Report Prepared by: Julie A. Trujillo, Deputy Finance Officer
Title
SUBJECT: Agreement for Consultant Services with Chandler Asset Management to Provide Investment Portfolio Management Services
REPORT IN BRIEF
Considers awarding a three (3) year agreement with two (2) one (1) year options for renewal to Chandler Asset Management to provide investment portfolio management services
RECOMMENDATION
City Council - Adopt a motion approving the contract with Chandler Asset Management for Investment Advisory Services; and authorizing the City Manager or Assistant City Manager to execute all necessary documents.
Body
ALTERNATIVES
1. Adopt the motion as recommended by staff; or
2. Modify the action (specify in motion); or
3. Deny the action.
AUTHORITY
Section 1118 of Article XI of the Charter of the City of Merced.
CITY COUNCIL PRIORITIES
As provided for in the 2017-18 Adopted Budget.
DISCUSSION
The Finance Officer is designated as the city's investment officer and is responsible for all investment decisions. The Finance Officer also has responsibility for developing and maintaining administrative procedures for the operation of the investment program to be consistent with the city's investment policy.
The city's investment policy objectives are the safety of principal, maintaining a sufficient liquidity level to meet operating needs and to secure an average rate of return equal to or greater than three-month U.S. Treasury bills or the average rate on Federal funds.
While the objectives of the city's investment policy continue to be met, staff believes that the return on investments can be greater by utilizing the expertise of an investment advisor that specializes in the management of portfolios of governmental entities. Greater returns can be achieved by creating an investment strategy allowable by California code while still maintaining safety and liquidity.
On October 16, 2017, the City Council approved the Finance Department to proceed with is...
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