RFQ_2627-004_Broker-Dealer_Questionnaire_&_Certification_-_City_of_Redondo_Beach.pdf
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- Solicitation number
- RFQ#2627-004
- Issued by
- Los Angeles County, California
About this file
This is a Request for Questionnaire (RFQ) issued by the City of Redondo Beach, California, Office of the City Treasurer, seeking broker/dealer firms to invest proceeds from the voter-approved Measure FP General Obligation Bonds. The $93,350,000 bond measure, approved on November 5, 2024, will fund the reconstruction of two fire stations and modernization of police facilities. Responses are due electronically through the City's OpenGov procurement portal by Friday, October 9, 2026, at 2:00 PM PDT. The City anticipates issuing the bonds in early November 2026 and will subsequently invest the proceeds via a competitive shopping process aligned with the draw schedule. Selected broker/dealers will be added to the City's Approved List and may be utilized for future rebalancing activities. Broker/dealers will not operate under an exemption to the Municipal Advisor Rule, as the City will not be engaging an independent registered municipal advisor.
Selected firms must complete and sign a Certificate of Receipt and Understanding acknowledging the City's Investment Policy, which will govern permissible investments for the bond proceeds. The RFQ requires comprehensive responses addressing firm qualifications, including Federal Reserve Primary Dealer status, California licensing, FINRA registration and SEC Rule 15c3-1 compliance, political contribution disclosures, account representative credentials, clearing/settlement arrangements, experience with California public sector clients and debt issue investing, trading processes and capabilities, compliance systems, references from up to five California public entities, sample transaction documentation, regulatory history, and submission of FOCUS reports and audited financial statements. Responses will be reviewed by City staff, and references will be contacted. All questions and clarifications must be submitted through the City's procurement portal, with Sarah Meacham, Chief Deputy City Treasurer, serving as the staff contact.
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Text version
CITY OF REDONDO BEACH
OFFICE OF THE CITY TREASURER
RFQ#2627-004
BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION
DUE FRIDAY, OCTOBER 9, 2026, 2 :00 PM PDT
The City of Redondo Beach (“City”) is seeking responses from broker/dealers interested in working with the City to invest the proceeds of its upcoming Measure FP General Obligation Bonds (“the bonds”). The City’s Measure FP Project is a November 5, 2024 voter-approved $93,350,000 general obligation (GO) bond measure to fund the reconstruction of two fire stations and the modernization of police facilities to enhance public safety operations.
Broker/dealers transacting with the City to invest Measure FP proceeds will not have an exemption or exception to operate under the Municipal Advisor Rule as the City will not be utilizing an independent registered municipal advisor (IRMA) to advise on investing the proceeds.
The City will review all responses received and follow up with references.
Responses shall be submitted electronically through the City’s procurement portal hosted by OpenGov on the City’s website:
https://procurement.opengov.com\portal\redondo
Please answer all questions completely.
Based on the City’s review, a select number of firms will be added to the City’s Approved List of Broker/Dealers. Selected broker/dealers will be asked to complete and sign a certificate of receipt and understanding (attached) of the City’s Investment Policy as the Policy will serve as the Permissible https://procurement.opengov.com/portal/redondo
Investments for the bonds. The City’s current Investment Policy is available on the City Treasurer’s website:
https://www.redondo.org/departments/city_treasurer/index.php.
The City anticipates issuing the bonds in early November 2026 and investing the proceeds via a competitive shopping process aligned with the draw schedule shortly thereafter. We anticipate using the selected broker/dealers for any future rebalancing.
All questions and requests for clarification or additional information regarding this RFQ need to be submitted through the City’s online procurement portal hosted by OpenGov on the City’s website at the following link:
https://procurement.opengov.com/portal/redondo
Staff Contact for this RFQ:
Sarah Meacham Chief Deputy City Treasurer Sarah.meacham@redondo.org
Questionnaire
1. Please provide the Company Name, corporate address, address of other offices that may be local to the City, as well as the name and contact information (incl. phone and email) for the person who would be the Primary Account Representative to the City.
2. Is the firm a Primary Government Securities Dealer listed with the Federal Reserve Bank of New York?
3. Is the firm licensed to do business in California? Please provide evidence of the firm’s State of California licensing.
4. Is the firm currently registered with FINRA and in compliance with SEC Rule 15c3-1 as stipulated by FINRA? Please provide supporting documentation of the firm’s FINRA registration and compliance with SEC Rule 15c3-1.
https://www.redondo.org/departments/city_treasurer/index.php https://procurement.opengov.com/portal/redondo
5. Has the firm made any political contributions to any elected official of the City Council of the City of Redondo Beach, or any candidate for those elected offices in am amount exceeding the limitations of Rule G- 37 of the Municipal Securities Rulemaking Board?
6. Have there been any material changes in the firm’s legal structure in the past three years or are any anticipated in the coming 12 months?
7. Please provide resumes and FINRA reports including CRD numbers for each account representative. Please provide evidence of the current licensing status of the City’s representatives.
8. Does the firm use a third-party entity for clearing/settlement services?
IF yes, please provide the name of the service, how long the firm has used it, and whether any change of clearing/settlement provider is being considered.
9. Please describe the experience of the firm serving the California public sector and recent trading volumes. Please identify any account type concentration or focus other than those with public entities.
10. Please describe the experience of the firm investing the proceeds of debt issues and related trading volumes over the past 5 years.
11. Please describe the firm’s trading processes.
12. How do you assist customers in identifying the best relative value?
13. Which markets could the firm offer the City access to? (Treasury, Federal Agency, CP, corporate notes, etc…)
14. Describe research services provided to customers.
15. Please describe what internal compliance systems and processes the firm has in place to prevent securities that are not permitted or appropriate to be sold to the firm’s public entity client’s?
16. Provide contact information and a brief explanation of the services provided for up to 5 California public entity references preferably including cities and client the firm has assisted with investing bond proceeds.
17. Please provide samples of all reports, confirmations, and documentation we would receive as a client upon completing a securities transaction with the firm.
18. Have the proposed representatives or the firm been censured, sanctioned, or disciplined by a regulatory, state, or federal agency for improper or fraudulent activities related to the sale of securities within the last five years. If yes, please provide an explanation.
19. How does the firm ensure the Rules of Fair Practice are applied to its customers?
20. Additionally, please provide:
a. Financial and Oversight Combined Uniform Single (FOCUS), as available
b. Audited financial statement (if included in FOCUS report, please do not include again)
c. Trading Resolution
CITY OF REDONDO BEACH
Certificate of Receipt and Understanding of the City’s Investment Policy
Please return a completed and signed copy to the City Treasurer’s office by email to sarah.meacham@redondo.org.
By signing below, I ________________________ (Name) hereby certify on behalf of ________________________ (Company) that:
1. I have reviewed the Investment Policy governing the City of Redondo Beach and it’s permitted investments for the proceeds of the Measure FP GO Bond, and that I understand its content. I am not expected to enforce provisions concerning compliance with maturity, sector, or issuer percentage limitations. I am expected to offer only those investments that qualify under the City’s credit requirement as directed in the Policy. The responsibility for overall portfolio structure and composition remains with the City.
2. I further certify that I have not made, nor do I intend to make, political contributions to any candidate for any City of Redondo Beach elective office.
Signed _____________________
Date _____________________
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