September 12, 2023
Finance Department
DATE: September 12, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Nickie Mastay, Deputy City Manager, Internal Services
Andrea Miller, Director of Finance
Mubeen Qader, Deputy Director of Finance
Subject:
Fiscal Year 2023-24 through Fiscal Year 2026-27
Authorized Broker, Dealer List for the City's investment portfolio
FINANCIAL IMPACT: An Authorized Broker/Dealer List will allow the City to select only those professionals who can provide the most experience and knowledge about current capital market
conditions to assist the City in maximizing investment
opportunities.
PREVIOUS COUNCIL
ACTION:
None.
STATEMENT OF THE
ISSUE:
City staff is requesting the City Council to review and approve the updated Authorized Broker/Dealer List for
Fiscal Year 2023-24 through Fiscal Year 2026-27.
RECOMMENDED ACTION:
ADOPT a resolution updating the City’s Authorized
Broker/Dealer list to reflect current broker/dealers that offer the City investment instruments in accordance with Government Code Section 53601 – Finance Department
(Nickie Mastay/Andrea Miller 510-620-6790).
DISCUSSION:
In accordance with the City’s Investment Policy, the Finance Department is required to maintain a list of broker/dealers authorized to provide investment services. The broker/dealers will be selected by credit worthiness and must be authorized to provide AGENDA
REPORT
September 12, 2023
investment services in the State of California. All broker/dealers are requested to supply the following: (e.g., audited financial statements, proof of Financial Industry Regulatory Authority (FINRA) certification, proof of state registration, completed broker/dealer questionnaire, and certification of having read the City’s investment policy). A biennial review of the financial condition and registrations of qualified bidders will be conducted by the Finance Department.
The Request for Qualifications for Broker/Dealer Services was issued on April 4, 2023, and posted on the City’s website at BidsOnline inviting applications from interested firms. The City successfully received responses from eight (8) prospective bidders of which six (6) successfully completed the application process.
The Treasury Division developed a review committee to read and critique the responses and discuss the candidates’ financial health. The committee which consisted of the Deputy City Manager – Internal Services, Deputy Director of Finance, Senior Accountant, and Accountant II, met on May 23, 2023, to deliberate and rank the companies by percentage points. The candidates needed to score at least 70 percent in order to be considered for an interview. Four of the most qualified companies (Raymond James & Associates Inc., Mischler Financial Group, Inc., Loop Capital Markets, LLC., and Rice Securities, LLC, dba Rice Financial Products Company) were selected for an interview, which was held on June 22, 2023. Of the four firms interviewed, three were selected for the Authorized Broker/Dealer pool.
The updated Authorized Broker/Dealer list attached includes Raymond James & Associates Inc., Loop Capital Markets, LLC., and Rice Securities, LLC. as the selected Authorized Broker/Dealers.
DOCUMENTS ATTACHED:
Attachment 1 - Resolution No. 101-20
Attachment 2 - List of Authorized Broker Dealers updated FY23-24 through FY26-27 Attachment 3 - Request for Qualifications for Broker/Dealer Services Attachment 4 - Resolution for Broker Dealer list September 12, 2023