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HomeMy WebLinkAbout2018 02-15 FCA AGENDA Brooklyn Center Financial Commission Thursday, February 15, 2018 – 6:30 PM All American Conference Room (Main Level of City Hall) I. Call to Order II. Approval of Agenda III. Introductions/Financial Commission Background IV. Approval of Minutes for March 30, 2017 V. Election of Commission Chairperson VI. Election of Commission Vice Chairperson VII. Request for Proposal: Custody/Trust Banking Services VIII. Future Dates a. All Commissions Meeting – Wednesday, April 5, 2018 @ 6:00pm b. Work Session w/City Council: Auditor – Monday, June 4, 2018 @ 6:30pm IX. Adjournment City of Brooklyn Center FINANCIAL COMMISSION   Financial Commission meets on the 3rd Thursday of each month, 6:30 p.m., at City Hall, as well as in joint session with the City Council during the budget planning process. The Financial Commission advises the City Council on financial matters in Brooklyn Center. Commissioners serve a three-year term. Chairperson and six members.   [Minn. Stat. 13.601, Subd. 3(b) states that once an individual is appointed to a public body the following data are public: (1) the residential address; (2) and either a telephone number or electronic mail address where the appointee can be reached, or both at the request of the appointee.]         Anna Burke, Vice Chair 7012 Morgan Ave N (30) 612-423-9610 aburke.mpp@gmail.com 3/27/16-12/31/19 Jeffrey Dobbs 5311 Camden Ave N (30) 612-351-9650 jdobbs06@gmail.com 5/9/16-12/31/18   David Dwapu 1701 69th Ave N #303 (30) 612-229-9316 ddwapu@yahoo.com 1/8/18-12/31/20 Tia Hedenland 2613 65th Ave N (30) 612-636-8672 marie.t.m@gmail.com 4/24/17-12/31/20 Teneshia Kragness 5906 Vincent Ave N (30) 763-412-7248 mrskragness@yahoo.com 8/23/10-12/31/20 Abate Terefe 5101 Howe Lane (29) 763-531-8001 badhasa@gmail.com 4/10/17-12/31/19 Dean Van Der Werf 6736 Regent Ave N (29) 763-561-0146 deanvanderwerf@gmail.com 7/11/11-12/31/18     2018 Council Liaison –Kris Lawrence-Anderson councilmemberlawrence-anderson@ci.brooklyn-center.mn.us   Staff Liaison Nathan Reinhardt nreinhardt@ci.brooklyn-center.mn.us     Updated 1/18/18             Financial Commission Agenda Item No. IV  1 Financial Commission Regular Meeting Minutes March 30, 2017 1. Call to Order The meeting was called to order by Chairperson Mr. Newman at 6:37 PM. Members Present: Commissioners Dobbs, Kragness, Burke, Newman Members Absent: Commissioner Van Der Werf (excused) Council Liaison Butler was present. Finance Director Reinhardt was present. 2. Adoption of the Agenda Mr. Newman moved adoption of the March 30th, 2017 agenda. With no objection, the agenda was adopted. 3. Minutes Ms. Burke moved adoption of the minutes from the June 16th, 2016 meeting. The motion was seconded by Ms. Kragness. With all voting in favor, the motion was approved. 4. Election of Commission Chairperson Mr. Kragness made a motion to nominate Mr. Newman as Chairperson for 2017. With all voting in favor, Mr. Newman was affirmed Chairperson of the Financial Commission for 2017. 5. Election of Commission Vice Chairperson Mr. Reinhardt noted to the Commission that Mr. Van Der Werf has expressed willingness to serve the role as Vice Chairperson. Mr. Newman made a motion to nominate Ms. Burke as Vice Chairperson for 2017. With all voting in favor, Ms. Burke was affirmed Vice Chairperson of the Financial Commission for 2017. 6. Request for Proposal: Insurance Agent of Record Mr. Reinhardt reviewed the City Council policy that every six years the City will request proposals for financial professional services. The insurance agent of record helps advise and facilitate the Cities insurance held with the League of Minnesota Cities Insurance trust. The term of the RFP will be for three years with three additional one-year renewal options. The Commission discussed the request for proposal which included discussion on the services provided, the process, the cost of services, changes from the previous proposal used, and what could be anticipated 2 for proposals being received. Ms. Burke noted a typo in Section II the date May 31, 2016 should be changed to May 31, 2017. Mr. Newman made a motion that the Financial Commission recommend the RFP for Insurance Agent of Record, modified to include the date change to Section II, be forwarded to City Council. That motion was seconded by Ms. Burke and with all voting in favor, the motion was approved. 7. Request for Proposal: Financial Advisory Services Mr. Reinhardt reviewed the request for proposal for Financial Advisory Services. The City expects to retain the services for a period of four to six years. The selection process will include a member of City Council and the Financial Commission. The Commission discussed the request for proposal which included discussion on the services provided, potential competing firms and ensuring the process is fair to all proposers, changes from the previous RFP, the cost and the influence on rates that could be provided by the Financial Advisor and their role in relation to City staff. Mr. Newman made a motion that the Financial Commission recommend the RFP for Financial Advisory Services be forwarded to City Council. That motion was seconded by Ms. Burke and with all voting in favor, the motion was approved. 6. Future Meeting Dates Commissioners were made aware of the all commission meeting on Wednesday, April 5, 2017 at Constitution Hall and the joint work session with the City Council on June 5th, 2017 to review the auditor’s report. A tentative budget schedule with work session dates was also provided. Adjournment With no other business to transact, Mr. Newman adjourned the meeting at 7:20 PM.             Financial Commission Agenda Item’s No. V & VI              Financial Commission Agenda Item No. VII  City of Brooklyn Center Minnesota Request for Proposal For Custody/Trust Banking Services April 1, 2018 TABLE OF CONTENTS I. STATEMENT OF PURPOSE II. INTRODUCTION III. SCOPE OF SERVICES A. General B. Wire Transfer C. Reporting IV. PROPOSAL FORM AND CONTENT A. Pricing for Services B. Terms and Conditions V. SELECTION PROCESS A. Interviews B. Schedule C. Evaluation of Proposals VI. RFP Questionnaire A. The Organization B. Service Personnel C. References D. Banking Locations E. Custody Services F. Reporting G. Trade Settlement I. Statement of Purpose The City of Brooklyn Center, Minnesota (City) is currently accepting proposals from qualified institutions to provide custody/trust services to the City. The City will select a custody bank after evaluating the adequacy of capital of the financial institutions as well as pricing for individual services. The City expects to select a custody bank who will serve the City for a period of three to six years, commencing on August 1, 2018. II. Introduction The City currently utilizes a custody account to handle approximately $45 million as of December 31, 2017. The City internally manages the assets of these accounts. The accounts assets are invested primarily in certificates of deposit, U.S. government agency notes/bonds and municipal bonds. The City may occasionally need to establish other custody accounts similar to the accounts previously described. III. Scope of Services A. General 1. The bank must segregate all securities and cash of the City from assets of others and these segregated assets shall be and remain the sole property of the City. The securities held by the custody bank shall, unless payable to the bearer, be registered in the name of the City, or in the bank’s nominee name. Securities delivered to the bank, except bearer securities and certificates of deposit, shall be in due form for transfer or already registered. 2. Create, maintain, and retain all records relating to securities held in custody in City accounts to meet the requirements and obligations under generally accepted accounting principles. 3. Collect all coupon payments and periodic income on securities held and processed per instructions received by authorized City personnel. 4. Timely and accurately settle all trades from City investment activity including but not limited to receipt and delivery of securities. 5. Report account activity and related information via monthly reports showing month end balances in all accounts and ledgers of all transactions including interest, maturities, calls and purchases. B. Wire Transfer 1. The bank will be notified by the City, in writing, of any Federal wire transfers that the City expects to receive the day prior to the receipt of such wire but no later than noon of the day the wire is to be received. The City intends to consider these incoming Fed wire transfers as “available for investment” by the City. 2. The bank will be notified via online transmission, email, telephone, or fax by a designated person from the City prior to noon of all incoming and outgoing wire transfers, inter-bank transfers and safekeeping transactions. C. Reporting 1. Provide monthly accounting statements for all accounts. The statement cutoff will be the last day of each month. Statements are to be provided on a monthly basis. Statements must be received by the City no later than the 10th business day of each month. In addition, statements should be available online by the 5th business day of each month. 2. Provide confirmations for all securities transactions. Confirmations should be received by the City within five business days after trade settlement. 3. Provide customized reports or other data that the City might reasonably request to assist in preparation of audit schedules and/or other presentation. 4. Detailed monthly accounting statements should include but not limited to a listing of securities indicating number of units held, description, cost/market value for securities (individually and aggregately), unrealized gains/losses, accrued income, income received, and transactions. IV. Proposal Form and Content A. Pricing for Services 1. The proposal will be on a variable cost basis. Under the variable cost method, actual monthly services as provided will be counted and the volume of the transaction will be used to compute the appropriate cost of services. 2. The per item charges shall remain fixed over the life of the contract unless an adjustment(s) has been allowed. 3. All fees as applicable will be included as an exhibit to the contract for custody/trust services. B. Terms and Conditions 1. The City reserves the right to reject any or all of the proposals or to negotiate a contract in the best interests of the City at the absolute and sole discretion of the Brooklyn Center City Council. 2. The firm will submit three (3) hard copies and one (1) electronic (PDF) version of its proposal to the Finance Department of the City no later than 3:00 PM on Monday, April 30, 2018 Submittals may be addressed to: Nathan Reinhardt, Finance Director City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, Minnesota 55430-2199 Nathan Reinhardt, Finance Director nreinhardt@ci.brooklyn-center.mn.us All proposals must be signed by an individual duly authorized by the firm. All proposals will become property of the City. No public bid opening will be held. 3. The Finance Director, Nathan Reinhardt, will be the City’s primary contact for this process. He will coordinate appointments with staff and/or the Review Committee for the interview and selection process. Questions and requests for information will be directed to him. Any other contact with City staff, the Mayor, Council Members or City Manager may be grounds for immediate rejection of the firm’s proposal, at the discretion of the City. 4. The City reserves the right to request clarification of any information submitted and to request additional information for any or all proposers. 5. Any agreement or contract resulting from this process and the acceptance of a firm’s proposal will be on forms supplied by or approved by the City and will contain, at a minimum, the applicable provisions of this Request for Proposals. The City reserves the right to reject any agreement or contract that does not conform to the Request for Proposals, any additional negotiated terms or conditions, and City or State requirements for agreements and contracts. 6. The firm will not subcontract or assign any interest in any contract or agreement without the prior written consent of the City executed by an authorized individual. 7. All costs associated with the preparation of the firm’s proposal will be the responsibility of the firm submitting the proposal. 8. This document is a Request for Proposals, not for Bids. The City, therefore, reserves the right to negotiate with any qualifying firm or party on any matter in the proposal. V. Selection Process A. Interviews The City may select two or more firms to interview to allow the firm to demonstrate why it should provide the custody services to the City. B. Schedule The City has developed the following schedule of events for this process: Request for Proposals Issue April 1, 2018 Proposals Due (3:00 p.m. at City Hall) April 30, 2018 Selection of Finalists May 7, 2018 Interviews Completed by May 18, 2018 Recommendation to City Council May 28, 2018 C. Evaluation of Proposals A Review Committee will consider the proposals and make a recommendation to the City Council. The recommendation will be based on the following criteria: 1. Comprehensive ability to provide the services described in the RFP 2. Experience of providing the services described in the RFP 3. Pricing for services 4. Online account access system for clients 5. Financial strength of the organization 6. Disaster recovery planning 7. Information reporting VI. RFP Questionnaire Proposals should include responses to each of the following items. Please construct the proposal with responses in the same order as listed below to facilitate review and comparison by the Review Committee. A. The Organization 1. Please describe the organization, its major lines of business, and any major organizational changes pending. 2. Include the bank’s most recent audited financial statements. 3. Describe the types of liability insurance and bonding the organization carries. 4. Describe the bank’s overall disaster recovery plan as applicable to the services described in the RFP. B. Service Personnel 1. Please provide basic biographical information on key bank officers that will be directly involved in the management of the City’s account; primary contact persons name, title, address, phone and fax number, email address, and experience these officers have in working with municipal customers. C. References 1. Please provide three references for which the bank provides services similar to the services described in the RFP. Preferably references will be municipal clients of the bank or institutional clients similar to the City in size of assets under custody. Include name, address, and phone number for a contact person and length of relationship for each reference. D. Banking Locations 1. Provide the address of the office location that will service the City’s account. E. Custody Services 1. Indicate the experience the bank has in providing services similar to those in the RFP. 2. Provide a representative client list of governmental and/or corporate customers for whom the bank currently or has provided services to those in the RFP. 3. Describe the system used to provide custody services along with backup and recovery capabilities. 4. Describe the availability of web-based services the Bank offers as applicable to the services in the RFP. 5. Describe the bank’s ability to provide automated custody services and to what extent, if any, of the services listed on the official proposal forms are automated. 6. Indicate what fees the bank would apply to the custody accounts as described in the RFP (i.e., transaction fee for purchase/sale of securities, minimum account fee, account maintenance fee, etc.) 7. Describe the options available (such as overnight sweep investments) available for cash balances in custody accounts? 8. List the total number and market value of custodial accounts held as of December 31, 2015, December 31, 2016, and December 31, 2017. F. Reporting 1. Describe the bank’s ability to produce monthly custody reports as applicable to the RFP. A sample of such report(s) should be included for this purpose. 2. For what time intervals can the bank produce custody reports (monthly, quarterly, annually, other)? 3. Describe the bank’s ability to offer online reporting and the informational content and time of availability of these reports 4. Describe the bank’s online client access system for custody customers and the capability of this online client access system. 5. What pricing source(s) does the bank utilize for securities as described in the RFP? 6. When are reports available to customers after month end (indicate availability of online reports and hard copy reports)? G. Trade Settlement 1. What methods of notification of trading activity does the bank have available to customers (fax, voice, e-mail, online, etc)? 2. What are the cutoff times the bank has established for customers to notify the bank of daily trades? Questions or requests for additional information may be directed to Nathan Reinhardt, Finance Director at nreinhardt@ci.brooklyn-center.mn.us or at telephone number (763) 569-3345. Thank you for your consideration of this Request for Proposals.