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File Number: 21-357 <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 $112.2 million in Fiscal Year 2020. <br />Chandler is paid based on the value of the investment portfolio. Under the current contract, the <br />first $15 million of assets under management costs the City 0.125% (12.5 basis points). Assets <br />in excess of $15 million costs the City 0.09% (9.0 basis points). The investment services fee for <br />the current fiscal year is estimated at about $115,000. <br /> <br />Under the new contract, the first $25 million of assets under management will cost the City 0.10% <br />(10.0 basis points). The next $25 million will cost the City 0.09% (9.0 basis points). Assets in <br />excess of $50 million will cost the City 0.08% (8.0 basis points). Under the new contract terms, <br />the City is expected to save approximately $8,300 on an annual basis. <br />Chandler has provided excellent service to the City and consistently protects the investments. <br />Previous Actions <br />·October 3, 2016 Resolution No. 2016-124 approved the Consulting Services Agreement <br />with Chandler Asset Management, Inc. for investment management of the City of San <br />Leandro’s funds <br />·September 17, 2018 Resolution No. 2018-110 approved Amendment No. 1 of the <br />Consulting Services Agreement with Chandler Asset Management, Inc. for investment <br />management of the City of San Leandro’s funds <br />·April 6, 2020 Resolution No. 2020-032 approved Amendment No. 2 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 City’s investment portfolio is projected to increase in the near term due to the expected <br />distributions of fiscal recovery funds from the U.S. Treasury. The City is expected to receive a <br />total of $18.6 million in the current fiscal year and in the next fiscal year. Chandler’s current <br />contract runs through June 30, 2021. The three-year contract will be effective July 1, 2021 and <br />end on June 30, 2024, and the contract amount is $360,000. <br />Budget Authority <br />The Fiscal Year 2021-2023 proposed budget includes sufficient funds in account <br />010-12-051-5120 to cover the investment services cost. <br />ATTACHMENT <br />Attachment to Related Resolution <br />·Consulting Services Agreement between the City of San Leandro and Chandler Asset <br />Management <br />PREPARED BY: Susan Hsieh, Finance Director <br />Page 2 City of San Leandro Printed on 6/4/2021 <br />118