DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
Professional Services Agreement for Investment Consulting and Investment Training Services
SUMMARY:
This Ordinance approves a professional services agreement with Patterson Capital Management to provide investment training and consultant services to the City of San Antonio for a period of three (3) years, commencing on October 1, 2016, and ending on September 30, 2019; and authorizes other matters incident and related thereto.
BACKGROUND INFORMATION:
The City of San Antonio’s (the “City”) current Investment Consulting and Investment Training Services contract is set to expire on September 30, 2016. On June 20, 2016, the City of San Antonio (the “City”) issued the Investment Consulting and Investment Training Services Request for Proposal (“RFP”) that was distributed to thirteen (13) firms and was advertised on June 18, 2016 in the San Antonio Express News and posted on the City’s website. Prior to releasing the Investment Consulting and Investment Training Services RFP, staff met with the City’s Goal Setting Committee (the “Committee”) on June 13, 2016 to discuss the Small Business Economic Development Advocacy Program (“SBEDA”) goals for the solicitation. The Committee’s recommendation was to allocate 20 points in the evaluation criteria for Small Business Enterprise and Minority/Women Business Enterprise firms. In addition, 10 points were allocated for the Local Preference Program and 5 points for the Veteran-Owned Small Business Preference Program.
On July 20, 2016, the City received five (5) responses to the RFP. On August 11, 2016, the proposals were scored according to the criteria incorporated in the RFP, which included experience, background and qualifications (30 points), proposed Investment Consulting and Investment Training services (20 points), pricing (15 points), and SBEDA (20 points). The proposal with the highest score was Patterson Capital Management.
The term of the agreement is from October 1, 2016 through September 30, 2019 and the agreement in the City’s sole discretion, provides for two (2) one-year renewals under the same terms and conditions.
On August 16, 2016, the recommended firm, Patterson Capital Management, was approved by the Investment Committee to provide investment consulting and investment training for the City.
ISSUE:
The contract of a professional services agreement with Patterson Capital Management is consistent with the City’s policy to employ consultant services to assist the City in the management of its investment portfolio, provide investment training, and provide additional services as may be required.
ALTERNATIVES:
The City could choose to release a new RFP for investment consulting and investment training services. However, releasing a new RFP for investment consulting and investment training services could impact the City’s guidance in the management of its investment portfolio.
FISCAL IMPACT:
The fees for the selected firm, Patterson Capital Management, to provide investment consulting services, are at a rate of $6,000 per quarter or $24,000 per year for a total contract value of $72,000 for the three (3)-year term. Funding is dependent on the availability of the department’s operating budgets and has already been budgeted for.
RECOMMENDATION:
Staff recommends approval of a professional services agreement with Patterson Capital Management to provide investment training and consultant services to the City of San Antonio for a period of three (3) years, commencing on October 1, 2016, and ending on September 30, 2019; and authorizes other matters incident and related thereto.