Title
Consider recommendation from the Finance/Administrative Committee to approve an agreement with Valley View Consulting, LLC, to serve as the EAA investment advisor in an estimated amount not to exceed $50,000.
Body
RECOMMENDED MOTION:
Move the board approve an agreement with Valley View Consulting, LLC, to serve as the EAA investment advisor for the period July 13, 2018 through June 30, 2020, in an amount not to exceed $50,000.
SUMMARY:
The purpose of this agenda item is for the board to consider a Finance/Administrative Committee recommendation to approve a contract with Valley View Consulting, LLC, to serve as the EAA investment advisor. According to Article IX 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…”. However, 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. Valley View has provided investment advising and portfolio management services to the EAA since 2010. The fee paid to Valley View, which is explained in the attached agreement, is based on the book value of the EAA’s portfolio, with a not to exceed maximum fee. Based on current value and projections, it is estimated that the fee paid to Valley View for each year of the contract will be approximately $25,000.
Attached to this item is the draft agreement with Valley View, LLC, which has been reviewed by legal counsel. Although this item is within the General Manager’s signature authority, the...
Click here for full text