Explanation
BACKGROUND:
On June 15, 2018 a request for statement of qualifications (RFSQ) RFQ009481 was issued on behalf of the City Treasurer’s Office for investment advisory services. The City’s objectives in retaining an investment advisor are to improve its investment capabilities and operational efficiency by maximizing incremental income and obtaining operational information flow on its portfolio. RFQ009481 was advertised and statements of qualifications were opened on July 10, 2018. Fifteen (15) responses were received. An evaluation committee consisting of one representative each from the Department of Finance and Management, the City Auditor’s Office and the City Treasurer’s Office met on July 20, 2018 and submitted preliminary scores. On July 20 three firms (FTN Financial Main Street Advisors, Meeder Public Funds and PFM Asset Management) were selected by the RFP Committee to provide technical proposals including cost structures, and in-person presentations. The RFP was distributed on July 27 and proposals were due on August 17, 2018. The finalists presented in person during three presentations August 23 and 24, 2018. The committee met and submitted their scoring for the technical proposals on August 28, 2018.
After viewing presentations and evaluating the technical proposals, in compliance with Columbus City Code 329.27, the committee recommended that the Treasury Investment Board authorize the City Treasurer to enter into negotiations with Meeder Public Funds, subject to successful resolution of the discussion items brought forth by the committee.
The contract with Meeder Public Funds is for the period of October 15, 2018 through March 31, 2021 with three one-year options for renewal subject to annual appropriations and approval of contracts by the Columbus City Council.
The City Treasurer’s Office renewed its contract with Meeder Public Funds to exercise its final option to extend its contract term from April 1, 2023 through March 31, 2024 with passage of Ordinance 0300-2023 on February 6, 2023.
In a normal year, the City Treasurer would be engaged in a new RFP process to procure investment advisory services. However, the Treasurer’s Office, with participation from the City Auditor’s Office and the Administration, has recently concluded a two-year RFP project for banking services for which new contracts are to begin September 1, 2023. That project will require a complex implementation that is likely to take between 12 and 18 months to accomplish. The Treasurer sought a discussion with the members of the Depository Commission and Treasury Investment Board to gather consensus as to what action should be taken. It was recommended that the Treasurer should explore the possibility of a three-year contract extension with Meeder.
The Treasurer engaged with Meeder Public Funds and it was determined that Meeder would do so. Columbus City Council authorized a one-year extension of the Treasurer’s Office contract with Meeder Public Funds from April 1, 2024 to March 31, 2025 with the addition of two one-year options for renewal, with passage of Ordinance 2293-2023 on September 18, 2023.
The City Treasurer now requests funding for the first extension of $228,000.00 The cost of the extensions were negotiated by the Treasurer and Meeder Public Funds.
Contract Compliance: Meeder Public Funds 34-1700641, expiration 1/12/2025.
The company is not debarred according to the Excluded Party Listing System of the Federal Government or prohibited from being awarded a contract according to the Auditor of State Unresolved Findings for Recovery Certified Search.
FISCAL IMPACT:
Funds for this contract are contingent on passage of the 2024 budget, Ordinance 3011-2023.
Title
To authorize the City Treasurer to modify its contract for investment advisory services with Meeder Public Funds, Inc., for the period from April 1, 2024 to March 31, 2025; and to authorize the expenditure of $228,000.00 from the General Fund. ($228,000.00)
Body
WHEREAS, a request for statement of qualifications (RFSQ) RFQ009481 was issued on behalf of the City Treasurer’s Office for investment advisory services on June 15, 2018 with the objectives of maximizing incremental income, operational efficiency and information flow, and improvement of its investment capabilities; and
WHEREAS, the evaluation committee made recommendations to the Depository Commission and Treasury Investment Board which authorized negotiations with the highest ranked offeror, Meeder Public Funds, Inc.; and
WHEREAS, Columbus City Council authorized the contract and expenditures for the last one-year option to renew the Treasurer’s contract with Meeder Public Funds, Inc., by passage of Ordinance No. 0300-2023 on February 6, 2023, for the period through March 31, 2023; and
WHEREAS, Columbus City Council authorized the extension of the Treasurer’s contract with Meeder Public Funds, Inc., for investment advisory services for the period through March 31, 2025 and two additional one-year renewal periods with passage of Ordinance 2293-2023 on September 18, 2023; and
WHEREAS, the City Treasurer now wishes to add funding of $228,000.00 to its contract with Meeder Public Funds, Inc., for the period through March 31, 2025; and
WHEREAS, it has become necessary in the usual daily operation of the City Treasurer’s Office to authorize the Treasurer to modify its contract with Meeder Public Funds, Inc., and authorize the expenditures as cited below, so that Meeder may continue assisting the City with its investments as necessary that are vital for the daily operation of normal business activities of the City of Columbus; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the City Treasurer is hereby authorized to modify its contract with Meeder Public Funds for investment advisory services for the period April 1, 2024 through March 31, 2025 and to authorize the expenditure of $228,000.00 or so much thereof as may be necessary in object class 03 contractual services per the accounting codes in the attachment to this ordinance.
SECTION 2. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 3. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.