REQUEST FOR PROPOSALS INVESTMENT SERVICES

Transcription

1 Township of South Frontenac PO Box George Street Sydenham, ON K0H 2T0 REQUEST FOR PROPOSALS INVESTMENT SERVICES 1. Background Information The Township of South Frontenac (The Township ) is a fast-growing rural township with a population of 18,100 located directly adjacent to the northern border of the City of Kingston. The Township is committed to providing a broad range of amenities and services to its residents & visitors alike including the maintenance of local roads and bridges, solid waste management, fire protection and prevention, building inspection, bylaw enforcement, land use planning, recreation programs and park maintenance. Additional information about the Township can be found at its website at: 2. Intent of the Proposal The Township is seeking professional Investment Management services to assist the Township of South Frontenac with investments under the guidelines set out in Township s investment policy under Bylaw , attached as Appendix A. This policy was constructed within the constraints of Section 418 of the Municipal Act 2001 as amended and Section 7 of Ontario Regulation 438/97. The primary objectives of the investment program are adherence to statutory requirements, preservation of principal, maintaining liquidity and yield. The successful bidder(s) shall have all the necessary resources to provide full services and continue to provide all services during the full term of the agreement. Fee structures specified in the Proposal shall remain firm for a duration of the two (2) years considered the contract term with an option to renew two (2) one (1) year renewals. Fees for the optional renewals should be identified and submitted individually. Each Respondent will be fully responsible for the validity and accuracy of all costs identified in its response to the RFP. As of December 31, 2017 the Township had approximately $5M invested under the ONE Fund program and an additional $8M cash available for investment. Financial statements can be found on our website under Townhall/Budget and Financial Reports. This information is furnished without any liability on behalf of the Township and shall be used as a basis for comparison only. There are no amounts guaranteed to be invested. All amounts to be invested are at the discretion of Township s approved staff. Scope of work 1. Offer advice in compliance with the Township s Investment Policy 2. Assist in review of the Township s Investment Policy and make recommendations, as needed 3. Assist in developing and implementing investment strategies that will enhance portfolio performance under current and anticipated changes in market conditions within the parameters of established investment policies and cash flow needs. 4. Execute securities purchases/sales upon written instructions from authorized Township staff. 5. Be able to answer questions from staff on an as-needed basis. Page 1 of 8

2 6. Ensure compliance with the within the constraints of Section 418 of the Municipal Act 2001 as amended and Section 7 of Ontario Regulation 438/ Proposal Structure and Content Requirements 3.1 Proposal Submission Structure The proposal document should be structured in sections that refer to the headings in the Proposal Content Requirements below, with corresponding numbers and tabbing. 3.2 Proposal Content Requirements Applicable Expertise and Resources a) Identify the size of the firm s staff commitment to the public sector and the credentials of key personnel (please include resumes). b) Identify the investment professionals who would be directly involved in providing services to the Township. 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. c) Have any of the above personnel ever been investigated for alleged improper, fraudulent or unfair activities related to the sale of securities? If so, please provide details. d) Describe the responsibilities of the advisor and support staff, including the chain of command for problem resolution. e) Please identify any potential conflict that might arise in managing Township assets. f) What efforts does your firm make to keep its investment professionals informed of developments relevant to government investment managers? Organization a) Describe the history and current capabilities as they relate to the services being requested. Is there any changeover anticipated in the next 5 years and indicate ownership of your firm as well as any subsidiaries and affiliates relevant to the Township of South Frontenac b) Describe the experience of the firm in serving as investment advisor for municipalities and other public entities. What is the size of the Township of South Frontenac s portfolio in the context of your firm s business? c) Describe any OSC or regulatory censure or litigation involving institutional business your firm conducts with governmental investors at this time or within the past 3 years. d) Disclose if the firm has any prior or pending litigation either civil or criminal, including complaints or actions by any regulatory agencies in which the proponent, any of its partners, members or employees is or has been involved within the last ten (10) years. In none, then so state. e) Provide audited financial statements/annual reports for 3 years Investment Process and Approach a) How is compliance ensured in meeting the investment requirements under the Municipal Act as well as adhering to the Township Investment Policy? b) Within the parameters of the Ontario Municipal Act, please indicate how you will provide a customized investment strategy and a brief description of the investment approaches that are proposed to meet the objectives of the investment policy. Outline the steps that would be taken to ensure the Township s objectives of safety, dity and yield. c) Are investment portfolios customized or are customers placed within preset investment portfolios? Please describe what the vendor recommends for the Township based on the information provided in this RFP. Page 2 of 8

3 d) What is your firm s experience in developing investment policies and portfolio strategies for governmental funds? e) Describe the types of investment research utilized and the methods for making investment decisions, including maturity and selection f) What are the primary strategies for adding value to portfolios g) What performance benchmarks would you suggest for the portfolio? h) Describe the procedures for portfolio review and client contact. Are there established turnaround times for responses? If so, specify. What is the advisor s record on meeting established response times? What is the normal frequency for investment advisor and Township contact? i) Is the investment advisor able to travel to attend meetings with Township representatives? If so, how often? j) Please ensure you have addressed the Scope of Work outlined in Section Investment comparator The Township of South Frontenac has authority to work with the LAS One Fund. Please indicate how the returns that could be generated by your firm, compare with those provided by the ONE Fund. Please provide verifiable reports and clearly indicate how the fee structure is incorporated in those fees Reporting a) Describe and submit samples of the reports that would be provided and their frequency. b) Include the methods and formulas to calculate yield and performance. Describe the benchmarks used to evaluate portfolio performance and how much discretion there is over setting performance standards. c) Describe any special features (e.g. reports, analyses) that investment management offers to assist with accounting and indicate whether they are standard reports or available at additional cost. d) Can portfolio information be accessed by web connection or is it limited to access by paper reports References Provide a list of three (3) relevant references and the types of services provided to these clients, whom the committee may contact, complete with telephone numbers. Please identify other municipalities for which you have provided investment management services Budget Describe the proposed compensation for services. Any Commission rates must be clearly laid out and presented as a percentage based on monies collected. Please identify any specific services that will fall outside the fee structure provided Other Considerations Please include any other items, not covered in the previous sections, which will identify why your firm should be selected by the Township Form of Proposal The form of proposal found in Schedule 1 to this document must be included and signed to be valid. Section 4: Proposal Process 4.1 Timeline The following timeline has been established for the Proposal selection process: Page 3 of 8

4 Request for Proposals Issued Monday March 19, 2018 Deadline for Questions Tuesday April 3, 2018 at 4:30 p.m. Answers to Questions via Addendum Accumulated to Tuesday April 6, 2018 Deadline for Receipt of Proposals Friday April 13, 2018 at 1:00 p.m. Interviews/Presentations (if necessary) Friday April 27, 2018 Notification of Award May Date & Place for Receiving Proposals a) Proposals will be received by 1:00 p.m. local time on Friday, April 13, 2018 Proposals received after 1:00 p.m., local time on Friday, April 13, 2018, will be returned unopened. b) Proposals must be addressed to: Township of South Frontenac Attention: Wayne Orr PO Box George Street Sydenham ON K0H 2T0 and clearly marked: Request for Proposal Investment Services, c) All proposal submissions are appreciated. However, the Township will be contacting only those selected for an interview/presentation. Only paper copies will be accepted. Before being officially received, the proposal envelope will be marked by the Office of the Township, with the time and the date that the envelope was received in the office. 4.3 Documentation a. Three (3) copies of the proposal are required. b. Three (3) References c. The submission must not be more than fifteen (15) pages (excluding appendices) d. All proposals must be legible and typewritten. e. A Certificate of Clearance from the Workplace Safety & Insurance Board (W.S.I.B.) certifying that the proponent is in good standing with the Board, and confirming that their account is active and up to date; f. Proof of professional liability insurance with a minimum limit of $5,000,000; 4.4 Negotiations In the event that a prepared proposal does not precisely and entirely meet the Township of South Frontenac s requirements, the Township of South Frontenac reserves the right to enter into negotiations with the selected Proponent(s) to arrive at a mutually satisfactory arrangement with respect to any modifications to a proposal. 4.5 Contract The successful Proponent will be required to enter into a formal Contract with the Township. The contract will be based on the specifications; terms and conditions expressed in this document, the successful Proponent s proposal and documented negotiations. The Township will prepare the Contract document for execution by both parties. Page 4 of 8

5 4.6 Indemnity and Insurance a) Insurance during the Performance of the Services The Successful proponent covenants and agrees with the Township that the Successful proponent shall purchase, provide and maintain at all times during the term of the services, or as otherwise set out in this RFP, the following insurance with respect to the performance of the services. The policy shall be maintained continuously with respect to the performance of any aspect of the services during the term of the services. b) The successful proponent shall provide the Township upon execution of the agreement with a valid certificate of insurance that confirms the above requirements. The Successful proponent shall provide the Township with a copy of the policy and any renewal replacement certificates as may be necessary. Comprehensive/Commercial General Liability Insurance insuring the successful proponent and naming the Township as an additional insured and any other person or entity who the Township or the successful proponent may reasonably require to be added as additional insured. Comprehensive general liability insurance on an occurrence basis for an amount not less than Five million ($5,000,000) dollars per occurrence and shall include the Township as an additional insured with respect to the Consultant s operations, act and omissions relating to its obligations under this Agreement, such policy to include non-owned automobile liability, personal injury, third party bodily, broad form property damage, contractual liability, owners and contractors protective products and completed operations, contingent employers liability, cross liability and severability of interest clauses. Professional Liability a Professional Liability Insurance Policy, in an amount not less than One Million/Dollars ($1 Million) per claim and in the aggregate insuring the Consultant. The coverage under the policy shall be maintained continuously during the term of the agreement and for two years after the termination or expiration of this Agreement and shall cover insurable losses arising out of an error or omission in the rendering of or failure to render the services. Errors and Omissions Liability Insurance in the amount of not less than One million dollars ($1,000,000) per occurrence, insuring liability errors and omissions in the performance or failure to perform professional services contemplated in the Agreement. 4.7 Communications All requests for information and/or clarification as well as questions regarding the interpretation of the terms set out in this document should be referred to lfragnito@southfrontenac.net. Inquiries/questions will be accumulated until the deadline for questions and one document will be issued providing answers. The Township reserves the right to distribute any or all questions and answers to the other proponents. Deadline for questions: Tuesday April 3, 2018 at 4:30 p.m. 4.8 Withdrawal or Substitution of Submission A Proponent may withdraw or substitute all or part of his/her proposal at any time up to the official closing time. The last proposal received shall supercede and invalidate all proposals previously submitted by that proponent for this proposal. A Proponent may withdraw or qualify his/her proposal at any time up to the official closing time, by submitting a letter bearing the signature as in his/her proposal to the Clerk of the Township, Page 5 of 8

6 who will mark thereon the time and date of receipt and will place the letter in the tender box. No telephone calls, facsimile copies or s will be considered. 4.9 Alterations or Variations No alterations or variations of this document shall be valid or binding upon the Township unless authorized in writing in accordance with the procedure set out in Communications Oral Explanation or Interpretation No oral explanation or interpretation shall modify any of the documents or provisions of the Township s request for proposal documents. 5. Proposal Evaluation 5.1 Qualification evaluations will be carried out based on the following criteria: 1. Fit and comprehensiveness of the investment approach 40 2 Qualifications of the provider and members assigned to the account 30 3 Investment management fee structure 25 4 Past performance, research process 5 Total 100 The submissions will be assessed on the merits of the information provided. Proposals should address the categories listed above to enable the Review Committee to undertake adequate assessment and determine a short list for interviews. LOWEST BID OR ANY PROPOSAL NOT NECESSARILY ACCEPTED. 5.2 Review Committee The review committee will be comprised of Township staff. 5.3 Incurred Costs The Township shall not be responsible for any liabilities, costs, expenses, loss or damage incurred, sustained or suffered by any Proponent(s) prior or subsequent to or by reason of the acceptance or non-acceptance by the Township of any proposal by reason of any delay in the acceptance of a proposal. 6.0 General Conditions 6.1 Errors and Omissions The Township of South Frontenac shall not be held liable for any errors or omissions in any part of this Tender. While The Township of South Frontenac has used considerable effort to ensure an accurate representation of information in this Tender, the information contained in the Tender is supplied solely as a guideline for Proponents. The information is not guaranteed or warranted to be accurate by The Township of South Frontenac, nor is it necessarily comprehensive or exhaustive. 6.2 Acceptance of Tenders The Township of South Frontenac is not obliged to accept the Lowest or any Tender. 6.3 Cancellation of Tenders The Township of South Frontenac reserves the right to cancel this Bid Document at any time up to the award of the Contract Page 6 of 8

7 6.4 Laws, Notices, Permits and Fees The laws of the municipality where the project is situated will apply to all work. 6.5 Indemnification The successful Proponent(s) agrees to indemnify and save harmless the Township of South Frontenac from and against all actions, claims, and demands of any nature which may be made by any person or entity arising from or in connection with the services provided including all bodily injury, death, property damage, losses, charges, costs and expenses which the Township of South Frontenac, its employees, officers or agents may incur or be liable for in consequence of any such claims, demands or actions or in consequence of damages sustained to the Township of South Frontenac property or facilities. Page 7 of 8

8 Schedule 1 Form of Proposal I/We the undersigned after having read the Request for Proposal, terms, conditions and specifications, do hereby offer Service Provider Services for Investment Management Services for The Corporation of the Township of South Frontenac as detailed herein: Where required include the following: Receipt of addenda (when issued) shall be acknowledged by the respondent initialing in the space provided each addendum received: Addendum 1 Addendum 2 Addendum 3 NOTE: Respondents failing to acknowledge receipt of Addenda when issued may be disqualified. Proposal Submitted By: Contact name: Title: Name of Company: Address: City/Town/Province Postal code: Phone: Fax: Signature: Name: (must have authority to bind the company) Date: Page 8 of 8

9 APPENDIX A TOWNSHIP OF SOUTH FRONTENAC BY-LAW A BY-LAW TO ADOPT A MUNICIPAL INVESTMENT POLICY WHEREAS Section 5(1) of the Municipal Act, 2001, c. 25, as amended, grants that the powers of a municipality shall be exercised by its Council; and WHEREAS Section 5(3) of the Municipal Act, 2001, c. 25, as amended, provides that a Municipal power, including a municipality's capacity, right, power and privileges under section 9 shall be exercised by by-law unless the municipality is specifically authorized to do others; and WHEREAS Section 5(4) of the Municipal Act, 2001, c. 25, as amended, applies to all Municipal powers, whether conferred by this Act or otherwise; and WHEREAS Section 8(1) of the Municipal Act, 2001, c. 25, as amended, provides that the powers of a municipality under this or any other Act shall be interpreted broadly so as to confer broad authority on the municipality to enable the municipality to govern its affairs as it considers appropriate and to enhance the municipality's ability to respond to municipal issues; and WHEREAS Section 7(1) of Ontario Regulation 438/97, states that before a municipality invests in a security prescribed under this Regulation, the council of the municipality shall, if it has not already done so, adopt a statement of the municipality's investment policies and goals; and WHEREAS under Section 7(2) of Ontario Regulation 438/97, states that in preparing the statement of the municipality's investment policies and goals under subsection (1 ), the council of the municipality shall consider: (a) the municipality's risk tolerance and the preservation of its capital; (b) the municipality's need for a diversified portfolio of investments; and (c) obtaining legal advice and financial advice with respect to the proposed investments; and WHEREAS the Council of The Corporation of the Township of South Frontenac deems it appropriate and necessary to adopt a Municipal Investment Policy; NOW THEREFORE THE CORPORATION OF THE TOWNSHIP OF S FRONTENAC BY ITS COUNCIL, HEREBY ENACTS AS FOLLOWS: 1. THAT the Council of the Township of South Frontenac adopts the Municipal Investment Policy attached hereto as Schedule "A" and repeal By-law THAT Schedule "A" is declared to form part of this By-law. 3. THIS BY-LAW shall come into force and take effect on date of its final passing. nd Dated at the Township of South Frontenac this 2na day of February, nd Read a first and second time this 2na day of February, nd Read a third time and finally passed this 2na day of February, THE CORPORATION OF THE TOWNSHIP OF SOUTH FRONTENAC /^^ f v 9 ^^<c- Ron Vandewal, Mayor A <^tf^ <ny]ofrr, Clerk-Administrator ^ \

10 ^^ fty Schedule A - Investment Policy Po!!cy_Statement The Township of South Frontenac shall invest funds, not immediately required, to ensure the safety of principal and to maintain adequate liquidity to meet expected cash ^^i^e^;^ill.nla^i!?^siaht^a1,e.of.r?urn and^ubj ct to complying with Ontario's Eligible Investments and Related Financial Agreements Regulation. 1^LTO<w^stli!?^as futhorityto.inyest funds und r Section 418 of the Municipal Act, 2001, S.O. 2001, c.25as amended. Purpose This Policy provides guidance for the management of the Township's investment funds including restrictions and limitations, risk tolerance and investment objectives. Application This Policy applies to all investments made on behalf of the Township, including operating funds, reserve funds, capital funds and trust funds. Policy Requirements Objectives The investment objectives for the Township, ranked in priority, are as follows: a) Security of Principal The primary objective of the Township's Investment Policy is to ensure the security of principal. To minimize the risk of loss, investments shall be subject to a minimum credit ratings and shall be diversified by maturity, type of investment and issuer, as follows: Investment Ratinqs: Investments shall only be made in eligible securities with a minimum credit rating as outlined in the Ontario Regulation 438/97, Eligible Investments and Related Financial Agreements, as amended. Term to Maturity of Investments: Investing activities should be reviewed on a regular basis as actual, revised and forecasted operating and capital plans are completed. Maturity dates'should be staggered so that investment cash inflows occur throughout the year b) Liquidity Requirements Liquidity is measured by the ease with which securities can be converted to cash to meet!?.recast.spendin9' ll is rcco9nized that th various investments that are eligible under Ontario's Eligible Investments and Related Financial Agreements Regulation, possess different features and thus market prices will vary depending on market conditions as well as the particular features of the type of investment.

11 If-e.^e^dequate liquidity-the Township's investments shall be diversified by holding securities of various terms to maturity and by various types of investments and to-the-extentpossible:the term ofsuch investm nts sha" match the forecasted requirennents for such funds to meet expenditures. c) Rate of Return Ih.T.TOVtT,ship_s funds sha11 b invested to maximize the rate of return within acceptable risk levels while respecting the security of principal, legal constraints and the adequate liquidity needs of each investment portfolio. Under normal circumstances, longer-term investments offer higher yields than shorter-term investments. I!l^i?.T^Si.ti;?i?:-o!Lla?:?^?i!OLi^lu<?ln? itsterm to maturity and type of investments, shall be adjusted within the guidelines of this Policy to take advantage of market opportunities; Such changes shall be made with the periodic interest rate outlook and target portfolio structure approved by the Township reasurer. Constraints The Township's investments are subject to the following regulatory and term constraints: a) Regulatory Constraints issuers and ^a.?s1d?n?e.wltlc?njlarij?'s E119iblejnvestm nts and Related Financial Agreements Regulation (Municipal Act, 2001,0. Reg 43W97 - as amended), the Township is not'authonzed'totnvest in securities other than those listed in the Regulation. b) Term of Investments A detailed cash flow forecast for up to one year shall be maintained to determine short-term liquidity requirements This forecast shall allow the Township to maximize the return on surplus funds invested and minimize borrowing temporarily for operational purposes. Further, a long-term forecast will be maintained factoring forecasted operating and capital requirements in order to determine long-term liquidity requirements. c) Direction of Investments Available funds will be managed between bank accounts (including LAS High Interest Savings Account), short term investments with institutions as per regulation (including the LAS One Investment Program) and long-term investments with the LAS One investment Program. Responsibilities a) Authority The Township Treasurer and CAO are jointly responsible for the prudent investment of the Township's portfolio, its strategy and to ensure that all investments are made in accordance with this Policy and any legislated requirements. Any transaction related to investments requires two signing authorities corresponding to the

12 existing signing authorities for the Township's banking. Further, any transactions, at a minimum, must be approved by the Treasurer or CAO. The Township Treasurer shall review the periodic interest rate outlook and both the Treasurer and CAO will jointly approve the proposed term structure and composition for the portfolios. Investments shall be made with judgement and care. All reasonable steps shall be taken to ensure that the management of Township's investment portfolio is in accordance with this policy. The degree of care, diligence, skill, and prudence that a reasonable person would exercise in the administration of their own affairs must be exercised and in doing so shall attempt to maximize the investment earnings of the portfolio within the parameters of the objectives established within this policy. b) Reporting The Treasurer or designate has a specific responsibility to prepare and provide an annual investment report to Council. 0. Reg. 438/97, s.8 (1). This report shall contain the following information:. a statement about the performance of the portfolio of investments of the municipality during the period covered by the report. a description of the estimated proportion of the total investments of a municipality that are invested in its own long-term and short-term securities to the total investment of the municipality and a description of the change, if any, in the estimated proportion since the previous year's report. a statement by the treasurer as to whether or not, in his or her opinion, all investments were made in accordance with the investments policies and goals adopted by the municipality Monitoring/Contraventions Failure to comply with this Policy may result in the Township holding investments which are not eligible investments as prescribed by provincial regulation. Legislative and Administrative Authorities Section 418 of the Municipal Act, , c.25 as amended Ontario Regulation 438/97, Eligible Investments and Related Financial Agreements, as amended