The City’s Finance Department is interested in seeking proposals for a Service Provider (or Service Providers) to support the City’s needs for Investment Custodian and Trustee Services with a multi-year agreement. The City’s investment and debt programs are managed by the Treasury Division of the Finance Department. The City’s Consolidated Investment Pool is part of its daily operations and is invested under North Carolina G.S.159-30 and 159-31. Investments in this portfolio are managed with the objectives of safety, liquidity and return, in that order and typically have daily settlement activity. These investments are executed by delivery vs. payment (DVP) and held by the third-party trust custodian.
Arbitrage Services, Yield Reduction, Independent Registered Municipal Advisor
The City’s debt activity supports governmental, enterprise and special purpose credit entities and is regulated by the NC Local Government Commission. This procurement aims to identify qualified professionals for three financial functions that are integral to the debt management process.
• Independent Registered Municipal Advisor
• Financial Modeling Consultant
• Arbitrage Rebate and Yield Reduction Analyst
The City is soliciting competitive, sealed responses from qualified firms. Companies responding to this Request for Proposal may bid on any or all functions described below. Each function will operate under a separate contract which will run for three (3) years with one (1), two-year optional extension.
Lockbox Remittance Services
Mail remittance lockbox and payment processing for water, sewer, and storm water services. The Company will provide all mail opening, processing and depositing capabilities including all personnel, equipment, work and storage space, and transportation for pick-up and delivery of payments associated with the Services.
The City is interested in having a three year contract with the option for two, one-year renewals.
Investment Custodian and Trustee Services
The City is seeking one or more service providers to provide investment custodian and trustee services.
The primary role of the Investment Custodian Service Provider will be to provide trust custody accounts and safe-keeping services for the City’s Consolidated Investment Pool and the Long-Term Investment Program (LTIP). The City’s $2.5B Consolidated Investment Pool is part of its daily operations and is invested under North Carolina G.S. 159-30 and 159-31. The LTIP has a total market value of approximately $100M and is an investment program in which the City’s long-term capital reserves are invested under expanded investment authorization outlined in State Law G.S. 147-69.2(b)(1)-(6) and (8) to diversify investment assets of the City and provide a funding source for future Other Post-Employment Benefits (OPEB) obligations.
The primary role of the Trustee Services Provider will be to establish, hold, maintain and manage segregated trust accounts in accordance with bond documents and in compliance with federal tax law.