Consent-General Government # 21.
Board of Supervisors
Financial Services
- Meeting Date:
- 06/25/2024
- Brief Title
- Contract with PFM Asset Management LLC for Investment Advisory Services
From:
Tom Haynes, Chief Financial Officer, Department of Financial Services
Staff Contact:
Sou Xiong, Treasury and Revenues Manager, Department of Financial Services, x8212
Supervisorial District Impact:
Countywide
Subject
Approve contract with PFM Asset Management LLC for investment advisory services for fiscal years 2024-25, 2025-26, and 2026-27, with an option for two additional fiscal years, at an annual cost not to exceed $250,000. (No general fund impact) (Haynes/Xiong)
Recommended Action
Approve contract with PFM Asset Management LLC for investment advisory services for fiscal years 2024-25, 2025-26, and 2026-27, with an option for two additional fiscal years, at an annual cost not to exceed $250,000.
Strategic Plan Goal(s)
 |
In Support of All Goals (Internal Departments Only) |
Reason for Recommended Action/Background
Yolo County contracts with an external investment advisor to manage investment holdings in the County treasury pool and other investment portfolios. The contract with the current investment advisor to the County (PFM Asset Management) is due to expire on June 30, 2024. Following County procurement policy, staff issued a request for proposals (RFP) to provide investment services and received a total of four proposals, as described in the Competitive Bid process below.
An RFP evaluation committee was formed including members from the Department of Financial Services and the Yolo County Office of Education. The committee scored the technical merits of each proposal and consolidated scores with the cost scoring. The top ranked firm was invited to submit a best and final offer and revised costs were incorporated in the cost scoring to determine the best qualified firm.
As a result of the competitive bid process, PFM Asset Management (PFM) was determined to be the best qualified bidder. The Department of Financial Services recommends that the Board approve the contract with PFM as reflected in Attachment B and related Exhibits.
An RFP evaluation committee was formed including members from the Department of Financial Services and the Yolo County Office of Education. The committee scored the technical merits of each proposal and consolidated scores with the cost scoring. The top ranked firm was invited to submit a best and final offer and revised costs were incorporated in the cost scoring to determine the best qualified firm.
As a result of the competitive bid process, PFM Asset Management (PFM) was determined to be the best qualified bidder. The Department of Financial Services recommends that the Board approve the contract with PFM as reflected in Attachment B and related Exhibits.
Collaborations (including Board advisory groups and external partner agencies)
The evaluation committee comprised of members from the Department of Financial Services as well as a member from the Yolo County Office of Education. The Department of Financial Services also shared the results of the selection process with the County Financial Oversight Committee at their June 13, 2024 meeting.
Competitive Bid Process/Vendor Performance
Request for Proposals (RFP) Service Requested: Investment Advisory Services
Evaluation Criteria Included in RFP
Evaluation Criteria Included in RFP
- Technical score (70 points)
- Qualifications and Experience – 20 points
- Demonstrated Competence – 20 points
- Customer References – 5 points
- Quality and Completeness of Proposal – 5 points
- Concept and Understanding of County Goals and Intentions – 10 points
- Financial and Legal Stability – 10 points
- Reasonableness of Costs (30 points)
Bids Received
Proposals were scored for cost on a portfolio size under management of $512.4 million, which was the County's assets under management at March 31, 2024. The majority of the proposals charge a fee as an amount of basis points of assets under management. Certain firms had a fixed cap for the overall cost.
Proposals were scored for cost on a portfolio size under management of $512.4 million, which was the County's assets under management at March 31, 2024. The majority of the proposals charge a fee as an amount of basis points of assets under management. Certain firms had a fixed cap for the overall cost.
| Bidder | 2024-25 | 2025-26 | 2026-27 | Total |
|---|---|---|---|---|
| PFM Asset Management LLC | $153,720 | $178,720 | $178,720 | $511,160 |
| Chandler Asset Management | $208,720 | $208,720 | $208,720 | $626,160 |
| Public Trust Advisors LLC | $264,960 | $264,960 | $264,960 | $794,880 |
| Cantella & Co. | $150,000 | $150,000 | $150,000 | $450,000 |
Vendor Performance
The Department of Financial Services confirms that PFM Asset Management has performed satisfactorily on the current agreement.
Fiscal Impact
Fiscal impact (see budgetary detail below)
Fiscal Impact (Expenditure)
- Total cost of recommended action:
- $ 250,000
- Amount budgeted for expenditure:
- $ 250,000
- Additional expenditure authority needed:
- $ 0
- On-going commitment (annual cost):
- $ 250,000
Source of Funds for this Expenditure
- Treasury Pool
- $250,000
Further explanation as needed:
The General Fund initially pays for the costs associated with the Investment Advisor contract; however, eligible costs associated with the contract are then reimbursed by the Treasury Pool, Landfill, Cache Creek, Demeter, and Ceres Funds based on the proportion of assets that are under advisement by the investment advisor.
This contract will start July 1, 2024 and sufficient funds for the contract are included in the Department of Financial Services 2024-25 budget.
This contract will start July 1, 2024 and sufficient funds for the contract are included in the Department of Financial Services 2024-25 budget.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Tom Haynes | Tom Haynes | 06/17/2024 04:53 PM |
| Financial Services | mrobertson | 06/18/2024 09:33 AM |
| County Counsel | Eric May | 06/18/2024 03:09 PM |
| Eric May | Eric May | 06/19/2024 03:14 PM |
| Cindy Perez | Paula Hugi | 06/20/2024 10:51 AM |
| Yen Nguyen | Yen Nguyen | 06/20/2024 11:08 AM |
- Form Started By:
- sxiong
- Started On:
- 05/13/2024 08:21 AM
- Final Approval Date:
- 06/20/2024