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Approve an Extension to the Professional Services Agreement for Investment Advisory Services with Chandler Asset Management
City staff recommends the Finance Committee to approve an extension with Chandler Asset Management to perform investment advisory services through December 31, 2023. In addition, authorize the City Manager to execute the contract amendment.
On October 7, 2014, the City Council awarded a contract to Chandler Asset Management to provide investment advisory services to manage the investment of the City's and the Successor Agency to the Brea Redevelopment Agency's ("Agency") operating, capital and reserve accounts. As of July 31, 2022, the City's current investment portfolio for the City and Agency is approximately $95.8 million in operating and capital funds (non-pension funds). This excludes short-term investments through the Local Agency Investment Fund (LAIF) as these funds are currently managed by staff.
The initial term of the agreement was for a period of five (5) years with an option to automatically renew for three (3) successive one (1) year terms. This request will amend the agreement to extend the term from October 7, 2022 through December 31, 2023. This will provide staff with the opportunity to evaluate issuing a formal Request for Proposal (RFP) for future investment advisory services as well as ensure the City is receiving the best service at the best rate.
During the term of this agreement, Chandler Asset Management has maintained an excellent relationship with past and present Investment Advisory Committee (IAC) members as well as staff. Thus, staff feels comfortable extending the term of the agreement while continuing the high level of service from Chandler Asset Management during the amended contract term.
The investment advisory fee schedule remains unchanged from the original agreement. For reference, investment advisory fees for Fiscal Year 2021-22 were approximately $75,730 and are paid from cash investments.
William Gallardo, City Manager
Prepared by: Alicia Brenner, Senior Fiscal Analyst
Concurrence: Kristin Griffith, Administrative Services Director
Agreement with Chandler Asset Management - Investment Advisory Services
Amendment No. 1 - Investment Advisory Services
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