HomeMy WebLinkAboutCouncil Agenda StatementCITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
MEETING DATE: March 18, 2014
AGENDA ITEM NO.
ITEM TITLE:
Resolution of the City Council of the City of National City authorizing the Mayor to execute the First
Amendment to the agreement between the City of National City and Chandler Asset Management, Inc. for
investment management and advisory services.
PREPARED BY: Edward Frendell DEPARTMENT: Finance.
lj/4/fw
PHONE: 336-4332
EXPLANATION:
On November 15, 2011, the City Council of the City of National City approved a two-year agreement with Chandler
Asset Management, Inc. ("Chandler") to provide investment management and advisory services to the City. The
agreement included an option to extend the agreement with up to three (3) one-year amendments under the same terms
and conditions.
Staff recommends that the City Council authorize the execution of a First Amendment for the period November 16,
2013 through November 15, 2014. The amendment will allow staff to continue its work with Chandler in structuring
the City's investment portfolio based on current market conditions and market forecasts. It is anticipated that a joint
report from City staff and Chandler will be presented to the City Council this summer with recommendations.
As stipulated in the agreement, Chandler's fee for service is the average monthly value of the City's portfolio
multiplied by 0.06 of 1 % (6 basis points) annually, increasing to 0.10 of 1 % (10 basis points) upon an increase of the
Federal Funds rate.
APPROVED BY:
The Investment Review Committee will meet at least annually to discuss future agreements and amendments, as well as
other pertinent investment topics.
FINANCIAL STATEMENT:
ACCOUNT NO.
APPROVED:
APPROVED:
Finance
MIS
Based on the balance of the investment portfolio managed by Chandler Asset Management, Inc. as of January 30,
2014 the estimated annual cost is $12,250.
ENVIRONMENTAL REVIEW
This is not a project and, therefore, is not subject to environmental review.
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
STAFF RECOMMENDATION:
Authorize the Mayor to execute the First Amendment to the agreement with Chandler Asset Management, Inc.
BOARD / COMMISSION RECOMMENDATION:
NA
ATTACHMENTS:
1. First Amendment to the agreement between the City and Chandler Asset Management, Inc.
2. Resolution