Title
RFP No. I247-2025 - Investment Advisory Services & Primary Depository Banking Consultation.
(Authorize the City Manager to finalize and execute a contract with HilltopSecurities Asset Management, LLC, in an amount not to exceed $80,000.00. The term of this contract is for a one year period, with four additional one-year renewal options. The City Manager is authorized to exercise the renewal options, subject to annual appropriation of sufficient funds.)
Body
Name of Department
Finance
Project/Budgeted Amount
$75,000.00
Sum of Bid/Bid Amount
$80,000.00
Under the Public Funds Investment Act, Chapter 2256, Texas Government Code (PFIA), the City Council has ultimate fiduciary responsibility for the investment and management of public funds under its control, and in accordance with the City’s adopted investment policy, may engage the services of an investment advisory firm to assist with managing the City’s investment portfolio and the procurement of depository banking services, which is required to be bid every five years. Services provided include:
• Cash flow and investment maturity analysis; managing liquidity with cash flow fluctuations and portfolio strategies
• Monthly, quarterly and annual reporting on all governmental funds
• Evaluation of market risks and development of strategies that minimize impact on the portfolio; qualitative and quantitative approach to investment strategy decisions
• Maintain portfolio compliance with applicable policies and laws
• Evaluate and recommend portfolio benchmarks to guide investment decisions
• Annual review of investment policy to ensure compliance with PFIA
• Initial and ongoing review of City’s current investment strategies to ensure portfolio matches the City’s overall objectives
• Recommend and assist with all investment trade settlements
• Assist in the process of evaluating custodial and other banking services and servicing the portfolio’s ongoing security safekeeping needs
The fourth and final renewal period of the current investment advisory contract with Public Trust Advisors, LLC (PTA) will expire on April 19, 2025, and a Request for Proposals was prepared to solicit bids for continued investment advisory services and primary depository banking consultation services. Bid notices were broadcast through the BidNet Direct electronic procurement system, posted on the City’s website, and published in the Daily Commercial Record newspaper. A total of five responsive bids were received, including PTA, and evaluated by City staff based on experience and qualifications, capacity and resources, fees and references. HilltopSecurities Asset Management, LLC (HSAM) received the highest score overall.
HSAM meets all requirements under State law to qualify as the City’s investment advisor and is able to provide the needed services. Highlights of HSAM’s qualifications include:
• An investment adviser registered with the U.S. Securities and Exchange Commission (SEC) under the Investment Adviser’s Act of 1940, as amended
• An independent investment advisor with no conflict of interest
• Excellent online reporting capabilities for ease of access by City staff
• Manages over $31.6 billion in local government assets for more than 50 public entities including Mesquite ISD and the cities of Denton, Frisco, Garland and Richardson
• Thoroughly understands PFIA requirements and has performed role with governmental entities for 36 years
• Staff of 34 with eight professionals assigned to municipal cash management and investment management services
Recommended/Desired Action
Based on the evaluation of the RFP, responses from client references contacted and the proposed services, staff recommends award to HilltopSecurities Asset Management, LLC, for a one-year period with four one-year renewal options effective April 18, 2025, and authorize the City Manager to finalize and execute a contract.
Attachment(s)
Evaluation Score Sheet
HSAM Proposal
Drafter
Ted Chinn
Head of Department
Ted Chinn