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File Number: 20-107 <br />·Full-time management of the City’s investment portfolio; <br />·Development and implementation of investment strategies that enhance the City’s portfolio <br />performance within the parameters of the City's Investment Policy and California State law; <br />·Assist City staff in reviewing and updating, at least annually, the City's Investment Policy to <br />ensure all regulatory updates are included, and the City’s evolving priorities are reflected in <br />the portfolio; <br />·Monthly consultation with City staff regarding the City’s cash flow needs, investment <br />opportunities and market conditions; <br />·Trade execution, trade confirmation and trade settlement with City’s safekeeping bank; <br />·Monitoring of creditworthiness of investments; <br />·Monthly and quarterly reporting and analysis of investment holdings and performance; and <br />·Adherence to the City’s over-arching investment philosophy of Safety, Liquidity and Yield. <br />Over the years, the amounts invested in the City’s portfolio ranged from a low of $27.8 million in <br />Fiscal Year 2010, to a high of $110.6 million as of February 29, 2020. <br />Chandler’s current contract runs through June 30, 2020. They are paid based on the value of the <br />investment portfolio. The first $15 million of assets under management costs the City 0.125% of <br />1%. Assets in excess of $15 million costs the City 0.09% of 1%. The average annual amount <br />paid to Chandler for services provided over the past three years has been $65,000. <br />Chandler has provided excellent service to the City and consistently protects its investments. <br />Previous Actions <br />·October 3, 2016 Resolution 2016-124 approving the Consulting Services Agreement with <br />Chandler Asset Management, Inc. for investment management of the City of San <br />Leandro’s funds <br />·September 17, 2018 Resolution 2018-110 approving Amendment No. 1 of the Consulting <br />Services Agreement with Chandler Asset Management, Inc. for investment management <br />of the City of San Leandro’s funds <br />Fiscal Impact <br />The investment program costs have ranged from $30,000 to $75,000 depending on the total <br />investment amount. The average annual cost for the past three years has been $65,000. As a <br />result of the size of the portfolio, the contract with Chandler requires an additional $40,000 <br />through the end of the current Fiscal Year (2020). It is expected that the contract will cost a total of <br />$115,000 for Fiscal Year 2020. <br />Budget Authority <br />The budget for Fiscal Year 2020 is $75,000. Staff recommends City Council approve <br />appropriation of funds from the General Fund fund balance of $40,000 for Fiscal Year 2019-20 <br />and $40,000 for Fiscal Year 2020-21. <br />Page 2 City of San Leandro Printed on 4/1/2020 <br />89