Title
Proposed Change Order No. 4 - Extension of Time Only SCN-0000189
Investment Advisor Services PFM Asset Management, LLC Contract Extension
Body
Agenda of: May 28, 2025
Item No.: 2025-142
Amount:
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: May 28, 2025
RE: Proposed Change Order No. 4
SCN-0000189
Investment Advisor Services
PFM Asset Management, LLC Contract Extension
MOTION
Upon recommendation of Nicolette N. Bateson, Chief Financial Officer & Treasurer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), approves a contract extension for Contract No. GLWA-SCN-0000189 Proposed Change Order No. 4 “Investment Advisor Services” with PFM Asset Management LLC, for an increased duration of seven (7) months for a total contract duration of 73 months through January 2026; and authorizes the Chief Executive Officer to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The Great Lakes Water Authority (GLWA) has worked with an investment advisor since the stand-up of the organization to assist in the management of its investment portfolio. The use of a registered investment advisor has proven to be a cost effective and efficient approach to portfolio management. The investment advisor allows GLWA to have direct access to financial market data sources, technology and expertise while allowing the treasury team to focus on the development of cash flows, treasury internal controls, and process improvements. Using an investment advisor has helped GLWA to achieve higher portfolio returns, properly manage market risk and diversify portfolio holdings.
Pursuant to a competitive request for proposal process, staff was authorized by the Board on November 13, 2019 to enter into a contract with PFM Asset Management, LLC. The present contract, executed January 1, 2020, was for three years at a cost of $1,320,000 with two one-year renewals at a cost of $440,000 for each renewal. Both renewals were executed resulting in a total contract amount of $2,200,000. This contract expired December 31, 2024. The Board approved a contract extension of time only through June 30, 2025 on December 11, 2024.
In keeping with GLWA’s ongoing cycle to solicit proposals for key professional services, a Request for Proposal (RFP) for Investment Advisor services is in process to solicit bids from qualified vendors to allow GLWA to compare skills, rates, understand current industry practices to identify the best partner to advise GLWA on its investment portfolio.
Staff transitions and workload requirements for the financial services team resulted in staff resource constraints to complete the RFP process and transition the contract before June 30, 2025.
JUSTIFICATION
To maintain continuity of service during the RFP process, a contract amendment for an extension of time only is requested to the current contract with PFM Asset Management, LLC for seven months through January 2026. This contract extension will allow for a robust RFP process and support a smooth transition to the newly appointed Investment Advisor. See attachment 1 for Project Management Status table.
BUDGET IMPACT
This contract amendment for extension of time does not have a budget impact. The costs associated with the contract extension will be covered under the available dollars in the current contract.
COMMITTEE REVIEW
This matter was reviewed by the GLWA Audit Committee at its meeting on May 2, 2025. The Audit Committee unanimously recommended the Board of Directors approve a contract extension for Contract No. GLWA-SCN-0000189 Proposed Change Order No. 4 “Investment Advisor Services” with PFM Asset Management LLC, for an increased duration of seven (7) months for a total contract duration of 73 months through January 2026; and authorizes the Chief Executive Officer to take such other action as may be necessary to accomplish the intent of this vote.