CITY OF POMONA
COUNCIL REPORT
September 14, 2026
To: Honorable Mayor and Members of the City Council
From: Anita Scott, City Manager
Submitted By: Andrew Mowbray, Finance Director/City Treasurer SUBJECT: APPROVE AMENDED AND RESTATED AGREEMENT WITH CHANDLER ASSET MANAGEMENT, INC. FOR INVESTMENT MANAGEMENT SERVICES.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
Approve an Amended and Restated Agreement with Chandler Asset Management, Inc. for investment management services; specifically approve the continuing term pursuant to Pomona Municipal Code Section 2-984; recognize the specialty fiscal services basis for the Agreement under Pomona Municipal Code Section 2-993.2(8); and Authorize the City Manager to execute the Amended and Restated Agreement and related documents, and any additional amendments thereto, subject to approval as to form by the City Attorney.
EXECUTIVE SUMMARY:
The City of Pomona has utilized Chandler Asset Management, Inc. (Chandler) for investment management services since 2018. Chandler provides specialized fiscal services, including investment management, investment policy compliance monitoring, reporting, broker/dealer due diligence, and investment strategy support. Staff recommends approval of an Amended and Restated Agreement, to restate the operative agreement on a clean, go-forward basis and authorize the Agreement to continue until terminated in accordance with its terms. The Amended and Restated Agreement preserves important safeguards, including termination rights, annual appropriation and purchase order controls, fee proration, no penalty fees, confidentiality, insurance requirements, and performance obligations.
FISCAL IMPACT:
There is no additional fiscal impact. Services will continue under the Agreement's approved fee schedule, subject to annual appropriation, availability of funds, and any required purchase order or budget authorization.
PREVIOUS RELATED ACTION:
On September 10, 2018, City Council awarded the original agreement with Chandler Asset Management, Inc. for investment management services. The agreement was extended through October 31, 2023. On May 15, 2024, the City entered into a new Agreement for Professional Consultant Services through October 31, 2025, with two one-year extension options. The First Amendment extended the term through October 31, 2026.
DISCUSSION:
Professional investment management of public funds is a “best practice” that provides substantial benefits to the City. These benefits include day-to-day monitoring of investment yields available in the market; re-balancing of the portfolio's duration (average maturity) to take advantage of interest rate trends; credit monitoring and analysis; investment selection; and competitive shopping of investments to obtain the best rates.
The City of Pomona manages its investment activities in compliance with the Statement of Investment Policy, which is reviewed and adopted annually by the City Council. Chandler has provided excellent services to the City managing investments within the requirements of the City’s Investment Policy and maximizing investment earnings for the City.
Staff recommends an Amended and Restated Agreement to avoid confusion with any prior agreement or extension documents, and to restate the operative terms in a single agreement on a go-forward basis. The Amended and Restated Agreement will supersede the existing agreement, as amended, for services performed after its effective date and will authorize the Agreement to continue until terminated in accordance with its terms.
Section 2-993.2(8) of the Municipal Code provides that the City Manager or designee has authority to approve specialty services related to fiscal and/or personnel matters. That language supports treating the Chandler agreement similarly to other ongoing banking/fiscal services that are not routinely put out for bid. Section 2-984 separately limits contract duration and requires City Council approval for contracts exceeding five years. Because the Amended and Restated Agreement would continue until terminated rather than expire on a fixed date, Council approval is being requested to specifically approve the continuing term.
The Amended and Restated Agreement does not remove City control or create a non-cancelable obligation. It preserves the City's ability to terminate if services are no longer needed, performance is unsatisfactory, funds are not appropriated, required purchase order or budget authorization is not issued, or the City elects to pursue another approach. Staff recommends approval because Chandler provides ongoing specialized fiscal services related to the City's investment management operations.
Prepared by:
_____________________________
Andrew Mowbray
Finance Director/City Treasurer
ATTACHMENT(S): Attachment No. 1 - Amended and Restated Agreement Amended and Restated Agreement with Chandler Asset Management, Inc. for Investment Management Services