Title
Investment Custodian and Trustee Services
Action
Action:
A. Authorize the City Manager to negotiate and approve a contract with US Bank for investment custodian and trustee services for an initial term of three years, and
B. Authorize the City Manager to renew the contract for up to two, one-year terms with possible price adjustments and to amend the contract consistent with the purpose for which the contract was approved.
Body
Staff Resource(s):
Kelly Flannery, Finance
Sandy Ryland, Finance
Matthew Hastedt, Finance
Explanation
§ Investment custodian and trustee services are needed to provide trust custody accounts and safe-keeping services for the city’s Consolidated Investment Pool, the Long-Term Investment Program (LTIP), and the debt program.
§ The city manages a $2.5 billion Consolidated Investment Pool as part of its daily operations and is invested in accordance with North Carolina General Statutes (G.S.) 159-30 and 159-31. Investments in this portfolio are managed with the objectives of safety, liquidity, and return, and typically have daily settlement activity.
§ The city also manages the LTIP in which the city’s long-term capital reserves are invested under expanded investment authorization outlined in G.S. 147-69.2(b)(1)-(6) and (8) to diversify investment assets and provide a funding source for future Other Post-Employment Benefits (OPEB) obligations.
§ Lastly, the city manages a $4.4 billion debt program authorized under G.S. 160A-20 and G.S. Chapter 159, Article 7. Long-term and short-term debt may be used to finance essential capital facilities, projects, and capital equipment purchases.
§ On September 18, 2020, the city issued a Request for Proposals (RFP); four responses were received.
§ US Bank best meets the city’s needs in terms of qualifications, experience, cost, and responsiveness to RFP requirements.
§ Total annual expenditures are estimated to be $216,500.
Charlotte Business INClusion
Per Charlotte Business INClusion Policy: Part C: Section 2.1 (a), the city shall not establish Subcontracting Goals for Contracts where (a) there are no subcontracting opportunities identified for the Contract; or (b) there are no MWBEs or SBEs certified to perform the scope of work that the city regards as realistic opportunities for subcontracting.
This contract meets the provision of (a) - No subcontracting opportunities.
Fiscal Note
Funding: Consolidated Investment Pool, OPEB Trust Fund, and Debt Service Funds