Finance Committee Agenda and Packet 2017 05 15

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City Council Finance Committee Meeting Minutes 04/17/17 Page 2 of 6 CASH & INTESTMENTS — PRESENTATION FROM CHANDLER ASSET MANAGEMENT, INVESTMENT ADVISOR Mr. Scott Prickett presented to the Finance Committee Members an economic update reviewing several key indicators including Payroll, Consumer Price Index, Consumer Confidence, Housing Starts, and Gross Domestic Product. Mr. Prickett discussed the impact of each, the trends, and the present US Treasury Yields. Mr. Prickett and Finance Committee Members discussed future interest rate hikes by The Fed, and what impact such increases may have on City investments. Mr. Prickett stated to the Committee Chandler's commitment to staying disciplined and positioned to act. Ms. Julie Hughes of Chandler Asset Management concurred stating that it is a great time to have a short portfolio, such as the City's, and positioned to take advantage of positive moves in the market. Ms. Hughes reviewed the City's current portfolio holdings with the Finance Committee Members and stressed the positive position the City is in, and its high quality and sound investments. The Investment Report and corresponding narrative can be located in the April 17, 2017 packet of the Finance Committee meeting. PURCHASING POLICY DISCUSSION Finance Director Kevin Watson presented to the Finance Committee a review of the City's Purchasing Policy. Specifically staff is requesting clarification from the Finance Committee as to whether or not the Policy was intended to require the approval of RFP proposal documents prior to publication, or if the intent was to approve such RFP's prior to execution. Director Watson opened the topic to discussion. Public Works Director Kurt Kowar stated that the Finance Committee Communication contains a list of examples of consulting services procured through the RFP process. Director Kowar stated that the procurement of such services are a part of each departments' operational or CIP budget requests, and such budgets are reviewed and approved by City Council. Director Kowar stated that the time to review the scope of the services proposed to be contracted out should be discussed during the budget process, and not as each RFP draft is issued and funneled through City Council. City Manager Malcolm Fleming also questioned the value of City Council approving the RFP's prior to issuance. City Manager Fleming stated that any contract valued in excess of $100K is already provided to Council as well as any 3