BOARD MEETING DATE: November 9, 2001 AGENDA NO. 10

The Board, based on extensive reviews in 1996 and 2000 of the AQMD treasury management operations and the risk and benefits associated with investing in a commingled county investment pool, has directed staff to work with the County to reallocate a significant portion of its short-term investments from the County’s commingled Pooled Surplus Investment Portfolio into its noncommingled Special Purpose Investment Portfolio and into the Local Agency Investment Fund managed by the State Treasurer. To implement this change in investment policy, staff utilizes the services of an investment consultant to assist in the annual update of the AQMD Investment Policy and Guidelines; advise staff on short-term investment strategies available to the AQMD through its Treasurer, the County of Los Angeles; and provide investment monitoring and reporting services to the AQMD to ensure compliance with its investment policies. An RFP for Investment Consultant services was issued on September 22, 2001. These services are for a period of three years.

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP and inviting bids was published in the following publications:

1.	Antelope Valley Press	12.	La Prensa Hispana	23.	Rafu Shimpo
2.	Black Voice News	13.	La Voz	24.	Press Enterprise
3.	Chinese Daily News	14.	Los Angeles Daily News	25.	San Bernardino Sun
4.	Eastern Group Publications	15.	Los Angeles Sentinel	26.	Santa Clarita Sisgnal
5.	El Chicano	16.	Los Angeles Times	27.	State of California Contract
6.	El Informador	17.	M/W/DVBE Source	28.	Register
7.	Excelsior, The	18.	Orange County Register	29.	Wave Publications
8.	Inland Empire Hispanic News	19.	Palm Springs Desert Sun	30.	State of California Contracts
9.	Inland Valley Daily Bulletin	20.	Orange County Register	31.	Register
10.	Korea Central Daily	21.	Philippine News
11.	La Opinion	22.	Precinct Reporter

Additionally, potential bidders were identified using AQMD and other agency listings of vendors licensed and specializing in investment/financial consultant services. Notices of the RFP were mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and placed on the Internet at AQMD’s Web site [http://www.aqmd.gov "Business and Job Opportunities" icon] and AQMD’s 24-hour telephone message line for bidders (909) 396-2724.

A total of thirty-six (36) copies of the RFP were mailed out. Two bids and two no bids were received in response to the RFP when final bidding closed at 5:00 p.m. on October 19, 2001. The proposals were reviewed by a panel composed of the Manager of Treasury/Public Finance for the Orange County Transportation Authority, an Accounting Officer, from the Treasurer/Tax Collector, County of Los Angeles, and the Chief Financial Officer and the Controller from the AQMD. The panel consisted of two females and two males; two Asian/Pacific Islander, one Caucasian, and one Hispanic.

BIDDER	TECHNICAL SCORE	COST SCORE	ADDITIONAL POINTS	TOTAL POINTS	BID AMOUNT	OVERALL RANK
Sperry Capital, Inc.	61.7	30	10 *	101.7	$40,983	1
Public Financial Management	58.5	10	0	68.5	$128,050	2

The selection criteria used to rank the proposals included: understanding the work to be performed, technical/management approach; contractor qualifications; previous experience; cost; and Small Business, DVBE, local business designation. While both responsive firms were well qualified to perform the required services, the panel selected the top-scoring firm of Sperry Capital Inc. to be recommended to the Board.

The total costs, including out-of-pocket expenses, are $13,200, $13,660, and $14,123 for FYs 2001-02, 2002-03, 2003-04, respectively. This represents a maximum cost for the three-year period of $40,983. Sufficient funds for the first year of the contract are included in the FY 2001-02 Budget and will be budgeted for the second and third years.

South Coast Air Quality Management District