Title
Resolution to Increase Purchasing Authority with Insight North America LLC from the Current Limit Authorized in Resolution R-22-207 to $150,000.00 Annually for Investment Advisory Services
Memorandum
Attached for your approval is a resolution authorizing an increase in purchasing authority with Insight North America LLC for investment advisory services. The City executed a professional services agreement with Insight North America LLC on July 1, 2022, as authorized by City Council Resolution R-22-207, which assumed an average portfolio size of $300,000,000 and an approximate annual cost of $120,000.00 based on the contracted fee schedule.
Over the past three quarters, the City’s investment portfolio has averaged $375,000,000.00, exceeding the original estimate. Given the contractual fee schedule of 5 basis points on the first $150 million and 3 basis points thereafter, the higher portfolio size necessitates an increase in the purchasing authority under the agreement to avoid administrative disruptions and ensure compliance.
This resolution also affirms that no changes are being made to Insight North America LLC’s fee schedule or the terms of the agreement. The proposed increase in purchasing authority is necessary to reflect actual service utilization based on portfolio growth.
Insight North America LLC complies with the City’s Living Wage and Non-Discrimination Ordinances.
Budget/Fiscal Impact: Funding for investment advisory services is available in the approved budgets of all City funds participating in the investment pool.
Staff
Prepared by: Michael Pettigrew, City Treasurer
Reviewed by: Marti Praschan, Chief Financial Officer
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, City Council Resolution R-22-207 authorized the City to execute a five-year contract with Insight North America LLC, with two one-year renewal options, for investment advisory services;
Whereas, The agreement included a fee schedule of 5 basis points on the first $150 million of portfolio assets and 3 basis points on amounts above $150 million;
Whereas, The original purchasing authority assumed a portfolio size of $300,000,000.00 and an approximate annual cost of $120,000.00;
Whereas, The average portfolio size has exceeded $375,000,000.00 over the past three quarters, resulting in increased actual service fees under the existing fee schedule;
Whereas, No changes are being made to the fee schedule or other contractual terms with Insight North America LLC; and
Whereas, Funding for investment advisory services is available in the approved budgets of all City funds participating in the investment pool;
RESOLVED, That City Council approves an increase in the purchasing authority under the existing agreement with Insight North America LLC to a total amount not to exceed $150,000.00 annually;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute any necessary amendments or authorizations consistent with this resolution after approval as to substance by the City Administrator and approval as to form by the City Attorney; and
RESOLVED, That the City Administrator be authorized to take all necessary administrative actions to implement this resolution.