Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute a Professional Services Agreement for Investment Portfolio Management Services with PFM Asset Management LLC for a not-to-exceed amount of $110,000 annually
Staffreport
SUMMARY
In April 2025, Finance conducted a Request for Proposal (RFP) for investment management services with a start date of July 1, 2025. The City received three (3) proposals for review and consideration. Staff recommends engaging with PFM Asset Management for investment management services.
RECOMMENDATION
Staff recommends that the City Council approve the consultant services agreement (CSA) between the City of San Leandro and PFM Asset Management for investment services for a term of three-years with two (2) optional one-year extension for a not-to-exceed amount of $110,000 annually.
BACKGROUND & DISCUSSION
Since 2016, Chandler Asset Management has provided the following services related to the management of the City's investment portfolio:
* Consulting with staff regarding the City's cash flow needs, investment opportunities, and market conditions.
* Executing, confirming, and settling trades with the City's safekeeping bank.
* Reviewing the City's investment policy and confirming all regulatory updates.
* Monitoring creditworthiness of investments.
* Reporting monthly and quarterly and analyzing investment holdings and performance.
* Adhering to the City's approved investment philosophy related to safety, liquidity, and yield.
On May 6, 2024, the City Council approved an amendment to the current consulting services agreement with Chandler Asset Management for investment management services of City funds. The current agreement is set to expire on June 30, 2025.
Government Finance Officers Association (GFOA) recommends that agencies perform on-going review of investment advisory services and perform regular review processes. In April 2025, the City conducted a competitive RFP for investment management ...
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