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HomeMy WebLinkAbout5192 Contract Number- 5192 Vendor- DAVIDSON FIXED INCOME MANAGEMENT, INC. Subject- Advisory Agreement Department Finance File Class: LEG 12 -1 Begin Date. 9/1/2012 End Date 8/31/2013 Review Date: Vault Date: 2015 - Comments: CLOSED I?avidson F'ixed Income Management RFGLSTERFD MV6TMEM ADVtSER DAVIDSON FIXED INCOME MANAGEMENT� INC. ADVISORY AGREEMENT Tlus Agreement is entered into on tlus l day of September, 2012 between Davidson Fixed Income Management, Inc (Heremafter referred to as the "ADVISOR") and The City of Bremerton (heremafter refened to as "THE CTTY") Services will be provided to TI� CITY by the ADVISOR's portfoho managers located at 5550 S W Macadam Avenue, Suite 110, Portland, Oregon 97239 In considerat�on of the mutual prorruses, covenants and undertakmgs set forth herem, the parties hereby agree as follows APPOINTMENT OF ADVLSOR TI� CTTY hereby appoints the ADVISOR and the ADVISOR hereby agrees to provide mvestment advisory services for TI� CITY's mvestment portfoho (heremafter referred to as the "ACCOiINT"). SCOPE OF SERVICES The ADVISOR shall provide the following services A Review and provide updates for Investment Pohcy changes B Evaluate each fund and deternune the appropnate benchmark and management strategy that balances nsk and return Includes Lquidity and core fund analysis C Assist m the development and unplementat�on of a nsk-controlled strategy designed to enhance portfoho performance wlule specifically addressmg the ob�ect�ves and constramts for each fund balance D Make recommendat�ons as to asset allocat�on to maintain the targeted nsk and return profile E Assist m effect�ng and managmg of investment transact�ons. The ADVISOR will provide disclosure to THE CTTY regardmg each transact�on that ident�fies the dealers contacted and the pnces offered by each. The ADVISOR may open accounts on behalf of THE CITY du�ectly with its approved broker/dealer Lst. The ADVISOR agrees to morutor all settlements for deLvery versus payment transact�ons with TI� CTTY between the custodial bank and the dealers F. Provide reports for the fund accounts wtuch mclude. descnpt�on of each secunty with book and market value at least monthly, or more frequent if requested; nsk rat�ng for each secunty and secunty type for all funds, and hquidity profiles of all funds, mdividually and collect�vely Total return reports will be provided on a monthly basis comparing the portfoho performance relahve the appropnate benchmazk G Provide techrucal support m analyzmg portfoho mformat�on H Report relevant market informat�on in a tunely manner Key econonuc mdicators, events and mformat�on relevant to managed portfoLos will be provided at least quarterly and more frequent as necessary or requested. I. Assist m reviewmg third party custodial providers J. Hold a review meet�ng wittun six months of the begmmng of this contract, either at TI� CTTY's offices or ADVISOR's office K Other Investment advisory services as needed, mcluding (i) Consultat�on on other investment funds as needed, such as reserve funds. Page 1 of 5 THE CITY, by entenng into this agreement does not sunender ownerslup of the cash or secunties compnsmg the account The ADVISOR will not act as a custodian of assets m the account or have possession of any such assets DESIGNATED AUTHORIZED PERSON(S) Ttus contract provides for the tradmg authonzat�on for THE CITY The persons authonzed to affirm transact�ons recommended by the ADVISOR are Signature Rabecca R Hasart — Dtrector of Financaal Servaces Cathenne Johnson — Asst Dtrector of Financcal Services N01v -DISCRETIONARY SERVICES TI-iE ADVISOR will make recommendat�ons with respect to the investments of the ACCOUNT but will not make discret�onary investment decisions The ADVISOR's recommendat�ons will be given in wnt�ng, by telephone or by email to the designated authonzed person at THE CTTY and must receive aff'umatton to proceed with the transachon from a designated authonzed person pnor to execut�ng the purchase or sale of any secunt�es REPORTS In order that TI� CITY may be kept informed of the status and act�vit�es m the ACCOUNT the ADVISOR shall furnish monthly statements relat�ng to the ACCOUNT The statements the ADVISOR agrees to furnish to THE CTTY will provide details of all transact�ons mvolvmg the ACCOUNT, a month end Lst�ng of mvestments held m the ACCOUNT, and a reportmg on the performance of the ACCOLJNT Such statements will be furcushed to TI� CITY wittun fifteen (15) days t�me after the close of each month INVESTMENT OBJECTIVES AND RESTRICTIONS: The ADVISOR mvestment decisions or recommendat�ons for the ACCOtJNT will be in accordance wrth such mvestment pohcies and restnct�ons as TI-� CITY may establish for the ACCOUNf per the attached Statement of Investment Pohcy and Ob�ect�ves Exlubit A All quest�ons regarding any pohcies and restrict�ons will be addressed to the address and telephone number set forth m ttus agreement It will the responsibihty of the Chent to inform ADVISOR m wnhng of such pohcies and restnct�ons and of any changes therein, and to give the ADVISOR prompt wntten notice if Chent deems any mvestment decisions or recommendahons made for the ACCOUNT to be in violat�on of such pohcies or restnct�ons BEST EFFORT The ADVISOR will at all t�mes render the services called for m ttus Agreement in accordance with its best Judgment However, the ADVISOR does not imply or guarantee profits or freedom from loss in connect�on with its recommendat�ons FEES• In considerat�on of the services performed by the ADVISOR, THE CTTY agrees to pay the ADVISOR an annual mvestment advisory fee of $13,500 00 The quarterly fee is $3,375 dollars and will be paid at the end of each quarter SERVICES FOR OTHER CLIENTS It is understood that the ADVISOR provides investment Page 2 of 5 advisory services for other chents It is further understood that the ADVISOR may take mvestment act�on on behalf of such other chents, wYuch differs from the investment act�on taken on behalf of the ACCOUNT If the purchase or sale of secunt�es for the ACCOLJNT and one or more such other chents is affected at or about the same t�me, such purchase or sale shall be allocated among the other cLents m a manner deemed equitable by the ADVISOR. ADVISOR REPRESENTATION The ADVISOR warrants that it is registered as an Investment Advisor under the Investment Advisors Act of 1940, and that the act�vit�es contemplated herem are to the best of its knowledge, in comphance with all laws and regulat�ons apphcable to it and governmg mvestments, and that all necessary act�ons requued to authonze such actavit�es have, to the best of its knowledge, been taken SAFEKEEPING THE CI'TY acknowledges that it will assign a third party custodial bank to provide for the holdmg and deLvery of all secunt�es TI� CTTY will control all fund transfers m and out of the account VENi7E: In the event that either party deems it necessary to mshtute legal act�on or proceedings to enforce any nght or obhgation under tlus Agreement, the parties agree that any such act�on or proceeding shall be brought m the Supenor Court of the State of Waslungton m Kitsap County. Each party is responsible for its own legal fees and costs unless otherwise allowed by law TE�i: The term of this agreement shall be for 1 year from the date hereof. Ttus agreement may be termmated for any reason by either party with or without cause, by givmg the other party at least 30 days wntten not�ce The agreement may not be assigned by either of the parties without the pnor wntten consent of the other The Agreement const�tutes the entue Agreement of the parhes with respect to the matters contamed herein and no modificat�on of tlus Agreement shall be effect�ve unless such modificat�on is in wnt�ng and signed but the parties hereto CONFIDENTIAL RELATIONSHIP All mformat�on and advice furcushed by either party to the other hereunder will be treated as confident�al and may not be disclosed to third parties except as required by operat�on of law or the legitunate business necessity of the disclosmg party DiSCLOSUxE STA�MErtZ' The ADVISOR represents that it has dehvered to TI� CTTY, at least two busmess days pnor to the execut�on of tlus Agreement, ADVISOR's current Form ADV, Part II By sigrung tlus Agreement below, THE CITY hereby acknowledges its receipt of said document at least two busmess days pnor to its executaon of ttus Agreement. KEY PERSONNEL The ADVISOR acknowledges and THE CTTY lured the ADVISOR because of the special quahficahons of Advisors key personnel In particular, through ttus Contract, TI� CTTY is engaging the expertise, expenence, �udgment, and personal attent�on of Deanne Woodnng, CFA, Dave Westcott, CFA and Sally Walton ("key personnel") In the event the ADVISOR requests that TI� CITY approve a reassignment or transfer of the key personnel, TI� CTTY shall have the nght to approve or disapprove the proposed replacement(s). MISCELL�oUS Tlus Agreement may not be assigned by either of the parties without the pnor wntten consent of the other Ttus Agreement const�tutes the entire agreement of the parhes with respect to the matters contamed herein and no modificat�on of ttus Agreement shall be effecdve unless such modification is in wnt�ng and signed by the parties hereto Page 3 of 5 This Agreement shall be governed by the laws of the State of Wastungton, and furthermore by the Investment Advisors Act of 1940 and the rules and regulat�ons promulgated by the Secunt�es and Exchange City under said act INSURANCE AND HOLD HARMI.ESS Prior to and dunng the performance of the work covered under ttus Agreement, ADVISOR shall provide the Risk manager for the City of BremeRon with evidence that it has obtamed and mamtams m full force and effect dunng the term of ttus Agreement a pohcy of professional habihty msurance, providing coverage of at least $1,000,000 against professional habihty for errors and omissions in connect�on with the work to be performed by ADVISOR under ttus Agreement Risk Manager shall be provided th�rty (30) days' wntten not�ce of any cancellat�on of said professional l�abihty insurance ADVISOR shall, at all t�mes, be solely responsible for the acts of fa.ilures to act of its personnel wtuch occur or ac7se m any way out of the performance of ttus Agreement ADVISOR agrees to save and hold TI� CTTY, its personnel and officials, hannless from all costs, expenses losses and damages, mcluding the cost of defense, mcurred as a result of any acts or omissions of ADVISOR personnel relat�ng solely to the performance of tYus Agreement Not�ces and reports as called for herem shall be mailed, m the care of ACCOUNT: ADVLSOR: City of Bremerton Davidson Fixed Income Management, Inc 345 6`� Street , Suite 600 5550 SW Macadam Ave Suite 110 Bremerton, WA 98337 Portland, OR 97239 Phone (360) 473-5296 Phone (866) 999-2374 Cathenne Johnson Asst Dcrector of Financcal Services Deanne Woodnng, CFA Managing Director AGREED TO AND ACCEPTED: CITY OF BREMERTON Cathenne Johnson Prznted or Typed Name Asst Duector of Fmancial Sernces Title Date Page 4 of 5 AGREED TO AND ACCEPTED: DAVIDSON F7XED INCOME MANAGEMENT, INC. Signature Deanne Woodnng Prtnted or Typed Name Managmg Duector Tatle �P'�� �' I z Date Page 5 of 5 �1 DAVICOM-01 NKUNZ AC'ORU' DATE(MM/DD/YYYY) 4.,..----- CERTIFICATE OF LIABILITY INSURANCE 9/29/2015 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must be endorsed. If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT NAME: . Missoula Office RECEIVED PHONE 406 721-1000 FAX 406 721-9230 PayneWest Insurance,Inc. (A/c,No,Ext):( ) (A/c,No): (406) P.O.Box 4386 E-MAIL Missoula,MT 59808 ADDRESS: 0 C T 0.9 2015 INSURER(S)AFFORDING COVERAGE NAIL# INSURER A:Great Northern Insurance Co. INSURED INSURER B:Federal InsuranceCompany20281 City of Bremerton Davidson Fixed Income Management,Inc.Risk Management INSURER C:Hartford Insurance Co of P 0 Box 5015 INSURER D:Axis Surplus Lines Company Great Falls,MT 59403 INSURER E: INSURER F: ' COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE ADDL SUBR POLICY EFF POLICY EXP/YLIMITS LTR INSD WVD POLICY NUMBER (MM/DD/YYYY) (MM/DDYYY) A X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 CLAIMS-MADE X ,OCCUR 35809634 10/01/2015 10/01/2016 DAMMISAGES( RENTEaDoccurrence) $ 1, ,000 000 PREES{E MED EXP(Any one person) $ 5,000 PERSONAL&ADV INJURY $ 1,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000,000 POLICY PRO- JECT LOC PRODUCTS-COMP/OP AGG $ 2,000,000 OTHER: F $ AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ 1000000 (Ea accident) > > A X ANY AUTO 73564024 10/01/2015 10/01/2016 BODILYINJURY(Perperson) $ ALL OWNED SCHEDULED BODILY INJURY(Per accident) $ AUTOS AUTOS XHIRED AUT AUTOS X 00-OWNED PROPERTY DAMAGE $ _ $ X UMBRELLA LIAB X OCCUR EACH OCCURRENCE $ 15,000,000 B EXCESS LIAB CLAIMS-MADE 79842305 10/01/2015 10/01/2016 AGGREGATE $ 15,000,000 DED X RETENTION$" 0 $ WORKERS COMPENSATION PER OTH- AND EMPLOYERS'LIABILITY STATUTE ER C ANY PROPRIETOR/PARTNER/EXECUTIVE Y/N 41WEBV2782 10/01/2015 10/01/2016 E.L.EACH ACCIDENT $ 1,000,000 OFFICER/MEMBER EXCLUDED? N/A (Mandatory in NH) - E.L.DISEASE-EA EMPLOYEE $ 1,000,000 If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ 1,000,000 D Professional Liab. MSN708207 10/01/2015 10/01/2016 Each Claim 5,000,000 DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES (ACORD 101,Additional Remarks Schedule,may be attached if more space is required) Re: Investment Advisory Agreetment PROFESSIONAL LIABILITY LIMITS:$5,000,000 PER CLAIM/$5,000,000 AGGREGATE. (REQUESTED BY VINCE LAMARCA) CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE Ci of Bremerton THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. 345 6th Street Suite 600 Bremerton,WA 98337 AUTHORIZED REPRESENTATIVE ©1988-2014 ACORD CORPORATION. All rights reserved. 1 ACORD 25(2014/01) The ACORD name and logo are registered marks of ACORD -..1 DAVICOM-01 NGOETZ ACC)RO® DATE(MM/DDmwY) CERTIFICATE OF LIABILITY INSURANCE 9/30/2016 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must be endorsed. If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT NAME: Missoula Office PHONE406 721-1000 FPX Paynewest Insurance,Inc. (AIC,No,Ext):( ) (A/c,No): (406)721-9230 P.O.Box 4386 ADDRE Missoula,MT 59808 RECEIVED ADDRESS: INSURER(S)AFFORDING COVERAGE NAIC# OCT ® 4 2fl46 INSURERA:QUote Submission INSURED INSURER B:Great Northern Insurance Co. Davidson Fixed Income Management,Inc. INSURER C:Federal Insurance Company 20281 P O Box 5015 City Of Bremerton INSURER D:Hartford Insurance Co of Great Falls,MT 59403 Risk Management INSURER E:Axis Surplus Insurance Company . INSURER F: COVERAGES CERTIFICATE NUMBER:. REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE ADDL SUBR POLICY EFF POLICY EXP LIMITS LTR INSD_WVD POLICY NUMBER (MM/DD/YYYY) (MM/DD/YYYY) A X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE _$ 1,000,000 TE CLAIMS-MADE X OCCUR 35809634 10/01/2016 10/01/2017 pREM SEs Ea oNcurrOence) $ 1,000,000 MED EXP(Any one person) $ 5,000 PERSONAL ADV INJURY $ 1,000,000 GEN'LAGGREGATE LIMIT APPLIES PER: _GENERAL AGGREGATE $ 2,000,000 POLICY PRCJECT -LOC PRODUCTS COMP/OP AGG _$ 2,000,000 OTHER: $ AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ 1,000,000 (Ea accident) B X ANY AUTO 73564024 10/01/2016 10/01/2017 BODILY INJURY(Per person) $ ALL OWNED SCHEDULED BODILY INJURY(Per accident) $ AUTOS AUTOS NON-OWNED PROPERTY DAMAGE $ X HIRED AUTOS X AUTOS (Per accident) • $ X UMBRELLA LIAB ' X 'OCCUR EACH OCCURRENCE $ 15,000,000 C EXCESS LIAB 1 CLAIMS-MADE 79842305 10/01/2016 10/01/2017 AGGREGATE $ 15,000,000 DED X RETENTION$ 0 $ WORKERS COMPENSATION PER OTHX AND EMPLOYERS'LIABILITY STATUTE ER D ANY PROPRIETOR/PARTNER/EXECUTIVE Y/N 41WEBV2782 10/01/2016 10/01/2017 E.L.EACH ACCIDENT $ 1,000,000 OFFICER/MEMBER EXCLUDED? N/A (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $ 1,000,000 If yes,describe under DESCRIPTION OF OPERATIONSIbeIow E.L.DISEASE-POLICY LIMIT $ 1,000,000 E Professional Liab. MSN708207 10/01/2016 10/01/2017 Each Claim 5,000,000 DESCRIPTION OF OPERATIONS I LOCATIONS/VEHICLES (ACORD 101,Additional Remarks Schedule,may be attached if more space is required) Re: Investment Advisory Agreetment PROFESSIONAL LIABILITY LIMITS:$5,000,000 PER CLAIM/$5,000,000 AGGREGATE. (REQUESTED BY VINCE LAMARCA) CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE Cityof Bremerton THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. 345 6th Street Suite 600 Bremerton,WA 98337 AUTHORIZED REPRESENTATIVE ©1988-2014 ACORD CORPORATION. All rights reserved. ACORD 25(2014/01) The ACORD name and logo are registered marks of ACORD