HomeMy WebLinkAboutNovember 2FIC Meeting
Wednesday, November 2, 2005
• Roll call
o Attending: Craig Jones, Karl Kneip, Jim Lai, Frank Lloyd, Stan Mok, Jean
Mordo and Sarah Ragsdale (town staff)
o Absent: Wilf Corrigan, Doug Norby and Lalla Stark
• Approval of minutes for October 3, 2005 meeting
• Election of Officers
o Vice chair – Stan Mok
o Secretary – Karl Kneip
• Calendar for future meetings
o December 5, 2005
o January 9, 2006
o February 6, 2006
o March 6, 2006
o April 3, 2006
o May 1, 2006
o June 5, 2006
o June 8, 2006 – Joint session with council
o August 7, 2006
o September 11, 2006
o October 2, 2006
o November 6, 2006
o December 4, 2006
• Cash Management – Review of proposals from vendors
o We received 14 responses to our RFP
o Jim, Sarah and Stanly reviewed all proposals and selected 3 for the
committee to review
Chandler Asset Management
• Ted Piorkowski, CFA, Vice-President Portfolio Manager
• Ted requested Sarah prepare a cashflow projection for
making investments
• Custodial account would be established and Chandler
would make trades based on our cash needs and market
conditions.
• Chandler fee would be 12 basis points 0.12% and they do
not receive any soft dollars from their vendors.
The PFM Group:
• Marty Margolis, Chief Investment Officer, and Nsesa
Kazadi Sr. Managing Consultant Project Manager
• PFM would review our current investment policy and
perform a cash flow analysis to match yield maturities to
the town’s needs.
• PFM has the advisor to CAMP- California Asset
Management Program - Joint Powers Authority
recommended that we join CAMP. All CAMP members
benefit from negotiated group rates. Currently 10 basis
points 0.10%
• Our money would be placed in a CAMP custodial account
at a cost $750 per year.
Northern Trust Bank
• Lawrence Hebb, Managing Director and Don Peter, CFA,
Vice President Portfolio Management
• Based on the current market conditions, they recommended
that the town should set up an account, but not switch out
of LAIF based on current market conditions. With the
current flat yield curves, we should wait before changing
our investment strategy.
• Northern Trust’s fee would be 20 basis points.
o After review of the three presentations, the FIC members recommended
PFM based on their recommendation to join CAMP JPA for a low cost
custodial account and negotiated processing fee.
o Sarah will check the following references: Alameda, Fairfield, Roseville,
Petaluma and First Five of Fresno County.
o Assuming positive feedback, Sarah will then prepare a staff report that
will go to the City Council on 11/17/2005
• Presentations from the floor – None
• Meeting adjourned
Minutes were approved as corrected at December 5, 2005 FIC meeting.