Summary of Specifications:
Through this Request for Proposals, the City of Miami Beach, Florida (the “City”) seeks proposals from parties interested in providing the City with investment advisory services to manage and direct the City’s investments as further detailed herein. The successful firm would manage and direct the investment of excess funds in accordance with the City’s investment objectives as set forth in City of Miami Beach’s Investment Policy. The key objectives of the City’s investment policy are safety of capital, sufficient liquidity to meet requirements and attaining market–average rates of return. Excess funds are defined as funds not required to meeting short term expenditures of the City. Currently, funds available for investment consist of approximately $522 million which include: $346 million from operating funds, $103 million from various bond proceeds, and $73 million from the Miami Beach Redevelopment Agency (RDA). The City expects its investment advisor to be highly experienced, a leader and innovator in the management of investments, and able to provide comprehensive investment advisory services. The firm selected as the investment advisor and its affiliates will be restricted from selling to the City, or buying from the City, any securities to or from that firm’s own inventory or account. The investment advisor will also be restricted from placing into the City’s portfolio any securities for which it, or an affiliate, is the issuer. Investment advisors will not provide custodial services or security safekeeping. All City investments, except for swap agreements must be held in an independent custodial account. Fees for such services are competitive and would be paid from additional investment earnings. Maturity and Liquidity Requirements The City selects investments whose terms compliment the need to make the majority expenditures set forth below. 1. Biweekly Payrolls 2. Periodic Debt Service Payments 3. Capital Project Needs For each expenditure event, investments are selected whose maturities occur at a date close to the date that funds will be needed. Investments also are selected based on the highest yield for the particular type of investment. In the case of capital projects, in which the exact date that expenditures will need to be made is unknown, the City selects several investments with varying maturities so that monies are available each month to cover all capital expenditures. Any unused capital investment funds are then placed in investments of one year or more to maximize return potential. The contract term will be for five (5) years, with five (5) one (1) year renewal options at the sole option and discretion of the City.
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