FINANCIAL ADVISORY BOARD AGENDA ITEM
ACTION REQUESTED:
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Recommend a waiver of the Naperville Procurement Code for the extension of contracts with Marquette and Associates, PFM Asset Management and Loop Capital Asset Management - TCH through December 31, 2023
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DEPARTMENT: Finance Department
SUBMITTED BY: Raymond Munch, Budget Manager
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City has maintained three separate vendor relationships related to fixed income money management since 2016.
In September 2016, the City Council awarded contracts to PFM Asset Management and Taplin, Canida & Habacht (now Loop Capital Asset Management - TCH) for investment management services. These two firms invest funds for which the City has no immediate need, i.e., reserve funds, in fixed income portfolios in compliance with state statute and the City's Investment and Cash Management Policy. The initial contract term expired in 2019 and the City Council subsequently approved three, one-year extension options included within the initial agreement. The final option year extension expires September 30, 2022.
In December 2016, the City Manager awarded a contract to Marquette Associates to monitor and report on the performance of the two external money managers. The initial contract term expired in 2018 and the City Manager subsequently approved four, one-year extension options included within the initial agreement. The final option year extension expires December 31, 2022.
DISCUSSION:
At the April 25, 2022 meeting, the Financial Advisory Board (the "Board") reviewed the first quarter investment report. As part of that conversation, the Board discussed alternative strategies that might be considered given the challenging conditions that exist across financial markets. At that time, there was agreement that the City should adhere to its long-term investment strategy and avoid any significant changes to that strategy in light of the current market uncertainty.
With the appro...
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