Title
Consideration of and action on renewing the agreement with Valley View Consulting, L.L.C. for investment advisory services.
Body
Summary: In May 2015, the City issued an RFP for investment advisory services to maximize investment earnings and in September 2015 awarded the contract to Valley View Consulting, L.L.C. The RFP indicated the initial three-year contract term would begin October 1, 2015 and included an option to extend the contract for each of the successive two years (for a total of five years) if both parties were mutually agreeable to the extension at that time. Because the Texas Public Funds Investment Act, Government Code Ch. 2256 as amended (the “Act”), requires that a contract with an investment advisor may not be for a term longer than two years, the agreement was previously extended in August 2017 for two years, in September 2019 for one year (based on the final term in the original RFP), then again in September 2020, 2022 and 2024 for two-year installments.
At this time, the City is very pleased with the partnership with Valley View Consulting, L.L.C. and is agreeable to continuing the partnership for another two-year agreement in accordance with the Texas Public Funds Investment Act. Because procurement of professional services are exempt from competitive bidding pursuant to Texas Local Government Code Section 252.022 (4) and because the firm has previously been determined to be the most qualified to provide these professional services, the City recommends, on that basis, continuation of the agreement with Valley View Consulting, L.L.C. for a new two-year term beginning October 1, 2026 through September 30, 2028.
The amendment includes a slight change in fees, as shown below:
Average Quarter End Book Value
Annual Fee
First $100 million
0.030% (3 basis points)
Next $100 million (above $100 million up to $200 million)
0.025% (2.5 basis points)
Balances over $200 million
0.020% (2 basis points)
Fiscal/Budgetary Impac...
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