AGENDA REPORT
DATE: August 12, 2024
TO: City Commission
FROM: Bill McDaniel, City Manager
SUBJECT: Amendment to Agreement with Public Trust Advisors, LLC
EXECUTIVE SUMMARY:
On March 9, 2021, the City Commission approved an agreement with Public Trust Advisors, LLC for investment advisory services for a term through February 21, 2026.
Public Trust notified the City that they entered into an agreement with PMA Asset Management, LLC (PMA) to combine holdings and renamed to PMA-PTA Holdings, LLC. The equity owners of Public Trust will acquire equity ownership of PMA-PTA. This structure change will benefit the firm, and the company will focus on preserving the current culture.
The Assignment Clause in the agreement states “[n]o assignment (as defined in the Advisors Act) of this Agreement shall be made by the Investment Manager without the Client’s Consent.” In the letter dated July 17 from Todd Alton, Chief Executive Officer, he describes the definitive transaction agreement and acknowledges that it could be viewed as a change in control within the meaning of the Investment Advisers Act of 1940. The attached letter requests written consent to the assignment.
RECOMMENDATION:
That the City Commission authorize the City Manager to execute the Consent to the Transaction.
FISCAL IMPACT:
This change does not impact the fees and compensation schedule for assets under management.
Prepared by: Diane Reichard, Chief Financial Officer