Report Prepared by: Julie Trujillo, Deputy Finance Officer
Title
SUBJECT: Approval of Second Amendment to Agreement for Consultant Services with Chandler Asset Management to Provide Investment Portfolio Management Services for an Additional Two Years
REPORT IN BRIEF
Considers approval of the Second Amendment to Agreement with Chandler Asset Management to provide investment portfolio management services for an additional two years.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the Second Amendment to Agreement with Chandler Asset Management for Investment Advisory Services; and,
B. Authorizing the 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 2022-23 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.
After a request for proposal process, the City Council on March 5, 2018, awarded Chandler Asset Management a three (3) year agreement with a two (2) one (1) year options for renewal to provide investment portfolio management services. On March 5, 2021, the City and Chandler agreed to a first amendment to extend the agreement to March 4, 2023. The contract also required 30-day written notice of intent to extend the agreement to co...
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