DATE: August 3, 2017
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Kristine Tallent, Assistant City Administrator/Chief Financial Officer
SUBJECT:
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Consideration of Contract 2017-0200 with Dahab & Associates for Pension Fund Investment Advisory Services Effective July 1, 2017 (08/10/17 Finance 4-0) .
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Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning a proposed fee adjustment to the contract dated February 1, 2006 to provide investment management services for the City of Franklin Pension Fund.
Background
In consideration of the new investment management relationship between the City of Franklin and the Tennessee Consolidated Retirement System, the City’s fee will be adjusted from an asset-based fee to a fixed annual fee of $30,000, to be billed in arrears in equal quarterly installments.
Financial Impact
The FY 2018 fee for pension investment services due to Dahab Associates, Inc. will be a fixed fee of $30,000. As a comparison, in calendar year 2016, the City paid Dahab Associates, Inc. a total fee of $53,317.22.
Recommendation
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Staff recommends approval of contract amendment 2017-0200 to adjust the fee due for pension related investment advisory services to a fixed amount of $30,000 effective July 1, 2017.