Investment_Advisory_Services_(Addendum_#1_Revision).pdf

City of Beaverton

INVESTMENT ADVISORY SERVICES

Solicitation #: 25-096

DATE & TIME PROPOSALS ARE DUE:

August 20, 2024, 2:00 pm

SUBMIT PROPOSAL ELECTRONICALLY VIA THE PROCUREMENT PORTAL AT:

https://secure.procurenow.com/portal/beavertonoregon

This document is available in alternate formats, such as large print, audiotape, oral presentation, and electronic format. To request an alternate format, email the City of Beaverton at bidmail@beavertonoregon.gov or TDD 503-526-2506.

https://secure.procurenow.com/portal/%7bproject.government.code%7d mailto:bidmail@beavertonoregon.gov

TABLE OF CONTENTS

I. Legal Advertisement II. Introduction and Background

III. Scope of Work IV. Proposal Content and Format V. Proposer's Special Instructions

VI. Proposal Submittals VII. Proposal Evaluation & Contract Award

VIII. Evaluation Phases IX. Beaverton Equity Procurement Program Requirements

Attachments:

A - Sample Contract

B - Form_1._Personal_Professional_Sub-consultant_Disclosure_Form

C - Form - 3 Personal-Professional Contract - Monthly Sub-consultant Payment and Utilization Report

D - 2024 Beaverton Investment Policy

E - Month End Report - BEAV_Total Portfolio - 06.2024

Request For Proposal #25-096 Title: Investment Advisory Services

1. Legal Advertisement

The City of Beaverton is seeking sealed proposals from qualified consultants for Investment Advisory

Services. Consultants are invited to submit a proposal outlining their experience and qualifications in performing work directly related to the services required.

Proposals must be received electronically by Tuesday, August 20, 2024, no later than 2:00 pm, via the

City's e-procurement portal ("portal") at https://procurement.opengov.com/portal/beavertonoregon/projects/104376.

There will be no formal opening. Facsimile proposals will not be accepted. Proposals will not be accepted after the stated opening date and time. Late proposals will not be considered.

Solicitation information may be downloaded from the portal at https://procurement.opengov.com/portal/beavertonoregon/projects/104376

Proposers are required to certify non-discrimination in employment practices in accordance with ORS

279A.110(4), and identify resident status as defined in ORS 279A.120(1). All Proposers are required to comply with the provisions of Oregon Revised Statutes and Beaverton’s Contract Review Board Policy.

The City of Beaverton reserves the right to:

A. Reject any or all proposals not in compliance with public bidding procedures.

B. Postpone award of the contract for a period not to exceed ninety (90) days from date of proposal opening.

C. Waive informalities in the proposals.

D. Select the proposal which appears to be in the best interest of the City.

PUBLISHED: Daily Journal of Commerce DATE: Wednesday, July 17, 2024

2. Introduction and Background

2.1. Summary

The City of Beaverton is currently seeking proposals from qualified firms interested in providing investment advisory services for the City’s investment portfolio. The City’s portfolio is divided into three categories: its core portfolio, a cash match (liquid) portfolio, and the Oregon Local Government

Investment Pool (LGIP). Approximately 80% of the City’s funds are held in the core portfolio, with approximately 20% held in either the cash match portfolio or LGIP, based on the City’s needs. The cash match portfolio is designed for short-term investing to match maturities with cash flow needs while maximizing return on liquid assets. The City’s holdings in LGIP are considered cash-on-hand for immediate needs, are managed by State of Oregon, and are currently capped at just under $60 million. The core portfolio holds the remaining funds to be more actively managed. The City’s current Investment Policy states that investments will be managed on a non-discretionary basis. The City intends to explore transitioning to discretionary investment services during the term of this contract. The Investment https://procurement.opengov.com/portal/beavertonoregon/projects/104376 https://procurement.opengov.com/portal/beavertonoregon/projects/104376

Title: Investment Advisory Services advisor will be required to manage the funds in accordance with the laws of the State of Oregon, the City’s

Investment Policy, and other investment policies and procedures established by the City.

The current average size of the City’s portfolio is approximately $175 million, comprised of operating funds and bond proceeds. Copies of the current investment policy and portfolio holdings are provided.

The City encourages all prospective investment advisors to examine this RFP carefully. Qualified advisors, as defined below, are requested to submit proposals to provide the services described in this RFP. 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 and portfolio accounting services.

The firm selected as the investment advisor 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 shall act solely in a fiduciary capacity and shall not receive any fee or compensation based upon the purchase or sale of securities but, rather, the investment advisor will be compensated pursuant to the provision of its contract with the City.

2.2. Background

Nestled in the heart of the Tualatin Valley, midway between Mt. Hood and the Oregon coast, Beaverton is a first-tier suburb in the Portland metropolitan area and is home to a population of approximately

100,000. The City has a growing commercial and industrial base anchored in high tech, clothing, and other innovative sectors of the economy. More information about the City is available at www.BeavertonOregon.gov.

The City of Beaverton, Oregon, has long been committed to excellence in fiscal administration, striving for the highest standards of performance and accountability. The City is inviting competitive proposals from qualified and experienced Investment Advisory firms to assist with the management and performance of the City’s investment portfolio. The object of requesting proposals is for the City to determine which firm can offer the highest quality of service at the most reasonable cost.

The Finance Department of the City of Beaverton is responsible to the City Manager under the terms of the City Charter. The Finance Department is responsible for all fiduciary activities of the City.

The City maintains an average investment portfolio of approximately $175 million. Consistent with the

City’s approved Investment Policy, the Finance Director invests funds in the Oregon Local Government

Investment Pool, a Community Deposit program using local banks and credit unions and investments in agencies, treasuries, commercial paper, and other approved, conservative vehicles. The City Council reviews the Investment Policy annually and seeks concurrence of the Oregon Short Term Fund Board only if substantive changes occur.

We encourage firms to be creative and educational in your responses. While the format must be consistent with the requirements of the RFP, if you believe that your proposed solution or services would be beneficial to the City, we invite you to offer them.

https://www.beavertonoregon.gov/ http://www.beavertonoregon.gov./

Title: Investment Advisory Services

2.3. Contact Information

Susan Cole

Assistant Finance Director

12725 SW Millikan Way

PO Box 4755

Beaverton, OR 97076

Email: scole@beavertonoregon.gov

Phone: (503) 350-4061

Department:

Finance

Department Head:

Debbi Launcher

Finance Director

2.4. Timeline

The City reserves the right to modify this schedule at the City’s discretion. Proper notification of changes will be made to all interested parties.

Advertisement and Release of Proposals July 17, 2024

Deadline for RFP Protests or Requests for

Changes

July 30, 2024, 5:00pm

Question Response Deadline August 9, 2024, 5:00pm

Deadline for Submission of Proposals August 20, 2024, 2:00pm

Interviews (If necessary) September 5, 2024

Zoom or Beaverton City Hall

Award of Contract by Contract Review

Board

November 5, 2024

Commencement of Services January 1, 2025

3. Scope of Work mailto:scole@beavertonoregon.gov tel:(503)350-4061

Title: Investment Advisory Services

3.1. Scope of Work

The City of Beaverton is currently seeking proposals from qualified firms interested in providing investment management services for the City’s investment portfolio. The City’s portfolio is divided into three categories: its core portfolio, a cash match (liquid) portfolio, and the Oregon Local Government

Investment Pool (LGIP). Approximately 80% of the City’s funds are held in the core portfolio, with approximately 20% held in either the cash match portfolio or LGIP, based on the City’s needs. The cash match portfolio is designed for short-term investing to match maturities with cash flow needs while maximizing return on liquid assets. The City’s holdings in LGIP are considered cash-on-hand for immediate needs, are managed by State of Oregon, and are currently capped at just under $60 million. The core portfolio holds the remaining funds to be more actively managed. The City’s current Investment Policy states that investments will be managed on a non-discretionary basis. The City intends to explore transitioning to discretionary investment services during the term of this contract. The Investment advisor will be required to manage the funds in accordance with the laws of the State of Oregon, the City’s

Investment Policy, and other investment policies and procedures established by the City.

The current average size of the City’s portfolio is approximately $175 million, comprised of operating funds and bond proceeds. Copies of the current investment policy and portfolio holdings are provided.

The City encourages all prospective investment advisors to examine this RFP carefully. Qualified advisors, as defined below, are requested to submit proposals to provide the services described in this RFP. 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 and portfolio accounting services.

The firm selected as the investment advisor 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 shall act solely in a fiduciary capacity and shall not receive any fee or compensation based upon the purchase or sale of securities but, rather, the investment advisor will be compensated pursuant to the provision of its contract with the City.

MINIMUM QUALIFICATIONS

To be considered for the role of investment advisor, the firm must meet the following minimum qualifications:

• The investment management firm must be a registered investment advisor with the Securities and Exchange Commission under the Investment Company Act of 1940 or be exempt from registration.

• The firm must be registered with the State of Oregon.

• All investment advisor firm representatives conducting investment transactions on behalf of the

City of Beaverton must be registered representatives with FINRA.

Title: Investment Advisory Services

City of Beaverton must be licensed by the State of Oregon.

City of Beaverton must certify having read, understood, and agreed to comply with the City’s

Investment Policy.

• The firm must be completely independent of any financial institution or securities brokerage firm, or fully disclose any such relationship. The proposer must act in a fiduciary capacity to the City.

• The investment management firm must manage fixed-income assets of at least $20 billion of domestic fixed income assets for public entities. Assets for which periodic (daily, monthly, or quarterly) advice is provided should be excluded from the calculation of funds under management.

• The investment management firm must demonstrate ten (10) years of experience providing investment management services similar to the scope of services contained in this RFP to municipalities or other governmental entities of comparable size and complexity to the City of

Beaverton.

• The investment advisory firm must have Errors & Omissions insurance coverage of at least $15 million and fidelity bond coverage of at least $10 million.

SCOPE OF SERVICES

Specific responsibilities of the selected investment adviser will include, but are not limited to the following:

A. Advise the City on all matters pertaining to the investment management of its idle funds, including operating funds, cash match funds, and proceeds from bonds and other debt instruments.

B. Perform cash flow analyses to assist with identifying and maintaining appropriate allocations between the City’s cash match, LGIP and core funds.

C.Comply with all federal and State of Oregon laws and ordinances, resolutions and policies of the

City of Beaverton.

D. Provide non-discretionary investment management services for the portfolio.

▪ Present investment options to staff and obtain staff approval prior to executing trades on behalf of the City.

▪ Coordinate with staff on liquidity needs and ladder investments accordingly.

Title: Investment Advisory Services

▪ Assist in developing and implementing non-discretionary Investment strategies that will maintain or enhance portfolio quality and performance within the parameters of the

City’s established investment policies and cash flow needs, taking into consideration our primary objective, which is “the preservation of principal.” We expect the advisor to be proactive to changing market conditions and financial events such as the receipt of bond proceeds and the annual property tax cycle.

▪ Work with City’s cash management staff to assure coordination of investment trades, delivery of the securities and availability of funds. Assist with trade settlements. Obtain and document competitive prices for securities transactions. Provide technical and fundamental market research, including yield curve analysis

E. Assist the City in updating its investment policy to include transitioning to discretionary investment services. Assist in the review of investment management procedures and portfolio documentation, as well as safekeeping and custodial procedures. Advise and assist the development of appropriate benchmarks for performance of the portfolio.

F. Propose transition to discretionary investment management services, including:

• Describe how investment trades would be executed on behalf of the City in accordance with an updated Investment Policy, all applicable statutes and bond covenants, if applicable.

• Describe how investment purchases will utilize the City’s safekeeping account and be made on a delivery versus payment basis.

• Describe research and solicitation methods for competitive quotes from financial institutions and broker/dealers for permitted investment securities and the maintenance of documentation for review by the City, upon request.

• Describe the interface with the City’s custodian and staff to ensure the coordination of investments, delivery of securities and availability of funds as needed. (All securities will be held by a third-party custodian in the name of the City and all transactions will settle on a

“delivery versus payment” basis. The advisor will not provide custodial services or safekeeping.)

• Describe how the portfolio will be monitored in relation to the investment market to determine if investments should be repositioned.

• Describe how the credit worthiness of financial institutions and investments in the portfolio will be monitored.

G. Perform due diligence reviews of current and proposed broker/dealers and financial institutions. Monitor the credit worthiness of the financial institutions and security issuers with which the City does business. Assist in keeping the authorized financial institution list updated. Monitor the

Title: Investment Advisory Services creditworthiness of the City’s depository and custodian bank and investments in the portfolio. Affirmatively perform the role of the Investment Advisor described in the Investment Policy.

H. Provide input regarding the appropriate measurement of portfolio performance and benchmarks to assess performance.

I. Provide monthly reports on investment activity and changes from the prior month, earnings, and the market value of portfolio holdings, suitable for posting on the City’s public website. Provide quarterly and annual reports, based on the City’s fiscal year, showing the portfolio’s performance, rate of return and sufficient detail for accounting (recording and management reporting) and financial statement (auditing) purposes. Reports shall be furnished to the City within ten (10) calendar days after the close of each month. Reports shall include accounting methodology and follow Generally Accepted

Accounting Principles (GAAP) and Governmental Accounting Standards Board (GASB) fair market value reporting. For fiscal year end of June 30 each year, provide the fair value for the outstanding investments within fifteen (15) calendar days of June 30.

J. Review and evaluate the City’s Investment Policy annually and provide written comments and recommend changes as needed.

K. Communicate regularly, at a minimum quarterly, with City staff on investment decisions and strategy.

L. Provide City staff with ongoing training and technical advice as needed.

M. Aid the City in developing timely responses to City Council inquiries, auditor inquiries, or other inquiries from external parties.

N. Meet at least annually with City staff to review portfolio strategy and performance, to refine investment parameters and make recommendations. Meet more frequently with City staff at

City’s request.

O. Provide information regarding current and forecasted market and economic conditions, as needed.

P. Invest proceeds of tax-exempt bond issuances in compliance with arbitrage and rebate requirement of the U.S. Treasury, currently described in Section 148 of the Internal Revenue Code of

1986 as amended and of the related Code of Federal Regulations. In addition, maintain relevant records needed to perform computations required by the regulations.

Q. Promptly deliver trade reconciliations and accompanying documentation to City staff.

Title: Investment Advisory Services

R. Provide weekly statement of anticipated cash flows, including maturities and coupons. Possess the capacity to offer a statement of cash flows for a six-month period upon request.

S. Permit the City to query data, create a variety of reports, and export data in Excel and PDF formats.

T. Other investment management services, as may be mutually agreed to, if the firm has expertise and experience in these areas.

U. The services provided will cover five years, beginning January 1, 2025. The contract will allow for two, one-year extensions at the option of the City.

PROPOSAL FORMAT AND CONTENT

Information should be presented in the order in which it is requested below.

A. Transmittal Letter (2 pages maximum): A Transmittal Letter shall be included with the proposal, addressed to Debbi Lauchner, Finance Director, and must contain the following information:

1. Identification of firm, including name, address, email address and telephone number; and

2. Name, title, email address, and telephone number of the firm’s contact person during period of proposal evaluation; and

3. Acknowledgment of receipt of all RFP addenda, if any; and

4. A statement to the effect that the proposal and pricing shall remain valid for a period of not less than 120 days from the date of submittal; and

5. A statement of your intentions to bid on all sections of the Scope of Services.

B. Technical Proposal

Proposals should be prepared simply and economically, providing a straightforward, concise description of capabilities to satisfy the requirements of the RFP. Please limit the length of the technical proposal, items #1 through #11, excluding any required appendices, to 40 pages. Emphasis should be on completeness and clarity of content. Proposals should not include any unnecessarily elaborate or promotional material.

1. Describe how your firm proposes to implement the Scope of Services.

2. Firm Background and Organization

Title: Investment Advisory Services

a. Describe the organization, the type of services offered, ownership of your firm, and date founded. Specify the number of years your organization has been providing investment advisory services.

b. How many individuals does your firm employ? Please list employees by function, being sure to carefully specify the number of portfolio managers, portfolio strategists, credit researchers and investment accountants.

c. Describe the firm’s sources of revenue, categorized by retail and institutional accounts.

d. Describe any other business affiliations (e.g., subsidiaries, joint ventures, “soft dollar” relationships).

e. Within the past three years, have there been any significant developments in your organization (changes in ownership, new business ventures)? Do you expect any changes in the near future?

f. Provide a copy of your firm’s most recent audited financial statement as an appendix.

g. Is your firm a registered investment advisor under the Investment Advisor's Act of 1940?

Please attach Part 2A of your most recent Form ADV as an appendix.

h. Describe any SEC, regulatory censure, or litigation involving your firm, any officer or employee at any time for the last ten years.

i. Fully describe the firm’s professional/errors and omissions insurance coverage.

3. Portfolio Management:

a. Are portfolios managed by teams or individuals?

b. For your latest reporting period, provide the amount managed (exclude accounts for which your services are providing periodic oversight or advice) for each of the following categories:

i. $ AmountPercentNumber/CountPercentMunicipalities Other

Governments Other ______________(specify) Total 100% 100%

c. List three clients that are most similar to the City for fund investment management. For each client listed, include the following:

i. Name of entity;

ii. Dollar amount of funds presently under management;

iii. Number of years that client has been with your firm;

iv. Investment approach or philosophy, e.g., following of prescribed index, cash flow matched, or risk versus return;

v. If services provided are discretionary or non-discretionary;

vi. Contact person, name, position title, phone number, and email address.

d. Provide data on account/asset growth and other performance statistics over the past three years for your fixed income clients.

4. Key Proposed Personnel and Team Organization:

a. Identify the number of professionals employed by your firm, by classification.

b. Provide the name, title, phone number and email address of the primary contact person(s) assigned to this account.

Title: Investment Advisory Services

c. Name the investment professionals who will be involved in the decision-making process for the City’s portfolio. Information must include:

i. Proposed role with the City;

ii. Biographical information;

iii. Experience working with other Oregon public agencies;

iv. Number of years of experience in this field; and

v. Number of years with your firm.

d. What is the back-up if the primary portfolio manager or client contact is away?

e. Describe the firm’s training and education efforts to keep the firm’s investment professionals informed of developments relevant to government entities.

5. Investment Philosophy/Approach

a. Describe your firm’s investment philosophy for public (government) clients. Briefly describe your firm’s investment management philosophy regarding duration, maturity, investment types, credit quality, and yield.

b. Describe the maturity concentration, quality, and sectors of current accounts most similar to the City.

c. What are the primary strategies for adding value to portfolios (e.g., market timing, credit research, trading)?

d. Describe the process you would recommend for evaluating the investment objectives and constraints for the City’s portfolio.

e. Describe your firm’s trading methodology and approach.

f. Describe your firm’s decision-making process in terms of structure, such as committees and its membership, meeting frequency, responsibilities, integration of research ideas and portfolio management.

g. How has your firm advise clients during sub-prime rate environments? Please provide copies of relevant materials.

h. Describe your firm’s credit philosophy and review process. Who at the firm is responsible for conducting credit research and monitoring?

i. Describe your in-house credit review and risk control process. Does your firm assign credit research to specialists?

j. Describe your firm’s experience advising or managing the proceeds of tax-exempt bonds in accordance with the Arbitrage Rebate Regulations and requirements of the Tax Reform Act of 1986.

6. Reporting/Performance Measurement

a. Describe the records you would keep, the reports you would make to the City and the frequency of those reports. Are reports available online? Provide samples of records and reports typically provided to clients.

b. Describe how you typically report performance. Include a copy of a performance report to a client similar to the City. (You do not need to identify the client and may redact any client names within the sample report.)

Title: Investment Advisory Services

c. Are you willing to provide and/or develop reporting procedures in line with the City’s needs and objectives?

d. Describe and indicate what benchmarks the firm uses to compute performance.

e. Provide performance history for the past ten (10) years against the benchmarks described above. The composites should consist of a minimum of ten current public sector accounts. NO SAMPLE

PORTFOLIOS. Provide information about the composition and duration of the data used, including the number of portfolios making up the composite, for your presentation of performance history.

7. Control

a. Describe the procedures used to ensure that client portfolios comply with investment objectives and policies.

b. Describe the firm’s security environment. Specifically cover the physical and digital security and software safeguards that you have put in place to control access to portfolio reporting systems and client account information.

c. Describe the participation of legal/compliance staff on firm oversight, management, or similar committees.

d. Describe the use of technology in the compliance process and any planned technological upgrades.

8. Disaster Recovery

a. Briefly describe your organization’s disaster recovery plans. Include current estimates of time frames required to resume service in all functional areas, including systems, operations, and client administration.

b. How often are contingency plans reviewed and tested? Briefly describe the testing methodology (e.g., simulated disaster with actual offsite system regeneration and recovery). When was the plan last tested?

c. How frequently are customer records backed up? Are backup transaction files stored in the same location as the primary copy? If not, where are those files stored?

d. Is there a “hot” alternate backup processing site? Describe its location and capabilities.

What is the contingency plan if a “hot” backup site is not available, and a disaster occurs that prevents all work from being processed on a same-day basis?

9. Additional Information

a. Briefly describe any additional feature, attributes, or conditions which the City should consider in the selection process.

b. Describe any other services your firm can provide that may be applicable to the City’s needs/accounts/portfolios.

10. References

a. Provide at least three public references, preferably municipalities, for which you have provided the type of services the firm is proposing to provide. Include the date the(s) the services were furnished, the client's name, address, and the name and phone number of the individual the City may contact.

Title: Investment Advisory Services

11. Fees

a. Provide a complete fee schedule that would apply to this portfolio(s) to accomplish the requirements of the Scope of Services.

b. What additional expenses not covered through the proposed fee structure will be expected in order to implement your investment advisory services?

c. Does the firm act as a broker or as a dealer in securities or receive any other form of additional compensation (including soft dollars) related to this project aside from the direct fee paid by the City?

12. Required Appendices (not included in the page limit)

a. Audited financial statements

b. SEC ADV Part 2A

c. Resumes of key investment professionals

d. Sample reports

A.

4. Proposal Content and Format

Proposals must address all submission requirements set forth in this RFP, and must describe how the services will be provided. Page limits are noted, when relevant, and assume 81/2 x 11 – inch paper and single-spaced lines. Unless otherwise specified, no particular form is required. In order to be considered for selection and possible contract, the proposal must be complete and include the following. Joint proposals will not be accepted. Proposals that merely offer to provide services as stated in this RFP will be considered non-responsive.

4.1. Proposal Format and Administrative Requirements

The City’s proposal format and administrative requirements are set out below. These are intended to facilitate the City’s ability to quickly and accurately evaluate proposals. Failure to follow these format and administrative requirements may affect the scoring of proposals.

A. Cover Page

Include a cover page with the submitted proposal. The cover page is counted in the total page count unless stated otherwise. Include the following information on the cover page: The RFP

Title;

The name, title, address, telephone number, fax number, e-mail address of Proposer’s primary contact person; and

The date of submission.In addition to the above information, but not in lieu thereof, Proposers may include other information on the cover page.

Title: Investment Advisory Services

B. Table of Contents

Include a table of contents with the submitted proposal. All material items comprising the proposal should be clearly identified and easily located. The table on contents page is counted in the total page count unless stated otherwise.

C. Page Limit

There is page limit of 40 pages on proposals submitted in response to this procurement. This page limit does not include the cover page or résumés. If providing résumés or proposing changes to the Contract (Exhibit A - Sample contract), please include those at the end of the proposal.

4.2. Substantive Requirements

The following information is requested to allow the City to evaluate Proposer responsibility and responsiveness to perform work described under the “Scope of Work” heading. If a contract is awarded, City shall award the contract to the responsible Proposer whose proposal it determines in writing to be the most advantageous to the City based on the evaluation process and evaluation factors described in

Section 5 of this RFP, any applicable preferences described in ORS 279A.120 and 279A.125 and, when applicable, the outcome of any negotiations authorized by the RFP. Other factors may not be used in the evaluation.

Knowledge & Experience-Background Of The Firm

A comprehensive history of your firm and its experience Investment Advisory Services. Include the following information by uploading your documents:

• The total number of years the firm has been in business, the general scope of services the firm provides, the current number of employees, and current principal areas of expertise.

• A narrative description of the firm’s organization and relationship to any larger business entity. Include an organizational chart depicting the information provided.

• A description of similar work performed involving the items called out in the Scope of Work.

• A summary of the firm’s management and organizational capabilities, particularly regarding organizational resources to deliver complex projects on short notice and/or a hard deadline.

Knowledge & Experience-Key Personnel

Identify by name and title, the key staff members who will be assigned to work with the City, if the City awards the Proposer the contract contemplated by the RFP. Key staff members are those people who provide substantive work for the City. Provide a biography for each identified key staff person.

Biography must include but need to be limited to, a description of the education, qualifications, experience, and training of each key staff person. The description would likely include information about the key staff person’s work history, range of duties, project management history, key responsibilities on previous projects, and any professional designations, licenses, or certifications. Include the following information by uploading your documents:

Title: Investment Advisory Services

• A resume for the key personnel to be assigned to this project, showing such education and experience as may be relevant to this particular project.

• A description of each key personnel’s proposed roles and responsibilities on the project team.

• An organizational chart of the proposed project team.

Knowledge & Experience-Sub Consultant Qualifications

A statement of whether you intend to use sub-consultants to fulfill any part of the tasks described under the scope of work. To the extent you intend to use sub-consultants to fulfill any of the required tasks, include the following information by uploading your documents:

• Scope of the services that the sub-consultant will perform to fulfill the tasks described under the scope of work.

• If the scope of services is to be performed by a specified team of the sub-consultant, a description of the sub-consultant's key personnel in that team and a resume for each of them, showing such education and experience as may be relevant to the services to be performed.

• A description of the proposed roles and responsibilities of each of the sub-consultant's key personnel for this project.

Project Approach & Understanding

With the Scope of Work in mind, submit statements of project approach and understanding that include the following, by uploading your documents:

• A description of the proposed work tasks and activities, the methodology that will be used to accomplish them, and identify the team members who will work on each task.

• A description of the proposed work products that will result from each task or activity.

• A description of any points of input and review with City staff.

• A description of the time frame estimated to complete each task.

• A description of how you will meet the goals of the project and the characteristics described in the scope of work.

• A description of a practical approach to meeting the City’s specific deadlines is set out in Section

3.2 of this RFP.

• A description of the process or tools required by the scope of work.

• To the extent applicable, a description of and a stated rationale for any proposed alternative approaches to the stated objectives of this project.

Relevant Experience & References

Title: Investment Advisory Services

Provide a description of the expertise and recent experience you have in the areas described under the

Scope of Work section of this RFP. Briefly describe other contracts executed by the Proposer that demonstrate relevant experience. Include by uploading your documents:

• A description of your experience in Investment Advisory Services.

• A list of at least three (3) current references for the most relevant completed contracts that directly relate to the scope of services. The reference list should state the reference’s company name, address, contact name and title, phone number, email address, and description of the service provided to the reference.

Beaverton Equity Procurement Program

The City is dedicated to increasing opportunities for enterprises that have been certified by the State of

Oregon, through the Certification Office for Business Inclusion and Diversity (COBID). A directory of these state-certified firms is available at www.oregon4biz.com/certification.

The City would like to achieve 15 percent of firms certified by COBID in its overall dollar amount of contracting and purchasing activities. In evaluating proposals, the City will consider firms that will be able to help the City achieve this goal.

Therefore, the proposal shall address the following:

A. Is your firm currently certified through the State of Oregon COBID? If yes, indicate all certification types and your firm’s certification number(s). If Proposer is a COBID-certified firm, 4 points are awarded. If Proposer is not a COBID-certified firm, 0 points will be awarded.

B. Provide a narrative description of your firm’s experience, including any innovative or successful measures, promoting COBID-certified enterprises as partners, subcontractors, or suppliers on previous projects. (1 point)

C. Provide a list and percentage of total contract dollars spent with COBID-certified enterprises with which the Proposer’s firm has had a contractual relationship during the last 12 months. (2 points)

D. Describe the actions the Proposer will take to include COBID-certified enterprise participation in this project. Of the subcontractors (if any) identified in the Proposal, specify which subcontractors are COBID-certified enterprises and what certification they hold, if any. (3 points)

E. State the participation goal the Proposer believes it can realistically achieve on this project using

COBID-certified enterprises identified above. A percentage level is preferred. If Proposer states

Zero percent, 0 points will be awarded. (2 points)

Additional Services (optional)

To the extent you believe you can provide the City additional services in matters relevant to the City’s interests, provide a brief description of those services and an approximation of the charge for each http://www.oregon4biz.com/certification

Title: Investment Advisory Services service of this type. Such services would be contracted for on an “as needed” basis, to be provided and billed for separately. Offers and/or pricing of additional goods or services included under this heading are not a factor in the evaluation of Proposals.

5. Proposer's Special Instructions

5.1. Proposal Submittal

Proposals will be received until 2:00 pm on Tuesday, August 20, 2024. Late or faxed transmitted proposals shall not be accepted. Proposals will only be accepted electronically through OpenGov. The

City accepts no responsibility for non-receipt and/or delays in receipt caused by transmission and reception problems, equipment failure, or any other similar cause.

5.2. Minimum Requirements

To be considered for the role of investment advisor, the firm must meet the following minimum qualifications:

• The investment management firm must be a registered investment advisor with the Securities and Exchange Commission under the Investment Company Act of 1940 or be exempt from registration.

• The firm must be registered with the State of Oregon.

• All investment advisor firm representatives conducting investment transactions on behalf of the

City of Beaverton must be registered representatives with FINRA.

• All investment advisor firm representatives conducting investment transactions on behalf of the

City of Beaverton must be licensed by the State of Oregon.

• All investment advisor firm representatives conducting investment transactions on behalf of the

City of Beaverton must certify having read, understood, and agreed to comply with the City’s

Investment Policy.

• The firm must be completely independent of any financial institution or securities brokerage firm, or fully disclose any such relationship. The proposer must act in a fiduciary capacity to the

City.

• The investment management firm must manage fixed-income assets of at least $20 billion of domestic fixed income assets for public entities. Assets for which periodic (daily, monthly, or quarterly) advice is provided should be excluded from the calculation of funds under management.

• The investment management firm must demonstrate ten (10) years of experience providing investment management services similar to the scope of services contained in this RFP to

Title: Investment Advisory Services municipalities or other governmental entities of comparable size and complexity to the City of

Beaverton.

• The investment advisory firm must have Errors & Omissions insurance coverage of at least $15 million and fidelity bond coverage of at least $10 million.

5.3. Pre-Proposal Conference

There will be no Pre-Proposal Conference.

5.4. Clarification of Solicitation

All questions regarding this project shall be directed through the Question-and-Answer (Q and A) section of this solicitation in OpenGov.

Please note that downloaded copies of this solicitation will not contain the Q and A section referenced above.

5.5. Procurement Method

The City is conducting this RFP pursuant to ORS 279A.050 and Beaverton Purchasing Code Section 46-

0100. The City seeks proposals that will enable the City to determine which service provider and solution will best meet the City’s needs. The City expects this RFP will result in a single contract with a single vendor for the preferred solution.

5.6. Proposals not available for Public Inspection At The Opening

No formal opening will occur in connection with this procurement. In accordance with ORS

279B.060(6)(a) only the names of the Proposers shall be disclosed at the opening. Notwithstanding ORS

192.410 to 192.505, proposals are not required to be open for public inspection until after the Notice of

Intent to Award a Contract is issued.

5.7. Distribution of Proposals

The City intends to publish the names of all Proposers on its portal within 24 hours of the opening of

Proposals. Proposals will be distributed to members of the City’s evaluation team. In submitting a proposal, each Proposer agrees that the City may post the proposal on the City’s Portal for evaluation and ranking and reveal any trade secret or other confidential materials contained in the proposal to City staff and to any outside consultant or third party retained by the City for purposes of evaluating and ranking proposals.

5.8. Proposal Validity Period

Proposals must remain open and valid for at least 180 days from the deadline specified for submission of

Proposals. In the event award is not made within 180 days, the City will send a written request to all

Proposers deemed susceptible for award, asking Respondent(s) to hold their price firm for a longer specified period of time.

Title: Investment Advisory Services

5.9. Withdrawal of Proposals

If a Proposer wishes to withdraw a submitted proposal, it shall do so prior to the Closing date and time.

5.10. Cost of Preparing Proposals

All costs incurred in preparing and submitting a proposal in response to the RFP is the responsibility of the Proposer and shall not be reimbursed by Agency.

5.11. Interpretations and Addenda

All questions regarding this project shall be directed through the Question and Answer section of this solicitation in OpenGov. If necessary, interpretations or clarifications in response to such questions may be made by issuance of an addendum to all prospective proposers within a reasonable time prior to proposal closing, but in no case less than 72 hours before the proposal closing. If an addendum is necessary after that time, the City will extend the closing date.

Any addendum issued as a result of any change in the RFP must be acknowledged via OpenGov's addenda acknowledgement feature.

Only questions answered by formal addenda or through the OpenGov Q and A section of this listing are binding. Oral and other interpretations or clarifications are without legal effect.

5.12. Protests

Address any protests to:

The Beaverton Building, City of Beaverton

Michael Phillips, Purchasing Manager email to: mphillips@BeavertonOregon.gov

Name of Solicitation: Investment Advisory Services-PROTEST

Closing date and time: Tuesday, August 20, 2024, 2:00 pm

5.13. Specification/Term Protest

Ambiguities or problems with this RFP, its contract terms, or specifications may be resolved by asking questions, seeking clarification, requesting changes, or filing a formal protest. The information provided below describes the appropriate process to pursue these options, should the need arise.

A. RFP Protest or Request for Change of Specifications or Terms

A Proposer who believes any proposal specifications or terms detailed in this RFP (including its addenda, if any) are unnecessarily restrictive or limit competition must submit a protest or request for change, in writing, to the Purchasing Office. A request for change regarding the terms of this RFP must be submitted through the Question and Answer section of this solicitation in OpenGov. A request for change to any of the terms of the Contract (Exhibit A -mailto:mphillips@BeavertonOregon.gov

Title: Investment Advisory Services

Sample Contract) must be submitted in writing with the proposal submission. Failure to submit any requested changes to the Contract (Exhibit A - Sample Contract) foregoes the right to negotiate changes to the Contract terms upon contract award.Any protest or request for change regarding the terms of this RFP shall include the reasons for the protest or request and shall detail any proposed changes to the specifications or terms. The Purchasing Office shall respond to any protest or request for change and, where appropriate, shall issue any revisions, substitutions, or clarification via addenda to all interested Proposers. To be considered, protests or requests for change regarding the terms of this RFP must be submitted before the deadline detailed in Section 2.

B. Exclusion Protest

Upon the City’s issuance of the notice of (a) Proposers to be interviewed or (b) Proposers invited to engage in discussion, a Proposer may protest its exclusion from the top tier as set forth in

Beaverton Purchasing Code Section 47-0720. An Affected Proposer may protest, for any of the bases set forth in Beaverton Purchasing Code Section 47-0720(B). Failure to so protest shall be considered the Proposer’s failure to pursue an administrative remedy made available to the

Proposer by the City.

C. Intent to Award Protest

The City intends to announce its intent to award prior to the Contract award by posting the tabulation sheet of Proposal results and Intent to Award Letter on the City’s portal and/or by email to Proposers. The notice shall serve as notice to all Proposers that the City intends to negotiate and to make an award. Adversely affected or aggrieved Proposers shall have seven (7) calendar days from the date of the Intent-to-Award Notice within which to file a written protest.

Protests submitted after that date shall not be accepted. Protests shall specify the grounds upon which the protest is based. (Refer to Beaverton Purchasing Code Section 47-0740.) Failure to so protest shall be considered the Proposer’s failure to pursue an administrative remedy made available to the Proposer by the City. The City intends to respond by email to properly-filed intent-to-award protests submitted by adversely affected or aggrieved Proposers. Any response provided by the City, however, is not intended to, and may not in and of itself constitute, confirmation that the Proposer is in fact adversely affected or aggrieved and therefore entitled to protest intent to award. After the expiration of the seven (7) calendar-day intent-to-award protest period and resolution of all protests, the City intends to proceed with negotiations and, where appropriate, the final award.

5.14. Business License/Taxpayer ID Number

A Proposer awarded a contract shall obtain a City business license as required by Beaverton Code

Section 7.01 prior to beginning work under this contract and must pay all fees due under the Business

License Law during the term of the contract.

Title: Investment Advisory Services

A Proposer awarded a contract shall complete an IRS Form W-9 for the City and provide the City with either the Proposer’s Social Security Number or federal taxpayer ID number. This number is requested pursuant to BPC 47-0770 of the Beaverton Purchasing Code. Social Security numbers provided pursuant to this requirement will be used for the administration of state, federal, and local tax laws.

5.15. Contract Administrator

The Contract Administrator will be Susan Cole, who can be reached by telephone at (503) 350-4061 or by e-mail at scole@beavertonoregon.gov.

5.16. Insurance Requirements

The contractor will be expected to meet the insurance requirements set forth in Section 18 and Exhibit 1 of the contract (Attachment “A”). Proposers taking exception must submit a request for a change with their proposal.

5.17. Term of Contract & Availability of Funds

A contract awarded is expected to commence on or about expected to commence on or about

__January 1, 2025________ and end on or before ____December 31, 2029_____. Any contract awarded pursuant to the RFP that has a term of more than one year must include a non-appropriation clause.

Continuation or extension of the contract after the end of the fiscal period in which the contract takes effect shall be contingent upon a new appropriation for each succeeding fiscal period. If sufficient funds are not provided in future City Council-approved budgets of the City (or from applicable federal, state, or other sources) to permit City in the exercise of its reasonable administrative discretion to continue the contract, the City may terminate the contract without further liability by giving Proposer reasonable notice.

5.18. Multi-Year Contract

At the conclusion of the first 5-year contract term, the contract may be renewed under similar terms for up to two (2) additional one-year terms at the option of the City.

5.19. Intergovernmental Permissive Cooperative Procurements

Pursuant to ORS 279A.215 and City of Beaverton procurement rules, other public agencies may purchase goods and services under the terms, conditions, and prices of any contract resulting from this solicitation if the Consultant agrees to extend the terms, conditions, and prices of the contract resulting from this…