Agenda Report
Fullerton City Council
MEETING DATE: November 21, 2023
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: Ellis chang, director of administrative services PREPARED BY: Ellis chang, director of administrative services SUBJECT: CONTRACT EXTENSION WITH PUBLIC TRUST ADVISORS, LLC FOR INVESTMENT ADVISORY SERVICES
SUMMARY
City Council consideration to extend contract with Public Trust Advisors, LLC for investment advisory services to December 31, 2025. The current contract expires on December 31, 2023.
RECOMMENDATION
Approve sixth amendment to agreement between the City of Fullerton and Public Trust Advisors, LLC for investment advisory services and authorize Director of Administrative Services / City Treasurer to execute and administer agreement, in a form approved by the City Attorney.
CITY MANAGER REMARKS
The City Manager requests City Council consideration to extend the existing contract for 2 years.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Fiscal and Organizational Stability.
FISCAL IMPACT
No additional budgetary impact. The fee structure remains as follows:
Assets Under Management
Fees in Basis Points (bps)
Up to $50 million
5 bps (0.05%)
Next $50 million
4.5 bps (0.045%)
Over $100 million
4 bps (0.04%)
The City had approximately $118.6 million assets under management as of September 30, 2019. Annual fees totaled approximately $52,200 in Fiscal Year 2022-23.
DISCUSSION
Public Trust Advisors, LLC manages over $78.0 billion in assets for government agencies nationwide. Public Trust professionals provided investment advisory and management services to public entities in California for more than 20 years, guided by California investment code and California specific characteristics. Public Trust’s team dedicated to the City combines significant portfolio management and investment advisory experience with robust credit research analysis to structure investment portfolios meeting City investment objectives and enhancing the potential for higher returns. Public Trust Advisors City portfolio management has, on average, met or exceeded the investment benchmarks established by the Investment Advisory Committee and ensured compliance with the City Investment Policy and state guidelines since inception. This extension period would provide staff the time to issue a Request for Proposal.
Attachments:
Attachment 1 – Sixth Amendment to Agreement with Public Trust Advisors, LLC cc: City Manager Eric J. Levitt
Contract Extension with Public Trust Advisors, LLC for Investment Advisory Services November 21, 2023 - Page 2