31-Group 4-Third-Party Safekeeping Custodian, Scope of Services, GEN2131264P1.pdf

SCOPE OF SERVICES

Group 4: Third-Party Custodian/Safekeeping Services

1. SUMMARY

Broward County (“County”) is seeking proposals from qualified vendors, also referred to as “Bank”, to provide Custodian/Safekeeping Services for the County’s portfolio in accordance with the County’s Investment Policy. Services shall include the receipt and holding of securities, collection and distribution of investment income and sales/maturity proceeds of investments. Purchases and sales settle on a Delivery-versus-Payment (DVP) and Receive-versus-Payment (RVP) basis.

2. BROWARD COUNTY BACKGROUND

Broward County, Florida is a political subdivision of the State of Florida governed by an elected Board of County Commissioners, under the Florida State Statutes and a local County Charter. It is the 17th most populous county in the United States and the second most populous in Florida, with the second-largest gross domestic product (GDP) in the state. The County provides a broad range of services to its communities and operates Fort Lauderdale-Hollywood International Airport, Port Everglades Department, Water and Wastewater Services, along with 60 different offices, departments, and divisions.

The County was incorporated in 1915 and is located along the southeastern coast of Florida. With a developable area of 428 square miles and a population of approximately 1.9 million people, the County is one of the largest counties in the country. The County is governed by its amended Charter, originally adopted in 1974, and functions as a home rule government under the Florida Constitution and the general laws of the State. The Board of County Commissioners is the legislative and policy-making body of the County. The nine member Board of County Commissioners (the “BOCC”) is the legislative body of the County government. The BOCC appoints the County Administrator to act as the County's chief executive officer.

The Administrator implements policies of the BOCC, provides organizational leadership, and directs business and administrative procedures. In addition, there are five elected Constitutional Officers: the Clerk of the Circuit and County Courts, the Property Appraiser, the Sheriff, the Supervisor of Elections, and the Tax Collector. Circuit Court and County Court judges are also elected.

The County and its independently elected Constitutional Officers provide a broad range of services. These services include law enforcement, fire rescue protection, maintenance of streets, highways, bridges, traffic signals, transportation, environmental protection, urban planning, economic development, human services, parks, libraries, a convention center, property assessments and tax collections.

The BOCC also appoints the County Attorney, advisory board members and authorities to administer certain public services. The County Auditor is nominated by an independent board and is subject to ratification by a majority of the BOCC.

The County’s fiscal year runs from October 1st through September 30th of the following year.

https://www.broward.org/Finance/Pages/InvestmentPolicy.aspx https://www.broward.org/Finance/Pages/InvestmentPolicy.aspx

3. BROWARD COUNTY SECURITIES

As of September 30, 2025, the County maintains three (3) safekeeping accounts, with a combined total market value of approximately $7 billion USD. The County’s purchasing activity is approximately 20 trades per month. Each account settles in a different Demand Deposit Account (DDA). For informational purposes, the table below provides the actual number of securities held in each account.

The security types eligible for the County’s portfolio include, but are not limited to: U.S. Treasuries, Government Sponsored Enterprises (e.g. FNMA, FHLMC, FHLB, FFCB, IBRD, and Farmer Mac), Israel Bonds, and Commercial Paper. The complete list of acceptable securities can be found in the Broward County Investment Policy, Section 22.84-Eligible Securities.

4. GENERAL REQUIREMENTS

The Bank must meet the following requirements:

4.1. Have a minimum of five (5) years of experience providing third-party custodian and safekeeping services for operations of similar size to the County.

4.2. Be a Qualified Public Depository in the State of Florida in accordance with Florida Statute Chapter 280.

4.3. Be a member in good standing of the Federal Reserve System.

4.4. Be a member in good standing of the Depository Trust and Clearing Corporation.

4.5. Have experience integrating electronic files with PeopleSoft, the County’s Enterprise Resource Planning (ERP) software.

4.6. Receive and transfer funds to other banking institutions as directed by the County.

4.7. Process the receipt, transfer, and payment of booked securities, verify and remit funds. Settle trades, collect income, disburse interest and maturity proceeds.

4.8. Wire proceeds of security sales, calls, interest payments, and maturities to the designated bank account on a same-day basis.

4.9. Provide the County with electronic access to the safekeeping accounts for monitoring, reporting and settling trades. Provide daily Mark-to-market of the County’s portfolio position.

4.10. Provide daylight overdraft protection in the amount of $200 million.

4.11. Provide monthly statements. The statements shall include at a minimum the following information on each security: CUSIP, par value, cost, book value, and market value.

24-Oct 24-Nov 24-Dec 25-Jan 25-Feb 25-Mar 25-Apr 25-May 25-Jun 25-Jul 25-Aug 25-Sep

Concentration 155 160 166 167 160 156 152 152 151 149 140 132

Port Everglades 38 36 36 35 32 29 27 24 20 17 16 13

Water & Wastewater 3 4 5 6 7 2 3 4 5 6 7 0

Total 196 200 207 208 199 187 182 180 176 172 163 145

SAFEKEEPING - Number of Securities Held Per Account (FY 2025) https://www.broward.org/Finance/Pages/InvestmentPolicy.aspx https://www.broward.org/Finance/Pages/InvestmentPolicy.aspx https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0200-0299/0280/0280.html https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0200-0299/0280/0280.html

4.12. Hold the County’s assets in the name of the designated County account, legally separate from the assets of the financial institution in accordance with Section 218.415, of the Florida Statute.

4.13. Provide an annual review report of the safekeeping and custodial procedures to the County’s independent auditor.

5. CUSTOMER SERVICE

5.1. The Vendor must provide the County with a dedicated relationship manager to deliver support, including but not limited to, contract management, performance oversight, escalation, resolution, and training. The vendor must provide direct contact information, including a direct phone line and email address, for County communication during the County’s business hours (Monday through Friday, 8:30 AM to 5:00 PM EST).

5.2. The vendor must provide the County with a dedicated customer service representative to deliver day-to-day operational support, including but not limited to, routing assistance and issue resolution. The vendor must provide a direct phone number for the County to obtain assistance during the County’s business hours (Monday through Friday, 8:30 AM to 5:00 PM EST).

6. TRANSITION / IMPLEMENTATION PLAN

The Vendor must develop a comprehensive transition and implementation plan that will allow the County to seamlessly continue operations and maintain possession of County funds/accounts upon completion of its previous custodian/safekeeping services agreement and implementation of its new agreement. A detailed timeline with full transition and implementation must be provided to the County.

7. ADDITIONAL SERVICES

Additional products and/or services of the same general category that could have been encompassed in the award of this Agreement, and that are not already in the Agreement, may be added during the term of the agreement.