Report to Mayor and City Council
Tuesday, March 06, 2018
Discussion
SUBJECT:
Title
CONSIDER APPROVING A CONTRACT AMENDMENT FOR SERVICES WITH FTN FINANCIAL MAIN STREET ADVISORS TO CONTINUE TO PROVIDE INVESTMENT ADVISORY SERVICES FOR THE CITY AND ITS REPORTING ENTITIES, AND THE CARSON RECLAMATION AUTHORITY (CITY COUNCIL)
Body
I. SUMMARY
The City is currently contracted with FTN Financial LLC ("FTN") for investment advisory services relating to the City, Housing Authority, Successor Agency and Reclamation Authority. This contract was entered into on January 24, 2017, for an initial term of one year with four options to extend of one year each. At the end of the first year, the contract was extended so that it would expire on February 28, 2018, and the compensation under the contract was increased by $4,000 such that the total compensation under the Agreement is $52,000. Because FTN's contract will expire on February 28, 2018, in order to continue receive services, the contract must be extended so that it expires on January 24, 2019, and the compensation under the contract must be increased by $44,000 for a total compensation of $96,000. However, it was also determined that FTN's registration/status with the California Secretary of State as a registered foreign corporation (FTN is a Nevada LLC) authorized to do business in the State of California is currently "SOS/FTB FORFEITED." This means that FTN is not authorized to conduct business within the State of California. FTN is currently in the process of restoring its status to active.
Therefore, in order to continue to receive services from FTN and due to FTN's status with the Secretary of State as "SOS/FTB FORFEITED," the City Council is asked to approve, subject to the City Attorney's approval as to form, Amendment No. 1 to FTN's contract which extends the contract's term so that it expires on January 24, 2019, and, contingent upon FTN's re-establishment of its status as an active foreign corporation autho...
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