REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 22, 2026
FROM
ENSEN MASON, Auditor-Controller/Treasurer/Tax Collector
SUBJECT
Title
Amendment to Contract with PFM Asset Management LLC for Investment Advisory Services
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 1 to Contract No. 4400020832 with PFM Asset Management LLC, for investment advisory services to the San Bernardino County Treasurer’s Office, assigning the Contract to U.S. Bancorp Asset Management, Inc., increasing the contract amount by $170,000, from $815,000 to $985,000, and extending the contract term by one year, for a total contract period of January 29, 2022 through January 28, 2028.
(Presenter: Vanessa Doyle, Assistant Auditor-Controller/Treasurer/Tax Collector, 382-7004)
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COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of additional Discretionary General Funding (Net County Cost). Sufficient appropriation and revenue have been included in the Auditor-Controller/Treasurer/Tax Collector’s (ATC) 2026-27 budget and will be included in the 2027-28 recommended budget. The cost of these services will be charged to the County Investment Pool (Pool) and prorated to all of its participating agencies, as allowed by state law. The agreement is on a fixed-fee basis and provides for several different options of service, based on ATC’s needs, and shall not exceed $170,000 for the one-year period of January 29, 2027 through January 28, 2028.
BACKGROUND INFORMATION
On January 20, 2022, as the result of Request for Proposals (RFP) No. ACT122-ACTT-4351, the Purchasing Agent approved Contract No. 4400020832 (Contract) with PFM Asset Management LLC to provide investment advisory services to the San Bernardino County Treasurer’s Office for the period of January 29, 2022, through January 28, 2027, in an annual amount not to exceed $135,000 for year one, $155,000 for year two, and $175,000 for years three through five, for a total contract cost not to exceed $815,000.
These services include strategic investment advice to supplement County staff’s recommendations, ongoing analytics and analysis of the Pool, daily compliance monitoring of the Pool, cash flow analysis, and preparation of a monthly portfolio report, as statutorily required under Government Code section 53607, that is provided to the San Bernardino County Board of Supervisors (Board), Treasury Oversight Committee, rating agencies, and others. It is desirable to have an outside registered investment advisor to provide these services to ensure that an independent compliance review of the portfolio is performed, to provide a second review of the portfolio and strategies, and to provide additional technical analysis of the Pool not available through software used by County staff.
County Policy 11-05 limits the term of a contract to five years, unless approved by the Board. Although Purchasing approved the initial Contract, the recommended amendment is being brought before the Board as it will increase the contract term by one year, for a total contract term of six years. ATC recommends approval of the amendment and the extended contract term to allow for continuity of investment advisory services currently provided to the Treasurer's Office. The one-year extension ensures no interruption to the strategic investment advice, compliance monitoring, cash flow analysis, and portfolio reporting services. ATC is currently engaged in multiple system integration projects requiring focused departmental resources, including one system under construction that, upon completion, may absorb certain technical analytics and reporting functions currently performed under this Contract while preserving the third-party independent compliance review the County requires. Given these competing priorities and the potential for future changes to the scope of services needed, ATC recommends a one-year extension of the existing Contract rather than initiating a full RFP process at this time.
In addition, the amendment will assign the Contract to U.S. Bancorp Asset Management, Inc. (USBAM). In July 2024, PFM informed the County that it was consolidating client accounts under its parent company, USBAM, which is a registered investment adviser with the Securities and Exchange Commission. Upon learning of the consolidation, a separate agreement between PFM and San Bernardino County Flood Control District was amended to reflect the change; however, due to an oversight, this Contract was not presented to Purchasing for amendment. The oversight has not impacted services provided to the County. PFM will continue to serve the public sector as a division of USBAM. The recommended amendment recognizes the consolidation and assigns the Contract to USBAM.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Kristina Robb, Deputy County Counsel, 387-5455) on July 27, 2026; Purchasing (Jessica Barajas, Supervising Buyer, 387-2065) on July 23, 2026; and County Finance and Administration (Celia McDonald, Administrative Analyst, 387-4286) on August 19, 2026.