To: Board of Supervisors
From: Auditor-Controller Treasurer-Tax Collector
Meeting Date: June 20, 2023
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Department Contact: |
Chamise Cubbison |
Phone: |
707-234-6860 |
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Item Type: Consent Agenda |
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Time Allocated for Item: N/A |
Agenda Title:
title
Approval of Agreement with Chandler Asset Management, Inc. to Provide Investment Advisory and Asset Management Services Related to the Treasury Pool, Effective July 1, 2023, Until Terminated by Either Party
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Recommended Action/Motion:
recommendation
Approve Agreement with Chandler Asset Management, Inc. to provide investment advisory and asset management services related to the Treasury Pool, effective July 1, 2023, until terminated by either party; and authorize Chair to sign the same.
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Previous Board/Board Committee Actions:
After a Request for Proposal was performed, the Board approved an agreement with Chandler Asset Management, Inc. on April 11, 2012, which was effective until April 30, 2018.
After a Request for Proposal was performed, the Board approved an agreement with Chandler Asset Management, Inc. on June 19, 2018, which is effective until June 30, 2023.
Summary of Request:
The Treasurer-Tax Collector has worked with Chandler Asset Management, Inc. (Chandler) for over a decade, during which time, Chandler has assisted the County by providing suggested improvements the County’s Investment Policy, the generation of reports and the creation of a structure of service which is critical to ensuring compliance with the Policy. The investment services provided are uniquely tailored to the needs of Mendocino County’s Investment Pool.
Chandler is prepared to offer the County an improved fee structure with an agreement that has no specific termination date, but includes the option to terminate upon mutual agreement of both parties or 30 days’ notice from the County. The fee structure is similar to that which was agreed to with the County of Lake, which also contains the open-ended agreement with option to terminate similar to that which is proposed for Mendocino.
There is no apparent downside to the proposed agreement as the County could determine at any point in the future to issue another Request for Proposal, to request to renegotiate the current fee and/or terminate the proposed agreement. The proposed agreement fee structure will save the Treasury Pool a considerable amount of cost in fees with the present level of investments with Chandler. The fee is paid entirely through the Quarterly Interest Apportionment of the Investment Pool.
Due to the upcoming expiration of the current agreement with Chandler Asset Management, Inc., the Auditor-Controller/Treasurer-Tax Collector is requesting the Board approve the proposed agreement between the County of Mendocino and Chandler Asset Management, Inc.
Alternative Action/Motion:
Do not approve the agreement and provide direction to staff.
Does This Item Support the General Plan? N/A
Strategic Plan Priority Designation: An Effective County Government
Supervisorial District: All
vote requirement: Majority
Supplemental Information Available Online At: N/A
Fiscal Details:
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source of funding: Treasury Pool 2410-760524 |
budgeted in current f/y: N/A |
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current f/y cost: $100,000-$200,000* |
if no, please describe: |
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annual recurring cost: *Fee depends on portfolio balance |
revenue agreement: No |
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budget clarification: Treasury Pool cost not budgeted. |
Agreement/Resolution/Ordinance Approved by County Counsel: Yes
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CEO Liaison: Executive Office |
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CEO Review: Yes |
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CEO Comments:
FOR COB USE ONLY
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Executed By: Atlas Pearson, Senior Deputy Clerk |
Final Status: Approved |
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Date: June 20, 2023 |
Executed Item Type: Agreement Number: 23-099 |
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