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CC - CONSENT ITEM: Approval of an Amendment to the Existing Professional Services Agreement with Insight Investment for Investment Advisory and Portfolio Management Services to Extend the Term to March 31, 2024.
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Meeting Date: November 13, 2023
Contact Person/Dept: Lisa Soghor/Finance
Phone Number: 310-253-5865
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments: [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (11/07/2023)
Department Approval: Lisa Soghor, Chief Financial Officer (11/07/2023)
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RECOMMENDATION
Staff recommends the City Council approve an amendment to an existing Professional Services Agreement with Insight Investment to provide investment advisory and portfolio management services through March 31, 2024.
BACKGROUND
Insight Investment has been the City’s portfolio manager since 2011 and provides expertise in analyzing and researching investments. As part of these services, Insight Investments provides regular investment reporting. The quarterly reports they produce are published on the City’s website. Staff provides oversight of the investment function. The City’s investment portfolio was approximately $150 million as of September 30, 2023.
A Request for Proposals (RFP) for these services was issued in 2017, and Insight Investment was selected from the applicant pool. In March 2023, Council approved Amendment No. 1 to the agreement to extend the term of the agreement to December 31, 2023 to allow staff time to conduct a new RFP process in accordance with the City’s purchasing requirements.
DISCUSSION
Staff has prepared and published a RFP for Investment Advisory and Portfolio Management. The RFP was published on November 2, 2023. Proposals are due December 7, 2023. Currently the agreement is set to expire December 31, 2023. Additional time is needed to review the proposals received, interview firms, develop a recommendation for Council and transition advisors if necessary.
The proposed amendment to the existing Professional Services Agreement with Insight Investments will enable Insight Investments to continue providing investment services to the City through March 31, 2024 and allow staff time to properly complete the RFP process.
FISCAL ANALYSIS
Insight Investment’s fee for providing investment advisory services is based on the average total assets under management maintained for the month and is as follows:
Average assets maintained up to and including $60 million…………….0.08%
Average assets maintained exceeding $60 million………...…………….0.06%
The above fee schedule applied to a portfolio of $150 million is estimated to be approximately $25,500 for the additional three months. The City is invoiced monthly.
The Fiscal Year 2023-2024 Adopted Budget includes sufficient funding for the cost of this proposed amendment.
ATTACHMENTS
None.
MOTIONS
That the City Council:
1. Approve an amendment to the existing professional services agreement with Insight Investment for investment advisory and portfolio management services for through March 31, 2024,
2. Authorize the City Attorney to review/prepare the necessary documents; and,
3. Authorize the City Manager to execute such documents on behalf of the City.