HomeMy WebLinkAboutReso 119-2018 (18-612)City of South San Francisco
P.O. Box 711 (City Hall,
400 Grand Avenue)
South San Francisco, CA
City Council
Resolution: RES 119 -2018
File Number: 18 -612 Enactment Number: RES 119 -2018
RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE AMENDMENT NO. 1 TO THE CONSULTING
SERVICES AGREEMENT WITH CHANDLER ASSET
MANAGEMENT.
WHEREAS, Chandler Asset Management has provided professional investment advisory services to the
City of South San Francisco since January 2009; and
WHEREAS, in continuing its efforts to ensure due diligence and compliance with best practices, staff
issued a Request for Proposals (RFP) in April 2018; and
WHEREAS, the City received eight timely responses to the RFP; and
WHEREAS, an internal evaluation panel conducted a preliminary review of the RFP responses, and
selected three firms based on their experience in managing public funds with other California cities and
government agencies, fee rates, and overall firm expertise; and
WHEREAS, the finalist firms were invited to an interview on June 8, 2018 with an external evaluation
panel; and
WHEREAS, the firms were evaluated on the following criteria: 1) Experience and qualifications (45
points), 2) customer service (20 points); 3) cost (20 points), and 4) Fit; and
WHEREAS the evaluation panel rated Chandler Asset Management with a total of 276 points out of 300
possible points, which was the highest of the finalist firms; and
WHEREAS, Chandler has committed to continue providing high level customer service to the City of
South San Francisco, including quarterly investment portfolio presentations to the City Council,
educational sessions with the Budget Standing Committee, and monthly conference calls with the
Director of Finance and City Treasurer.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco
hereby approves Amendment No. 1 to the Consulting Services Agreement with Chandler Asset
Management, attached hereto as Exhibit A.
BE IT FURTHER RESOLVED that the City Council of the City of South San Francisco authorizes the
City Manager to execute Amendment No. 1 to the Consulting Services Agreement with Chandler Asset
Management, attached hereto as Exhibit A, and to take any other actions consistent with the intent of this
Resolutin.
City of South San Francisco page 1
File Number. 18 -612 Enactment Number. RES 119 -2018
E3
At a meeting of the City Council on 7/25/2018, a motion was made by Pradeep Gupta, seconded by Mark
Addiego, that this Resolution be adopted. The motion passed.
Yes: 5 Mayor Normandy, Mayor Pro Tem Matsumoto, Councilmember Garbarino,
Councilmember Gupta, and Councilmember Addiego
Attest by
'ifrista rtin lli
City of South San Francisco Page 2
FIRST AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF SOUTH
SAN FRANCISCO AND CHANDLER ASSET MANAGEMENT
THIS FIRST AMENDMENT TO THE CONSULTING SERVICES AGREEMENT is made at
South San Francisco, California, as of June 1, 2018 by and between THE CITY OF SOUTH SAN
FRANCISCO (“City”), a municipal corporation, and Chandler Asset Management
(“Contractor”), (sometimes referred together as the “Parties”) who agree as follows:
RECITALS
A. On January 8, 2009, City and Contractor entered that certain Consulting Services
Agreement (“Agreement”) whereby Contractor agreed to provide investment advisory services.
A true and correct copy of the Agreement and its exhibits is attached as Exhibit A.
B. City and Contractor now desire to amend the Agreement.
NOW, THEREFORE, for and in consideration of the promises and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, City and
Contractor hereby agree as follows:
1.All terms which are defined in the Agreement shall have the same meaning when used in this
Amendment, unless specifically provided herein to the contrary.
2.Section 1. The term of services is revised as follows: “The term of this Agreement
shall begin on the Effective Date, and shall terminate on May 31, 2025, after which the
City may extend the term of the agreement for an additional three year period,
concluding on May 31, 2028.
3.Section 2.1 of the Agreement shall be amended such that the City agrees to pay
Contractor the following fee rates, prorated for each month:
Assets under Management Annual Fee
First $50 million .08 of 1% (8 basis points)
Next $100 million .07 of 1% (7 basis points)
Assets over $150 million.05 of 1% (5 basis points)
Contractor agrees these are the City’s total costs under the Agreement unless additional
payments are authorized in accordance with the terms of the Agreement and said terms of
payment are mutually agreed to by and between the parties in writing.
All other terms, conditions and provisions in the Agreement remain in full force and effect. If
there is a conflict between the terms of this Amendment and the Agreement, the terms of the
Agreement will control unless specifically modified by this Amendment.
[SIGNATURES ON THE FOLLOWING PAGE]
EXHIBIT A
Dated:
CITY OF SOUTH SAN FRANCISCO CONTRACTOR
By: By:
City Manager [NAME]
Approved as to Form:
By:
City Attorney
EXHIBIT A