REPORT TO COUNCIL
SUBJECT
Title
Award of Contract for Investment Management Services (F18-028)
Report
REPORT IN BRIEF
Approval is requested to award a three-year contract in an amount not to exceed $850,000 to Chandler Asset Management, Inc. (Chandler) to provide investment management services and authorize the City Manager to extend the contract up to two years, if pricing and service remain acceptable to the City.
EXISTING POLICY
Consistent with the provisions of Sunnyvale Municipal Code Section 2.08.040, contracts for the procurement of services are awarded pursuant to a Request for Proposals (RFP) process, unless otherwise exempt from competitive bidding. Further, City Council approval is required for contracts exceeding $100,000 in any one transaction.
ENVIRONMENTAL REVIEW
The proposed actions are exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to Section 15378(b)(4) of the CEQA Guidelines (fiscal activities that do not involve commitment to any specific project that may result in a significant impact on the environment).
BACKGROUND
City funds needed for immediate disbursement are maintained in a liquid checking account and funds that are temporarily idle or not needed for disbursement are held in the City's pooled investment portfolio. Currently, staff passively manages the investment of the City's pooled portfolio in accordance with the City's Investment Policy. The City's Deferred Compensation Plan, the City's Retirement Plan, Other Post-Employment Benefits (OPEB) Trust, and debt issuance proceeds are not invested by City staff.
The City Council first adopted a policy governing the investment of City funds on July 30, 1985. The key provisions of the City's Investment Policy are: 1) safety of principal - being the foremost objective of the investment program; 2) liquidity - retaining sufficient short-term cash or investments to meet all operating requirements; and, 3) rate of return - obtaining a reaso...
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