Title
RESOLUTION NO. 2014-105 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT WITH PFM ASSET MANAGEMENT LLC TO PROVIDE INVESTMENT MANAGEMENT SERVICES AND AUTHORIZING THE CITY MANAGER TO EXERCISE TWO ONE-YEAR OPTIONS TO EXTEND THE AGREEMENT
Body
RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
Body
SUMMARY
The Finance Department currently manages the City's investment portfolio of approximately $120 million with Finance staff. A Request for Proposal for Investment Management Services was issued on March 25, 2014 with proposals due on April 21, 2014. The Selection committee interviewed three of the four proposing firms and recommends that PFM Asset Management LLC be awarded the contract. The contract is for a three-year period with two one-year options for a maximum contract period of 5 years.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that approval of an agreement for investment management services is not a "Project" as defined under Section 15378 (b)(4) of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
BOARD/COMMISSION RECOMMENDATION
Not applicable
DISCUSSION
Background
Role of the Investment Official
Under California law, the governing body of a local agency has primary responsibility for investment of public funds (California Government Code Section 53600.3). The authority of the legislative body to invest or reinvest funds of a local agency may be delegated for a one-year period by the legislative body to the treasurer of the local agency, who assumes full responsibility until the delegation is revoked or expires; such a delegation may be renewed on an annual basis. It is common practice for the legislative body to del...
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