|
Back to Calendar
Return
|
| |
Consent-General Government # 17.
|
| Board of Supervisors |
Financial Services |
|
|
|
| Subject |
| Approve contract with PFM Asset Management LLC for investment advisory services for 2019-22, with an option for two additional fiscal years, at an annual cost not to exceed $150,000. (General fund impact $150,000) (Rinde) |
| Recommended Action |
| Approve contract with PFM Asset Management LLC for investment advisory services for 2019-22, with an option for two additional fiscal years, at an annual cost not to exceed $150,000. |
| Strategic Plan Goal(s) |
| Operational Excellence |
| Reason for Recommended Action/Background |
Yolo County contracts with an external investment advisor to manage investment holdings in the County treasury pool and other investment portfolios. The contract with the current investment advisor to the County (PFM Asset Management LLC) is due to expire on June 30, 2019. Following County procurement policy, staff issued a request for proposals (RFP) to provide investment services and received a total of nine proposals, as described in the Competitive Bid process below.
An RFP evaluation committee was formed including members from various divisions of the Department of Financial Services. The committee scored the technical merits of each proposal and consolidated scores with the cost scoring. The top three firms were invited to do a best and final offer and revised costs were incorporated in the cost scoring to determine the best qualified firm.
As a result of the competitive bid process, PFM Asset Management was determined to be the best qualified bidder. The Department of Financial Services recommends that the Board approve the contract with PFM as reflected in Attachment A (Exhibits for this agreement are on file with Clerk of the Board). |
| Collaborations (including Board advisory groups and external partner agencies) |
| The Department of Financial services collaborated and shared the results of the selection process with the County Financial Oversight Committee. |
| Competitive Bid Process |
Request for Proposals (RFP) Service Requested: Investment Advisory Services
Evaluation Criteria Included in RFP
- Reasonableness of Costs, Experience and Qualifications, Demonstrated Competence, Qualify of Submitted Proposal, Completeness of the Submitted Proposal, Proposers Understanding of County Goals, Customer Reference, Financial & Legal Stability of Firm, and response to additional Technical Specifications
Bids Received
Proposals were scored for cost on a portfolio size under management of $300 million. The majority of the proposals charge a fee as an amount of basis points of Assets under management. Certain firms had a fixed cap for the overall cost.
| Bidder |
2019-20 |
2020-21 |
2021-22 |
Total |
| Blackrock |
$145,000 |
$145,000 |
$145,000 |
$435,000 |
| Chandler Asset Management |
$150,000 |
$150,000 |
$150,000 |
$450,000 |
| Garcia Hamilton & Associates |
$145,000 |
$145,000 |
$145,000 |
$435,000 |
| Insight Investment |
$180,000 |
$180,000 |
$180,000 |
$540,000 |
| Meeder Investment Management |
$100,000 |
$110,000 |
$130,000 |
$340,000 |
| PFM Asset Management |
$150,000 |
$150,000 |
$150,000 |
$450,000 |
| RBC Global Asset Management |
$200,000 |
$200,000 |
$200,000 |
$600,000 |
| Russell Investments |
$240,000 |
$240,000 |
$240,000 |
$720,000 |
| Time Value Investments |
$114,400 |
$114,400 |
$114,400 |
$343,200 |
|
|
| Fiscal Impact |
|
|
| Source of Funds for this Expenditure |
|
|
Explanation (Expenditure and/or Revenue) |
| Further explanation as needed: |
The General Fund initially pays for the costs associated with the Investment Advisor contract; however, eligible costs associated with the contract are then reimbursed by the Treasury Pool, Landfill, Cache Creek, Demeter, and Ceres funds based on the proportion of assets that are under advisement by the investment advisor.
This contract would start July 1, 2019 and sufficient funds for the contract are included in the Department of Financial Services budget request. |
|
|
|
|
|