Investment Management Services REQUEST FOR PROPOSALS

1 ALAMEDA CORRIDOR TRANSPORTATION AUTHORITY Investment Management Services REQUEST FOR PROPOSALS 2 July 20, 2016 Prospective Consultants: SUBJECT: REQUEST FOR PROPOSALS FOR Investment Management Services The Alameda Corridor Transportation Authority (ACTA) invites the submittal of PROPOSALS from qualified Investment advisors to provide Investment Management Services . The selected Investment advisor will be responsible for ACTA s portfolio providing, at a minimum, usual and customary Investment and advising Services as described in this REQUEST For PROPOSALS (RFP).

2 It is anticipated that the agreement will begin after approval by the ACTA Governing Board and will be for a period of three years with provisions for successive annual renewals. Instructions to be followed in preparing a proposal are found in the information included in this RFP. The schedule for this RFP will be as follows: REQUEST for PROPOSALS Published July 20, 2016 Questions Due July 27, 2016 Responses Posted August 3, 2016 PROPOSALS Due August 16, 2016 For questions regarding this RFP, please contact Phillip Le by email at Questions must be submitted by July 27, 2016 by 3pm.

3 Responses will be posted on ACTA s website at on August 3, 2016 by 5pm. It is the responsibility of any proposers to review ACTA s website for any RFP revisions or answers to questions prior to submitting a proposal in order to ensure their proposal is complete and responsive. Sincerely, JAMES P. PREUSCH Chief Financial Officer 3 TABLE OF CONTENTS 1 INTRODUCTION .. 4 Brief Overview of the Project .. 4 ACTA and the Alameda Corridor .. 4 2 PROJECT DESCRIPTION .. 4 Project Goals and Objectives.

4 4 Project Scope of Work .. 5 3 PROPOSAL REQUIREMENTS .. 5 Proposal Submission .. 5 Evaluation Process and Selection Criteria .. 6 Proposal Content .. 6 Checklist for RFP Submittal Requirements .. 9 EXHIBITS Exhibit A ACTA Investment Policy Exhibit B ACTA Organization Chart Exhibit C RFP Selection Evaluation Form 4 1 INTRODUCTION Brief Overview of the Project The Alameda Corridor Transportation Authority (ACTA) is seeking PROPOSALS from qualified firms interested in providing Investment Management Services to ACTA.

5 The duration of the contract awarded as a result of this RFP is expected to be three (3) years and four months from the later of either October 1, 2016 or the date of execution of the contract by ACTA s Chief Executive Officer, with a provision for ACTA to exercise optional successive annual renewals. ACTA and the Alameda Corridor ACTA is a joint powers authority formed by the Cities of Los Angeles and Long Beach through their respective Boards of Harbor Commissioners. A joint powers authority is a governmental entity formed by two or more governmental entities for the joint exercise of their authorized governmental powers.

6 ACTA s initial role was arranging for construction of the $ billion Alameda Corridor, a twenty-mile freight cargo rail expressway linking the ports of Los Angeles and Long Beach with the downtown Los Angeles trans-continental rail yards, the point from which more than $200 billion of the United States international ocean-borne commerce is distributed annually throughout the country. The Alameda Corridor began revenue operations in 2002. ACTA s current role involves Management of debt and debt service, oversight of rail operations on the Corridor, contracting for Services , and collection of revenues from the commercial railroads for use of the Corridor for moving goods.

7 In addition, ACTA provides program Management Services for various public works construction projects, typically on behalf of other governmental agencies. Pursuant to an Operating Agreement with ACTA, the Union Pacific Railroad and BNSF Railway pay Use Fees and Container Charges in connection with their use of the Corridor to move ocean-borne containers that originate or terminate at the Ports and are transported by rail into or out of Southern California. The Operating Agreement also provides for the operation, repair and maintenance of the Corridor and certain other operational matters.

8 ACTA s staff consists of nine full-time employees and one part-time employee who collectively are responsible for revenue collection, contractor oversight and program Management . ACTA accomplishes some of its program Management through its principal subcontractor, the Alameda Corridor Engineering Team, a joint venture of DMJM Harris, Inc., Moffatt & Nichol, Inc., Jenkins/Gales & Martinez, Inc. and TELACU Construction Management , Inc. See Exhibit B. 2 PROJECT DESCRIPTION Project Goals and Objectives ACTA is seeking PROPOSALS from qualified firms to: Provide Investment Services in a comprehensive manner to handle the day-to-day administration of the Authority s Investment portfolio; and Provide discretionary Investment advisory Services to help govern the Authority s Investment portfolio, currently valued at approximately $140 million.

9 5 Project Scope of Work ACTA intends to select one or more Investment managers for separate accounts that will consist of remaining bond construction proceeds, debt reserve funds, debt service funds (although the 1999 Series A and Series C principal and interest payments are invested in a forward purchase agreement), occasional grant funds, and any remaining operating funds (after satisfying debt service deposit requirements) from collection of fees charged to the Railroads.

10 These funds must be invested in compliance with California law and ACTA s Investment policy (See Exhibit A). Specific responsibilities of the selected Investment manager will include, but not be limited to, the following: Assist ACTA in the execution of an Investment strategy for each Investment portfolio. Manage, on a daily basis, investments of ACTA s funds assigned to it pursuant to the specific Investment objectives of the portfolio. Review cash flow projections developed by ACTA staff and its consultants to ensure that planned investments are consistent with cash requirements and cash flow projections.