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FROM:
Agenda Report
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February 26, 2024
Honorable Mayor and City Council/Deferred Compensation Plan Trustees Finance Department
SUBJECT: AUTHORIZATION TO ENTER INTO A CONTRACT WITH MORGAN
STANLEY INSTITUTIONAL INVESTMENT ADVISORS LLC DBAHYAS
GROUP FOR FINANCIAL ADVISOR SERVICES RELATED TO THE
CITY'S DEFERRED COMPENSATION PROGRAM FOR AN AMOUNT
NOT-TO-EXCEED $185,000
RECOMMENDATION:
It is recommended th at the City Council:
1. Find that the action proposed herein is covered by the common sense exemption set forth in the State of California Environmental Quality Act ("CEQA") Guidelines Section 15061 (b)(3) that CEQA only applies to projects that may have a significant effect on the environment; and
2. Authorize the City Managerto inter into a contract, as a result of a competitive selection process, as specified in Section 4.08.047 of the Pasadena Municipal Code, with Morgan Stanley Institutional Investment Advisors LLC DBA Hyas Group (Hyas Group) for financial advisor services related to the City's Deferred Compensation Program in an amountnot-to-exceed $185,000 for five years.
Competitive bidding is not required pursuant to City Charter Section 1002(F), contracts for professional or unique services.
BACKGROUND:
The City of Pasadena's 457(b) Deferred Compensation plan is overseen by the Deferred Compensation Committee (Committee). The Committee consists of five members: three members elected by City employees and two members appointed by the City Council.
The financial advisor provides assistance to the Committee, by reviewing the investment portfolio on a quarterly basis to ensure performance within the parameters of the plan's investment policy. The financial advisor also holds accountable the plan's record keeper, Empower Retirement (Empower), and will coordinate the Request for I
MEETING OF2/26/2024AGENDA ITEM NO. __/7
Contract with Morgan Stanley DBA Hyas Group for financial advisor services February 26, 2024
Proposal (RFP) process to solicit these services prior to the expiration of the current contract with Empower.
The Hyas Group, has been the financial advisorforthe City's Deferred Compensation Plan for several years and was last selected through an RFP process in June 2017.
On August 23, 2023, an RFP was released, and two responses were received on September 22, 2023. Neither of the responses were from Pasadena-based businesses.
Firm Name
hfyas
CAPTRUST Financial Advisors
Location
Portland, OR
Raleigh, NC
Score
87.5 78.51
A complete summary of the ranked proposals is included in Attachment A. There were 406 vendors notified of the RFP and 21 businesses downloaded the RFP.No Pasadena-based businesses downloaded the RFP.
COUNCIL POLICY CONSIDERATION:
The contractwith Hyas Group supports the City Council's strategic planning goal to maintain fiscal responsibility and stability.
ENVIRONMENTALANALYSIS:
The action proposed herein has been determined to be exempt from environmental review pursuanttothe guidelines ofCEQA, Section 15061 (b)(3), the "Common Sense" exemption thatCEQA applies only to projects which may have the potential for causing a significant effect on the environment. Where it can be seen with certainty th at th ere is no possibility that the activity in question may have a significant effect on the environment, the activity is notsubjectto CEQA. Such is the case with the proposed contract with hlyas for financial advisor services.
Contract with Morgan Stanley DBA hlyas Group for financial advisor services February 26, 2024
FISCAL IMPACT:
The cost of the recommended action is $37,000 per year, with a not-to-exceed amount of $185,000. The Finance Departmentwill utilize existing budgeted appropriations in the Benefits Fund to support the con tract costs.
Respectfully submitted,
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Matthew Ha(<wf<esworth
Director of Finance/Plan Administrator
Finance Department
Concurred by:
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Michael P^voda
Chair
Deferred Compensation Board
Approved by:
<RQUEZ
City Manager
Attachments): (1)
1) Attachment A-Summary of Ranked Proposals