HomeMy WebLinkAboutContract 55799-R1CSC No. 55799-R1
CITY OF FORT WORTH
CONTRACT RENEWAL NOTICE
March 11, 2024
Public Trust Advisors, LLC
Attn: Stephen J. Dixon
717 171h Street, Suite 1850
Denver, CO 80202
Re: Contract Renewal Notice
Contract No. CSC No. 55799 (the "Contract")
Renewal Term No. 1: May 1, 2024 to April 30, 2025.
The above referenced Contract with the City of Fort Worth expires on April 30, 2024 (the
"Expiration Date"). Pursuant to the terms Contract, the Contract may be renewed by the mutual
consent of the parties for up to two, one-year renewal terms. This letter will memorialize the
collective desire of the parties to renew the Contract for its first renewal term, which will begin
immediately after the Expiration Date. All other terms and conditions of the Contract remain
unchanged. Please return this signed acknowledgement letter to the address set forth below
acknowledging receipt of the Contract Renewal Notice.
Please log onto PeopleSoft Purchasing at http://fortworthtexas.a_ ov/Durchasin2 to insure
that your company information is correct and up-to-date.
If you have any questions concerning this Contract Renewal Notice, please contact me at
the telephone number listed below.
Sincerely,
,_�A
John Samford (Mar 12, 202408:17 CDT)
John Samford, City Treasurer
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
Contract Renewal Page 1 of 2
ACCEPTED AND AGREED:
CITY OF FORT WORTH:
By: Mark McDaniel (Mar 14, 202411:32 CDT)
Name: Mark McDaniel
Title: Deputy City Manager
Date: Mar 14, 2024
APPROVAL RECOMMENDED:
Zeo(Mar
By: 14,202408:25 CDT)
Name: Reginald Zeno
Title: Chief Financial Officer
ATTEST:
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By:
Name: Jannette Goodall
Title: City Secretary
VENDOR: PUBLIC TRUST ADVISORS, LLC
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By: Stephen 9 Dixon (Mar 13, 202413:52 EDT)
Name: Stephen J. Dixon
Title: Director, Compliance
Date: Mar 13, 2024
CONTRACT COMPLIANCE MANAGER:
By signing I acknowledge that I am the person
responsible for the monitoring and administration
of this contract, including ensuring all
performance and reporting requirements.
'—�A
By: John Samford(M a r13,202421:02 CDT)
Name: John Samford
Title: City Treasurer
APPROVED AS TO FORM AND LEGALITY:
By:
Name: Taylor C. Paris
Title: Assistant City Attorney
CONTFOXT AUTH IZATION:
M&C: 21-0269
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
Contract Renewal Page 2 of 2
M&C Review
Page 1 of 4
A CITY COUNCIL AGEND
Create New From This M&C
Official site of the City of Fort Worth, Texas
F RTC �'
DATE: 4/13/2021 REFERENCE **M&C 21- LOG 131NVESTMENT ADVISOR SERVICES
NO.: 0269 NAME: — —
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: (ALL) Authorize Execution of a Professional Service Agreement with Public Trust
Advisors, LLC, for Investment Advisory Services for the Financial Management Services
Department in an Amount Not to Exceed $200,000.00 Per Year for a Three -Year Initial
Term with Two One -Year Renewal Options
I=10101 ,ILy,1=1►117_111111101ZI
It is recommended that the City Council authorize the execution of a professional services agreement
with Public Trust Advisors, LLC, to provide investment advisory services for the Financial
Management Services Department with a contract amount not to exceed $200,000.00 per year for an
initial three-year term with two optional one-year renewals.
11]6*401:1.'i1*]ZI
The purpose of this Mayor and Council Communication (M&C) is to authorize a professional services
agreement with Public Trust Advisors, LLC (PTA) to provide non -discretionary (i.e. the City retains
the responsibility for approving all investment trades) advisory services in connection with the City's
general investment portfolio. The non -discretionary investment advisory services include (but are not
limited to) the following:
Being available in a timely manner, in person, by telephone, in virtual collaboration, or e-mail, for
consultation or advice. Advisor will meet with and provide information to Council and
the Financial Management Services (FMS) Department staff members as required. Advisor will
meet periodically with staff to review and refine portfolio strategy and performance and shall
attend and present at the City's quarterly Investment Committee. Both on and off -site, daytime
and evening meetings are possible;
Comply with all applicable federal and State of Texas laws and the ordinances, resolutions, and the
policies of the City of Fort Worth;
Provide assistance with developing and implementing investment strategies that will maintain or
enhance portfolio quality and performance within the parameters of the City's established
investment policy, relevant Federal, State, and Local laws, regulations, and ordinances;
Work with the City's Treasury management staff to assure completion of investment trades,
delivery of the securities and availability of funds, assist with trade settlements when needed, and
obtain and document competitive prices for securities transactions. Provide technical and
fundamental market research including yield curve analysis and future interest rate movements,
etc.;
Provide investment advice including breakeven analysis on recommendations made to sell low yield
securities and replace them with higher yielding securities; and
Periodically (at least annually) review and provide input on the City's Investment Policy. The City
maintains an Investment Policy that is compliant with the Public Funds Investment Act and the
requirements of the Investment Policy Certification Program through the Government Treasurers'
Organization of Texas.
The City sought the services of a highly skilled firm with the following minimum qualifications:
Registered as an Investment Advisor with the Securities and Exchange Commission (SEC) and
registered and able to do business in the State of Texas
Demonstrated familiarity with all applicable Texas statutes with regard to qualified investments for
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public entities (specifically chapters 2256 and 2257 of the Texas Government Code)
Complete independence from any financial institution or securities brokerage firm
A minimum of ten years of experience in managing the investment of government operating and
bonded debt funds
Meet the City's insurance requirements for a professional services engagement
On February 3, 2021, a request for qualifications (RFQ) for investment advisory services was issued
by the FMS Department with a proposal deadline of March 3, 2021. In addition to publishing the RFQ
on the City's website, the RFQ was published on the message board of the Municipal Advisory
Council of Texas to further enhance exposure. Proposals were received from the following firms:
AnclCo Consulting, LLC
Chandler Asset Management, Inc.
Government Portfolio Advisors, LLC
Hilltop Securities Asset Management, LLC
Meeder Investment Management, Inc.
Public Trust Advisors, LLC
The proposals were evaluated by the City's Investment Committee (the Committee), which consists
of key staff from the FMS, Law, and Water Departments. The proposals were evaluated based on the
following criteria:
Qualifications and experience (50\%);
Understanding the needs of the City (20\%);
Commitment to business equity (15\%);
Reasonableness of cost (10\%); and
Soundness of approach (5\%)
Staff from the Diversity and Inclusion office scored the commitment to business equity component of
the evaluation criteria.
Business Equity Division: Public Trust Advisors, LLC addressed the Business Equity requirement and
is compliant to the Business Equity Program and Ordinance.
In addition, references were surveyed from the top three ranked firms by the FMS Treasury
management staff.
At the conclusion of the evaluation process, the Committee unanimously recommended PTA as the
firm that best meets the City's non -discretionary investment advisory requirements.
PTA has proposed a fee of 2.4 basis points based on the City's general investment portfolio market
value plus accrued interest with a fee cap of $200,000.00 per year. As a point of reference, the City
currently pays a fee of 2.5 basis points with a fee cap of $250,000.00 per year. Based on the
average quarterly balance of the market value plus accrued interest of City's general investment
portfolio from calendar year 2020, the proposed fee will translate into savings of approximately
$53,430.00 over the initial three year term. The City's practice is to initially expense the fee upon
payment; however, the fee is ultimately netted against investment earnings and recorded as a
reduction of investment earnings in each fund participating in the City's internal investment pool.
Aqreement Terms
Upon City Council's approval, the initial three-year term will begin on May 1, 2021 and end on April
30, 2024.
Renewal Options
This agreement may be renewed for up to two successive one-year terms at the City's option. This
action does not require specific City Council approval provided that the City Council has appropriated
sufficient funds to satisfy the City's obligations during the renewal term.
About Public Trust Advisors, LLC
PTA has served as the City's investment advisor since January 1, 2017. From day one, PTA has
been responsive to the City's needs and was instrumental in assisting the City with restructuring the
general investment portfolio to maximize investment earnings within the parameters of the City's
Investment Policy and the requirements of the Texas Public Funds Investment Act (PFIA).
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Highlights of PTA's experience, qualifications, and service offering include (but are not limited to):
PTA is an investment adviser registered with the U.S. Securities and Exchange Commission (SEC)
under the Investment Adviser's Act of 1940, as amended. PTA is registered to do business in the
State of Texas.
PTA is an independent investment advisor with no conflicts of interest unlike firms that are
compensated from serving multiple roles within the public sector such as underwriters, banking
institutions, insurance companies, and financial advisory consultants. In addition, PTA does not
transfer revenues or profits from their asset management firm to other joint ventures, subsidiaries,
or companies affiliated under a parent company structure unlike other firms within the industry.
PTA prohibits the use of third -party soft dollar arrangements and has never entered into a soft
dollar arrangement, so PTA's customers are never charged for any soft dollar research.
The PTA team has a lengthy experience in Texas dating back to 2001, which gives them a frontline
view of the history of certain developments in the PFIA.
PTA provides investment management services for the public sector including the management of
local government investment pools (LGIPs) and separately managed accounts (SMAs). As of
December 31, 2020, PTA provides investment advisory and management services for over 233
SMA and LGIP portfolios representing approximately $49 billion in assets under management.
Large staff of professionals at the City's disposal - ten investment advisory professionals, seven
portfolio management professionals, and a credit research team.
Highly customized investment solutions utilizing industry leading strategies, to potentially include
revisions to the investment policy to take advantage of cutting -edge liquidity management
techniques (i.e. a customized local government investment pool or the possible creation of a single
participant investment pool to maximize earnings).
Customized reporting: Authorized City staff will have 24/7 access to customizable dashboard and
reporting capability on the PTA web portal.
Credit research: PTA has its own proprietary credit research and credit team. Every credit counter
party is continually reviewed as deemed necessary.
PTA has vast experience at creating customized investment solutions that conform to the
requirements of the PFIA. The investment solution(s) will be based on the City's cash flows, risk
tolerances, and investment guidelines.
PTA provides two PFIA qualified trainings per year in Texas that satisfy the training hours required
by statute and allow participants to earn CPE credits at no additional cost (except for staff travel
costs, if necessary) to the City.
PTA will attend formal monthly and quarterly Investment Committee meetings to review the
portfolio and to recommend changes to the City's positions as appropriate.
PTA will conduct regularly scheduled compliance reviews of the portfolio.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that funds are available in the current operating budget, as
previously appropriated, in the General Fund to support the approval of the above recommendation
and execution of the agreement. Prior to any expenditure being incurred, the Financial Management
Services Department has the responsibility to validate the availability of funds.
TO
7Fund Department I Account I Project Program Activity Budget Reference # Amount
ID ID Year (Chartfield 2)
FROM
Fund Department Account Project
ID ID
Submitted for Citv Manager's Office bv:
Oriainating Department Head:
Program Activity Budget
Year
Jay Chapa (5804)
Reginald Zeno (8517)
Reference # Amount
(Chartfield 2)
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Additional Information Contact: John Samford (2318)
ATTACHMENTS
M&C 131NVESTMENTADVISORSERVICES Fundinq Availabilitv.docx (CFW Internal)
M&C 131NVESTMENTADVISORSERVICES FID Table.xlsx (CFW Internal)
PTA 1295 Form Citv of Fort Worth SMA.pdf (CFW Internal)
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