Title
Staff Report for a City of San Leandro City Council Resolution to Approve Amendment No. 2 to the Term of the Agreement between the City of San Leandro and Chandler Asset Management for Investment Services through June 30, 2021, to Add an Additional $40,000 per Fiscal Year for a total of $115,000 per Fiscal Year, and to Approve Appropriation of $40,000 per Fiscal Year from the General Fund Fund Balance
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends the City Council review and approve Amendment No. 2 to the Term of the Agreement and amount of compensation between the City of San Leandro and Chandler Asset Management for investment services through June 30, 2021.
Staff further recommends the City Council approve an additional appropriation of $40,000 per fiscal year (2019-20 and 2020-21) from the General Fund fund balance.
BACKGROUND
On October 3, 2016, the City Council approved a consulting services agreement with Chandler Asset Management for investment services of City funds through June 30, 2020. Chandler was selected based on its ability to assist the City in developing an investment management program that established appropriate durations of investments based on the City's cash flow needs, and that was aligned with the City's conservative investment approach.
Analysis
Over the last three and one-half years, Chandler Asset Management has provided the following services to the City:
* Full-time management of the City's investment portfolio;
* Development and implementation of investment strategies that enhance the City's portfolio performance within the parameters of the City's Investment Policy and California State law;
* Assist City staff in reviewing and updating, at least annually, the City's Investment Policy to ensure all regulatory updates are included, and the City's evolving priorities are reflected in the portfolio;
* Monthly consultation with City staff regarding the City's cash flow needs, investment opportunities and ma...
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