HomeMy WebLinkAboutR-77-0815MAYOR
'8OLt1TION NO, 7.7 ' 8 15
A RESOLUTION AUTHORIZING AND,DIRECTINO THE
CITY MANAGER TO EMPLOY THE De CIA RCH E ASSOCIATES
AS FINANCIAL ADVISORS TO THE RETIREMENT BOARD
OF THE MIAMI CITY EMPLOYEES' RETIREMENT SYSTEM
TO PROVIDE SERVICES DURING THE COMING YEAR IN
CONNECTION WITH THE MEASUREMENT OF INVESTMENT
PERFORMANCE AND WITH THE AUDIT OF THE PORTFOLIO
OF THE SAID SYSTEM WITH FUNDS THEREFOR PAYABLE
IN THE AMOUNT OF EIGHTEEN THOUSAND DOLLARS
($18,000) (CASH OR HARD DOLLARS), IN QUARTERLY
INSTALLMENTS FROM TIIE SYSTEM TRUST FUND.
BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIbA:
Section 1. The City's employment of the firm DeMarche
Associates as financial advisors to the Retirement Board of
the Miami City Employees'
Retirement System to provide setvices
during the coming year in connection with the measurement of
investment performance and with the audit of the portfolio of
the said System with funds therefor payable in the amount of
Eighteen Thousand Dollars ($18,000)
(cash or hard dollars) in
quarterly installments from the said System's Trust Fund is
hereby approved.
PASSED AND ADOPTED this 13th day of October
Maurice A. Ferre
CITY CLERK
PREPARED AND APPROVED BY:
ROBERT F. CLARK
ASSISTANT CITY ATTORNEY
AP�VED AS TO FORM AND CORRECTNESS;
GEORGE . KNOX, JR.
CITY A ORNEY
1977.
"DOCUMENT,,,,INDEX
ITEM NO.
11
CM COMMISSION
Ri f.ET1NO OF
OCTL 31977
111131LUTIO KO. ......... 7.' .
............................
;_. - +; !No
DPP 2e' pm,.
Joseph R3 Grassie
/Cityy r.ana.�e r
i
Irwin MazfnSecretary
Board of Trustees'
Retirement System
• 1
Setitetnber 281977
' Rel Performance ::easurement
Audit Services
At the September 83 1977 meetin8 the City Commission deferred
taking action on item 1113. en arinr, the firm "Securities and
Management Evaluation"to provide the above captioned services
for the ?hoard of Trustees of the i:ta:ri City Employees' Retirement
System.
In light of the discussion that took place d!;rin" that meetin!:,
the 'Trustees have reconsidered the? r recommendation and have approved
er,rainr the firm "De .:%_',rche Associates" to provide said services.
This action was taken to avoid the possibility of a conflict of
interest arizii . in that De : arche Associates is in no way affiliated
with any brokerage firm.
The fee for she services to be ?'ro 11eC1 by , e :.%ache is :1 $.00C in
"hard ' o'' .rz" or :OCC in "soft dollars".
r a summar:: r, of propozalc received.
Attached is .�.ra,.a t
1
t
1
IE
F R: L A r'r' ! �' LL I � irl.• r 0; . ,.,e., , T f 1 :. .
A, CT: BECIE•j R YEG - ,2 2 . s ;
DE MARCHE ASSOCIATES NO 45'0VO
DIGITAL INFORMATION
fl0
CORP, PLO
E, F, HUTTTON YES .i 5,500
MERRYL LYNCH LE =- �,.; "32 000
SFS CORP, AND DREHER �, �YOb0
ROGERS , ASSOC.
SECURITIES AND
MANAGEMENT
EVALUATION
SHIELDS MODEL ROLAND
25000
25406
:r.F
nT
r•
� t 15'b
18 000
1
16“000
183000
560
1.3560
THE IRMS OF A, G. i3EC:XER AND,DIGITAL INFORMATION CORPORATION WE
ELIMINATED BECAUSE THEY DID ' I'IOT MEET ALL TILE SPEC r i� ICATIONS-,
de marche associates
A tit 2
Mr, Irwin Mazin
Secretary to the Board
Miami City Employees Retirement System
City Hall - Dinner Key
Miami, Florida 33133
1977
ti5Thuel t. be Kinder
EsteCutive Vice President
Dear Mr, Mazin:
I want to express my appreciation for the time and interest
in the Dkarche service shown by the Board of the Miami City
Employees Retirement System during my presentation on Friday,
April 15th, I hope you will convey my thanks to the Chairman,
Mr. Ed Jaremeko, and to each of the other members of the
Board for their attention and interest.
In addition to my thanks, I also would like each Board Member
to have my written response to the questions raised during the
presentations. In the interest of the Board's review time,
I've summarized each of the responses as briefly as possible
but will provide additional detail should the Board request it.
1. D&rarche does not have any direct or indirect relationship
with any brokerage firm. Only when requested by a client do
we utilize soft dollar payment and then we make full disclosure
of all commissions received from any investment manager through
any-F oker .
2. Out total annual cash fee for the services proposed to the
Miami Board is $18,000.
3. There is no initial or start-up charge for any of our
services other than the annual fee.
4. Should there not be sufficient commissions in any twelve-
month period to pay for our services, the balance would be due
in cash. This would only be exercised if it appeared that there
would not be sufficient commission available in the next twelve-
month period to make up the difference.
Home Office: P.O. Box 7027 • Kansas City, Missouri 64113 • (913) 384-4994
Pace 2
Any commissions credited to Demarche for the City of Miami
it excess of the required amount would be carried over to the
next twelve month period. In both #4 and #5 full disclosure
is made to the board o4 both the amount of commissions and the
cash fee received by Demarche Associates.
6. Demarche Associates provides a written critique and evaluation
of each investment manager's actions as a standard part of every
report we prepare. To our knowledge, we are the only consult-
ing firm who provides this level of service as a standard practice.
Of the four firms who presented Friday afternoon (Demarche Asso-
ciates, DIC Corp., E. F. Hutton and Drexel Burnham) only Demarche
Associates answered that they would provide a written, documented
narrative evaluating the manager's performance. Of those firms,
Demarche is apparently the only one who meets the specifications
outlined in the Board's Request for Proposals.
7. Demarche has proposed to meet all specifications listed in
your Request for Proposals.
8. Demarche has made no exceptions or modifications to your
specifications.
9. Demarche Associates will complete the proposed reports for
the Miami City Employee's Retirement within three weeks following
our receipt of all necessary data from your custodian and money
managers. Following your receipt of the written reports, Demarche
would then schedule an in -person presentation and report review
at your next scheduled Board meeting.
In summary, we believe Demarche Associates offers the Board the
most useful and useable performance evaluation and audit infor-
mation per dollar of cost currently available and we are confident
that after a thorough review, the Board will reach the same
conclusion.
Sincerely,
DEMARCHE ASSOCIATES
moo,.,.-_LSZ
Samuel T. DeKinder
Rt.80tUTION NOs,,,..,
RESOLUTION AUTHORIZING AND DIRECTING THE
CITY MANAGER TO EMPLOY De41ARCHE ASSOCIATES
AS FINANCIAL ADVISORS TO THE RETIREMENT BOARD
OF THE MIAMI CITY EMPLOYEES' RETIREMENT SYSTEM
TO PROVIDE SERVICES DURING THE COMING YEAR IN
CONNECTION WITH THE MEASUREMENT OF INVESTMENT
PERFORMANCE AND WITH THE AUDIT OF THE PORTFOLIO
OF THE SAID SYSTEM WITHH FUNDS THEREFOR IN A
MAXIMUM AMOUNT OF $45,000 (SOFT OR COMMISSION
DOLLARS) PAYABLE ONLY FROM COMMISSIONS ON
BROKERAGE BUSINESS OBTAINED BY SAID FIRM IN
THE NORMAL INVESTMENT ACTIVITY OF THE PORTFOLIO.
BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIDA:
Section 1. The City's employment of the firm DeMarche
Associates as financial advisors to the Retirement Board of
the Miami City Employees' Retirement System to provide
services during the coming year in connection with the
measurement of investment performance and with the audit of
the portfolio of the said System with funds therefor in a
maximum amount of $45,000 (soft or commission dollars)
payable only from commissions on brokerage business obtained
by said firm in the normal investment activity of the
portfolio.
PASSED AND ADOPTED this day of
PREPARED AND APPROVED BY:
ROI3ERT F. CLA.RK
ASSISTANT CITY ATTORNEY
"DOCUMENT I DEX
ITEM i u._2•_ i
APPROVED AS TO FORM
ORRECTNESS:
GEORG F. KNOX, JR.
CITY TORNEY