Authorize $50,000 investment advisory services contract from PFM

AGENDA ITEM SUMMARY FORM File ID: #17479 Date: 04/09/2025 Requesting Department: Department of Finance Commission Meeting Date: 06/17/2025 Sponsored By: District Impacted: All Type: Resolution Subject: Authorize - Investment Advisory Services - Palm Bay Purpose of Item: The nature of this item is to establish a resolution of the Miami City Commission, authorizing the full accessing beyond the City Manager’s delegated authority of $50,000, of the City of Palm Bay, Florida (“Palm Bay”) Contract No. 66-0-2021/sz (“Contract”) for the provision of Investment Advisory Services, for the City of Miami's Finance Department ("Finance"), pursuant to Section 18-111 of the Code of the City of Miami, Florida, as Amended, with PFM Asset Management, a Division of U.S. Bancorp Asset Management, Inc., a successor to PFM Asset Management, LLC (“PFM”), a foreign limited liability company, which was competitively solicited for a term of three (3) years from March 11, 2022, to March 10, 2025, with seven (7) additional one (1) year option to renew periods, extending the agreement to March 10, 2032, subject to any extensions and/or replacement contracts by Palm Bay, allocating funds from various sources of funds from Finance, subject to the availability of funds and budgetary approval, at the time of need; authorizing the City Manager to execute the supplemental agreement, in a form acceptable to the City Attorney, further authorizing the City Manager to negotiate and execute all other documents, including any amendments, renewals, and extensions, subject to allocations, appropriations and budgetary approval having been previously made, and in compliance with applicable provisions of the Code of the City of Miami, Florida, as amended, ("City Code"), including, the City of Miami's Procurement Ordinance, Anti-Deficiency Act, and Financial Integrity Principles, all as set forth in Chapter 18 of the City Code, in a form acceptable to the City Attorney, and in compliance with applicable regulations, as may be necessary for said purpose. Background of Item: On April 1, 2024, Finance accessed the Contract under the City Manager’s delegated authority, for an amount up to $50,000.00, for the provision of investment advisory services and the authorized spending limit has been reached. The full accessing of the Contract beyond the City Manager’s delegated authority will allow for the continued provision of said services at a rate acceptable to the City. Through the Contract, PFM will manage the City’s assets at the rate of eight (8) basis points for the first $40 million and seven (7) basis points for all assets in excess of $40 million. Budget Impact Analysis Item is an Expenditure Item is NOT Related to Revenue Item is NOT funded by Bonds Total Fiscal Impact: N/A Reviewed By Department of Finance Erica T Paschal Department Head Review Completed 04/09/2025 4:19 PM Office of Management and Budget Donovan Dawson Budget Analyst Review Completed 04/14/2025 6:27 PM Office of Management and Budget Marie Gouin Budget Review Completed 04/15/2025 10:40 AM Department of Procurement Annie Perez Procurement Review Completed 05/04/2025 2:28 PM City Manager’s Office Larry M. Spring Assistant City Manager Review Completed 05/08/2025 10:03 AM City Manager’s Office Natasha Colebrook-Williams Deputy City Manager Review Completed 05/08/2025 11:23 AM Legislative Division Valentin J Alvarez Legislative Division Review Completed 05/08/2025 11:39 AM City Manager’s Office Arthur Noriega V City Manager Review Completed 05/08/2025 6:05 PM Office of the City Attorney Thomas M. Fossler ACA Review Completed 05/13/2025 11:10 PM Office of the City Attorney George K. Wysong III Approved Form and Correctness Completed 05/13/2025 11:04 PM City Commission Todd B. Hannon Meeting Completed 05/22/2025 9:00 AM City Commission Nicole Ewan Meeting Completed 06/12/2025 9:00 AM City Commission Todd B. Hannon Meeting Pending 06/17/2025 9:00 AM City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com City of Miami Legislation Resolution File Number: 17479 Final Action Date: A RESOLUTION OF THE MIAMI CITY COMMISSION PURSUANT TO SECTION 18- 111 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED (“CITY CODE”), AUTHORIZING THE PURCHASE OF INVESTMENT ADVISORY SERVICES ON AN AS-NEEDED BASIS FROM U.S. BANCORP ASSET MANAGEMENT, INC. D/B/A PFM ASSET MANAGEMENT (“PFM”) UTILIZING THE CITY OF PALM BAY, FLORIDA, CONTRACT NO. 66-0-2021/SZ (“PALM BAY CONTRACT”), AWARDED PURSUANT TO A COMPETITIVE PROCESS IN COMPLIANCE WITH THE CITY LAWS, POLICIES, AND PROCEDURES, AS DETERMINED BY THE CHIEF PROCUREMENT OFFICER, FOR A TERM OF FOUR (4) YEARS FROM MARCH 1, 2022, THROUGH FEBRUARY 27, 2026, WITH SIX (6) REMAINING OPTIONS TO RENEW FOR ADDITIONAL ONE (1) YEAR PERIODS; ALLOCATING FUNDING FROM VARIOUS SOURCES WITHIN THE FINANCE DEPARTMENT’S OPERATING BUDGET, SUBJECT TO THE AVAILABILITY OF FUNDS AND BUDGETARY APPROVAL AT THE TIME OF NEED; AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE AN AMENDMENT TO THE SUPPLEMENTAL AGREEMENT, DATED APRIL 1, 2024, WITH PFM, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, TO REMOVE THE NOT-TO-EXCEED $50,000.00 CONTRACT LIMIT; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ANY DOCUMENTS, INCLUDING RENEWALS, EXTENSIONS, OR AMENDMENTS, ALL IN FORMS ACCEPTABLE TO THE CITY ATTORNEY, SUBJECT TO ALLOCATIONS, APPROPRIATIONS, PRIOR BUDGETARY APPROVAL, AND COMPLIANCE WITH APPLICABLE PROVISIONS OF THE CITY CODE, INCLUDING, THE CITY OF MIAMI'S PROCUREMENT ORDINANCE, ANTI-DEFICIENCY ACT, AND FINANCIAL INTEGRITY PRINCIPLES, ALL AS SET FORTH IN CHAPTER 18 OF THE CITY CODE, AND IN COMPLIANCE WITH APPLICABLE LAWS, RULES, AND REGULATIONS, AS MAY BE NECESSARY FOR SAID PURPOSE; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on April 1, 2024, City of Miami (“City”) entered into a supplemental agreement with PFM Asset Management LLC (“Supplemental Agreement”) for the provision of investment advisory services (“Services”) utilizing City of Palm Bay Contract No. 66-0-2021/SZ (“Palm Bay Contract”), which was awarded pursuant to a competitive process in compliance with the City’s laws, policies, and procedures as determined by the Chief Procurement Officer, with a not-to-exceed contract amount of $50,000.00, pursuant to Section 18-111 of the Code of the City of Miami, Florida, as amended (“City Code”); and WHEREAS, the City’s total expenditure on the Supplemental Agreement has reached the $50,000.00 not-to-exceed contract amount; and WHEREAS, Section 18-111 of the City Code provides further expenditures in excess of $50,000.00 shall be subject to approval by the City Commission; and WHEREAS, authorization for expenditures in excess of the $50,000.00 contract amount will allow for the continued provision of the Services at a rate that is acceptable to the City; and WHEREAS, since the execution of the Supplemental Agreement, U.S. Bancorp Asset Management, Inc. has acquired PFM Asset Management LLC and has succeeded it as the party in interest; and WHEREAS, pursuant to Section 18-111 of the City Code, the City Commission desires to authorize further expenditures on the Supplemental Agreement in excess of $50,000.00 on an as-needed basis, subject to availability of funds and budgetary approval at the time of need;

NOW, THEREFORE,

BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA. Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2. Pursuant to Section 18-111 of the City Code, the purchase of the Services in excess of $50,000.00 on an as-needed basis from U.S. Bancorp Asset Management, Inc. d/b/a PFM Asset Management utilizing the Palm Bay Contract for a term of four (4) years from March 1, 2022, through February 27, 2026, with six (6) remaining options to renew for additional one (1) year periods, subject to any renewals or extensions by Palm Bay, is hereby authorized1 subject to the availability of funds and budgetary approval at the time of need. Section 3. Funds to be allocated by the various sources of funds from the Finance Department’s Operating Budget, subject to availability of funds and budgetary approval at the time of need. Section 4. The City Manager is authorized1 to negotiate and execute an amendment to the Supplemental Agreement, in a form acceptable to the City Attorney, to remove the not-to- exceed $50,000.00 contract amount. Section 5. The City Manager is further authorized1 to negotiate and execute all other documents, including any renewals, extensions, and amendments, all in forms acceptable to the City Attorney, subject to allocations, appropriations, and budgetary approval having been previously made, and in compliance with applicable provisions pursuant to Chapter 18 of the City Code, including the City’s Procurement Ordinance, Anti-Deficiency Act, and Financial Integrity Principles, all as set forth in the City Code, and in compliance with applicable laws, rules, and regulations, as may be necessary for said purpose. Section 6. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: 1 The herein authorization is further subject to compliance with all legal requirements that may be imposed, including but not limited to those prescribed by applicable City Charter and City Code provisions.