City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Matthew Boring, Finance Director |
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Prepared by: |
Melissa Munoz, Assistant Finance Director |
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Date: |
October 20, 2026 |
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Subject: |
Approve a Contract with Chandler Asset Management, Inc. for Investment Management Services |
Recommendation:
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Approve a contract with Chandler Asset Management, Inc. to provide professional investment services for three years, with two one-year extensions, and authorize the City Manager to sign all necessary documents.
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Background:
The City of Manteca is responsible for managing public funds in a manner that ensures safety, liquidity, and a reasonable rate of return. The previous professional investment firm under contract with the City to perform professional investment services served in that role for over twenty years. It is best practice to switch audit firms from time to time through an RFP process.
An RFP for Professional Investing Services was issued in June 2026, and six firms submitted proposals. Proposals were evaluated based on qualifications, technical expertise, investment philosophy and performance, reporting and portfolio accounting and fee proposal. Based on this evaluation, Chandler Asset Management, Inc, was ranked most responsive and advantageous to the City.
Fiscal Impact:
Chandler Asset Management, Inc. charges fees based on the amount of money they directly manage. The proposed fees are 0.06 of 1% (6 basis points) for the first $150 million managed, 0.04 of 1% (4 basis points) for the next $150 million managed, and 0.03 of 1% (3 basis points) for amounts over $300 million. Staff anticipate fees for the potential five-year contract to be between $730,000 and $1 million, depending on the amount managed over the contract term, which will be paid from investment earnings. For context, staff anticipate earning between $60 million and $96 million in interest over the same five-year period, based on current rates of return.
Documents Attached:
1. Attachment 1 - Chandler Asset Management, Inc. Contract