Investment Advisory Proposal

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					            2007
    Request for Proposal
            for
Investment Advisory Services


 County of San Bernardino
    Treasurer’s Office

                   1853




          County of San Bernardino
County of San Bernardino
Treasurer-Tax Collector / Public Administrator’s Office
RFP for Investment Advisory Services



   I.   INTRODUCTION

        A. Background

           The County of San Bernardino (“County”) is inviting proposals from qualified investment
           advisory firms interested in providing investment advisory services to the County Treasurer-
           Tax Collector / Public Administrator. The Treasurer-Tax Collector / Public Administrator has
           statutory responsibility for the collection, deposit and investment of all funds held in the
           County Treasury Pool (“Pool”). The Pool includes monies entrusted to the County Treasurer
           by the County of San Bernardino, school districts, community college districts and certain
           special districts within the County. State law requires that all operating monies of these
           agencies be held by the County Treasurer. Additionally, a small amount of monies in the
           County pool (less than $100 million) represents discretionary deposits made by other
           governmental agencies.

           As of June 30, 2007, the book value of the County pool was $4.1 billion (including accrued
           interest). Approximately one-fourth of the County pool is attributable to the County General
           Fund, with the remainder of the balance comprised of other County funds, school districts
           and special districts. Monies held in the County pool are subject to the County’s Investment
           Policy, as authorized by various sections of the Government Code of California. A copy of
           the County Treasurer’s Investment Policy is attached as Appendix A.

           Staffing of the Treasury Division includes the County’s Cash Manager/Investment Officer
           and Assistant Cash Manager/Investment Officer, both of whom conduct all trades of
           securities for the Pool, as well as support staff.

           The selected Investment Advisor will assist and supplement the County’s staff by providing
           technical and strategic advice to staff in managing the Pool’s portfolio. The selected
           Investment Advisor will provide advice only and will not manage funds. In addition, the
           Investment Advisor will provide accounting services to the Pool, including preparation of a
           monthly portfolio report including analytics, which is distributed to the Board of Supervisors,
           Treasury Oversight Committee, rating agencies and others on a monthly basis.

        B. Minimum Qualification Requirements

           Firms must:

           1. Be an independent Investment Advisor, registered as such with the Securities
              and Exchange Commission (SEC) or the State of California, and not a
              broker/dealer. In addition, firms responding to this Request for Proposal
              (hereafter “Proposer”) must hold all necessary licenses.




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County of San Bernardino
Treasurer-Tax Collector / Public Administrator’s Office
RFP for Investment Advisory Services

           2. Have a minimum of five (5) years experience in providing the services requested
              to public agencies in an investment advisor capacity. If the firm has been in
              business for less than five years, the experience of its principals may be used to
              meet this requirement. Detailed information regarding experience in these areas
              must be provided. In addition, Proposer is required to submit five (5) references
              for which these services have been performed within the last three (3) years.

           3. Have no record of unsatisfactory performance as evidenced by complaints filed
              with the SEC, National Association of Securities Dealers (NASD) or any other
              federal or state agencies with jurisdiction over the services provided by the firm.

           4. Disclose if firm has any prior or pending litigation, either civil or criminal, including
              complaints or actions by any regulatory agencies, in which the Proposer, any of
              its partners, members or employees is or has been involved within the last ten
              (10) years. If none, then so state.

           5. Have no deficiencies or unsatisfactory performance on any past County
              contracts.

           6. Meet all other presentation and participation requirements listed in this RFP.

       C. Term of Contract

           The term of the contract shall be for three (3) years with an option to terminate upon
           30 days’ notice by the County Treasurer.

       D. Contact

           All questions relating to this RFP are to be submitted via correspondence, fax, or e-
           mail to:

                              Mr. Craig Hughes
                              Cash Manager/Investment Officer
                              County of San Bernardino Treasurer’s Office
                              172 W. Third Street, First Floor
                              San Bernardino, CA 92415-0360
                              (909) 387-6790 Facsimile
                              chughes@ttcpa.sbcounty.gov

                                   nd
           During the proposal a evaluation process, the individual identified above is the
           sole contact point for any inquiries or information relating to this RFP. Any violation
           of this procedure may be grounds for disqualification of the Proposer. It is the
           responsibility of the Proposer to ensure that the RFP responses arrive in a timely
           manner.

       E. Proposal Submission Deadline

           All proposals must be received at the address listed above no later than 3:00
           p.m., on Friday, November 16, 2007. Facsimile or electronically transmitted



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County of San Bernardino
Treasurer-Tax Collector / Public Administrator’s Office
RFP for Investment Advisory Services

           proposals will not be accepted since they do not contain an original signature.
           Postmarks will not be accepted in lieu of actual receipt. Late or incomplete
           proposals will not be opened and will not be considered.




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County of San Bernardino
Treasurer-Tax Collector / Public Administrator’s Office
RFP for Investment Advisory Services



   II. PROPOSAL TIMELINE

       The timeline below is subject to change and is provided on an informational basis only to
       Proposers.

         Release of RFP                        Late October, 2007
         Deadline for Proposals                November 16, 2007
         Completion of Initial Review          November 21, 2007
         Interviews of Short-Listed Firms      Late November / early December, 2007
         Tentative Date of Notification of     Week of December 10, 2007
         Award


   III. PROPOSAL CONDITIONS

       A. Contingencies

           This Request for Proposals (RFP) does not commit the County of San Bernardino to
           award a contract. The County reserves the right to accept or reject any or all
           proposals or waive irregularities if the County determines it is in the best interest of
           the County to do so.

       B. Acceptance or Rejection of Proposals

           Proposals shall remain open, valid and subject to acceptance anytime up to one year
           after the proposal opening date and time. The County realizes that conditions other
           than lowest cost are important and will award contract(s) based on the proposal(s)
           that best meet the needs of the County.

       C. Modifications

           The County reserves the right to issue addenda or amendments to this RFP.

       D. Proposal Submission

           To be considered, all proposals must be submitted in the manner set forth in this
           proposal. It is the Proposer’s responsibility to ensure that its proposal arrives on or
           before the specified time.

       E. Incurred costs

           This RFP does not commit the County to pay any costs incurred in the preparation of
           a proposal in response to this request and Proposer agrees that all costs incurred in
           developing its proposal are the Proposer’s responsibility.




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County of San Bernardino
Treasurer-Tax Collector / Public Administrator’s Office
RFP for Investment Advisory Services

       F. Negotiations

           The County may require the firms selected to participate in negotiations, and to
           submit cost, technical, or other revisions of their proposals as may result from
           negotiations.

       G. Final Authority

           The final authority to award contracts as a result of this RFP rests solely with the
           County of San Bernardino Board of Supervisors.

IV.    SCOPE OF SERVICES TO BE PERFORMED

       A. County Treasury Pool

           The San Bernardino County Pool consists of the pooled monies held by the County
           Treasurer on behalf of the County, school districts, community college districts, and
           certain special districts within the County. As of June 30, 2007, the book value of the
           County pool was $4.1 billion (including accrued interest).

           Management of the Pool

           It is the policy of the Treasurer to invest public funds in a manner which will preserve
           the safety and liquidity of all investments within the County investment pool while
           obtaining a reasonable return within established investment guidelines. Accordingly,
           pursuant to our County Investment Policy, the Treasurer’s Office is guided by the
           following principles, in order of importance

               1. Safeguarding of investment principal
               2. Maintenance of sufficient liquidity to meet daily cash flow requirements
               3. Achievement of a reasonable rate of return consistent with the above
                  objectives

           The Treasury Pool is actively managed in accordance with the California
           Government Code, the Treasurer's Statement of Investment Policy, and internal
           investment guidelines. The Investment Policy is reviewed annually by the County's
           Treasury Oversight Committee and approved by the County Board of Supervisors.
           The Treasurer’s Office uses the following investment strategies in managing the
           Pool:

                   •   Laddered maturities
                   •   Yield curve analysis
                   •   Spread analysis
           Ratings

           The Pool is presently assigned the following ratings:



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County of San Bernardino
Treasurer-Tax Collector / Public Administrator’s Office
RFP for Investment Advisory Services

                   •   Standard & Poor’s Ratings Group - AAAf/S1+
                   •   Moody's Investors Service – Aaa/MR1
                   •   Fitch, Inc. - AAA/V1+

           Pool Composition

           The pool pursues its objectives by investing in a diversified portfolio of high-quality
           securities in accordance with State law, which includes U.S. Treasury and Agency
           securities, commercial paper, certificates of deposit, corporate medium term notes
           and repurchase agreements with highly rated counterparties.

           The County Treasurer’s eligible broker/dealer list contains fourteen firms, eleven of
           which are primary dealers. The County Treasurer believes in a conservative
           philosophy regarding credit issues for commercial paper, corporate notes and
           negotiable certificates of deposit. Treasurer’s Office staff uses a short pre-approved
           issuer list of commercial paper issuers and banks for holders of negotiable
           certificates of deposit. The pool seeks to maintain an effective duration of between
           0.75 and 1.00, which is accomplished by laddering maturities to both meet cash flow
           needs and generate a reasonable rate of return.

           Portfolio information for the Pool is available on the County Treasurer-Tax Collector’s
           website at www.mytaxcollector.com.

           Computer Software

           The Treasurer’s Office uses Bloomberg for portfolio analytics and trading and
           Sympro software for portfolio accounting. The County’s custodial bank is Bank of
           New York Mellon.

       B. Scope of Services

           This section provides a general listing of services to be provided. The
           selected Investment Advisor will assist and supplement the County’s staff by
           providing technical and strategic advice to staff in managing the Pool’s
           portfolio. The selected Investment Advisor will provide advice only and will not
           manage funds. The Investment Advisor will:

           1. Assist in the review of the County’s Investment Policy as needed
           2. Serve as Investment Advisor for the County Treasurer in the following
              areas:
               a. At least once per year, review the County’s historical cash flow data
                  and investment trends to review and provide recommendations
                  regarding the County’s target effective duration.
               b. On a biweekly basis, based on historical cash flow data and liquidity
                  requirements, in conjunction with County staff, recommend target cash
                  flow maturities by month from 1   -12 months. Recommend targeted



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County of San Bernardino
Treasurer-Tax Collector / Public Administrator’s Office
RFP for Investment Advisory Services

                   maturities between 1 and 5 years’ maturity to match the County’s
                   targeted duration.
               c. Prepare a biweekly report containing strategic investment advice to
                  staff to include a market commentary, review of macroeconomic
                  trends, review of spreads for various sectors, and specific strategic
                  advice (including the recommendations in section b) regarding
                  management of the portfolio.
               d. To be available to answer questions of County staff on an as-needed
                  basis
           3. Provide daily spreadsheet reports via e-mail to the County Treasurer’s
              Office to include the following items:
               a. Comparison of recommended monthly maturity targets to actual
                  maturities, and chart of same
               b. Calculation of Pool duration (effective duration, duration to call, and
                  duration to maturity) to targeted duration
               c. Compliance monitoring by asset class, issuer, maturity, etc. and chart
                  of same
               d. Historical chart of Pool’s daily or weekly effective duration
           4. Be available to attend meetings of the Treasury Oversight Committee (no
              more than four times per year)
           5. Provide two days per year of structured training to County Treasurer staff
              at consultant’s or county’s site
           6. Assist the County Treasurer’s Office in its presentations to the rating
              agencies
           7. Advise the County Treasurer staff in the management of broker and bank
              relationships
           8. Advise the County Treasurer staff in credit analysis regarding security
              issuers
           9. Assist County Treasurer staff, as required, in the selection of new brokers
              (no more than once per year)
           10. Prepare a monthly portfolio report, satisfactory to the rating agencies, to
               the County Treasurer for distribution to other agencies, which includes the
               following items:
               a. Account statements including market and book values of all securities
               b. Analytics of the portfolio
               c. Horizon analysis (“shock testing”) of the portfolio for interest-rate
                  changes

           The above list is not meant to constitute an exhaustive list of duties. The
           contract negotiated with the firm selected may include other services.



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County of San Bernardino
Treasurer-Tax Collector / Public Administrator’s Office
RFP for Investment Advisory Services

           Proposers are also invited to describe other services or functions that they
           would recommend to the County Treasurer-Tax Collector.



   V.      PROPOSAL SUBMISSION

           A. General

               1. All interested and qualified Proposers are invited to submit a proposal
                  for consideration. Submission of a proposal indicates that the
                  Proposer has read and understands this entire RFP, to include all
                  appendixes, attachments, exhibits, schedules, and addendum (as
                  applicable) and all concerns regarding this RFP have been satisfied.

               2. Proposal must be submitted in the format described below. Proposals
                  are to be prepared in such a way as to provide a straightforward,
                  concise description of capabilities to satisfy the requirements of this
                  RFP. Expensive bindings, colored displays or promotional materials,
                  are neither necessary nor desired. Emphasis should be concentrated
                  on conformance to the RFP instructions, responsiveness to the RFP
                  requirements, and on completeness and clarity of content.

               3. Proposals must be complete in all respects as required in this section.
                  A proposal may not be considered if it is conditional or incomplete.

               4. All proposals and materials submitted become the property of the
                  County. All proposals received are subject to the “California Public
                  Records Act”.

                   If any Proposer, in his/her response, has trade secrets or other
                   information, which is proprietary by law that Proposer must notify the
                   County of its request to keep said information confidential. This
                   request must be made in writing and attached to the envelope
                   containing the proposal response. The proprietary or confidential data
                   shall be readily separable from the response in order to facilitate
                   eventual public inspection of the non-confidential portion of the
                   response. The County will review this request and notify the
                   Proposers in writing of its decision as to whether confidentiality can be
                   maintained under law, in the event a public records request is made for
                   the Proposer’s response.

           B. Proposal Presentation

               1. All proposals must be submitted on 8 ½” x 11” paper, neatly typed,
                  double-sided on recycled paper, with normal (1-inch) margins, and
                  single-spaced. Each page, including attachments and exhibits, must
                  be clearly and consecutively numbered at the bottom center of the
                  page.



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County of San Bernardino
Treasurer-Tax Collector / Public Administrator’s Office
RFP for Investment Advisory Services



               2. One (1) marked as original and six (6) copies (total of 7) of the
                  complete proposal must be received by the deadline for receipt of
                  proposal specified in Section I, E. The original and all copies must be
                  in a sealed envelope or container and submitted to the County Contact
                  identified in Section I, D.

               3. Hand carried proposals may be delivered to the address above ONLY
                  between the hours of 8:00 a.m. to 5:00 p.m., Monday through Friday,
                  excluding holidays observed by the County.               Proposers are
                  responsible for informing any commercial delivery service, if used, of
                  all delivery requirements, and for ensuring that the address information
                  appears on the outer wrapper or envelope used by such service.
                  Proposers are solely responsible for ensuring that the responses are
                  delivered in a timely manner. County is not responsible for any
                  incorrect or late deliveries.

    VI.     PROPOSAL FORMAT

           A. Instructions to Proposers

               Proposer should carefully follow the format and instructions outlined
               below, observing format requirements where indicated.

           B. Contents of Proposal

                                     e
               The proposal shall b written in sufficient detail to permit the County to
               conduct a meaningful evaluation of the proposed services. The proposal
               must contain the following information:

               a. Cover Letter
               Proposals must include the name, address and telephone number of the
               primary contact for the proposal. A vendor representative authorized to
               make contractual obligations must sign the cover letter.

               b. Table of Contents

               Provide sufficient detail so reviewers can locate all of the important
               elements of your proposal readily. Identify each section of your response
               as outlined in this RFP.

               c. General Information

                   1)     Provide the name of the firm, a brief history of the firm, the
                          location of its headquarters, the location of the primary office
                          proposed to provide services to the county and the location of
                          any branch offices.




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County of San Bernardino
Treasurer-Tax Collector / Public Administrator’s Office
RFP for Investment Advisory Services

                   2)     Provide the number and positions of relevant professionals in
                          the firm and in the primary location providing services to the
                          county
                   3)     Describe the corporate structure and ownership of the firm.
                   4)     Describe other business affiliations (e.g., subsidiaries, joint
                          ventures, “soft dollar” relationships with broker/dealers) that
                          might affect the investment advisory services provided to the
                          County of San Bernardino.
                   5)     Identify the principals of your firm and relevant biographical
                          information on each.
               d. Experience/Qualifications of the Organization

                   1)     Describe the firm’s relevant investment advisory experience,
                          particularly for fixed-income portfolios for public agencies, and
                          general approach to the services requested in this RFP. For
                          the purpose of this question, do not include the management of
                          pension funds or co-mingled public funds such as money
                          market accounts, NOW accounts, demand deposit accounts,
                          repurchase agreement sweep accounts, etc. unless any of the
                          aforementioned items are represented as an asset class of a
                          managed portfolio and you include those funds in your
                          individual accounting reports to your public agency clients.
                   2)     Provide a table summarizing the firm’s relevant experience as
                          an investment advisor to public agencies within the last ten (10)
                          years. This experience can include both experience providing
                          direct management of a public agency’s funds or strictly in an
                          advisory capacity (i.e., discretionary and non-discretionary
                          services). The table should list: the name of the agency or
                          fund, the time period in which services were delivered, the
                          average total assets of the agency or fund, nature of services
                          performed, type of portfolio and an agency contact name and
                          phone number. For the purpose of this question, do not include
                          the management of pension funds or co-mingled public funds
                          such as money market accounts, NOW accounts, demand
                          deposit accounts, repurchase agreement sweep accounts, etc.
                   3)     Describe the firm’s experience in providing portfolio accounting
                          and reporting for clients.
                   4)     Provide sample reports prepared by your firm for other public
                          agencies (as an appendix).
                   5)     References. Provide a minimum of five (5) references for
                          public agencies in progress or completed within the past three
                          years. Please provide the name, address and telephone
                          number for each of these references and a brief description of
                          the services provided.




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County of San Bernardino
Treasurer-Tax Collector / Public Administrator’s Office
RFP for Investment Advisory Services

                   6)     Provide an up-to-date copy of parts I and II of the ADV form for
                          your firm that has been filed with the appropriate regulatory
                          agencies.
                   7)     Provide a copy of the last two year’s audited financial
                          statements for your firm, prepared by an independent Certified
                          Public Accountant.

               e. Project Approach

                   1)     Describe your firm’s investment style and philosophy towards
                          management of public funds.
                   2)     Describe your knowledge of California law related to
                          investments by public agencies.
                   3)     Describe the primary strategies that your firm would use for
                          adding value to the County of San Bernardino’s portfolio.
                   4)     Describe your experience and approach to preparation of cash
                          flow projections for operating funds. How does your firm
                          recommend managing fluctuating cash flows?
                   5)     Describe the computer hardware and software your firm uses to
                          provide services to its clients. Describe how these tools can be
                          interfaced with the Treasurer’s Office’s equipment.
                   6)     Describe any other services you recommend to the County
                          Treasurer’s Office.

               f. Key Personnel and Subcontractors Performing Services

                   1)     Describe       the    experience,   qualifications,   professional
                          certifications, education and other vital information, including
                          relevant experience on previous similar projects, of all key
                          individuals who may be assigned to the county. Key personnel
                          include partners, managers, associates and other professional
                          staff that will perform work and/or services in this project. This
                          information shall include functions to be performed by the key
                          individuals.

                   2)     Provide information on former County of San Bernardino
                          administrative officials (as defined below) who are employed by
                          or represent your business. The information provided must
                          include a list of former county administrative officials who
                          terminated county employment within five (5) years and who
                          are now officers, principals, partners, associates or members of
                          the business.        The information should also include the
                          employment and/or representative capacity and the dates these
                          individuals began employment with or representation of your
                          business. For purposes of this section, “county administrative
                          official” is defined as a member of the Board of Supervisors or



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County of San Bernardino
Treasurer-Tax Collector / Public Administrator’s Office
RFP for Investment Advisory Services

                          such officer’s staff, County Administrative Officer or member of
                          such officer’s staff, county department or group head, assistant
                          department or group head, or any employee in the Exempt
                          Group, Management Unit or Safety Management Unit.

                   3)     Please disclose whether the firm, or any of its partners,
                          members, associates or employees, has within the last ten (10)
                          years, been convicted of any crime or offense arising directly or
                          indirectly from the conduct of the firm’s business, or whether
                          any of the firm’s partners, members, associated or employees,
                          has within the last five years, been convicted or any crime or
                          offense involving financial misconduct or fraud, and if so,
                          please describe any such convictions and surrounding
                          circumstances in detail. Failure to provide this information may
                          result in the response to the request for proposal
                          (qualifications) being deemed non-responsive.

                   4)     Please disclose whether the firm, or any of its partners,
                          members, associates or employees, has within the last ten (10)
                          years, been under investigation by the Securities and
                          Exchange Commission (SEC), National Association of
                          Securities Dealers (NASD) or any other federal or state
                          agencies with jurisdiction over the services provided by the
                          firm. Failure to provide this information may result in the
                          response to the request for proposal (qualifications) being
                          deemed non-responsive.

               Any information provided in response to this Section C, which is deemed
               by the Proposer to be confidential or proprietary shall be so marked in
               accordance with Section V, A, 4.

           g. Supplemental Information

               Provide any additional relevant information the Proposer wishes to include.

           h. Fees

                   1)     Fees shall be quoted on a fixed-fee basis using the following
                          form. Fees shall be effective for the entire three-year term of
                          the Contract without inflationary adjustments. The Proposer’s
                          fee proposal shall be separately enclosed in a sealed envelope
                          entitled “Fee Proposal”.
                   2)     If you mentioned any additional services you feel would be
                          desirable in section (f) of “Project Approach”, above, indicate
                          what the additional cost would be.




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County of San Bernardino
Treasurer-Tax Collector / Public Administrator’s Office
RFP for Investment Advisory Services

                                                 FEE PROPOSAL

           The following areas correspond to the Scope of Work identified in Section IV,B. Proposers
           must complete fees for each of the areas below. These fees will be a basis for negotiations on
           a contract with the firm selected. Certain items may be deleted prior to finalization of a contract.

                                                                                                                  Fixed Fee
           #      Item                                                                                            per Year
           1.     Assist in the review of the County’s Investment Policy
           2.     Serve as Investment Advisor for the County Treasurer in the following areas:
                  a. At least once per year, review the County’s historical cash flow data and
                     investment trends to review and provide recommendations regarding the
                     County’s target effective duration.
                  b. On a biweekly basis, based on historical cash flow data and liquidity
                     requirements, in conjunction with County staff, recommend recommended
                     target cash flow maturities by month from 1-12 months. Recommend
                     targeted maturities between 1 and 5 years’ maturity to match the County’s
                     targeted duration.
                  c. Prepare a biweekly report containing strategic investment advice to staff to
                     include a market commentary, review of macroeconomic trends, review of
                     spreads for various sectors, and specific strategic advice regarding
                     management of the portfolio.
                  d. To be available to answer questions of county staff on an as-needed basis
           3.     Prepare e-mailed reports of Pool comparing targeted maturities to actual
                  maturities, duration, compliance, etc. on a daily basis.
           4.     Attendance of meetings of the Treasury Oversight Committee (no more than
                  four times per year)
           5.     Provide two days per year of structured training to County Treasurer staff at
                  consultant’s or county’s site
           6.
                  Assist the County Treasurer’s Office in its presentations to the rating agencies
           7.     Advise the County Treasurer staff in the management of broker and bank
                  relationships
           8.     Advise the County Treasurer staff in credit analysis regarding security
                  issuers
           9.     Assist County Treasurer staff, as required, in the selection of new brokers (no
                  more than once per year)
           10.    Prepare a monthly portfolio report to include portfolio analytics, account
                  statements and horizon analysis.
           11.
                  Other Items Proposed by Proposer
                  TOTAL FEE PER YEAR




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County of San Bernardino
Treasurer-Tax Collector / Public Administrator’s Office
RFP for Investment Advisory Services



     VII. EVALUATION/SELECTION PROCESS

           A. Evaluation Criteria

               The following criteria will be considered in evaluating the responses
               received:

               1. Compliance with the minimum requirements as established in Section
                  I.B. of this RFP.
               2. Completeness and clarity of proposal.
               3. Qualifications and experience of the firm. These will be evaluated
                  based on the breadth, depth and relevance of the firm’s experience as
                  a whole in the performance of comparable investment advisory
                  assignments.
               4. Qualifications and experience of the individuals to perform the work.
               5. Project Approach.
               6. Capability and capacity to provide technical support, computer
                  modeling, and necessary financial analysis.
               7. Record of performance and regulatory issues.
               8. Financial stability.

           B. Proposal Evaluation

               1. Initial Review

                   Staff will initially review each proposal for adherence to the minimum
                   requirements.         If a proposal does not meet these minimum
                   requirements, it may be rejected as non-responsive to the RFP.
                   Proposals deemed non-responsive at this point will not be further
                   evaluated.

               2. Technical Review

                   The Evaluation Committee, composed of staff from the County
                   Treasurer-Tax Collector’s Office, will evaluate responsive proposals on
                   the experience and qualifications of the firm, the approach to services
                   and the fees for services.

               3. Interviews

                   Upon completion of the Initial and Technical Reviews, the three firms
                   deemed most qualified by the Evaluation Committee will be
                   interviewed by a panel composed of the County Treasurer-Tax
                   Collector, Assistant Treasurer –Tax Collector, and the Cash Manager /
                   Investment Officer.


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County of San Bernardino
Treasurer-Tax Collector / Public Administrator’s Office
RFP for Investment Advisory Services




           C. Award

               1. Following the evaluation of the proposals, the Treasurer-Tax Collector
                  will begin negotiations with the firm selected for the preparation of a
                  contract. Negotiations will be based on the proposal submitted;
                  therefore, the proposal must be complete. The contract must be
                  submitted to the Board of Supervisors for its approval.


     VIII. AGREEMENT TERMS

       A. General

           The firm selected may be required to agree to the terms contained below. If
           Proposer has any objections, these objections must be addressed in the RFP
           response to the County or the objections will be deemed to have been waived.

           1. Representation of the County

               In the performance of the Agreement, Proposer, its agents and employees,
               shall act in an independent capacity and not as officers, employees, or
               agents of the County of San Bernardino.

           2. Proposer Primary Contact

               The Proposer will designate an individual to serve as the primary point of
               contact for the Agreement. Proposer or designee must respond to County
               inquiries within two (2) business days. Proposer shall not change the
               primary contact without written acknowledgment to the County.

           3. Change of Address

               Proposer shall notify the County in writing, of any change in mailing
               address within ten (10) business days of the change.

           4. Subcontracting

               Proposer agrees not to enter into any subcontracting agreements for work
               contemplated under the Agreement without first obtaining written approval
               from the County. Any subcontracting shall be subject to the same terms
               and conditions as Proposer. Proposer shall be fully responsible for the
               performance and payments of any subcontractor’s contract.

           5. Agreement Assignability

               Without the prior written consent of the County, the agreement is not
               assignable by Proposer, either in whole or in part.



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County of San Bernardino
Treasurer-Tax Collector / Public Administrator’s Office
RFP for Investment Advisory Services




           6.   Agreement Amendments

                Proposer agrees any alterations, variations, modifications, or waivers of
                the provisions of the Agreement, shall be valid only when reduced to
                writing, executed and attached to the original Agreement and approved by
                the required persons.

           7. Termination for Convenience

                The County for its convenience may terminate the Agreement in whole or
                in part upon thirty (30) calendar day’s written notice this Agreement. If
                such termination is affected, an equitable adjustment in the payment
                provided in the Agreement shall be made. Such adjustment shall provide
                for payment to the Proposer for services rendered and expenses incurred
                prior to the effective date of termination. Upon receipt of termination notice
                Proposer shall promptly discontinue services unless the notice directs
                otherwise. Proposer shall deliver promptly to the County and transfer title
                (if necessary) all completed work, and work in progress, including drafts,
                documents, plans, forms, data, products, graphics, computer programs
                and reports.

           8. Attorney Fees and Costs

                If any legal action is instituted to enforce any party’s rights hereunder,
                each party shall bear its own costs and attorneys’ fees, regardless of who
                is the prevailing party. This paragraph shall not apply to those costs and
                attorneys’ fees directly arising from a third-party legal action against a
                party hereto and payable under IX, paragraph 1, Indemnification.

           9. Venue

                The venue of any action or claim brought by any party to this Agreement
                will be San Bernardino County. Each party hereby waives any law or rule
                of the court, which would allow them to request or demand a change of
                venue. If any action or claim concerning this Agreement is brought by any
                third-party and filed in another venue, the parties hereto agree to use their
                best efforts to obtain a change of venue to San Bernardino County.

           10. Licenses and Permits

                Proposer shall ensure that it has all necessary licenses and permits
                required by the laws of Federal, State, County, and municipal laws,
                ordinances, rules and regulations. The Proposer shall maintain these
                licenses and permits in effect for the duration of the Agreement. Proposer
                will notify County immediately of loss or suspension of any such licenses




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County of San Bernardino
Treasurer-Tax Collector / Public Administrator’s Office
RFP for Investment Advisory Services

               and permits. Failure to maintain a required license or permit may result in
               immediate termination of the Agreement.

           11. Key Personnel

               Proposer must provide a list of and the résumés of the individuals who will
               provide services to the County. These individuals will be designated “key
               personnel” and may not be removed from County transactions or projects
               without the written approval of the County. An individual who will be the
               main contact person must also be identified. If the main contact person
               will be unavailable to the County for more than three (3) days, another
               person must be designated as a contact for the County.

           12. Notification Regarding Performance

               In the event of a problem or potential problem that could impact the quality
               or quantity of work, services, or the level of performance under this
               Agreement, the Proposer shall notify the County within one (1) working
               day, in writing and by telephone.

           13. Conflict of Interest

               Proposer shall make all reasonable efforts to ensure that no County office
               or employee, whose position in the County enables him/her to influence
               any award of this contract or any competing offer, shall have any direct or
               indirect financial interest resulting from the award of this contract or shall
               have any relationship to the Proposer or officer or employee of the
               Proposer.

           14. Former County Officials

               Proposer agrees to provide or has already provided information on former
               County of San Bernardino administrative officials (as defined below) who
               are employed by or represent Proposer. The information provided
               includes a list of former county administrative officials who terminated
               county employment within the last five years and who are now officers,
               principals, partners, associates or members of the business. The
               information also includes the employment and/or representative capacity
               and the dates these individuals began employment with or representation
               of Proposer. For purposes of this section, “county administrative official is
               defined as a member of the Board of Supervisors or such officer’s staff,
               County Administrative Officer or mem ber of such officer’s staff, county
               department or group head, assistant department or group head, or any
               employee in the Exempt Group, Management Unit or Safety Management
               Unit.

           15. Improper Consideration




                                                17
County of San Bernardino
Treasurer-Tax Collector / Public Administrator’s Office
RFP for Investment Advisory Services

               Proposer shall not offer (either directly or through an intermediary) any
               improper consideration such as, but not limited to, cash, discounts,
               service, the provision of travel or entertainment, or any items of value to
               any officer, employee or agent of the County in an attempt to secure
               favorable treatment regarding any Agreement awarded by County.

               The County, by written notice, may immediately terminate any Agreement
               if it determines that any improper consideration as described in the
               preceding paragraph was offered to any officer, employee or agent of the
               County with respect to the proposal and award process. This prohibition
               shall apply to any amendment, extension or evaluation process once an
               Agreement has been awarded.

               Proposer shall immediately report any attempt by a County officer,
               employee or agent to solicit (either directly or through an intermediary)
               improper consideration from Proposer. The report shall be made to the
               supervisor or manager charged with supervision of the employee or to the
               County Administrative Office. In the event of a termination under this
               provision, the County is entitled to pursue any available legal remedies.

           16. Inaccuracies or Misrepresentations

               If in the course of the RFP process or in the administration of a resulting
               Agreement, the County determines the Proposer has made a material
               misstatement or misrepresentation or that materially inaccurate information
               has been provided to the County, the Proposer may be terminated from
               the RFP process or in the event a Agreement has been awarded, the
               Agreement may be immediately terminated.

               In the event of a termination under this provision, the County is entitled to
               pursue any available legal remedies.

           17. Recycled Paper Products

               The County has adopted a recycled product purchasing standards policy
               (11-10), which requires contractors to use recycled paper for proposals
               and for any printed or photocopied material created as a result of a
               contract with the County. The policy also requires Contractors to use both
               sides of the paper sheets for reports submitted to the County whenever
               practicable.

           18. Invoices / Electronic Fund Transfer

               Proposers shall provide County itemized monthly invoices for services
               performed under this Agreement within twenty (20) days of the end of the
               previous month. Contractor shall agree to accept all payments from the
               County via electronic fund transfer directly deposited into the Contractor’s
               designated checking or other banking account.




                                                18
County of San Bernardino
Treasurer-Tax Collector / Public Administrator’s Office
RFP for Investment Advisory Services

           19. Ownership of Documents

               All documents, data, products, graphics, computer programs and reports
               prepared by Proposer pursuant to the Agreement shall be considered
               property of the County upon payment for services. All such items shall be
               delivered to County at the completion of work under the Agreement.
               Unless otherwise directed by County, Proposer may retain copies of such
               items.

           22. Release of Information

               No news releases, advertisements, public announcements or
               photographs arising out of this Agreement or Proposer’s relationship with
               County may be made or used without prior written approval of the County.

           23. Contract Compliance

               Contractor agrees to comply with the provisions of Executive Orders
               11246, 11375, 11625, 12138, 12432, 12250, Title VII of the Civil Rights
               Act of 1964, the California Fair Employment and Housing Act, San
               Bernardino County Emerging Small Business Enterprise Policy 11-15,
               and any other applicable federal, state and county laws, regulations, and
               policies relating to equal employment and contracting opportunities,
               including laws and regulations hereafter enacted. Information on these
               rules and regulations may be obtained from the Small Business
               Development Manager of the County of San Bernardino at 909-387-2165.

           24. Right to Monitor and Audit

               The County, shall have absolute right to review and audit all records,
               books, papers, documents, corporate minutes, and other pertinent items
               relating to the performance of services by Proposer as requested, and
               shall have absolute right to monitor the performance of Proposer in the
               delivery of services provided under the Agreement. Proposer shall give
               full cooperation, in any auditing or monitoring conducted. Proposer shall
               cooperate with the County in the implementation, monitoring and
               evaluation of the agreement and comply with any and all reporting
               requirements established by the County.

               All records pertaining to services delivered to the County and all fiscal,
               statistical and management books and records relating to the performance
               of services by Proposer shall be available for examination and audit by
               County representatives for a period of three years after final p  ayment
               under the Agreement or until all pending County, State and Federal audits
               are completed, whichever is later.


     IX.   INDEMNIFICATION AND INSURANCE REQUIREMENTS




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County of San Bernardino
Treasurer-Tax Collector / Public Administrator’s Office
RFP for Investment Advisory Services

          1. Indemnification

               The Vendor agrees to indemnify, defend and hold harmless the County and its
               authorized officers, employees, agents and volunteers from any and all claims,
               actions, losses, damages, and/or liability arising out of this Contract from any
               cause whatsoever, including the acts, errors or omissions of any person and for
               any costs or expenses incurred by the County on account of any claim therefore,
               except where such indemnification is prohibited by law.

          2. Insurance

               Without in any way affecting the indemnity herein provided and in addition
               thereto, the Vendor shall secure and maintain throughout the Contract the
               following types of insurance with limits as shown:

               Workers’ Compensation – A program of Workers’ Compensation insurance or a
               State-approved Self-Insurance Program in an amount and form to meet all
               applicable requirements of the Labor Code of the State of California, including
               Employer’s Liability with $250,000 limits, covering all persons providing services
               on behalf of the Vendor and all risks to such persons under this Contract.

               If Contractor has no employees, it may certify or warrant to County that it does
               not currently have any employees or individuals who are defined as “employees”
               under the Labor Code and the requirement for Workers’ Compensation coverage
               will be waived by the County’s Risk Manager.

               With respect to Contractors that are non-profit corporations organized under
               California or Federal law, volunteers for such entities are required to be covered
               by Workers’ Compensation insurance. If the County’s Risk Manager determines
               that there is no reasonably priced coverage for volunteers, evidence of
               participation in a volunteer insurance program may be substituted.

               Comprehensive General and Automobile Liability Insurance – This coverage to
               include contractual coverage and automobile liability coverage for owned, hired,
               and non-owned vehicles. The policy shall have combined single limits for bodily
               injury and property damage of not less than one million dollars ($1,000,000);

               Errors and Omission Liability Insurance – Combined single limits of $1,000,000
               for bodily injury and property damage and $3,000,000 in the aggregate OR
               Professional Liability – Professional liability insurance with limits of at least
               $1,000,000 per claim or occurrence.

               Employee Automotive Liability Insurance - If the services to be performed under
               this agreement require Vendor's employee to drive a vehicle, Vendor’s employee
               must possess a valid California driver's license at all times during the
               performance of this Agreement. Vendor's employees are prohibited from driving
               County owned vehicles as part of the services performed.




                                                20
County of San Bernardino
Treasurer-Tax Collector / Public Administrator’s Office
RFP for Investment Advisory Services

                   In order for Vendor's employees to be able to use a private vehicle during the
                   performance of this Agreement, Vendor's employees shall be covered by
                   vehicle liability insurance at least equal to the minimum requirements of the
                   California Vehicle Code.

                   Such requirements currently are:
                             o Fifteen Thousand Dollars ($15,000.00) for single injury or
                                death;
                             o Thirty Thousand Dollars ($30,000.00) for multiple injury or
                                death;
                             o Five Thousand Dollars ($5,000.00) for property damage.

                   Vendor's Automobile Liability coverage will serve to augment Vendor's
                   employees’ vehicle liability coverage as per the specified limits of not less
                   than one million dollars ($1,000,000.00) per occurrence.

          3. Additional Named Insured

               All policies, except for the Workers’ Compensation, Errors and Omissions and
               Professional Liability policies shall contain additional endorsements naming the
               County and its officers, employees, agents and volunteers as additional named
               insured with respect to liabilities arising out of the performance of services
               hereunder.

          4. Waiver of Subrogation Rights

               The Vendor shall require the carriers of the above required coverage to waive all
               rights of subrogation against the County, its officers, employees, agents,
               volunteers, Vendors, and subcontractor.

          5. Policies Primary and Non-Contributory

              All policies required above are to be primary and non-contributory with any
              insurance or self-insurance programs carried or administered by the County.

          6. Proof of Coverage

               The Vendor shall immediately furnish certificates of insurance to the County
               Department administering the Contract evidencing the insurance coverage,
               including the endorsements above required, prior to the commencement of
               performance of services hereunder, which certificates shall provide that such
               insurance shall not be terminated or expire without thirty (30) days written notice
               to the Department. Vendor shall maintain such insurance from the time Vendor
               commences performance of services hereunder until the completion of such
               services. Within sixty (60) days of the commencement of this Contract, the
               Vendor shall furnish certified copies of the policies and all endorsements.

          7. Insurance Review



                                                21
County of San Bernardino
Treasurer-Tax Collector / Public Administrator’s Office
RFP for Investment Advisory Services

               The above insurance requirements are subject to periodic review by the County.
               The County’s Risk Manager is authorized, but not required, to reduce or waive
               any of the above insurance requirements whenever the Risk Manager
               determines that any of the above insurance is not available, is unreasonably
               priced, or is not needed to protect the interests of the County. In addition, if the
               Risk Manager determines that heretofore, unreasonably priced, or unavailable
               types of insurance coverage or coverage limits become reasonably priced or
               available, the Risk Manager is authorized, but not required, to change the above
               insurance requirements to require additional types of insurance coverage or
               higher coverage limits, provided that any such change is reasonable in light of
               past claims against the County, inflation, or any other item reasonably related to
               the County’s risk.
               Any such reduction or waiver for the entire term of the Contract and any change
               requiring additional types of insurance coverage or higher coverage limits must
               be made by amendment to this Contract. Vendor agrees to execute any such
               amendment within thirty (30) days of receipt.


X.   Disputes Relating to Proposal Process and Award

               In the event a dispute arises concerning the proposal process prior to the award
               of the contract, the party wishing resolution of the dispute shall submit a request
               in writing to the Treasurer Tax Collector or his designee. Vendor may appeal
               the recommended award or denial of award, provided the following stipulations
               are met:

                   a. Appeal must be in writing.
                   b. Must be submitted within ten (10) calendar days of the date of the
                      recommended award or denial of award letters.

               An appeal of a denial of award can only be brought on the following grounds:

                   a. Failure of the County to follow the selection procedures and adhere to
                      requirements specified in the RFP or any addenda or amendments.
                   b. There has been a violation of conflict of interest as provided by California
                      Government Code Section 87100 et seq.
                   c. A violation of State or Federal law.

               Appeals will not be accepted for any other reasons than those stated above. All
               appeals must be sent to:

                              Dick Larsen, Treasurer Tax Collector/ Public Administrator
                              County of San Bernardino
                              172 West Third Street, First Floor
                              San Bernardino, CA 92415-0360




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DOCUMENT INFO
Description: Investment Advisory Proposal document sample