Title
Consider a resolution authorizing the Mayor to execute a Professional Consulting Services Agreement with Valley View Consulting, L.L.C. for investment advisory services.
Body
The City has been using outside investment advisor services since 2013. The City’s investment program and technical expertise has been greatly enhanced by the use of investment advisory services. The investment advisor has brought additional experience in the monitoring and placement of investments and more diversification of the portfolio while maintaining safety and liquidity of the portfolio as required by the City’s Investment Policy and the Public Funds Invest Act (PFIA), the state law governing local government investments.
The City selected Valley View Consulting L.L.C. through a full request for proposal process in 2015. Staff are very satisfied with the services provided and their responsiveness to our needs. Staff recommends continuing the City's relationship with Valley View. This new Agreement was established through a professional services process as prescribed in Texas Local Government Code 252.022; therefore a formal solicitation process is not required. This is a two-year agreement with two (2), two-year renewals. Under the Public Funds Investment Act, contract terms are limited to two years and will require Council approval for each extension.
The City’s cash and investment portfolio currently averages $385 million, including bond proceeds. Valley View will work as an extension of City staff to manage the daily and long-term needs of that portfolio; provide required reporting; evaluate best practices; make recommended updates to the current investment policy; and assist staff in assessing programs and processes including evaluating proposals for the City’s depository banking services agreement when it comes due for renewal in FY 2021/22.
This contract is for $75,000 annually for up to six years. There has been no price increase since the initial agreement with Valley View began in September 2015.
Cost: $450,000
Source of Funds: General Fund