REQUEST FOR PROPOSALS

City of Lawrence, Kansas

Finance Department

RFP number RO7007

Project scope: The City of Lawrence is soliciting proposals from investment advisory firms for portfolio management, strategy development, and investment services for its operating funds, capital project bond proceeds, bond reserves, and debt service fund. The City has recently issued $19 million in revenue bonds and plans to issue an additional $160 million over the next five years. The purpose of the debt is to fund water and sewer construction projects with the major component being an $88 million wastewater treatment plant. The City currently has $4 million in our debt service reserve account. The Scope of Work is described below:

Proposals due: August 17, 2007

Submit to: City of Lawrence Finance Department

6^th East 6^th Street

P.O. Box 708

Lawrence, Ks 66044

City Contacts: Ed Mullins, Finance Director

(785) 832-3214

(785) 832-3231 (fax)

emullins@ci.lawrence.ks.us

Becky Jones, Assistant Finance Director

(785) 832-3222

(785) 832-3231 (fax)

bjones@ci.lawrence.ks.us

Copy

Requirements: The proposal should be submitted in electronic format to the email address above or on CD mailed to: City of Lawrence C/O Ed Mullins, P.O. Box 708, Lawrence, KS 66044

Scope of Work: Specific services, although not all-inclusive, are to be performed as follows:

· Assist the City of Lawrence with cash flow/maturity analysis

· Provide credit analysis of investment instruments in portfolio

· Give timely responses to inquiries and offer the ability to discuss concerns by telephone during normal business hours

· Evaluate market risk and develop strategies that minimize the impact on the portfolio

· Provide assurance of portfolio compliance with applicable policies and laws

· Impose possible yield restrictions resulting from IRS arbitrage regulations

· Establish an appropriate performance benchmark

· Ensure portfolio structure matches the City’s objectives

· Recommend an investment strategy for idle and core City funds that may include different approaches depending upon the interest climate

Investment practices and procedures must comply with Kansas state law and the City of Lawrence’s written investment policy.

Under this contract the City of Lawrence objectives are:

· Maximize incremental income from the City’s portfolio while avoiding arbitrage penalties

· Provide for operational efficiency and information flow on the portfolio

· Improve the City’s investment capabilities

· Match maturities with cash flow requirements

Proposal

Requirements: Fees: The proposal shall include a complete fee schedule and an estimate of costs required to complete the required tasks.

Reporting: Describe the investment accounting and reporting system used by your firm and provide an example. Provide recommendations that you’ve made to other government entity’s regarding investment of capital project funds.

Experience: Describe your firm’s experience in managing capital project funds for governmental entities. List any experience with local governments in the area.

Schedule: The City wishes to maximize its return on investment. As a result, it is desired that the consultant begin work within two weeks of the approval of the proposal.

Client References: At least three (3) and not more than five (5) previous client references shall be provided in the proposal. The firm shall provide the name, address, telephone number, and title of a contact person familiar with the firm’s competencies and who can be contacted by the City of Lawrence.

Selection

Process: Upon receipt of proposals, a review by City staff will determine those firms who will be selected for further negotiations or an interview. Qualified applicants may be contacted for additional information if needed. A selection committee will recommend a firm to the City Commission based upon their qualifications. Following the selection of a firm, an investment advisory agreement will be negotiated.

In accordance with the goals of the City of Lawrence, the following criteria will be used as the weighing basis for evaluation of the proposals and the award recommendation:

· Understanding of the overall investment program and the investment objectives and its unique constraints

· Experience, resources, and qualifications of the firm and individuals assigned to this account

· Experience and reputation of the firm in managing state/local government portfolios. In evaluating the firm’s experience, past performance data will be evaluated in the context of portfolio objectives and constraints, as well as risks.

· Recommended approach to management of the portfolio

· Fees

The respondent’s understanding of the scope of services required includes demonstrated abilities to coordinate delivery of the services and an understanding of the needs and operational requirements of the City of Lawrence.

Award may not be made to the respondent submitting the lowest price proposal. The City of Lawrence will choose the firm submitting the best and most responsive overall proposal to satisfy its needs.

EEOA: Equal Employment Opportunity Agreement

The firm agrees to observe the provisions of the Kansas Act Against Discrimination and shall not discriminate against any person in the performance of work under the present agreement because of race, religion, color, sex, disability, national origin or ancestry. The firm shall in all solicitation or advertisements for employees include the phrase, “equal opportunity employer.” The firm agrees to that if the firm fails to comply with the manner in which the provisions of K.S.A. 44-1031 and amendments thereto, the firm shall be deemed to have breeched the present contract and it may be canceled, terminated or suspended, in whole or in part, by the City. If the firm is found guilty of a violation of the Kansas Act Against Discrimination under a decision or order of the Commission which has become final, the firm shall be deemed to have breached the present contract and it may be canceled, terminated or suspended, in whole or in part, by the City.