RFP_2-27_Investment_Services.pdf

City of Cheyenne / Request for Proposal / Investment Advisory Services / RFP 2-27

REQUEST FOR PROPOSAL (RFP 2-27)

for

Investment Advisory Services

For the City of Cheyenne

Issued by:

City Treasurer’s Office

City of Cheyenne, Wyoming

Proposal Statements due:

Friday, November 13, 2026

3:00 PM

at:

City of Cheyenne

Purchasing, Attn: TJ Barttelbort

2101 O’Neil Avenue

Cheyenne, WY 82001

(307) 773-1045

CITY OF CHEYENNE

REQUEST FOR PROPOSAL

INVESTMENT ADVISORY SERVICES

The City of Cheyenne (“City”) is currently seeking proposals for the following work as specified:

Investment Advisory Services RFP# 2-27

The City will be accepting sealed proposals until 3:00 p.m. on January 8, 2027.

The successful firm is expected to actively manage a portfolio of up to approximately $100 million. The amount assigned to the adviser may vary based on the City's portfolio structure, liquidity requirements, investment strategy, and availability of funds.

Currently, the City Treasurer’s office is responsible for the investment of all funds of the City, including both liquid and longer-term investment portfolios. Investment management has become increasingly complex due to evolving market conditions, statutory requirements, and the City's expanding investment program. The City is therefore seeking proposers who are registered with the Securities and Exchange Commission (“SEC”) and have demonstrated experience as independent investment advisers for public agencies.

This Request for Proposal (“RFP”) is designed to present interested firms with a description of the City’s current investment program, the services we require, and a format for responding to our request.

I. BACKGROUND

The investment of City funds is governed by the laws of the State of Wyoming and the City’s separate Investment Policies and Portfolio Guidelines. The City’s primary investment objectives, in order of importance, are: (i) the safety and preservation of principal; (ii) maintenance of sufficient liquidity; (iii) a reasonable and competitive rate of return; and, (iv) an emphasis on local community investment.

We are seeking advisers who can demonstrate extensive experience, particularly in managing public sector portfolios with significant fixed-income allocations and, where applicable, diversified equity investment, to provide certain services related to the investment of municipal funds, including the execution of securities purchases/sales, investment advice, investment reporting, and review of the City’s investment policies and procedures.

The majority of the City's funds are pooled for investment purposes and managed in accordance with the City's Investment Policy Statement and Portfolio Guidelines. The

Investment Policy Statement (Attachment A) governs all investment management activities performed under any resulting agreement. A list of the City's current investments is included as Attachment B.

The City's investment portfolio consists primarily of operating funds invested in fixed-income securities and cash equivalents. In accordance with the City's Investment Policy Statement, the portfolio may also include diversified equity investments within the limits established by the City's Investment Policy Statement and applicable Wyoming law. Advisers should demonstrate experience managing diversified public sector portfolios that include both fixed-income and equity investments.

II. SCOPE OF SERVICES

The exact range and extent of services are subject to negotiation but include, at a minimum, professional services and dedicated personnel to perform the following:

The Investment Adviser shall:

• Have a minimum of five years of experience managing public sector investment portfolios, including fixed-income securities and, where applicable, diversified equity investments.

• Assign an account manager to the City account with a minimum of five years of experience in investment management.

• Demonstrate familiarity with all applicable Wyoming statutes with regard to qualified investments for public entities.

• Adhere to the CFA Institute Code of Ethics and Standards of Professional Conduct.

• Be registered with the Securities and Exchange Commission (“SEC”) as an investment adviser and be in compliance with all applicable notice filing and registration requirements of the Wyoming Secretary of State, including requirements applicable to investment adviser representatives providing services to the City.

• Be either completely independent of any financial institution or securities brokerage firm or fully and continuously disclose any relationships with such financial institution(s) and/or securities brokerage firm(s), and further disclose any commissions, bonuses, or other payments resulting from the firm’s relationship with the City as well as soft dollar arrangements, revenue sharing, referral arrangements, securities lending, and proprietary products.

• Take no possession of City monies or investment securities, nor have access to or control over such monies and/or securities. Account assets must be held in a segregated account with a custodian approved by the City. The investment adviser shall not take custody of

City funds or securities.

• Comply with Wyoming State law and the ordinances and policies of the City of Cheyenne.

• Assist with periodic review of the Investment Policy Statement and Portfolio Guidelines to ensure compliance with Wyoming law, industry best practices, and evolving market conditions.

• Review the present investment management procedures and documentation and propose improvements.

• Assist in developing and implementing investment strategies that will enhance portfolio performance under current and anticipated changes in market conditions within the parameters of the established Investment Policy and the City's cash flow needs.

• Make presentations to the City’s Investment Committees, as needed, to support recommendations relating to investment strategy.

• Manage the City’s investment portfolio with non-discretionary or discretionary authority.

Discretionary authority will be approved specifically on a case-by-case basis. The City is currently open to both types of arrangements. Describe the advantages, disadvantages, governance requirements, and transition process associated with each management approach. Explain your firm's transition process for assuming management of the City's existing investment portfolio, including anticipated timeline, coordination requirements, and potential transaction considerations.

• Provide timely assessments of the market including market reaction to economic events.

• Provide detailed monthly reports which include 1) benchmark comparison, 2) duration, weighted average maturity, 3) sector allocation, 4) unrealized gain/loss, 5) realized income, and 6) compliance summary, in a format acceptable to the City which also includes the following information on each security: par value, cost value, book value, market value, investment activity, earnings, etc.

• Provide quarterly performance reports and attend at least one City Investment

Committee meeting annually to present portfolio performance, market conditions, and investment strategy.

• Manage the City’s portfolio separately with no co-mingling of funds.

• Continuously monitor the credit quality of portfolio holdings and immediately notify the

City of any material downgrade or credit event.

• Assist the City with cash flow forecasting to ensure adequate liquidity while maximizing investment earnings.

• Provide quarterly certification that the portfolio complies with Wyoming statutes and the

City's Investment Policy Statement.

III. ANTICIPATED TIMELINE

BENCHMARKS DATE

Request for Proposal Issued October 30, 2026

1st Legal Advertisement November 4, 2026

2nd Legal Advertisement November 11, 2026

Question Submission Deadline December 11, 2026

Addendum Response Deadline December 17, 2026

Due Date for Proposals (3:00 pm MST) January 8, 2027

City Review of Submitted Proposals, and

Potential Firm Interviews

January 9 – January 20, 2027

Professional Services Agreement finalized with successful Firm

January 21 – January 25, 2027

Investment Advisory Committee Reviews

Recommended Firm

January 26, 2027

City Council Agenda Submission Cutoff February 3, 2027

City Council Referral to Finance

Committee

February 8, 2027

Finance Committee February 16, 2027

City Council Final Approval February 22, 2027

Contract Execution February 23 – March 1, 2027

Contract Awarded (Estimated) March 2, 2027

IV. PROPOSAL SUBMISSION

The City will utilize a two-step process for selection through this solicitation. This process dictates that proposers divide their submittals into two parts: a technical proposal and price proposal. Proposers shall submit/upload their technical proposal and price proposal simultaneously on the date and time specified in this RFP, via the OpenGov e-procurement portal, as follows:

A. Technical Proposal

Upload one (1) Technical Proposal in PDF format through the City’s OpenGov e-

Procurement Portal. Merge all proposal documents into a single PDF file.

B. Price Proposal:

Upload one (1) Price Proposal in PDF format through the City’s OpenGov e-

Procurement Portal. Merge all proposal documents into a single PDF file.

V. SELECTION AND EVALUATION

A. Evaluation Committee

A selection committee consisting of members of the City's Investment Committee(s), City Treasurer's Office staff, and other City representatives or outside advisers, as deemed appropriate by the City, will evaluate all proposals submitted in response to this Request for Proposal. The selection committee will evaluate each proposal based on the criteria and weighted scoring system described below.

B. Evaluation Criteria

The City will evaluate proposals using the following weighted criteria:

CRITERIA DESCRIPTION WEIGHT

Experience with Public

Sector Clients of similar size and structure

Demonstrated experience providing investment advisory services to municipalities or other governmental entities of similar size, complexity, and investment objectives.

Qualifications of investment team

Qualifications, experience, certifications, and stability of the proposed investment professionals assigned to the City's account, including expertise with public fund investments and client service.

Investment philosophy and portfolio management approach

Proposal demonstrates a sound investment philosophy and a disciplined portfolio management approach that aligns with the

City's objectives of safety, liquidity, return, and compliance with

Wyoming law and the City's Investment Policy Statement.

Reporting capabilities and technology

Quality, clarity, and usefulness of investment reporting, performance measurement, technology resources, cybersecurity practices, and ability to provide timely information and customized reports.

Wyoming Public Funds

Knowledge and

Responsiveness

Demonstrated knowledge of Wyoming statutes governing public funds, familiarity with Wyoming governmental entities, and ability to provide responsive service to the City.

References References from similar governmental investment advisory engagements.

Proposal Quality

Proposal is complete, well organized, responsive to the RFP requirements, and demonstrates a thorough understanding of the City's investment objectives and requested services.

Cost Proposed fees are reasonable, competitive, transparent, and represent the best overall value to the City considering the services provided.

Total Possible Points

C. Cost Evaluation

Although each firm's submitted fees will be considered, cost will not be the sole determining factor in the selection process. The City will evaluate each proposal based on the total weighted score, taking into consideration qualifications, experience, investment approach, reporting capabilities, references, and overall value to the City.

The proposal offering the lowest cost will receive the maximum score for the Cost criterion. Remaining proposals will receive proportionately lower scores in accordance with the City’s evaluation methodology.

D. Interviews

The City reserves the right to invite one or more firms to participate in interviews or presentations as part of the evaluation process. Interviews may be used to clarify proposal information, evaluate the firm's qualifications, discuss investment philosophy and proposed services, or obtain additional information necessary for the

City's evaluation.

E. Reservation of Rights

The City of Cheyenne reserves the right to reject any or all proposals, with or without cause; waive informalities or irregularities that do not materially affect the proposal;

request clarification of proposal information; negotiate with one or more proposers;

reissue the Request for Proposal; or take any other action determined to be in the best interest of the City.

The City shall be the sole judge of the qualifications of proposers and the merits of proposals received. Selection will be based on the proposal determined to provide the best overall value to the City, considering all evaluation criteria established in this

Request for Proposal.

F. Public Records

All proposals submitted in response to this Request for Proposal shall become the property of the City of Cheyenne and will be considered public records in accordance with applicable law. Proposers should not include trade secrets or confidential information unless clearly identified and legally protected from disclosure. The City assumes no liability for the disclosure of information that is not exempt from public inspection.

VI. FORMAT OF PROPOSAL

The Technical proposal must include the following components:

A. Organization

• Describe the organization, date founded, and ownership of your firm.

• Describe the experience of the firm in serving as investment adviser for municipalities and other public entities.

• Describe any SEC or regulatory censure or litigation involving institutional business your firm conducts with governmental investors currently or within the past three years.

• Provide copies of the firm's current Form ADV Parts 1 and 2, as filed with the SEC, and documentation demonstrating compliance with applicable Wyoming notice filing and registration requirements.

• Provide audited financial statements for the past three years.

• Provide proof of bonding up to $5,000,000.

• Describe your firm's cybersecurity policies, business continuity planning, disaster recovery capabilities, and procedures for protecting client information.

B. Personnel

• Identify the size of the firm’s staff commitment to the public sector and the credentials of key personnel.

• Identify the investment professionals who would be directly involved in providing services to the City. Describe their relationship to your firm, their responsibilities, their experience in the investment business, and specifically with public sector investment management, and the number of years they have been associated with your firm.

• Confirm whether any of the above personnel have ever been investigated for alleged improper, fraudulent or unfair activities related to the sale of securities. If so, please provide details.

• Explain the firm’s familiarity with Wyoming State Statutes as they relate to investment of public funds.

C. Investment Management Approach

Please address each of the following:

• Outline the steps your firm would take to ensure the City's objectives of safety, liquidity, return, and community investment are achieved while maintaining compliance with Wyoming law and the City's Investment Policy Statement.

• Describe your firm's experience in developing investment policies and portfolio strategies for governmental operating funds.

• Describe your firm's investment philosophy and process, including the research and methods used for security selection, maturity structure, diversification, and risk management.

• What are the primary strategies your firm uses to add value to investment portfolios?

• Describe your firm's procedures for portfolio review, performance monitoring, and ongoing communication with clients.

• Describe how you would invest a municipal portfolio with the following objectives:

preservation of principal, sufficient liquidity for operating needs, and enhanced long-term returns within Wyoming statutes and the City's Investment Policy

Statement. Explain your philosophy regarding duration, credit quality, diversification, portfolio structure, and portfolio rebalancing.

• Describe your firm's approach to rebalancing a diversified portfolio that includes both fixed-income and equity investments. Include how often rebalancing is evaluated, the factors considered, and the process for communicating recommendations to the City.

• Provide gross investment returns for your governmental fixed-income strategy or comparable composite relative to the Bloomberg U.S. Government/Credit 1–3

Year Index or another appropriate benchmark. For diversified strategies, provide performance relative to the benchmark(s) used and explain their appropriateness.

• Describe how your firm defines the investable universe represented by the

Bloomberg U.S. Government/Credit 1–3 Year Index.

• Describe how your investment strategy is expected to perform during varying market conditions, including rising and declining interest rate environments, widening credit spreads, and bull and bear equity markets.

• Describe your firm's approach to asset allocation and how you determine the appropriate balance between fixed-income and equity investments while maintaining the City's objectives of safety, liquidity, and long-term return.

D. Reporting

• Describe and submit samples of standard reports that would be provided and their frequency and to what extent custom reporting is available. Include the methods and formulas used to calculate yield and performance.

• Describe the firm’s online reporting capabilities and client portal, if available.

E. References

• Provide at least five references from governmental clients of similar size and complexity, including client name, contact person and title, telephone number, email address, and services provided.

The Price proposal must include the following component:

F. Fees

• Provide a complete fee schedule describing the proposed compensation for services, whether structured as a flat annual fee, an asset-based fee, a per-trade fee with an annual cap, or another arrangement. The fee proposal must separately identify, as applicable:

o Asset-based fees o Fixed annual fees o Transaction costs o Custody costs o Trading spreads o Consulting fees o Indirect compensation o All other sources of compensation

VII. AWARD OF CONTRACT

The initial term of the contract will be for a 4-year period, with 2 possible one-year extensions beyond that period.

The selected adviser shall be required to sign a professional services agreement in the form provided by the City of Cheyenne, which will incorporate this RFP and the proposal submitted by that adviser and agree to the terms and conditions therein. Any violation of the provisions of the professional services agreement by the adviser may be cause for termination.

The selected adviser shall provide the City a Certificate of Insurance, in accordance with the requirements of the professional services agreement (Draft / Sample Agreement Included).