Title
Adopt a Resolution for the City Manager to Approve Amendment No. 1 to Consultant Services Agreement between the City of San Leandro and Chandler Asset Management for Investment Services Effective July 1, 2024
Staffreport
CITY COUNCIL PRIORITY
* Fiscal Sustainability and Transparency
SUMMARY
Amends the agreement between the City of San Leandro and Chandler Asset Management for investment services effective July 1, 2024.
RECOMMENDATION
Staff recommends that the City Council review and approve Amendment No. 1 to the Consultant Services Agreement between the City of San Leandro and Chandler Asset Management for investment services through June 30, 2024.
BACKGROUND
On June 7, 2021, the City Council approved the most recent consulting services agreement with Chandler Asset Management for investment services for City funds. The term of this agreement runs through June 30, 2024. Chandler's contract was extended at that time based on its years assisting the City in the investment management program.
Analysis
Over many years, Chandler Asset Management has provided the following services related to the 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.
Over the years, the amounts invested in the City's portfolio have steadily increased to the current level of nearly $190,000,000. Chandler's monthly fee is based on the value of the investment portfolio.
Under the existing agreement, the fee schedule consists of three tiers for assets under management between $25,000 and more than $50,000,000...
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