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STRATEGIC OUTCOMES |
ACTION |
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Department: |
☐ Safe & Prosperous |
☒ Motion |
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Finance |
☐ Active & Appealing |
☐ Resolution |
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☒ Respected & Responsible |
☐ Ordinance - Introduction |
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Division: |
☐ Connected & Engaged |
☐ Ordinance - Adoption |
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Procurement |
☐ Unique & Creative |
☐ Public Hearing |
TITLE: t
Request for Qualifications Award: Investment Management Services
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SUMMARY RECOMMENDATION: Summary Recommendation
Award a one-year professional services contract with the option to renew for four additional one-year periods, one period at a time, contingent on appropriations and satisfactory performance with Meeder Public Funds, Dublin, Ohio and PFM Asset Management, Tempe, Arizona. (Finance-RFQ-24-253) (Douglas Allen/Robin R. Wilson)
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STRATEGIC OUTCOME:
Obtaining investment management services supports the City Council's strategic outcome of Respected and Responsible by ensuring accountability and transparency in managing public funds. Partnering with qualified firms that comply with regulations and prioritize capital preservation enhances financial stewardship, thereby building community trust. This responsible approach not only maximizes returns on investments but also demonstrates the City Council's commitment to prudent financial management for the benefit of residents.
REPORT:
The City of Yuma’s Investment Policy, adopted by the City Council, outlines that public funds will be invested to achieve maximum security of principal while prioritizing the highest yield, all while meeting the City’s daily cash flow needs. To comply with this policy, City staff conducted a solicitation to qualify vendors for investment management services. The Request for Qualifications (RFQ) was directed to identify and contract with qualified investment firms capable of providing a broad range of services in compliance with state law, governmental practices, and the City’s Investment Policy.
The RFQ process successfully resulted in the qualification of two firms: Meeder Public Funds and PFM Asset Management. These firms were selected based on their proven expertise, strong reputations, and alignment with the City’s investment objectives, including safety, liquidity, and yield optimization. Approval of this RFQ will enhance the City’s investment capabilities and ensure a high standard of accountability and transparency in managing public funds. These partnerships will not only safeguard the City’s investments but also create opportunities for improved operational efficiency and strategic portfolio management.
FISCAL REQUIREMENTS:
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CITY FUNDS: |
$ 25,000.00 |
BUDGETED: |
$ 25,000.00 |
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STATE FUNDS: |
$ 0.00 |
AVAILABLE TO TRANSFER: |
$ 0.00 |
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FEDERAL FUNDS: |
$ 0.00 |
IN CONTINGENCY: |
$ 0.00 |
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OTHER SOURCES: |
$ 0.00 |
FUNDING: ACCOUNT/FUND #/CIP |
TOTAL $25,000.00
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Proportionate share of all funds in the City’s investment pool. |
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To total; right click number & choose “Update Field” |
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FISCAL IMPACT STATEMENT:
Total program expenditures will exceed $100,000 over five years. Expenditure per investment depends on the amount invested with each managing firm.
The City’s investment programs earned $16.5 million and $11.6 million in FY 2024 and FY 2023, respectively. Retaining professional investment services is vital to continued success for the City’s investment program.
ADDITIONAL INFORMATION:
SUPPORTING DOCUMENTS NOT ATTACHED TO THE CITY COUNCIL ACTION FORM THAT ARE ON FILE IN THE OFFICE OF THE CITY CLERK:
None
IF CITY COUNCIL ACTION INCLUDES A CONTRACT, LEASE OR AGREEMENT, WHO WILL BE RESPONSIBLE FOR ROUTING THE DOCUMENT FOR SIGNATURE AFTER CITY COUNCIL APPROVAL?
☒ Department
☐ City Clerk’s Office
☐ Document to be recorded
☐ Document to be codified
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Acting City Administrator: |
Date: |
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John D. Simonton |
12/09/2024 |
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Reviewed by City Attorney: |
Date: |
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Richard W. Files |
12/09/2024 |