HomeMy WebLinkAboutContract 43405-R1A1 FE CEI VE®.
JINV 2 7 2016
C!!YOFFORTWORM CITY SECRIETA.AY CONTRACT NO.
MSE MATY
AMENDP✓lENT NO. 1 TO
CITY SECRETARY CONTRACT NO.43405-R1
INVESTMENT ADVISORY AND PORTFOLIO MANAGEMENT AGREEMENT
This Amendment is entered into b.y and betwcen the City of Fort Worth (hereafter
"City"), a home rule municipal corporation situated in portions of Tarrant, Denton and Wise
Counties, Texas, with its principal place of business at 1000 Throckmorton Street, Fort Worth,
Texas, and Patterson Capital Managem not ]L,:P dba Patterson & Associates, (hereafter
"Client"), an individual.
WHEREAS, the parties have previously entered into City of Fort Worth City Secretary
Contract No.43405-R1 (the"Contract"), which Was executed on August 17, 2015; and
WHEREAS,the Contract for the purpose of investment advising and portfolio
management for funds and securities to manage and invest monies and securities,to maintain
records, and to perform advisory and consulting services; and
WHEREAS, the original tenn of the Cotitnact expires on June 30, 2016;and
WHEREAS, the City and Client., v ish to extend the term of the Contract for
continued services pursuant to the original Contract.
NOW,THEREFORE; City and Clic;nt acting herein by the through their duly authorized
representatives, enter into the following agreement to amend the contract:
1.
Section 3, Term. The term of the Contract is hereby amended to extend the term to
expire September 30, 2016, unless terminated earlier in accordance with the Contract. Extension
of the term shall not require an increase of Client's Fee under the Contract.
2.
All other provisions of the Contract vvhich are not expressly amended herein shall remain
in full force and effect.
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH, TX
Executed on this the day o , 2016.
CITY OF FORT WORTH: PAT HMSON CAPITAL MANAGEMENT LP
dba PATTERSON&ASSOCIATES
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Contract Authorization:
M&C: G-1761
Date: 06/12/2012
CFW/Patterson&Associates
Paige 2 oft OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
Chubb Group of Insurance Companies Asset Management Protector'" by Chubb
15 Muntain View Road
Warren, New Jersey 07059
DECLARATIONS FEDERAL INSURANCE COMPANY
A stock insurance company,incorporated under the laws
of Indiana, herein called the Company
Capital Center, 251 North Illinois, Suite 1100
Indianapolis, IN 46204-1927
Policy Number: 8241-1541
NOTICE: ASSET MANAGEMENT PROTECTORS'" BY CHUBB PROVIDES CLAIMS-MADE COVERAGE, WHICH
APPLIES ONLY TO"CLAIMS"FIRST MADE DURING THE "POLICY PERIOD", OR ANY APPLICABLE EXTENDED
REPORTING PERIOD. THE LIMIT OF LIABILITY TO PAY DAMAGES OR SETTLEMENTS WILL BE REDUCED AND
MAY BE EXHAUSTED BY "DEFENSE COSTS", AND "DEFENSE COSTS" WILL BE APPLIED AGAINST THE
RETENTION. IN NO EVENT WILL THE COMPANY BE LIABLE FOR"DEFENSE COSTS"OR THE AMOUNT OF ANY
JUDGMENT OR SETTLEMENT IN EXCESS OF THE APPLICABLE LIMIT OF LIABILITY. READ THE ENTIRE
POLICY CAREFULLY BEFORE SIGNING.
ITEM 1. Named Organization: PATTERSON CAPITAL MANAGEMENT LP
BARTON OAKS PLAZA II, 901 S. MOPAC
SUITE 195
AUSTIN, TX 78746
ITEM 2. Policy Period:
(A) Inception Date: August 16, 2015
(B) Expiration Date: August 16, 2016
at 12:01 a.m. both dates at the Address in ITEM 1.
ITEM 3. Limits of Liability and Retentions:
(A) Maximum Aggregate Limit of Liability for $5,000,000
all Loss under the Policy
(B) Aggregate Limits of Liability and Retentions for each Coverage Part selected below:
COVERAGE PART AGGREGATE RETENTION PENDING OR
LIMIT OF LIABILITY PRIOR DATE
Only those Coverage Parts and Insuring Clauses designated with an"X'are included under this Policy. If there
is no"X' inserted next to any specified Coverage Part or Insuring Clause, such Coverage Part or Insuring
Clause and any other reference to it in the Policy shall be deemed to be deleted.
XIDirectors&Officers Liability Coverage Part $'1,000,000.00 $50,000.00 8/1612006
QX Professional Liability Coverage Part: $5,000,000.00 $250,000.00 8/16/2006
X Insuring Clause(A)Separate Account
And Sub-Advisory Liability Coverage
Insuring Clause(B)Fund Adviser
Liability Coverage
Insuring Clause(C) Fund Service
Provider Liability Coverage
Investment Company Coverage Part Not Covered Not Covered Not Covered
Private Fund Coverage Part Not Covered Not Covered Not Covered
vEmployment Practices Liablity Coverage Part Not Covered Not Covered Not Covered
Fiduciary Liability Coverage Part Not Covered Not Covered Not Covered
14-02-13780D(02/2008) 1 of 3
x
Chubb Group of Insurance Companies /asset Management Protector'"" by Chubb
15 Mountain View Road
CMUBB Warren, New Jersey 07059
(C) Retention for each Insured Person each Loss under any $0
Coverage Part for any Non-indemnifiable Loss
(D) Optional Additional Limit of Liability for $0
Independent Directors.
Qlnvestment Company Coverage Part
❑Private Fund Coverage Part
ITEM 4. Coinsurance Percentage: 0.00%
ITEM 5. Extended Reporting Period.-
(A)
eriod:(A) Additional Period: 1 year
(B) Additional Premium: 150% of Annualized Premium for the expiring Policy
Period
ITEM 6. Newly Created and Acquired Fund Thresholds:
(A) Investment Company: $0
(B) Private Fund: $0
ITEM 7. Notice to the Company:
(A) Section VI. REPORTING Notices: Attn: Claims Department
Chubb Group of Insurance Companies
15 Mountain View Road
Warren, New Jersey 07059
(B) All other: Attn: CSI Underwriting Department
Chubb Group of Insurance Companies
15 Mountain View Road
Warren, New Jersey 07059
In witness whereof,the Company issuing this policy has caused this policy to be signed by its authorized officers,
but it shall not be valid unless also signed by a duly authorized representative of the Company.
FEDERAL INSUIZANCVMP N
Secretary President
12/07/15
Date Authorized Representative
14-02-13780D(02/2008) 2 of 3
CNVBB
August 18, 2015
=21,
RE: Confirmation of Binding for
To:
Account Number: 663956
Account: PATTERSON CAPITAL MANAGEMENT LP r -1
BARTON OAKS PLAZA II, 901 S. MOPAC
SUITE 195
AUSTIN, TX 78746
In care of:
Producer Contact: Andrew Nishimura
Producer: ARTHUR J. GALLAGHER RISK MANAGEMENT SERVICES, INC.
300 S. RIVERSIDE#1900
CHICAGO, IL 60606-0000
Licensed Producer: I Stephen R. Fitzsimonds
Chubb Contact: Jose Lopez
(312)681-1341
joselopez@chubb.com
Product: Asset Management Protecto by Chubb Policy
Writing Company: Federal Insurance Company
Policy Form: 14-02-13780 Ed.02/2008
Assigned Policy Number: 8241-1541
Policy Period: From:August 16, 2015
To:August 16, 2016
At 12:01 A.M. local time at the address in Item 1.
Dear Andrew:
The Cornerstone Name and Logo is a designation that Chubb gives to those insurance agents with whom Chubb has established a mutually
beneficial business relationship. The designation will be used in correspondence and advertising that is directed at Customers of
Cornerstone agents,including quote letters,product advertising and related materials.
On behalf of Federal Insurance Company,we are pleased to bind coverage on the following terms:
Asset Management Protectors""by Chubb including:
Directors&Officers Liability(Private) Coverage Section- Form#14-02-13781
Professional Liability Coverage Section- Form# 14-02-13783
Maximum Aggregate Limit of Liability for all Loss under the Policy $5,000,000
Retention for each Insured Person each Loss under $0
any Coverage Part for any Non-indemnifiable Loss
Endorsements(The titles and headings are for convenience only. Please refer to the policy and
endorsements for a description of coverage):
10-02-1295(6/07 ed.) Important Notice to Policyholders
14-02-13872(5/08 ed.) Texas Amendatory Endorsement to the General Terms and
Conditions
14-02-15154(5/09 ed.) Amend Section VI Reporting Endorsement
14-02-18327TX(8/11 ed.) General Terms and Conditions AMPlifier Endorsement
14-02-21779(4/15 ed.) Notice of Loss Control Services
14-02-7964(5/04 ed.) Notice of Loss Control Services
DIRECTORS&OFFICERS LIABILITY(PRIVATE)COVERAGE PART
Including Outside Directorship Liability
Aggregate Limit of Liability $1,000,000
Retention $50,000
Pending or Prior Date 8/16/2006
Endorsements(The titles and headings are for convenience only. Please refer to the policy and
endorsements for a description of coverage):
14-02-14013(3/08 ed.) Notice of Loss Control
14-02-18328TX(9/11 ed.) Private Company Directors and Officers Liability AMPlifier
Endorsement
PROFESSIONAL LIABILITY COVERAGE PART
Coverage's Included '
Insuring Clause(A)Separate Account And Sub-Advisory Liability Coverage
Limit of Liability $5,000,000
Retention $250,000
Pending or Prior Date 8/16/2006
Endorsements(The titles and headings are for convenience only. Please refer to the policy and
endorsements for a description of coverage):
14-02-14011(3/08 ed.) Notice of Loss Control Services
14-02-18332TX(8/11 ed.) Professional Liability AMPlifier Endorsement
Chubb&Son 233 South Wacker Dr. 312.454.4200
Suite 4700 Fax 312.454.0396
Chicago,IL 60606-6303
POLICY INFORMATION
Total Policy Premium $60,019.00 Due 45 days from the end of the month in which the
premium is EFFECTIVE.
Policy Commission 15.00%
Coinsurance 0%
Extended Reporting Period
Additional Period 1 year
Additional Premium 150% of Annualized Premium for the Expiring Policy Period
Billing Type Agency Bill
Important
Term of Binder
Fr—om 12:01 a.m n August 16, 2015
To 12:01 a. , on September 15, 2015
This Binder shall terminate automatically upon the expiration shown above, or upon the issuance of
the policy, whichever occurs first. A short rate premium charge will be made for this Binder unless
the Policy is issued by the Company and accepted by the entity referred to above.
The foregoing Binder for coverage is subject to modification or withdrawal by the Company if, before
the proposed inception date, any new, corrected or updated information becomes known which
relates to any proposed Insured's claims history or risk exposure or which could otherwise change the
underwriting evaluation of any proposed Insured and the Company, in its sole discretion, determines
that the terms of this Binder are no longer appropriate.
This binder does not apply to the extent that trade or economic sanctions or other laws or regulations
prohibit us from offering or providing insurance. To the extent any such prohibitions apply, this binder
is void ab initio.
We appreciate the opportunity to be of service to you, and we look forward to receiving payment of
the premium by the due date. Once coverage becomes effective, cancellation for non payment will
be on a pro-rata basis.
If you have any questions, please call me.
Sincerely,
Jose Lopez
Senior Underwriter
Phone: (312)681-1341
Fax: (312)454-4401
Email: joselopez@chubb.com
Chubb&Son 233 South Wacker Dr. 312.454.4200
Suite 4700 Fax 312.454.0396
Chicago, IL 60606-6303
crHUBB
OFFEREE DISCLOSURE NOTICE OF
TERRORISM INSURANCE COVERAGE
(new policies and renewals with no terrorism
exclusion or sublimit and no premium charge)
Insuring Company: Federal Insurance Company
You are hereby notified that, under the Terrorism Risk Insurance Act (the "Act")
effective December 26, 2007, we are making available to you insurance for losses
arising out of certain acts of terrorism. The policy you are purchasing already
includes insurance for such acts. Terrorism is defined as any act certified by the
Secretary of the Treasury, in concurrence with the Secretary of State and the
Attorney General of the United States, to be an act of terrorism; to be a violent act or
an act that is dangerous to human life, property or infrastructure; to have resulted in
damage within the United States, or outside the United States in the case of an air
carrier or vessel or the premises of a United States Mission; and to have been
committed by an individual or individuals as part of an effort to coerce the civilian
population of the United States or to influence the policy or affect the conduct of the
United States Government by coercion.
You should know that the insurance provided by your policy for losses caused by
acts of terrorism is partially reimbursed by the United States under the formula set
forth in the Act. Under this formula, the United States pays 85% of covered
terrorism losses that exceed the statutorily established deductible to be paid by the
insurance company providing the coverage. However, if aggregate insured losses
attributable to terrorist acts certified under the Act exceed $100 billion in a Program
Year (January 1 through December 31), the Treasury shall not make any payment
for any portion of the amount of such losses that exceeds $100 billion.
If aggregate insured losses attributable to terrorist acts certified under the Act
exceed $100 billion in a Program Year (January 1 through December 31) and we
have met our insurer deductible under the Act, we shall not be liable for the payment
of any portion of the amount of such losses that exceeds $100 billion, and in such
case insured losses up to that amount are subject to pro rata allocation in
accordance with procedures established by the Secretary of the Treasury.
The portion of the offered policy's annual premium that is attributable to insurance
for acts of terrorism is: $ -0-.
If you have any questions about this notice, please contact your agent or broker.
Chubb&Son 233 South Wacker Dr. 312.454.4200
Suite 4700 Fax 312.454.0396
Chicago,IL 60606-6303
62016 M&C Review
Official site of the City of Fort Worth.TCKaS
City Council Agenda The City of Fort Worth logo.
COUNCIL ACTION: Approved on 6/12/2012
DATE: 6/12/2012 REFERENCE G-17615 LOG NAME: 1312
NO.: INVESTMNTSVCS
CODE: G TYPE: NON- PUBLIC NO
CONSENT HEARING:
SUBJECT: Authorize Execution of an Investment Advisory Services Agreement with Patterson Capital
Management, LP, in the Amount of$60,000.00 Per Year with an Initial Three Year Term and
Two One Year Renewal Options (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of an Agreement with Patterson Capital
Management, LP, for investment advisory services in the amount of$60,000.00 per year with an initial
three year term and two one year renewal options.
DISCUSSION:
As part of the Enterprise Resource Planning (ERP) Phase II staffing model, responsibilities within the
Financial Management Services Department will be redistributed and the investment management function
will be outsourced during the term of the project. This approach will increase yield and reduce the cost to
backfill full-time project team members, thereby creating a positive net impact to the City.
Patterson Capital Management, LP, is a Securities and Exchange Commission Registered Investment
Advisory firm. The firm's professionals will provide non-discretionary investment advisory and
coordination services and will work closely with Staff to provide reliable and timely cash flow information
and make the portfolio decisions that best meet those needs.
In order to ensure the cash flow needs and to provide information on market conditions and their portfolio
views and investment actions, Patterson Capital Management, LP,will work directly with Staff on a regular
basis. The firm will never have access to or control over the City's funds or the securities in the portfolio.
The firm will make investment decisions adhering to the City's established Investment Policy and Strategy
as market opportunities occur. Staff will have the final approval of any investment transaction and will
monitor execution with its safekeeping bank.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that funds are available in the current operating
budget of the General Fund.
TO Fund/Account/Centers FROM Fund/Account/Centers
GG01 531200 0134010 $60.000.00
Submitted for Ci Manager's Office by: Susan Alanis (8180)
Originating Department Head: Lena Ellis (8517)
file:///C:Nsers/GavinD/Downloads/MC%20G-17615%2OPatterson%2DCapital%20Management.htm 1/2
6/9/2016 - M&C Review
Additional Information Contact: James Mauldin (2438)
ATTACHMENTS
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