Report Prepared by: Venus Rodriguez, Interim Finance Officer
Title
SUBJECT: Investment Advisory Services and Trust 115 for Pension Liability
REPORT IN BRIEF
Request City Council direction to move forward with Investment Advisory Services and Trust 115 for Pension Liability. Consider naming two City Council members to a Selection Committee.
RECOMMENDATION
City Council - Adopt a motion:
A. Directing staff to Issue a Request for Proposal for Investment Advisory Services; and
B. Directing staff to evaluate the benefits of establishing a Trust 115 for Pension Liability and, if determined beneficial, Issue a Request for Quote or Proposal; and
C. Naming two City Council members to a Selection Committee.
Body
ALTERNATIVES
1. Approve as recommended by staff; or
2. Approve subject to amended conditions to be addressed in the City Council motion; or
3. Deny; or
4. Continue item to a future City Council meeting (date and time to be specified in City Council motion.)
CITY COUNCIL PRIORITIES
As provided for in the 2017-18 Adopted Budget.
DISCUSSION
The Finance Department has been through significant transition in the past six months. Due to time constraints and lack of resources, the department is unable to spend quality time in researching, monitoring, and evaluating investments. The current practice is that, when funds are available to invest, we request offers from at least two brokers that comply with our current City Investment Policy. The Deputy Finance Officer and/or Finance Officer then review the offers and make(s) a selection. In review, some of the benefits of using an external investment advisor are that they have the expertise, time, and resources to analyze our cash flow to maximize investment earnings. Staff would like to request proposals for Investment Advisory Services.
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