Loading...
HomeMy WebLinkAbout2020 CON Chandler Asset Management - Investment Management and Advisory 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 21 st day of January, 2020, by and between the CITY OF NATIONAL CITY, a municipal corporation ("CITY"), and CHANDLER ASSET MANAGEMENT, INC., a California corporation (the "CONSULTANT"). RECITALS WHEREAS, the CITY and the CONSULTANT entered into an Agreement on November 15, 2016, ("the Agreement") wherein the CONSULTANT agreed to provide investment management and investment advisory services for the City for a term of three years with two additional one-year options; and WHEREAS, the parties desire to amend the Agreement to extend the term of the Agreement for one year to November 15, 2020. AGREEMENT NOW, THEREFORE, the CITY and CONSULTANT parties agree as follows: This Amendment extends the term of the Agreement for the time period November 16, 2019 through November 15, 2020; and The parties agree that each and every term and provision of the agreement dated November 15, 2016 not specifically amended shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement on the date and year first above written. [Signature Page to Follow] CITY OF NATIONA By: 4 / /% Aleja dr. S elo-Solis, Mayor APPROVED AS TO FORM: Attorney CHANDLER ASSET MANAGEMENT, INC. By: By: r� (Na e) al) MlccA vt Ce(s. II (Print) 0-60 CEO (Title) I•IQc.1eTJv o0 (Print) 600 , Cc o (Title) Exhibit "A" CHANDLER ASSET MANAGEMENT, INC. RATES The CITY shall compensate the CONSULTANT an amount calculated on the average market value of the CITY' S assets under managment by the CONSULTANT, including accrued interest, in accordance with the following schedule: Assets under Management Annual Asset Management Fee First $10 million 0.10 of 1% (10 basis points) Next $30 million 0.08 of 1% (8 basis points) Assets in excess of $40 million 0.06 of 1% (6 basis points) The fees expressed above do not include custody fees the CITY may incur for third party custodial services. Fees shall be prorated to the effective date of termination on the basis of actual days elapsed, and any unearned portion of prepaid fees shall be refunded. The CITY is not required to pay any start-up or closing fees; there are not penalty fees. Fees shall be charged monthly in arrears and debited directly for the CITY'S third party custody account. RESOLUTION NO. 2020 - 06 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE THE FIRST AMENDMENT TO THE AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND CHANDLER ASSET MANAGEMENT, INC. FOR INVESTMENT MANAGEMENT AND INVESTMENT ADVISORY SERVICES, EXTENDING THE AGREEMENT TO NOVEMBER 15, 2020 WHEREAS, the City desired to employ a consultant investment management and investment advisory services for the City; and WHEREAS, the City determined that Chandler Asset Management, Inc., is an investment advisor registered with the Securities and Exchange Commission (SEC) under the Investment Advisers Act of 1940, and is qualified by experience and ability to perform the services desired by the City; and WHEREAS, on November 15, 2016, the City entered into an Agreement with Chandler Asset Management, Inc. to perform such services for a period of November 16, 2016 through November 15, 2019 with an option to extend for two additional one-year terms; and WHEREAS, staff seeks approval to execute the first one (1) year amendment to extend the Agreement for a one year term ending November 15, 2020. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute the first one (1) year amendment to extend the Agreement with Chandler Asset Management, Inc. for a one year term ending November 15, 2020 for investment management and investment advisory services for the City. Said first amendment to the Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 21st day of January, 20 Alejandra Sotelo-Solis, Mayor ATTEST: Michael R alla, City Clerk APPROVED AS TO FORM: orris ones C. A • rney Passed and adopted by the Council of the City of National City, California, on January 21, 2020 by the following vote, to -wit: Ayes: Councilmembers Cano, Morrison, Quintero, Rios, Sotelo-Solis. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: ALEJANDRA SOTELO-SOLIS Mayor of the City of National City, California MICHAEL R. DALLA 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. 2020-6 of the City of National City, California, passed and adopted by the Council of said City on January 21, 2020. City Clerk of the City of National City, California By: CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 21, 2020 AGENDA ITEM NO.: 14 ITEM TITLE: Resolution of the City Council of the City of National City authorizing the Mayor to execute the First Amendment to the Agreement by and between the City of National City and Chandler Asset Management, Inc. for investment management and investment advisory services, extending the Agreement to November 15, 2020. PREPARED BY: Mark Roberts, Director of Finance DEPARTMENT: Finance� i'i/�t PHONE: 619-336-4330 APPROVED BY: L,� EXPLANATION: The City of National City entered into an agreement with Chandler Asset Management, Inc. on November 15, 2016 for investment management and investment advisory services for the City for the period of November 16, 2016 through November 15, 2019 with an option for the City to extend the agreement under the same terms and conditions for up to two (2) additional years beyond the initial contract expiration date. Staff seeks approval to exercise the first one (1) year option. This Amendment would extend the Agreement for a one-year term ending November 15, 2020. FINANCIAL STATEMENT: APPROVED: `-/VeR- /ea-f-a-t- FINANCE APPROVED: MIS Based on the balance of the investment portfolio managed by Chandler Asset Management, Inc. as of December 31, 2019, the estimated annual cost is $27,000. 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 First Amendment to the Agreement by and between the City of National City and Chandler Asset Management, Inc. for investment management and investment advisory services, extending the Agreement to November 15, 2020. BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: 1. Chandler Asset Management, Inc. agreement amendment 2. Resolution � - `-no• ?Cary - 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 21 st day of January, 2020, by and between the CITY OF NATIONAL CITY, a municipal corporation ("CITY"), and CHANDLER ASSET MANAGEMENT, INC., a California corporation (the "CONSULTANT"). RECITALS WHEREAS, the CITY and the CONSULTANT entered into an Agreement on November 15, 2016, ("the Agreement") wherein the CONSULTANT agreed to provide investment management and investment advisory services for the City for a term of three years with two additional one-year options; and WHEREAS, the parties desire to amend the Agreement to extend the term of the Agreement for one year to November 15, 2020. AGREEMENT NOW, THEREFORE, the CITY and CONSULTANT parties agree as follows: This Amendment extends the term of the Agreement for the time period November 16, 2019 through November 15, 2020; and The parties agree that each and every term and provision of the agreement dated November 15, 2016 not specifically amended shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement on the date and year first above written. [Signature Page to Follow] CITY OF NATIONAL CITY CHANDLER ASSET MANAGEMENT, INC. By: By: Alejandra Sotelo-Solis, Mayor (Name) (Print) APPROVED AS TO FORM: (Title) Angil Morris -Jones By: City Attorney (Name) (Print) (Title) Exhibit "A" CHANDLER ASSET MANAGEMENT, INC. RATES The CITY shall compensate the CONSULTANT an amount calculated on the average market value of the CITY'S assets under managment by the CONSULTANT, including accrued interest, in accordance with the following schedule: Assets under Management Annual Asset Management Fee First $10 million 0.10 of 1% (10 basis points) Next $30 million 0.08 of 1% (8 basis points) Assets in excess of $40 million 0.06 of 1% (6 basis points) The fees expressed above do not include custody fees the CITY may incur for third party custodial services. Fees shall be prorated to the effective date of termination on the basis of actual days elapsed, and any unearned portion of prepaid fees shall be refunded. The CITY is not required to pay any start-up or closing fees; there are not penalty fees. Fees shall be charged monthly in arrears and debited directly for the CITY'S third party custody account. RESOLUTION NO. 2020 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE THE FIRST AMENDMENT TO THE AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND CHANDLER ASSET MANAGEMENT, INC. FOR INVESTMENT MANAGEMENT AND INVESTMENT ADVISORY SERVICES, EXTENDING THE AGREEMENT TO NOVEMBER 15, 2020 WHEREAS, the City desired to employ a consultant investment management and investment advisory services for the City; and WHEREAS, the City determined that Chandler Asset Management, Inc., is an investment advisor registered with the Securities and Exchange Commission (SEC) under the Investment Advisers Act of 1940, and is qualified by experience and ability to perform the services desired by the City; and WHEREAS, on November 15, 2016, the City entered into an Agreement with Chandler Asset Management, Inc. to perform such services for a period of November 16, 2016 through November 15, 2019 with an option to extend for two additional one-year terms; and WHEREAS, staff seeks approval to execute the first one (1) year amendment to extend the Agreement for a one year term ending November 15, 2020. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute the first one (1) year amendment to extend the Agreement with Chandler Asset Management, Inc. for a one year term ending November 15, 2020 for investment management and investment advisory services for the City. Said first amendment to the Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 21st day of January, 2020 Alejandra Sotelo-Solis, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney CITY OF NATIONAL CITY Office of the City Clerk 1243 National City Blvd., National City, California 91950-4397 619-336-4228 Michael R. Dalla, CMC - City Clerk CHANDLER ASSET MANAGEMENT Investment Management and Advisory Services Amendment #1 Karim Galeana (Finance) forwarded a duplicate original Agreement to Chandler Asset Management.