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Agenda Item # 11

BOARD MEMORANDUM

RECOMMENDATION:

Authorize the General Manager to extend the existing contract with Mercer Investment Consulting, Incorporated to monitor Investment Managers performance, provide asset allocation studies and assist in Investment Manager searches for a period of three years for an amount not to exceed $225,000 with an option to extend for 2 years (one year at a time) at a negotiated amount.

BACKGROUND:

Pursuant to a Request for Proposals issued in 2000, VTA executed a contract with Mercer Investment Consulting, Inc. (Mercer) to monitor the performance of Investment Managers, provide asset allocation studies and assist in the search for investment management firms. The term of contract was for 3 years, expiring on August 2, 2003. 

DISCUSSION:

During the last RFP process, Mercer was one of two firms that submitted a proposal.  Mercer was considered the highest rated proposer on the basis of their technical qualifications.  Mercer has provided VTA with high quality service at a reasonable price and continues to do so.  Thus, staff proposes extending the contract

ALTERNATIVES:

The Board could request staff to conduct a competitive solicitation, however, staff believes  it is unlikely that a competitive process will result in any savings while extending the contract avoids administrative and solicitation costs.

FISCAL IMPACT: 

Funds for these services are included in VTAs Operating and the ATU/VTA Pension Plan budgets.

SBE PARTICIPATION:

Due to the commercial nature of these services, no specific goal was established for this contract.

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