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HomeMy WebLinkAbout333-21 RESOLUTION113 West Mountain Street Fayetteville. AR 72701 (479) 575-8323 Resolution: 333-21 File Number: 2021-0940 RFP 21-05, FIRST SECURITY BANK: A RESOLUTION TO APPROVE A FIVE (5) YEAR PROFESSIONAL SERVICES CONTRACT WITH FIRST SECURITY BANK FOR THE PROVISION OF INVESTMENT MANAGEMENT SERVICES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves a five (5) year professional services contract with First Security Bank for the provision of investment management services. PASSED and APPROVED on 12/21/2021 Attest: 0111111111111i i K �• T,Q � �.��'�.•• CITY • . •.t': qy- Kara Paxton, City Clerk Treasurer v,; v J � � .i-t ON��0-*'-- Page 1 Printed on 12/22/21 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Text File File Number: 2021-0940 Agenda Date: 12/21/2021 Version: 1 Status: Passed In Control: City Council Meetinq File Type: Resolution Agenda Number: A.24 RFP 21-05, FIRST SECURITY BANK: A RESOLUTION TO APPROVE A FIVE (5) YEAR PROFESSIONAL SERVICES CONTRACT WITH FIRST SECURITY BANK FOR THE PROVISION OF INVESTMENT MANAGEMENT SERVICES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves a five (5) year professional services contract with First Security Bank for the provision of investment management services. City of Fayetteville, Arkansas Page 1 Printed on 1212212021 City of Fayetteville Staff Review Form 2021-0940 Legistar File ID 12/21/2021 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Deborah Smallwood ACCOUNTING & AUDIT (131) Submitted By Submitted Date Division / Department Action Recommendation: 11/30/2021 Request approval of a five year contract with First Security Bank for investment management services Account Number Project Number Budgeted Item? No Does item have a cost? Yes Budget Adjustment Attached? No Budget Impact: Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget Fund Project Title 5 - 5 - 5 - 5 - V20210527 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Original Contract Number: Comments: Approval Date: CITY OF M,FAYETTEVILLE ARANSS MEETING OF DECEMBER 21, 2021 TO: Mayor and City Council THRU: Paul Becker, Chief Financial Officer Q� FROM: Deborah Smallwood, Accounting Manager DATE: November 22, 2021 SUBJECT: Investment Management Services CITY COUNCIL MEMO RECOMMENDATION: Staff recommends approval of a five year contract with First Security Bank for investment management services. BACKGROUND: In 1999, the State of Arkansas approved Act 1341 which provided for expanded investment opportunities for local municipalities. After the changes to the state law the City's Investment Policy was amended and City staff felt it was prudent to solicit investment management services. The investment of the City's funds is governed by the City's Investment Policy and City staff works closely with the investment manager to ensure prudent care over the City's assets. There is approximately 140 million dollars in the City's current investment portfolio DISCUSSION: In August 2021, the City formed a selection committee and solicited proposals for investment services. Following the applicable rules and regulations of the procurement process, First Security Bank was selected by the committee to provide these services and a contract is being presented at this time for investment management services. COSTS: The fee for investment management services with First Security Bancorp is 10 basis points of the value of the account assets if the balance is over $25,000,000. This is the same price as the past contract. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 TY i' City of Fayetteville, Arkansas FAQ M � Vendor: First Security Bank ARKANSAS Contract: Investment Management Services Renewable Terms: One year with four automatic one-year renewals THIS INVESTMENT MANAGEMENT AGREEMENT ("Agreement") is made and entered into by and between the CITY OF FAYETTEVILLE, ARKANSAS, an Arkansas municipal corporation, by its Mayor and City Clerk, duly authorized by action of its City Council (the "City") and FIRST SECURITY BANK, an Arkansas banking corporation, by its Sr. Vice President and Trust Officer, duly authorized by its Board of Directors ("FSB"). WHEREAS, the City of Fayetteville solicited Requests for Statements of Qualifications for Investment Management Services pursuant to its RFQ No. 21-05; and WHEREAS, First Security Bank submitted a response to the Request for Statements of Qualifications which was, after examination of responses received from other qualified persons, accepted by proper action of the City Council of the City of Fayetteville. Now THEREFORE, in consideration of the mutual promises and obligations of the parties hereto, for other good and valuable consideration, and intending to be bound, the parties agree as follows: 01. Appointment of Investment Manager: The City of Fayetteville hereby appoints First Security Bank to act as investment manager with respect to those financial assets of the City of Fayetteville (the "Account Assets"). First Security Bank will furnish an investment program to maximize the financial returns on the Account Assets while adhering to the City of Fayetteville Investment Policy and consideration of investment risks. 02. Custody of Account Assets: First Security Bank will act as custodian for all of the Account Assets acting through its Trust Division. All Account Assets shall remain in the physical possession of First Security Bank as custodian. First Security Bank shall, during the effectiveness hereof, maintain fiduciary liability insurance with limits of liability not less than $2,000,000. A copy of said policy shall be presented to the City of Fayetteville within ten (10) business days of contract award. 03. Management Authority: The City of Fayetteville hereby authorizes First Security Bank to place orders or otherwise give instructions for the purchase, sale, or exchange of securities on behalf of the City of Fayetteville which are included in the Account Assets without prior consultation or ratification by the City of Fayetteville, giving and granting to First Security Bank, complete discretion as to the nature, amount and timing of all securities transactions, subject only to those restrictions, limitations and guidelines which are set out in the City of Fayetteville, Arkansas, Investment Management Policy which is attached hereto as Appendix A and made a part hereof by this reference, which is incorporated in Resolution No. 169-99, duly adopted by the City Council of the City on December 21, 1999 and last revised 08/01/20021 (the "Investment Policy"). The City of Fayetteville reserves the right to revise or modify the Investment Policy at any time, and from time to time, provided that, no such revision or modification shall be binding upon First Security Bank until written notice thereof is received by First Security Bank. All purchases of securities which will become a part of the Account Assets shall be on a delivery versus payment basis. City of Fayetteville, Arkansas and First Security Bank Contract: RFQ 21-05, Investment Management Services Page 1 of 4 04. Fees: As compensation for its services pursuant hereto, First Security Bank will be paid a fee equal to 14 basis points of the average Account Assets if the average market value of the Account Assets are less than $25 million during a calendar month; and a fee equal to 10 basis points of the average market value of the Account Assets if the average market value of the Account Assets are greater than $25 million during a calendar month. The foregoing fees of First SecuritywuBank do not include fees for brokerage services, if incurred, in connection with the purchase or sale of any security which is or is to become a part of the Account Assets. All fees of First Security Bank and any brokerage fees payable with respect to the Account Assets shall be paid from the Account Assets and shall be separately accounted for in all reports provided to the City of Fayetteville. 05. Changes in Scope or Price: Changes, modifications, or amendments in scope, price or fees to this contract shall not be allowed without a prior formal contract amendment approved by the Mayor and the City Council in advance of the change in scope, cost or fees. 06. Brokerage: a. Selection of Broker. The City of Fayetteville authorizes First Security Bank to place orders for purchases and sales of securities and financial assets through any broker or dealer it chooses, including a broker or dealer which is affiliated with or under common control with First Security Bank. In selecting a broker or dealer for any transaction or series of transactions, First Security Bank will consider such factors as net price, execution, availability of research, and other factors which First Security Bank reasonably believes to be appropriate for purposes of making that decision. The fact that the fees paid for brokerage services for the broker or dealer selected by First Security Bank are greater than fees for which similar services could be obtained, shall not be a basis for liability to First Security Bank. b. Aggregation of Purchases. The City of Fayetteville agrees that First Security Bank may aggregate sale and purchase orders of securities with similar orders being made simultaneously for other accounts managed by First Security Bank, or for accounts of affiliates of First Security Bank if, in the judgment of First Security Bank, aggregation of such orders will result in a net savings to the City of Fayetteville with respect to the purchase or sale order for the particular security. 07. Monthly Reports: The Custodian shall provide the City of Fayetteville with monthly reports of the Account Assets in a format consistent with the reporting requirements of the Governmental Accounting Standards Board and otherwise reasonably acceptable to the City of Fayetteville. The Custodian and First Security Bank shall provide such other and further information as the City of Fayetteville may reasonably require in connection with the Account Assets. 08. Voting of Equity Securities: Unless otherwise directed by the City of Fayetteville, First Security Bank is authorized, in its discretion, to take such action as it deems appropriate with respect to any proxy received with respect to any equity securities which may be or become a part of the Account Assets from time to time. 09. Investment Risks: The City of Fayetteville acknowledges that there are risks inherent in all investments, and that some investments will result in profits and some investments will result in loss. First Security Bank shall not be liable to the City of Fayetteville for any error of judgment or mistake of law in the execution of its City of Fayetteville, Arkansas and First Security Bank Contract: RFQ 21-05, Investment Management Services Page 2 of 4 responsibilities hereunder, or for any loss suffered with respect to the Account Assets, or any other matter arising out of this Agreement, excepting only losses suffered as a result of negligence, bad faith, or willful misconduct of First Security Bank. 10. Term and Termination: This Agreement shall be effective upon execution by both parties and shall continue in force until modified by mutual agreement of the parties in writing, or until terminated on thirty (30) days prior written notice by either party to the other. Upon notice to the Custodian of any such termination, the Custodian shall deliver the Account Assets to, or as directed in writing by, the City of Fayetteville. 11. Documents Comprising Contract: The contract shall include this Agreement for investment management services, as well as the following documents, which are incorporated herein by reference. a. Appendix A: City of Fayetteville, Policy No. AC-02, City investment Policy b. Appendix B: City of Fayetteville's Request for Statements of Qualification (RFQ 21-05) and all of its addenda and attachments; c. Appendix C: First Security's submitted Statement of Qualification (response to RFQ 21-05) d. Appendix D: First Security's Certificate of Insurance as required, listing the City as an additional insured, to be added after award of contract 12. Miscellaneous Provisions: a. Other Activities of First Security Bank: Nothing in this Agreement shall be deemed to restrict First Security Bank or its affiliates from engaging in any other business or in rendering any other investment agency services to any other person. No Assignment: First Security Bank shall not assign this Agreement or delegate its duties hereunder to any non-affiliated third party without the prior written consent of the City of Fayetteville. c. Notices: All notices required or permitted hereunder shall be in writing, and shall be delivered by U.S. Mail, return receipt requested, or via confirmed facsimile, and addressed as listed below, All notices shall be deemed delivered when received, or the first day delivery is refused. If to the City of Fayetteville: If to First Security Bank: City of Fayetteville, Arkansas First Security Bank 113 W. Mountain St, 314 N. Spring Fayetteville, Arkansas 72701 Searcy, AR 72145-1006 Attention: Mayor Attn: Frank Faust, President, Trust Division Facsimile:479-575-8257 Facsimile:501-278-2175 With Copy to First Security Bank: First Security Bank 1219 E. Joyce Blvd Fayetteville, Arkansas 72703 Attn: Adam Rutledge City of Fayetteville, Arkansas and First Security Bank Contract: RFQ21-05, Investment Management Services Page 3 of 4 Facsimile: 479-527-7001 d. Entire Agreement: This Agreement, together with the Exhibit hereto, is the entire agreement of the parties and may be modified only by a writing executed by all partiJ except that the City of Fayetteville may modify the Investment Policy at any time, from tin-ie to time, without the consent of First Security Bank. e. Governing Law: This Agreement has been executed in and shall be construed under the laws of the state of Arkansas, Washington County. f. Counterparts: This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall be one and the same instrument, g. Severability: If any one or more of the provisions hereof are determined to be invalid, illegal or otherwise unenforceable, such determination shall have no effect upon the remaining provisions hereof. which shall remain valid and enforceable in accordance with their terms. 13. Freedom of Information Act: City of Fayetteville contracts and documents prepared while performing city contractual work are subject to the Arkansas Freedom of Information Act. If a Freedom of Information Act request is presented to the City of Fayetteville, the contractor will do everything possible to provide the documents in a prompt and timely manner as prescribed in the Arkansas Freedom of Information Act (A.C.A. 25-19-101 et. Sec.). Only legally authorized photo coping costs pursuant to the FOIA may be assessed for this compliance. First Security Bank By: �44-01 --- Frank F st, resident, rus Division ATTEST;,,� r Company Secretary Business Address 4IC- City, StateA Zip Code l Date Signed: � � I '�) ` City of Fayetteville, Arkansas and First Security Bank Contract. RFQ 21-05, Investment Management Services Page 4 of 4 G"1ERK Vito, ATTEST: `.����.•� Clry Ir Kara Paxton, City Cle =y: (P • �o Ire ti•. -Af^ Date Signed:( 2 21 _ILI RFQ 21-05, Contract - Appendix A AC-02 Page I of 4 ....... . ... . ....... Subject, . ........... City Investments Policy Number: AC-02 Original Policy Date: December 21, 1999 Effective Date of New/Revised Policy: ......... ............. August 1,2021 Revision Dates: . ........ . Replaces ACT-2 December 21, 1999 Custodian: (Division) Accou ting Mayor's Signature and Date The purpose of this policy is to provide guidelines for investment of City of Fayetteville operating funds to preserve the safety of principal, to maintain adequate cash flow, and to maximize interest earnings. This policy applies to the investment of City of Fayetteville operating funds not needed for immediate expenditures. This policy does not govern the investment of employee retirement or pension funds or proceeds of bond issues. Investments will be made within the constraints of applicable State laws and this policy, taking into consideration liquidity needs of the City. Investment decisions will 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. Investment of the funds of the City of Fayetteville shall be directed to the primary objective of safety of principal; the secondary objective shall be maintaining adequate cash flow; and the final objective shall. be maximizing investment yield. AC-02 Page 2 of 4 Except for cash in certain restricted and special funds, the City may consolidate moneys from individual funds to maximize interest earnings. Investment income will be allocated to the various funds based on each fund's participation. AC-2.3 DELEGATION OF AUTHORITY/RESPONSIBILITY: Management of the investment of City funds regulated by this policy shall be the responsibility of the Mayor and the Finance & Internal Services Director. The Mayor and the Finance & Internal Services Director may delegate authority for investment transactions. The Mayor and the Finance & Internal Services Director may, by proper procurement procedures, contract for the services of an asset manager, an investment advisor, or other expert advisor(s) to invest all or a portion of City funds regulated by this policy. Selection. of an independent asset manager or investment advisor will be limited to those candidates who have an office within the City of Fayetteville. 'I'he Mayor and the Finance & Internal Services Director and their designees are authorized to: open and close accounts with financial institutions in the name of the City; make wire transfers of funds for the City;. make deposits of funds for the City; execute collateral, depository and investment agreements for the City; and take any other such actions needed to carry out their responsibilities for the depositing and investing of., the C ity's funds as authorized by State Statues and this policy. The Mayor, the Finance & Internal Services Director, and other City employees assigned to manage the investment portfolio, acting within the intent and scope of this Investment Policy, shall be relieved of personal. responsibility for an individual security's credit risk or market risk. Officers and employees involved in the investment process shall refrain from personal business activities that conflict with proper execution of the investment program or impair their ability to snake impartial investment decisions. The Mayor and the Finance & Internal Services Director shall establish operating procedures to implement this investment policy. AC-2.4 AUTHORIZED INVESTMENTS: A. The City will invest only in book entry securities. B. The City may, without limitation, invest in allowable instruments or securities authorized for investment by Arkansas Code Annotated §§ 14-58-309 (Act 1341 of 1999), and further defined in Section 23-47-401 (Investment Powers and Limitations), or by the Local Government Joint Investment Trust Act, Arkansas Code Annotated §§ 19-8-301 et seq., (Local Government Trusts) as amended. AC-02 Page 3 of C. Other Provisions 1. The Finance & Internal Services Director may establish an account with the Federal Reserve Batik to purchase U.S. Government Securities directly from the U.S. Treasury. 2. Any Arkansas state legislative action that provides for additional investment vehicles allowed or further restricts investment vehicles shall be incorporated into the City's investment policy and will supersede any previous language in this policy. 3. The City will be allowed to hold to maturity any investments existing at the time of enactment of this policy. Reinvestment of such funds will be in accordance with this policy and State Laws. 4. The Mayor and the Finance & Internal Services Director may set additional limitations on the parameters for various types and concentration of investments. Operating procedures will define requirements to implement this policy A. Diversification The City investments regulated by this policy shall be diversified by: limiting investments to avoid over concentration in securities from a specific issuer to five percent (5%) of the cost basis of the City's portfolio at the time of purchase, a limit of fifteen percent (15%) of the cost basis of the City's portfolio will apply to each business sector as defined by any recognized rating agency, except for U.S. Treasury securities and collateralized certificates of deposit, • investing in securities with varying maturities, and continuously investing a portion of the portfolio in readily available funds to ensure that appropriate liquidity is maintained. B. Maximum Maturities The City will attempt to match investment maturities with cash flow requirements and will utilize investments in readily available funds, when needed, to meet ongoing obligations. The City anticipates a range of maturities of ninety (90) days to five (5) years. The City can, in rare cases, consider investments with longer maturities if the funds are easily defined to be used after five (5) years. Security transactions on behalf of the City by an asset manager, or the City itself, will be conducted only with financial institutions and broker/dealers who have offices within AC-02 Page 4 of 4 Washington County unless otherwise authorized in writing by the Mayor and Finance & Internal Services Director. A list of authorized financial institutions and broker/dealers to be used by an asset manager, an investment advisor, or the City itself, will be maintained by the City and provided to such asset manager or investment advisor on a mutually agreed upon basis. Security broker/dealers on the list will meet or exceed the capital adequacy standards set by the Federal Reserve Bank of New York and may include dealers, designated as primary dealers by the Federal Reserve Bank of New York or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 150-1 (Uniform Net Capital Rule). A.. Investment or City funds, including cash held for investment, managed Linder contract of services by an asset manager, investment advisor, or other expert advisor(s) will be placed with a third-patly custodian approved by the City. All trades, where applicable, will be executed by Delivery vs. Payment (I)VI') to ensure that securities arc deposited in an eligible financial institution prior to the release of funds. B. The custodian will make reports as requested by the City or advisor(s) and will be accountable for the assets held by the custodian for the City's account. The custodian will be required to maintain an office in Washington County, Arkansas. C. Collateralization will be maintained as required by State law and procedures established by the City. Demand deposits, time deposits, repurchase agreements, and any other investments requiring collatcralization shall be collateralized at a level of 102 percent of the market value of principal and accrued interest, less the amount insured by the FDIC. CITY OF FAYETTEVILL City of Fayetteville, AR Purchasing Division, Room 306 113 W. Mountain Street Fayetteville, AR 72701 Phone: 479-575-8220 TDD (Telecommunication Device for the Deaf): 479.521.1316 REQUEST FOR QUALIFICATION: RFQ 21-05, Investment and Management Services DEADLINE: September 28, 2021 prior to 200:00 PM, local time DELIVERY LOCATION: City's online procurement portal at http://fayetteville-ar, ov bids PURCHASING MANAGER: Jonathan Smith,'onsmith fayetteville-ar.gov DATE OF ISSUE AND ADVERTISEMENT: Sunday, 08/29/2021 REQUEST FOR STATEMENT OF QUALIFICATION RFQ 21-05, Investment Manageme tServices Business Address: City: 0 x Z�'� Signature: Date: Zip: Submittals shall be submitted via upload and complete submission on the City's electronic platform at http://fayetteville- ar.gov/bids. No physical copies shall be submitted. The City will not accept late or misdirected responses. All statements of qualification shall be submitted in accordance with the attached City of Fayetteville specifications and documents attached hereto. Each Proposer is required to fill in every blank and shall supply all information requested; failure to do so may be used as basis of rejection. Any bid, proposal, or statements of qualification will be rejected that violates or conflicts with state, local, or federal laws, ordinances, or policies. The undersigned hereby offers to furnish & deliver the articles or services as specified, at the prices & terms stated herein, and in strict accordance with the specifications and general conditions of submitting, all of which are made a part of this offer. This offer is not subject to withdrawal unless upon mutual written agreement by the Proposer/Bidder and City Purchasing Manager. City of Fayetteville, AR RFQ 21-05, Investment Management Services Page 1 of 16 City of Fayetteville RFQ 21-05, Investment Management Services Advertisement City of Fayetteville, Arkansas RFQ 21-05, Investment Management Services Request for Statement of Qualifications The City of Fayetteville, Arkansas, is requesting statements of qualifications from firms interested in providing investment management services for a one (1) year term with automatic renewal of four (4) additional one-year terms. All statements shall be received by Tuesday September 28, 2021 before 2:00 PM, local time utilizing the City's electronic platform located at http://fayetteville ar.gov/bids. Late or misdirected proposals shall not be accepted. Submittals will not be accepted after the deadline. The City of Fayetteville shall not be responsible for lost or misdirected RFQ's, or failure of bidder's technical equipment. Forms & addendums can be downloaded from the City's web site at http://fayetteville ar.gov/bids. All questions regarding the process should be directed to Jonathan Smith atoonsrr�ith@fayetteyille ai..ov or (479)575-8220. A non -mandatory pre -proposal conference will be held Wednesday September 8 10:00 AM virtually via Zoom. Information regarding the pre proposal meeting is available on the project ge on the C ectronic bidding platform. All interested parties are encouraged to attend. Statements of qualification submitted shall bee proqualifie toy usin licensed in accordance with all applicable laws of the state and local governments where thje to ated. Pursuant to Arkansas Code Annotated §22-9-20 C y of F ville en ages all qualified small, minority and women business enterprises to bid on and receivA cts ds, s, a construction. Also, City of Fayetteville encourages all general contractors to subct por ion their ctt a dsmall, minority and women business enterprises. The City of Fayetteville reserves the right to rej or a osals a to waive irregularities therein, and all Proposers shall agree that such rejection shall be witho i ility o art c I of Fayetteville for any damage or claim brought by any Proposer because of such rejec ' or s Pr rs seek any recourse of any kind against the City of Fayetteville because of such rejecti0 Ir fling of a Pro ` r sponse to this invitation shall constitute an agreement of the Proposer to these conditions. CITY OF FAYETTEVILLE, ARKANSAS By: Jonathan Smith Title: Sr. Purchasing Agent P: 479.575.8220, E-Mail: onsmith @fa etteville-ar. ov TDD (Telecommunications Device for the DeafJ: (479) 521-1316 Ad date: Sunday August 29, 2021 This publication was paid for by the Purchasing Division of the City of Fayetteville, Arkansas. Amount paid: $XXX.XX. City of Fayetteville, AR RFQ 21-05, Investment Management Services Page 2 of 16 City of Fayetteville RFQ 21-05, Investment Management Services Appendix SECTION: PAGE NUMBER Cover Page 01 Advertisement 02 SECTION A: General Terms & Conditions 04 SECTION B: Vendor References 11 SECTION C: Signature Submittal 12 SECTION D: Scope of Services and General Information 15 City of Fayetteville, AR RFQ 21-05, Investment Management Services Page 3 of 16 City of Fayetteville RFQ 21-05, Investment Management Services SECTION A: General Terms & Conditions 1. SUBMISSION OF A STATEMENT OF QUALIFICATION SHALL INCLUDE: a. A written narrative describing the method or manner in which the Proposer proposes to satisfy requirements of this RFQ in the most cost-effective manner. The term Proposer shall be in reference to a firm or individual responding to this solicitation. The term proposal is used in this document as equal to statement of qualification. b. A description of the Proposer's experience in providing the same or similar services as outlined in the RFQ. This description should include the names of the person(s) who will provide the services, their qualifications, and the years of experience in performing this type of work. Also, include the reference information requested in this RFQ. c. Electronic Submittal: Proposers are required to go to www.fayetteville-wr_gav&ids and follow the prompts to submit a statement of qualification within the electronic bidding platform. Physical submittals are not allowed for this RFQ. i. SOQ's shall be prepared simply and economically, providing a straightforward, concise description of its ability to meet the requirements for the project. Fancy bindings, colored displays, and promotional material are not required. Emphasis should be on completeness and clarity of content. All submit all be formatted for standard 8 %2" x 11" size documentation. Exceptio ould be atics, exhibits, one -page resumes, and City required forms. Propo II be I ' d to twenty- five (25) pages or less, excluding one -page team re ris, refe s, and forms required by the City for completion. All proposal al be u d i PDF format to the City's electronic platform prior to the e eadh d. Proposals will be reviewed folio e stat d line, n h ver sheet of this document. Only the names of responders will be ava as sel s will deal r or various projects. e. Proposers shall submit a statement alifica ased cumentation published by the Fayetteville Purchasing Division. 1#4 f. Proposals must follow the form he RF ors ould structure their responses to follow the sequence of the RFQ, if provided. g. Proposers shall have experience in work of the same r similar nature and must provide references that will satisfy the City of Fayetteville. Proposer may furnish a reference list of clients for whom they have performed similar services and must provide information as requested in this document. h. Proposer is advised that exceptions to any of the terms contained in this RFQ or the attached service agreement must be identified in its response to the RFQ. Failure to do so may lead the City to declare any such term non- negotiable. Proposer's desire to take exception to a non-negotiable term will not disqualify it from consideration for award. i. Local time shall be defined as the time in Fayetteville, Arkansas on the due date of the deadline. Documents delivered in person shall be received before the deadline time as shown by the atomic clock located in the Purchasing Division Office. Documents submitted in the electronic platform shall be submitted prior to the deadline per the system time of the platform. 2. WRITTEN REQUESTS FOR INTERPRETATIONS OR CLARIFICATION: No oral interpretations will be made to any firms as to the meaning of specifications or any other contract documents. All questions pertaining to the terms and conditions or scope of work of this proposal must be sent in writing via e-mail to the Purchasing Department. Responses to questions may be handled as an addendum if the response would provide City of Fayetteville, AR RFQ 21-05, Investment Management Services Page 4 of 16 clarification to the requirements of the proposal. All such addenda shall become part of the contract documents. The City will not be responsible for any other explanation or interpretation of the proposed RFQ made or given prior to the award of the contract. 3. RIGHTS OF CITY OF FAYETTEVILLE IN THIS PROCESS: In addition to all other rights of the City of Fayetteville, under state law, the City specifically reserves the following: a. The City of Fayetteville reserves the right to rank firms and negotiate with the highest-ranking firm. Negotiation with an individual Proposer does not require negotiation with others. b. The City of Fayetteville reserves the right to select the proposal that it believes will serve the best interest of the City. c. The City of Fayetteville reserves the right to accept or reject any or all proposals. d. The City of Fayetteville reserves the right to cancel the entire request. e. The City of Fayetteville reserves the right to remedy or waive technical or immaterial errors in the request for statements of qualification or resulting submittal. f. The City of Fayetteville reserves the right to request any necessary clarifications, additional information, or proposal data without changing the terms of the proposal. g. The City of Fayetteville reserves the right to make selection of the er to perform the services required on the basis of the original proposals without negotiatio . 4. EVALUATION CRITERIA: The evaluation criterion defines the factors t be us the selection committee to evaluate and score responsive, responsible and qualified proposals. poser in ufficient information to allow the selection committee to thoroughly evaluate and sco e oposals. prop sa bmitted shall be evaluated and ranked by a selection committee. The contract will e de o o ° ed P ser, per the evaluation criteria listed in this RFQ. Proposers are not guaran be ra ke . ft 5. COSTS INCURRED BY PROPOSERS: All expenses involved with the prepar nd s sion ro osals to the City, or any work performed in connection therewith, shall be borne s y t o er(s� payment will be made for any responses received, or for any other effort required de by, t rop s rior to contract commencement. 6. ORAL PRESENTATION: An oral presentation and/or interview may be requested of any firm, at the selection committee's discretion. 7. CONFLICT OF INTEREST: a. The Proposer represents that it presently has no interest and shall acquire no interest, either direct or indirect, which would conflict in any manner with the performance or services required hereunder, as provided in City of Fayetteville Code Section 34.26 titled "Limited Authority of City Employee to Provide Services to the City". The Proposer shall promptly notify Jonathan Smith, Sr. Purchasing Agent, in writing, of all potential conflicts of interest for any prospective business association, interest, or other circumstance which may influence or appear to influence the Proposer's judgment or quality of services being provided. Such written notification shall identify the prospective business association, interest or circumstance, the nature of which the Proposer may undertake and request an opinion to the City as to whether the association, interest or circumstance would, in the opinion of the City, constitute a conflict of interest if entered into by the Proposer. The City agrees to communicate with the Proposer its opinion via e-mail or first-class mail within thirty days of receipt of notification. WITHDRAWAL OF PROPOSAL: A proposal may be withdrawn at any time. City of Fayetteville, AR RFQ 21-05, Investment Management Services Page 5 of 16 9. LATE PROPOSAL OR MODIFICATIONS: a. Proposal and modifications received after the time set for the proposal submittal shall not be considered. Modifications in writing received prior to the deadline will be accepted. The City will not be responsible for misdirected responses. Proposers will receive an email confirmation after successful submission in the electronic submission platform. The time set for the deadline shall be local time for Fayetteville, AR. All proposals shall be received in the Purchasing Division BEFORE the deadline stated. Local time shall be defined as the time in Fayetteville, Arkansas on the due date of the deadline. Documents delivered in person shall be received before the deadline time as shown by the atomic clock located in the Purchasing Division Office. Documents submitted in the electronic platform shall be submitted prior to the deadline per the system time of the platform. 10. LOCAL STATE AND FEDERAL COMPLIANCE REQUIREMENTS: The laws of the State of Arkansas apply to any purchase made under this request for statements of qualification. Proposers shall comply with all local, state, and federal directives, orders and laws as applicable to this proposal and subsequent contract(s) including but not limited to Equal Employment Opportunity (EEO), Disadvantaged Business Enterprises (DBE), & OSHA as applicable to this contract. b. Pursuant to Arkansas Code Annotated §22-9-203 The City of Fayette v' encourages all qualified small, minority and women business enterprises to bid on and receivecontracts for services, and construction. Also, City of Fayetteville encourages all general contractors to s n act po of their contract to qualified small, minority and women business enterprises. 11. COLLUSION: Noep The Proposer, by affixing his or her signatur th prop grees e following: "Proposer certifies that his proposal is made without previous and t g, nt, car ecti with any person, firm or corporation making a proposal for the same item d/or s rvi nd is i sp f without outside control, collusion, fraud, or otherwise illegal action." 12. RIGHTTO AUDIT FOIA AND JURISDICITON: a. The City of Fayetteville reserves t Ile e ?ting dor's records as such records relate to purchases between the City and said vend . b. Freedom of Information Ac Ci contracts and d cu nts prepared while performing City contractual work are subject to the Arkansas Freedom of Information Ac . f a Freedom of Information Act request is presented to the City of Fayetteville, the (Contractor) will do everything possible to provide the documents in a prompt and timely manner as prescribed in the Arkansas Freedom of Information Act (A.C.A. §25-19-101 et. seq.). Only legally authorized photocopying costs pursuant to the FOIA may be assessed for this compliance. c. Legal jurisdiction to resolve any disputes shall be Arkansas with Arkansas law applying to the case. 13. CITY INDEMNIFICATION: The successful Proposer(s) agrees to indemnify the City and hold it harmless from and against all claims, liability, loss, damage or expense, including but not limited to counsel fees, arising from or by reason of any actual or claimed trademark, patent or copyright infringement or litigation based thereon, with respect to the services or any part thereof covered by this order, and such obligation shall survive acceptance of the services and payment thereof by the City. 14. VARIANCE FROM STANDARD TERMS & CONDITIONS: All standard terms and conditions stated in this request for statements of qualification apply to this contract except as specifically stated in the subsequent sections of this document, which take precedence, and should be fully understood by Proposers prior to submitting a proposal on this requirement. City of Fayetteville, AR RFQ 21-05, Investment Management Services Page 6 of 16 15. ADA REQUIREMENT FOR PUBLIC NOTICES & TRANSLATION: Persons with disabilities requiring reasonable accommodation to participate in this proceeding/event, should call 479.521.1316 (telecommunications device for the deaf), not later than seven days prior to the deadline. Persons needing translation of this document shall contact the City of Fayetteville, Purchasing Division, immediately. 16. PAYMENTS AND INVOICING: The Proposer must specify in their proposal the exact company name and address which must be the same as invoices submitted for payment as a result of award of this RFQ. Further, the successful Proposer is responsible for immediately notifying the Purchasing Division of any company name change, which would cause invoicing to change from the name used at the time of the original RFQ. Payment will be made within thirty days of invoice received. The City of Fayetteville is very credit worthy and will not pay any interest or penalty for untimely payments. Payments can be processed through Proposer's acceptance of Visa at no additional costs to the City for expedited payment processing. The City will not agree to allow any increase in hourly rates by the contract without PRIOR Fayetteville City Council approval. 17. CANCELLATION: a. The City reserves the right to cancel this contract without cause by giving thirty (30) days prior notice to the Contractor in writing of the intention to cancel or with cause if at any time the Contractor fails to fulfill or abide by any of the terms or conditions specified. b. Failure of the contractor to comply with any of the pr ns of th ract shall be considered a material breach of contract and shall be cause for immediate terry ��If the ct at the discretion of the City of Fayetteville. c. In addition to all other legal remedies available �e City yetteville, the City reserves the right to cancel and obtain from another source, any items and o ervices I ha not been delivered within the period of time from the date of order as determinedQat e y of F eville. d. In the event sufficient budgeted fuginat t vai e f ®n fis riod, the City shall notify the vendor of such occurrence and contracts f t last da o e r Iscal period without penalty or expense to the City. 18. ASSIGNMENT SUBCONTRACTING C0RPQRL%W/ACQUZM17NS ANDANWOR MERGERS: a. The Contractor shall perform this act. nmen f bcontracting shall be allowed without prior written consent of the City. If a Pro s tends to u cont t portion of this work, the Proposer shall disclose such intent in the proposal submi e as a result of this F b. In the event of a corporate acquisition and/or merger, the Contractor shall provide written notice to the City within thirty (30) calendar days of Contractor's notice of such action or upon the occurrence of said action, whichever occurs first. The right to terminate this contract, which shall not be unreasonably exercised by the City, shall include, but not be limited to, instances in which a corporate acquisition and/or merger represent a conflict of interest or are contrary to any local, state, or federal laws. Action by the City awarding a proposal to a firm that has disclosed its intent to assign or subcontract in its response to the RFQ, without exception shall constitute approval for purpose of this Agreement. 19. NON-EXCLUSIVE CONTRACT: Award of this RFQ shall impose no obligation on the City to utilize the vendor for all work of this type, which may develop during the contract period. This is not an exclusive contract. The City specifically reserves the right to concurrently contract with other companies for similar work if it deems such an action to be in the City's best interest. In the case of multiple -phase contracts, this provision shall apply separately to each item. 20. ADDITIONAL REQUIREMENTS: City of Fayetteville, AR RFQ 21-05, Investment Management Services Page 7 of 16 The City reserves the right to request additional services relating to this RFQ from the Proposer. When approved by the City as an amendment to the contract and authorized in writing prior to work, the Contractor shall provide such additional requirements as may become necessary. 21. SERVICES AGREEMENT: A written agreement, in substantially the form attached, incorporating the RFQ and the successful proposal will be prepared by the City, signed by the successful Proposer and presented to the City of Fayetteville for approval and signature of the Mayor. 22. INTEGRITY OF STATEMENT OF QUALIFICATION (RFQ) DOCUMENTS: Proposers shall use the original RFQ form(s) provided by the Purchasing Division and enter information only in the spaces where a response is requested. Proposers may use an attachment as an addendum to the RFQ form(s) if sufficient space is not available on the original form for the Proposer to enter a complete response. Any modifications or alterations to the original RFQ documents by the Proposer, whether intentional or otherwise, will constitute grounds for rejection of such RFQ response. Any such modifications or alterations a Proposer wishes to propose shall be clearly stated in the Proposer's RFQ response and presented in the form of an addendum to the original RFQ documents. 23. LOBBYING: Lobbying or communicating of selection committee members, to City of Fayetteville employees, or elected officials regarding request for proposals, request for qualifications, bids or contrac , uring the pendency of bid protest, by the bidder/proposer/protestor or any member of the bid bi'sgal proposer' estor's staff, and agent of the bidder/proposer/protestor, or any person employed by en Hated with or representing an organization that is responding to the request for proposal, request ualific bid or contract, or has a pending bid protest is strictly prohibited either upon advertisement or n ate esta d by the City of Fayetteville and shall be prohibited until either an award is final or the p is fin olv Zg he City of Fayetteville; provided, however, nothing herein shall prohibit a prospective/ er prop m cothe Purchasing Division to address situations such as clarification and/or q s rel e men ocess. For purposes of this provision lobbying activities shall include but n limite to, tacti m at' ,influencing or attempting to influence action or non -action in con c on wi requ pro , request for qualification, bid or contract through direct or indirect oral or written co cation att obtain goodwill of persons and/or entities specified in this provision. Such actions se an uest f r osal, request for qualification, bid or contract to be rejected. 24. DEBARRED ENTITIES: By submitting a statement of qualification, vendor states submitting entity is not a debarred contractor with the federal, any state, or local government. 25. OTHER GENERAL CONDITIONS: a. Proposers shall provide the City with proposals signed by an employee having legal authority to submit proposals on behalf of the Proposer. The entire cost of preparing and providing responses shall be borne by the Proposer. b. The City reserves the right to request any additional information it deems necessary from any or all Proposers after the submission deadline. c. The request for statement of qualification is not to be construed as an offer, a contract, or a commitment of any kind; nor does it commit the city to pay for any costs incurred by Proposer in preparation. It shall be clearly understood that any costs incurred by the Proposer in responding to this request for statements of qualification is at the Proposer's own risk and expense as a cost of doing business. The City of Fayetteville shall not be liable for reimbursement to the Proposer for any expense so incurred, regardless of whether or not the proposal is accepted. City of Fayetteville, AR RFQ 21-05, Investment Management Services Page 8 of 16 d. If products, components, or services other than those described in this bid document are proposed, the Proposer must include complete descriptive literature for each. All requests for additional information must be received within five working days following the request. e. Any uncertainties shall be brought to the attention to Jonathan Smith immediately via telephone (479.575.8220) or e-mail (onsm� ith(q»>etteville-aL,ov). It is the intent and goal of the City of Fayetteville Purchasing Division to provide documents providing a clear and accurate understanding of the scope of work to be completed and/or goods to be provided. We encourage all interested parties to ask questions to enable all Proposers to be on equal terms. Any inquiries or requests for explanation in regard to the City's requirements should be made promptly to Jonathan Smith, City of Fayetteville, Sr. Purchasing Agent via e-mail (jonsmith_@fetteville-ar g_ov) or telephone (479.575.8220). No oral interpretation or clarifications will be given as to the meaning of any part of this request for statements of qualification. All questions, clarifications, and requests, together with answers, if any, will be provided to all firms via written addendum. Names of firms submitting any questions, clarifications, or requests will not be disclosed until after a contract is in place. g. At the discretion of the City, one or more firms may be asked for more detailed information before final ranking of the firms, which may also include oral interviews. h. Any information provided herein is intended to assist the ProposerPposers preparation of proposals necessary to properly respond to this RFQ. The RFQ is designed to ide qual i with sufficient basic information to submit proposals meeting minimum specificatio s /or tes irements but is not intended to limit a RFas content or to exclude any relevant or essential to i. Proposers irrevocably consent that any lega a Vrka n or in inst it under, arising out of or in any manner relating to this Contract shall be cont ro yn Prop hereby expressly and irrevocably waives any claim or defense in any said action c din on aoi ed of jurisdiction or improper venue or any similar basis. j. The successful Proposer shall not sign the e or t o s ontract or any monies due or to become due hereunder without written consent ofOhis Faye In ca t e successful Proposer assigns all or any part of any monies due or to become due uCothej ment of assignment shall contain a clause substan- tially to the effect that is agreed e ri e s . ee in and to any monies due or to become due to the successful Proposer shall be b to prior 'ens ° ons, firms, and corporations for services rendered or materials supplied for the pe ante of the servi s ed for in this contract. k. The successful Proposer's attention is directed to the fact that all applicable Federal and State laws, municipal ordinances, and the rules and regulations of all authorities having jurisdiction over the services shall apply to the contract throughout, and they will be deemed to be included in the contract as though written out in full herein. The successful Proposer shall keep himself/herself fully informed of all laws, ordinances and regulations of the Federal, State, and municipal governments or authorities in any manner affecting those engaged or employed in providing these services or in any way affecting the conduct of the services and of all orders and decrees of bodies or tribunals having any jurisdiction or authority over same. If any discrepancy or inconsistency should be discovered in these Contract Documents or in the specifications herein referred to, in relation to any such law, ordinance, regulation, order or decree, s/he shall herewith report the same in writing to City of Fayetteville. I. All interested parties shall understand the City is not utilizing AIA contracts for projects. Standard City contracts will be used for all projects. 26. INSURANCE: City of Fayetteville, AR RFQ 21-05, Investment Management Services Page 9 of 16 a. Any project selected under this RFQ shall require professional liability insurance in the amount of $1 million US dollars, at minimum. Such Certificate of Insurance shall list the City as an additional insured and not be required unless firm is selected. 27. SELECTION CRITERIA: The evaluation criterion below defines the factors which will be used by the selection committee to evaluate and score responsive, responsible and qualified proposals. The evaluation factors are as follows: 1. 30 Points — Specialized experience and technical competence of the firm with respect to the type of professional services required 2. 2S Points— Capacity and capability of the firm the perform the work in question including specialized services, within the time limitations fixed for the completion of the project 3. 25 Points — Past record of performance of the firm with respect to such factors as control of costs, quality of work, and ability to meet schedules and deadlines 4. 20 Points— Firm's proximity to and familiarity with the area in which the project is located City of Fayetteville, AR RFQ 21-05, Investment Management Services Page 10 of 16 City of Fayetteville RFQ 21-05, Investment Management Services SECTION B: Vendor References The following information is required from all firms so all statements of qualification may be reviewed and properly evaluated: COMPANY NAME: NUMBER OF YEARS IN BUSINESS: TOTAL NUMBER OF CURRENT EMPLOYEES: HOW LONG IN PRESENT LOCATION: FULLTIME PART TIME NUMBER OF EMPLOYEES PLANNED FOR THIS CONTRACT: FULL TIME PART TIME PLEASE LIST FOUR (4) REFERENCES THAT YOU HAVE PREVIOUSLY PERFORMED CONTRACT SERVICES FOR WITHIN THE PAST FIVE (5) YEARS (All fields must be completed): 1. COMPANY NAME CITY, STATE, ZIP CONTACT PERSON TELEPHONE ELEP ON 01 FAX NUMBER NU E-MAIL ADDRESS 3. Cj COMPANY NAME CITY, STATE, ZIP CONTACT PERSON TELEPHONE FAX NUMBER E-MAILADDRESS City of Fayetteville, AR RFQ 21-05, Investment Management Services Page 11 of 16 City of Fayetteville RFQ 21-05, Investment Management Services SECTION C: Signature Submittal 1. Disclosure Information Proposer must disclose any possible conflict of interest with the City of Fayetteville, including, but not limited to, any relationship with any City of Fayetteville employee. Proposer response must disclose if a known relationship exists between any principal or employee of your firm and any City of Fayetteville employee or elected City of Fayetteville official. If, to your knowledge, no relationship exists, this should also be stated in your response. Failure to disclose such a relationship may result in cancellation of a purchase and/or contract as a result of your response. This form must be completed and returned in order for your bid/proposal to be eligible for consideration. PLEASE CHECK ONE OF THE FOLLOWING TWO OPTIONS, AS IT APPROPRIATELY APPLIES TO YOUR FIRM: 1) NO KNOWN RELATIONSHIP EXISTS Name of Primary Contact: Title of Primary Contact: Phone#1 (cell preferred): E-Mail Address: TAX ID#: DUNS #: City of Fayetteville, AR RFQ 21-05, Investment Management Services Page 12 of 16 Phone#2: Cage Code: 3. Please acknowledge receipt of addenda for this invitation to bid, request for proposal, or request for qualification by signing and dating below. All addendums are hereby made a part of the bid or RFQ documents to the same extent as though it were originally included therein. Proposers/Bidders should indicate their receipt of same in the appropriate blank listed herein. Failure to do so may subject vendor to disqualification. ADDENDUM NO. SIGNATURE AND PRINTED NAME DATE ACKNOWLEDGED 4. Pursuant Arkansas Code Annotated §25-1-503, the Contractor agrees and certifies that they do not currently boycott Israel and will not boycott Israel during any time in which they are entering into, or while in contract, with any public entity as defined in §25-1-503. If at any time during contract the contractor decides to boycott Israel, the contractor must notify the contracted public entity in writing. 5. Contractor agrees that no solicitation of City employees will take place. 6. As an interested party on this project, you are required t vide deb �Ptsuspension certification indicating in compliance with the below Federal Executive Order. C rt . tion c done by completing and signing this form. Federal Executive Order (E.O.) 12549 "Debarment iod pensi quires that all contractors receiving individual awards, using federal funds, and all sub-recipie er 'fy tha rga ization and its principals are not debarred, suspended, proposed for debarment, declar in ' ible, o v ntar' lulled by any Federal department or agency from doing business with the Federal Go t. 0 X+ 7. Signature certifies that neither you r prin ' al i pres eb spended, proposed for debarment, declared ineligible, or voluntarily excl ell fro ticipa ' n thi n ction by any federal department or agency. Questions regarding this form should be dir to th f FaWfogille Purchasing Division. NAME: COMPANY: TAX I D: PHYSICAL ADDRESS: MAILING ADDRESS: PHONE: FAX: E-MAIL: City of Fayetteville, AR RFQ 21-05, Investment Management Services Page 13 of 16 City of Fayetteville RFQ 21-OS, Investment Management Services SECTION D: Scope of Services and General Information 1. BACKGROUND: An amended investment policy was amended on August 01, 2021. A copy of the City's investment policy is attached (Attachment A: AC-02, City Investments) and includes a copy of the applicable statutes. Authorized investments permitted by law are further restricted under Section AC-2.4, Subsection B, lines 1 through 11 of the Policy. The City's Finance and Internal Services Director, or designee, is committed to working closely with the advisor or manager of the City's investments in the development of information systems and reporting requirements. You are encouraged to work with the Accounting and Audit Division to further develop and achieve the desired results. 2. QUALIFICATIONS: a. Organization: Provide a general description of your organization including the ownership, subsidiaries and any affiliations relevant to the City. b. Professional Staff: Provide information i ng th ber and type of investment professionals employed by your organization and i ic,# the e number and type of accounts handled by a ox portfolio manager. Please provider e ) of the cipal(s) who will be responsible for the management of the City's investments. c. Experience: Provide a gen ;scrip n inv ® n ex e nce with public and/or private sector customers in managing s tilizi the ame i i ar p stment policy. Please list a minimum of four (4) such customers t t may c ntact r efe d. Client Base: Describe your i i ional ' envegement asset portfolio and fixed income portfolio totals separately for Gov ntal er i i tlonal entities and identify such assets as operating or pension funds. e. Procedures: Describe the process you woul recommend for establishing the investment objectives and constraints for this account. Describe reporting procedures. Include a proposed action plan to phase in investing of available cash. The City has a current portfolio of approximately $135,000,000 held with an asset manager. f. Resources: Describe your organization's research capabilities and credit review process. Describe efforts yourfirm makes to keep portfolio managers informed of developments relevant to government investment managers. g. Performance: Provide relevant performance statistics. Specifically, provide performance statistics for similar portfolios, as described by the City's Investment Policy, measured against the Bank of America Merrill Lynch 1 to 5 years US Treasury Index and the Merrill Lynch AAA Agency Master Index for the years 2018, 2019 and 2020. City of Fayetteville, AR RFQ 21-05, Investment Management Services Page 15 of 16 3. REQUIREMENTS: The selected firm will be required to enter into a non-exclusive contract with the City for investing of a portion of the City's operating funds. More than one manager may be selected by the City. b. The contract will include a provision for third party custodial services; delivery versus payment provisions; settlement procedures, Term of Agreement; Termination and Rescission provisions, insurance requirements; and other provisions considered necessary and/or advisable. Fees will be negotiated after contract award and will not be part of the evaluation. Records and reporting requirements will include a written quarterly report for Accounting Director an annual report for City Council. The contract will also require conformance with the City's investment policy, with emphasis on principal preservation, and all applicable State regulations. c. Provide history of any complaints, censure or litigation by the Securities and Exchange Commission and/or other regulatory agencies involving your organization within the last three (3) years. d. Past record (if any) or malpractice claims or professional conduct claims including the outcome & resolution. e. The proposed shall maintain in force at all times during t of the services contemplated herein, insurance for Workers' Compensation, Gene iability a ors and Omissions Liability. Such policies shall be issued by companies authorized t iness State of Arkansas. f. The proposed is responsible for ful mplet pliance with all applicable laws, rules, regulations and licensing requirements imposed any aut r having jurisdiction. The proposed must be registered with the Securities d han e issio a any other applicable Arkansas State required registration. g. For investing, arranging third p t stod' e ice roviding written reports for a portion of the City of Fayetteville's (City) oper unds eded I mediate expenditures. h. STATEMENTS OF QUALIF N S T IN L D EES OR PRICING. e EXPECTED PROJECT TIMELICi Project Advertisement: Sunday, August 29., 2021 Deadline for Statements of Qualification: Tuesday, September 28, 2021 before 2:00 PM, local time Interviews with short listed firms (tentative) week of October 11, 2021, times TBD City Council Deadline (deadline for signed contract) October 27, 2021 by Noon City Council Agenda Session November 09, 2021 City Council Meeting November 16, 2021 5. PERIOD OF CONTRACT: Initial contract period is intended to be for one year, from the date of signed contract by both parties. However, this agreement may be renewed for four (4) consecutive one (1) year terms. Each such annual renewal term shall be subject to budget approval by the City Council. In addition, the City of Fayetteville reserves the right to cancel this contract, at any time, with a thirty (30) day written notice. City of Fayetteville, AR RFQ 21-05, Investment Management Services Page 16 of 16 AC-02 Page] of 11 7,11111 01 i", ! ", -,A I VA Subject: City Investments Policy Number: - - -------- ........ ......... ................. AC-02 Original Policy Date: . .. ... . ............................. . . . ......... ................................... ... ............ ... .. ..... ... December 21, 1999 Effective Date of New/Revised Policy: . . ... . . ................. August 1, 2021 Revision Dates: Replaces ACCT-2 December 21, 1999 Custodian: (Division) Accou ting Mayor's Signature and Date .......... . Investments will be made within the constraints of applicable State laws and this policy, taking into consideration liquidity needs of the City. Investment decisions will 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. Investment of the funds of the City of Fayetteville shall be directed to the primary objective of safety of principal; the secondary objective shall be maintaining adequate cash flow; and the final objective shall be maximizing investment yield. AC-02 Page 2 of Except for cash in certain restricted and special funds, the City may consolidate moneys from individual funds to maximize interest earnings. Investment income will be allocated to the various funds based on each fund's participation. Management of the investment of City funds regulated by this policy shall be the responsibility of the Mayor and the Finance & Internal Services Director. The Mayor and the Finance & Internal Services Director may delegate authority for investment transactions. The Mayor and the Finance & Internal Services Director may, by proper procurement procedures, contract for the services of an asset manager, an investment advisor, or other expert advisor(s) to invest all or a portion of City funds regulated by this policy. Selection of an independent asset manager or investment advisor will be limited to those candidates who have an office within the City of Fayetteville. The Mayor and the Finance & Internal Services authorized to: open and close accounts with I- ial (P(c make wire transfers of funds for the City; def ft tits - 0, collateral, depository and investment a e tits fi actions needed to carry out their rn, Ns,� ilitie. City's funds as authorized by Stajp,'tatW-s and 0 The Mayor, the Finance & a (Zer, es Direc a es lio, 6akrg-Y with lo to manage the investment r � 4fr s o nA," . Vo Policy, shall be relieved of rson ,$,'ponsi or market risk. Officers and i ecs I d in from personal business acti Kl��,that t WK4 X111-a- I program or impair their abe*to ma qi"( DirVnd their designees are inst4r4qj. vs, in the name of the City; )Vj f funds for the City; execute Wee �ity; and take any other such the depositing and investing of the He ,1:a�50t er lity employees assigned 14 into4UCE-cope of this Investment ,RFAWividual security's credit risk n he investment process shall rel-rain �oiler execution of the investment anient decisions. The Mayor and the Mance & Internal vices Director shall establish operating procedures to implement this investment policy. A. The City will invest only in book entry securities. B. The City may, without limitation, invest in allowable instruments or securities authorized for investment by Arkansas Code Annotated §§ 14-58-309 (Act 1341 of 1999), and further defined in Section 23-47-401 (Investment Powers and Limitations), or by the Local Government Joint Investment Trust Act, Arkansas Code Annotated §§ 19-8-301 et seq., (Local Government Trusts) as amended. AC-02 Page 3 of 4 C. Other Provisions 1. The Finance & Internal Services Director may establish an account with the Federal Reserve Bank to purchase U.S. Government Securities directly from the U.S. Treasury. 2. Any Arkansas state legislative action that provides for additional investment vehicles allowed or further restricts investment vehicles shall be incorporated into the City's investment policy and will supersede any previous language in this policy. 3. The City will be allowed to hold to maturity any investments existing at the time of enactment of this policy. Reinvestment of such funds will be in accordance with this policy and State Laws, 4. The Mayor and the Finance & Internal Service etor may set additional Service , TY limitations on the parameters for vari types a icentration of investments. Operating procedures will define re t, c �nt s plernent this policy AC-2.5 INVESTING PARAMEZ: ® investing in securities with varying maturities, and continuously investing a portion of the portfolio in readily available funds to ensure that appropriate liquidity is maintained. B. Maximum Maturities The City will attempt to match investment maturities with cash flow requirements and will utilize investments in readily available funds, when needed, to meet ongoing obligations. The City anticipates a range of maturities of ninety (90) days to five (5) years. The City can, in rare cases, consider investments with longer maturities if the funds are easily defined to be used after five (5) years. 0 -111-ift 1 M11- Security transactions on behalf of the City by an asset manager, or the City itself, will be conducted only with financial institutions and broker/dealers who have offices within AC-02 Page 4 of 4 Washington County unless otherwise authorized in writing by the Mayor and Finance & Internal Services Director. A list of authorized financial institutions and broker/dealers to be used by an asset manager, an investment advisor, or the City itself, will be maintained by the City and provided to such asset manager or investment advisor on a mutually agreed upon basis. Security broker/dealers on the list will meet or exceed the capital adequacy standards set by the Federal Reserve Bank of New York and may include dealers designated as primary dealers by the Federal Reserve Bank of New York or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 150-1 (Uniform Net Capital Rule). A. Investment or City funds, including cash held for investment, managed under contract of services by an asset manager, invest V dvisor, or other expert advisor(s) will be placed with a third Gusto^ftulhtpproved by the City. All trades, where applicable, will be - &d by -N'very vs, Payment (I)VP) to ensure that securities are deposil-d P-71h, cli C nancial institution prior to the release of funds. I& N B. The custodian will mak ep s a &Vsiedl by t4h?Zity or advisor(s) and will be accountable for the s eld EL an fb e City's account. The custodianwill her to Oknt , n an11 in gton County, Arkansas. C. Collateralization will tain rcqui y State law and procedures established b theOt �&man sits*,..t(; I I Zk _ nP deposits, repurchase agreements, and any other inv °�-ts re y c ralization shall be collateralized at a level of 102 pe VceI lieIIlrthe mar et vAi rincipal and accrued interest, less the c amount ins FDIC. %%j RFQ21-05, Addendum 1 Date: Wednesday, September 15, 2021 To: All Prospective Vendors MM.Am CITY OF FAYETTEVILLE ARKANSAS From: Jonathan Smith — 479.575.8220—ignsmithPfayettevillev.ar o_v RE: RFQ 21-05, Investment Management Services This addendum is hereby made a part of the contract documents to the same extent as though it were originally included therein. Bidders should indicate their receipt of same in the appropriate blank of the Bid Form. BIDDERS SHOULD ACKNOWLEDGE THIS ADDENDUM ON THE DESIGNATED LOCATION ON THE BID FORM. 1. The following questions were submitted regarding RFQ 21-05: Question City Response NJ 1. Can the City provide a current holdings re er es, this information will be attached in this the portfolio? addendum. 2. SECTION D: Scope of Servi Gen al Information, 2. QUALIFICATION etter es "Performance: Provide relevant per r nce statistics. Specifically, provide perfor e sta for similar portfolios, as descri the Investment Policy, measur a i st the B k o America Merrill Lynch 1 to 5 y s US Treasury In and the Merrill Lynch AAA Agency Master Index for the years 2018, 2019 and 2020." Are these the current benchmarks for the portfolio? If not, what are the portfolio's current benchmark(s)? Can the proposer present performance statistics for benchmarks similar to the BoAML 1-5 YR US Treasury Index and/or the ML AAA Agency Master Index (i.e. Bloomberg indices) or is the City requesting the proposer present performance against these stated benchmarks? Yes 115 Tele—commu€ i aClom Devkc e fot the Deaf TDD (479) 521-1316 113 West Mountain - Fayetteville, AR 72701 3. What is the current and/or expected mandate There is no guaranteed size of the portfolio. The City size? Is there a portion of the City's portfolio managed uses the funds to cash flow the operations of the City. internally that is not part of the Scope of Services of There is no portion managed internally at this time. this mandate for investment management services? 4. Does the City have a current investment firm First Security Bank managing the portfolio? If so, who is the incumbent? 5. Can the City provide the fees/fee schedule paid to The current fees are 10 basis points on the average the current investment manager(s) to provide market value of the account assets if the Assets are investment management services for the portfolio? greater than $25,000,000. 6. POLICY AND PROCEDURE, Policy Number AC-02, AC-2.5 INVESTING PARAMETERS states: "The City investments regulated by this policy shall be diversified by: limiting investments to avoid over concentration in securities from a specific issuer to five percent (5%) of the cost basis of the City's portfolio at the time of purchase, a limit of fifKeery basis City's lio BICS Level 1 percent (15%) of the cost of the jeany will apply to each business sector as defined eas recognized rating agency, except forPod ep it securities and collateralized cer+hB What does the City define as thness for"? Does "business sector" refer toIC 1 1 or Level 2? Does "business sector" ref o ctor 47N industry limits? 7. POLICY AND PROCEDURE o Number C-0 , AC-2.6 ALLOWED INSTITUTI states: "Securit transactions on behalf of the City by an asset manager, or the City itself, will be conducted only with financial institutions and broker/dealers who have offices within Washington County unless otherwise authorized in writing by the Mayor and No Finance & Internal Services Director." Can the City provide a current list of approved broker/dealers? Is the City open to authorizing broker/dealers with offices outside of Washington County if the broker/dealer meets the City's other qualifications to "meet or exceed the capital adequacy standards set by the Federal Reserve Bank of New York and may include dealers designated as primary dealers by the Federal Reserve Bank of New York or regional dealers 2I 5 %ipronimu€sic ations Device for the Ezed TD1) (479)521-1316 113 tAt,�st teat€nnin - Fsyf�,ttevi,le, lA 72701 that qualify under Securities and Exchange Commission (SEC) Rule 150-1 (Uniform Net Capital Rule)"? 8. AC-2.4 AUTHORIZED INVESTMENTS, Letter B references Arkansas Code Section 23-47-401 (Investment Powers and Limitations). Can the City clarify letter (b), number (1) that states: "A state bank may invest no more than twenty percent (20%) of its The City takes a very conservative approach to capital base in any single investment of the following investing and would only allow a very limited amount types: (1) Corporate debt obligations, including in corporate or business bond commercial paper, of any corporation that is not an affiliate or subsidiary of the bank". Is 20% the corporate sector maximum of the total portfolio inclusive of the 15% "business sector" limit? What is the corporate sector maximum for the portfolio? se co) 9. Are investment grade floating rate corporate no that meet all issuer restrictions an allowab e No investment? 10. Who is the City's current c n? ® First Security Bank 11. The RFP states: "Pursuant to Ar Cod AL le Annotated §22-9-203 the City tt vil encourages all qualified small n y and n® � business enterprises to bid o a receive contra s for goods, services, and construction." Although o firm is over 51% minority -owned and operated, we do No not qualify for the state's Minority and Women - Owned Business Enterprise Certification program because the firm's majority owners are not legal permanent residents of Arkansas and do not file state income tax returns with the Arkansas Department of Finance and Administration? Does the City accept MBE certifications from other states and cities? 12. Please provide a copy of the service agreement. A copy of the service agreement is included in this Addendum. � _V d�. 3 1 5 TelecomnWnicatiom Device fog the Deaf DD (' 79) s21-1316 11a'Wesr mou t in - Fayetteville, AR 72701 13. Page 11 of the RFQ requests four references we previously performed contract services for and page 15 (under line item c.) requests four customers who This RFQ only requires a total of 4 references. Those may be contacted for references. Is page 11 references can be either previous clients or current requesting four former clients and page 15 is clients. requesting 4 current clients or can the references include on page 11 also be used on page 15? 14. SECTION D: Scope of Services and General Information, 3. Requirements, Letter b. states "The contract will include a provision for third party custodial services...". Letter g states "For investing, arranging for third party custodial services..." Can the City provide clarification on whether the No mandate Scope of Services includes custodial services and/or assisting the City in arranging custodial services? Our firm only provides investment management services and does not provide or arrange custodial services. Would proposal still be considered for this mandate? 15. As of our response/submissi do part 1 incl d proposers need to address, answer, QaT Z) SECTION A G all or part of - er Conditions? For example, 1. SIO 0 A y po s d to address, answer, and/or include Sec even if it is a duplication of a different STATEMENT OF QUALIFICATION HAL LUDE , section requirement. has several letters (a., b., e., h., et req information, some of which is cov in E D: Scope of Services and Gene I n matio 2. A non -mandatory pre -proposal conference was held virtually via Zoom on September 8, 2021. The listing of attendees via Zoom is attached for disclosure to all interested parties. a. Attendees: i. Andrea Foren ii. Liliana Ferman iii. David Calvert iv. Jonathan Smith v. Madison Lancaster vi. 17175744240 vii. Chafen DeLao viii. 15012793408 ix. 18328688841 Note: Copy of previous contract included lfthe is ce o during contract document preparation f Addendum 1 which was removed 415 Telecommunications Dee c e fcn the ed TDD (479) 521-1316 113 "At st MouMain - Fayrttevifle BAR 72?01 City of Fayetteville CITY e t Pre -Proposal Conference: RFQ 21-05, Investment ARKANSAS Management Services Date: 09/08/2021 at 10:00 AM Meeting ID 852989536 55 Topic Pre-Prol oral Conference: RFQ 21-05, Investment vlanagement Services Start Time 9/08/21 at 9:55 AM End Time 9/08/21 at 10:11 AM User Email aforen )fayetteville-ar.gov Duration (Minutes) 17 Participants 9 5 5 Devicefor the Deaf TDD(479)521-131 i13�i,Fest��unta�r�-F�}ect��t€I,�1 7�7t�i RFQ 21-05, Contract - Appendix C CITY OF FAYETTEV ARKANSAS City of Fayetteville, AR Purchasing Division, Room 306 113 W. Mountain Street Fayetteville, AR 72701 Phone: 479-575-8220 TDD (Telecommunication Device for the Deaf): 479.521.1316 REQUEST FOR QUALIFICATION: RFQ 21-05, Investment and Management Services DEADLINE: September 28, 2021 prior to 200:00 PM, local time DELIVERY LOCATION: City's online procurement portal at http://fayetteville-ar.gov/bids PURCHASING MANAGER: Jonathan Smith, jonsmith@fayetteville-ar.gov DATE OF ISSUE AND ADVERTISEMENT: Sunday, 08/29/2021 REQUEST FOR STATEMENT OF QUALIFICATION RFQ 21-05, Investment Management Services Name of Firm: First Security Bank Contact Person: Frank Faust E-Mail: ffaust@fsbank.com Business Address: 314 North Street City: Searcy Signature:'' Title: President Trust Division Phone: 501.279.3408 State: AR Zip: Date: 9/28/2021 72143 Submittals shall be submitted via upload and complete submission on the City's electronic platform at http://fayetteville- ar.gov/bids. No physical copies shall be submitted. The City will not accept late or misdirected responses. All statements of qualification shall be submitted in accordance with the attached City of Fayetteville specifications and documents attached hereto. Each Proposer is required to fill in every blank and shall supply all information requested; failure to do so may be used as basis of rejection. Any bid, proposal, or statements of qualification will be rejected that violates or conflicts with state, local, or federal laws, ordinances, or policies. The undersigned hereby offers to furnish & deliver the articles or services as specified, at the prices & terms stated herein, and in strict accordance with the specifications and general conditions of submitting, all of which are made a part of this offer. This offer is not subject to withdrawal unless upon mutual written agreement by the Proposer/Bidder and City Purchasing Manager. City of Fayetteville, AR RFQ 21-05, Investment Management Services Page 1 of 16 Response to Provide Investment Management Services (RFQ 21-05) to the City of Fayetteville, Arkansas ,VirstSecurity f Crews it tSecurity I Crews September 28, 2021 Jonathan Smith, Sr. Purchasing Agent City of Fayetteville, AR Purchasing Division, Roorn 306 113 W. Mountain Fayetteville, AR 72701 httt?s:/;www.fayettevilleWr.qov/bids RE: Response for Qualifications (RFQ 21-05), Investment Management Services Dear Mr. Smith: On behalf of the First Security Bank's Trust and Wealth Management Department and Crews & Associates, Inc., an affiliate of First Security Bank, we respectfully submit this proposal to the City of Fayetteville (the "City") to serve as its Investment Manager. It is our intention through this joint proposal to provide the City with an investment account whose performance and trading philosophy will provide value to the citizens of the City. First Security is an Arkansas -based financial services company headquartered in Searcy, Arkansas. Our investment banking affiliate, Crews & Associates, Inc., ("Crews") is a wholly - owned subsidiary of First Security Bancorp. Headquartered in Little Rock, Arkansas, Crews was incorporated in '1979. First Security Bank maintains an extensive footprint in northwest Arkansas, especially in Fayetteville. First Security and our affiliate organizations are proud of our Arkansas heritage and the expertise and business acurnen our trust bankers and financial experts offer our clients. We appreciate the opportunity to submit our qualifications and we look forward to working with the City. Sincerely, 61�,W r' ' 1- Frank Faust C"" President Trust Division First Security Bank A��. Dennis Clay Chief Executive Officer Crews & Associates, Inc. Crews & Associades, Inc, ...,.? t ,.z. ,: F.e? so1i=o 800 1 Lillie, AR 7220 50UM7,2r C10 Roi,,,affl, . 80 , 66, i 0 (:e.< l fret) ? 501.907.4000ax) a;,`t.wsfs,com Executive Summary RFQ 21-05 ir�vestrr�er�t iVla�a err�et7t services First Security Bank and Crews & Associates, Inc. (the "Financing Team") have provided the City of Fayetteville Investment Management Services for over fifteen years. When we received the assets in this portfolio on November 30, 2006, the account market value was $69,668.733. Pursuant to RFQ 11- 08, the Financing Team was awarded a five-year term and pursuant to RFQ 16-03, the Financing Team was awarded another five-year term. Currently the portfolio has a market value of over $135,000,000. In addition, over the last fifteen years, $26,676,698 of distributions have been made frorn the portfolio and $72,413,500 of contributions have been made to the portfolio. It has been the Financing Team's desire and focus to provide the best execution cost for the securities that are permissible within the City's Investment Policy. That Investment Policy lists the objectives, in order, as: 1) safety of principal, 2) maintaining adequate cash flow, and 3) maximizing investment yield. During our fifteen years serving as the City's Investment Manager, we have never once experienced a defaulted bond. Each month, we have specifically reviewed the investments held in the account to make sure no investment in the account had an increased risk of default. Over the last fifteen years, the portfolio has maintained cash flow to the City, as evidenced by distributions totaling $26.6 million, with $72.4 million in contributions during that same period. Lastly, we have maximized investment yield. We have paid 25 bps on the money market in the First Security Bank Investment Account and always sought out the required investments within the 1 to 5-year maturity term. We recognize that the yield has decreased over the period but submit to the committee that was due to the Fed's Monetary Policy of lowering interest rates to jump start the economy since COVID-19 was discovered. We believe that once COVID-19 is ameliorated and the Fed modifies its monetary policy, interest rates will recalibrate to the market and without the Fed's significant intervention in the bond market, bond rates will rise. The current portfolio is perfectly placed with a very short average maturity of 2.39 years. This is an important tactical strategy as we anticipate rising rates and we want to be in position to take advantage of those rising rates as opposed to holding onto longer term bonds whose market value will erode and returns dwindle as compared to future market rates. We thank you for your past confidence in our Financing Team and hope that you will continue to place the faith and confidence in us for the next five years. Thank you. f'roposai submitted to: City of Fayetteville, Arkansas ,yFhl;tSecurlty 1 C_;ri ,rl The following response is submitted on behalf of First Security Bank's Trust and Wealth Management Department (the "Trust Department') and Crews & Associates, Inc., (""Crews", collectively with the Trust Department, the "Financing Team'). The Financing Team does not foresee a possible conflict of interest with any employee of the City or elected City official. A. Organization: Provide a general description of your organization including the ownership, subsidiaries, and any affiliations relevant to the City. First Security Bancorp Based in Searcy, Arkansas, the privately -held First Security Bancorp has the most complete and diverse product offering of any Arkansas -based financial services holding company. Supported by the strength of $1.3 billion in total capital and $7.96 billion in assets, First Security has the ability to meet any financing need - right here in Arkansas. With more than 1,000 employees covering locations throughout the state, we offer solutions for the financial needs of individuals, businesses, and the public sector; including a network of local community banks, respected investment banking and wealth management services, public finance, real estate development and revitalization, leasing, and mortgage services. Affiliate Organizations First Security Bank Crews & Associates * First Security Beardsley First Security Trust and Wealth Management Department With assets of more than $2.43 billion, the Trust Department of First Security Bank is headquartered in Searcy, Arkansas. The Trust Department provides the following services: * Wealth Management 0 Corporate Bond Issues * Employee Retirement Services 0 Agencies * Estate Management 0 Escrow Services * Living and Personal Trusts 0 Self -Directed IRAs Court -Appointed Guardianships r'roposal submitted to. City of F= iyetteville, Aikansas V Crf;V;s&Associates Crews & Associates As a full -service investment banking firm, Crews provides funding and advice to help transform our clients' ideas and goals into reality. Founded in 1979 in Little Rock, Crews was acquired by Arkansas -based First Security in 2000. Through a wealth of additional resources and support, this strategic relationship assisted Crews in being recognized as a top underwriter" of Arkansas bonds for the last five years and strengthened our reputation as a nationally respected firm in the fixed -income industry. The professionals at Crews are creative thinkers and pride themselves in developing the best solutions to rneet specific needs. We have a proven expertise and the commitment our clients seek in a long-terITI partner. Our team is known for hard work, integrity, stability and customer service — and we are all ready to serve you. sJ; ti, C� £, : t .. ,.� ' a ? E .; G t, fl i. l ;'ipany tr[E 1 if) assets i,,'%, n y. I+ cre'osfIjy39t,PSi3 Ci iCtlltC lIi-: lil,l(.Alt €i P > n n )% 3. ;�1e:it l , i1I:EiGC N ilig 14 Ili:.,(I?,5=, ttltall G k01, 1,� 11 j%r � ti;it��. �sv je;JJ .. 4 � [I 41 Il40+ k U re1St(;it't S�€t rP.Fen IItatNe5 AW,1�€rt tFit� stit(. MRn"I le,€Viigin `Source: Bloomberg P107o5al submitted to: City oi. Fayetteville, Arkansas Wirst$ccurity I Crews. Crews was founded 40 years ago. Fixed incorne securities and public finance are our primary focus and our expertise in this segment of the market sets us apart from others in our industry. Our firm has an incredible depth of stable distribution - a team of 130+ experienced investment sales specialists representing the largest centralized fixed income sales force in the State. These professionals are constantly accessing the most efficient cost of capital to help our clients fund their projects. All sales and trading operations are administered from our headquarters in Little Rock. Crews is an Arkansas -based, full -service investment banking firm. Our parent company, First Security, is a $7+ billion asset bank holding company. Our partnership with First Security enhances our company's management team, our access to capital and our access to the most advanced technology. Crews is headquartered in Little Rock with more than 160 employees working from this location. We also have investment sales representatives located in Springdale, Rogers, Fayetteville; Maumelle, Searcy, Clarksville, Conway, and Mountain Horne. Additionally, we have an established public finance office in Fayetteville. Bella vbta '[ 0 lientp..ill" Mountain Bolt Shoals 0 Min Hme n ec-'erton Rovers "Prairi lowed e Creek Gascviile Spnnydale c„..._.__......._ �Payet?evilia h1ounta�n View Farmington loneshorn., � Clm(on HebcrSprinys Clarksville Renybum 0 Coal Hill ludsonia { 0 Greenbrier Searey i � Rasseilville Convray mi:p e Mayflower 0 Vilonia 8eeb< �r � MawnalEe � Cabot tr 6 North t.fulenock f a Little Rock Bryant ,......J Benton j]( Hot Sprrnys i & Firs Security I Crews � PIFOPOsai SUbmiited to: City of Fayetteville, Arkansas 5, FrstSecurity I Craw, We understand that trust is a priority when choosing a financial partner. Crews has an impressive record of staff continuity, so you always know who you're working with. What's more, our professionals are eager to communicate with clients, answer questions and develop solutions. This level of personal support contributes to high customer satisfaction and the incredible longevity of our client relationships. Building on a solid foundation of long-term client relationships, the Crews tearn holds fast to a proven combination of financial experience, work ethic, integrity and extraordinary service. This strategy has served our firm — and our clients — very well, inspiring confidence and positioning Crews as an industry leader with a respected reputation for strength and reliability. Proposal submitted to: City of Fayetteville, Arkansas IPFT.stSecurity I B. Professional Staff: Provide information identifying the number and typo of investment professionals employed by your organization and indicate the average number and type of accounts handled by a portfolio manager. Please provide resume(s) of the principal(s) who will be responsible for the management of the City's investments. First Security Trust and Wealth Management Department 0 7Trust Officers 0 3VVea|th Strategists 0 3Trust Accountants 0 8 Trust Assistants Assets Under Management (AUM) make up 1,260 I -rust Department accounts totaling $2.43 billion. Of these accounts, the Trust Department is responsible for investment managernent agencies, trust accounts, estate accounts, IRA accounts, retirement plans, bond issues, and guardianships. On average, a trust officer and/or wealth strategist handles 180 accounts. Crews & Associates, Inc. * Sales/Trading w 130+ Registered Representatives Nationally 0 17Fixed Income Traders w Capital Markets 0 33Registered Representatives w 5 Non -Registered (Clerical/Ministerial) Employees w 12Offices Nationally * Compliance m 3 Registered Principals * Accounting/Operations/Human Resources * 3 Registered Representatives w 27 Non -Registered (Clerical/Ministerial) Employees � Information Technology 0 2Registered |TEmployees 0 7Non-Registered |TEmployees PmpoSa|oubmktedto� Financing Tearn Resumes Frank Faust, President Trust Division Head of Trust & Wealth Management First Security Bank - Trust Department 314 North Spring Street m Searcy, AR 72143 501.279.3408 • ffaust fsbank.com Frank Faust is President of Trust Division and Head of Trust & Wealth Management at First Security Bank. He has been with the Bank for over 25 years. Frank received his Bachelor's Degree in Finance/Banking from the University of Arkansas, Fayetteville. He received his Juris Doctor degree, with honors, from the University of Arkansas School of Law, Fayetteville. After practicing law in Little Rock, Arkansas for six years, Frank joined First Security Bank to head its Trust Department. He has extensive experience in managing fixed income securities. Lathan Nailling, CPA, CTFA Senior Vice President & Trust Officer First Security Bank - Trust & Wealth Management 2.500 W. Sunset Ave. ® Springdale, AR 72762 479.750.5665 a nnaillinqCcDfsbank.corn Nathan Nailing is a Senior Vice President & Trust Officer serving Northwest Arkansas in Trust and Wealth Management. He has been with First Security Bank for over 10 years, where he administers trusts, estates, qualified retirement plans and taxable investment accounts. He received both his Bachelor's Degree in Accounting and Masters of Accountancy from the University of Arkansas, Fayetteville. Prior to joining First Security Bank, Nathan spent approximately 5 years at one of the top ten accounting firms in the country. Nathan is a certified Public Accountant (CPA) and Certified Trust & Financial Advisor (CTFA). Adam Rutledge President and CEO First Security Bank (Northwest Arkansas) 2863 West Sunset • Springdale, AR 72762 Direct: 479.750,5602 • Adam. Rutled e fsbank.com Adam Rutledge, a third -generation banker, began his career as a teenager at First Security Bank in Searcy, Arkansas. Having served in multiple banking roles throughout his career riot only provided him with an extensive knowledge of consumer and commercial banking, but also a genuine passion for community banking. Now president of First Security's thriving Northwest Arkansas market, Adam supports both business and personal clients with an exceptional ability in determining financial needs and providing banking solutions instrumental to their growth. Adam received his bachelor's degree in Finance/Banking from the University of Arkansas, Fayetteville in 2004. Proposal submitted to: City of FayettE-villc„ Arkansas W I mtSecurity I CT,, vs 1 Dennis Clay CEO Crews & Associates, Inc. 521 President Clinton Ave., Suite 800 a Little Rock, AR 72201 501.978.8697 ® dclay@crewsfs.com Dennis Clay, chief executive officer, drives the strategic direction and operational performance of the Crews tears as it assists clients in Arkansas and across the country in navigating financial markets. Dennis and the team adhere to the guiding principles of stewardship and service while delivering reliable value to investors and bond issuers. This commitment to reliability positions the organization to deliver consistent performance long-term. Dennis is a veteran of the financial services industry with more than 30 years of experience. Before becoming CEO in 2020, he was head of sales and trading. His background includes serving as a municipal underwriter for 28 years with two large regional firrns and underwriting over $100 billion in municipal bonds. Over the years, his responsibilities have included developing a dedicated municipal sales force, building a super -regional competitive underwriting group that covered the entire country and constructing an internal system that pre -markets and distributes negotiated municipal bonds to numerous class investors to make sure the client always receives the lowest bond issuance cost. Dennis' expertise and vast knowledge allows us to serve the financial needs of clients in all levels of government, business and private industry. Andy Edwards Senior Vice President/Head Government Trader Crews & Associates, Inc. 521 President Clinton Ave., Suite 800 a Little Rock, AR 72201 501.978.7963 ® aedwardsperewsfs.com Andy joined Crews in the summer of 1983. He has a B.S. in Business from Ouachita Baptist University. Andy's institutional client base is primarily made up of insurance companies, banks and trust departments. With experience in all aspects of the fixed income market; Andy is able to focus on each client's individual needs. Customer service and attention to detail have contributed to his success over the years. In fact, most of his long-term clients have become personal friends. Proposal submitted to City of Fayetteville, Arkansas ='m-,` Security i s The Trust Department has over 87 governmental and other institutional entities for which we manage Fixed Income Portfolios. Listed below are references that may be contacted. Stuart Hill CFO UnN- Unity Health HEALTH 3214 E. Race Ave. Searcy, AR 72143 P:5O138O.1OO4 F�S81.380,1O11 E: Manage Equity & Fixed Income Portfolio Wyman Morgan Director ofFinance &Admninistraton City of Springdale 2O1Spring St. Springdale, AR 72784 P�478750.8152 F:470758.8559 E: Manage Construction Fund DanEoke|s CFO \&�shi Washington Regional Medical Center 3215North Hills Blvd. Fayetteville, AR727U3 P:47&.483.0O20 F:470,463.5077 JefK8oscogni CFO Central Arkansas Water C�~r°�"� r')I ��"+rn"*"/ A.,� Little Rock, AIR 722O3 P:5U1.377.1338 F:501,3771218 E: Proposal submitted \a City o[Fayetteville, Arkansas Or I imtSecurity I ClnEAvG -- r '-1107 Diane Newton VPfor Finance &Administration University of Central Arkansas 201 DonaQheyAvc.VVingoHall 312 . Conway, AR72835 ^»o^mS^» P:5O1.450�3184 F:5O1.45O.5l68 E: Bond Underwriting UA uNIVmS] T,OFmPMMsSYSTEM Gina Terry CFO University ofArkansas System 1 University ofArkansas Fayetteville, AR727O1 P501.h80.2023 E: Bond Underwriting Scott KAosaanaUi Treasury Manager City ofLittle Rock 500West K8arkhem LITTLE ROCK Little Rock, AR722O1 p:501.371,4532 Karen Scott CFO Benton Utilities Sent n 1827Dale Ave. Benton, AR72015 P:5U177G.8O74 F:5O1776.5854 Pmponn|aubmi[tedon� D. Client {base: Describe your institutional investment management asset portfolio and fixed income portfolio totals separately for Governmental and other institutional entities and identify such assets as operating or pension funds. ........... Client Base Governmental and Other Institutional Entities Percent Percent Number of Market Value Operating Pension Accounts Fund Fund Investment $338,000,000 28 47% 53% Management Asset Portfolios Fred Income Portfolios $417,000,000 65 100% 0% F. Procedures: Describe the process you would recornmend for establishing the investment objectives and constraints for this account. Describe reporting procedures. Include a proposed action plan to phase in investing of available cash. The City has a current portfolio of approximately $135,000,000 held with an asset manager. The Financing Tearn began the portfolio management process by establishing client objectives and constraints in compliance with the City's existing Policies and Procedures (AC-02). We feel the objectives established in AC-2.2 of 1) "safety of principal" (Principal Preservation), 2) "maintaining adequate cash flow" (Current Income), and 3) "maximizing investment yield" (Capital Appreciation) are qualified in context to City's Policies and Procedures. Investment constraints such as liquidity needs, time horizon, authorized investments (AC-2.4), prohibited investments (AC-2.5), and parameters (AC-2.6) are clearly presented and are in agreement with established objectives. Investment Objectives and Constraints were then used to create the Client Risk Profile (CRP). The CRP was the foundation for the Strategic Allocation. The Strategic Allocation was the "most efficient" use of asset classes within the CRP. Tactical adjustments were then made to the Strategic Allocation to take advantage of the current economic and rate environment. Proposal submitted to: City of Fayettevdhe, Arkansas i" rst.Security I �,,,i-e,, s F. Resources: Describe your organization's research capabilities and credit review process. Describe efforts your firm makes to keep portfolio managers informed of developments relevant to government investment manager. The Trust Department has $2.43 billion Assets Under Management (AUM). Our size and fiduciary obligation as a trust department creates value for our clients in the form of research, technology, staffing, quantitative, and qualitative analysis. Resources: 21 Employees with FSB Trust & Wealth Management i 180 Employees with Crews & Associates 85 In -House Bloomberg Users 0 11 In -House Fixed -Income Traders a Subscribers of Thomson Reuters, S&P, Moody's, and Fitch, and several private research firms G. Performance: Provide relevant performance statistics. Specifically, provide performance statistics for similar portfolios, as described by the City's Investment Policy, measured against the Merrill Lynch 1 to 5 years US Treasury Index and the Merrill Lynch AAA Agency Master Index for the years 2018, 2019, and 2020. The Trust Department derives 100% of its revenue from the managernent fee charged to the client. Therefore, client satisfaction and investment performance are paramount to our business model. Benchmarking our portfolios against an established index is one of our many metrics for evaluating our progress. The City of Fayetteville RFO 21-05 requests that we use the current Bank of America Merrill Lynch 1-5 Year Treasury Index and the Bank of America Merrill Lynch 1-5 Year AAA Agency Master Index to analyze relative performance. The Bank of America Merrill Lynch 1-5 Year US Treasury Index is a sub -index of the Bank of America Merrill Lynch US Treasury Master Index, which tracks the performance of the direct Sovereign debt of the US Government. The index includes securities with a maturity from 1 up to (buff not including) 5 years. In addition, we have included the Bank of America Merrill Lynch 1-5 Year Treasury and Agency Index, which we feel is also an appropriate index to compare performance. The table on the following page presents performance comparison for years 2018, 2019 and 2020. Proposal subMitted to: (,ity of Fayetteville, Arkansas Wrt tSecudty i ("J"CV Similar Portfolios Net Fees 1.43% 2.50% 1.50% BofAML 1-5 Year AAA Agency Master index 3.35% 3.78% 1.72% BofAML 1-5 Year Treasury Index 4.25% 4.20% 1.53% BofAML 1-5 Year Treasury/Agency Index 4.22% 4.18% 1.54% *Performance reporting is net of all fees, expenses and total returns. *By design, the City's portfolio has an average maturity of 2.39 years and that reflects in the returns when compared to the above Bank of America benchmarks. Ideally, the City's portfolio should be corpared to a 1 to 3 treasury/agency benchmark. Highlights for each year: 2018: The 5-year Treasury started the year at 2.25% and ended the year at 2.51 % 2019: The 5-year Treasury started the year roughly at 2.49% due to higher rate expectations and finished at 1.69%. 2020: [COVID-19 began in 2020] The 5-year Treasury started at 1.67% and ended the year at .36%. 2021: The 5-year Treasury started at .36% and as of September 14, 2021, it was .79%. The 5-year Treasury rate increased in 2018, began to fall in 2019, and hit an all-time low of. 19% in 2020, Since then; the Treasury rate has been increasing. Portfolio Characteristics Amount of Bonds 121,964,000 Average (Maturity Years 2.39 Current Yield 0.31 AAA- 100% MM Balance 13,664,000 MM Rate .03% us Treasury vs. 1-Year 0.06%, 0.27% 0.21% 2-Year 0.20% 0.27% 0.07% 3-Year 0.40% 0.270%, - 0.13% 5-Year 0.77% 0.27% - 0.50% Tactical Portfolio Strategy The Financing Team has adopted a short/intermediate term tactical strategy to take advantage of a volatile interest rate environment. We feel a, portfolio with an average maturity of 2.39 years has the liquidity necessary to capitalize on opportunities and provide price stability in the next 12-24 months. Conversely, we feel the duration(s) necessary to achieve higher yields will be counterproductive to portfolio returns during the next 5-year period. As a consequence of the COVID-19 pandemic and the government's policies in dealing with the pandemic, the bond market has weakened. The Financing Team believes that once COVID- 19 is better under control or behind us and the federal government reduces quantitative easing, that market rates will adjust up and begin to rise, thus increasing the yield of the portfolio. Proposal submitted to: City of Fayetteville, yetteville, Arkansas ODIFTstSecurity I = Cci Operations, Pricing, Reporting The Trust Department will be responsible for providing monthly statements of all activity in the fund. The bonds will be safe kept at Northern Trust Company or a nationally recognized custodian and pricing will be provided by the Trust Department. Pricing will be taken from month -end pricing provided by S&P Valuation and Risk Strategies, IDC, or Bloomberg. Other The Financing Team shall, upon request, attend meetings with representatives of the City to discuss the Account, their investment outlook, and their strategy both past and looking forward. The Financing Tearn agrees that securities are to be purchased and sold through such brokers as, in the Financing Team's best judgment; shall offer the best combination of price and execution. The Financing Team, in seeking best execution, may consider the quality and reliability of the brokerage services as well as the research and investment information and other services provided by broker dealers. However, it should be the primary factor in determining with whom to execute a specific trade. The Financing Team anticipates a significant amount of trading activity with Crews. Any activity with Crews will be executed at prices that are fair, reasonable, and representative of market. Crews will docurnent prices to buy or sell securities from at least two broker dealers on secondary market purchases or sells of securities. The trades will be executed at the best price and Crews will charge no fee or commission on the execution of the trade. On new issues where bonds must be purchased at the "public offering price", all trades will be executed at the initial public offering price that is offered to all purchasers. A quarterly record of all purchases and sales of securities will be maintained and provided upon request. Proposal submitted to: City of Fayetteville. Arkansas & HirstSecurity I CrC WS City of Fayetteville RFQ 21-05, Investment Management Services SECTION B: Vendor References The following information is required from all firms so all statements of qualification may be reviewed and properly evaluated: COMPANY NAME: First Security Bank NUMBER OF YEARS IN BUSINESS: 84 HOW LONG IN PRESENT LOCATION: 45 TOTAL NUMBER OF CURRENT EMPLOYEES: 783 FULL TIME 71 PART TIME NUMBER OF EMPLOYEES PLANNED FOR THIS CONTRACT: 5 FULLTIME 0 PARTTIME PLEASE LIST FOUR (4) REFERENCES THAT YOU HAVE PREVIOUSLY PERFORMED CONTRACT SERVICES FOR WITHIN THE PAST FIVE (5) YEARS (All fields must be completed): 1. Unity Health Z. Washington Regional Medical Center COMPANY NAME COMPANY NAME Searcy, AR 72143 Fayetteville, AR 72703 CITY, STATE, ZIP CITY, STATE, ZIP Stuart Hill Dan Eckels CONTACT PERSON CONTACT PERSON 501.380.1004 479.463.6026 TELEPHONE TELEPHONE 501.380.1011 479.463.5977 FAX NUMBER FAX NUMBER stuart.hill@unity-health.org deckels@wregional.org E-MAIL ADDRESS E-MAIL ADDRESS 3. City of Springdale 4 Central Arkansas Water COMPANY NAME COMPANY NAME Springdale, AR 72764 Little Rock, AR 72203 CITY, STATE, ZIP CITY, STATE, ZIP Wyman Morgan Jeff Mascagni CONTACT PERSON CONTACT PERSON 479.750.8152 501.377.1339 TELEPHONE TELEPHONE 479.750.8559 501.377.1218 FAX NUMBER FAX NUMBER wmorgan@springdalear.gov jeff.mascagni@carkw.com E-MAIL ADDRESS E-MAIL ADDRESS City of Fayetteville, AR RFQ 21-05, Investment Management Services Page 11 of 16 City of Fayetteville RFQ 21-05, Investment Management Services SECTION B: Vendor References The following information is required from all firms so all statements of qualification may be reviewed and properly evaluated: COMPANY NAME: Crews & Associates, inc. NUMBER OF YEARS IN BUSINESS: 42 HOW LONG IN PRESENT LOCATION: 16 TOTAL NUMBER OF CURRENT EMPLOYEES: 170 FULL TIME 10 PART TIME NUMBER OF EMPLOYEES PLANNED FOR THIS CONTRACT: 5 FULLTIME PARTTIME PLEASE LIST FOUR (4) REFERENCES THAT YOU HAVE PREVIOUSLY PERFORMED CONTRACT SERVICES FOR WITHIN THE PAST FIVE (5) YEARS (All fields must be completed): 1. University of Central Arkansas 2. University of Arkansas System COMPANY NAME COMPANY NAME Conway, AR 72035 Fayetteville, AR 72701 CITY, STATE, ZIP CITY, STATE, ZIP Diane Newton Gina Terry CONTACT PERSON CONTACT PERSON 501.450.3184 501.686.2923 TELEPHONE TELEPHONE 501.450.5168 FAX NUMBER FAX NUMBER dnewton@uca.edu rterry@uark.edu E-MAIL ADDRESS E-MAIL ADDRESS 3 City of Little Rock 4 Benton Utilities COMPANY NAME COMPANY NAME Little Rock, AR 72201 Benton, AR 72015 CITY, STATE, ZIP CITY, STATE, ZIP Scott Massanelli Karen Scott CONTACT PERSON CONTACT PERSON 501.371.4532 501.776.8074 TELEPHONE TELEPHONE S01.776.5954 FAX NUMBER FAX NUMBER smassanelli@little rock.gov kscott@bentonutilities.com E-MAIL ADDRESS E-MAIL ADDRESS City of Fayetteville, AR RFQ 21-05, Investment Management Services Page 11 of 16 City of Fayetteville RFQ 21-05, Investment Management Services SECTION C: Signature Submittal 1. Disclosure Information Proposer must disclose any possible conflict of interest with the City of Fayetteville, including, but not limited to, any relationship with any City of Fayetteville employee. Proposer response must disclose if a known relationship exists between any principal or employee of your firm and any City of Fayetteville employee or elected City of Fayetteville official. If, to your knowledge, no relationship exists, this should also be stated in your response. Failure to disclose such a relationship may result in cancellation of a purchase and/or contract as a result of your response. This form must be completed and returned in order for your bid/proposal to be eligible for consideration. PLEASE CHECK ONE OFTHE FOLLOWING TWO OPTIONS, AS IT APPROPRIATELY APPLIES TO YOUR FIRM: 1) NO KNOWN RELATIONSHIP EXISTS 2) RELATIONSHIP EXISTS (Please explain): I certify that; as an officer of this organization, or per the attached letter of authorization, am duly authorized to certify the information provided herein are accurate and true; and my organization shall comply with all State and Federal Equal Opportunity and Non -Discrimination requirements and conditions of employment. 2. Additional Information At the discretion of the City, one or more firms may be asked for more detailed information before final ranking of the firms, which may also include oral interviews. NOTE: Each Proposer shall submit to the City a primary contact name, e- mail address, and phone number (preferably a cell phone number) where the City selection committee can call for clarification or interview via telephone. Name of Firm: First Security Bank Name of Primary Contact: Title of Primary Contact: Phone#1 (cell preferred): Frank Faust President Trust Division 501.279.3408 E-Mail Address: ffaust@fsbank.com TAX I D#: 71-0159420 City of Fayetteville, AR RFQ 21-05, Investment Management Services Page 12 of 16 DUNS #: Phone#2: 501.279.3420 007963143 Cage Code: 3EWP1 3. Please acknowledge receipt of addenda for this invitation to bid, request for proposal, or request for qualification by signing and dating below. All addendums are hereby made a part of the bid or RFQ documents to the same extent as though it were originally included therein. Proposers/Bidders should indicate their receipt of same in the appropriate blank listed herein. Failure to do so may subject vendor to disqualification. ADDENDUM NO. SIGNATURE AND PRINTED NAME DATE ACKNOWLEDGED Frank Faust 9/28/2021 4. Pursuant Arkansas Code Annotated §25-1-503, the Contractor agrees and certifies that they do not currently boycott Israel and will not boycott Israel during anytime in which they are entering into, or while in contract, with any public entity as defined in §25-1-503. If at any time during contract the contractor decides to boycott Israel, the contractor must notify the contracted public entity in writing. 5. Contractor agrees that no solicitation of City employees will take place. As an interested party on this project, you are required to provide debarment/suspension certification indicating in compliance with the below Federal Executive Order. Certification can be done by completing and signing this form. Federal Executive Order (E.O.) 12549 "Debarment and Suspension" requires that all contractors receiving individual awards, using federal funds, and all sub -recipients certify that the organization and its principals are not debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded by any Federal department or agency from doing business with the Federal Government. 7. Signature certifies that neither you nor your principal is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any federal department or agency. Questions regarding this form should be directed to the City of Fayetteville Purchasing Division. NAME: Frank Faust COMPANY: First Security Bank TAX ID: 71-0159420 PHYSICAL ADDRESS: 314 North Street; Searcy, AR 72413 MAILING ADDRESS: PHONE: 501.279.3408 E-MAIL: ffaust@fsbank.com City of Fayetteville, AR RFQ 21-05, Investment Management Services Page 13 of 16 FAX: 501.278.2175 Signed by : Frank Faust c SIGNATURE: PRINTED NAME: Frank Faust TITLE: President Trust Division Date: 9/28/2021 City of Fayetteville, AR RFQ 21-05, Investment Management Services Page 14 of 16 � OF fU N i� sue» So C} 95 Kam, G G C q} r« [Q a .r F;S CA � TM C5 41 Q � t7y t<3 x 0 0- Q G IL CD tt7 R! 7kQO t n7 `2h- ul U1 VHF Cl 4 0 04� � V9"''a f`M a. eT, � .J Via. CiJ titiJ V/ C f� s� Cb u c `wto a, a3 w! a! r. N a± a u; e'i us v 0 0 ea. C�5 a, .C, :c f7 pj' 0 _ 0 r Ul F.: N su CC ' �. : m cr fy5 UJ 03 fll LL, . ff5 ff1