CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Change Order 1, to Contract 16-266, Fixed Asset Money Management Services, to PFM Asset Management LLC and BMO Asset Management Corp. (formally known as Taplin, Canida & Habacht, LLC) for an amount not to exceed $37,000 and a total award of $134,000
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
In September 2016, the City Council approved the award of RFP 16-266, to PFM Asset Management LLC (PFM) and Taplin, Canida & Habacht LLC (TCH) for a three-year term. The city manager awarded the first option year of the contract on August 7, 2019, term is from October 1, 2019 through October 1, 2020. The two firms monitor the City’s investment portfolio which includes monies pooled and invested across multiple funds.
DISCUSSION:
A change order is requested to add $36,000 to Contract 16-266 to cover the remaining invoices on the current term of the agreement.
Since approving the initial contract, the City’s portfolios with both firms have grown from a value of approximately $60 million to a current value of nearly $110 million in fixed assets. Fees for both firms are based on the value of assets managed; staff under estimated the value of the City’s assets at the time the option year was approved in October 2019.
This change order will provide the necessary funds to process the remaining bills from both firms through the end of the current term.
FISCAL IMPACT:
CIP: N/A
Asset management services are expensed to money manager fees accounts established in each fund. Payments are split among funds based on the value of assets at the time of billing. A total of $139,185 is budgeted for money manager fees in 2020. The requested change order is within budget.