TITLE
The Mayor and City Council shall discuss and possibly take action on approving a contract with PFM Asset Management, L.L.C. (PFM) for investment management services pursuant to Section 3-223, “Cooperative Purchasing” of the City Code. Consistent with the current Local Government Investment Pool (LGIP) agreement, if approved, PFM would be compensated on a percentage basis scaled to the size of the portfolio, and these fees would be paid through a custodial account directly to PFM. Therefore, there is no budgetary impact of this professional services agreement. Discussion and Action.
AGENDA ITEM DESCRIPTION
The City seeks to maximize investment earnings on City funds that are not otherwise needed to be expended immediately. Currently, the City has an investment policy that allows the Finance and Administrative Services Director to either manage the investment program internally or delegate management to an external provider.
This request is based on Section 3-223 “Cooperative Purchasing”. On January 26, 2012, the City of Chandler, AZ approved resolution No. 4568 which authorized the mayor to execute a contract with PFM Asset Management, L.L.C. (PFM) for investment management services. The agreement with the City of Chandler, AZ may be used by other municipalities under the City of Maricopa’s “Cooperative Purchasing” section of the City Code.
If approved, the agreement between the City and PFM effectively gives PFM the ability to actively monitor investment opportunities and invest/reinvest assets on the City’s behalf.
PFM specializes in investment of public funds and has multiple Arizona clients including the following government agencies:
Arizona State University University of Arizona
City of Flagstaff City of Scottsdale
City of Chandler City of Mesa
City of Tempe City of Surprise
City of Goodyear Town of Gilbert
Town of Oro Valley Town of Fountain Hills
City of Tucson
For the City of Maricopa, the primary investment objectives are 1...
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