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Commission tables consideration of 3plus1 liquidity service, directs RFP process for broader investment review
Summary
After a lengthy discussion about municipal cash-management options and broker/adviser models, the commission voted 5-0 to table a proposed sole-source contract with 3 Plus 1 for liquidity and treasury analysis and directed staff to pursue an RFP/RFQ and further finance-committee review.
The Safety Harbor City Commission on Monday voted 5-0 to table action on a one-year, $30,000 professional services agreement with 3 Plus 1 Inc. that would have provided continuous liquidity and treasury-analysis monitoring of the city’s cash and accounts.
Al Braithwaite, a finance consultant working with staff, presented the 3 Plus 1 proposal and described the firm’s proprietary software that analyzes bank/deposit data to identify opportunities to extend investment durations while maintaining liquidity. Braithwaite said the vendor charges $250 per $1 million of the city’s last approved budget and offered a guarantee: if the vendor’s cash-vest analysis did not show a one-to-one benefit compared to the fee, the analysis would be provided at no cost.
Commission debate was robust and wide-ranging. Several commissioners asked whether the city’s current broker relationship (Stifel) or a potential full-service investment adviser could provide similar services, and whether sole-source procurement was appropriate. Victoria (Vicky) Gilley, the city’s finance director, clarified custodial arrangements and said Regions serves as custodian while the city currently uses Stifel for broker services. Public commenter Bruce Hedberg, a former Raymond James vice president, urged skepticism and called for benchmarking and laddering of maturities rather than relying solely on proprietary algorithms: “It comes down to the return and the laddering — the maturity dates to match when we have projects coming up,” he said.
Multiple commissioners and staff recommended pursuing a formal procurement process to identify an investment adviser or manager who could provide a holistic review of the city’s portfolio and fees; several suggested involving the Finance Advisory Committee as an evaluation panel. The commission ultimately moved to table consideration of the 3 Plus 1 agreement and directed staff to prepare an RFP/RFQ and return with recommendations. The tabling motion carried 5-0.
