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HomeMy WebLinkAboutRES 22-296RESOLUTION NO. 22-296 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute an agreement for investment management services with Valley View Consulting, LLC, of Huddleston, Virginia, substantially in the form attached hereto as Exhibit "A," to monitor the City's funds to develop and execute investment strategies in a timely manner and to safely optimize the returns on the City's portfolio; and, duties: THAT as a part of the agreement, Valley View agrees to perform the following a. Assist the City in developing cash flow projections; b. Suggest appropriate investment strategies to achieve the City's objectives; c. Advise the City on market conditions, general information, and economic data; d. Analyze risk/return relationships between various investment alternatives; e. Attend periodic meeting as requested by the City; f. Assist in the selection, purchase, and sale of investments as defined by the City's Investment Policy; g. Advise on the investment of bond funds as to provide the best possible rate of return to the City in manner which is consistent with the Investment Policy of the City and applicable federal rules and regulations; h. Assist the City in creating investment reports in compliance with State legislation and the City's Investment Policy; and, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are . hereby, in all things, approved and adopted; and, BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute an agreement for investment management services with Valley . View Consulting, LLC, of Huddleston, Virginia, substantially in the form attached hereto as Exhibit 'A," to monitor the City's funds to develop and execute investment strategies in a timely manner and to safely optimize the returns on the City's portfolio. . The meeting at which this resolution was approved was in all.things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter. 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 1st day of November, 2022 - Mayor Robin Mouton - AGREEMENT BY AND BETWEEN THE CITY OF BEAUMONT, TEXAS AND VALLEY VIEW CONSULTING, L.L.C. It is understood and agreed that the City of Beaumont (the Investor) will have money available for investment (the Investable Funds) and Valley View Consulting, L.L.C. (the Advisor) has been requested to provide professional services to the Investor with respect to the Investable Funds. This agreement (the Agreement) constitutes the understanding of the parties with regard to the subject matter hereof. 1. This Agreement shall apply to any and all Investable Funds of the Investor from time to time during the period in which this Agreement shall be effective. 2. The Advisor agrees to provide its professional services to direct and coordinate all programs of investing as may be considered and authorized by the Investor. 3. The Advisor agrees to perform the following duties, as requested: a. Assist the Investor in developing cash flow projections, b. Suggest appropriate investment strategies to achieve the Investor's objectives, c. Advise the Investor on market conditions, general information and economic data, d. Analyze risk/return relationships between various investment alternatives, e. Attend occasional meetings as requested by the Investor, f. Assist in the selection, purchase, and sale of investments. The Advisor shall not have discretionary investment authority over the Investable Funds and the Investor shall make all decisions regarding purchase and sale of investments. The eligible investments are listed in the Investor's Investment Policy, g. Advise on the investment of bond funds as to provide the best possible rate of return to the Investor in a manner which is consistent with the proceedings of the Investor authorizing the investment of the bond funds or applicable federal rules and regulations, h. Assist the Investor in creating investment reports in compliance with State legislation and the Investor's Investment Policy, i. Assist the Investor in creating monthly portfolio accounting reports, and j. Assist the Investor in selecting a primary depository services fmancial institution. EXHIBIT "A" 4. The Investor agrees to: a. Compensate the Advisor for any and all services rendered and expenses incurred as set forth in Appendix A attached hereto, b. Provide the Advisor with the schedule of estimated cash flow requirements related to the Investable Funds, and will promptly notify the Advisor as to any changes in such estimated cash flow projections, c. Allow the Advisor to rely upon all information regarding schedules, investment policies and strategies, restrictions, or other information regarding the Investable Funds as provided to it by the Investor and that the Advisor shall have no responsibility to verify, through audit or investigation, the accuracy or completeness of such information, d. Recognize that there is no assurance that recommended investments will be available or that such will be able to be purchased or sold at the price recommended by the Advisor, and e. Not require the Advisor to place any order on behalf of the Investor that is inconsistent with any recommendation given by the Advisor or the policies and regulations pertaining to the Investor. 5. In providing the investment services in this Agreement, it is agreed that the Advisor shall have no liability or responsibility for any loss or penalty resulting from any investment made or not made in accordance with the provisions of this Agreement, except that the Advisor shall be liable for its own gross negligence or willful misconduct; nor shall the Advisor be responsible for any loss incurred by reason of any act or omission of any broker, selected with reasonable care by the Advisor and approved by the Investor, or of the Investor's custodian. Furthermore, the Advisor shall not be liable for any investment made which causes the interest on the Investor's obligations to become included in the gross income of the owners thereof. 6. The fee due to the Advisor in providing services pursuant to this Agreement shall be calculated in accordance with Appendix A attached hereto, and shall become due and payable as specified. Any and all expenses for which the Advisor is entitled to reimbursement in accordance with Appendix A attached hereto shall become due and payable at the end of each calendar quarter in which such expenses are incurred. 7. This Agreement shall remain in effect until September 30, 2024, with the option of the Investor to extend this Agreement in additional one or two-year increments. Provided, however, the Investor or Advisor may terminate this Agreement upon thirty (30) days written notice to the other parry. In the event of such termination, it is understood and agreed that only the amounts due to the Advisor for services provided and expenses incurred to and including the date of termination will be due and payable. No penalty will be assessed for termination of this Agreement. In the event this Agreement is terminated, all investments and/or funds held by the Advisor shall be returned to the Investor as soon as practicable. In addition, the parties hereto agree that upon termination of this Agreement the Advisor shall have no continuing obligation to the Investor regarding the investment of funds or performing any other services contemplated herein. 8. The Advisor reserves the right to offer and perform these and other services for various other clients. The Investor agrees that the Advisor may give advice. and take action with respect to any of its other clients, which may differ from advice given to the Investor. The Investor agrees to coordinate with and avoid undue demands upon the Advisor to prevent conflicts with the performance of the Advisor towards its other clients. 9. The Advisor shall not assign this Agreement without the express written consent of the Investor. 10. By initialing the appropriate line, Investor acknowledges that: 1) . X Investor was provided a written copy of Form ADV Part 2 not less than 48 hours prior to entering this written contract, or 2) Investor received a written copy of Form ADV Part 2 at the time of entering into this contract and has the right to terminate this contract without penalty within five business days after entering into this contract. 3) Investor is renewing an expiring contract and has received in the past, and offered annually, a written copy of Form ADV Part 2. When accepted by the Investor, it, together with Appendix A attached hereto, will constitute the entire Agreement between the Investor and Advisor for the purposes and the consideration herein specified. Respectfully submitted, Richard G. Long, Jr. Manager, Valley View Consulting, L.L.C. This agreement is hereby agreed to and executed on behalf of the City of Beaumont, Texas. Im City of Beaumont Date: FEE SCHEDULE AND EXPENSE ITEMS In consideration for the services rendered by Advisor in connection with the investment of the Investable Funds for the Investor, it is understood and agreed that its fee will be a tiered annual fee equal to: Averame Quarter End Book Value Annual Fee First $85 million 0.036% (3.6 basis points) Next $65 million (above $85 million up to $150 million) 0.030% (3 basis points) Next $100 million (above $150 million up to $250 million) 0.020% (2 basis points) Balances .over $250 million 0.010% (1 basis points) In the event a flexible repurchase agreement or other similar investment option is utilized, the Advisor shall receive a normal and customary fee within the guidelines of the Internal Revenue Service, in lieu of the Agreement Fee. Said fee includes all costs of services related to this Agreement, and all travel and. business expenses related to attending regularly scheduled occasional meetings. With pre -trip Investor approval, the Advisor may also request reimbursement for special meeting or event travel and business expenses. The obligation of the Advisor to pay expenses shall not include any costs incident to litigation, mandamus action, test case or other similar legal actions. Any other fees retained by the Advisor shall be disclosed to the Investor. AGM N I AND BETWEEN THE CITY of BEAUMONT, TEXAS AND VALLEY VIEW CONSULTING, *.C. It is understood and agreed that the City of Beaumont (the .investor) will have money available for investment (the Investable Funds) and Valley View Consulting, L.L.C. (the Advisor) has been requested to provide professional services to the Investor with respect to the investable Funds. This agreement (the grt) constitutes the understanding of the parties with regard to the s bj eet matter hereof. 1. Thais Agreement shall apply to any and all Investable Funds of the Investor •orn tie t time during the period in which Us Agreement shall be effective. 2. The Advisor agrees to provide its professional services to direct and coordinate all programs of investing as may be considered and authorized by the Investor. . The Advisor agrees to perfonn the following duties, as requested: a. Assist the Investor in developing cash flow projections, . Suggest appropriate investment strategies to achieve the In estor's obj ecti es, c. Advise the Investor on market conditions, general information and econorr c data, d. Analyze fisk roturn relationships between various investment alternatives, e. Attend occasional meetings as requested by the Investor, f. Assist in the selection, purchase, and sale of investments. The Advisor shall not have discretionary investment authority over the Investable Funds and the investor shall make all decisions regarding purchase and sale of investments. The eligible investments are listed in the Investor's Investment Policy, g. Advise on the investment of bond funds as to provide the best possible rate of return to the Investor in a manner which is consistent with the proceedings of the Investor authorizing the investment of the bond funds or applicable Federal rules and regulations, h. Assist the Investor in creating investrnent reports in compliance with State legislation and the Investor's Investment Policy, i, Assist the Investor in creating monthly portfolio accounting reports, and j. Assist the Investor In selecting a primary depositor services financial institution. . The Investor agrees to: a. Compensate the Advisor for any and all services rendered and expenses incmed as set foh in Appendix. A attached hereto, h. provide the Advisor with the schedule of estimated cash flow requirements related to the Investable Funds, and will promptly notify the Advisor as to any changes in such estimated cash flow projections, c. Allow the Advisor to rely upon all information regarding schedules, investment policies and strategies, restrictions, or other information regarding the Investable `mds as provided to it by the Investor and that the Advisor shall have n responsibility to verify, through audit or investigation, the accuracy or completeness of such information, d. Recognize that there is no assurance that recommended investments will he available or that such will be able to he purchased or sold at the price recommended by the Advisor, and e. Not require the Advisor to place any order; on behalf of the Investor that is inconsistent with any recommendation given by the Advisor or the policies and regulations p rtaimm�g to the Investor. 5. In providing the investment services in this Agreement, it 'is agreed that the Advisor shall have no liability or responsibility for any loss or penalty resulting from any investment made or not made in accordance with the provisions of this Agreement, except that the Advisor shah e liable for its own gross negligence or willful misconduct; nor shad the Advisor be responsible for any loss incurred by reason of any act or omission of any broker, selected with reasonable care ley the Advisor and approved by the Investor, or of the Investor's custodian. urthennore, the Advisor shall not be liable for any investment made which causes the interest on the Investor" s obligations to become included in the gross income of the owners thereof. . The fee due to the Advisor in providing services pursuant to this Agreement shall be calculated in accordance with Appendix A attached hereto, and shall become due and payable as specified. Any and all expenses for which the Advisor is entitled to reimbursement in accordance with Appends A. attached hereto shall become due and parable at the end of each calendar quarter in which such expenses are incurred. . This Agreement shall remain in effect until September 30, 2024, with the option of the ffivestor to extend this Agreement in additional one or two -gear increments. Provided, however, the Investor or Advisor may terminate this Agreement upon thirty days vaitten notice to the other party. In the event of such tenination, it is understood and agreed that only the amounts due to the Advisor for services provided and expenses incurred to and including the date of termination will he due and payable. No penalty will be assessed for termination of this Agreement. In the event this Agreement is terminated, all investments and/or funds held by the Advisor shall he returned to the Investor as soon as practicable. In addition, the parties hereto agree that upon termination tion of this Agreement the Advisor shall have no continuing obligation to the Investor regarding the investment of funds or perfonning any other services contemplated herein. . The Advisor reserves the figbt to offer and perforthese and other services foriou other clients. The Investor; agrees that the Advisor may give advice .and take action with respect to any of its other clients, which may differ from advice given to the Investor. The In e t r .agrees to coordinate with and avoid undue demands up n the Advi'sor to prevent + conflicts with the perforrnan e of the Advisor towards -fts other clients. . The Advisor shall not assign this Agreement without the express written consent of the Investor. 10. By initialing the appropriate line, Investor acknowledges that: 1 Investor was provided a written copy of Form ADV Part 2 not less than 48 hours prior to entering this Witten contract, or 2 Investor received a written copy of Form ADV Part 2 at the -time of entering into this conftact and has the right to tcnnlnate this contract without petialty within five business days after entering into this contract. 3)Investor is renewmg an expuing contract and has received in the past, and offered annually, a written copy of Form AD V . Part 2. . When accepted by the Investor, it, together with Appendix A attached hereto,- will constitute the entire Agr e nent between the nvAt r and Advisor for the purposes and the consideration herein specified. Respectfully submitted, . 7 ilichard G. Long,. ,r. - Manager, Valley View Consulting, .L. C. This agreement is hereby agreed to and executed on behalf of the City of Beaumont, Texas. By- - City ,of Beaumont Date: —;2 APPENDIX FEE SCHEDULE AND EXPENSE ITEMS In consideration `or the services rendered by Advisor in connection with- the investment of the Investable Funds for the Investor, it i understood and agreed that its fee will be a tiered annual fee equal to: . A.ve a c Quafter End Book, Value Annual Fee First $85 illio a 0.036% (3.6 basis points) Next $65 million (above 5 rm"fio up to 150 million) 0.030% 3 basis points) Next oo .million (above $150 million to $250 million) 0.020% 2 basis points) Balances ,over $250 million 0.010% l basis points) iri the evert a flexible repurchase agreement or offer similar investment option is utilized, the Advisor shall receive oral and customary fee within the guidelines of the Internal Revenue Service, in lieu of the Agreement Fee. Said fee Includes all costs of services relat6d to this Agreement, and all -travel and business execs related to attending regularly scheduled occasional meetings. With pre -trip ves o approval, the Advisor may also request reimbursement forspecial meeting or evert travel and business expenses, The obligation of the Advisor to pay expenses shall not include any costs incident to litigation, mandamus action, test case oar other similar legal actions. Any other flies retained by the Advisor shall be disclosed to the Investor. RESOLUTION NO. 22-296 BE IT RESOLVED Y THE CITY COUNCIL OF THE a CITY o ' EA N T: THAT the City Manager be and he is hereby authorized to execute an agreement for investment management services with Malley View Consulting, Li. C, of Huddleton, Virginia 'substa ntia I ly in the form attached hereto as Exhibit "A," to monitor the City funds to develop and execute investment strategies in. a timely manner and to safely optimize the returns on the City'portfolio; and, THAT as a part of the agreement, Halley View agrees to perform the following . duties: . Assist the City in developing cash flow p.r-ojeotion ; b. Suggest appropriate investment strategies to achieve the City's objectives; } . Advise' the City on market conditions, general informeition, and economic data; d. Analyze risk/return relationships between various investmentalternatives; . Attend periodic meeting as requested by the City; f. Assist in the selection, purchaser and, sale of investments as defined by the. City'' investment Policy; t Advise on the Jnvtment of bond funds as to provide the best possible rate of= return to the City in manner which is consistent with the investment Policy of the City and applicable federal rules and regulations; h r Assist the City in creating investment ent reports in compliance with State legislation and the Cit 's investment Policy; and, NOW, THEREFORE, IT RESOLVED Y THE CITY COUNCIL OF THE CITE' OF r A MONT: THAT the statements and findings set out In the preamble to this resolution are hereby, in all things, approved and adopted; and, BE IT FURTHER RESOLVED THAT the City Manager e and he is hereby. authorized to execute an agreement for investment management services with valley View Consulting, LLG, of Huddleston, Virginia: substantially in the f rrn attached hereto as Exhibit .'A" to monitor the City#s funds to develop and execute investment strategies in a timely manner and to safely optimize the returns on the Cit rs portfoli . . The meeting at which this resolution was approved was in alljbings conducted in strict. compliance with the Texas Open Meetings Act, Texas Government Code, Chapter. 51. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 1st day of November, 2022. 410b, � - Mayor Robin Jlo t n -