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HomeMy WebLinkAboutReso 2023-059 DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 RESOLUTION NO. 2023-059 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, the 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 mi I lion, 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 experienced 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 DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 Resolution No. 2023-059 Page No. 2 WHEREAS, after the selection committee reviewed each response, they selected the Chandler Asset Management, Inc as the most qualified amongst those submitting and 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. [SIGNATURES ON THE FOLLOWING PAGE] DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 Resolution No. 2023-059 Page No. 3 Presented by Approved as to form EDocuSigned by: DocuSigned by: alA, Sc�.oun, �:� 4CE6401... By: EFB949DC9B5747E... Sarah Schoen Jill D.S. Maland Director of Finance/Treasurer Lounsbery Ferguson Altona&Peak Acting City Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 23rd day of May 2023 by the following vote: AYES: Councilmembers: Cardenas, Chavez, Gonzalez,Preciado, and McCann NAYS: Councilmembers: None ABSENT: Councilmembers: None DocuSigned by: 7804EC23B90B473_. John McCann, Mayor ATTEST: DocuSigned by: c E,,30746104EAF342E... Kerry K. Bigelow, MMC, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2023-059 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 23rd day of May 2023. Executed this 23rd day of May 2023. DocuSigned by: E4,, 30746104EAF342E.. Kerry K. Bigelow, MMC, City Clerk