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CC - Approval of a Professional Services Agreement with Insight Investment for Investment Advisory and Portfolio Management Services for a Five-Year Term (Ending on November 30, 2022) with an Annual Fee of 0.050% of All Assets.
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Meeting Date: November 13, 2017
Contact Person/Dept: Jeff Muir/Finance
Phone Number: 310-253-5865
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: []
Commission Action Required: Yes [] No [X] Date:
Public Notification: (E-Mail) Meetings and Agendas - City Council (11/09/17)
Department Approval: Jeff Muir, Chief Financial Officer (11/07/17)
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RECOMMENDATION
Staff recommends the City Council approve a professional services agreement with Insight Investment to provide investment advisory and portfolio management services for a five-year term (Ending on November 30, 2022), for an annual fee of 0.050% of all assets.
BACKGROUND
Pursuant to the authority granted the City Manager by the City Charter, the City Manager has appointed the Chief Financial Officer as City Treasurer. Therefore, the Chief Financial Officer is responsible for the management of the cash and investment portfolio for the City. The investment portfolio for the City was approximately $128 million at the end of Fiscal Year 2016/2017. While the City has a significant amount of cash and investments at any one time, the majority of this is reserved for particular purposes or projects. Cash to cover short-term operations is kept highly liquid, while the remainder can be invested with a longer-term approach that results in higher interest earnings.
The Finance Department released a Request for Proposals on August 24, 2017 with responses due on October 05, 2017. Thirteen firms submitted bids. The firms that responded, in alphabetical order, were:
1. Aequitas Wealth Managem...
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