How many new non-discretionary accounts have been added by your firm in the last three years? b. How many have discontinued your investment advisory services in the last three years? c. Explain why these accounts discontinued service.4. Discretionary accounts a. How many new discretionary accounts have been added by your firm in the last three years? b. How many have discontinued your investment advisory services in the last three years? c. Explain why these accounts discontinued service.City of Lacey - RFP - Non-Discretionary Investment Advisory Services 26 a.i.5. Provide a statement of the firm’s experience with non-discretionary investment advisory services to entities similar to ours, including the number and dollar totals of your non-discretionary accounts on the West Coast.6. List the project manager and all key personnel to be utilized for the work. Include résumés, description of education, professional designations, certificates or licenses, professional background, experience, skills, expertise and training for the types of services required. 7. Provide at least three local government non-discretionary client references, including contact information (name, physical address, e-mail address & phone number). The references should include at least one entity similar to ours.8. What is the average number of accounts served per portfolio manager?9. Who supplies your firm with market value figures?10. Describe the firm’s research capability and resources (e.g., Bloomberg, PMA Ratings, Highline Data Bank Ratings, etc.). 11. Is firm capable of providing all services identified in this request for proposal?12. In how many days from Professional Services Agreement execution schedule can you (a) begin the transition, (b) complete the transition, and (c) commence services?13. Has there been any turnover of key personnel in the firm in the past 12 months? If yes, please describe.14. Describe any Securities and Exchange (SEC) regulatory censure or litigation related to services your firm provides.15. Provide a copy of the firm’s most recent ADV, Part I and II (including Schedule I), as on file with the SEC. a. Is this firm registered with the State of Washington? b. Identify by page and item number, and explain any adverse information in the ADV and how you mitigated it or how you intend to do so. City of Lacey - RFP - Non-Discretionary Investment Advisory Services 2716. Benchmarks and Performance:Provide advice as to what benchmark(s) the City should maintain or change in order to evaluate portfolio performance, and why. a. Please complete the following tables. Use Global Investment Performance Standards (GIPS) – compliant composite total return gross of fees.If your firm does not report GIPS-compliant results, please state the reason and whether or when it intends to do so.Attach your GIPS-compliant performance presentation as an exhibit to your response. State whether the presentation is verified, and provide the verification letter. State whether your composites have had a performance audit, and provide documentation to support it.It is understood that only discretionary portfolios are reported under GIPS. However, please also provide the number of non-discretionary portfolios that use the selected benchmark. It is also recognized that 2016 GIPS-compliant results are most likely not yet verified or audited. Please note that in your response if that is the case.Calendar Year Performance (GIPS-compliant total return, gross of fees, annual average)Short-Term (18 months & less)Your Firm’s Recommended Benchmark: 2016 2015 2014 2013 2012Your Firm’s Composite: % % % % % Added Value: % % % % % Annualized Quarterly Standard Deviation: % % % % % Number of clients in composite: Number of non-discretionary clients using this benchmark: Percentage of Total that are Government Clients: % % % % %City of Lacey - RFP - Non-Discretionary Investment Advisory Services 28 b. Using the following format for your tables, please provide GIPS-compliant composite returns for your clients who use the benchmarks you recommended above: Short- Term Benchmark Index:______GIPS-compliant Composite Returns Gross Composite % Benchmark % Added Value % of Fees as of 12-31 1 Year % % % 3 Year % % % 5 Year % % % 10 Year % % %Long-Term Benchmark Index:______GIPS-compliant Composite Returns Gross Composite % Benchmark % Added Value % of Fees as of 12-31 1 Year % % % 3 Year % % % 5 Year % % % 10 Year % % %17. Please recommend maximum maturities and weighted average maturities for the operating and core portions of the portfolio. Include your rationale.18. Describe how investment ideas are originated and researched.19. Explain how investment decisions are monitored and evaluated, including rating changes.20. Describe your investment management process and how it relates to the client’s tasks. Include the step-by-step processes for transaction advice, decisions, execution, safekeeping/custody, and accounting, including who does what. A flow chart is not required but desirable.21. Describe procedures used to ensure that portfolios comply with client investment objectives and policies. 22. Have you ever attempted to coordinate a trade that failed or was outside the client’s investment policy? If yes, how often has this occurred and what did you do to resolve the problem to the client’s satisfaction?23. Describe the strategies that will be used to enhance the performance of the investment portfolio.24. Describe your procedures for portfolio review, investment management and client contact.City of Lacey - RFP - Non-Discretionary Investment Advisory Services 29 25. How are brokers/dealers selected? When updated, the City’s investment policy will require approved broker/dealers to submit and annually update a City-approved Broker/Dealer Information Request Form, which includes the firm’s most recent audited financial statements. What process do you have in place to monitor brokers/dealers after they have been approved?26. Identify the types of securities held in your portfolios. Describe the types of investment research the firm utilizes and the methodology used to recommend investment decisions (including maturity and investment selection).Table B. COMPUTER REQUIREMENTS 1. What are the specific requirements for remote access? Are there options? Please describe in detail.2. What security techniques are utilized to protect access to customer data (hardware/software, physical)?3. Does the firm support the Microsoft Windows environment if it provides software to clients? If no, please explain future support plans. If yes, please provide minimum hardware and software configuration.4. Describe media specifications for the firm. Include a description of any electronic or software features available that could be used by the City to interface with the firm to determine daily, weekly and/or monthly portfolio activity. 5. How many days/weeks/months of history can be accessed through the system?6. Does this system require any special hardware or software to access your system? If yes, please describe process, costs and requirements. If there are any third-party product requirements please list those separately and describe your firm’s relationship with the third-party company and commitment to support.7. Describe the features of your system and inquiry capabilities.  Does the firm’s system offer the ability to inquire about specific transactions?  Does the firm’s system offer the ability to categorize investments by fund types or special purpose and query and report by these categories?8. Does your software allow additional users to have read-only “dashboard” access to reports for viewing? 9. Describe your data back-up and recovery processes and the length of time that a back-up is kept.10. Disclose standard for notification to clients regarding Proposer’s computer down-time for maintenance or other anticipated downtime.Table C. REPORTING1. Describe the frequency and nature of the reports you provide and enclose examples. Include methods and formulas used to calculate total return and performance.City of Lacey - RFP - Non-Discretionary Investment Advisory Services 30 2. Describe the type and frequency of credit analysis that would be provided on security issuers and financial institutions (e.g. Highline Bank Ratings and PMA Ratings).3. How often would the representative from your firm meet with the City staff to review portfolio performance and revise investment strategies?4. Does your firm offer reconcilement services for third-party safekeeping? If yes, please describe and include a sample of your standard reports. If no, what alternatives can you offer?TABLE D. TRAINING1. Describe the on-site training for the City staff that the firm would provide.2. Describe any off-site (distance learning) training for staff, such as webinars, videos, etc.Table E. OTHER SERVICES1. Describe services that would assist the City in allocating interest payments to its various sub- categories and funds.2.Based upon information about the City’s investment advisory needs and goals learned during the course of this proposal process, describe any enhancements, technological or otherwise, that the City should consider in order improving efficiencies and portfolio performance.3.What new services or features does the firm plan to offer in the future?Table F. DISASTER RECOVERY/BUSINESS CONTINUITY PLAN1. Briefly describe your disaster recovery or business continuity plan. Please provide a copy of the plan.2. What disaster recovery services can you provide to the City if your firm cannot operate from your own facilities?3.Is there a “hot” back-up processing site? How quickly can the site be implemented and accessed in the event of an emergency? Would the City be required to purchase anything additional to access this site?Table G. PROFESSIONAL SERVICES AGREEMENT a.i.1. Please state any objections or proposed changes, if any, to the Professional Services Agreement. (Attachment A)Table H. COST PROPOSALCity of Lacey - RFP - Non-Discretionary Investment Advisory Services 31 1. Provide non-discretionary fee schedules that would apply to the City’s account, both in basis point and flat fee options. Apply these fees in a range of from $50 million to $120 million. This wide range is set to gain a feel for your overall pricing strategy, but it is not an indication that the City will significantly expand the balances under advisement. The proposal will be deemed to include all costs unless noted.2. Include payment terms required for services rendered (e.g., monthly or quarterly, in advance or arrears).ATTACHMENT “E”COURTESY CHECKLIST OF MATERIALS TO BE SUBMITTEDTo ensure proper submission of proposal, be sure to enclose all requested materials with your proposal. Following is a list of items to be included:___ Five (5) spiral-bound copies of proposal - Four (4) to the City, at the address on the cover page - One (1) to Portfolio Services for Government, LLC, at the address on the cover page ___ Two (2) USB stick or CD copies (one to each of the above entities) ___ Transmittal Letter ___ Table of Contents ___ Statement of Understanding ___ Project Team and Qualifications ___ Approach to the Project and Schedule ___ Completed questionnaire, including GIPS supporting documentation ___ Copy of disaster recovery/business continuity plan ___ Cost Proposal ___ GIPS supporting documentation ___ Proposed edits, if any, to the Professional Services Agreement ___ Attachment C - Investment Policy - Advisor Certification ___ Most recent two years’ financial statement (preferably audited) ___ Copy of the firm’s most recent ADV Parts I & II, including Schedule I, as on file with the SEC ___ Sample of all standard reportsPlease note that this list may not contain all required materials. It is an itemization of key items to assist firms in assembling proposals. Any omission above does not relieve Proposers from providing all required materials and information.City of Lacey - RFP - Non-Discretionary Investment Advisory Services

Non-Discretionary Investment Advisory Services

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