HomeMy WebLinkAboutM-77-065447.
os-,ph R. Grassie
y\ Manager
•
Irwin Secretaty'
Board of Trustees
Retirement System
%-
t
Ci 1 i •
jbhe 803 1977
Re; Ratification of
Trustee Action
The Board of Trustees of the Miami City Employees' Retirement
System have approved engaging the firm ";'ecurities Management
Evaluation" to provide performance measurement and portfolio
audit services,
In lieu of payin::. .12,500.00 in cash for the above services, the
Trustees' approved directing to Drexel Burnham Lambert, Inc. a
portion of the brokerage business incurred in the normal activity
of the fund. The fee under this method is .:25,000.00 in commission
dollars `fully ne::otiated./best execution basis) .
The Trustees' advertised for proposals and received eight bids.
"Securities :.: nn,:ement Evaluation was selected based on the
facts that they 1) had met all the spcci.flc`:tions, 2 were one of
the lowest bidders. and 3\ a }•e a local firm, thus providing the
Trustees with accessibility.
Please schedule this item for the City Commission agenda for ratification:.
1
To The Board of Trustees: -
Our bid for the Financial Services to be rendered to your
Board, in conformity with the specifications presented in
our proposal dated March 3, 1977 is as follows:
Performance Measurr:ment Services
Portfolio Audit Service*
$ 9,000.00
3,500.00
$12,500.00
*Including 500 activities, per annum.
Each addit: i.onal a•-tivity shall be $1.50 per transaction.
The above fee is quoted in HARD DOLLARS and is based on
your Custodian Bank preparing the data in -put forms.
This proposal includes, preparation of a historic analysis
of performance for the following three managers since
the inception of their contract.
Bankers Trust
Montag & Caldwell
Supervised Investor Services (Kemper)
SECURITIES & MANAGEMENT EVALUATION
3100 First Federal Building • Miami, Florida 33131 • (305) 358.7263
A D y s,on of Rre,e' Q rnhom & Co Iirooporoted
III II I IIIII I I■IIIMiim l
'ou have the option, in lieu of cash, of paying for these
services by directing to Drexel Burnham Lambert, incorporated
a portion of the brokerage business incurred in the normal
activity of your fund. The ratio of directed commission
business is on a TW�O-ONE BASIS, FULLY NEGOTIATED/BEST
EXECUTION BASIS. For the purpose of this form of payment,
"Underwriting Credits" on fixed income investments, will
also be acceptable.
If you accept the above method of payment, the fee will be
as follows:
Performance Measurement Services
Portfolio Audit Service*
$18,000.00
7,000.00
$25,000.00
*Including 500 activities, per annum.
Each additional activity shall be $3.00 per transaction.
The above fee is quoted in COMMISSION DOLLARS (FULLY NEGOTIATED/
BEST EXECUTION BASIS) and is based on your Custodian Bank
preparing the data in -put forms.
Prepayment for services rendered is permissable for a one
year period and a 90 dray grace period will be allowed, to
cover any year-end short -fall.
Resp, tfully suhmitt�eh►
° ,)j �
C�c
,Roger D. Soman
✓ Vice President
Pension Fund Consultant
RDS:dee
The Board of Trustees
Miami City Employees Retirement System
Miami, Florida 33133
■
•
('rceftient between brexel Burnham bambertfr ihce with offieeg
At 3100 First Federal Building, Miami, Florida 33131 (herein-
after referred to as "DBL") and the Trustees of The Miami
City Employees Retirement System Pension Fund (hereinafter
referred to as the "Client") on the following terms:
1. This Agreement shall take effect on the execution
hereof, shall continue for the term of one year
from the date hereof and shall thereafter be ex-
tended for an additional one year term on each
anniversary date hereof. This Agreement may be
cancelled at the end of the initial one year
period by either party upon thirty (30) days
written notice.
2. All DBL services used by the Client will be governed
by the terms of this Agreement, including the applic-
able service detailed in the Specifications presented
on March 3, 1977 and Bid on April 22, 1977. (Schedule
attached to and hereby made a part of the Agreement.)
Should DBL offer services not covered by said Specifi-
cations and should the Client wish to use such services,
such additional services will be governed by this
Agreement and by any additional Schedules and/or
Supplements furnished by DBL to the Client which are
applicable to such additional services.
3. The Client agrees to pay all fees incurred as appro-
priate to the service or services described Specifi-
cations and in the Schedule attached hereto provided
by DBL to the Client at the Client's request. Fees
are payable as services are provided and SME will
provide at least quarterly statements to the Client
reflecting the status of cumulative payments made to
the date of the statement for the one year period.
The Client shall, if requested in writing by the
Client, have an additional period of ninety (90)
calendar days after the expiration of the applicable
one year period to make cash payment of the balance
of the annual services charge and if such applicable
annual fee payment is not satisfied in full, this
Agreement shall automatically terminate at the end
of such additional period.
Accepted
Drexel
BY:
The fees# terms and conditons contained in this
Agreement and the Schedule to this Agreement ate
subject to change by DBL upon one month's written
notice. The Client may by written notice terminate
this Agreement on the effective date of such change;
otherwise the new charges and/or terms and conditions
shall become effective.
The Client is solely responsible for the accuracy
and adequacy of the data it transmits for processing
or storage and the output which it obtains. Reason-
able precautions have been taken by DBL to prevent
the loss, alteration or improper access of the Client's
data but DBL cannot guarantee their integrity or
security. The Client will be responsible for main-
taining a procedure external to the DBL system for
reconstruction of lost data and programs, to the extent
the Client deems necessary, and for purposes of re-
entry in the event of system malfunction.
6. Although every effort will be made to ensure accuracy,
DBL shall have no obligations or liability to or
through the Client with respect to the furnished
services nor for any interruptions, delays, errors or
omissions in the information included in the service
or in the transmission of such information.
7. Upon the termination of this Agreement, DBL will dispose
of the Client's information and data still in the
system in any manner it deems appropriate unless the
Client, prior to such termination, furnishes to DBL
written instructions.
8. All notices from either party to the other shall be
sent by registered or certified mail to the address as
specified above unless written notice shall be given of
any change.
9. This Agreement shall be construed in accordance with the
law of the State of Florida.
i
wham
1
�n,Vice President
;� 77
Agreed To:
Trustees of Miami City Employees
Retirement System Pension Fund
Trust Identification No.
$CHEDuLE
tl, bid for the Financial Services to be rehdeted, ih cohforMity
With the specifications presented in otir proposal dated Match
3, 1977 as follows:
Performance Measurement Services $ 9,000.00
Portfolio Audit Service* 3,500,00
$12,500,00
*Including 500 activities, per annum,
Each additional activity shall be $1,50 per transaction.
The above fee is quoted in HARD DOLLARS and is based on your
Custodian Bank preparing the data in -put forms.
This proposal includes, preparation of a historic analysis of
performance for the following three managers since the inception
of their contract.
Bankers Trust
Montag & Caldwell
Supervised Investor Services (Kemper)
The Client has the option, in lieu of cash, of paying for these
services by directing to Drexel Burnham Lambert, Inc. a portion
of the brokerage business incurred in the normal activity of your
fund. The ratio of directed commission business is on a TWO -TO -
ONE BASIS, FULLY NEGOTIATED/BEST EXECUTION BASIS. For the purpose
of this form of payment, "Underwriting Credits" on fixed income
investments, will also be acceptable.
If you accept the above method of payment, the fee will be as
follows:
Performance Measurement Service
Portfolio Audit Service*
$18,000.00
7,000.00
$25,000.00
*Including 500 activities per annum.
Each additional activity shall be $3.00 per transaction.
The above fee is quoted in COMMISSION DOLLARS (FULLY NEGOTIATED/
BEST EXECUTION BASIS) and is based on your Custodian Bank pre-
paring the data in -put forms.
Prepayment for services rendered is permissable for a one year
period and a 90 day grace period will be allowed, to cover any
year-end short -fall.
RFC:eb
7-20=77
01111111110111111111•11111111E
REgoLUTION NO.
A RESOLUTION AUTHORIZING AND DIRECTING THE
CITY MANAGER TO EMPLOY THE FIRM "SECURITIES
AND MANAGEMENT EVALUATION" AS FINANCIAL
ADVISORS TO THE RETIREMENT BOARD OF THE
MIAMI CITY EMPLOYEES' RETIREMENT SYSTEM
TO PROVIDE SERVICES IN CONNECTION WITH THE
MEASUREMENT OF INVESTMENT PERFORMANCE AND
WITH THE AUDIT OF THE PORTFOLIO OF THE SAID
SYSTEM WITH FUNDS THEREFOR PAYABLE FROM THE
SAID SYSTEM TRUST FUND.
BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI
LORIDA:
Section 1. The employment of the firm "Securities and
Management Evaluation" as financial advisors to the Retirement
Board of the Miami City Employees' Retirement System to provide
services in connection with the measurement of investment
performance and with the audit of the portfolio of the said System
with funds therefor payable from the said System 's Trust Fund is
hereby approved.
Section 2. The expenses incurred by the Retirement Board
for the aforesaid services shall be paid pursuant to the applicable
ordinance out of the Miami City Employees' Retirement System
Trust Fund.
PASSED AND ADOPTED this
ATTEST:
C:=�= 02,
CITY CLERK
PREPARED AND APPROVED BY:
/e,/
ROBERT F ." CLARK
ASSISTANT CITY ATTORNEY
day of
APPROVED; AS TO FORM AND CORRECTNESS:
GEORGE F. RNOX, JR.
CITY ATTQ NEY
, 1977.