Memorandum
Date: June 22, 2021
To: The Honorable Bruno Sabatier, Chair, Lake County Board of Supervisors
From: Carol J. Huchingson, County Administrative Officer
Subject: Approve of Agreement for Investment Advisory and Management Services
Executive Summary: (include fiscal and staffing impact narrative):
On October 28, 2020, per your Board’s direction, a request for proposals (RFP) was issued for Investment Advisory and Management Services. Proposals were received from three different firms, and ultimately Chandler Asset Management Inc. (Chandler) was selected with the highest score after the review process was completed.
Chandler will assist the Treasurer - Tax Collector by providing a variety of services, including advisory functions and the production of comprehensive reporting on the County’s investments. As part of the process, Chandler will review the County’s investment policy and help create an investment portfolio that most effectively serves the County’s needs.
The agreement would begin on July 1, 2021, and the compensation is based on a variable percentage depending on the balance of the County’s portfolio. A rough estimate of annual cost, based off past balances, would be approximately $116,800. This would represent an increased cost for the County of approximately $95,200, however, the increase in costs should be offset by the ability to safely maximize the County’s return on investments. Furthermore, the County will benefit from additional services provided by Chandler, including production of investment reporting that is in compliance with applicable laws and regulations.
A copy of the proposed agreement is attached for your Board’s consideration.
If not budgeted, fill in the blanks below only:
Estimated Cost: ________ Amount Budgeted: ________ Additional Requested: ________ Future Annual Cost: ________
Consistency with Vision 2028 and/or Fiscal Crisis Management Plan (check all that apply): ☐ Not applicable
☐ Well-being of Residents ☐ Public Safety ☐ Infrastructure ☐ Technology Upgrades
☐ Economic Development ☐ Disaster Recovery ☐ County Workforce ☒ Revenue Generation
☐ Community Collaboration ☐ Business Process Efficiency ☐ Clear Lake ☐ Cost Savings
If request for exemption from competitive bid in accordance with County Code Chapter 2 Sec. 2-38, fill in blanks below:
Which exemption is being requested?
How long has Agreement been in place?
When was purchase last rebid?
Reason for request to waive bid?
Recommended Action: Approve of Agreement for Investment Advisory and Management Services