Form Rev 3/6/2023
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AN AGREEMENT BETWEEN
THE CITY AND CHANDLER ASSET MANAGEMENT, INC TO
PROVIDE NON-DISCRETIONARY INVESTMENT
MANAGEMENT SERVICES
WHEREAS, the investment of City funds is guided by the California Government Code Section 53600, et seq. and the City’s Investment Policy and Guidelines (Policy), last amended March 7, 2023; and
WHEREAS, the Policy is reviewed and adopted annually by the City Council and is intended to provide guidelines for prudent investment of City cash balances, and outline policies to assist in maximizing the efficiency of the City’s cash management system, while meeting the daily cash flow demands of the City; and
WHEREAS, annually, t he City Council delegates the responsibility for the investment program to the Director of Finance/Treasurer; and
WHEREAS, per the Policy, the Director of Finance/Treasurer may delegate day -to-day investment decision making and execution authority to an investment advisor; and
WHEREAS, the Finance Department currently manages the City’s investment portfolio of $519 million, as of March 31, 2023; and
WHEREAS, the investment portfolio is currently managed with the objective that all investments are made under the terms and conditions of California Government Code Section 53600, et seq. and that all investments are selected in the order of safety, liquidity, and return on investments; and
WHEREAS, the Finance Department is recommending the use of an exp erienced and qualified consultant to provide non-discretionary investment management services to manage the City’s investment portfolio; and
WHEREAS, with these services, the City’s investment portfolio would transition to being actively managed by an investment advisory firm, however the City will continue to maintain the discretion to approve all recommended investment transactions before execution; and
WHEREAS, in order to procure these services the City solicited proposals in accordance with Chula Vista Municipal Code Section 2.56.080 for contracts exceeding $100,000, received four (4) proposals; and
WHEREAS, after the selection committee reviewed each response, they selected the Chandler Asset Management, Inc as the most qualified amongst those submitting and Resolution No.
recommended the non -discretionary investment management services agreement be awarded to Chandler Asset Management, Inc; and
WHEREAS, the proposed agreement with Chandler Asset Management, Inc is a three-year agreement from May 23, 2023 to June 30, 2026 with up to two (2) one-year renewal options for a total of five (5) years (potentially through June 30, 2028); and
WHEREAS, the annual cost for this agreement is estimated to be approximately $205,000 and is included in the current fiscal year appropriations.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the agreement, between the City and Chandler Asset Management, Inc, in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes and directs the Mayor to execute the same.
Presented by Approved as to form
By:
Sarah Schoen Jill D.S. Maland
Director of Finance/Treasurer Lounsbery Ferguson Altona & Peak Acting City Attorney