HomeMy WebLinkAboutReso 31-19 First Amendment to Services Agreement Between the City of Dublin and Chandler Asset Management RESOLUTION NO. 31 — 19
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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APPROVING FIRST AMENDMENT TO SERVICES AGREEMENT BETWEEN
THE CITY OF DUBLIN AND CHANDLER ASSET MANAGEMENT
WHEREAS, on August 16, 2016, the City of Dublin (hereinafter referred to as "CITY") and
Chandler Asset Management (hereinafter referred to as "CONSULTANT") entered into a Services
Agreement for investment management services (hereinafter referred to as the "AGREEMENT"); and
WHEREAS, the City's portfolio has performed well against its benchmarks, and the City
desires to continue to utilize Chandler Asset Management services to safeguard City assets and
maximize interest earnings; and
WHEREAS, the existing AGREEMENT has a three-year term, expiring on
June 30, 2019; and
WHEREAS, the CITY and CONSULTANT mutually desire to extend the Term of Service to
expire on June 30, 2022; to update the tiered fee schedule in Exhibit B of the Agreement; and to
amend section 9 of the Agreement.
WHEREAS, the estimated annual contract cost is $130,000.
NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby
authorize the City Manager to execute the First Amendment to the Services Agreement with Chandler
Asset Management, as attached hereto as Exhibit A.
PASSED, APPROVED AND ADOPTED this 16th day of April 2019, by the following vote:
AYES: Councilmembers Goel, Hernandez, Josey, Kumagai and Mayor Haubert
NOES:
ABSENT:
ABSTAIN:
P/74 •
Mayor
ATTEST: ¢
etto
City Clerk
Reso No. 31-19, Adopted 4/16/2019, Item 4.12 Page 1 of 1
Exhibit A to Resolution
FIRST AMENDMENT TO SERVICES AGREEMENT BETWEEN
THE CITY OF DUBLIN AND CHANDLER ASSET MANAGEMENT
WHEREAS, on August 16, 2016, the City of Dublin (hereinafter referred to
as "CITY") and Chandler Asset Management (hereinafter referred to as "CONSULTANT")
entered into a Services Agreement for investment management services (hereinafter
referred to as the "AGREEMENT"); and
WHEREAS, the City's portfolio has performed well against its benchmarks,
and the City desires to continue to utilize Chandler Asset Management services tc
safeguard City assets and maximize interest earnings; and
WHEREAS, the existing AGREEMENT has athree-year term, expiring on
June 30, 2019; and
WHEREAS, the CITY and CONSULTANT mutually desire to extend the
Term of Service to expire on June 30, 2022; to update the tiered fee schedule in Exhibit
B of the Agreement, and to amend section 9 of the Agreement.
NOW THEREFORE, for good and valuable consideration, the sufficiency of
which is hereby acknowledged, the AGREEMENT is amended as follows:
1) Section 4 shall be rescinded in its entirety and replaced with the following:
Term of Performance. Consultant shall begin performing the services set forth in
Exhibit A as
of the Effective Date of this Agreement. Consultant shall thereafter
2) Section 9 shall be rescinded in its entirety and replaced with the following:
Nondiscrimination and Equal Opportunity. Consultant shall not discriminate, on
the basis of a person'0 race, sex, gender, religion (including religious dress and
grooming practices), national origin, ancestry, physical or mental disability,
medical condition (including cancer and genetic characteristics), marital status,
age, sexual orientation, color, creed, pregnancy, genetic information, gender
identity or expression, political affiliation or belief, military/veteran status, or any
other classification protected by applicable local, state, or federal laws (each a
"Protected Characteristic"), against any employee, applicant for employment,
subcontractor, bidder for a subcontract, or participant in, recipient of, or applicant
for any services or programs provided by Consultant under this Agreement.
Consultant shall include the provisions of this Subsection in any subcontract
approved by the Contract Administrator or this Agreement.
3) Exhibit B shall be rescinded in its entirety and replaced with the following:
Payment Terms.
City shall compensate Consultant monthly an
value of City' s portfolio, including accrued
schedule:
Assets Under Management
First $ 25 million
Next $ 25 million
Next $100 million
Assets in excess of $150 million
amount calculated on the average market
interest, in accordance with the following
Annual Investment Management Fee
0.10 of 1 % (10 basis points)
0.08 of 1 % (8 basis points)
0.07 of 1 % (7 basis points)
0.05 of 1 % (5 basis points)
The fees expressed above do not include any custody fees that may be charged by City's
bank or other third -party custodian. The City is not required to pay any start-up or closing
fees; there are no penalty fees. There are no additional costs associated with the sale
and purchase of securities, other than those that may be imposed by the custodian.
Fees shall be prorated to the effective date of termination of the agreement on the basis
of actual days elapsed, and any unearned portion of prepaid fees shall be refunded.
The fee schedule is all- inclusive for the services that the Consultant will provide the City,
including personal visits and education offerings for Staff.
Fees shall be deducted monthly in arrears from City' s custody account. There is no
annual minimum required.
4) Paragraph 16 Integration shall be rescinded in its entirety and replaced with the
following:
16. Integration. This Agreement, including Exhibits A and B, represents
the entire and integrated agreement between City and Consultant and
supersedes all prior negotiations, representations, or agreements, either
written or oral.
5) Except to the extent inconsistent with this First Amendment, the Parties ratify and
confirm all of the terms and conditions of the AGREEMENT.
6) All requisite insurance policies to be maintained by the Consultant pursuant to the
Agreement, as may have been amended from time to time, shall include coverage
for the amended term, as described above.
7) The individuals executing this Amendment and the instruments referenced in it on
behalf of Consultant each represent and warrant that they have the legal power,
right and actual authority to bind Consultant to the terms and conditions of this
Amendment.
IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be
executed as of the date and year first above written.
CITY OF DUBLIN
Dated:
ATTEST:
By:
Caroline Soto, City Clerk
CHANDLER ASSET MANAGEMENT
Dated: a? apt By:
By:
Christopher L. Foss, City Manager
Nicole Dragoo, C