HomeMy WebLinkAboutCity of Tamarac Resolution R-2006-049Temp. Reso 10933 -- March 21, 2006
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CITY OF TAMARAC, FLORIDA
RESOLUTION NO. 2006-
A RESOLUTION OF THE CITY COMMISSION OF THE CITY
OF TAMARAC, FLORIDA AUTHORIZING THE
APPROPRIATE CITY OFFICIALS TO EXERCISE THE THIRD
RENEWAL OPTION TO THE EXISTING AGREEMENT
BETWEEN THE CITY OF TAMARAC AND DAVIDSON FIXED
INCOME MANAGEMENT, (FORMERLY KIRKPATRICK
PETTIS CAPITAL MANAGEMENT), FOR INVESTMENT
ADVISORY SERVICES FOR A ONE-YEAR PERIOD
EFFECTIVE APRIL 14, 2006, THROUGH APRIL 14, 2007;
PROVIDING FOR CONFLICTS; PROVIDING FOR
SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, the City utilized due diligence in seeking responses for qualified firms to
provide investment advisory services to the City; and
WHEREAS, Resolution R-2003-77 dated April 9, 2003, authorized execution of an
agreement with Kirkpatrick, Pettis, Smith, Polian, Inc., Langhoff Brooks Division
(Contractor) providing for Investment Advisory Services (a copy of said resolution and
agreement is hereto attached as Exhibit "A"); and
WHEREAS, Resolution R-2003-254 dated November 12, 2003, assigned the
aforementioned agreement for Investment Advisory Services to Kirkpatrick Pettis Capital
Management, Inc., under the same terms and conditions; and
WHEREAS, Resolution R-2004-82 dated April 14, 2004, authorized the execution of
the first renewal option effective April 14, 2004 through April 13, 2005, a copy of said
Renewal Agreement is attached hereto as Exhibit " B"; and
WHEREAS, Kirkpatrick Pettis Capital Management, Inc. was acquired by the
Davidson Companies, and assigned accordingly to Kirkpatrick Pettis Capital Management,
Temp. Reso 10933 — March 21, 2006
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Inc. , a subsidiary of the Davidson Companies effective January 1, 2005; and
WHEREAS, subsequent to the assignment, the name of the firm was changed from
Kirkpatrick Pettis Capital Management Inc., a subsidiary of the Davidson Companies, to
Davidson Fixed Income Management, effective March 2, 2006 in accordance with a March
23, 2006 correspondence included herein as Exhibit "C"; and
WHEREAS, Resolution 2005-60 dated April 14, 2005 authorized the execution of
the second renewal option effective April 14, 2005 through April 13, 2006, a copy of said
Renewal Agreement is attached hereto as Exhibit "D"; and
WHEREAS, Article 2 of the Agreement for Investment Advisory Services provides
the City with the option to renew the Agreement for four additional one-year periods; and
WHEREAS, Davidson Fixed income Management has agreed to renew for a one-
year period, copy of said renewal attached hereto as Exhibit "E"; and
WHEREAS, available funds exist in the current budget for said purpose; and
WHEREAS, the Director of Finance recommends exercising the third renewal option
to the existing Agreement with Davidson Fixed Income Management, for a one-year period,
effective April 14, 2006, through April 13, 2007; and
WHEREAS, the City Commission of the City of Tamarac, Florida deems it to be in
the best interests of the citizens and residents of the City of Tamarac to renew the contract
between the City of Tamarac, Florida, and Davidson Fixed Income Management, for a one-
year period, effective April 14, 2006, through April 13, 2007, as the City's investment
advisor in order to continue receiving professional investment advice regarding the
investment of City funds.
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Temp. Reso 10933 — March 21, 2006
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF TAMARAC, FLORIDA:
SECTION 1: The foregoing "WHEREAS" clauses are hereby ratified and
confirmed as being true and correct and are hereby made a specific part of this Resolution.
SECTION 2: The appropriate City officials are hereby authorized to exercise
the third renewal option to the April 9, 2003, Investment Advisory Services Agreement
between the City of Tamarac, Florida, and Davidson Fixed Income Management, for
Investment Advisory Services for a one-year period, effective April 14, 2006, through April
13, 2007.
SECTION 3: All resolutions or parts of resolutions in conflict herewith are
hereby repealed to the extent of such conflict.
SECTION 4: If any clause, section, other part or application of this Resolution is
held by any court of competent jurisdiction to be unconstitutional or invalid, in part or
application, it shall not affect the validity of the remaining portions or applications of this
Resolution.
Temp. Reso 10933 — March 21, 2006
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SECTION 5: This Resolution shall become effective immediately upon its
passage and adoption.
PASSED, ADOPTED AND APPROVED this day of A2 r l , 2006.
el
I- W4"0101 ��aawl,t
BETH FLANSBAUM TALABISC
MAYOR
ATTEST:
c
RECORD OF COMMISSION VOTE:
ARION SWEN N, CMC MAYOR FLANSBAUM-TALABISCO Aj
CITY CLERK DIST 1: V/M PORTNER
Ash to-
DIST 2: COMM. ATKINS-GRAD
DIST 3: COMM. SULTANOF
I HEREBY CERTIFY that DIST 4: COMM. DRESSLER
I have approved this
RESOLUTION as to form.
J-03 ,
4MUEL`S. EI'
CITY ATT NEY
TR #10933 EXHIBIT A
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Temp. Reso. #10068
March 7, 2003
Revised April 2, 2003
Page 1
CITY OF TAMARAC, FLORIDA
RESOLUTION NO. R-2003-
-7T-
A RESOLUTION OF THE CITY COMMISSION OF
THE CITY OF TAMARAC, FLORIDA, AUTHORIZING
THE APPROPRIATE CITY OFFICIALS TO AWARD
RFP43-14R TO AND EXECUTE AN AGREEMENT
WITH KIRKPATRICK PETTIS FOR INVESTMENT
ADVISORY SERVICES; PROVIDING FOR
CONFLICTS; PROVIDING FOR SEVERABILITY; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City has determined that it would be beneficial to solicit
proposals for investment advisory services for the City's short-term and medium -term
investment portfolio in order to enhance and improve the City's investment revenue;
and
WHEREAS, the City of Tamarac Finance Department Purchasing Division
solicited RFP 03-14R from qualified firms publicly advertised on February 9
and February 16, 2003 (attached hereto as Attachment 1 to Exhibit A); and
WHEREAS, the following seven investment advisory firms responded to the
City's Request for Proposal (RFP) for investment advisory services:
• Merrill Lynch -Punta Gorda
• Public Financial Management
• Voyageur Asset
• Merrill Lynch -Heathrow
• MBIA
• Cypress Asset
0 Kirkpatrick Pettis; and
Temp. Reso. #10068
March 7, 2003
Revised April 2, 2003
Page 2
WHEREAS, an evaluation committee consisting of the Director of Finance,
Finance and Policy Officer and Purchasing and Contracts Manager conducted an
extensive evaluation of the proposals and short listed the following top ranked firms:
• Kirkpatrick Pettis
• Public Financial Management
• MBIA
• Cypress Asset; and
WHEREAS, Kirkpatrick Pettis scored highest on the basis of cost of services,
transaction time, investment earnings rate, the ability to provide quality of investment
advisory services, prior experience in governmental investing, other financial services
available, and the overall quality of its presentation; and
WHEREAS, the Investment Advisory Selection Committee after due
consideration has ranked Kirkpatrick Pettis, considered the most competitive, as its first
choice; and
WHEREAS, the Investment Advisory Selection Committee entered into
negotiations with Kirkpatrick Pettis; and
WHEREAS, the Director of Finance and City Manager recommend the
appropriate City officials be authorized to enter into an agreement with Kirkpatrick Pettis
to provide investment advisory services; and
WHEREAS, the City Commission of the City of Tamarac, Florida, deems it to be
in the best interest of the citizens and residents of the City of Tamarac to
Temp. Reso. #10068
March 7, 2003
Revised April 2, 2003
Page 3
Award RFP-03-14R to and execute an Agreement with Kirkpatrick Pettis for Investment
Advisory Services for a period of one (1) year with four (4) additional one-year renewal
option periods.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF TAMARAC, FLORIDA:
SECTION 1: The foregoing "WHEREAS" clauses are hereby ratified and
confirmed as being true and correct and are hereby made a specific part of this
Resolution.
SECTION 2: That the appropriate City Officials are hereby authorized to award
RFP-03-14R to and execute an Agreement with Kirkpatrick Pettis for investment
advisory services (Exhibit A) for a period of one (1) year with four (4) additional one-
year renewal option periods.
SECTION 3: All resolutions or parts of resolutions in conflict herewith are
hereby repealed to the extent of such conflict.
SECTION 4: If any clause, section or other part or application of this Resolution
is held by any court of competent jurisdiction to be unconstitutional or invalid, in part -or
application, it shall not affect the validity of the remaining portions or applications of this
Resolution.
Temp. Reso. #10068
March 7, 2003
Revised April 2, 2003
Page 4
SECTION 5: This Resolution shall become effective immediately upon its
passage and adoption.
PASSED, ADOPTED AND APPROVED this 9`" day of April, 2003.
ATTEST: 61JOE SCHREIBER
MAYOR
s•
IARION SWENSON, MC
CITY CLERK
I HEREBY CERTIFY that
I have approved this
RESOLUTION as --to form.
CITY A
RECORD OF COMMISSION V0j
MAYOR SCHREIBER [,
DIST 1: COMM. PORTNER
DIST 2: COMM. FLANSBAUM-T
DIST 3: COMM. SULTANOF
DIST 4: V/M ROBERTS
f•�l i • \.. „T` 1 nip ,�
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AGREEMENT FOR PROFESSIONAL SERVICES n
THIS AGREEMENT made and entered into this 9 f day of,i.
2003 by and between the City of Tamarac, a municipaf corporation of the State of Florida,
hereinafter referred to as CITY, and Kirkpatrick, Pettis, Smith, Pollan Inc., a Nebraska
corporation, with principal offices located at 3504 Lake Lynda Drive, Suite 155, Orlando,
FL 32817, hereinafter referred to as CONSULTANT:
WHEREAS, the CITY intends to utilize the services of a firm to provide investment
Advisory Services as outlined in the Request for Proposals 03-14R dated February 5,
2003, which is attached hereto and incorporated by reference as part of this Agreement;
and,
WHEREAS, the CITY requires certain professional services in connection with
said Investment Advisory Services; and,
WHEREAS, the CONSULTANT represents that it is capable and prepared to
provide such Services:
NOW THEREFORE, in consideration of the promises contained herein, the parties
hereto agree as follows:
ARTICLE 1 -- THE CONTRACT DOCUMENTS
The contract documents consist of this Agreement, conditions of the contract
(General, Suppementary, and other Conditions), drawings, specifications to RFP 03-14R,
all addenda issued prior to, and all modifications issued after execution of this Agreement.
These contract documents form the Agreement, and all are as fully a part of h
Agreement as if attached to the Agreement or repeated herein. rtq;0 '
ARTICLE 2 - EFFECTIVE DATE TheffectiveoloD'
e date of this Agreement shall be for one year from the date ofge4
execution by City, with the option to renew for four (4) additional one-year periods, for aN 41,
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term not to exceed five years, subject to the satisfactory negotiation of terms, the d concurrence of the City Commission, the annual availability of an appropriation, andf
satisfactory performance of services.
ARTICLE 3 - SERVICE TO BE PERFORMED BY CONSULTANT
The CONSULTANT shall perform the services in accordance with the provisions
contained in the request for proposals as specifically stated in Article IV of RFP-03-14R
and CONSULTANTS Proposal, and as may be specifically designated and additionally
authorized by the CITY. Such additional authorizations will be in the form of a Purchase
Order. Each Purchase Order will set forth a speck Scope of Services, amount of
compensation and completion date.
ARTICLE 4 - COMPENSATION
The CITY shall pay CONSULTANT for investment advisory services in accordance
with the provisions contained in the request for proposals, a fee of nine basis points
annually on the average monthly market value of the assets under management, billed
monthly. No other fees shall apply under this Agreement.
ARTICLE 5 - STANDARD OF CARE
CONSULTANT shall exercise the same degree of care, skill, and diligence in the
performance of the Services as is ordinarily provided by a professional investment
advisory firm under similar circumstances and CONSULTANT shall, at no additional cost
to the CITY, re -perform services which fail to satisfy the foregoing standard of care. The
CONSULTANT will at all times render the services called for in this Agreement skillfully,
diligently and to a high quality, professional standard of care. However, the
CONSULTANT does not imply or guarantee any profits, any particular results or any
freedom from loss in connection with its recommendations or otherwise in performing its
services hereunder.
ARTICLE 6 - INDEMNIFICATION
CONSULTANT shall, in addition to any other obligation to indemnify the CITY.and
to the fullest extent permitted by law, protect, defend, indemnify and hold harmless the
CITY, their agents, elected officials and employees from and against all claims, actions,
liabilities, losses (including economic losses), costs arising out of any actual or alleged:
a). Bodily injury, sickness, disease or death, or injury to or destruction of tangible property
including the loss of use resulting therefrom, or any other damage or loss arising out of or
resulting, or claimed to have resulted in whole. or in part from any actual or alleged act or
omission of the CONSULTANT, any sub consultant, anyone directly or indirectly
employed by any of them, of anyone for whose acts any of them may be liable in the
performance of the WORK; or b). violation of law, statute, ordinance, governmental
administration order, rule, regulation, or infringement of patent rights by CONSULTANT in
the performance of the Work; or c). liens, claims or actions made by the CONSULTANT
or any sub consultant under workers compensation acts; disability benefit acts, other
employee benefit acts or any statutory bar. Any cost of expenses, including attorney's
fees, incurred by the CITY to enforce this agreement shall be borne by the
CONSULTANT.
Upon completion of all Services, obligations and duties provided for in this
Agreement, or in the event of termination of this Agreement for any reasons, the terms
and conditions of this Article shall survive indefinitely.
ARTICLE i - INDEPENDENT CONTRACTOR
CONSULTANT undertakes performance of the Services as an Independent
contractor and shall be wholly responsible for the methods of performance. The CITY
shall have no right to supervise the methods . used, but the CITY shall have the right to
observe such performance. CONSULTANT shall work closely with the CITY in performing
Services under this Agreement.
ARTICLE 8 - COMPLIANCE WITH LAWS
In performance of the Services, CONSULTANT will comply with applicable
regulatory requirements including federal, state, and local laws, rules regulations, orders,
codes, criteria and standards.
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ARTICLE 9 . INSURANCE
During the performance of the Services under this Agreement, CONSULTANT
shall maintain the following Insurance polices, and provide originals or certified copies of
all policies, and shall be written by an insurance company authorized to do business in
Florida.
1. Worker's Compensation Insurance: The CONSULTANT shall procure and
maintain for the life of this Agreement, Workers' Compensation Insurance covering all
employees with limits meeting all applicable state and federal laws. This coverage shall
include Employer's Liability with limits meeting all applicable state and federal laws. This
coverage must extend to any sub consultant that does not have their own Workers'
Compensation and Employer's Liability Insurance.
The policy must contain a waiver of subrogation in favor of the City of Tamarac,
executed by the insurance company. Thirty 30 days notice of cancellation is required and
must be provided to the City of Tamarac via 1 st Class Mail.
2. Comprehensive General Liability: The CONSULTANT shall procure and
maintain, for the life of this Agreement, Comprehensive General Liability Insurance. This
coverage shall be on an "Occurrence" basis. Coverage, shall include Premises and
Operations; Independent Contractors' Products and Completed Operations and
Contractual Liability with specific reference of Article 5 of this Agreement. This policy shall
provide coverage for death, personal injury or property damage that could arise directly or
indirectly from the performance of this Agreement.
The Minimum Limits of Coverage shall be $1,000,000 per occurrence, Combined
Single Limit for Bodily Injury Liability and Property Damage Liability.
The CITY must be named as an additional insured unless Owners and
Contractors' Protective Coverage is also provided, or required. Sixty (60) days written
notice must be provided to the CITY via 1 st Class Mail class in the event of cancellation.
3. Business Automobile Liability: The CONSULTANT shall procure and
maintain, for the life of the Agreement, Business Automobile Liabilitv Insurance.
The minimum limits of coverage shall be $1,000,000 per Occurrence, Combined
Single Limit for Bodily Injury Liability and Property Damage Liability. This coverage shall
be an "Any Auto" type policy. The CITY must be listed as an Additional Insured under the
Policy. Sixty-(60) days written notice must be provided to the CITY via 1st Class Mail in
the event of cancellation.
4. Professional Liability (Errors and Omissions) Insurance: $10,000,000
In the event that sub -consultants used by the CONSULTANT do not have
insurance, or do not meet the insurance limits, CONSULTANT shall indemnify and hold
harmless the CITY for any claim in excess of the sub -consultants' insurance coverage,
arising out of negligent acts, errors or omissions of the sub -consultants.
CONSULTANT shall not commence work under this Agreement until all insurance
required as stated herein has been obtained and such insurance has been approved by
the CITY.
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ARTICLE 10 - CITY'S RESPONSIBILITIES
The CITY shall be responsible for providing access to all project sites, and
providing information on hand that are available in the files of the CITY..
ARTICLE 11 - TERMINATION OF AGREEMENT
The obligation to continue Services under this Agreement may be terminated for
cause by either party upon ten (10) calendar days' written notice of substantial failure by
the other party to perform in accordance with the terms hereof through no fault of the
terminating parry.
CITY shall have the right to terminate this Agreement or suspend performance
thereof without cause for the CITY's convenience upon seven (7) calendar days' written
notice to CONSULTANT, and CONSULTANT shall terminate or suspend performance of
Services on a schedule acceptable to CITY. In the event of termination or suspension for
CITY's convenience, CITY shall pay CONSULTANT for all Services performed through
the date of notice of termination or suspension.
ARTICLE 12 - NONDISCLOSURE OF.PROPRIETARY INFORMATION
CONSULTANT shall consider all information provided by CITY and all reports,
studies, calculations, and other documentation resulting from the CONSULTANT's
performance of the Services to be proprietary unless such information is available from
public sources. CONSULTANT shall not publish or disclose proprietary information for
any purpose other than the performance of the Services without the prior written
authorization of CITY or in response to legal process.
ARTICLE 13 - UNCONTROLLABLE FORCES
Neither the CITY nor CONSULTANT shall be considered to be in default of this
Agreement if delays in or failure of performance shall be due to Uncontrollable Forces,
the effect of which, by the exercise of reasonable diligence, the non -performing party
could not avoid. The term "Uncontrollable Forces" shall mean any event which results in
the prevention or delay of performance by a party of its obligations under this Agreement
and which is beyond the reasonable control of the nonperforming party. It includes, but is
not limited to fire, flood, earthquakes, storms, lightning, epidemic, war, riot, civil
disturbance, sabotage, and governmental actions.
Neither party shall, however, be excused from performance if nonperformance is
due to forces, which are preventable, removable, or remediable, and which the
nonperforming party could have, with the exercise of reasonable diligence, prevented,
removed, or remedied with reasonable dispatch. The nonperforming party shall, within a
reasonable time of being prevented or delayed from performance by an uncontrollable
force, give written notice to the other party describing the circumstances and
uncontrollable forces preventing continued performance of the obligations of this
Agreement.
ARTICLE 14 - GOVERNING LAW AND VENUE
This Agreement shall be governed by the laws of the State of Florida. Any and all
legal action necessary to enforce the Agreement will be held in Broward County and the
Agreement will be interpreted according to the laws of Florida.
ARTICLE 15 - MISCELLANEOUS
15.1 Nonwaiver
. A waiver by either CITY or CONSULTANT of any breach of this Agreement shall
not be binding upon the waiving party unless such waiver is in writing. In the event of a
written waiver, such a waiver shall not affect the waiving party's rights with respect to any
other or further breach. The making or acceptance of a payment by either party with
knowledge of the existence of a default or breach shall not operate or be construed to
operate as a waiver of any subsequent default or breach.
15.2 Severability
Any provision in this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof or affecting the
validity or enforceability of such provisions in any other jurisdiction. The nonenforcement
of any provision by either party shall not constitute a waiver of that provision nor shall it
affect the enforceability of that provision or of the remainder of this Agreement.
The provisions of this section shall not prevent the entire Agreement from being
void should a provision, which is of the essence of the Agreement, be determined to be
void.
ARTICLE 16 - INTEGRATION AND MODIFICATION
This Agreement is adopted by the CITY and CONSULTANT as a complete and
exclusive statement of the terms of the Agreement between the CITY and
CONSULTANT. This Agreement supersedes all prior agreements, contracts, proposals,
representations, negotiations, letters or other communications between the CITY and
CONSULTANT pertaining to the Services, whether written or oral.
The Agreement may not be modified unless such modifications are evidenced in
writing signed by both the CITY and CONSULTANT.
ARTICLE 17 - SUCCESSORS AND ASSIGNS
The CITY and CONSULTANT each binds itself and its director, officers, partners,
successors, executors, administrators, assigns and legal representatives to the other
party to this Agreement and to the partners, successors, executors, administrators,
assigns, and legal representatives.
ARTICLE 18 - CONTINGENT FEES
The CONSULTANT warrants that it has not employed or retained any company or
person, other than a bona fide employee working solely for the CONSULTANT to solicit
or secure this Agreement and that it has not paid or agreed to pay any person, company,
corporation, individual or firm, other than a bona fide employee working solely for the
CONSULTANT, any fee, commission, percentage, gift or any other consideration
contingent upon or resulting from the award or making of this Agreement.
ARTICLE 19 - TRUTH -IN -NEGOTIATION CERTIFICATE
.. ...... .. ..................... .... .... ..
Execution of this Agreement by the CONSULTANT shall act as the execution of a
truth -in -negotiation certificate certifying that the wage rates and costs used to determine
the compensation provided for in this Agreement are accurate, complete and current as
of the date of the Agreement and no higher than those charged the CONSULTANTS
most favored customer for the same or substantially similar service.
The said rates and cost shall be adjusted to exclude any significant sums should
the CITY determine that the rates and costs were increased due to inaccurate,
incomplete or non -current wage rates or due to inaccurate representations of fees paid to
outside consultants. The CITY shall exercise its rights under this "Certificate" within one
(1) year following payment.
ARTICLE 20 - OWNERSHIP OF DOCUMENTS
CONSULTANT shall be required to work in harmony with other consultants relative
to providing information requested in a timely manner and in the specified form. Any and
all documents, records, disks, original drawings, or other information shall become the
property of the CITY upon completion for its use and distribution as may be deemed
appropriate by the CITY.
ARTICLE 21 - NOTICE
Any notice, demand, communication, or request required or permitted hereunder
shall be in writing and delivered in person or sent by certified mail, postage prepaid as
follows:
CITY
City Manager
City of Tamarac
7525 NW 88th Avenue
Tamarac, Florida 33321-2401
With a copy to the City Attorney at the same address.
CONSULTANT:
Jeffrey T. Larson
Senior Vice President
Kirkpatrick, Pettis, Smith, Polian Inc.
3504 Lake Lynda Dr., Suite 155
Orlando, FL 32817
PH: 407-482-2327
Notices shall be effective when received at the address specified above. Changes
in the respective addresses to which such notice may be directed may be made from time
to time by any party by written notice to the other party. Facsimile is acceptable notice
effective when received, however, facsimiles received (i.e.; printed) after 5:00 p.m. or on
weekends or holidays, will be deemed received on, the next business day. The original of
the notice must additionally be mailed as required herein.
Nothing contained in this Article shall be construed to restrict the transmission of
routine communications between representatives of CONSULTANT and CITY.
dt[,'1.�ia
1'
IN WITNESS WHEREOF, the parties hereby have made and executed this
Amendment to Agreement on the respective dates under each signature, the City of
Tamarac signing through its City Manager and its City Commission signing by and
through its Mayor, Joe Schreiber, and Kirkpatrick, Pettis, Smith, Polian Inc., signing by
and through its Senior Vice President, duly authorized to execute same.
CI : OF TAMARAC
f
a Schreiber, Mayor
3
at
ATTEST:(Jeffrey L. iller, City Manager
a
-1
Marion Swenson, CMC 4Dte
City Clerk
Date /
i
_ INY COMMI SIGN 1 CC 857920
EXPIRES: JNy 31. 2004
Gonad Tnm ►i"p,
Jr g/05
App
legal syrf iciency:
Mitchell S:/ Kraft, itei Attoy
Date
Kirkpatrick, Pettis, $mith, Polian Inc.
SIKSenior Vice President
Jeffrey T. Larson
Type/Print Name of Senior Vice President
Oq/.0-7 102>
Date
.17y..d GilaCIll'
CORPORATE ACKNOWLEDGEMENT
STATE OF FLORIDA
SS
COUNTY OF OEVtJGr
I HEREBY CERTIFY that on this day, before me, an Officer duly authorized in the State
aforesaid and in the County aforesaid to take acknowledgments, personally appeared
Jeffrey T. Larson, Senior Vice President, of Kirkpatrick, Pettis, Smith, Polian Inc., a
Nebraska Corporation, to me known to be the person(s) described in and who executed
the foregoing instrument and acknowledged before me that he/she executed the same.
WITNESS my hand and official seal this 20th day of March, 2003.
Sign re ofNotary Public
State of Florida at Large
fdx U Antigon e` G.r �G 4.
z ssion DD138 6 Print, Type or Stamp
EwxresAugust 01 zoos Name of Notary Public
❑ rsonally known to me or
Produced Identification
Type of I.D. Produced
CERTIHCATE
lCaWATRICK, PE ns, S11IiTH, POLIAN LNC.
I, Kent J. Lund„ Executive Vice President, General Counsel and Secretary of Kirkpatrick, Pettis,
Smith, Polian Inc., a Nebraska Corporation (the "Corporation"), do hereby certify that the following
tu'o Individuals duly hold with the Corporation the officer positions next to their names below:
Jeffrey T. Larson Senior Vice President
Christopher K. Blackwood Senior Vicc President
L Kent J. Lund, Executive Vice President, General Counsel and Secretary of the Corporation, do
hereby certifythat each of Jeffrey T. Larson and Christopher K. Blackwood, as Senior Vice
Presidents of the Corporation,:
is authorized to act for and on behalf of the Corporation in respect of the
underwriting of fixed income securities and including the -execution and delivery
of agreements providing for the purchase or placement of fixed ;income securities
(including tax-exempt fixed income securities), financial consultant, fiscal agency,
and fixed income advisory service agreements, and generally to execute and
deliver all such documents and to undertake all such actions as may be necessary
and appropriate to effectuate the underwriting of said securities.
DATED THIS DAY OF 2UU�
1
Kirkpatrick, Pettis, Smith, Poliad IRC.
r
Executive Vic President, General Counsel
and Secretary
Table of Contents
RFP 03-14R
Requestfor Proposals.................................................................................................................. 2
I. Introduction.................................................................................................................... 3
11. Instructions to Offerors................................................................................:.................. 3
1. Defined Terms.................................................................................................... 3
2. Special Conditions........................................................................................ ..3
3. Non -Collusive Affidavit Form............................................................................. 4
4. Conflict of Interest...............................................................................................4
5. Modification and Withdrawal of Proposals..........................................................4
6. Indemnification...............................................................................................4
7. Nan -Discrimination and Equal Opportunity Employment ................................... 5
8. Termination for Cause and Default..................................................................... 5
9. Termination for Convenience of City.................................................................. 5
10. Audit Rights........................................................................................................ 6
11. Assignment..................................................................................................6
12. Public Entity Crimes Statement..........................................................................6
13. Insurance Requirements.................................................................................... 6
Ill. Proposal Submission and Withdrawal............................................................................8
IV. Nature of Services Rendered.........................................................................................9
A. General................................................................................................................9
B. Scope of Work to be Performed.......................................................................10
C. Minimum Qualifications ....................................................................................11
V. Proposal Requirements................................................................................................12
A. General......................................................................................... ................12.
B. Technical Proposal...........................................................................................13
VI. Evaluation of Proposals................................................................................................15
A. Evaluation Committee......................................................................................15
B. Evaluation Criteria and Method........................................................................16
C. Oral Presentations............................................................................................17
D. Right to Reject Proposals.................................................................................17
VII.Schedule of Events..............................................................................................................17
VIII.Summary of Documents to be Submitted...........................................................................18
IX.Award of Contract.................................................................................................................18
SampleAgreement......................_.......................................................................................19,26
CertificationForm...................................................................................................................1 of 1
CertifiedResolution................................................................................................................1 of 1
Offeror's Qualification Statement... ........................................................................................ I of 5
Non -Collusive Affidavit...........................................................................................................1 of 2
Foreign Corporations Statement ........................................................................................1 of 1
Vendor Drug -Free Workplace................................................................................................1 of 1
SampleInsurance Certificate.................................................................................................1 of 1
City of Tamarac Investment Policy........................................................................................1 26
Exhibit A
T.R. 10433
REQUEST FOR PROPOSALS
o� TA
O
RFP 03-14R
Investment Advisory Services
City of Tamarac
Purchasing and Contracts Division
7525 NW 88th Avenue, Room 108
Tamarac, Florida 33321-2401
(954) 724-2450
City of Tamarac Purchasing & Contracts Division
Table of Contents
RFP 03-14R
Requestfor Proposals.................................................................................................................. 2
I. Introduction....................................................................................................................3
II. Instructions to Offerors...................................................................................................3
1. Defined Terms....................................................................................................3
2. Special Conditions..............................................................•....._.....................3
3. Non -Collusive Affidavit Form..............................................................................4
4. Conflict of Interest...............................................................................................4
5. Modification and Withdrawal of Proposals..........................................................4
6. Indemnification...................................................................................................4
7. Non -Discrimination and Equal Opportunity Employment ...................................
5
8. Termination for Cause and Default..................................................................... 5
9. Termination for Convenience of City.................................................................. 5
10, Audit Rights........................................................................................................6
11. Assignment.........................................................................................................6
12. Public Entity Crimes Statement..........................................................................6
13. Insurance Requirements....................................................................................6
III. Proposal Submission and Withdrawal............................................................................8
IV. Nature of Services Rendered................................................:....................................... 9
A. General ........................................ ............................. ...:...................................9
B. Scope of Work to be Performed.................................................................I......10
C. Minimum Qualifications ............................................. . ........................... ....11
V. Proposal Requirements................................................................................................12
A. General.............................................................................................................12
B. Technical Proposal...........................................................................................13
VI. Evaluation of Proposals................................................................................................15
A. Evaluation Committee...................................................................................15
B. Evaluation Criteria and Method.......................................................I................16
C. Oral Presentations............................................................................................17
D. Right to Reject Proposals.................................................................................17
VII.Schedule of Events.............................................................................................................17
VIII.Summary of Documents to be Submitted...........................................................................18
IK.Award of Contract.................................................................................................................18
SampleAgreement..............................................................................................................19 - 26
CertificationForm...................................................................................................................1
of 1
CertifiedResolution................................................................................................................1
of 1
Offeror's Qualification Statement...........................................................................................1 of 5
Non -Collusive Affidavit........................................................................................................1
of 2
Foreign Corporations Statement............................................................................................1
of 1
VendorDrug -Free Workplace....................................•.......................................................
1 of 1
Sample Insurance Certificate.................................................................................................1
of 1
City of Tamarac Investment Policy........................................................................................1
- 26
Purchasing and
Contracts Division
DATE; February 5, 2003
City of Tamarac
"Committed to Excellence... Always"
REQUEST FOR PROPOSALS
ALL INTERESTED PARTIES:
RFP NO.03-14R
The City of Tamarac, Florida, hereinafter referred to as CITY, will receive sealed Proposals at
the office of the Purchasing & Contracts Manager, City Hall, 7525 NW 88th Avenue, Tamarac,
Florida 33321-2401, for furnishing the services described below:
INVESTMENT ADVISORY SERVICES
Sealed Proposals must be received by the Purchasing and Contracts Manager, either by mail or
hand delivery, no later than 4:00 p.m. local time on Wednesday, February 26, 2003. A public
opening will take place in the Conference Room #105 located at City Hall shortly thereafter on
the same date. Any Proposals received after 4:00 p.m. local time on said date will not be
accepted under any circumstances. Any uncertainty regarding the time a Proposal is received
will be resolved against the Offeror.
Proposals are subject to all terms and conditions contained in this RFP. The City of Tamarac
reserves the right to retain all proposals submitted regardless of whether that proposal is
selected. Submission of a proposal indicates acceptance by the firm of the conditions contained
in this request for proposals,. unless clearly and specifically noted in the proposal submitted and
confirmed in the contract between the City of Tamarac and the firm selected.
There is no expressed or implied obligation for the City of Tamarac to reimburse responding
firms for any expenses Incurred, in preparing proposals in response to this request.
CITY reserves the right to reject any or all Proposals, to waive any informalities or irregularities
in any Proposals received, to re -advertise for Proposals, to award in whole or in part to one or
more offerors, or take any other such actions that may be deemed to be in the best interests of
the CITY.
Documents will be available for review and may be obtained from the Purchasing and Contracts
Office at the above address. For inquiries, contact the Purchasing Office at (954) 724-2450.
Lynda S. Flurry, CPPO
Purchasing and Contracts Manager
Publish Sun Sentinel: 2/9 & 2/16
7525 NW 88th Avenue • Tamarac, Florido 33321-2401 • (954) 724-2450 0 Fax (954) 724-2408 ■ www.tcmaroc.org
Equal opportunity Emoloyer
City Of Tamarac �:+ Purchasing& Contracts Division
I. INTRODUCTION
This Request for Proposals (RFP) provides guidelines for the submission of proposals in
response to Investment Advisory Services. The City of Tamarac is requesting proposals
from qualified firms interested in providing Investment Advisory Services for the City's
short-term and medium -term investment portfolio.
The City of Tamarac reserves the right to retain all proposals submitted regardless of
whether that proposal is selected. Submission of a proposal indicates acceptance by the
firm of the conditions contained in this request for proposals, unless clearly and specifically
noted in the proposal submitted and confirmed in the contract between the City of Tamarac
and the firm selected.
There is no expressed or implied obligation for the City of Tamarac to reimburse
responding firms for any expenses incurred in preparing proposals in response to this
request.
It is anticipated the selection of a firm will be completed by March 21, 2003. Following the
notification of the selected firm, it is expected a contract will be executed between both
parties on or after April 23, 2003. It is the intent to award a contract for an initial one (1)
year period with the option to renew for four (4) one-year periods, for a possible total of five
(5) years, subject to the satisfactory negotiation of terms (including a price acceptable to
both the City of Tamarac and the selected firm), the concurrence of the City Commission,
the annual availability of an appropriation, and satisfactory performance of service.
II. INSTRUCTIONS TO OFFERORSISTANDARD TERMS AND CONDITIONS
1. DEFINED TERMS
Terms used in these Instructions to Offerors are defined and have the meaning assigned to
them. The term "Offeror' means one who submits a Proposal directly to CITY as distinct
from a Sub -Offeror, who submits a Proposal to the Offeror. The term "Successful Offeror'
means the qualified, responsible and responsive Offeror to whom CITY (on the basis of
CIT)rS evaluation as hereinafter provided) makes an award. The term "CITY" refers to the
City of Tamarac, a municipal corporation of the State of Florida. The term "Proposal
Documents" includes the Request for Proposals, Instructions to Offerors, Proposal,
Qualifications Statement, Non -Collusive Affidavit and Public Entity Crime Statement,
Corporate Resolution or Letter of Transmittal, Proposal Security and Specifications, if any,
and the proposed Contract Documents, if any, (including all Addenda issued prior to receipt
of Proposals). The term "CONSULTANT" shall mean the individual(s) or firm(s) to whom
the award is made and who executes the Contract Documents.
2. SPECIAL CONDITIONS
Any and all Special Conditions that may vary from the General Conditions shall have
precedence.
of Tamarac - ._�:{ ; PurchasffT�onti-acts Division
3. NON -COLLUSIVE AFFIDAVIT FORM
Each Offeror shall complete the Non -Collusive Affidavit Form and shall submit the form
with the Proposal. CITY considers the failure of the Offeror to submit this document to be a
major irregularity and maybe cause for rejection of the Proposal.
4, CONFLICT OF INTEREST
The award of any contract hereunder is subject to the provisions of Chapter 112, Florida
Statutes. Offerors must disclose with their Proposal the name of any officer, director,
partner, proprietor, associate or agent who is also an officer or employee of CITY or any of
its agencies- Further, all Offerors must disclose the name of any officer or employee of
CITY who owns, directly or indirectly, an interest of five percent (5%) or more in the
Offeror's firm or any of its branches or affiliate companies.
S. MODIFICATION AND WITHDRAWAL OF PROPOSALS
Proposals may be modified or withdrawn by an appropriate document duly executed (in the
manner that a Proposal must be executed) and delivered to the place where Proposals are
to be submitted at any time prior to the deadline for submitting Proposals. A request for
withdrawal or a modification must be in writing and signed by a person duly authorized to
do so. Evidence of such authority must accompany the request for withdrawal or
modification. Withdrawal of a Proposal will not prejudice the rights of an Offeror to submit a
new Proposal prior to the Proposal opening date and time. After expiration of the period for
receiving Proposals, no Proposal may be withdrawn or modified.
If, within twenty-four (24) hours after Proposals are opened, any Offeror files a duly signed,
written notice with CITY and within five (5) calendar days thereafter demonstrates to the
reasonable satisfaction of CITY by clear and convincing evidence there was a material and
substantial mistake in the preparation of its Proposal, or that the mistake is clearly evident
on the face of the Proposal but the intended correct Proposal is not similarly evident, then
Offeror may withdraw its Proposal and the Bid Security will be returned. Thereafter, the
Offeror will be disqualified from further bidding on the subject Contract,
a. INDEMNIFICATION
GENERAL INDEMNIFICATION: To the fullest extent permitted by laws and regulations,
successful Offeror shall indemnify, defend, save and hold harmless the CITY, its
officers, elected officials, agents and employees, from any and all claims, damages,
losses, liabilities and expenses, direct, indirect, consequential or inconsequential arising
out of or alleged to have arisen out of the products, goods or services furnished by or
operations of the Successful Offeror or their subcontractors, agents, officers, employees
or independent Contractor pursuant to the Contract, specifically including but not limited
to those caused by or arising out of (a) any act, omission or default of the Successful
Offeror and/or their subcontractors, agents, servants or employees in the provision of
the goods and/or services under the Contract; (b) any and all bodily injuries, sickness,
disease or death, (c) injury to or destruction of tangible property, including the loss of
use resulting there from; (d) the use of any improper materials; (e) a defective condition
in any goods provided pursuant to the Contract, whether patent or latent; (f) the violation
of any federal, state, county or municipal laws, ordinances or regulations by Successful
Cite of Tamarac _ I, T _ _ �Furchasinq & Contracts Division
Offeror, their subcontractors, agents, servants, independent Contractor or employees;
(g) the breach or alleged breach by Successful Offeror of any term, warranty or
guarantee of the Contract.
The Successful Offeror shall pay all claims, losses, liens, settlements or judgments of any
nature whatsoever in connection with the foregoing indemnifications including, but not
limited to, reasonable attorney's fees (including appellate attorney's fees) and costs.
CITY reserves the right to select its own legal counsel to conduct any defense in any such
proceeding and all costs and fees associated therewith shall be the responsibility of
Successful Offeror under the indemnification agreement. Nothing contained herein is
intended nor shall it be construed to waive CITY's rights and immunities under the common
law or Florida Statute 768.28 as amended from time to time.
7. NON-DISCRIMINATION AND EQUAL OPPORTUNITY EMPLOYMENT
During the performance of the Contract, the Successful Offeror shall not discriminate
against any employee or applicant for employment because of race, religion, color, sex or
national origin. The Successful Offeror will take affirmative action to ensure that employees
are treated during employment, without regard to their race, creed, color, or national
original. Such action must include, but not be limited to, the following: employment,
upgrading; demotion or transfer, recruitment or recruitment advertising, layoff or
termination; rates of pay or other forms of compensation; and selection for training,
including apprenticeship. The Successful Offeror(s) shall agree to post in conspicuous
places, available to employees and applicants for employment, notices to be provided by
the contracting officer setting forth the provisions of this nondiscrimination clause.
8. TERMINATION FOR CAUSE AND DEFAULT
In the event Successful Offeror shall default in any of the terms, obligations, restrictions or
conditions in any of the Proposal documents, CITY shall give written notice by certified
mail, return receipt requested to Successful Offeror of the default and that such default
shall be corrected or actions taken to correct such default shall be commenced within ten
(10) calendar days thereof. In the event Successful Offeror has failed to correct the
conditions of default or the default is not remedied to the satisfaction and approval of CITY,
CITY shall have all legal remedies available to it, including, but not limited to termination of
the Contract in which case Successful Offeror shall be liable for all procurement and re -
procurement costs and any and all damages permitted by law arising from the default and
breach of the Contract.
9. TERMINATION FOR CONVENIENCE OF CITY
Upon seven (7) calendar days written notice delivered by certified mail, return receipt
requested, to Successful Offeror, CITY may without cause and without prejudice to any
other right or remedy, terminate the agreement for CITY's convenience whenever CITY
determines that such termination is in the best interests of CITY.
Tamarac _ WT— _ _ Purchasing & Contracts
Where the agreement is terminated for the convenience of CITY, the notice of termination
to Successful Offeror must state that the Contract is being terminated for the convenience
of CITY under the termination clause and the extent of termination. Upon receipt of the
notice of termination for convenience, Successful Offeror shall promptly discontinue all
work at the time and to the extent indicated on the notice of termination, terminate all
outstanding subcontractors and purchase orders to the extent that they relate to the
terminated portion of the Contract and refrain from placing further orders and subcontracts
except as they may be necessary, and complete any continued portions of the work.
10. AUDIT RIGHTS
CITY reserves the right to audit the records relating to this contract of Successful Offeror at
any time during the performance and term of the Contract and for a period of three (3)
years after completion and acceptance by CITY. If required by CITY, Successful. Offeror
shall agree to submit to an audit by an independent certified public accountant selected by
CITY. Successful Offeror shall allow CITY to inspect, examine and review the records of
Successful Offeror at any and all times during normal business hours during the term of the
Contract.
11. ASSIGNMENT
11.1 Successful Offeror shall not assign, transfer or subject the Contract or
its rights, title or interests or obligations therein without CITY'S prior
written approval.
11.2 Violation of the terms of this paragraph shall constitute a breach of the
Contract by Successful Offeror and CITY may, at its discretion, cancel
the Contract and all rights, title and interest of Successful Offeror shall
thereupon cease and terminate.
12. PUBLIC ENTITY CRIMES STATEMENT
A person or affiliate who has been placed on the convicted vendor list following a
conviction for public entity crime may not submit a bid on a contract to provide any goods
or services to a public entity, may not submit a bid on a contract with a public entity for the
construction or repair of a public building or public work, may not submit bids on leases of
real property to public entity, may not be awarded or perform work as a Contractor,
supplier, subcontractor, or consultant under a contract with any public entity, and may not
transact business with any public entity in excess of the threshold amount provided in
Section 287.017, for Category Two for a period of 36 months from the date of the being
placed on the convicted vendor list.
13. INSURANCE REQUIREMENTS
The Certificate of Insurance shall be made to the City of Tamarac, 7525 NW 88th Avenue,
Tamarac, FL 33321 and should reference the project.
Cit�of Tamarac .� _ _ Purchasirc&Contracts Division
Contractor agrees to, in the performance of work and services under this Agreement,
comply with all federal, state, and local laws and regulations now in effect, or hereinafter
enacted during the term of this agreement that are applicable to Contractor, its employees,
agents, or Subcontractors, if any, with respect to the work and services described herein.
Contractor shall obtain at Contractor's expense all necessary insurance in such
form and amount as required by the City's Risk and Safety Manager before beginning work
under this Agreement. Contractor shall maintain such insurance in full force and effect
during the life of this Agreement. Contractor shall provide to the City's Risk and Safety
Manager certificates of all insurance required under this section prior to beginning any worts
under this Agreement.
Contractor shall indemnify and save the City harmless from any damage resulting to
it for failure of either Contractor or any Subcontractor to obtain or maintain such insurance.
The following are required types and minimum limits of insurance coverage, which
the Contractor agrees to maintain during the term of this contract:
Line of Business/ Coverage
Occurrence Aggregate
Commercial General Liability $1,000,000 $1,000,000
Including:
Premises/Operations
Contractual Liability
Personal Injury
Explosion, Collapse, Underground Hazard
Products/Completed Operations
Broad Form Property Damage
Cross Liability and Severability of Interest Clause
Automobile Liability $1,000,000 $1,000,000
Workers' Compensation & Employer's Liability Statutory
Professional Liability (Errors and Omissions) Insurance $10,000,000
The City reserves the right to require higher limits depending upon the scope of work under
this Agreement.
Neither Contractor nor any Subcontractor shall commence work under this contract
until they have obtained all insurance required under this section and have supplied the
City with evidence of such coverage in the form of an insurance certificate and
endorsement. The Contractor will ensure that all Subcontractors will comply with the above
guidelines and will maintain the necessary coverages throughout the term of this
Agreement.
All insurance carriers shall be rated at least A-VII per Bests Key Rating Guide and
be licensed to do business in Florida. Policies shall be "Occurrence form. Each carrier will
give the City sixty (60) days notice prior to cancellation.
f
Citxof iamarac _ _ Purchasing & Contracts Division
ti
The Contractor's liability insurance policies shall be endorsed to add the City of Tamarac
as an "additional insured". The Contractor's Workers' Compensation carrier will provide a
Waiver of Subrogation to the City.
The Contractor shall be responsible for the payment of all deductibles and self -insured
retentions. The City may require that the Contractor purchase a bond to cover the full
amount of the deductible or self -insured retention.
If the Contractor is to provide professional services under this Agreement, the Contractor
must provide the City with evidence of Professional Liability insurance with, at a minimum,
a limit of $10,000,000 per occurrence and in the aggregate. "Claims -Made" forms are
acceptable for Professional Liability.
PLEASE HAVE YOUR INSURANCE REPRESENTATIVE CAREFULLY REVIEW ANY
INSURANCE COVERAGES AND CONDITIONS PRIOR TO SUBMITTING YOUR
PROPOSAL TO ENSURE COMPLIANCE WITH THE INSURANCE REQUIREMENTS
OF THE INSTRUCTIONS TO OFFERORS.
The Successful Contractor agrees to perform the work under the Contract as an
independent Contractor, and not as a subcontractor, agent or employee of CITY.
III. PROPOSAL SUBMISSION AND WITHDRAWAL
The CITY will receive proposals at the following address:
CITY OF TAMARAC
Purchasing and Contracts Division
City Hall, Room 108
7525 NW 88th Avenue
Tamarac, Florida 33321-2401
To facilitate processing please mark the outside of the envelope as follows: "RFP No. 03-
14R, Investment Advisory Services". The envelope shall also include the Proposer's
return address.
Proposers shall submit one (1) original and five (5) copies of the proposal in a sealed,
opaque envelope marked as noted above. A Proposer may submit the proposal by
personal delivery or by mail.
THE CITY MUST RECEIVE ALL PROPOSALS BY 4:00 P.M., FEBRUARY 26, 2003.
The CITY cautions Proposers to assure actual delivery of mailed or hand -delivered
proposals directly to the City's Purchasing and Contracts Division at City Hall, 7525 NW
88th Avenue in Tamarac, Florida prior to the deadline set for. receiving proposals.
Telephone confirmation of timely receipt of the proposal may be made by calling (954) 724-
2450, before proposal closing time.
Cit of Tamarac Pw�chasing B Contracts Division
A proposal received by the City of Tamarac Purchasing Division after the established
deadline will be returned unopened to the Proposer.
Proposers may withdraw their proposals by notifying the CITY in writing at any time prior to
the deadline for proposal submittal. After the deadline, proposals become a record of the
CITY and will not be returned to the Proposers.
Upon opening, proposals are subject to public disclosure consistent with Chapter 119,
Florida Statutes. Proposers must invoke the exemptions to disclosure provided by law in
the response to the RFP, and must identify the data or other materials to be protected,
state the reasons why such exclusion from public disclosure is necessary and the legal
basis for such exemption.
IV. NATURE OF SERVICES RENDERED
A. General
The City of Tamarac is currently seeking proposals from qualified firms interested in
providing investment advisory services for the City's short-term and medium -term
investment portfolio. The City desires to contract for services from a firm registered with the
Securities and Exchange Commission (SEC) under the Investment Advisors Act of 1940
who will act as an investment advisor in a non -discretionary capacity. The Investment
Advisor will be required to recommend investment management, procedural changes and
investment selection and disposition in accordance with the laws of the State of Florida and
the investment policies and procedures established by the City of Tamarac.
The size of the City's investment portfolio ranges from $15 million to $55 million depending
on seasonal revenue collections and the timing of bond issues. The average maturity of
individual securities ranges from 30 days to 5 years. A copy of the current investment
policy Is attached.
The City encourages all prospective Investment Advisors to examine this Request for
Proposal (RFP) carefully. Qualified advisors, as defined below are requested to submit
proposals to provide the services described in this RFP. The City of Tamarac expects its
investment advisor to be highly experienced, a leader and innovator in the management of
investments, and able to provide comprehensive cash management and investment
advisory services.
The firm selected as the Investment Advisor and its affiliates will be restricted from selling
to the City, or buying from the City any securities to or from the firm's own inventory
account. The investment advisor will also be restricted from recommending the City's
portfolio to include securities for which it, or an affiliate, is the issuer (i.e. Certificates of
Deposits, Commercial Paper, etc.)
The investment advisor shall act solely in an advisory capacity and shall not receive any
fee or compensation based upon the purchase or sale of securities but, rather, the
investment advisor will be compensated pursuant to the provision of its contract with the
City of Tamarac.
City of Tamarac _ _ Purchasing Contracts Division
B. Scope of Work to be Performed
Specific responsibilities of the selected investment manager will include, but not be
limited to the following:
1. Actively manage the City of Tamarac's investment portfolio pursuant to
Florida Statutes and the City's Investment Policy. The City's objective is
to increase the net yield on its portfolio over that which may be obtained
through utilization of the Florida State Board of Administration while
maintaining strict adherence to its adopted Investment Policy, protect
investment principal, maintain liquidity, while avoiding unreasonable risk.
Evaluate orders and recommend purchase and sale of securities, subject
to the approval of the City, communicate settlement information to the City
of Tamarac staff and assist in coordinating security settlement.
2. Serve as a general resource of the City of Tamarac staff for information,
providing advice and training regarding fixed income securities,
investments, and treasury operations.
3. Work with the City of Tamarac staff to develop cash flow projections to
ensure that the investment strategy is consistent with the City of
Tamarac's cash requirements.
4. Provide monthly statements of investment activity, earnings and the value
of the investment portfolio. These reports must .include market valuations,
accrued income, current call dates and current yields on all investments
with a "step up" feature. The selected investment manager must maintain
accurate reports of investments, including the diversity of investments and
compliance with applicable investment policies of the City of Tamarac and
State of Florida statutes.
5. Provide monthly investment reports to the City's designated
representative, including a description of market conditions, investment
strategies employed, performance, and suggested changes to investment
strategy.
6. Attend investment advisory committee meetings quarterly or upon request.
7. Provide annual schedule of investments that comply with all applicable
GASB reporting requirements, including but not limited to, GASB 3, GASB
31 and GASB 34.
8. For current and future debt, conduct all aspects of the investment program
in compliance with the arbitrage and rebate requirements of the U. S.
Treasury, currently described in Section 148 of the Internal Revenue Code
of 1986 as amended and of the related Code of Federal Regulations 7.
For future debt issuance, provide annual and "computation date"
calculations of arbitrage earnings for each outstanding bond issue and
keep the City of Tamarac apprised of changes in arbitrage compliance
regulations that may occur during the term of the contract.
9V of Tamarac —_._ � _ _� Purchasing & Contracts Division
9. The investment advisor WILL NOT provide custodial services or security
safekeeping, as securities will be delivered to the City's custodian. All
investments will be delivered into a designated Trust Account owned and
maintained by the City of Tamarac. Funds for acquiring investments will
be provided by the City on a DVP (Delivery vs Payment) basis to the City's
Trust Account. Any and all proceeds (principal and/or interest payments)
will go directly to an account specified by the City. Under no
circumstances will the Investment Manager have custody of any City
assets.
Initially, the process will require close coordination with the City's Finance
Director or designee, however once the portfolio is established and
operating smoothly, it is expected that the Investment Manager will
operate independently of the City's Finance Director or designee but will
keep City staff informed of all activity via same day fax or email.
C. Minimum Qualifications
To be considered by the City of Tamarac, proposing investment advisor must:
1. Have a minimum of five years of experience in managing fixed income
assets for state and local government entities.
2. Currently manage at least $100 million of domestic fixed income assets.
3. Assign an account manager to the City of Tamarac account with a
minimum of ten (10) years experience in governmental cash and
investment management.
4. Be familiar with all 'applicable to Florida statutes with regard to qualified
investments for public entities.
5. Be registered with the Securities and Exchange Commission under the
Investment Advisor's Act of 1940.
6. Demonstrate experience in the calculation of arbitrage rebate amounts
and display an understanding of the related issues and constraints of the
arbitrage regulations and laws.
i. Be financially solvent and appropriately capitalized to be able to service
the City of Tamarac for the duration of the contract.
8. Have errors and Omissions and Fiduciary Liability Insurance coverage of
at least $10 million.
9. Adhere to the Code of Professional and Ethical Standards as described by
the Association for Investment Management and Research (AIMR).
of Tamarac
V. PROPOSAL REQUIREMENTS
A. General Requirements
& Contracts
1. Proposals must be received in the office of the Purchasing and Contracts
Manager no later than *00 P.M., February 26, 2003,
2. Proposals must be submitted in a sealed envelope. The envelope will be
clearly marked and will identify the RFP name and number, and the name
and address information of the submitting firm.
3. Inquiries concerning the request for proposals must be made to Lynda S.
Flurry, Purchasing and Contracts Manager, at 7525 NW 88t" Avenue,
Tamarac, FL 33321, 954-724-2450.
4. If it becomes necessary to revise or amend any part of this Request for
Proposal, the revision will be furnished by written Addendum (by the
Purchasing and Contracts Division) to all prospective Proposers who are
registered with the Purchasing and Contracts Manager as having been
sent a Request for Proposal.
CONTACT WITH PERSONNEL OF THE CITY OF TAMARAC OTHER THAN THE
ABOVE -NAMED OFFICIAL(S) REGARDING THIS REQUEST FOR PROPOSALS
MAY BE GROUNDS FOR ELIMINATION FROM THE SELECTION PROCESS.
5. For the proposal to be considered, one (1) original marked "ORIGINAL",
and four (4) copies of a technical proposal must be received by the City of
Tamarac by February 26, 2003. The technical proposal is to include the
following:
a) Title Page showing the request for proposal's subject, the firm's name;
the name, address and telephone number of a contact person; and the
date of the proposal.
b) Table of Contents.
c) Transmittal letter stating the Proposers understanding of the work to
be done, the commitment to perform the work within the time period, a
statement why the firm believes itself to be best qualified to perform
the engagement and a statement that the proposal is a firm and
irrevocable offer for the engagement period. Signature of an authorized
official of the firm who has been designated to submit the proposal on
behalf of their firm.
d) The detailed proposal should follow the order set forth in Section V,
Proposal Requirements, B., Technical Proposal, of this Request for
Proposal.
gLty of Tamarac _ _ _ _ Purchasing, & Contracts Division
h
B. Technical Proposal
1. Firm Background
a. Describe the organization, date founded and ownership of your firm.
Has the firm experienced a significant change in organizational
structure, ownership or management during the past three (3) years,
and, if so please describe.
b. Please describe any potential conflicts of interest your firm may have in
the management of this account. Include any activities of affiliated or
parent organization, brokerage activities, or investment banking
activities. Include any other pertinent activities, actions, or relationships
not specifically outlined in this question.
c. Identify the types of accounts primarily managed by your firm.
d. Does your firm have an office in the State of Florida?
e. Is your firm a registered investment advisor under the Investment
Advisor's Act of 1940? Please attach Part II of your most recent Form
ADV.
f. Describe any SEC, NASD or any other regulatory censure of litigation
involving your firm during the past five (5) years.
g. Summarize fidelity bond coverage errors and omissions, employee
dishonesty, fiduciary liability insurance, other fiduciary coverage your
firm carries. Provide a Certificate of Insurance.
h. Provide a copy of your firm's most recent audited financial statement
i. Does your firm adhere to the Code of Professional Ethical Standards
as described by AIMR?
j. List any litigation pertaining to investment/advisory services that have
occurred during the past five years for the firm and the individual that
will be providing investment service to the City of Tamarac. Please
provide information beginning with closed cases and their resolution,
followed by pending cases and expected outcome.
2. Experience
a) Describe your firm's experience in managing investment portfolios for
public funds and governmental . entities, including any relevant
experience managing public funds in Florida.
b) Summarize your assets under management (institutional only) over the
past five (5) years by the following categories: short-term operating
funds, medium -term operating funds, long-term operating funds and
bond proceeds funds. Also, please separate these asset. totals by
Government Institutions and Other Institutions.
c) What is your firm's experience in developing investment policies and
portfolio management guidelines for government operating funds?
of Tamarac
91 Purchasing & Contracts Division
d) Does your firm act as a broker or as a primary dealer in securities or
receive any other form of additional compensation (including soft
dollars) for client transactions aside from the direct fee paid by clients.
e) Provide five (5) client reference (public references, if possible)
including client name, contact personnel, address, phone number,
length of time you have managed their assets and a list of any other
related services provided (e.g. arbitrage rebate calculations, cash flow
analysis, etc.).
3. Personnel
a) Provide a summary organizational chart showing your proposed
project team including analytical investment and research staff, other
decision support and back office support. Identify the primary contact
and describe the roles of each person.
b) Provide detailed resumes for all key investment professionals who will
be directly responsible for the investment of the City of Tamarac funds.
Include the following information: title, number of years at your firm,
total number of years experience, professional designations or
licenses.
c) Describe your firm's activities to keep portfolio managers informed of
developments relevant to the management 'of local government funds.
4. Investment Management Approach and Discipline
a) Briefly describe your firm's investment philosophy.
b) Describe the process your firm would use to develop a new investment
program for the City of Tamarac.
c) Describe the types of securities you propose to purchase.
d) What are the primary strategies employed by your firm for adding value
to portfolios (e.g., market timing, credit research, etc.).
e) Describe how investment ideas are originated and how researched,
and how ultimate investment decision is made. Explain how investment
decisions are then implemented, monitored and evaluated.
f) Describe your firm's credit review process.
g) Provide your firm's intermediate -term investment (0-3 year)
performance for the past three (3) years. Please show annualized
quarterly returns, gross of all management fees.
h) Briefly describe any additional feature, attributes or conditions, which
the City of Tamarac should consider in selecting your firm.
i) Describe your firm's process for ensuring investment policy
compliance, preventing and correcting investment policy exceptions
and reporting of such compliance issues to the City of Tamarac.
j) What audit process does your firm employ?
k) State how your firm intends to comply with the City of Tamarac's policy
Citof Tamarac _ _ . _ Purchasirg 8 Contracfs Division
that encourages the participation of Minority and Women -owned
Business Enterprises.
5. Bond Proceeds Management
a) Describe your firm's experience in developing and implementing
investment strategies for the proceeds of tax-exempt bond proceeds.
b) What measures does your firm take to ensure that all investments are
executed in compliance with the IRS's Fair Market Rules?
c) Describe how you firm remains informed of the latest interpretations
and guidelines issued by the U.S. Treasury Department.
d) Describe your firm's process for monitoring compliance with the 18
month and 24 month expenditure exceptions from arbitrage rebate.
e) Describe your firm's process for monitoring compliance and calculating
arbitrage rebate liability.
f) Provide the number of issues and total assets for which you currently
monitor arbitrage rebate liability.
6. Accounting and Reporting
a) Describe the investment accounting and reporting system used by your
firm and if it complies with AIMR standards.
b) Describe the frequency and format of reports that you would provide to
the City of Tamarac (including the methods and formulas used to
calculate yield and performance). Sample reports should be attached.
c) Describe your firm's online reporting capabilities.
d) Describe how the Government Accounting Standards Board (GASB 3,
GASB 31 and GASB 34) impacts your firm's investment approach and
.horizon.
7. Fees
a) Provide the fee schedule that would apply to this account for five
years, broken down by year, including a schedule of fees for future
arbitrage rebate calculation if necessary.
b) What expenses, not covered by the fees will the City of Tamarac be
expected to pay? Please submit estimates.
VI. EVALUATION OF PROPOSALS
A. Evaluation Committee
A selection panel/team appointed and comprised of City of Tamarac staff will review and
evaluate all proposals received using the criteria listed below. The panel may short list or
select several firms, deemed, by them, to be the most highly qualified to perform the
required services. All firms will be notified in writing of the firms, which were short-listed,
shall this be the result. Those firms, which make the short list, may be asked to make a
formal presentation to the selection committee. The presentation should last approximately
City of 1 amarac i. J Purchasing & Contracts Division
ten to fifteen (10-15) minutes. Appointments for the formal presentation will be made via
the telephone and followed up in writing. Upon conclusion of the formal presentations, the
selection committee will make a final ranking.
B. Evaluation Criteria and Method
Proposals will be evaluated using the criteria listed below. Firms meeting the mandatory
criteria will have their proposals evaluated and scored for technical qualifications.
The following represent the principal selection criteria, which will be considered during the
evaluation process.
1. Mandatory Elements
a) The firm is independent and licensed to practice in Florida.
b) The firm's professional personnel have received adequate continuing
professional education within the preceding two years.
e) The firm has no conflict of interest with regard to any other work
performed by the firm for the City of Tamarac.
d) The firm adheres to the instructions in this request for proposals on
preparing and submitting the proposal.
2. Technical Qualifications (Max. 100 points possible)
a) Expertise and Experience (Max. 30 points)
• The firm's relevant experience and performance in managing
similar local government operating, capital and reserve funds.
• The experience, resources and qualifications of the investment
advisor and individuals assigned to this account.
• Demonstrated experience in managing and accounting for tax
exempt bond proceeds in compliance with Tax Code and related
regulations.
b) Approach and Discipline (Max. 30 points)
• Investment philosophy and strategy and demonstrated investment
performance.
• Ability to provide necessary portfolio accounting services.
• Understanding of the scope of services required by the City of
Tamarac, and ability to provide these services.
c) Accounting & Reporting (Max. 15 points)
The firm's accounting and reporting system, frequency and format
of reports, and online reporting capabilities.
d) Price (Max. 25 points)
Proposed fees and compensation. (Fees are an important factor,
but the City of Tamarac is not required to select the lowest cost
provider).
4&
& Contracts
COST WILL NOT BE THE PRIMARY FACTOR IN THE SELECTION
OF AN INVESTMENT FIRM.
C. Oral Presentations (Max. 20 points possible)
These weighted criteria are provided to assist the Proposers in the allocation of their time
and efforts during the submission process. The criterion also guides the Evaluation
Committee during the short -listing and final ranking of Proposers by establishing a general
framework for those deliberations.
Short listed Proposals will be selected for an interview prior to a recommendation being
presented to the City Commission. As the best interest of the CITY may require, the right is
reserved to reject any and all Proposals or waive any minor irregularity or technicality in
Proposals received. Proposers are cautioned to make no assumptions unless their
Proposal has been evaluated as being responsive.
The successful Proposer shall be required to execute a City contract covering the scope of
services to be provided and setting forth the duties, rights and responsibilities of the
parties. This contract must be executed by the successful Proposer prior to
recommendation of award and presentation to the City Commission.
D. Right to Reject Proposals
Submission of a proposal indicates acceptance by the firm of the conditions contained in
this request for proposals unless clearly and specifically noted in the proposal submitted
and confirmed in the contract between the City of Tamarac and the firm selected.
The City of Tamarac reserves the right without prejudice to reject any or all proposals.
VII. SCHEDULE OF EVENTS
The schedule of events, relative to the procurement shall be as follows:
Event Date (on or by)
1. Issuance of Request for Proposals February 5, 2003
2. Opening of Proposals February 26, 2003
3_ Proposal Evaluations February 27 — March 7, 2003
4. Presentations March 11, 2003
5. Complete Negotiations March 21, 2003
6. Award of Contract April 23, 2003
CITY reserves the right to delay scheduled dates.
of Tamarac _ _ i Purchasing &_ 2 ntractLDivision
VIII. SUMMARY OF DOCUMENTS TO BE SUBMITTED WITH PROPOSALS
The following documents (except the Certificate of Insurance), are attached and shall be
executed and submitted as a condition of this offer:
a) Proposal
b) Offeror's Certification
c) Certified Resolution
d) Offeror's Qualification Statement
e) Non -Collusive Affidavit
f) Foreign Corporation Statement
g) Vendor Drug Free Workplace Statement
h) Proof of Insurance
IX. AWARD OF CONTRACT
The contract or contracts shall be awarded to the responsible Offeror(s) whose Proposal(s)
is/are determined to be the most advantageous to CITY, taking into consideration the
evaluation factors and criteria set forth in the Request for Proposals. Be advised that the
CITY is prepared to award individual contracts for each service or multiple services or any
other combination of services as CITY deems in its best interests.
40
City of Tamarac Purchasing_& Contracts Division
AGREEMENT FOR PROFESSIONAL SERVICES
THIS AGREEMENT made and entered into this
day of , 20—, by and between the City of Tamarac,
corporation of the State of Florida, hereinafter referred to as
hereinafter referred to as CONSULTANT:
a municipal
CITY, and
WHEREAS, the CITY intends to utilize the services of a firm to provide Investment
Advisory Services as outlined in the Request for Proposals 03-14R dated February 5, 2003; and,
WHEREAS, the CITY requires certain professional services in connection with said
Investment Advisory Services; and,
WHEREAS, the CONSULTANT represents that it is capable and prepared to
provide such Services:
NOW THEREFORE, in consideration of the promises contained herein, the parties
hereto agree as follows:
ARTICLE 1 - EFFECTIVE DATE
The effective date of this Agreement shall be for one year with the option to renew
for four (4) additional one-year periods, for a possible total of five years, subject to the
satisfactory negotiation of terms, the concurrence of the City Commission, the annual
availability of an appropriation, and satisfactory performance of services.
ARTICLE 2 - SERVICE TO BE PERFORMED BY CONSULTANT
The CONSULTANT shall perform the services in accordance, with the provisions
contained in the request for proposals as specifically stated in the Nature of Services to
Be Performed and as may be specifically designated and additionally authorized by the
CITY. Such additional authorizations will be in the form of a Purchase Order. Each
Purchase Order will set forth a Specific Scope of Services, amount of compensation and
completion date.
ARTICLE 3 - COMPENSATION
The CITY shall pay CONSULTANT in accordance with the provisions contained in
the request for proposals as specifically stated in the Schedule of Professional Fees and
Expenses, which is attached hereto and incorporated by reference as part of this
Agreement.
ARTICLE 4 - STANDARD OF CARE
CONSULTANT Shall exercise the same degree of care, skill, and diligence in the
performance of the Services as is ordinarily provided by a professional investment
advisory firm under similar circumstances and CONSULTANT shall, at no additional cost
to the CITY, re -perform services which fail to satisfy the foregoing standard of care.
ARTICLE S - INDEMNIFICATION
CONSULTANT shall, in addition to any other obligation to indemnify the CITY and
to the fullest extent permitted by law, protect, defend, indemnify and hold harmless the
CITY, their agents, elected officials and employees from .and against all claims, actions,
liabilities, losses (including economic losses), costs arising out of any actual or alleged: a).
10
City of TamataC e. , Purchasing & Contrarts Division
Bodily injury, sickness, disease or death, or injury to or destruction of tangible property
including the loss of use resulting therefrom, or any other damage or loss arising out of or
resulting, or claimed to have resulted in whole or in part from any actual or alleged act or
omission of the CONSULTANT, any sub consultant, anyone directly or indirectly
employed by any of them, of anyone for whose acts any of them may be liable in the
performance of the WORK; or b). violation of law, statute, ordinance, governmental
administration order, rule, regulation, or infringement of patent rights by CONSULTANT in
the performance of the Work; or c). liens, claims or actions made by the CONSULTANT
or any sub consultant under workers compensation acts; disability benefit acts, other
employee benefit acts or any statutory bar. Any cost of expenses, including attorney's
fees, incurred by the CITY to enforce this agreement shall be borne by' the
CONSULTANT.
Upon completion of all Services, obligations and duties provided for in this
Agreement, or in the event of termination of this Agreement for any reasons, the terms
and conditions of this Article shall survive indefinitely.
ARTICLE 6 - INDEPENDENT CONTRACTOR
CONSULTANT undertakes performance of the Services as an independent
contractor and shall be wholly responsible for the methods of performance. The CITY
shall have no right to supervise the methods used, but the CITY shall have the right to
observe such performance. CONSULTANT shall work closely with the CITY in performing
Services under this Agreement.
ARTICLE 7 - COMPLIANCE WITH LAWS
In performance of the 'Services, CONSULTANT will comply with applicable
regulatory requirements including federal, state, and local laws, rules regulations, orders,
codes, criteria and standards.
ARTICLE 8 - INSURANCE
During the performance of the Services under this Agreement, CONSULTANT
shall maintain the following insurance polices, and provide originals or certified copies of
all policies, and shall be written by an insurance company authorized to do business in
Florida.
1. Worker's Compensation Insurance: The CONSULTANT shall procure and
maintain for the life of this Agreement, Workers' Compensation Insurance covering all
employees with limits meeting all applicable state and federal laws. This coverage shall
include Employers Liability with limits meeting all applicable state and federal laws. This
coverage must extend to any sub consultant that does not have their own Workers'
Compensation and Employer's Liability Insurance. The policy must contain a waiver of
subrogation in favor of the City of Tamarac, executed by the insurance company. Sixty-
(60) days notice of cancellation is required and must be provided to the City of Tamarac
via Certified Mail.
2. Comprehensive General Liability: The CONSULTANT shall procure and
maintain, for the life of this Agreement, Comprehensive General Liability Insurance. This
coverage shall be on an "Occurrence" basis. Coverage shall include Premises and
Operations; Independent Contractors' Products and Completed Operations and
Contractual Liability with specific reference of Article 5 of this Agreement. This policy shall
Xn
Cityof 7an7arac .i Purchasing & Contracts Division
provide coverage for death, personal injury or property damage that could arise directly or
indirectly from the performance of this Agreement.
The Minimum Limits of Coverage shall be $1,000,000 per occurrence, Combined
Single Limit for Bodily Injury Liability and Property Damage Liability.
The CITY must be named as an additional insured unless Owners and Contractors'
Protective Coverage is also provided, or required. Sixty (60) days written notice must be
provided to the CITY via Certified Mail in the event of cancellation.
3. Business Automobile Liability: The CONSULTANT shall procure and maintain,
for the life of the Agreement, Business Automobile Liability Insurance.
The minimum limits of coverage shall be $1,000,000 per Occurrence, Combined
Single Limit for Bodily Injury Liability and Property Damage Liability. This coverage shall
be an "Any Auto" type policy. The CITY must be listed as an Additional Insured under the
Policy. Sixty-(60) days written notice must be provided to the CITY via Certified Mail in the
event of cancellation.
4. Professional Liability (Errors. and Omissions) Insurance $10,000,000
In the event that sub consultants used by the CONSULTANT do not have
insurance, or Rio not meet the insurance limits, CONSULTANT shall indemnify and hold
harmless the CITY for any claim in excess of the sub consultants' insurance coverage,
arising out of negligent acts, errors or omissions of the sub consultants.
CONSULTANT shall not commence work under this Agreement until all insurance
required as stated herein has been obtained and such insurance has been approved by
the CITY.
ARTICLE 9 - CITY'S RESPONSIBILITIES
The CITY shall be responsible for providing access to all project sites, and
providing information on hand that are available in the files of the CITY the exception of
the City Attorney's files that are subject to confidentiality.
ARTICLE 10 - TERMINATION OF AGREEMENT
The obligation to continue Services under this Agreement may be terminated for
cause by either party upon seven (7) days' written notice of substantial failure by the other
party to perform in accordance with the terms hereof through no fault of the terminating
party.
CITY shall have the right to terminate this Agreement or suspend performance
thereof without cause for the CITY's convenience upon written notice to CONSULTANT,
and CONSULTANT shall terminate or suspend performance of Services on a schedule
acceptable to CITY. In the event of termination or suspension for CITY's convenience,
CITY shall pay CONSULTANT for all Services performed through the date of notice of
termination or suspension.
ARTICLE 11 -NONDISCLOSURE OF PROPRIETARY INFORMATION
CONSULTANT shall consider all information provided by CITY and all reports,
studies, calculations, and other documentation resulting from the CONSULTANTS
performance of the Services to be proprietary unless such information is available from
21
City of iammrac ^_ _ W ew _ Purchasin & Contracts Division
public sources. CONSULTANT shall not publish or disclose proprietary information for any
purpose other than the performance of the Services without the prior written authorization
of CITY or in response to legal process.
ARTICLE 12 - UNCONTROLLABLE FORCES
Neither the CITY nor CONSULTANT shall be considered to be in default of this
Agreement if delays in or failure of performance shall be due to Uncontrollable Forces, the
effect of which, by the exercise of reasonable diligence, the non -performing party could
not avoid. The term "Uncontrollable Forces" shall mean any event which results in the
prevention or delay of performance by a party of its obligations under this Agreement and
which is beyond the reasonable control of the nonperforming party. It includes, but is not
limited to fire, flood, earthquakes, storms, lightning, epidemic, war, riot, civil disturbance,
sabotage, and governmental actions.
Neither party shall, however, be excused from performance if nonperformance is
due to forces, which are preventable, removable, or, remediable, and which the
nonperforming party could have, with the exercise of reasonable diligence, prevented,
removed, or remedied with reasonable dispatch. The nonperforming party shall, within a,
reasonable time of being prevented or delayed from performance by an uncontrollable
force, give written notice to the other party describing the circumstances and
uncontrollable forces preventing continued performance of the obligations of this
Agreement.
ARTICLE 13 - GOVERNING LAW AND VENUE
This Agreement shall be governed by the laws of the State of Florida. Any and all
legal action necessary to enforce the Agreement will be held in Broward County and the
Agreement will be interpreted according to the laws of Florida.
ARTICLE 14 - MISCELLANEOUS
14.1 Nonwaiver
A waiver by either CITY or CONSULTANT of any breach of this Agreement shall
not be binding upon the waiving party unless such waiver is in writing. In the event of a
written waiver, such a waiver shall not affect the waiving party's rights with respect to any
other or further breach. The making or acceptance of a payment by either party with
knowledge of the existence of a default or breach shall not operate or be construed to
operate as a waiver of any subsequent default or breach.
14.2 Severability
Any provision in this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof or affecting the
validityy or enforceability of such provisions in any other jurisdiction. The nonenforcement
of any provision by either party shall not constitute a waiver of that provision nor shall it
affect the enforceability of that provision or of the remainder of this Agreement.
The provisions of this section shall not prevent the entire Agreement from being
void should a provision, which is of the essence of the Agreement, be determined to be
void.
22
Ci of Tamarac _ _ __,, _. _____ Furchasing Contracts Division
ARTICLE 15 - INTEGRATION AND MODIFICATION
This Agreement is adopted by the CITY and CONSULTANT as a complete and
exclusive statement of the terms of the Agreement between the CITY and
CONSULTANT. This Agreement supersedes all prior agreements, contracts, proposals,
representations, negotiations, letters or other communications between the CITY and
CONSULTANT pertaining to the Services, whether written or oral.
The Agreement may not be modified unless such modifications are evidenced in
writing signed by both the CITY and CONSULTANT.
ARTICLE 18 - SUCCESSORS AND ASSIGNS
The CITY and CONSULTANT each binds itself and its director, officers, partners,
successors, executors, administrators, assigns and legal representatives to the other
party to this Agreement and to the partners, successors, executors, administrators,
assigns, and legal representatives.
ARTICLE 17 - CONTINGENT FEES
The CONSULTANT warrants that it has not employed or retained any company or
person, other than a bona fide employee working solely for the CONSULTANT to solicit or
secure this Agreement and that it has not paid or agreed to pay any person, company,
corporation, individual or firm, other than a bona fide employee working solely for the
CONSULTANT, any. fee, commission, percentage, gift or any other consideration
contingent upon or resulting from the award or making of this Agreement.
ARTICLE 18 - TRUTH -IN -NEGOTIATION CERTIFICATE
Execution of this Agreement by the CONSULTANT shall act as the execution of a
truth -in -negotiation certificate certifying that the wage rates and costs used to determine
the compensation provided for in this Agreement are accurate, complete and current as of
the date of the Agreement and no higher than those charged the CONSULTANTS most
favored customer for the same or substantially similar service.
The said rates and cost shall be adjusted to exclude any significant sums should
the CITY determine that the rates and costs were increased due to inaccurate, incomplete
or noncurrent wage rates or due to inaccurate representations of fees paid to outside
consultants. The CITY shall exercise its rights under this "Certificate" within one (1) year
following payment.
ARTICLE 19 - OWNERSHIP OF DOCUMENTS
CONSULTANT shall be required to work in harmony with other consultants relative
to providing information requested in a timely manner and in the specified form. Any and
all documents, records, disks, original drawings, or other information shall become the
property of the CITY upon completion for its use and distribution as may be deemed
appropriate by the CITY.
23
Ciof Tamarac Purc hasirg & Contracts Division
ARTICLE 20 - NOTICE
Any notice, demand, communication, or request required or permitted hereunder
shall be in writing and delivered in person or sent by certified mail, postage prepaid as
follows:
CITY
City Manager
City of Tamarac
7525 NW 88th Avenue
Tamarac, Florida 33321-2401
With a copy to the City Attorney at the same address.
CONSULTANT:
Notices shall be effective when received at the address specified above. Changes
in the respective addresses to which such notice may be directed may be made from time
to time by any party by written notice to the other party. Facsimile is acceptable notice
effective when received, however, facsimiles received (i.e.; printed) after 5:00 p.m. or on
weekends or holidays, will be deemed received on the next business day. The original of
the notice must additionally be mailed as required herein..
Nothing contained in this Article shall be construed to restrict the transmission of
routine communications between representatives of CONSULTANT and CITY.
24
C.�f Tamarac 1 Y _purchasing and CoriraCfs Division.
IN WITNESS WHEREOF, the parties hereby have made and executed this
Amendment to Agreement on the respective dates under each signature, the City of
Tamarac signing through its City Manager and its City Commission signing by and
through its Mayor, Joe Schreiber, and , signing by and through its , duly
authorized to execute same.
ATTEST:
Marion Swenson, CIVIC
City Clerk
Date
ATTEST:
(Corporate Secretary)
Type/Print Name of Corporate Secy
(CORPORATE SEAL)
Joe Schreiber, Mayor
Date
Jeffrey L. Miller, City Manager
Date
Approved as to form and legal sufficiency:
Mitchell S. Kraft, City Attorney
Date
Company Name
Signature of
Type/Print Name of
Date
25
of Tamarac Purchasinand Contracts division
CORPORATE ACKNOWLEDGEMENT
STATE OF FLORIDA
9M
COUNTY OF
I HEREBY CERTIFY that on this day, before me, an Officer duly authorized in the State
aforesaid and in the County aforesaid to take acknowledgments, personally appeared
, of , a Corporation, to me known to be the person(s) described in and
who executed the foregoing instrument and acknowledged before me that he/she
executed the same.
WITNESS my hand and official seal this, day of
20 .
Signature of Notary Public
State of Florida at Large
Print, Type or Stamp
Name of Notary Public
❑ Personally known to me or
❑ Produced Identification
Type of I.D. Produced
❑ DID take an oath, or
❑ DID NOT take an oath.
26
Citv of Tamarac
It . --Purchasing & Contracts Division
CERTIFICATION
THIS DOCUMENT MUST BE SUBMITTED WITH THE BID
We (1), the undersigned, hereby agree to furnish the items)/service(s) described in the
Invitation to Bid. We (1) certify that we(I) have read the entire document, including the
Specifications, Additional Requirements, Supplemental Attachments, Instructions to
Bidders, Terms and Conditions, and any addenda issued. We agree to comply with all of
the requirements of the entire Invitation To Bid.
Indicate which type of organization below:
INDIVIDUAL PARTNERSHIP[] CORPORATION ❑ OTHER
If "Other', Explain:
Authorized Signature
Title
Company Name
City/State/Zip
Fax Number
Name (Printed Or Typed)
Federal Employer I.D./Social Security No.
Address
Telephone
Contact Person
Page 1 of 1
certification
City of Tamarac
CERTIFIED RESOLUTION
$ Contracts Division
I(Name), the duly elected Secretary of
(Name of Corp.), a corporation organized and existing under the laws of
the State of , do hereby certify that the following Resolution was
unanimously adopted and passed by a quorum of the Board of Directors of the said corporation at
a meeting held in accordance with law and the by-laws of the said corporation.
"IT IS HEREBY RESOLVED THAT (Name)", the
duly elected (Title of Officer) of
(Name of Corp.) be and is hereby authorized to execute
and submit a Bid and/or Bid Bond, if such bond is required, to the City of Tamarac and such other
instruments in writing as may be necessary on behalf of the said corporation, and that the
Bid, Bid Bond, and other such instruments signed by him/her shall be binding upon the said
corporation as its own acts and deeds. The secretary shall certify the names and signatures of
those authorized to act by the foregoing resolution.
The City of Tamarac shall be fully protected in relying upon such certification of the secretary and
shall be indemnified and saved harmless from any and all claims, demands, expenses, loss or
damage resulting from or growing out of honoring, the signature of any person so certified or for
refusing to honor any signature not so certified.
I further certify that the above resolution is in force and effect and has not been revised, revoked or
rescinded.
I further certify that the following are the name, titles and official signatures of those persons
authorized to act by the foregoing resolution.
NAME TITLE SIGNATURE
Given under my hand and the Seal of the said corporation this day of , 20—
(SEAL)
In
Secretary
Corporate Title
NOTE:
The above is a suggested form of the type of Corporate Resolution desired. Such form need
not be followed explicitly, but the Certified Resolution submitted must clearly show to the
satisfaction of the City of Tamarac that the person signing the Bid and Bid Bond for the
corporation has been properly empowered by the corporation to do so in its behalf_
Page 1 of t Certified Resolution
Citv of Tamarac
OFFEROR'S QUALIFICATION STATEMENT
& Conyads Division
The undersigned certifies under oath the truth and correctness of all statements and of
all answers to questions made hereinafter:
SUBMITTED TO: City of Tamarac
Purchasing and Contracts Manager
7525 NW 881h Avenue
Tamarac, Florida 33321
Company:
Contact Name:
Address:
City, State, Zip
Telephone No.
Fax No.
Check One
Corporation
Partnership
Individual
Other
1. State the true, exact, correct and complete name of the partnership, corporation,
trade or fictitious name under which you do business and the address of the place
of business.
The correct name of the Offeror is:
The address of the principal place of business is:
2. If Offeror is a corporation, answer the following:
a) Date of Incorporation:
b) State of Incorporation:
c) President's name:
d) Vice President's name:
e) Secretary's name:
f) Treasurer's name:
g) Name and address of Resident Agent:
Page 1 of 5 offeroes Qualification statemei7t
City of Tamarac Purchasing & Contracts Division
3. If Offeror is an individual or a partnership, answer the following:
a) Date of organization:
b) Name, address and ownership units of all partners:
c) State whether general or limited partnership:
4. If Offeror is other than an individual, corporation or partnership, describe the
organization and give the name and address of principals:
5. If Offeror is operating under a fictitious name, submit evidence of compliance with
the Florida Fictitious Name Statute.
6. How many years has your organization been in business under its present
business name?
a) Under what other former names has your organization operated?
7. Indicate registration, license numbers or certificate numbers for the businesses or
professions, which are the subject of this Bid. Please attach certificate of
competency and/or state registration.
8. Have you personally inspected the site of the proposed work?
FIYES D NO
9. Do you have a complete set of documents, including drawings and addenda?
❑ YES F-] NO
10. Did you attend the Pre -Proposal Conference if any such conference was held?
F
YES ❑ NO
Page 2 of 5 Offeror's Qualification Statement
City of Tamarac j. Purchasing & Contrarts Division
11. Have you ever failed to complete any work awarded to you? If so, state when,
where and why:
12. State the names, telephone numbers and last known addresses of three (3)
owners, individuals or representatives of owners with the most knowledge of work
which you have performed and to which you refer (government owners are
preferred as references).
Name Address Telephone
13. List the pertinent experience of the key individuals of your organization (continue
on insert sheet, if necessary).
14. State the name of the individual who will have personal supervision of the work:
15. State the name and address of attorney, if any, for the business of the Offeror:
16. State the names and addresses of all businesses and/or individuals who own an
interest of more than five percent (5%) of the Offerors business and indicate the
percentage owned of each such business and/or individual:
17. State the names, addresses and the type of business of all firms that are partially
or wholly owned by Offeror:
Page 3 of 5 Offeror's Qualification Statement
City of Tamarac
& Contracts Division
18. State the name of Surety Company which will be providing the bond, and name
and address of agent:
19. Bank References:
Bank Address Telephone
20. Attach a financial statement including OfferoPs latest balance sheet and income
statement showing the following items:
a) Current Assets (e.g., cash, joint venture accounts, accounts receivable, notes
receivable, accrued income, deposits, materials, real estate, stocks and
bonds, equipment, furniture and fixtures, inventory and prepaid expenses):
b) Net Fixed Assets
c) Other Assets
d) Current Liabilities (e.g., accounts payable, notes payable, accrued
expenses, provision for income taxes, advances, accrued salaries, real
estate encumbrances and accrued payroll taxes).
e) Other Liabilities (e.g., capital, capital stock, authorized and outstanding
shares par values, earned surplus, and retained earnings):
21. State the name of the firm preparing the financial statement and date thereof:
22. Is this financial statement for the identical organization named on page one?
1:1 YES 1:1 NO
23. If not, explain the relationship and financial responsibility of the organization whose
financial statement is provided (e.g., parent -subsidiary).
Page 4 of 5 Offemr's Qualification Statement
Citv of Tamarac
& ContraOs Division
The Offeror acknowledges and understands that the information contained in response
to this Qualification Statement shall be relied upon by owner in awarding the contract
and such information is warranted by Offeror to be true. The discovery of any omission
or misstatement that materially affects the Offeror's qualifications to perform under the
contract shall cause the owner to reject the proposal, and if after the award, to cancel
and terminate the award and/or contract.
Signature
ACKNOWLEDGEMENT
OFFEROR'S QUALIFICATION STATEMENT
State of
County of
On this the day of , 20 , before me,
the undersigned Notary Public of the State of Florida, personally appeared
and
(Name(s) of individual(s) who appeared before notary)
whose name(s) is/are Subscribed to within the instrument, and he/she/they
acknowledge that he/she/they executed it.
WITNESS my hand and official seal.
NOTARY PUBLIC, STATE OF FLORIDA
NOTARY PUBLIC
SEAL OF OFFICE:
(Name of Notary Public: Print,
Stamp, or Type as Commissioned)
❑ Personally known to me, or
❑ Produced identification:
(Type of Identification Produced)
0 DID take an oath, or
0 DID NOT take an oath
Page 5 of 5 Offeror's Qualification Statement
City of Tamarac '' Pr,rchasing & Contracts Division
NON -COLLUSIVE AFFIDAVIT
State of
)ss.
County of
being first duly sworn,
deposes and says that.
1. He/she is the , (Owner, Partner, Officer,
Representative or Agent) of , the Offeror
that has submitted the attached Proposal;
2. He/she is fully informed respecting the preparation and contents of the attached
Proposal and of all pertinent circumstances respecting such Proposal;
3. Such Proposal is genuine and is not a collusive or sham Proposal;
4. Neither the said Offeror nor any of its officers, partners, owners, agents,
representatives, employees or parties in interest, including this affiant, have in any
way colluded, conspired, connived or agreed, directly or indirectly, with any other
Offeror, firm, or person to submit a collusive or sham Proposal in connection with
the Work for which the attached Proposal has been submitted; or to refrain from
bidding in connection with such Work; or have in any manner, directly or indirectly,
sought by agreement or collusion, or communication, or conference with any
Offeror, firm, or person to fix the price or prices in the attached Proposal or of any
other Offeror, or to fix any overhead, profit, or cost elements of the Proposal price
or the Proposal price of any other Offeror, or to secure through any collusion,
conspiracy, connivance, or unlawful agreement any advantage against (Recipient),
or any person interested in the proposed Work;
5. The price or prices quoted in the attached Proposal are fair and proper and are not
tainted by any collusion, conspiracy, connivance, or unlawful agreement on the
part of the Offeror or any other of its agents, representatives, owners, employees
or parties in interest, including this affiant.
Signed, "sealed and delivered in the presence of:
Witness
Witness
M
Printed Name
Title
Page 1 of 2 Non -Collusive Affidavit
of Tamarac _- AM, Purchasing CContracls 0111 xion
ACKNOWLEDGMENT
NON -COLLUSIVE AFFIDAVIT
State of Florida
County of
On this the day of , 20 , before me, the undersigned Notary Public
of the State of Florida, personally appeared
and
(Name(s) of individual(s) who appeared before notary)
whose name(s) is/are Subscribed to within the instrument, and he/she/they
acknowledge that he/she/they executed it.
WITNESS my hand
and official seal.
NOTARY PUBLIC, STATE OF FLORIDA
NOTARY PUBLIC
SEAL OF OFFICE:
(Name of Notary Public: Print,
Stamp, or Type as Commissioned)
❑ Personally known to me, or
❑ Produced identification:
(Type of Identification Produced)
❑ DID take an oath, or ❑ DID NOT take an oath
Page 2 of 2 Non -Collusive Affidavit
City of Tamarac )_ 4 Purchasing & Contracts Division
FOREIGN (NON-FLORIDA) CORPORATIONS MUST COMPLETE THIS FORM
DEPARTMENT OF STATE CORPORATE CHARTER NO.
If your corporation is exempt from the requirements of Section 607.1501, Florida Statutes, YOU MUST
CHECK BELOW the reason(s) for the exemption. Please contact the Department of State, Division of
Corporations at (850) 245-6051 for assistance with corporate registration or exemptions.
607.1501 Authority of foreign corporation to transact business required.
(1) A foreign corporation may not transact business in this state until it obtains a certificate of
authority from the Department of State.
(2) The following activities, among others, do not constitute transacting business within the
meaning of subsection (1):
❑ (a) Maintaining, defending, or settling any proceeding.
❑ (b) Holding meetings of the board of directors or shareholders or carrying on other activities
concerning internal corporate affairs.
❑ (c) Maintaining bank accounts.
❑ (d) Maintaining officers or agencies for the transfer, exchange, and registration of the
corporation's own securities or maintaining trustees or depositaries with respect to those
securities.
❑ (e) Selling through independent contractors.
[] (f) Soliciting or obtaining orders, whether by mail or through employees, agents, or otherwise,
if the orders require acceptance outside this state before they become contracts.
❑ (g) Creating or acquiring Indebtedness, mortgages, and security interests in real or personal
property.
❑ (h) Securing or collecting debts or enforcing mortgages and security interests In property
securing the debts.
❑ (i) Transacting business in interstate commerce.
❑ 0) Conducting an isolated transaction that is completed within 30 days and that is not one in
the course of repeated transactions of a like nature.
❑ (k) Owning and controlling a subsidiary corporation incorporated in or transacting business
within this state or voting the stock of any corporation which it has lawfully acquired.
❑ (1) Owning a limited partnership interest in a limited partnership that is doing business within
this state, unless such limited partner manages or controls the partnership or exercises the
powers and duties of a general partner.
❑ (m) Owning, without more, real or personal property.
(3) The list of activities in subsection (2) is not exhaustive.
(4) This section has no application to the question of whether any foreign corporation is
subject to service of process and suit in this state under any law of this state.
Please check one of the following if your firm is NOT a corporation:
(1) ❑ Partnership, Joint Venture, Estate or Trust
(11) ❑ Sole Proprietorship or Self Employed
NOTE: This sheet MUST be enclosed with your bid if you claim an exemption or have checked I or 11
above. if you do not check I or II above, your firm will be considered a corporation and subject to all
requirements listed herein.
BIDDER'S CORRECT LEGAL NAME
SIGNATURE OF AUTHORIZED AGENT OF BIDDER
Page 1 of 7 Foreign Corporations Statement
..
City of Tamarac W Purchasi17g & Contracts Division
VENDOR DRUG -FREE WORKPLACE
Preference may be given to vendors submitting a certification with their bid/proposal
certifying they have a drug -free workplace in accordance with Section 287.087, Florida
Statutes. This requirement affects all public entities of the State and becomes effective
January 1, 1991, The special condition is as follows:
IDENTICAL TIE__ BID§ - Preference may be given to businesses with drug -free
workplace programs. Whenever. two or more bids that are equal with respect to price,
quality, and service are received by the State or by any political subdivision for the
procurement of commodities or contractual services, a bid received from a business that
certifies that it has implemented a drug -free _ workplace program shall be given
preference in the award process. Established procedures for processing be bids will be
followed if none of the tied vendors have a drug -free workplace program. In order to have
a drug -free workplace program, a business shall
1. Publish a statement notifying employees that the unlawful manufacture,
distribution, dispensing, possession, or use of a controlled substance is
prohibited in the workplace and specifying the actions that will be taken against
employees for violations of such prohibition.
2. Inform employees about the dangers of drug abuse in the workplace, the
business's policy of maintaining a drug -free workplace, any available drug
counseling, rehabilitation, and employee assistance programs, and the penalties
that may be imposed upon employees for drug abuse violations.
3. Give each employee engaged in providing the commodities or contractual
services that are under bid a copy of the statement specified in subsection (1).
4. In the statement specified in subsection (1), notify the employees that, as a
condition of working on the commodities or contractual services that are under
bid, the employee will abide by the terms of the statement and will notify the
employer of any conviction of, or plea of guilty or nolo contendere to, any
violation of chapter 893 or of any controlled substance law of the United States or
any state, for a violation occurring in the workplace no later that five (5) days
after each conviction.
5. Impose a section on, or require the satisfactory participation in a drug abuse
assistance or rehabilitation program if such is available in the employee's
community, by any employee who is so convicted.
6. Make a good faith effort to continue to maintain a drug -free workplace through
implementation of this section..As the person authorized to sign the statement, I
certify that#his form complies fully with the above requirements.
Authorized Signature
Company Name
Page 1 of 1 Druy-Free Workplace
ACORD CERTIFICATE OF LIABILITY INSURANCE I DATE(MMIDDIYY)
PRODUCER THIS CERTIFICATE 13 1$SUED AS A MATTER OF INFORMATION
ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
ALTER THE COVERAGE AFFORDED . THE PQLICIES BELOW.
INSURERS AFFORDING COVERAGE
YOUR COMPANY NAME HERE 11 INSURER C.,
Companies providing coverage
CnVFRAnES
THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING
ANY REQUIREMENT TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR
MAY PERTAIN THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH
POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
IN R
TYPE OF INSURANCE
POLICY NUMBER
C VE
PER, I N
LIMIT!
GENERAL LIABILITY
COMMERCIAL GENERAL LIABILITY
`a =CLAIMS MADE ❑ OCCUR
EACH OCCURRENCE
S
Must Include General Liability
FIRE DAMAGE M onN 010
S
MED EXP Any and orlon
PERSONAL & ADV INJURY
GENERAL AGGREGATE
S
GEN'L AGGREGATE LIMIT APPLIES PER'
policy F7 project IOC
PRODUCTS - COMPIOP AGG
S
AUTOMOBILE
LIABILITY
ANY AUTO
ALL OWNED AUTOS
SCHEDULED AUTOS
HIRED AUTOS
NON -OWNED AUTOS
SAMPLE CERTIFICATE
rl
OARAOELIABILITY
ANY AUTO
AUTO ONLY• EA ACCIDENT
$
OTHER THAN EA ACC
AUTO ONLY: AGG
S
S
EXCESS LIABILITY
OCCUR CLAIMS MADE
DEDUCTIBLE
RETENTION
EACH OCCURRENCE
AGGREGATE
WORKERS COMPENSATION AND
EMPLOYERS, LIABILITY
A U•
E.l. EACH ACCIDENT
S
E.L. DISEASE - EA EMPLOYEE
E.L. DISEASE • POLICY LIMIT
OTHER
Certificate must contain wording similar to what appears below
"THE CERTIFICATE HOLDER IS NAMED AS ADDITIONALLY INSURED WITH REGARD TO GENERAL LIABILITY"
CERTIFICATE HOLDER ADDITIONAL INSURED: INSURER LETTER: CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED FOUCIES SE CANCELLED BEFORE THE EXPIRATION
City of Tamarac PUL & DAYS WRITTEN
7525 NW 88th Avenue City Must Be Named as Certificate Holder LEFT.
Tamarac FL 33321
AUTHORIZED REPRESENTATIVE
Pape 1 Of 1 Sample Insurance Certificate
CITY COMMISSION
TAMARAC, FLORIDA
JOE SCHREIBER
MAYOR
EDWARD C. PORTNER
VICE -MAYOR
GERTRUDE MISHKIN
COMMISSIONER
MARC L. SULTANOF
COMMISSIONER
KAREN ROBERTS
COMMISSIONER
JEFFREY L. MILLER
CITY MANAGER
MITCHELL KRAFT
CITY ATTORNEY
DONA J. NEWMAN, CPA, CGFO LEANNE WILLIAMS, CPA
DIRECTOR OF FINANCE FINANCE AND POLICY OFFICER
Table of Contents
I. PURPOSE............................................................................................................4
11.
SCOPE.........................................................................................................4
III.
DEFINITIONS ................................................•..................................................4
IV.
OBJECTIVES ..... ................................. :................................................................
5
A. Safety........................................................................................................
5
B. Liquidity.....................................................................................................5
C. Yield..........................................................................................................
5
V.
STANDARD OF CARE...........................................................................................
5
A. Prudence...................................................................................................
5
B. Ethics and Conflicts of Interest..............................................................................6
C. Delegation of Authority.......................................................................................... 6
VI.
SAFEKEEPING AND CUSTODY ...................................... ............ .... ........... I ..... I...
7
A. Authorized Financial Dealers and Institutions ............................................
7
B. Internal Controls.......................................................................................
8
C. Third -Party Custodial Agreements...........................................................
10
VII.
AUTHORIZED AND SUITABLE INVESTMENT INSTRUMENTS .......................
11
A. Investment Types....................................................................................11
B. Collateralization.......................................................................................
12
C. Repurchase Agreement ........................................ ...............................
13
D. Compliance with City's Bond Covenants .................................................
13
E. Purchase of City's Utility Bonds...............................................................
13
VIII.
INVESTMENT INSTRUMENTS NOT AUTHORIZED ................................... I....
13
A. High Grade Corporate Debt.....................................................................
13
B. Repurchase Agreements..........................................................................14
C. Derivative Investment Products...............................................................
14
IX.
INVESTMENT PARAMETERS..........................................................................
14
A. Diversification.........................................................................................
14
B. Maximum Maturities.................................................................................
14
C. Duration...................................................................................................
15
D. Security Selection....................................................................................15
E. Policies to Enhance Return on Investment..............................................16
TABLE 1 Investment Parameters................................................................................. 18
2
Table of Contents
X. REPORTING......................................................................................................19
A. Method.....................................................................................................19
B. Performance Standards...........................................................................19
C. . Marking to Market.................................................................................... 19
XI. POLICY................................................................................................................ 19
A. Exemption................................................................................................19
B. Amendment........................................................................... .............. 20
C. Effective Date.......................................................................................... 20
GLOSSARY.................................................................................................................. 21
City of Tamarac, Florida
Investment Policy
PURPOSE
The intent of this policy is to provide the Director of Finance and designated staff
with sufficient latitude to effectively manage the City of Tamarac's (City) financial
assets so as to:
1) Ensure the preservation of principal,
2) Maintain sufficient cash flow to enable the City to meet its
obligations, and
3) Maximize the return on assets with an acceptably low exposure to
risk.
SCOPE
This Investment Policy shall apply to all the funds held by the City on behalf of
the residents of the City of Tamarac, with the exception of Pension Fund assets
and Funds whose uses are restricted by debt covenants, prior contracts, legal,
regulatory or other. constraints.
All financial assets held or controlled by the City, not otherwise classified as
restricted assets requiring separate investing, shall be identified as "general
operating funds" of the City for the purpose of this policy and shall be invested
under the guidelines as herein set forth. The guidelines, provided herein, are the
general operating procedures. General operating funds include:
General Fund
Special Revenue Funds
Debt Service Funds
Capital Projects
Enterprise Funds
Internal Service Funds
Trust and Agency Funds
and any new funds created by the governing body,
unless specifically exempt.
III. DEFINITIONS
See Glossary Section (Page 21)
IV. OBJECTIVES
The following investment objectives will be applied in the management of City
funds:
A. Safety
Ensuring the preservation of principal is the primary objective of the City's
investment activities. All other objectives are secondary to the preservation of
principal. Each investment transaction shall be executed to insure that capital
losses are avoided, whether from market value fluctuations or credit erosion.
This objective includes mitigation of credit risk and interest rate risk.
B. Liquidity
The investment portfolio shall remain sufficiently liquid to meet all operating
requirements that may be reasonably anticipated. This will be accomplished by
structuring the portfolio so that securities mature concurrent with cash needs to
meet anticipated demands. Furthermore, since all possible cash demands
cannot be anticipated, the portfolio will consist largely of securities with active
secondary markets.
C. Yield
The investment portfolio shall be designed with the objective of attaining a
market rate of return throughout budgetary and economic cycles, taking into
account the investment risk constraints and liquidity needs. Return on
investment shall not have as much weight in comparison to safety and liquidity
objectives. The core of investments will be limited to relatively low risk securities
in anticipation of earning a fair return relative to the risk being assumed.
Securities shall not be sold prior to maturity with the following exceptions: a
declining credit security could be sold early to minimize loss of principal; a
security swap that would improve the quality, yield, or target duration in the
portfolio; or liquidity needs of the portfolio require that the security be sold. No
transactions of this kind will be executed without the approval of the City
Manager.
V. STANDARD OF CARE
A. Prudence
The standard of prudence to be applied by the Director of Finance or designee
shall be the "Prudent Person Rule" which states: "Investments shall be made
with judgment and care, under circumstances then prevailing, which persons of
prudence, discretion and intelligence exercise in the management of their own
affairs, not for speculation, but for investments, considering the probable safety
of their capital as well as the probable income derived." The "Prudent Person
Rule" shall be applied in the context of managing the overall portfolio.
B. Ethics and Conflicts of Interest
Officers and employees involved in the investment process shall refrain from
personal business activity that could conflict or appear to conflict with the proper
execution and management of the investment program, or that could impair their
ability to make impartial decisions. Employees and investment officials shall
disclose any material interests in financial institutions with which they conduct
business. They shall further disclose any personal financial/investment positions
that could be related to the performance of the investment portfolio. Officers and
employees shall be prohibited from undertaking personal investment transactions
with the same individual with whom business is conducted on behalf of their
entity.
C. Delegation of Authority
The authority to manage the City's investment program is granted to the City
Manager as set forth in City of Tamarac Resolution R-94-167. Responsibility for
the operation of the investment program is hereby delegated to the Director of
Finance, who shall carry out established written procedures and internal controls
for the operation of the investment program consistent with this investment
policy. Procedures include:
Safekeeping
Delivery vs. Payment
Investment Accounting
Wire Transfer Agreements
Collateral/Depository Agreements
Banking Services Contracts
No person may engage in an investment transaction except as provided under
the terms of this policy and the procedures established by the Director of
Finance. The Director of Finance shall be responsible for all transactions
undertaken and shall establish a system of controls to regulate the activities of
subordinate officials. These include but are not limited to:
1. The Director of Finance, and/or other staff as may be designated by
the Director of Finance, shall have the authority to execute trades and
to otherwise conduct business within the scope of the City's Investment
Policy.
2. The Director of Finance shall have the authority to further restrict
the authority delegated to any staff member.
3. The Director of Finance shall prepare or cause to be prepared
month -end reports which, at a minimum, include:
a. Investment Holdings Reports which at a minimum
detail shall include:
(1) holdings by class of security;
(2) income earned;
(3) book value; and
(4) market value
b. Performance Measurement Reports for the City's
Aggregate Investment Portfolio, as well as for each
separate portfolio and respective third -party manager.
4. The reports which are required under Item 3 above, as well as any
others deemed appropriate by the Director of Finance, shall be
provided to the members of the Investment Committee no less
frequently than monthly.
VI SAFEKEEPING AND CUSTODY
A. Authorized Financial Dealers and Institutions
The Director of Finance or designee shall maintain a list of financial institutions
authorized to provide investment services. In addition, a list will be maintained of
approved security brokers/dealers selected by credit worthiness who are
authorized to provide investment services in the State of Florida. These may
include "primary"' dealers or regional dealers that qualify under Securities &
Exchange Commission Rule 15C3-1 (Uniform Net Capital Rule). No public
deposits shall be made except in a qualified public depository as established by
the laws and regulations of the State of Florida. A current audited financial
statement is required to be on file for each financial institution and broker/dealer
in which the City invests.
Certificates of Deposit shall be placed only with financial institutions which qualify
under Florida Law. Other securities shall be purchased only:-
1) through the financial institutions which provide the services of a
securities dealer, (who qualify as public depositories), with an office
convenient to the City of Tamarac,
2) through the "primary government securities dealer" as designated
by the Federal Reserve Bank.
These institutions, dealers and issuers must meet capital adequacy guidelines as
determined by their respective regulatory agencies and certify that no material
adverse events have occurred since the issue of their most recent financial
statements. They must also agree to notify the City in a timely manner in the
event of material adverse events affecting their capital adequacy. All securities
purchased shall be only those securities of authorized issuers of the various
security types. Lists of these authorized institutions, dealers and issuers of the
various security types will be maintained by the Director of Finance or his
designee. Criteria for addition to or deletion from the lists will be based on the
following:
1) in accordance with State Law, City Ordinance or Resolution, or
investment policy requirements;
2) financial condition;
3) consistent lack of competitiveness;
4) experience or familiarity of the account representative in providing
service to large institutional accounts; and/or
5) when deemed in the best interest of the City.
Before engaging in investment transactions with an institution, the Director of
Finance shall receive a signed certification form attesting that the individual
responsible for the City's account with that firm has reviewed the City's
investment policy and that they agree to undertake necessary and appropriate
efforts to preclude imprudent transactions involving City funds.
B. Internal Controls
The Director of Finance or designee is responsible for establishing and
maintaining an internal control structure designed to ensure that the assets of the
entity are protected from loss, theft or misuse. The internal control structure shall
be designed to provide reasonable assurance that these objectives are met. The
concept of reasonable assurance recognizes that (1) the cost of a control should
not exceed the benefits likely to be derived (2) the valuation of costs and benefits
requires estimates and judgments by management.
Establishment of Internal Controls
The internal controls shall address the following points:
a. Control of collusion
Collusion is a situation where two or more employees are
working in conjunction to defraud.
b. 5e2aration of functions
By separating key functions and having different people perform
each function, each person can perform a "check and balance"
review of the other people in the same area.
c. Separation of transaction a-u-thorily from accountingaccoWnting and re rd
keegiN
By separating the person who authorized or performs the
transaction, from the people who record or otherwise account
for the transaction, a good separation of duties is achieved.
d. Custodial Safekeeping
Securities purchased from any bank or dealer, including
appropriate collateral, should be placed into a third party bank
for custodial safekeeping.
e. Prohibitio f bearer -form sec ri i s
Bearer -form securities are much easier to convert to personal
use, than are securities registered in the name of the City of
Tamarac.
f. Avoidance of physical delivery securities
Book entry securities are much easier to transfer and account
for, since -actual delivery is never taken. Physical delivery
securities must be properly safeguarded as are any valuable
documents. The potential for fraud and loss increases with
physical delivery securities.
g. Clear deleogtion of guthorilyto subordinate staff members
Subordinate staff members must have a clear understanding of
their authority and responsibilities to avoid any improper actions.
Clear delegations of authority also preserves the internal control
structure that is built around the various staff positions and their
respective responsibilities.
h. Specific limitations regarding securities losses and remedial
action
Securities losses may be necessary to adhere to the Investment
Policy. These losses should be restricted to specified purposes
and proper documentation, and the required approval should be
clearly defined for each staff person and further requires the
approval of the City Manager.
9
Written confirmation of telephone transactions for investments
and wire transfeMr
Due to the potential for error and improprieties arising from the
lack of written confirmations, all transactions must be supported
by written communications and approved by the appropriate
person.
Documentation of tr nsactions and strategies
All transactions and the strategies that may have been used to
develop the transactions must be documented in writing and
approved by the appropriate person.
k. Development _of a wire transfer agreement with the
concentration bank
This agreement must outline the various controls and security
provisions for making and receiving wire transfers.
2. Training and Educalign
It is the policy of the City to provide periodic training in investments
for the investment officials through courses and seminars offered by
the Government Finance Officers Association, Municipal Treasurers
Association and/or other qualified and pertinent organizations. Such
training shall be at least eight (8) hours annually of continuing
education in subjects or courses of study related to investment
practices and products.
C. Third -Party Custodial Agreements
The City will execute a Third Party Custodial Safekeeping Agreement with a
commercial bank's trust department which is separately chartered by the United
States Government and the State of Florida. All securities purchased and/or
collateral obtained by the City shall be properly designated as an asset of the
City and held in safekeeping by the trust department and no withdrawal of such
securities, in whole or in part, shall be made from safekeeping except by an
authorized City staff member. The Third -Party Custodial Safekeeping
Agreement shall include letters of authority from the City, details as to
responsibilities of each party, notification of security purchases, sales, delivery,
repurchase agreements, wire transfers, safekeeping and transactions costs,
procedures in case of wire failure of other unforeseen mishaps including liability
of each party.
Internal controls shall include details of delivery vs. payment procedures and
trust receipt documentation. Such controls and procedures shall be reviewed
annually by the External Auditor.
Delivery Versus Payment
All securities purchased or sold will be transferred when possible
only under the "delivery versus payment" (D.V.P.) method or
"payment versus delivery" method to insure that funds or securities
are not released until all criteria relating to the specific transactions
are met.
2. Trust Receipt and Confirmation
The Director of Finance or designee is authorized to accept, on the
behalf of and in the name of the City of Tamarac, bank trust
receipts or confirmations in return for investment of temporarily idle
funds as evidence of actual delivery of the obligations or securities.
Any such trust receipt or confirmation shall fully describe the
various obligations or securities held, together with the specific
identification number of each obligation or security held, and that
they are held for the City of Tamarac. The actual obligations or
securities, whether in book -entry or physical form, on which trust
receipts or confirmations are issued may be held by a third party
custodial bank and/or institution or a designated corresponding
bank or custodian institution which has a correspondent
relationship to the City's third party custodian or its correspondent
institution, who is acting on behalf of and under the obligation as
the City's third party custodian. The above shall apply to all
investments with the exception of securities underlying overnight
repurchase agreements; the custodial relationship for these
instruments is described in Third -Party Custodial Agreements.
VII. AUTHORIZED AND SUITABLE INVESTMENT INSTRUMENTS
A. Investment Types
The following are the authorities for investments and limits on security issues,
issuers, and maturities as established within this policy. The Director of Finance
or designee shall have the option to further restrict investment in selected
instruments, to conform to then -present market conditions.
In accordance with Section 218.415, Florida Statutes, and section 6-26, City
Code, authorized investments include:
1. The Florida Local Government Surplus Trust Fund (Administered by the
State Board of Administration and commonly referred as the "SBA").
II
2. Direct obligations of the U.S. Government which include but are not limited
to Treasury Bills, Treasury Notes, Treasury Bonds and Treasury Strips.
3. Obligations guaranteed by the U.S. Government as to principal and
interest which include but are not limited to Government National
Mortgage Association (GNMA), Farmers Home Administration (FmHA),
Small Business Association (SBA), General Services Administration
(GSA), Federal Housing Administration (FHA), Housing and Urban
Development (HUD), Tennessee Valley Authority (TVA).
4. Time deposits and savings accounts in bank and savings and loan
associations, under the laws of Florida and the United States, doing
business in and situated in -state. All such deposits shall be collateralized
as provided for by Florida Statutes Chapter 280.
5. Securities issued and guaranteed by a federally sponsored corporation
which are backed by, or the entity is capable of borrowing from, the U.S.
Treasury. These securities carry the "implied guarantee" of the U.S.
Government and include the Federal Farm Credit Banks (FFCB), Federal
Home Loan Bank Mortgage Corporation (FHLMC) (participation
certificates), Federal National Mortgage Association (FNMA), Federal
Home Loan Bank (FHLB) or its banks.
6. Commercial Paper of any United States corporation provided such notes
have a rating of A1/P1 by at least two of the five rating agencies.
7. Bankers Acceptance eligible for purchase by the Federal Reserve System
issued by banks having a Moody's or Standard and Poor's commercial
paper rating of at least Al/P1.
8. Securities and Exchange Commission registered money market funds
shares that are open-ended, no-load funds registered under the Federal
Investment Company Act of 1940 Rule 2a-7 — Money Market Funds.
B. Collateralization
Collateral ization will be required on two types of investments: certificates of
deposit and overnight repurchase agreements (as described in the City Code,
section 6-26). In order to anticipate market changes and provide a level of
security for all funds, the collateralization level will be 100.0% at a minimum with
up to 102.0% being desired.
C. Repurchase Agreement
Overnight Repurchase Agreements are the only repurchase agreements
authorized as stated in the City Code, section 6-26. If repurchase agreements
12
are legal and authorized by policy, a Master Repurchase Agreement must be
signed with the bank or dealer. (e.g. a PSA Master Repurchase Agreement or
equivalent).
D. Compliance with City's Bond Covenants
Certain surplus funds available for investment represent capital project funds
generated through the issuance of long term bonded indebtedness, or represent
debt service funds created for the repayment of outstanding principal and interest
on such bonded indebtedness. Whenever ordinances and/or resolutions
adopted by the City Commission which authorize the issuance of such bonded
indebtedness contain specific provisions relative to the investment of funds, the
investment of such funds shall comply with the provision of the applicable bond
ordinance and/or resolution, the requirement contained in this policy, and
applicable statutory or administrative law.
E. Purchase of City's Utility Bonds
The City may use funds on hand to purchase in the open market outstanding
utility system bonds. Pursuant to Resolution R-85-436, section 512(b), monies
held in the General Reserve Fund under the Bond Resolution may be used to
"purchase or redeem bonds." Under Section 208, sub section (a), Director of
Finance is authorized to purchase any outstanding Term Bonds "on the most
advantageous term obtainable with reasonable diligence, such as price not to
exceed the principal of such Term Bonds plus the amount of the redemption
premium, if any, which might on the next redemption date be paid to the holder of
such Term Bonds ... if such Term Bonds should be called for redemption on such
date from monies in the Sinking Fund."
Vill. INVESTMENT INSTRUMENTS NOT AUTHORIZED
Types of securities that are Non -Authorized and not suitable for investment (and
in accordance with Section VII of this policy) include the following as examples:
A. High Grade Corporate Debt
U.S. dollar denominated debt obligations of domestic or foreign corporations, or
foreign sovereignties issued in the United States or in foreign markets. This shall
include, but not be limited to, corporate notes, bonds, medium term notes,
Eurodollar notes and bonds, Yankee notes and bonds.
13
B. Repurchase Agreements
Transaction in which securities are purchased from an institution with an
agreement to re -sell the same securities on a specified future date with the
exception of overnight repos.
C. Derivative Investment Products
This includes but is not limited to collateralized mortgage obligations (CMOs)
interest- only (IOs) and principal only (POs), forwards, futures, currency and
interest rate swaps, options, floaters/inverse floaters, and caps/floors/collars.
IX. INVESTMENT PARAMETERS
A. Diversification
It is the policy of the City of Tamarac to diversify its investment portfolios. Assets
held shall be diversified to control the risk of. loss resulting from over
concentration of assets in a specific maturity, a specific issuer, a specific
instrument, a class of instruments, and a dealer through whom these investments
are bought and sold. Diversification strategies within the established guidelines
shall be reviewed and revised periodically as necessary by the appropriate
management staff and approved by the Director of Finance (See Table 1, page
18),
B. Maximum Maturities
To the extent possible, the City will attempt to match its investments with overall
anticipated cash flow requirements. The City will not invest in long term
securities unless matched to a specific cash flow requirement.
Investments do not necessarily have to be made for the same length of time that
funds are available. The basic criteria for consideration for investments are listed
below.
Keep maturities short in a period of constantly rising interest rates
based on treasury bill auctions or the daily Fed Funds rate.
Keep maturities short in a period of an inverted treasury yield curve
(short term rates are higher than long term rates).
• Maturities should be lengthened when the treasury yield curve is
normal and expected to remain that way based on economic reports
taken as a whole. The yield curve is normal when short term rates are
lower than long term rates.
14
• Maturities should be lengthened when interest rates are expected to
fall based on economic reports taken as a whole.
The yield curves of the market should be analyzed for significant
breaks in yields over various maturity dates. The points at which the
yield curve breaks are the points at which there are significant marginal
declines in yields for incremental changes in the maturity dates.
Investments should be made at the breaks in the yield curve so that
yields will be maximized.
C. Duration
The duration of each investment should not exceed the stated maturity.
D. Security Selection
When purchasing or selling securities, the Director of Finance or designee shall
select the security which provides the highest rate of return within the parameters
of this policy (see Investment Objectives) and given the current objectives and
needs of the City's portfolio. These selections shall be made utilizing one of the
following methods:
• Competitive bids, wherein the City solicits quotes from a minimum of
three firms.
• Comparison to the current market price as indicated by one of the
market pricing resources available to the City (such as the City's
financial advisors, the Wall Street Journal, or a comparable nationally
recognized financial publication providing daily market pricing)
In most situations, the City shall utilize the competitive bid process to select the
securities to be purchased or sold. Selection by comparison to current market
prices, as indicated above, shall be utilized when, in the judgement of two
members of the investment staff, competitive bidding would inhibit the selection
process. Examples of when this might occur are:
When time constraints due to unusual circumstances preclude use of
the competitive bidding process.
When the transaction involves new issues or issues in the 'When
issued° market.
When using the competitive bid process, all bids shall become part of the record
of the specific security involved. When the selection is made based on
comparison to current market price, the following information shall become part
of the record of the security involved:
15
e Reason for use of this method.
e Source of the current market value used.
e Price and/or interest rate quoted by said source.
E. Policies to Enhance Return on Investment
The City's investment strategy is active. Given this strategy, the basis used by
the Director of Finance to determine whether market yields are being achieved is
the State Board of Administration (State Pool). The following specific policies are
set forth below to provide additional guidance in implementing Return on
Investment objectives.
1. Active Portfolio Management
It is the policy of the City to actively manage the investment portfolio within
the constraints outlined in these investment policies. By using an active
portfolio management philosophy, portfolio yield will be enhanced without
an appreciable increase in risk.
2. Portfolio Maturity Management
When structuring the maturity composition of the investment portfolio, it is
the policy of the City to evaluate current economic conditions, relative
interest rate levels and general direction of interest rates. During periods
where economic conditions demonstrate considerable potential for interest
rate increases in the near future, the City will consider appropriate actions
to shorten maturities. Similarly, during periods where economic conditions
demonstrate potential for interest rate decreases in the near future, the
City will consider appropriate actions to lengthen maturities.
3. Bond Swaps
It shall be the policy of the City to pursue bond swaps as they may present
themselves over the term of any investment. All swaps shall adequately
compensate the City for administrative costs, reinvestment risk, and
quality considerations. The following categories of bond swaps are
considered appropriate for the City:
a. Swaps to Increase Yield:
Market aberrations are often caused by supply and demand
conditions for particular securities. For example, if a short
supply exists for a particular security or maturity range, then
16
it may be advantageous to swap out of a security in short
supply and into another similar security.
b. Swaps Between Different Issuers:
Interest rate differentials commonly exist between U.S.
Treasury and agency securities. Periodically, these
relationships may become distorted and thereby present
advantageous swap opportunities. At times it may be difficult
to isolate the swap opportunities that are attributable to this
factor or (1) above.
C. Swaps to Reduce Maturity:
Market aberrations occasionally create a situation where
longer maturity securities are yielding the same or less than
securities with a shorter maturity. Portfolio quality can be
improved by switching from the longer maturity security to
the shorter maturity security with little or no interest penalty.
d. Overall Loss vs. Initial Accounting Loss:
It is the City's policy to avoid all swaps that result in a loss
over the accounting period of the applicable securities.
Other swap transactions may result in initial accounting
losses for the owned security but offer a gain over the
maturity period of the applicable securities. The City is
generally reluctant to enter into this latter form of swap but
reserves the discretion to incur such initial accounting losses
in the event the transaction offers sufficient enhancements to
yield, maturity or credit risk with the approval of the Director
of Finance.
17
Table 1
Investment
Parameters
5%
90%
State Board of Administration (SBA)
N/A
Overnight Repurchase Agreement
N/A
N/A
N/A
U.S. Treasury Securities
15 years
10%
95%
U.S. Government Obligations (e.g. GNMA,
10 years
0%
85%
HUD, FMHA, SBA, GSA, FHA, TVA)
U.S. Government Instrumentalities (e.g.
10 years
0%
85%
FFCB, FHLMC, FHLB, FNMA)
Certificate of Deposits
5 years
0%
85%
Commercial Paper
270 days
0%
10%
10%
Bankers' Acceptance
270 days
0%
Money Market Funds
N/A
0%
20%
X. REPORTING
A. Method
The Director of Finance shall generate monthly reports for the City
Manager and for the City Commission. The report shall summarize the
investment strategies employed and describe the portfolio in terms of
investment securities, maturities, risk characteristic, by class or type, book
value, income earned, and market value as of the report date. Such reports shall
be available to the public.
The Director of Finance or Designee shall provide other such reports and
information as deemed reasonable, upon request from other internal and external
sources.
B. Performance Standards
The investment portfolio will be managed in accordance with the parameters
specified within this policy. The portfolio should obtain a market average rate of
return during a marketteconomic environment of stable interest rates. Portfolio
performance should be compared to appropriate benchmarks on a regular basis.
The City shall use the Florida Local Government Surplus Funds Trust 'Fund
(SBA) plus five (5) basis points as a specific benchmark for the City investment
portfolio.
C. Marking to Market
A statement of the market value of the portfolio shall be issued at least monthly.
This will ensure that the minimal amount of review has been performed on the
investment portfolio in terms of value and subsequent price volatility.
XI. POLICY
A. Exemption
Any investments currently held that do not meet the guidelines of the policy shall
be exempted from the requirements of this policy. At maturity or liquidation, such
monies so invested shall be reinvested only as provided for in this policy.
The Director of Finance or designee may take a sufficient period of time to adjust
the existing portfolio to the provisions of the policy so as not to require the
premature liquidation of any investment.
19
B. Amendment
This policy shall be reviewed on a timely basis. Any material changes to the
Investment Policy should be recommended by the Director of Finance and the
City Manager and approved by the City Commission.
C. Effective Date
This policy shall become effective immediately upon its adoption by the City
Commission.
20
GLOSSARY
BANKERS ACCEPTANCE:
Time draft drawn on and accepted by a bank, the customary mans of effecting
payment for merchandise sold in import-export transactions and a source of
financing used extensively in international trade.
BANKING SERVICES AGREEMENT:
The purpose of the all -encompassing banking services agreement is to combine
all facets of the total banking relationship into a single document. Depending on
the nature and scope of the requesting banking services, the banking services
agreement may include any member of provisions.
CAPITAL ADEQUACY GUIDELINES:
One test of a dealer's financial solvency is the relationship between the firms
capital position and its risk exposure, known as capital adequacy. Losses that
result from trading and credit risk reduce the capital of the firm. After capital is
exhausted, further losses may fall on the firm's customers if the Broker/Dealer is
holding the securities. Capital adequacy guidelines measure trading and credit
risk to the available liquid capital.
CAPITAL PROJECTS FUNDS:
Accounts for financial resources to be used for the acquisition or construction of
major capital facilities.
CERTIFICATE OF DEPOSIT (CD):
A time deposit with a specific maturity evidenced by a certificate. Large
denomination CD's are typically negotiable.
COLLATERAL:
Securities, evidence of deposit or other property which a borrower pledges to
secure repayment of a loan. Also refers to securities pledged by a bank to
secure deposits of public monies.
COMMERCIAL PAPER:
Short-term obligations with maturities ranging from 2 to 270 days issued by
banks, corporations, and other borrowers to investors with temporarily idle cash.
Such instruments are unsecured and usually discounted.
CREDIT RISK:
Credit Risk is the' risk of loss due to the failure of the security issuer or backer.
Credit risk may be mitigated by: limiting investments to the safest types of
securities; prequalifying the financial institutions, brokers/dealers, intermediaries,
and advisors with which the City will do business; and diversifying the investment
portfolio so that potential losses on individual securities will be minimized.
21
DEBT SERVICE FUNDS:
Accounts for the accumulation of resources for, and the payment of, general
long-term principal and interest.
DELIVERY VERSUS PAYMENT:
There are two methods of delivery of securities: delivery versus payment and
delivery versus receipt (also called free). Delivery versus payment is delivery of
securities with an exchange of money for the securities. Delivery versus receipt
is delivery of securities with an exchange of a signed receipt for the securities.
ENTERPRISE FUNDS:
Accounts for operations (a) that are financed and operated in a manner similar to
private business enterprises --where the intent of the governing body is that the
costs of providing goods or services to the general public on a continuing basis
be financed or recovered primarily through user charges; or (b) where the
governing body has decided the periodic determination of revenues earned,
expenses incurred, and/or net income is appropriate for capital maintenance,
public policy, management control, accountability, and other purposes.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC):
A federal agency that insure bank deposits, currently up to $100,000 per deposit.
FEDERAL HOME LOAN BANKS (FHLB):
The institutions that regulate and lend to savings and loan associations. The
Federal Home loan Banks play a role analogous to that played by the Federal
Reserve Bank vis-a-vis member commercial banks.
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA):
FNMA, like GNMA, was chartered under the Federal National Mortgage
Association Act in 1938. FNMA is a federal corporation working under the
auspices of the Department of Housing and Urban Development, H.U.D. It is the
largest single provider of residential mortgage funds in the United States. Fannie
Mae, as the corporation is called is a private stockholder -owned corporation.
The corporation's purchases include a variety of adjustable mortgages and
second loans in addition to fixed-rate mortgages. FNMA assumes and
guarantees that all security holders will receive timely payment of principal and
interest.
FEDERAL RESERVE BANK:
The central bank of the United States created by Congress and consisting of a
seven member Board of Governors in Washington, D.C., 12 regional banks and
about 5,700 commercial banks that are members of the system.
GENERAL FUND:
Accounts for all financial resources except those required to be accounted for in
another fund.
22
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA OR GINNIE
MAE):
Securities guaranteed by GNMA and issued by mortgage bankers, commercial
banks, savings and loan associations, and other institutions. Security holder is
protected by full faith and credit of the U.S. Government. Ginnie Mae securities
are backed by FHA, VA or FMHM mortgages. The term passthroughs is often
used to describe Ginnie Maes,
INTEREST RATE RISK:
Interest rate risk is the risk that the market value of securities in the portfolio will
fall due to changes in the general interest rates. Interest rate risk may be
mitigated by: structuring the investment portfolio so that securities mature to
meet cash requirements for ongoing operations, thereby avoiding the need to sell
securities on the open market prior to maturity; and by investing operating funds
primarily in shorter -term securities or by cash flow projections.
INTERNAL SERVICE FUNDS:
Accounts for the financing of goods or services provided by one department or
agency to other departments or agencies of the governmental units, on a cost
reimbursement basis.
LIQUIDITY:
A liquid asset is one that can be converted easily and rapidly into cash without a
substantial loss of value. In the money market, a security is said to be liquid if
the spread between bid and asked prices is narrow and reasonable size can be
done at those quotes.
MONEY MARKET FUND:
Open-ended mutual funds that invests in commercial paper, banker's
acceptance, repurchase agreements, government securities, certificates of
deposit, and other highly liquid and safe securities. The funds net asset value
remains a constant $1 a share — only the interest rate goes up or down.
PORTFOLIO:
Combined holding of more than one stock, bond, commodity, real estate
investment, cash equivalent, or other asset by an individual or institutional
investor. The purpose of a portfolio is to reduce risk by diversification.
PRIMARY LEADER:
A group of government securities dealers that submit daily reports of market
activity and positions and monthly financial statements to the Federal Reserve
Bank of New York and are subject to its informal oversight. Primary dealers
include Securities and Exchange Commission (SEC) registered securities broker -
dealers, banks, and a few unregulated firms.
23 '
PRUDENT PERSON RULE:
An investment standard. In some states the law requires that a fiduciary, such as
a trustee, may invest money only in a list of securities selected by the state--the-
so-called legal list. In other states the trustee may invest in a security if it is one
which would be bought by a prudent person of discretion and intelligence who is
seeking a reasonable income and preservation of capital.
QUALIFIED PUBLIC DEPOSITORIES:
A financial institution which does not claim exemption from the payment of any
sales or compensating use or ad valorem taxes under the laws of this state,
which has segregated for the benefit of the commission eligible collateral having
a value of not less than its maximum liability and which has been approved by
the Public Deposit Protection Commission to hold public deposits.
(MARKET) RATE OF RETURN:
The yield obtainable on a security basis on its purchase price or its current
market price. This may be the amortized yield to maturity on a bond or the
current income return.
REPURCHASE AGREEMENT (RP or REPO):
A holder of securities sells these securities to an investor with an agreement to
repurchase them at a fixed price on a fixed date. The security "buyer' in effect
lends the "sellers" money for the period of the agreement, and. the terms of the
agreement are structured to compensate him for this: Dealers use RP
extensively to finance their positions. Exception: When the FED is said to be
doing RP, it is lending money, that is, increasing bank reserves.
SAFEKEEPING:
A service to customers rendered by banks for a fee whereby securities and
valuables of all types and descriptions are held in the bank's vaults for
protections.
SAFETY:
Relates to the volatility of the principal of the investment. Complete safety
means no increase or decrease in nominal value. The original sum invested is
returnable to the investor either at the investor's option or at the end of some
short contractual period.
SECONDARY MARKET:
Exchanges and over-the-counter markets where securities are bought and sold
subsequent to original issuance, which took place in the PRIMARY MARKET.
Proceeds of secondary market sales accrue to the selling dealers and investors,
not to the companies that originally issued the securities. Market in which
money-market instruments are traded among investors.
24
SECURITIES & EXCHANGE COMMISSION:
Agency created by Congress to protect investors in securities transactions by
administering securities legislation.
SPECIAL REVENUE FUNDS:
Accounts for the proceeds of specific revenue sources that are legally restricted
to expenditure for specified purposes.
THIRD PARTY CUSTODIAL AGREEMENTS:
A safekeeping contract with a trust custodian not involved in the investment
transaction.
TREASURY MILLS:
A non -interest bearing discount security issued by the U.S. Treasury to finance
the national debt. Most bills are issued to mature in three months, six months, or
one year.
TREASURY BONDS:
Long-term U.S. Treasury securities having maturities of more than ten years.
TREASURY NOTES:
Intermediate term coupon bearing U.S. Treasury securities having initial
maturities of from one to ten years.
TRUST AND AGENCY FUNDS:
Accounts for assets held by a governmental unit in a trustee capacity or as an
agent for individuals, private organizations, other governmental units, and/or
other trust funds.
UNIFORM NET CAPITAL RULE:
Securities and Exchange Commission requirement that member firms as well as
nonmember securities maintain a maximum ratio of indebtedness to liquid capital
of 15 to 1,; also called net capital rule and net capital ratio. Indebtedness covers
all money owed to a firm, including margin loans and commitments to purchase
securities, one reason new public issues are spread among members of
underwriting syndicates. Liquid capital includes cash and assets easily
converted into cash.
WIRE TRANSFER AGREEMENTS:
Many banks require an executed Wire Transfer Agreement from their commercial
customers - those who utilize the Fedwir6 system as a means for transferring
large amounts of funds on a regular basis.
25
YIELD.
The rate if annual income return on an investment, expressed as a percentage.
(A) INCOME YIELD is obtained by dividing the current dollar income by the
current market price for the security. (B) NET YIELD or YIELD TO MATURITY is
the current income yield minus any premium above par or plus any discount from
par in purchase price, with the adjustment spread over the period from the date
of purchase to the date of maturity of the bond.
26
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City of Tamarac
AGREEMENT AMENDMENT
Purchasing and ContractS Division
TR #10933 EXHIBIT B
BETWEEN THE CITY OF TAMARAC
r III
KIRKPATRICK PETTIS CAPITAL MANAGEMENT, INC.
The Ci� of Tamarac, a municipal corporation, with principal offices located at
7525 NW 88 Avenue, Tamarac FL 33321 (CITY), and Kirkpatrick Pettis Capital
Management Inc., a Colorado corporation, with principal offices located at 1600
Broadway, Suite 1100, Denver CO 80202, (CONTRACTOR), agree to amend the
original Agreement dated April 14, 2003 as follows:
Per the terms of Article 2 — Effective Date of the original Agreement, the City and
Kirkpatrick Pettis Capital Management, Inc. exercise the first renewal option, effective
for the term April 14, 2004 — April 13, 2005.
All other provisions of the original agreement remain in effect as written.
IN' WITNESS WHEREOF, the parties hereby have made and executed this
Amendment to Agreement on the respective dates under each signature, the City of
Tamarac signing through its Mayor and City Manager, and Kirkpatrick Pettis Capital
Management, Inc., signing by and through its Senior Vice President, duly authorized to
execute same.
ATTEST:
Marion Swenson, CMC
City Clerk
.4 ho
Date
CITY OF TAMARAC
Schreiber, Mayor
0
Date
(Jeffrey L. IlleY,-City Manager
Date
vale
. City of Tamarac
ATTEST:
(Corporate Secr tary)
and Contracts Division
Kirkpatrick Pettis Capital Management,
Inc.
Company Name
Signaturif of Senior Vice President
j<e-r't' 1. Lm^jo Christopher K. Blackwood
Type/Print. Name of Corporate Secy. Type/Print Name of Senior Vice President
.12- o
�!26RP4RATE SEAL) Date
CORPORATE ACKNOWLEDGEMENT
STATE OF kle r a 0 4
COUNTY OF r :SS
I HEREBY CERTIFY that on this day, before me, an Officer duly authorized in the State
aforesaid and in the County aforesaid to take acknowledgments, personally appeared
Christopher K. Blackwood Senior Vice President of Kirkpatrick Pettis Capital
e
Management, Inc., a /+r o�4 Corporation, to me known to be the person(s) described
in and who executed the foregoing instrument and acknowledged before me that he/she
executed the same.
WITNESS my hand and official seal this day of Jj1,-.'1, 2004.
I -A P. Z2 1 QZ
Signa u e of Nothry Public
a. ,oTA4 ,G+ State of F iat Large
N• /'U8�1G VrMtr.��- L. Crca� l
• � Print, Type or Stamp
OF co��� Name of Notary Public
My Cn•nmno- - .;,;re 711/M [�' Personally known to me or
❑ Produced Identification
Type of I.D. Produced
❑ DID take an oath, or
[�'' DID NOT take an oath.
CITY OF TAMARAC
6e Schreiber, Mayor
Date
Jeffr iller, City Manager
W I Arolm -- E
------
City of 7 amarac
and Contracts Division
AGREEMENT AMENDMENT
BETWEEN THE CITY OF TAMARAC
AND
KIRKPATRICK PETTIS CAPITAL MANAGEMENT, INC.,
A SUBSIDIARY OF THE DAVIDSON COMPANIES
The City of Tamarac, a municipal corporation, with principal offices located at 7525
NW 88th Avenue, Tamarac FL 33321 (CITY), and Kirkpatrick Pettis Capital Management
Inc., a subsidiary of The Davidson Companies, a Nebraska corporation, with principal
offices located at 1600 Broadway, Suite 1100, Denver CO 80202, (CONTRACTOR), agree
to amend the original Agreement dated April 14, 2003 as follows:
Per the terms of Article 2 -- Effective Date of the original Agreement, the City and
Kirkpatrick Pettis Capital Management, Inc. exercise the second renewal option, effective
for the term April 14, 2005 — April 13, 2006.
All other provisions of the original agreement remain in effect as written.
IN WITNESS WHEREOF, the parties hereby have made and executed this
Amendment to Agreement on the respective dates under each signature, the City of
Tamarac signing through its Mayor and City Manager, and Kirkpatrick Pettis Capital
Management, Inc., signing by and through its Senior Vice President, duly 'authorized to
execute same.
ATTEST:
Marion Swenson, CMC
City Clerk
City of Tamarac
Purchasing and Contracts Division
ATTEST:
(Corporate Secretary)
Kirkpatrick Pettis Capital Management,
Inc., a Subsidiary of The Davidson
Companies
Company �Name
Signature of Senior Vice President
-j G,-' - I�W scb- Christopher K.-Blackwood
Type/Print Name of Corporate Secy, Type/Print Name of Senior Vice President
(CORPORATE SEAL) Date
CORPORATE ACKNOWLEDGEMENT
STATE OF>
:SS
COUNTY OF— Zl—,,,�,._
I HEREBY CERTIFY that on this day, before me, an Officer duly authorized in the State
aforesaid and in the County aforesaid to take acknowledgments, personally appeared
Christopher K. Blackwood, Senior Vice President of Kirkpatrick Pettis Capital
Management, Inc., a subsidiary of the Davidson Companies, a Nebraska Corporation, to
me known to be the persons) described in and who executed the foregoing instrument
and acknowledged before me that he/she executed the same.
WITNESS my hand and official seal this /day of 7 > 7 -- , 2005.
woe.r"Ov►.aenaoaa
6-e , I
Signature of Notary Public
State of Large
CC p�
Print, Type or Stamp
Name of Notary Public
❑ Personally known to me or
❑ Produced Identification
Type of I.D. Produced
❑ DID take an oath, or
❑ DID NOT take an oath.
Client#- 12669
DAVIDSONA
ACORD. CERTIFICATE
OF LIA ILITY
INSURANCET—o"11113/05
°
PRODUCER
Payne Financial Group
P.O. Box 3327
THIS CERTIFICATE 13 ISSUED AS A MATTER OF INFORMATION
ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
145 West Front Street
Missoula, MT 59806.0638
INSURERS AFFORDING COVERAGE
NAIL 0
INSURED Davidson Companies
P. 0. Box 5015
Great Falls, MT 59403
1 '
1 vvv
7
INSURER A. St. Paul Fire and Marine /
INSURER 8:
INSURER C:
INSURER D;
INSURER E:
COVERAGES
THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING
ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR
MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH
POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS,
w3m
Dull ARE
TYPE OF INSURANCE
POLICY NUMBER
POLICY PG
L
LIMITS
A
GENERAL LIMIL/TY
FS06303350
10/01/04
10/01105
EACH OCCURRENCE
f
X COMMERCIALGENERAL LIABILITY
PR I IS iE2DA A TO RENTED
f1 OOOO
CLAIMS MADE 51 OCCUR
MED EXP (Any one person)
f5 000
PERSONALAApVINJURY
51 000000
GENERAL AGGREGATE
f2 000 000
OEN% AGGREGATE LIMIT APPLIES PER:
PRODUCTS - COMPIOP AGO
$2 00O 000
POLICY PRO- LOC.
A
AUTOMOBILE LIABILITY
X ANY AUTO
F506303350
10/01/04
10/01/05
COMBINED SINGLE LIMIT
(EaawWOnt)
$1,000,000
BODILY INJURY
(Per penon)
f
ALL OWNED AUTOS
SCHEDULED AUTOS
.
BODILY INJURY
(Per accident)
f
X HIRED AUTOS
X NON -OWNED AUTOS
PROPERTY DAMAGE
(Per eedldent)
f
GARAGE LIABILITY
AUTO ONLY - EA ACCIDENT
OTHER THAN EA ACC
S
ANY AUTO
$
AUTO ONLY: AGO
EXCESSIUMBRELLA LIABILITY
EACH OCCURRENCE
OCCUR L _ J CLAIMS MADE
AGGREGATE
f
s
f
f
ZDEDUCT18LC
RETENTION f
WORKERS COMPENSATION AND,InWC
STATU- OTH.
9MP40YBRS, LIABILJTY
ANY PROPRIETOR/PARTNERIEXECUTIVE
E.L. EACH ACCIDENT
f
E.L. DISEASE - EA EMPLOYEE
f
OFFICEWMEM9ER EXCLUDED?
SDON dOscHtNr under
tAL PR VI I N
E.L. DISEASE - POLICY LIMIT
s
OTHER
OKSCRIPTION OF OPERAnONS / LOCATIONS / VEHICLES I EXCLUSION$ ADDED BY BNOORS&M&NT I SPECIAL PROVISIONS
Named Insured includes.
0. A. Davidson & Co.
Kirkpatrick Pettis, a division of 0. A. DAvidson 8 Co. Fixed Income
Capital Markets.
(See Attached Descriptions)
CERTIFICATE HOLDER CANCELLATION
SHOULD ANY Of THE ABOVE DBSCRUBO POLICIES BE CANCELLED BEFORE THE EXPIRATION
City of Tamarac, Florida
DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL ,.,30— DAYS WRITTEN
7525 N.W. 88th Avenue
NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO 00 $O SHALL
Tamarac, FL 33321
IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR
REPRR$BNTATIVB$.
AUTHORIZED REPRESENTATIVE
Ile
ACORD 25 (2001/08) 1 of 3 OS178937IM171212 1CM 0 /fCORD CORPORATION 1988
IMPORTANT
If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement
on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may
require an endorsement. A statement on this certificate does not confer rights to the certificate
holler in lieu of such endorsement(s).
DISCLAIMER
The Certificate of Insurance on the reverse side of this form does not constitute a contract between
the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it
affirmatively or negatively amend, extend or after the coverage afforded by the policies fisted' thereon.
ACORD 25.3 (2001100) 2 of 3 #S1789371M/71212
AMS 25.3 (2001/08) 3 of 3 #S178937/MII1212
ACORN., CERTIFICATE OF LIABILITY INSURANCE DATE os°"YY''
PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
Payne Financial Group (Msl-CL) ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
P.O. Box 3337 HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
145 West Front Street ALTER THE COVERAGE AFFORD90 BY THE POLICIES BELOW.
Missoula, MT 59808.0838 INSURERS AFFORDING COVERAGE NAIC 8
INSURED INSURERA: St. Paul Mercu
Davidson Companies INSURER B:
P.O. Sox 5015 INSURER C:
Great Falls, MT 59403 IN D:
INSURER E:
COVERAGES
THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING
ANY REQUIREMENT. TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR
MAY PERTAIN, THE INSURANCEAFFOROED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH
POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
"11511t
Dolt
TYPE OF INSURANCE
POLICY NUMBER
PO Y R C
1
LIMITS
GENERAL LIABILITY
EACH OCCURRENCE
f
COMMERCIAL GENERAL LIABILITY
AMAGE TO RENTED
f
CLAIMS MADE OCCUR
MED EXP An ene Person)
S.-
PERSONAL & ADV INJURY
;
GENERAL AGGREGATE
;
GENL AGGREGATE LIMIT APPLIES PER:
PRODUCTS - COMP/OP AGG
f
POLICY11 PR LOC
AUTOMOBILE
LIABILITY
ANY AUTO
COMBINED SINGLE LIMIT
(Ee aaWdent)
f
BODILY INJURY
(Per person)
ALL OWNED AUTOS
SCHEDULED AUTOS
BODILY INJURY
(Per accident)
S
HIRED AUTOS
NON -OWNED AUTOS
PROPERTY DAMAGE
(Per awident)
f
tiARAOF
LIABILITY
AUTO ONLY - EA ACCIDENT
f
OTHER THAN EA ACC
S
7
ANY AUTO
S
AUTO ONLY; AGO
11IOESHUMBRELLA LIABILITY
EACH OCCURRENCE
i
OCCUR CLAIMS MADE
AGGREGATE
S
S
$
DEDUCTIBLE
RETENTION f
WORKER: COMPENSATION AND
WC STATU- OTH-
EMPLOYERS* LIABILITY
ANY PROPRE:TOWPARTNERIEXEC(1TIVE
E.L. EACH ACCIDENT
;
E.L. DISEASE • EA EMPLOYEE
S
OFFICERJMEMBER F-XCLUOED?
It yes. describe under
SP PR I S
E.L. DISEASE • POLICY LIMIT
S
A
OTHER SEE BELOW
483PS0011
01/01/03
01/01/06
SEE BELOW
D92WRWTION OF OPERATIONS I LOCATIONS / VEHICLES I EXCLUSIONS ADDED BY ENDORSEMENT I SPECIAL PROVISIONS
Named Insured includes-.
D. A. Davidson III Co.
Kirkpatrick Pettis, a division of D. A. Davidson & Co. Fixed Income
Capital Markets.
(See Attached Descriptions)
CERTIFICATE HOLDER CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIERD POLICIES BB CANCELLED BEFORE THE EXPIRATION
City of Tamarac, Florida
DATE THEREOF. THE ISSUDKO INSURER WILL ENDEAVOR TO MAIL I _ DAYS WRITTEN
7525 N.W. 88th Avenue
NOTICE To THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO OO 50 SHALL
Tamarac, FL 33321
IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR
REP S NTATIVBS.
AUTHORIZED REPRBaENTATIVE
ACORD 25 (2001108)1 of 3 #8178936/M178935 1CM o ACCORD CORPORATION 1988
IMPORTANT
If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement
on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may
require an endorsement. A statement on this certificate does not confer rights to the certificate
holder in lieu of such endorsement(s).
DISCLAIMER
The Certificate of Insurance on . the reverse side of this form does not constitute a contract between
the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it
affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon.
'%% rWK r LJti7 14vuvual 2 of 3 03178936/M178935
AM5 25.3 (2001/08) 3 of 3 #S178938lM178935
Ciinntd- 19RR8
aT TITITIT61-7T1
ACORD. CERTIFICATE OF LIABILITY INSURANCE
DATE (MMMOrM YI
01113105
PRODUCER
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
Payne Financial Group (Msl-CL)
P.O, Box 3327
ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
145 West Front Street
Missoula, MT 59806-0638
INSURERS AFFORDING COVERAGE
NAIL
INSURED
INSURER A; Cincinnati Insurance Com an +} i
Davidson Companies
P. O. Box 5015
Great Falls, MT 59403
INSURER Bt
INSURER Q
INSURER D:
INSURER E:
COVERAGES
THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING
ANY REQUIREMENT. TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR
MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH
POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
WWI
ADEr'LTR
TYPE OP INSURANCE
POLICY NUMBER
PO
IMMIDONY1
I I
DATE 1MMffiQ(X)3
LIMITS
GIINRRAL LIABILITY
—RATE
EACH OCCURRENCE
$
COMMERCIAL GENERAL LIABILITY
OAMAtl TO RENTED
S
CLAIMS MADE13 OCCUR
MED EXP (Any oneperson)
S
PERSONAL A ADV INJURY
S
GENERAL AGGREGATE
$
GEN'L AGGREGATE LIMIT APPLIES PER:
PRODUCTS - COMP/017 AGG
S
POLICY 7 PRO- LOC
AUTOMOBILE LIABILITY
COMBINED SINGLE LIMIT
S
ANY AUTO
Me accident)
BODILY INJURY
ALL OWNED AUTOS
SCHEDULED AUTOS
(PM Par—)
S
BODILY INJURY
S
HIRED AUTOS
NON -OWNED AUTOS
(Per accident)
PROPERTY DAMAGE
$
(Per scadol)
GARAGE
LIABILITY
AUTO ONLY - EA ACCIDENT
f
OTHER THAN EA ACC
S
ANY AUTO
3
AUTO ONLY: AGO
BXCESB/UMBRELLA LIABILITY
EACH OCCURRENCE
S
OCCUR CLAIMS MADE
AGGREGATE
3
S
DEDUCTIBLE
S
RETENTION $
WORKERS COMPENSATION AND
WC STATU- tlTH-
VA
EMPLOYERV LIABILITY '
ANY PROPRIETOWPARTNER/EXECUTrvE
E.L. EACH ACCIDENT
S
E.L. DISEASE • EA EMPLOYEE
S
OFFICER/MEMBER EXCLUDED7
If yw, de>tcfBe and■r
SO I& PR VISIONS below
E.L. DISEASE • POLICY LIMIT
A
OTHER SEE BELOW
BCPS737099
10/01/04
10/01/06
SEE BELOW
DI33CRIPTION OF OPERATIONS / LOCATIONS / VEHICLES f EXCLUSIONS ADDED BY ENDORSSMENT / SPECIAL PROVISIONS
Named Insured includes:
D. A. Davidson 1k Co.
Kirkpatrick Pettis, a division of D. A. DAvldson & Co. Fixed Income
Capital Markets.
(See Attached Descriptions)
City of Tamarac, Florida
7525 N.W. 88th Avenue
Tamarac, FL 33321
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEPORS THE BXPM ATION
DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 1 ID DAYS WRITTEN
NOTICE To THE CERTIFICATE HOLDER NAMED TO THE LEPT, BUT FAILURE To DO SO SHALL
IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR
ACORD 25 (2001108)1 of 3 *179233
REPRESENTATIVE
1r-lu 0 AbORD CORPORATION 1988
IMPORTANT
If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement
on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may
require an endorsement. A statement on this certificate does not confer rights to the certificate
holder In lieu of such endorsement(a).
DISCLAIMER
The Certificate of Insurance on the reverse side of this form does not constitute a contract between
the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it
affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon.
ACORD 254 (200IMS) 2 of 3 #173933
DESRLPT��NS „�Cont
i inued from Page 1 ),;
FIDUCIARY LIABILITY - LIMIT $3,000,000 AGGREGATE
AMS 25.3 (2001/08) 3 of 3 #178933
r1se..OR 41o24 nAnAVInS1
ACORD. CERTIFICATE OF LIABILITY INSURANCE
0113, s°"�"'
PRODUCER
Payne Financial Group (Msi-CL)
P.O. Box 3327
145 West Front Street
Missoula, MT $E806-0638
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
INSURERS AFFORDING COVERAGE
NAIC s
INSURED
D. A. Davidson d. Co., Inc.
P. D. Box 6015
Great Falls, MT 59403
INSURER A. Wausau In9LIranC2 Com anies
INSURER 9:
INSURER C:
INSURER 0:
INSURER E:
COVERAGES
THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING
ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR
MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN
IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH
POLICIES, AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
TYPE OF INSURANCE
POUCY MUMMER
POLICY EF E
POLICY EXPIRATION
LIMRB
OtNEBAL LIABILITY
EACH OCCURRENCE S
AMA TO RENTED :
COMMERCIAL GENERAL LIABILITY
CLAIMS MADE13 OCCUR
MED EXP An ane pareml S
PERSONAL A ADV INJURY $
GENERAL AGGREGATE $
GENT. AGGREGATE UNIT APPLIES PER:
PRODUCTS - COMPIOP AGO i
POLICY PR LOC
AUTOM()§" LIABILITY
COMBINED SINGLE LIMIT =
(Ea *=Wwnt)
ANY AUTO
ALL OWNED AUTOS
BODILY INJURY :
(Par P—)
SCHEDULED AUTO$
HIREDAUTOS
BODILY INJURY :
_ (Per accident)
NON -OWNED AUTOS
PROPERTY DAMAGE _
(Per accident)
GARAGE LIABILITY
AUTO ONLY - EA ACCIDENT S
ANY AUTO
OTHER THAN FA ACC S
L �
AUTO ONLY. AGG S
EXCESSAIMBRILLA LIABILITY
EACH OCCURRENCE $
OCCUR 0 CLAIMS MADE
AOGREOATE S
S
DEDUCTIBLE
_
RETENTION S
A WORKERS COMPENSATION WCKZ91542753024
S
STATU- pTH•
10/01/04 10/01/05 X1 TORY
AND
EMPLOYERS' wimuTY
E.L. EACH ACCIDENT 8500 000
ANY PROPRIETORIPARTNE ECUTIYE
$500000
OFFICER/MEMBER EXCLUDED?
E.L. DISEASE - EA EMPLOYEE
8PIAL PHROVISO"
E.L. DISEASE • POLICY LIMIT 500 000
OTHER
DESCRIPTION OF OPERATIoNS I LOCATIONS I VEHICLES I EXCLUSIONS ADDED BY ENDORSEMENT I SPECIAL PROVISIONS
Waiver of Subrogation applies in favor of City of Tamarac, Florida.
CERTIFICATE HOLDER
CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION
City of Tamarac, Florida
DATE THEREOF. THE ISSUING INSURER WILL ENDEAVOR TO MAIL '40_ DAYS WRITTEN
7525E N.W. 88th Avenue
NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT. BUT FAILURE TO 00 SO SHALL
Tamarac, FL 33321
IMPOSE No OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR
REPR SENTATNES.
REVISED -REPLACES PREVIOUSLY
AUTHORIZED REPRESENTATIVE
1
ACORD 25 (2001MG) 1 of 2 #$178971/M178970
1CM 0 ACORD CORPORATION 1988
IMPORTANT
It the certificate holder is an ADDITIONAL INSURED, the policy(ias) must be endorsed. A statement
on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may
require an endorsement. A statement on this certificate does not confer rights to the certificate
holder in lieu of such endorsement(s).
DISCLAIMER
The Certificate of Insurance on the reverse side of this form does not constitute a contract between
the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it
affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon.
ACORO 25-S (2001108) 2 of 2 #S1789711M178970
TR #10933 EXHIBIT C
Temp. Reso 10671 — March 10, 2005
Page 1 of 3
CITY OF TAMARAC, FLORIDA
RESOLUTION NO. 2005 L�
A RESOLUTION OF THE CITY COMMISSION OF THE CITY
OF TAMARAC, FLORIDA AUTHORIZING THE
APPROPRIATE CITY OFFICIALS TO EXERCISE THE
SECOND RENEWAL OPTION TO THE EXISTING
AGREEMENT BETWEEN THE CITY OF TAMARAC AND
KIRKPATRICK PETTIS CAPITAL MANAGEMENT, INC., A
SUBSIDIARY OF THE DAVIDSON COMPANIES, FOR
INVESTMENT ADVISORY SERVICES FOR A ONE-YEAR
PERIOD EFFECTIVE APRIL 14, 2005, THROUGH APRIL 13,
2006; PROVIDING FOR CONFLICTS; PROVIDING FOR
SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, the City utilized due diligence in seeking responses for qualified firms to
provide investment advisory services to the City; and
WHEREAS, Resolution R-2003-77 dated April 9, 2003, authorized execution of an
agreement with Kirkpatrick, Pettis, Smith, Polian, Inc., Langhoff Brooks Division
(Contractor) providing for Investment Advisory Services (a copy of said resolution and
agreement is hereto attached as Exhibit "A"); and
WHEREAS, Resolution R-2003-254 dated November 12, 2003, assigned the
aforementioned agreement for Investment Advisory Services to Kirkpatrick Pettis Capital
Management, Inc., under the same terms and conditions; and
WHEREAS, Resolution R-2004-82 dated April 14, 2004, authorized the execution of
the first renewal option Effective April 14, 2004 through April 13, 2005, a copy of said
Renewal Agreement is attached hereto as Exhibit "B"; and
WHEREAS, Kirkpatrick Pettis Capital Management, Inc. was acquired by the
Davidson Companies, and assigned accordingly to Kirkpatrick Pettis Capital Management,
Temp. Reso 10671 — March 10, 2005
Page 2 of 3
Inc. , a subsidiary of the Davidson Companies effective January 1, 2005; and
WHEREAS, Article 2 of the Agreement for Investment Advisory Services provides
the City with the option to renew the Agreement for four additional one-year periods; and
WHEREAS, Kirkpatrick Pettis Capital Management, Inc. has agreed to renew for a
one-year period, copy of said renewal attached hereto as Exhibi "C";. and
WHEREAS, available funds exist in the current budget for said purpose; and
WHEREAS, the Director of Finance recommends exercising the second renewal
option to the existing Agreement with Kirkpatrick Pettis Capital Management, Inc., for a
one-year period, effective April 14, 2005, through April 13, 2006; and
WHEREAS, the City Commission of the City of Tamarac, Florida deems it to be in
the best interests of the citizens and residents of the City of Tamarac to renew the contract
between the City of Tamarac, Florida, and Kirkpatrick Pettis Capital Management, Inc., for
a one-year period, effective April 14, 2005, through April 13, 2006, as the City's investment
advisor in order to continue receiving .,professional investment advice regarding the
investment of City funds.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF TAMARAC, FLORIDA:
SECTION 1: The foregoing "WHEREAS" clauses are hereby ratified and
confirmed as being true and correct and are hereby made a specific part of this Resolution.
SECTION 2: The appropriate City officials are hereby authorized to exercise
the second renewal option to the April 9, 2003, Investment Advisory Services Agreement
between the City of Tamarac, Florida, and Kirkpatrick Pettis Capital Management, Inc., for
Investment Advisory Services for a one-year period, effective April 14, 2005, through April
13, 2006.
Temp. Reso 10671 — March 10, 2005
Page 3 of 3
SECTION 3: All resolutions or parts of resolutions in conflict herewith are
hereby repealed to the extent of such conflict.
SECTION 4: If any clause, section, other part or application of this Resolution
is held by any court of competent jurisdiction to be unconstitutional or invalid, in part or
application, it shall not affect the validity of the remaining portions or applications of this
Resolution.
SECTION 5: This Resolution shall become effective immediately upon its
passage and adoption.
PASSED, ADOPTED AND APPROVED this 13"' day of April, 2005.
E SCHREIBER,
MAYOR
ATTEST:
.r
ECORD OF COMMISSION VOTE:
MARION SWE SON, CMC MAYOR SCHREIBER
CITY CLERK DIST 1: COMM. PORTNER
DIST 2: V/M TALABISCO
DIST 3: COMM. SULTANOF
DIST 4: COMM. ROBERTS 6
I HEREBY CERTIFY that
I have approved this
RESOLUTION as to form.
MITCH L S. K T
CITY ATTORN Y
Davidson TR #10933 EXHIBIT D
Fixed Income Management
REGISTERED INVESTMENT ADVISER
March 23, 2006
Mr. Keith Glatz
Purchasing Contracts Manager
City of Tamarac
7525 NW 88`h Ave.
Tamarac, FL 33321
Dear Mr. Glatz,
Kirkpatrick Pettis Capital Management (KPCM) changed its name on March 2, 2006.
Our new name is Davidson Fixed Income Management (DFIM). With this name change,
our ownership did not change therefore all insurance and contractual obligations of
KPCM transferred to DFIM. If you have any questions please contact me at 303-764-
5749. Information on our services can be viewed at www.davidsonFIM.com,
Thank you, ;7
�' hris Blackwood
Managing Director
Davidson Fixed Income Management
DENVER 1600 Broadway, Suite 1 100 ' (303) 764-6000 ' (800) 617-2501 ' Fox (303) 893.5803
PORTLAND 5550 S.W. Macadam Ave, Suite 110 ' (503) 243-7770 ' (866) 999-2374 • Fax (503) 243-7771
SEATTLE I Columbia Cenler ' 701 Sth Ave., Suite 3100 • (206) 389.4029 • (866) 999-2374 ' Fax (206) 389-8037
www.davidsonFlM.com
Purchasing and
Contracts Division
March 27, 2006
Christopher K. Blackwood
Managing Director
Davidson Fixed Income Management
1600 Broadway, Suite 1100
Denver, CO 80202
RE: Agreement Renewal Amendment
RFP 03-14R, Investment Advisory Services
Dear Mr. Blackwood:
The City's Agreement with your company to provide financial advisory services will expire
on April 13, 2006. The original agreement dated April 14, 2003 provides for four additional
one-year renewals. This is the third renewal of the subject contract.
Please execute two (2) originals of the attached Amendment and have your company's
Corporate Secretary attest the signature on each original. In addition, please ensure that
the Corporate Acknowledgement is fully notarized. We ask that you return the two (2)
original documents to Purchasing no later than March 31, 2006. In addition, the City will
require an updated Certificate of Insurance as soon as possible.
Upon execution by the City and approval by the City Commission, an original will be
returned to you for your records. If you have any questions, do not hesitate to contact me
at (954) 597-3567.
Sincerely,
Keith K. Glatz, CPPO
Purchasing and Contracts Manager
c: Steven Chapman II, Director of Finance
7525 NW 88th Avenue ■ Tamarac, Florida 33321-2401 ■ (954) 597-3570 ■ Fax (954) 597-3565 ■ www.tomarac.org
Equal Opportunity Employer
It
City of Tamarac Purchasing and Contracts Division
AGREEMENT AMENDMENT
BETWEEN THE CITY OF TAMARAC
AND
DAVIDSON FIXED INCOME MANAGEMENT
The City of Tamarac, a municipal corporation, with principal offices located at 7525
NW 881" Avenue, Tamarac FL 33321 (CITY), and Davidson Fixed Income Management, a
Nebraska corporation, with principal offices located at 1600 Broadway, Suite 1100, Denver
CO 80202, (CONTRACTOR), agree to amend the original Agreement dated April 14, 2003
as follows:
Per the terms of Article 2 — Effective Date of the original Agreement, the City and
Davidson Fixed Income Management exercise the third renewal option, effective for the
term April 14, 2006 — April 13, 2007.
All other provisions of the original agreement remain in effect as written.
IN WITNESS WHEREOF, the parties hereby have made and executed this
Amendment to Agreement on the respective dates under each signature, the City of
Tamarac signing through its Mayor and City Manager, and Davidson Fixed Income
Management, signing by and through its Managing Director, duly authorized to execute
same.
ATTEST:
4 V'=� I JAVAIL
r
Marion Swenson, CM
City Clerk
rill Aaa
Ddfd
CITY OF TAM C
Beth Flan Baum-Talabi co, Mayor
4j L3I0�2
Date
Jeffrey L. i er, City Manager
Date
Date
as to form and legal sufficiency:
S. Gorfi j, City Attorney
at-l►3Jr�6
A.
City of Tarnarac
ATTEST:
(Corporate Secretary)
Purchasing and Contracts Division
DAVIDSON FIXED INCOME
MANAGEMENT
ZCompan Name
Signature of Managing Director
Tom S. Nelson Christopher K. Blackwood
Type/Print Name of Corporate Secy. Type/Print Name of Senior Vice President
2
(CORPORATE SEAL) Date
CORPORATE ACKNOWLEDGEMENT
STATE OF
COUNTY OF:SS
I HEREBY CERTIFY that on this day, before me, an Officer duly authorized in the State
aforesaid and in the County aforesaid to take acknowledgments, personally appeared
Christopher K. Blackwood, Managing Director of Davidson Fixed Income Management, a
Nebraska Corporation, to me known to be the person(s) described in and who executed
the foregoing instrument and acknowledged before me that he/she executed the same.
WITNESS my hand and official seal this --� 2 day of 2006.
Signature of Nota Public
vP��E K ' STD,Q State of Fie4da at Large
aOTAR
zti) >Y S rZ
Print, Type or Stamp
�A• pUg0O •'� Name of Notary Public
OF.04- Personally known to me or
❑ Produced Identification
My Can Expires 08I31=
Type of I.D. Produced
❑ DID take an oath, or
❑ DID NOT take an oath.