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HomeMy WebLinkAbout5321 Contract Number: 5321 Vendor: DAVIDSON FIXED INCOME MANAGEMENT, INC. Subject: Advisory Agreement Department: Finance File Class: LEG 12 -1 Begin Date: 9/1/2013 End Date: 2/10/2014 Review Date: Vault Date: 2014 Comments: CLOSED Dav�dson Fixed Income Management REG151ERED PIVBTMEM ADV6ER DAVIDSON FIXED INCOME MANAGEMENT, INC. ADVISORY AGREEMENT Tlus Agreement is entered into on ttus l day of September, 2013 between Davidson Fixed Income Management, Inc (Heremafter referred to as the "ADVISOR") and The City of Bremerton (heremafter referred to as "THE CITY") Services will be provided to TI� CTTY by the ADVISOR's portfoho managers located at 5550 S W Macadam Avenue, Suite 110, Portland, Oregon 97239 In considerat�on of the mutual promises, covenants and undertakmgs set forth herem, the parhes hereby agree as follows APPOINTMENT OF ADVISOR THE CITY hereby appomts the ADVISOR and the ADVISOR hereby agrees to provide mvestment advisory services for TI� CITY's mvestment portfoho (hereinafter referred to as the "ACCOUNT") SCOPE OF SERVICES The ADVISOR shall provide the followmg 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 constraints for each fund balance D Make recommendat�ons as to asset allocat�on to mamtam the targeted nsk and retum profile E Assist m effect�ng and managing of mvestment transactaons The ADVISOR will provide disclosure to THE CTTY regarding 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 duectly with its approved broker/dealer hst The ADVISOR agrees to monitor all setdements for dehvery versus payment transact�ons with TI-iE CTTY between the custodial bank and the dealers F Provide reports for the fund accounts wluch 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 Lquidity profiles of all funds, mdividually and collect�vely Total return reports will be provided on a monthly basis companng the portfoho performance relat�ve the appropnate benchmark G Provide techrucal support m analyzmg portfoho informat�on H Report relevant market informat�on in a t�mely manner Key econonuc indicators, events and informat�on relevant to managed portfohos will be provided at least quarterly and more frequent as necessary or requested I Assist in reviewing third party custodial providers J Hold a review meet�ng wittun six months of the begmrung of ttus contract, either at TI-�E CITY's offices or ADVISOR's office K Other Investment advisory services as needed, includmg (i) Consultat�on on other investment funds as needed, such as reserve funds Page 1 of 5 'THE CITY, by entenng into tlus agreement does not sunender ownerstup of the cash or secunt�es 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) This contract provides for the tradmg authonzat�on for THE CTTY The persons authonzed to affirm transact�ons recommended by the ADVISOR are Rabecca R Hasart — Dtrector of Financial Services Cathenne Johnson — Asst Dcrector of Flnancaal Services N01v -DISCRETIONARY SERVICES TI� ADVISOR will make recommenl�dt�ons with respect to the investments of the ACCOUNT but will not make discredonary mvestment decisions The ADVISOR's recommendat�ons will be given in wnt�ng, by telephone or by email to the designated authonzed person at THE CITY and must receive affumat�on to proceed with the transact�on from a designated authonzed person pnor to execut�ng the purchase or sale of any secunt�es REPORTS In order that THE CITY may be kept informed of the status and act�vit�es in the ACCOiJNT the ADVISOR shall furrush monthly statements relat�ng to the ACCOUNT The statements the ADVISOR agrees to furnish to TI� CITY will provide details of a11 transact�ons mvolvmg the ACCOUNT, a month end hst�ng of mvestments held in the ACCOUNT, and a reporhng on the performance of the ACCOUNT Such statements will be furnished to THE CITY witlun fifteen (15) days t�me after the close of each month INVESTMENT OBJECTIVES AND RESTRICTIONS The ADVISOR's investment decisions or recommendat�ons for the ACCOUNT will be m accordance with such investment pol�cies and restnct�ons as TI� CTTY may estabhsh for the ACCOLTNT per the attached Statement of Investment Pohcy and Ob�ect�ves Extubit A All quest�ons regarding any poLcies 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 wnt�ng of such pohcies and restnct�ons and of any changes therem, and to give the ADVISOR prompt wntten not�ce if Cl�ent deems any mvestment decisions or recommendat�ons made for the ACCOUNT to be in violahon 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 �udgment 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 SERVICFS 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 investment act�on on behalf of such other chents, wluch differs from the mvestment act�on taken on behalf of the ACCOUNT If the purchase or sale of secunt�es for the ACCOiJNT 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 chents 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, m compLance with all laws and regulat�ons apphcable to it and govermng mvestments, and that all necessary act�ons requued to authonze such act�vit�es have, to the best of its knowledge, been taken SAFEKEEPING THE CITY acknowledges that it will assign a third party custodial bank to provide for the holdmg and dehvery of all secunt�es THE CTTY will control all fund transfers in and out of the account VE�v[7E: In the event that either party deems it necessary to inst�tute legal act�on or proceedmgs to enforce any nght or obhgat�on under ttus Agreement, the parties agree that any such act�on or proceedmg shall be brought m the Supenor Court of the State of Wastungton in Kitsap County Each party is responsible for its own legal fees and costs unless otherwise allowed by law TERM: The term of ttus agreement shall be for 1 year from the date hereof Ttus agreement may be temunated 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 parties with respect to the matters contamed herein and no modificat�on of ttus 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 furrushed by either party to the other hereunder will be treated as confidential and may not be disclosed to third parties except as requued by operat�on of law or the legit�mate business necessity of the disclosmg party D�SCLOSVx� STA�MErrr The ADVISOR represents that it has dehvered to TI� CITY, at least two busmess days pnor to the execut�on of ttus Agreement, ADVISOR's current Form ADV, Part II By sigrung tlus Agreement below, TI� CTTY hereby acknowledges its receipt of said document at least two business days pnor to its execut�on of ttus Agreement KEY PERSONNEL The ADVISOR acknowledges and TI� CTTY lured the ADVISOR because of the special quahficat�ons 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, THE CTTY shall have the nght to approve or disapprove the proposed replacement(s) MISCELLANEOUS This Agreement may not be assigned by either of the part.�es without the pnor wntten consent of the other This Agreement const�tutes the entue agreement of the parties with respect to the matters contamed herein and no modsficat�on of tlus Agreement shall be effect�ve unless such modificahon is in wnt�ng and signed by the parhes hereto Page 3 of 5 This Agreement shall be governed by the laws of the State of Washington, and furthermore by the Investment Advisors Act of 1940 and the rules and regulations promulgated by the Secunties and Exchange City under said act INSURANCE AND HOLD HARMLESS Pnor to and dunng the performance of the work covered under this Agreement, ADVISOR shall provide the Risk manager for the City of Bremerton with evidence that it has obtamed and maintams m full force and effect dunng the term of this Agreement a policy of professional liability insurance, providing coverage of at least $1,000,000 agamst professional liability for errors and omissions m connection with the work to be performed by ADVISOR under this Agreement Risk Manager shall be provided thirty (30) days' wntten nohce of any cancellation of said professional liability msurance ADVISOR shall, at all times, be solely responsible for the acts of failures to act of its personnel which occur or anse in any way out of the performance of this Agreement ADVISOR agrees to save and hold THE CITY, its personnel and officials, harmless from all costs, expenses losses and damages, mcluding the cost of defense, incurred as a result of any acts or omissions of ADVISOR personnel relating solely to the performance of this Agreement Notices and reports as called for herem shall be mailed, in the care of ACCOUNT: City of Bremerton 345 6` Street , Suite 600 Bremerton, WA 98337 Phone (360) 473-5296 Cathenne Johnson Asst Director of Fanancial Servtces AGR�ED TO AND ACCEPTED• CITY OF BREMERTON Patty L�xf Printed or Typed Name Mayor Title -- 9 - 2��3 Date ADVISOR. Davidson Fixed Income Management, Inc 5550 SW Macadam Ave Suite 110 Portland, OR 97239 Phone (866) 999-2374 Deanne Woodnng, CFA Managang Darector Page 4 of 5 AGREED TO AND ACCEPTED: DAVIDSON F�XED INCOME MANAGEMENT, INC Scgnature Deanne Woodnng Pranted or Typed Name Managing D�rector Title Date Page 5 of 5 ____„.......miN DAVICOM-01 NKUNZ AC-CP/ZEE 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. INC.No,Ext):'Anal IA/c,No): ( ) P.O.BOX 4386 E-MAIL ADDRESS: Missoula,MT 59808 OCT 0.9 2015 INSURER(S)AFFORDING COVERAGE NAIC# INSURERA:Great Northern Insurance Co. INSURED 20281 City of Bremerton INSURERB: eeransuranceom any Davidson Fixed Income Management,Inc.Risk Management INSURER c:Hartford Insurance Co of P O 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 ADDL SUBR POLICY EFF POLICY EXP LTR TYPE OF INSURANCE INSD WVD POLICY NUMBER (MM/DD/YYYY) (MM/DDIYYYY) LIMITS A X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 CLAIMS-MADE X OCCUR 35809634 10/01/2015 10/01/2016 PREMSESO(Eaoccurence) $ 1,000,000 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- 'LOCPRODUCTS-COMP/OP AGG $ 2,000,000 JECT _ OTHER: •:C $ AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ 1,000,000 (Ea accident) A X ANY AUTO 73564024 10/01/2015 10/01/2016 BODILY INJURY(Per person) $ ALL OWNED SCHEDULED BODILY INJURY(Per accident) $ AUTOS _ AUTOS PROPERTY DAMAGE X HIRED AUTOS X $ NON-OWNED (Per accident) • AUTOS $ 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 YIN 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 1,000,000 DESCRIPTION OF OPERATIONS below _E.L.DISEASE-POLICY LIMIT $ 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 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 Cut o & 1 ©1988-2014 ACORD CORPORATION. All rights reserved. ACORD 25(2014/01) The ACORD name and logo are registered marks of ACORD __,...."1 DAVICOM-01 NGOETZ ACOREr . DATE(MM/DD/YYYY) �� 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 PHONE 406 721-1000 FAX Paynewest Insurance,Inc. (A/C,No,Ext):( ) (A/C,No): (406)721-9230 P.O.Box 4386 E-MAIL ADDRESS: Missoula,MT 59808 RECEIVED INSURER(S)AFFORDING COVERAGE NAIC# OUT ® 2�1E INSURER A:QUOte Submission INSURED L INSURER B:Great Northern Insurance Co. Davidson Fixed Income Management,Inc. INSURER C:Federal Insurance Company 20281 P 0 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 SUER POLICY EFF POLICY EXPVD LIMITS LTR INSD WPOLICY NUMBER (MM/DD/YYYY) (MM/DD/YYYY) A X COMMERCIAL GENERAL LIABILITYEACH OCCURRENCE $ 1,000,000 CLAIMS-MADE X OCCUR 35809634 10/01/2016 10/01/2017 DAMAGETOS(EaRENTEDoccurrence) $ 1�000,000 PREMISE MED EXP(Any one person) $ 5,000 PERSONAL&ADV INJURY $ 1,000,000 GE 'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000,000 POLICY PEc 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 XX NON-OWNED PROPERTY DAMAGE $ HIRED AUTOS AUTOS (Per accident) $ X UMBRELLA LIAB I X OCCUR EACH OCCURRENCE $ 15,000,000 C EXCESS LIAB CLAIMS-MADE 79842305 10/01/2016 10/01/2017 AGGREGATE $ 15,000,000 DED X RETENTION$ 0 $ WORKERS COMPENSATION X MUTE EMPLOYERS'LIABILITY STATUTE ER Y/N D ANY PROPRIETOR/PARTNER/EXECUTIVE 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 1,000,000 DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ E Professional Liab. MSN708207 10/01/2016 10/01/2017 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 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 IttabriACk dor I ©1988-2014 ACORD CORPORATION. All rights reserved. ACORD 25(2014/01) The ACORD name and logo are registered marks of ACORD