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Finance and Management Services <br />www.santa-ana.org/finance <br />Item # 22 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br />Staff Report <br />May 7, 2024 <br />TOPIC: Investment Manager and Portfolio Services <br />AGENDA TITLE <br />Approve an Agreement with Meeder Public Funds, Inc. for Investment Manager and <br />Portfolio Services <br />RECOMMENDED ACTION <br />Authorize the City Manager to execute an agreement with Meeder Public Funds, Inc. to <br />provide Investment Management and Portfolio Services in an annual aggregate amount <br />not -to -exceed $150,000, for a total aggregate amount not -to -exceed $750,000 for a <br />three-year term beginning May 8, 2024 and expiring April 31, 2027, with provisions for <br />two, one-year extensions (Agreement No. A-2024-XXX). <br />GOVERNMENT CODE §84308 APPLIES: Yes <br />DISCUSSION <br />The Finance and Management Services Agency currently manages the City's <br />investment portfolio of $450 million, as of February 29, 2024. The investment portfolio is <br />managed to ensure that all investments are made under the terms and conditions of <br />California Government Code Section 53600 and that all investments are selected in the <br />order of safety, liquidity, and return on investments. Although the Finance department is <br />qualified to manage the City's investment portfolio, using an independent fiduciary firm <br />for investment management services is recommended and would complement the <br />Finance department's ability to meet investment objectives while freeing staff time for <br />other needs in the department. With these investment services, the City's investment <br />portfolio would transition to being actively managed by an investment advisory firm; <br />however, City staff will continue to maintain the discretion to approve all recommended <br />investment transactions and management of cash flow needs. <br />Four investment advisory firms submitted proposals in response to the Request for <br />Proposal (RFP) No. 23-162: Chandler Asset Management, Inc., Garcia Hamilton & <br />Associates, L.P., Insight North America LLC, and Meeder Public Funds, Inc. The <br />selection committee with experience in the related services evaluated proposals. <br />