City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council and Redevelopment Agency review and approve
the release of a Request for Proposal (RFP) for Professional Review of the City’s
Investment Policy, Practices and Procedures.
BACKGROUND:
During the April 2006 election, Culver City voters approved a change in the City
Charter whereby both the City Treasurer’s and City Clerk’s elected status will cease
as of April 9, 2008. Under the provisions of the current City Charter, the elected City
Treasurer’s responsibilities remain those in effect under the prior Charter, which
includes the responsibility for the investment of the City and Redevelopment
Agency’s funds.
The City Council approved the creation of a Finance Department with a Chief
Financial Officer (CFO) as head of the department, to combine the functions
currently performed in the City Treasurer’s Office and the City Controller’s Office.
The Chief Financial Officer will assume the duties of the City Treasurer on April 9,
2008, which will include the investment activities for both the City and
Redevelopment Agency.
In preparation of this transition, the City is seeking proposals from qualified
California local government agency investment portfolio management firms to
undertake a complete review of the City’s investment program by providing a
thorough assessment of the City’s investment policy, practices and procedures.
Meeting Date: 12/17/07 Item Number: J-4
AGENDA ITEM: JOINT ITEM before the City Council and Redevelopment Agency:
Review and Approve the Release of a Request for Proposal for Professional
Review of the City’s Investment Policy, Practices and Procedures.
Contact Person/Dept.: Mary V. Noller
Budget & Finance
Phone Number: (310) 253-6012
Fiscal Impact: Yes [ ] No [ X ] General Fund: Yes [ ] No [ X ]
Public Hearing: [ ] Action Item: [X] Attachments: [ X ]
Public Notification:
Master Notification List 12/12/07;
Department Approval:
Jeff Muir (12/10/07)
City Attorney Approval:
Carol Schwab (by H. Baker) (12/11/07)
Fiscal Impact Review:
Jeff Muir (by M. Noller) (12/11/07)
City Manager Approval:
Jerry B. Fulwood (12/12/07) City of Culver City, California
City Council Agenda Item Report
This is a common practice when transitioning responsibilities regarding the custody,
administration, and investment of public funds.
DISCUSSION:
The City is seeking professional services from qualified firms to review and make
recommendations regarding, but not limited to: the City Investment Policy; Analysis
of Portfolio and Structure Compared to Stated Objectives; Use of Best Practices in
Administration of Portfolio; and Recommendations for Modifications to the Policy
and/or Procedures. The attached RFP describes the expectations, deliverables,
evaluation and selection process, qualification and approach requested to be taken
by the selected firm.
FISCAL ANALYSIS:
There is no fiscal impact associated with the release of the RFP. Staff will request
the City Council and Redevelopment Agency to approve an appropriation for these
services at the time the contract is brought back to be awarded in February.
ATTACHMENTS:
1. Request for Proposal for Professional Review of the City’s Investment Policy,
Practices and Procedures.
MOTION:
That the City Council:
Review and approve the release of the RFP for Professional Review of the City’s
Investment Policy, Practices and Procedures.
That the Redevelopment Agency:
Review and approve the release of the RFP for Professional Review of the City’s
Investment Policy, Practices and Procedures.
MEETING DATE: December 17, 2007
AGENDA ITEM: Review and Approve the Release of a Request for Proposal
for Professional Review of the City’s Investment Policy,
Practices and Procedures.
ATTACHMENTS
Pages
1. Request for Proposal ........................................................... 1 - 7
CITY OF CULVER CITY
REQUEST FOR PROPOSAL
REVIEW OF INVESTMENT POLICY,
PRACTICES AND PROCEDURES
INTRODUCTION
The City of Culver City is requesting proposals from qualified California local
government agency investment portfolio management firms to undertake a complete
review of the City’s investment program by providing a thorough assessment of the
City’s investment policy, practices and procedures.
Please note the RFP does not seek third party management of the City portfolio. This
is an effort to obtain an independent analysis of the current operations and policy, and
seeks input on best practices and options available for management of public funds.
SECTION I
BACKGROUND
The City of Culver City encompasses five square miles, has a residential population of
approximately 40,790, and a day time population of approximately 60,000. The City
Charter was revised by voters in April 2006. As of July 1, 2006, Culver City now
operates under a City Council/City Manager form of government rather than the City
Council/Administrator form that it previously operated under since 1947. This allows the
City Council to focus on making policy decisions while the day-to-day functions are
under the direction of the City Manager. Members of the City Council are elected for
alternating four-year terms, with the Mayor being selected annually by the Council from
among its members.
The City Manager is a hired position, and currently, the City Treasurer and City Clerk
are elected. Due to changes in the Charter, both the City Treasurer’s and City Clerk’s
elected status will cease as of April 9, 2008. The City Council approved the creation of
a Finance Department with a Chief Financial Officer (CFO) as head of the department,
to combine the functions currently performed in the City Treasurer’s Office and the City
Controller’s Office. Recruitment for the new Chief Financial Officer was completed, and
the new candidate came on board in December 2007. The Budget and Finance
1Division and the Purchasing Division are part of the City Controller’s Officer which was
previously assigned to the City Manager’s Office. These divisions now report to the
new CFO with the formation of the new Finance Department.
As the City is now under a new guidance of government per the changes of the Charter
which were voted in by the electorate in the April 2006 election, the City of Culver City
would like to have a full, in-depth review of its investment policies, portfolio and
procedures, prior and up to the April 2008 election when the oversight and direction of
the investment process by the elected City Treasurer will cease and will forthwith fall
under the oversight and direction of the Chief Financial Officer.
SECTION II
RFP PROJECT OVERVIEW
The City is releasing this Request for Proposal (RFP) in order to obtain an independent
assessment of its Investment Portfolio and Practices. The City is seeking professional
services from qualified firms to review and make recommendations regarding, but not
limited to: City Investment Policy; Analysis of Portfolio and Structure Compared to
Stated Objectives; Use of Best Practices in Administration of Portfolio; and
Recommendations for Modifications to the Policy and/or Procedures.
The final day of review of the City’s investment portfolio, in anticipation of the turnover in
oversight and direction of the investment program from the elected City Treasurer to the
Chief Financial Officer, shall be April 8, 2008.
The City is not seeking proposals for the independent management of City funds at this
time.
SECTION III
A. PROPOSAL DOCUMENTS/QUALIFICATIONS
The proposal should include the following information:
1. The names and resumes of staff expected to work on this project. This includes
the role they would play in this engagement, their related experience, etc.
2. Reference related work that best illustrates your qualifications for this project.
Work shall be similar in nature and scope to this RFP and performed for a
government entity.
3. A written description of the methods you will utilize to successfully execute this
project. A well-conceived work plan and a full description of major tasks and
2 subtasks shall be included that address all items covered in the Scope of
Services. It shall also establish that the Consultant understands the City’s
objectives and work requirements.
4. A firm fixed price cost proposal, including a copy of your firm’s fee schedule. It is
appropriate to include any breakdown of major components and/or milestones.
5. Contact names and phone numbers for at least three public agency references.
6. Exceptions, changes, revisions, or comments to any element of the standard
agreement or insurance requirements.
7. Proposed project scheduled indicating dates for deliverables, critical meetings,
and the completion of each task.
8. Verification of firm’s ability to act in a neutral capacity as an independent advisor.
If there is a relationship to subsidiary corporations or other business partners, the
nature and impact of the relationship should be fully disclosed as it relates to the
proposed scope of work.
9. All proposals must state the period for which the proposal shall remain in effect.
Such period shall not be less than 60 days from the proposal date. By submitting
the proposal it is expected that the firm has carefully read and fully understands
the information provided by the City to serve as the basis for submission of the
proposal.
10. Please list any other pertinent information you would like the City of Culver City
to consider in making the selection.
B. DEADLINE AND SUBMITTAL OF PROPOSAL
Please submit one (1) original and five (5) copies of the proposal upon submittal.
Proposals marked “Proposal for Investment Audit Review” shall be received at the City
Clerk’s Office until 3:00 PM PST on Friday, January 11, 2008. All proposals must be
sent to the following address:
The Office of the City Clerk
City of Culver City
9770 Culver Boulevard
Culver City, CA 90232
Proposals may be mailed or hand delivered, and the format is optional at the discretion
of the Consultant. The City will not pay for any costs incurred in preparation and
submission of proposals or in anticipation of a contract.
3Any proposal submitted after the deadline shall not be considered. A separate letter of
transmittal shall be addressed to Mary V. Noller, Budget Division Manager, and must
accompany each proposal. Failure to submit copies of the proposal in the prescribed
manner shall render the submittal package ineligible for consideration.
C. ECONOMY OF PREPARATION
Proposals shall be prepared simply and economically, providing a straight-forward,
concise description of vendor capabilities to satisfy the requirements of the RFP. The
submission of technical literature shall be prepared in a simple and easy-to-read format.
D. ADDENDA TO RFP
The City reserves the right to make such changes in the RFP as deemed appropriate.
Any and all changes to the RFP shall be made by written addendum and issued by the
City to all prospective bidders who have been issued or obtained copies of the RFP
from the City.
E. ISSUING OFFICE
This RFP is issued by the City. The issuing office is the point of contact regarding this
matter. All correspondence and written communications pertaining to this RFP should
be directed to the below named person. To ensure that written requests are received
and answered in a timely manner, e-mail correspondence is preferred. During the
proposal inquiry period answers will be summarized and distributed to all firms without
identifying the original source of the question. Firms should rely only on written
statements issued by the below named person:
Mary V. Noller, Budget Division Manager
City of Culver City
9770 Culver Boulevard
Culver City, CA 90232-0507
Phone: (310) 253-6012
E-mail: mary.noller@culvercity.org
F. SUPPLEMENTS TO PROPOSAL
If the evaluation of any proposal indicates a minor non-compliance or variance with the
RFP, the City may make a written request to the bidder for a supplement to the
proposal. Such a request will attempt to identify the non-compliance or variance, may
involved additional information, and will establish a date by which the supplement to the
proposal must be submitted. If so requested, the bidder may submit a supplement to
the proposal that is responsive to the request within the time period specified in the
request. The City shall evaluate the supplement in conjunction with the proposal. Any
supplement to the proposal that is accepted and approved by the City shall thereafter
4 be deemed an integral part of the proposed submittal. Except as provided herein,
proposals may not be changed, modified or withdrawn.
G. PRE-PROPOSAL INQUIRY PERIOD
Consultants are encouraged to review the complete RFP and submit in writing any
clarifying questions or information required to fully respond to the RFP. City Staff will
distribute responses to all firms invited via e-mail, without identifying the original source
of the question. In order to allow adequate time, Consultants are encouraged to submit
any questions or clarifications by Monday, January 7, 2008.
H. VALIDITY PERIOD
Each proposal submitted to the City shall be deemed valid for a period of at least ninety
(90) days and shall contain a statement to that effect.
I. RIGHT OF REJECTION BY THE CITY
The City of Culver City (City) reserves the right to reject and or all proposals. The City
reserves the right to award this contract to the firm that best meets the requirements of
the RFP, and not necessarily to the lowest bidder. The City reserves the right to reject
any or all proposals prior to execution of the contract, with no penalty to the City.
SECTION IV
SCOPE OF SERVICES
The City of Culver City is requesting proposals from qualified California local
government agency investment portfolio management firms to undertake a complete
review of the City’s investment program by providing a thorough assessment of the
City’s investment policy, practices and procedures.
It is envisioned that the Consultant will obtain information from City records as well as
from interviews of Staff involved in the investment process. A Draft report will be
presented to City Management Staff for review and input, and a Final report will be
presented to the City Council for their acceptance.
The selected investment/portfolio firm will structure a report that will at a minimum assist
City Staff in assessing the following areas, among others.
1. Review: Review the City’s investment policy and general internal practices in
placing investments. This is envisioned to include the gathering of information
from interviews with City staff assigned with duties related to the investment of
funds. The information collected should include a review of all stages from cash
flow projections through the selection of specific investments. The consultant
5should also review current reporting to determine if these reports provide sufficient
information of efficient management of the investments in a manner consistent and
in compliance with all California state reporting requirements and GASB standards.
2. Identify Investment Objectives: As part of the information gathering, meet with key
management staff to ascertain the priority of investment objectives for the portfolio.
3. Historical Performance Review: Review in summary form financial information
related to the City’s historical portfolio performance (four [4] years maximum) and
types of investments compared to stated policy objectives.
4. Performance/Effectiveness Review: Review the City’s methods used to evaluate
performance of the portfolio and the effectiveness of the strategies currently in use.
5. Policy/Procedure Recommendations: Identify any specific policy changes
necessary for compliance with State law. The Consultant shall also identify any
best practices or procedural changes that would enhance the portfolio
management at the City. To the extent that there is a cost to implement the
change, Consultant shall work with Staff to identify the range of potential costs.
6. Identify and Present Strategies: Consultant shall identify strategies to assure that
the City investment objectives are aligned with its policy and procedures. This may
include recommendations in the following areas: portfolio structure and
diversification (types of securities and investments); call risk; liquidity and cash flow
targets; duration targets; establishment of a specific performance benchmark;
analysis and training needs; etc. These recommendations shall take into account
the City’s risk tolerance and investment goals as well as staff resources available.
7. Other: Review the City’s custodial and safekeeping arrangements currently
practiced.
8. Final Report: Twenty (20) copies of the final report are requested to be submitted
to the City upon completion of the Investment Audit.
The City requests report of findings and recommendations to coincide with the Chief
Financial Officer’s assumption of treasury duties and responsibilities from the elected
City Treasurer. Thus, review of the investment portfolio should conclude on April 8,
2008.
6 SECTION V
A. PROJECT DATES AND DEADLINES
RFP Issued Tuesday, December 18, 2007
Deadline for Submitting Written Questions Monday, January 7, 2008
Deadline for Receipt of Proposals Friday, January 11, 2008, by 3:00 PM PST
Finalist Interviews
Week of January 22, 2008 (We will be closed
Monday, January 21, 2008)
City Council Approval/Contract Award Monday, February 4, 2008
Conclusion of Review Process By close of business Tuesday, April 8, 2008
B. REVIEW AND SELECTION PROCESS
Contact with City staff is encouraged up to the submittal of the proposal. After the
proposal is submitted, no further contact is permitted. The City contact is Mary V.
Noller, Budget Division Manager, who may be contacted at (310) 253-6012 or by e-
mailing mary.noller@culvercity.org.
The City reserves the right to make the selection based on its sole discretion. A
subcommittee City Staff will evaluate the proposals provided in response to this RFP,
which will be rated based on the needs of the City, including, but not limited to, the
following criteria:
1. Quality and completeness of the proposal.
2. Consultant’s experience, including the experience of staff to be assigned to the
project, as well as the Consultant’s engagements of similar scope and complexity.
3. Consultant’s ability to schedule and efficiently perform the work.
4. Consultant’s prior record of performance with the City or others.
5. Cost of services.
Final proposals will be selected from those organizations and ranked based on their
technical qualifications, approach score and price. Based upon this review, finalist firms
will be invited to participate in an interview process to be scheduled the week of January
22, 2008. At the election of the City, the interview may be via telephone or in person to
allow Consultants the ability further explain their proposal to the City Council Budget
and Audit Subcommittees, the City Manager, and City staff. Based upon input from this
review process, a recommendation will be made to the City Manager and the full City
Council.
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