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Home My WebLink About2014 CON Chandler Asset Management - Investment Management Services - Amendment #1FIRST AMENDMENT TO THE AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND CHANDLER ASSET MANAGEMENT, INC. THIS FIRST AMENDMENT TO THE AGREEMENT, is entered into this 18th day of March, 2014, by and between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"), and Chandler Asset Management, Inc., a California Corporation (the "CONSULTANT"). RECITALS WHEREAS, the CITY and CONSULTANT entered into an Agreement on November 15, 2011, ("the Agreement") wherein the CONSULTANT agreed to provide investment management and advisory services for the City. WHEREAS, the Agreement expired on November 15, 2013. WHEREAS, the City desires to reinstate and extend the Agreement for an additional year to November 15, 2014. AGREEMENT NOW THEREFORE, the CITY and CONSULTANT agree as follows: 1. The Agreement is reinstated as of November 15, 2013; 2. The Agreement is extended for a one-year period from November 16, 2013 through November 15, 2014; and 3. The parties agree that each and every term and provision of the Agreement dated November 15, 2011 not specifically amended shall remain in full force and effect. IN WITNESS THEREOF, the parties hereto have executed this First Amendment to the Agreement on the date and year first above written. CITY OF NATIONAL CITY on Morrison, Mayor ROVED AS TO FORM: a G. Sil City Attorney CHANDLER ASSET MANAGEME T, INC. (Corporation —signatures owo corporate officers requ ed) By: (Na e) /, (Print) (; i` 0 g l 101. (Title) By: 1.4 G.�% J%%� i� (Name) /vigde Z rer0 (Print) 6 C.i'/CU (Title) RESOLUTION NO. 2014 — 36 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 WHEREAS, on November 15, 2011, the City Council adopted Resolution No. 2011-244, entering into a two year Agreement with Chandler Asset Management, Inc., for investment management and advisory services to the City; and WHEREAS, the City desires to reinstate and extend the Agreement, which expired on November 14, 2013, for an additional year to November 15, 2014. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute a First Amendment to the Agreement with Chandler Asset Management, Inc., to extend the term of the Agreement for one additional year, expiring on November 15, 2014. Said First Amendment is on file in the office of the City Clerk. PASSED and ADOPTED this 18th day of March, 24. on Morrison, Mayor ATTEST: A aVi Mike Della, City C erk PROVED AS TO FORM: audia t'ua Silva City Attor Passed and adopted by the Council of the City of National City, California, on March 18, 2014 by the following vote, to -wit: Ayes: Councilmembers Cano, Morrison, Natividad, Rios, Sotelo-Solis. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California /1 City Clerk of the City of National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2014-36 of the City of National City, California, passed and adopted by the Council of said City on March 18, 2014. City Clerk of the City of National City, California By: Deputy CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: March 18, 2014 AGENDA ITEM NO. 18 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 Prendell 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 statT 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. DEPARTMENT: Finance, APPROVED BY: (114 . //�ccz,G� ._ The Investment Review Committee will meet at least annually to discuss future agreements and amendments, as well as other pertinent investment topics. FINANCIAL STATEMENT: APPROVED: Finance ACCOUNT NO. APPROVED: 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 4TTACH M ENTS: 1. First Amendment to the agreement between the City and Chandler Asset Management, Inc. 2. Resolution FIRST AMENDMENT TO THE AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND CHANDLER ASSET MANAGEMENT, INC. THIS FIRST AMENDMENT TO THE AGREEMENT, is entered into this 18th day of March, 2014, by and between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"), and Chandler Asset Management, Inc., a California Corporation (the "CONSULTANT"). RECITALS WHEREAS, the CITY and CONSULTANT entered into an Agreement on November 15, 2011, ("the Agreement") wherein the CONSULTANT agreed to provide investment management and advisory services for the City. WHEREAS, the Agreement expired on November 15, 2013. WHEREAS, the City desires to reinstate and extend the Agreement for an additional year to November 15, 2014. AGREEMENT NOW THEREFORE, the CITY and CONSULTANT agree as follows: 1. The Agreement is reinstated as of November 15, 2013; 2. The Agreement is extended for a one-year period from November 16, 2013 through November 15, 2014; and 3. The parties agree that each and every term and provision of the Agreement dated November 15, 2011 not specifically amended shall remain in full force and effect. IN WITNESS THEREOF, the parties hereto have executed this First Amendment to the Agreement on the date and year first above written. CITY OF NATIONAL CITY By: Ron Morrison, Mayor APPROVED AS TO FORM: Claudia G. Silva City Attorney CHANDLER ASSET MANAGEME (Corporation —signatures of wo corporate officers requ/ By: (Na/iiie) it;PI2:1 /If h. T, INC. ed) `�S E LL (Print) (Title) By: 1,4 (Name) nJi&/e. l�toc, (Print) (Title) J 6z/cup RESOLUTION NO. 2014 — 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 WHEREAS, on November 15, 2011, the City Council adopted Resolution No. 2011-244, entering into a two year Agreement with Chandler Asset Management, Inc., for investment management and advisory services to the City; and WHEREAS, the City desires to reinstate and extend the Agreement, which expired on November 14, 2013, for an additional year to November 15, 2014. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute a First Amendment to the Agreement with Chandler Asset Management, Inc., to extend the term of the Agreement for one additional year, expiring on November 15, 2014. Said First Amendment is on file in the office of the City Clerk. PASSED and ADOPTED this 18th day of March, 2014. Ron Morrison, Mayor ATTEST: Mike Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney CITY OF NATIONAL CITY Office of the City Clerk 1243 National City Blvd., National City, California 91950 619-336-4228 phone / 619-336-4229 fax Michael R. Dalla, CMC - City Clerk March 24, 2014 Ms. Nicole Dragoo Chandler Asset Management, Inc. 6225 Lusk Blvd. San Diego, CA 92121 Dear Ms. Dragoo, On March 18th, 2014, Resolution No. 2014-36 Council of the City of National City, authorizing Agreement with Chandler Asset Management. We are enclosing for your records a certified copy executed original Amendment. Michael R. Dalla, CMC City Clerk Enclosures cc: Finance Dept. was passed and adopted by the City execution of Amendment #1 to an of the above Resolution and a fully