Finance Committee Agenda and Packet 2022 09 19 - Cancelled

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LL �t�'.t'f FINANCE COMMITTEE Loll sville COMMUNICATION COLORADO • SINCE 1878 SUBJECT: EXECUTION OF CONTRACT WITH CHANDLER ASSET MANAGEMENT DATE: SEPTEMBER 19, 2022 PRESENTED BY: KEVIN WATSON, FINANCE DIRECTOR SUMMARY: On November 9, 2009, the City issued a Request for Proposals (RFP) for Investment Management Services. On February 16, 2010, the City Council awarded the bid and approved the execution of a contract with Davidson Fixed Income Management (Davidson). The contract term was for five years with an option to renew for an additional two years. The contract contained the following fee schedule, which is based on the average monthly balance of the managed portfolio. Average Monthly Balance Annualized Fee $0 to $10,000,000 0.10% $10,000,001 to $25,000,000 0.08% $25,000,001 to $40,000,000 0.07% $40,000,001 to $100,000,000 0.06% $100,000,000 to 150,000,000 0.05% Over $150,000,001 0.04% In March 2014, Scott Prickett, the City's portfolio manager at Davidson, resigned and moved to Chandler Asset Management (Chandler). In order to provide portfolio continuity and consistency, Davidson agreed to assign their current contract with the City to Chandler. This assignment was approved by the Finance Committee and executed by the City Manager on May 16, 2014. On February 3, 2015, the City Council approved an option to extend the investment management services contract with Chandler for an additional two years. On July 5, 2017, the City Council approved a new investment management services contract with Chandler for an additional three years with two one-year options to renew. The contract included the same fee schedule that was approved in the original 2010 contract. A copy of the July 2017 contract is attached to this communication. FINANCE COMMITTEE COMMUNICATION 14