BOARD MEETING DATE: December 2, 2005
AGENDA NO. 3

Execute Contract for Investment Consultant Services

SYNPOSIS:

This action is to award a contract in the sum of $45,783 to Sperry Capital, Inc. to provide investment consultant services to assist in the annual update of AQMD’s Investment Policy and Guidelines, advise staff on short-term investment strategies and to provide investment monitoring and compliance reporting services.

COMMITTEE:

Administrative, November 10, 2005, Recommended for Approval

RECOMMENDED ACTIONS:

Award bid to and authorize the Chairman to execute a contract with Sperry Capital, Inc. for Investment Consultant Services at a cost of $14,800 for FY 2005-06, $15,260 for FY 2006-07 and $15,723 for FY 2007-08.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

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 of Los Angeles (AQMD Treasurer) 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; 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 9, 2005.  These services are for a period of three years.

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP/RFQ and inviting bids was published in the following publications:

Additionally, potential bidders may have been notified utilizing the Los Angeles County MTA Directory of Certified Firms, the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; and AQMD’s own electronic listing of certified minority vendors.  Notice of the RFP/RFQ was 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).  Information was also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Proposal

A total of twenty-five (25) copies of the RFP were mailed out.  Five bids were received in response to the RFP when final bidding closed at 2:00 p.m. on October 11, 2005.  The proposals were reviewed by a panel composed of the Manager of Investment for Southern California Edison, and a Financial Analyst, the Chief Financial Officer and the Controller from the AQMD; one Asian Pacific Islander and three Caucasian, two female and two male.

Two of the bids reviewed did not score high enough in the technical evaluation to be considered.  The evaluation results for the three remaining bidders are:

* Small Business points

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 all three 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.

Resource Impacts

The total costs, including out-of-pocket expenses, are $14,800, $15,260, and $15,723 for FYs 2005-06, 2006-07, 2007-08, respectively.  This represents a maximum cost for the three-year period of $45,783.  Sufficient funds for the first year of the contract are included in the FY 2005-06 Budget and will be budgeted for the second and third years.

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