DATE: November 19, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: AMENDMENT 1 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 1 to the Professional Services Agreement (PSA) with Chandler Asset Management, extending the term of the agreement for one year through December 7, 2026, for $210,000, for a total of $750,000 for all four years, under the total-asset based fee model; 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.
With this extension, Chandler would continue to 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. The company will ensure that the City's investment policy complies with California Government Code, encompasses the latest industry best practices, and meets the City's objectives for ensuring safety and liquidity while optimizing investment return. Chandler will also work with City staff to analyze cash requirements, to optimize the allocation between funds needed for liquidity and funds that can be invested in longer-term investment strategies designed to optimize return. They will serve as a general resource with a proactive, local investment team to guide the City's investment program into the future.
Chandler's key contacts to be assigned to the City have decades of public sector investment experience and are active in organizations relevant to public fund investment best practices, including the Government Finance Officers Association (GFOA), the California ...
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