Title
Consider recommendation from the Finance/Administrative Committee to approve a contract with Valley View Consulting, L.L.C., for investment advisory services, in an amount not to exceed $50,000.
Body
RECOMMENDED MOTION:
Move the board adopt Resolution and Order No. __ of the Edwards Aquifer Authority Board of Directors approving the renewal of Contract No. 22-015-AFS between the EAA and Valley View Consulting, L.L.C., to serve as the EAA investment advisor, in an amount not to exceed $50,000, for the period July 1, 2026 through June 30, 2028.
SUMMARY:
The purpose of this agenda item is for the board to consider a Finance/Administrative Committee recommendation to approve the renewal of a contract with Valley View Consulting, L.L.C. (Valley View) to serve as the EAA investment advisor. According to Article X of the EAA Bylaws (the Investment Policy and Investment Strategy Statement), “it is the policy of the Edwards Aquifer Authority’s Board that all available funds are to be invested to the maximum extent possible at the highest possible rates obtainable at the time of investment….” The Investment Policy also states that investment yield follows preservation and safety of the principal, liquidity, and investment diversification in the priority order of investment objectives. To identify additional investment opportunities and further diversify EAA investments consistent with the Investment Policy, staff recommends continuing to engage an independent consultant to serve as the EAA investment advisor.
In 2022, EAA staff solicited for the required services consistent with the standard EAA procurement process for services contracted for between $3,000 and $50,000, per year. Valley View provided the most favorable rate for investment advisory services and has been providing investment advising and portfolio management services to the EAA since 2010. Therefore, staff recommended award of the contract to Valley View with an option to renew the contract for up to 3 additional 2-year periods. This renewal represents the second of the three renewal periods.
The fee paid to Valley View, which is explained in the attached agreement, is a flat rate amount of $25,000 per year. In the prior year agreement, the fee paid to Valley View as based on the book value of the EAA’s portfolio, with a not to exceed maximum fee of $25,000 per year. Based on current value and projections, it is estimated that the fee paid to Valley View for each year of the contract of $25,000 is reasonable and appropriate.
Section 10.08 of the EAA Bylaws allows the Board, by resolution to "contract with an investment management firm to provide management advice and assist the Authority in the investment and management of the Authority’s public funds and other funds under its control." Attached to this item is draft resolution and order and draft Contract No. 22-015-AFS with Valley View Consulting, L.L.C., each of which have been reviewed by legal counsel.
M/WBE PARTICIPATION:
Valley View Consulting, L.L.C., is not an M/WBE vendor.
STRATEGIC PLAN REFERENCE:
This agenda item does not relate to a specific goal within the Strategic Plan, but supports the general EAA mission.
FISCAL IMPACT:
This two-year agreement is estimated to cost no more than $25,000 annually. Funding is available in the 2026 operating budget. Funding for the remaining portion of the contract will be included in future EAA budgets.