SUBJECT
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Authorizing the City Manager to approve a professional services agreement with Valley View Consulting L.L.C. for Investment Advisor Services for a period of two years to remain in effect until March 31, 2026; with the option for the City to extend the agreement an additional one and two-year terms. The maximum fiscal year accumulated fee is $75,000.00 per year. The fee will be allocated based on interest earnings to the respective bond issues and department funds.
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PREVIOUS COUNCIL ACTION
City Council awarded a contract to Valley View Consulting, LLC. on September 16, 2013.
BACKGROUND
The City's Investment Portfolio as of January 31, 2024 ended with a $1.03 billion balance. The portfolio consists of Local Government Investment Pools, Money Market Accounts, Certificate of Deposits, Federal Agency and Treasury Securities. In order for the City to optimize its investment income some of the duties Valley View Consulting will perform are the following:
-Suggest appropriate investment strategies to achieve the City's Investment objectives;
-Complete analysis of investment types;
-Optimize bond proceed investments;
-Thorough communication, reporting, and training;
-Investment Policy and procedure review and modification, and
-Long range portfolio strategy development.
The fee schedule is on a sliding scale ranging from .03% to .01% of the investment portfolio. Said fee shall be prorated and due and payable at the end of each investment quarter with a maximum fiscal year accumulated fee of $75,000.00 per year. Estimated annual cost of services based on a $1.03B investment portfolio is $655,000.00; however, as per the agreement the cost for services are capped at $75,000.00 per year.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Recommends approval of this agreement.
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Fiscal Impact
Fiscal Year: 2024
Budgeted Y/N?: Y
Source of Funds: Bonds and Department Funds
Account #: Various
Change Order: Excee...
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