Title
Staff Report for a City of San Leandro City Council Resolution Approving Amendment No. 1 of the Agreement between the City of San Leandro and Chandler Asset Management for Investment Services to Increase per Fiscal Year not to Exceed Amount to $75,000 effective July 1, 2018
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council review and approve amendment no. 1 of the agreement between the City of San Leandro and Chandler Asset Management for investment services effective July 1, 2018 to increase the per fiscal year not to exceed amount to $75,000.
BACKGROUND
On April 12, 2004, City Council approved a consulting services agreement with Chandler Asset Management for investment services of City funds. Chandler was selected based on their ability to assist the City in establishing an investment management program, appropriate duration of investment needs of the City and the investment philosophy aligned with the City's investment strategy emphasizing Safety, Liquidity and Yield.
Originally, Council approved initial investments of $40 million with an estimated annual cost to the City of $40,000 for services provided by Chandler.
On October 3, 2016, City Council approved a new agreement with Chandler effective July 1, 2016 through June 30, 2020 for a not to exceed amount of $50,000 per fiscal year. No additional appropriation was necessary since the adopted budget contained sufficient funding to cover the potential increase.
Analysis
Chandler Asset Management continues to provide excellent investment services to the City of San Leandro including monthly consultation with City staff regarding the City's cash flow needs, investment opportunities and market conditions, trade executions, to monthly/quarterly reporting and analysis of investment holdings and performance.
Over the years, the amounts invested in the City's portfolio ranged from a low of $27.8 million for fiscal year ended June 30, 2010, to a high of $65.2 million f...
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