City Council Meeting


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  E.2.c.       
Meeting Date: 03/17/2020  
Submitted For: Tracy Cormier Contact: Melissa Adams, Manager of Accounting

COUNCIL ACTION
Motion by Councilmember Marks with a second by Mayor Pro Tem Moore to approve as presented. Motion passes 7-0.
AGENDA ITEM:
Consider a Resolution approving a contract with Valley View Consulting, LLC for Investment Advisory Services
BACKGROUND:
The City began utilizing an investment advisory service to assist with the management of its investment portfolio in February of 2012.  Along with the investment committee, the investment advisors work to make sure that City funds are invested in accordance with the certified investment policy adopted by the City.
 
The investment committee, which is made up of the City Manager, Managing Director of Finance, Assistant Director, Accounting Manager and Deputy City Manager, is also charged with the task of running the daily operations of the City.  Therefore, the management of approximately $90 million of funds warrants time and expertise that are not consistently available.  The investment advisors provide the expertise and exposure to current market conditions that are necessary to make informed investment decisions. 
FINDINGS:
The City’s investment performance and management of cash flow has improved with the assistance of the Investment Advisors.  Therefore, staff feels the retention of this investment advisory firm will continue to provide effective management of the City’s investments in accordance with the adopted investment policy.
FINANCIAL IMPACT:
In consideration of these services, the annual fee would be:
 
Average Quarter End Book Value Annual Fee
First $50 million 0.050% (5 basis points)
Next $25 million 0.040% (4 basis points)
Investable Funds above $75 million 0.030% (3 basis points)
 
 
The fee is calculated based on the book value of the investments.  This fee has been budgeted for the current fiscal year.  The term of this agreement will remain in effect until March 31, 2022 with the option of the Investor to extend this agreement for an additional one or two periods. 
RECOMMENDATION:
Staff recommends Council approve a Resolution awarding a contract to Valley View Consulting, LLC for Investment Advisory Services.
MANAGEMENT REVIEW
Attachments
Exhibit A
Resolution


    

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