DATE: October 21, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: AMENDMENT 2 TO PROFESSIONAL SERVICES AGREEMENT WITH CHANDLER ASSET MANAGEMENT FOR INVESTMENT ADVISORY SERVICES
RECOMMENDATION
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Staff recommends that the City Council approve Amendment 2 to the Professional Services Agreement (PSA) with Chandler Asset Management, extending the term of the agreement for one year through December 7, 2027, for $240,000 under the total-asset based fee model; appropriate $30,000 of revenue and expenditure from the Investment Clearing Fund, and authorize the City Manager to execute the amendment.
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BACKGROUND AND ANALYSIS
In December 2022, the City Council approved a three-year PSA with Chandler Asset Management for full-time investment management of the City’s investment funds. The Agreement includes the option for two additional one-year extensions.
On November 19, 2025, the City Council approved Amendment 1 to the PSA, extending the term of the agreement through December 7, 2026.
The City’s Treasury Division is responsible for managing the investment portfolio of the City, in accordance with the City’s investment policy and existing California statutes. The investment policy has three investment objectives: (1) safety of principal, (2) liquidity needs, and (3) obtain a reasonable yield within the first two objectives. These investment objectives ensure investment of public funding in a manner that provides a reasonable investment return with maximum security while meeting daily cash flow demands of the city.
With this extension, Chandler would provide full-time investment management as a shared Fiduciary of the City’s investment funds, to ensure liquidity for cash flow needs and enhance the potential for increased earnings. They will ensure that the investment policy complies with California Government Code, encompasses the latest industry best practices, and meets the City’s objectives for ensuring s...
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