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 are mutually agreeable to the extension at that time. While this is how the contract term is typically set up for financial and accounting services such as depository banking and professional audit services, the City has learned that 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. As such, the renewal of the agreement with Valley View consulting is being presented for consideration after a two-year term rather than a three-year term. Renewing the contract for the next two years would extend the contract for the contemplated third year and the first one-year renewal option. The City is very pleased with the partnership with Valley View Consulting and is agreeable to updating the current agreement for the next two years.
Attached is a copy of the new agreement for investment advisory services for the period October 1, 2017 through September 30, 2019. The fees are in unchanged and in accordance with the original agreement. Upon completion of this term, the agreement will be eligible for renewal for one additional year through September 30, 2020.
Fiscal/Budgetary Impact:
Investment advisory services are included in the Finance Department budget in the amount of $43,000 (Account Number 10-201-4240, Consultant Fees) in the current FY 2016-2017 budget and in the proposed FY 2017-2018 budget.
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