Agenda Item: 9
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: June 23, 2026
SUBJECT: INVESTMENT MANAGEMENT AND ADVISORY SERVICES
CONTRACT
DEPARTMENT: Administrative Services
PRESENTER: German Lopez
RECOMMENDED ACTION
City Council:
1. Award a three-year contract to PFM Asset Management, a division of U.S. Bancorp Asset Management, Inc., for investment management and advisory services in an amount not to exceed $275,000 annually, for a total contract amount not to exceed $825,000.
2. Authorize the City Manager or designee to execute up to two additional one-year renewal options beginning in year four, not to exceed the annual contract amount of $275,000 plus adjustments necessary for changes in portfolio size in accordance with the fee schedule.
3. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney review.
BACKGROUND
An investment advisor is utilized by the City of Santa Clarita (City) to strategically invest the City’s idle funds in a manner which will provide the maximum security with best investment return, while meeting the daily cash flow demands of the City and conforming to all state/province and local statutes governing the investment of public funds. A full-service investment management firm provides value to the City because it has the resources necessary to formulate investment strategies, manage risk, and capitalize on market opportunities in a timely, reliable manner.
To ensure the City receives high-quality investment management and advisory services, a Request for Proposals (RFP) was published on April 1, 2026. The RFP was published on BidNet, the City's electronic procurement platform. The City transmitted the solicitation to 1,158 vendors
on BidNet, of which 76 firms downloaded the RFP. A total of 10 firms submitted proposals for consideration.
These proposals were reviewed and evaluated based on each company’s ability to meet the specific needs of the City. An evaluation panel comprised of City staff reviewed and scored the responses using the following categories of weighted criteria:
• The firm adheres to the instructions in this request for proposals on preparing and submitting the proposals (15 points)
• The firm’s past experience and performance on comparable government portfolios (30 points)
• Adequacy of proposed staffing plan (20 points)
• Commitment to meet the needs of the City as described in the Scope of Work section (20 points)
• The firm’s technology and user platform (15 points)
The evaluation team scored the responses based on a 100-point system, with the results outlined below:
Rank Company Location Score
1 Meeder Public Funds Dublin, OH 93
2 Chandler Asset Management San Diego, CA 93
3 Public Trust Advisors Orlando, FL 91
4 PFM Asset Management, a division of
U.S. Bancorp Asset Management, Inc.
Minneapolis, MN 91
5 Insight Investment New York, NY 90
6 RBC Global Asset Management Minneapolis, MN 88
7 Garcia Hamilton & Associates, L.P. Houston, TX 87
8 Clearwater Advisors Boise, ID 86
9 Columbia Capital Management, LLC Merriam, KS 85
10 Academy Asset Management New York, NY 85
In addition to evaluating written proposals, City staff conducted interviews with the four highest- scoring firms: Meeder Public Funds, Chandler Asset Management, Public Trust Advisors, and PFM Asset Management, a division of U.S. Bancorp Asset Management, Inc. (PFMAM), the City’s current investment advisor. The interviews provided an opportunity for firms to further discuss their approach and demonstrate the ability and capacity to manage the City’s current investment portfolio, which consists of approximately $500 million in assets.
Interview scores were as follows (100 points maximum):
Rank
Company
Location
Interview
Score
Proposal
Score
Total
Score
1 PFM Asset Management, a division of
U.S. Bancorp Asset Management, Inc.
Minneapolis, MN 99 91
190
2 Public Trust Advisors Orlando, FL 96 91 187
(Cont).
Rank
Company
Location
Interview
Score
Proposal
Score
Total
Score
3 Chandler Asset Management San Diego, CA 94 93 187
4 Meeder Public Funds Dublin, OH 94 93 187
As a result of the proposal evaluation and interview process, PFMAM is recommended based on their ability to provide professional guidance, qualified staff, experience investing local government funds, and their ability to provide a technology platform with dedicated, knowledgeable resources. PFMAM demonstrated how their team would support the City’s efforts to enhance efficiency and streamline processes. PFMAM has provided investment management services for more than 45 years, serving more than 180 public sector clients in California.
Based on the City’s average monthly portfolio, the costs of investment management and advisory services are estimated not to exceed $275,000 annually and will be offset by investment returns.
FISCAL IMPACT
The cost of investment management and advisory services is not to exceed $275,000 annually and will be offset by investment returns.
ATTACHMENTS
Request for Proposal - Investment Management and Advisory Services (available in City Clerk's Reading File)