HomeMy WebLinkAbout2015 CON Chandler Asset Management - Investment Management Services - Amendment #3THIRD AMENDMENT TO THE AGREEMENT
BY AND BETWEEN THE CITY OF NATIONAL CITY
AND
CHANDLER ASSET MANAGEMENT, INC.
THIS THIRD AMENDMENT TO THE AGREEMENT is entered into this 17th day of
November, 2015, 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, on November 15, 2011, the City Council adopted Resolution No. 2011-244,
authorizing the CITY to enter into an Agreement with CONSULTANT (the "Agreement")
wherein the CONSULTANT agreed to provide investment management and advisory services
for the City for a term of two years with three additional one-year options, and fees based on the
average balance of assets under CONSULTANT'S direct management at the annual rate of six
basis points (0.06 of 1%); and
WHEREAS, on March 18, 2014, the City Council adopted Resolution No. 2014-36,
approving the First Amendment to the Agreement to reinstate the Agreement and extend the term
to November 15, 2014; and
WHEREAS, on November 18, 2014, the City Council adopted Resolution No. 2014-160,
approving the Second Amendment to the Agreement to reinstate the Agreement and extend the
term to November 15, 2015; and
WHEREAS, the CITY and CONSULTANT desire to reinstate the Agreement and extend
the term for one additional year to November 15, 2016.
AGREEMENT
NOW THEREFORE, the CITY and CONSULTANT agree as follows:
1. The Agreement is reinstated as of November 17, 2015;
2. This Amendment extends the term of the Agreement for the time period
November 16, 2015 through November 15, 2016; 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 Third Amendment on the
date and year first written above.
[Signature Page to Follow]
CITY OF NATIONAL CITY
B
on Morrison
Mayor
ROVED AS TO FORM:
ud': . Silva
City A . ey
By:
CHANDLER ASSET MANAGEMENT, INC.
Corporations — signatures of two corporate offers required)
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(Print)
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(Title)
By: L•4Ay
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2015 Third Amendment 2 City of National City and
to Agreement Chandler Asset Management, Inc.
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RESOLUTION NO. 2015 — 166
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE MAYOR TO EXECUTE THE THIRD AMENDMENT
TO THE AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND
CHANDLER ASSET MANAGEMENT, INC., REINSTATING AND
EXTENDING THE AGREEMENT FOR INVESTMENT MANAGEMENT
AND ADVISORY SERVICES TO NOVEMBER 15, 2016
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 the
provision of investment management and advisory services to the City; and
WHEREAS, on March 18, 2014, the City Council adopted Resolution No. 2014-
36, approving the First Amendment to the Agreement to reinstate the Agreement and extend the
term to November 15, 2014; and
WHEREAS, on November 18, 2014, the City Council adopted Resolution No.
2014-160, approving the Second Amendment to the Agreement to reinstate the Agreement and
extend the term to November 15, 2015; and
WHEREAS, the City and Chandler Asset Management, Inc., desire to reinstate
the Agreement and extend the term for one additional year to November 15, 2016.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby reinstates the Agreement and authorizes the Mayor to execute a Third
Amendment to the Agreement with Chandler Asset Management, Inc., to extend the term of the
Agreement for one additional year, expiring on November 15, 2016. The Third Amendment is
on file in the office of the City Clerk.
PASSED and ADOPTED this 17th day of Novemb 015.
on Morrison, Mayor
ATTEST:
df6d)
Michael R. Dalla, it Clerk
lerk
PROVED A : TO FORT
Cti* . is Gacitua ilva
City Attorney
Passed and adopted by the Council of the City of National City, California, on
November 17, 2015 by the following vote, to -wit:
Ayes: Councilmembers Mendivil, Morrison, Rios, Sotelo-Solis.
Nays: None.
Absent: Councilmember Cano.
Abstain: None.
AUTHENTICATED BY:
RON MORRISON
Mayor of the City of National City, California
N J �.,
CI rk of the City f
City National City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2015-166 of the City of National City, California, passed and
adopted by the Council of said City on November 17, 2015.
City Clerk of the City of National City, California
By:
Deputy
CITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
MEETING DATE: November 17, 2015 AGENDA ITEM NO. 6
TEM TITLE:
Resolution of the City Council of the City of National City authorizing the Mayor to execute the Third
Amendment to the Agreement by and between the City of National City and Chandler Asset
Management, Inc. for investment management and advisory services, reinstating and extending the
agreement to November 15, 2016.
PREPARED BY: Mark Roberts, Director of Finance DEPARTMENT: Finance
PHONE: 619-336-4265 APPROVED BY: `W.e Xa l- -
EXPLANATION:
On November 15, 2011 the City Council of the City of National City approved an agreement with
Chandler Asset Management, Inc. for investment management and advisory services for the City for two
years with an option to extend the agreement under the same term and conditions for up to three (3)
additional years beyond the initial contract expiration date of November 15, 2013.
Staff now seeks to reinstate the agreement and exercise the third one (1) year option. This Amendment
would extend the agreement for the time period November 16, 2015 through November 15, 2016.
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.
Staff will issue a Request for Proposals and seek City Council approval of a new investment management
ind advisory services agreement prior to the expiration of the Third Amendment.
FINANCIAL STATEMENT: APPROVED: ` %ate
ACCOUNT NO.
Finance
APPROVED: MIS
Based on the balance of the investment portfolio managed by Chandler Asset Management, Inc. as of
September 30, 2015 the estimated annual cost is $13,000.
ENVIRONMENTAL REVIEW:
This is not a project and, therefore, not subject to environmental review.
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
STAFF RECOMMENDATION:
Adopt the resolution, authorizing the Mayor to execute the Third Amendment to the Agreement by and between the
City of National City and Chandler Asset Management, Inc., reinstating and extending the agreement to November
15, 2016
BOARD / COMMISSION RECOMMENDATION:
NA
ATTACHMENTS:
1. Contract Amendment
2. Resolution
R t o k, \) A N o. ra O VS G 6
THIRD AMENDMENT TO THE AGREEMENT
BY AND BETWEEN THE CITY OF NATIONAL CITY
AND
CHANDLER ASSET MANAGEMENT, INC.
THIS THIRD AMENDMENT TO THE AGREEMENT is entered into this 17th day of
November, 2015, 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, on November 15, 2011, the City Council adopted Resolution No. 2011-244,
authorizing the CITY to enter into an Agreement with CONSULTANT (the "Agreement")
wherein the CONSULTANT agreed to provide investment management and advisory services
for the City for a term of two years with three additional one-year options, and fees based on the
average balance of assets under CONSULTANT'S direct management at the annual rate of six
basis points (0.06 of 1%); and
WHEREAS, on March 18, 2014, the City Council adopted Resolution No. 2014-36,
approving the First Amendment to the Agreement to reinstate the Agreement and extend the term
to November 15, 2014; and
WHEREAS, on November 18, 2014, the City Council adopted Resolution No. 2014-160,
approving the Second Amendment to the Agreement to reinstate the Agreement and extend the
term to November 15, 2015; and
WHEREAS, the CITY and CONSULTANT desire to reinstate the Agreement and extend
the term for one additional year to November 15, 2016.
AGREEMENT
NOW THEREFORE, the CITY and CONSULTANT agree as follows:
1. The Agreement is reinstated as of November 17, 2015;
2. This Amendment extends the term of the Agreement for the time period
November 16, 2015 through November 15, 2016; 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 Third Amendment on the
date and year first written above.
[Signature Page to Follow]
CITY OF NATIONAL CITY CHANDLER ASSET MANAGEMENT, INC.
Corporations — signatures of two corporate officers required)
By:
Ron Morrison
Mayor
APPROVED AS TO FORM:
Claudia G. Silva
City Attorney
By:
(Name)
(Print)
(Title)
By:
(Name)
(Print)
(Title)
2015 Third Amendment 2 City of National City and
to Agreement Chandler Asset Management, Inc.
RESOLUTION NO. 2015 —
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE MAYOR TO EXECUTE THE THIRD AMENDMENT
TO THE AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND
CHANDLER ASSET MANAGEMENT, INC., REINSTATING AND
EXTENDING THE AGREEMENT FOR INVESTMENT MANAGEMENT
AND ADVISORY SERVICES TO NOVEMBER 15, 2016
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 the
provision of investment management and advisory services to the City; and
WHEREAS, on March 18, 2014, the City Council adopted Resolution No. 2014-
36, approving the First Amendment to the Agreement to reinstate the Agreement and extend the
term to November 15, 2014; and
WHEREAS, on November 18, 2014, the City Council adopted Resolution No.
2014-160, approving the Second Amendment to the Agreement to reinstate the Agreement and
extend the term to November 15, 2015; and
WHEREAS, the City and Chandler Asset Management, Inc., desire to reinstate
the Agreement and extend the term for one additional year to November 15, 2016.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby reinstates the Agreement and authorizes the Mayor to execute a Third
Amendment to the Agreement with Chandler Asset Management, Inc., to extend the term of the
Agreement for one additional year, expiring on November 15, 2016. The Third Amendment is
on file in the office of the City Clerk.
PASSED and ADOPTED this 17th day of November, 2015.
Ron Morrison, Mayor
ATTEST:
Michael R. 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
November 30, 2015
Ms. Nicole Dragoo
Chandler Asset Management, Inc.
6225 Lusk Blvd.
San Diego, CA 92121
Dear Ms. Dragoo,
On November 17th, 2015, Resolution No. 2015-166
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 #3 to an
of the above Resolution and a fully