HomeMy WebLinkAboutAgreement A-20-422 with FHN Financial Main Street Advisors LLC.pdf1
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AGREEMENT FOR INVESTMENT ADVISORY AND REPORTING SERVICES
This agreement is dated October 20, 2020, for reference purposes only and is between the
County of Fresno, a political subdivision of the State of California (“COUNTY”), and FHN Financial Main
Street Advisors LLC, a Nevada limited liability corporation authorized to do business in California, whose
address is 10655 Park Run Drive, Suite 120, Las Vegas, NV 89144 (“CONTRACTOR”).
Recitals
A. The COUNTY Board of Supervisors (“Board”) has delegated to the COUNTY Auditor-
Controller/Treasurer-Tax Collector (“Treasurer”) authority to invest and reinvest the funds of the County of
Fresno Treasury Investment Pool (“Pool”). The Board has renewed that delegation annually but is not
required to do so.
B. Public monies of the COUNTY and certain other public agencies that are not required for
immediate needs are invested in securities as provided in the Treasurer’s Treasury Investment Policy
(“Investment Policy”). California State law requires the Treasurer to invest with the care, skill, prudence, and
diligence under the circumstances then prevailing, including but not limited to, the general economic
conditions and anticipated needs of the COUNTY and those other agencies, that a prudent person acting in
a like capacity and familiarity with those matters would use in the conduct of funds of a like character and
with like aims, to safeguard the principal and maintain the liquidity needs of the COUNTY and those other
agencies. (Cal. Gov. Code, § 53600.3.)
C. In connection with that fiduciary responsibility, the Treasurer is interested in advisory
services in relation to all aspects of investing and maintaining the Pool, as well as analytical reporting for
the Pool, which includes verification of compliance with California state law and the Investment Policy. For
that reason, the COUNTY on June 12, 2020, issued Request for Proposal No. 20-062 for Investment
Advisory and Reporting Services for the County of Fresno Treasury Investment Pool, and on June 24,
2020, issued Addendum No. 1 to that Request for Proposal (collectively, “RFP”).
D. On July 15, 2020, the CONTRACTOR responded to the RFP in writing (“Response”). The
CONTRACTOR represents that it is qualified to provide the services requested by the Treasurer in the
RFP.
E. The COUNTY, in reliance on all of the representations, warranties, and statements of fact
Agreement No. 20-422
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provided by the CONTRACTOR in the Response, desires to engage the CONTRACTOR to provide
services according to the terms of this agreement.
The parties therefore agree as follows:
1. SERVICES
CONTRACTOR agrees to provide, and COUNTY agrees to receive the services
described in the Scope of Services attached as Exhibit A to this agreement.
From time to time, the Treasurer may also request certain additional services not
provided in Exhibit A (“Optional Services”). Before authorizing Optional Services, the Treasurer will request,
and the CONTRACTOR shall provide, a written quote for the cost of the Optional Services identified by the
Treasurer. Upon written approval signed by the Treasurer to proceed with Optional Services, the
CONTRACTOR shall perform those services according to the terms of the written request, subject to the
terms of this agreement.
2. TERM
This agreement is effective on January 1, 2021, through December 31, 2023. The
term of this agreement may be extended for a maximum of two additional one-year periods upon written
approval of both parties no later than 30 days before the first day of the next 12-month extension period.
The Treasurer is authorized to execute such written approval on behalf of COUNTY based on
CONTRACTOR’s satisfactory performance. The extension of this agreement by COUNTY is not a waiver
or compromise of any default or breach of this agreement by CONTRACTOR existing at the time of the
extension whether or not known to COUNTY.
3. TERMINATION
A. Non-Allocation of Funds - The terms of this agreement, and the services to be
provided under it, are contingent on the approval of funds by the appropriating government agency. If
sufficient funds are not allocated, the services provided may be modified, or this agreement may be
terminated, by the COUNTY at any time by giving the CONTRACTOR thirty (30) days advance written
notice of termination.
B. Breach of Contract - The COUNTY may immediately suspend or terminate this
agreement in whole or in part, where in the determination of the COUNTY there is:
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1) An illegal or improper use of funds;
2) A failure to comply with any term of this agreement;
3) A substantially incorrect or incomplete report submitted to the COUNTY;
4) Improperly performed service.
In no event shall any payment by the COUNTY constitute a waiver by the COUNTY of any
breach of this agreement or any default which may then exist on the part of the CONTRACTOR. Neither
shall such payment impair or prejudice any remedy available to the COUNTY with respect to the breach or
default. The COUNTY shall have the right to demand of the CONTRACTOR the repayment to the
COUNTY of any funds disbursed to the CONTRACTOR under this agreement, which in the judgment of the
COUNTY were not expended in accordance with the terms of this agreement. The CONTRACTOR shall
promptly refund any such funds upon demand. The parties’ rights and obligations under this paragraph
survive the termination of this agreement.
C. Without Cause - Under circumstances other than those set forth above, the
COUNTY may terminate this agreement by giving the CONTRACTOR thirty (30) days advance written
notice of termination.
4. COMPENSATION/INVOICING: COUNTY agrees to pay to CONTRACTOR and
CONTRACTOR agrees to receive as compensation $64,000.00 per year for the first year, excluding
Optional Services, and $72,000.00 per year for the second and third years, excluding Optional Services. If
the term of this agreement is extended as provided in section 2 of this agreement, COUNTY agrees to pay
to CONTRACTOR and CONTRACTOR agrees to receive as compensation $72,000 for each year in which
the term of the agreement is extended, excluding Optional Services. For Optional Services, COUNTY
agrees to pay to CONTRACTOR no more than $20,000 in the aggregate over the term of this agreement,
including both extension periods under section 2 of this agreement. CONTRACTOR shall submit quarterly
invoices to the Treasurer.
In any event, total compensation paid to CONTRACTOR under this agreement shall
not exceed $372,000.00. CONTRACTOR shall bear all expenses incidental to its performance of services
under this agreement.
5. INDEPENDENT CONTRACTOR: In performance of the work, duties and obligations
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assumed by CONTRACTOR under this agreement, it is mutually understood and agreed that
CONTRACTOR, including any and all of the CONTRACTOR'S officers, agents, and employees will at all
times be acting and performing as an independent contractor, and shall act in an independent capacity and
not as an officer, agent, servant, employee, joint venturer, partner, or associate of the COUNTY.
Furthermore, COUNTY shall have no right to control or supervise or direct the manner or method by which
CONTRACTOR shall perform its work and function. However, COUNTY shall retain the right to administer
this agreement so as to verify that CONTRACTOR is performing its obligations subject to the terms of this
agreement.
CONTRACTOR and COUNTY shall comply with all applicable provisions of law and
the rules and regulations, if any, of governmental authorities having jurisdiction over matters the subject of
those laws, rules, and regulations.
Because of its status as an independent contractor, CONTRACTOR shall have
absolutely no right to employment rights and benefits available to COUNTY employees. CONTRACTOR
shall be solely liable and responsible for providing to, or on behalf of, its employees all legally-required
employee benefits. In addition, CONTRACTOR shall be solely responsible and save COUNTY harmless
from all matters relating to payment of CONTRACTOR'S employees, including compliance with Social
Security withholding and all other regulations governing such matters. It is acknowledged that during the
term of this Agreement, CONTRACTOR may be providing services to others unrelated to the COUNTY or
to this Agreement.
6. MODIFICATION: Except as provided in section 3.A., this agreement may not be
modified except by another written agreement that is signed by both parties.
7. NON-ASSIGNMENT: Neither party may assign rights or delegate its obligations under
this agreement without the prior written consent of the other party.
8. HOLD HARMLESS: CONTRACTOR agrees to indemnify, save, hold harmless, and at
COUNTY'S request, defend the COUNTY, its officers, agents, and employees from any and all costs and
expenses, damages, liabilities, claims, and losses occurring or resulting to COUNTY in connection with the
performance, or failure to perform, by CONTRACTOR, its officers, agents, or employees under this
agreement, and from any and all costs and expenses, damages, liabilities, claims, and losses occurring or
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resulting to any person, firm, or corporation who may be injured or damaged by the performance, or failure
to perform, of CONTRACTOR, its officers, agents, or employees under this agreement. The provisions of
this section 8 survive the termination of this agreement.
9. INSURANCE
Without limiting the COUNTY's right to obtain indemnification from CONTRACTOR or
any third parties, CONTRACTOR, at its sole expense, shall maintain in full force and effect, the following
insurance policies or a program of self-insurance, including but not limited to, an insurance pooling
arrangement or Joint Powers Agreement (JPA), throughout the term of the agreement:
A. Commercial General Liability
Commercial General Liability Insurance with limits of not less than Two Million Dollars ($2,000,000)
per occurrence and an annual aggregate of Four Million Dollars ($4,000,000). This policy shall be issued on
a per occurrence basis. COUNTY may require specific coverages including completed operations, products
liability, contractual liability, Explosion-Collapse-Underground, fire legal liability or any other liability
insurance deemed necessary because of the nature of this contract.
B. Automobile Liability
Comprehensive Automobile Liability Insurance with limits of not less than One Million Dollars
($1,000,000.00) per accident for bodily injury and for property damages. Coverage should include any auto
used in connection with this Agreement.
C. Professional Liability
Professional Liability Insurance with limits of not less than One Million Dollars ($1,000,000.00) per
occurrence, Three Million Dollars ($3,000,000.00) annual aggregate.
D. Worker's Compensation
A policy of Worker's Compensation insurance as may be required by the California Labor Code.
Additional Requirements Relating to Insurance
CONTRACTOR shall obtain endorsements to the Commercial General Liability insurance naming
the County of Fresno, its officers, agents, and employees, individually and collectively, as additional
insured, but only insofar as the operations under this agreement are concerned. Such coverage for
additional insured shall apply as primary insurance and any other insurance, or self-insurance, maintained
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by COUNTY, its officers, agents and employees shall be excess only and not contributing with insurance
provided under CONTRACTOR's policies described in this agreement. This insurance shall not be
cancelled or changed without a minimum of thirty (30) days advance written notice given to COUNTY.
CONTRACTOR hereby waives its right to recover from COUNTY, its officers, agents, and
employees any amounts paid by the policy of worker’s compensation insurance required by this
Agreement. CONTRACTOR is solely responsible to obtain any endorsement to such policy that may be
necessary to accomplish such waiver of subrogation, but CONTRACTOR’s waiver of subrogation under
this paragraph is effective whether or not CONTRACTOR obtains such an endorsement.
Within Thirty (30) days from the date CONTRACTOR signs and executes this agreement,
CONTRACTOR shall provide certificates of insurance and endorsement as stated above for all of the
foregoing policies, as required by this agreement, to the County of Fresno, Auditor-Controller/Treasurer
Tax-Collector, 2281 Tulare Street, Fresno, CA 93721, stating that such insurance coverages have been
obtained and are in full force; that the County of Fresno, its officers, agents and employees will not be
responsible for any premiums on the policies; that such Commercial General Liability insurance names the
County of Fresno, its officers, agents and employees, individually and collectively, as additional insured, but
only insofar as the operations under this agreement are concerned; that such coverage for additional
insured shall apply as primary insurance and any other insurance, or self-insurance, maintained by
COUNTY, its officers, agents and employees, shall be excess only and not contributing with insurance
provided under CONTRACTOR's policies described in this agreement; and that this insurance shall not be
cancelled or changed without a minimum of thirty (30) days advance, written notice given to COUNTY.
In the event CONTRACTOR fails to keep in effect at all times insurance coverage as provided in
this agreement, the COUNTY may, in addition to other remedies it may have, suspend or terminate this
agreement upon the occurrence of such event.
All policies shall be issued by admitted insurers licensed to do business in the State of California,
and such insurance shall be purchased from companies possessing a current A.M. Best, Inc. rating of A
FSC VII or better.
10. AUDITS AND INSPECTIONS: The CONTRACTOR shall at any time during business
hours, and as often as the COUNTY may deem necessary, make available to the COUNTY for examination
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all of its records and data with respect to the matters covered by this agreement. The CONTRACTOR shall,
upon request by the COUNTY, permit the COUNTY to audit and inspect all of such records and data
necessary to ensure CONTRACTOR'S compliance with the terms of this agreement.
If compensation paid under this agreement exceeds ten thousand dollars ($10,000.00),
CONTRACTOR shall be subject to the examination and audit of the Auditor General for a period of three
(3) years after final payment under this agreement (Cal. Gov. Code § 8546.7).
The CONTRACTOR’S obligations under this section 10 survive the termination of this agreement.
11. NOTICES: The persons and their addresses having authority to give and receive
notices under this agreement include the following:
COUNTY CONTRACTOR
County of Fresno
Attn: Treasurer
FHN Financial Main Street Advisors LLC
PO Box 1247 10655 Park Run Drive, Suite 120
Fresno, CA 93715 Las Vegas, NV 89144
All notices between the COUNTY and the CONTRACTOR provided for or permitted
under this agreement must be in writing and delivered either by personal service, by first-class United
States mail, by an overnight commercial courier service, or by telephonic facsimile transmission. A notice
delivered by personal service is effective upon service to the recipient. A notice delivered by first-class
United States mail is effective three COUNTY business days after deposit in the United States mail,
postage prepaid, addressed to the recipient. A notice delivered by an overnight commercial courier service
is effective one COUNTY business day after deposit with the overnight commercial courier service, delivery
fees prepaid, with delivery instructions given for next day delivery, addressed to the recipient. A notice
delivered by telephonic facsimile is effective when transmission to the recipient is completed (but, if such
transmission is completed outside of COUNTY business hours, then such delivery shall be deemed to be
effective at the next beginning of a COUNTY business day), provided that the sender maintains a machine
record of the completed transmission. For all claims arising out of or related to this agreement, nothing in
this section establishes, waives, or modifies any claims presentation requirements or procedures provided
by law, including but not limited to the Government Claims Act (Division 3.6 of Title 1 of the California
Government Code, beginning with section 810).
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12. JURISDICTION, VENUE, AND GOVERNING LAW: This agreement is signed and
performed in Fresno County, California. CONTRACTOR hereby consents to the jurisdiction of the Superior
Court of the State of California for actions arising from or related to this agreement, and, subject to the
Government Claims Act, all such actions must be brought and maintained in the Fresno County Superior
Court. The laws of the State of California govern all matters arising from or related to this agreement.
13. DISCLOSURE OF SELF-DEALING TRANSACTIONS
This provision is only applicable if the CONTRACTOR is operating as a corporation
(a for-profit or non-profit corporation) or if during the term of the agreement, the CONTRACTOR
changes its status to operate as a corporation.
Members of the CONTRACTOR’s Board of Directors shall disclose any self-dealing
transactions that they are a party to while CONTRACTOR is providing goods or performing services
under this agreement. A self-dealing transaction shall mean a transaction to which the CONTRACTOR
is a party and in which one or more of its directors has a material financial interest. Members of the
Board of Directors shall disclose any self-dealing transactions that they are a party to by completing and
signing a Self-Dealing Transaction Disclosure Form, a copy of which is attached as Exhibit B to this
agreement, and submitting it to the COUNTY prior to commencing with the self-dealing transaction or
immediately after.
14. NONDISCRIMINATION: During the performance of this agreement, CONTRACTOR
shall not unlawfully discriminate against any employee or applicant for employment, or recipient of services,
because of race, religious creed, color, national origin, ancestry, physical disability, mental disability,
medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age,
sexual orientation, military status or veteran status pursuant to all applicable State of California and Federal
statutes and regulation.
15. NO WAIVER: Payment, waiver, or discharge by COUNTY of any liability or obligation
of CONTRACTOR under this agreement on any one or more occasions is not a waiver of performance of
any continuing or other obligation of CONTRACTOR and does not prohibit enforcement by COUNTY of any
obligation on any other occasion.
16. NO THIRD-PARTY BENEFICIARIES: This agreement does not and is not intended to
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create any rights or obligations for any person or entity except for the parties to this agreement.
17. HEADINGS: The headings and section titles in this agreement are for convenience
only and are not part of this agreement.
18. SEVERABILITY: If anything in this agreement is found by a court of competent
jurisdiction to be unlawful or otherwise unenforceable, the balance of this agreement remains in effect, and
the parties shall make best efforts to replace the unlawful or unenforceable part of this agreement with
lawful and enforceable terms intended to accomplish the parties’ original intent.
19. CONTSTRUCTION: The final form of this agreement is the result of the parties’
combined efforts. If anything in this agreement is found by a court of competent jurisdiction to be
ambiguous, that ambiguity shall not be resolved by construing the terms of this agreement against either
party.
20. COUNTERPARTS: This agreement may be signed in counterparts, each of which is
an original, and all of which together constitute this agreement.
21. ENTIRE AGREEMENT: This agreement, including all of its exhibits, constitutes the
entire agreement between the CONTRACTOR and COUNTY with respect to the subject matter of this
agreement and supersedes all previous agreement negotiations, proposals, commitments, writings,
advertisements, publications, and understandings of any nature whatsoever unless expressly included in
this agreement. If there are any conflicts between the documents which constitute this agreement, those
conflicts shall be resolved by giving precedence in the following order of priority: (1) the text of this
agreement (excluding Exhibit A, Scope of Services); (2) Exhibit A, Scope of Services.
22. AUTHORIZED SIGNATURE: CONTRACTOR represents and warrants to COUNTY
that:
A. CONTRACTOR is duly authorized and empowered to sign and perform its
obligations under this agreement.
B. The individual signing this agreement on behalf of CONTRACTOR is duly
authorized to do so and their signature on this agreement legally binds CONTRACTOR to the terms of this
agreement.
The parties are signing this agreement on the date stated in the introductory paragraph.
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(Authorized Signature)
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10 FOR ACCOUNTING USE ONLY:
ORG No.:
11 Account No .:
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COUNTY OF FRESNO
Ernset Buddy Mende • Chairman of the Board
of Supervisors of the County of Fresno
ATTEST:
Bernice E . Seidel
Clerk of the Board of Supervisors
County of Fresno, State of California
>-e. .
By: '-..J\.~~
Deputy
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Exhibit A
SCOPE OF SERVICES
The words “COUNTY,” “CONTRACTOR,” “Investment Policy,” “Pool,” and “Response” have the
same meanings in this exhibit as they do in the body of the Agreement for Investment Advisory
and Reporting Services to which this exhibit is attached as Exhibit A.
The CONTRACTOR understands and acknowledges that the COUNTY has relied on
representations and statements of fact in the Response, including but not limited to those
appearing in the “Scope of Work” of the Response. CONTRACTOR expressly warrants that
those representations and statements of fact are true and that the COUNTY may rely on them.
A. Advisory Services:
1. Recommendations for portfolio strategies and optimizations.
CONTRACTOR shall communicate recommendations for portfolio strategies and
optimizations to the COUNTY’s investment team (as identified by the COUNTY).
Those recommendations may be given in writing or orally in person or by
telephone or teleconference. If the CONTRACTOR gives an oral
recommendation, the COUNTY may request written confirmation of that
recommendation, and the CONTRACTOR shall provide it promptly.
CONTRACTOR shall utilize its analysts, strategists, and economists to develop
prudent strategies to enhance returns as market conditions change.
CONTRACTOR shall monitor cash flow needs, sector relationships (i.e., agency
yields versus corporate yields), and expected interest rate changes to position
the portfolio to improve performance
2. Monitor and report on regulatory changes. CONTRACTOR shall monitor and
report to the COUNTY on regulatory changes relevant to the matters covered by
this agreement by working with various governmental industry groups, including
but not limited to the California State Treasurer’s California Debt and Investment
Advisory Commission (CDIAC).
3. Monitor and report on economic outlook and events. CONTRACTOR shall
monitor and report to the COUNTY regarding the economic outlook for and
events affecting the COUNTY. CONTRACTOR shall include the COUNTY’s
investment team in CONTRACTOR’s distribution lists for daily, weekly, monthly,
quarterly, and annual written reports in substantially the form as the samples
provided in the reports section of the Response. CONTRACTOR shall send daily
economic and market information, as well as a “Economic Weekly and Fixed
Income Weekly” in substantially the form as the samples provided in the reports
section of the Response. CONTRACTOR shall include the COUNTY’s
investment team in its monthly conference call.
4. Credit and risk analysis. CONTRACTOR shall provide credit and risk analysis
by utilizing a robust proprietary credit analysis and monitoring process to
evaluate the wherewithal of an entity to repay its principal and interest
obligations. CONTRACTOR shall provide credit strategy reports for approved
issuers in substantially the form as the sample provided in the reports section of
the Response. CONTRACTOR shall evaluate companies individually, then within
their industry sector, and then at the macroeconomic level to assess
Exhibit A
creditworthiness. The credit review process shall include analyzing the following:
general current and forecasted economic conditions; specific industry trends;
current and forecasted earnings reports; financial statements; price and volatility
trends of issuer’s fixed income and equity securities; credit default swaps (debt
insurance); news alerts, stories and releases; rating agency actions and
outlooks.
5. Assistance with cashflow development and optimization. CONTRACTOR
shall provide assistance with cash flow development and optimization, which
assistance may include but is not limited to reviewing forecasts, reviewing the
format of the cash flow model, and optimizing cash flow formulas.
CONTRACTOR shall work with COUNTY to develop a cash flow model or to fine
tune the COUNTY’s current cash flow model. CONTRACTOR shall evaluate the
COUNTY’s cash flow model and, if needed, offer suggestions for enhancement
of the model.
6. Monitor and report on Pool compliance with the California Government
Code and the Investment Policy. CONTRACTOR shall monitor and report to
COUNTY on Pool compliance with the California Government Code and the
Investment Policy by receiving daily transactions from the COUNTY and inputting
that information into CONTRACTOR’s specific compliance matrix for the
COUNTY. The compliance matrix shall be programmed with the COUNTY’s
specific guidelines.
7. Assistance with new and existing technology. CONTRACTOR shall provide
assistance with new and existing technology by first evaluating the COUNTY’s
current technology and systems, and then providing a cost/benefit analysis of
current and proposed technology changes.
8. Custom analytical tools. CONTRACTOR shall evaluate the COUNTY’s needs
and use, as appropriate, custom analytical tools (such as SymPro, Bloomberg,
Yield Book, proprietary Excel Linked Bloomberg worksheets, and the Credit
Strategies model) to enhance CONTRACTOR’s analysis and reporting to
COUNTY.
9. Assistance in working with Broker/Dealers. CONTRACTOR shall assist
COUNTY in working with broker/dealers by helping with the COUNTY’s
broker/dealer approval process and the annual review process required by the
Investment Policy.
10. Recommendations regarding the Investment Policy. CONTRACTOR shall
provide annual recommendations regarding the Investment Policy, no later than
October 1 of each year during the term of the agreement.
11. Assistance with benchmarking development and review. CONTRACTOR
shall provide assistance with benchmarking development review.
CONTRACTOR shall meet with COUNTY staff to further analyze cash flow,
portfolio turnover, and long-term sector allocation to develop the benchmarks.
CONTRACTOR shall then create a custom benchmark to compare the
performance of the COUNTY’s portfolios to the benchmark to measure the
generation of a market rate of return.
Exhibit A
B. Reporting Services:
1. Daily (compliance, markets, trends, strategies, etc.). CONTRACTOR shall
provide COUNTY with daily reporting services, including a written Daily Portfolio
Update that includes holdings, prices, ratings, yields, and compliance, and that is
in substantially the form as the sample provided in the reports section of the
Response. CONTRACTOR shall provide daily economic analysis, market trends,
and strategies in writing to COUNTY’s investment team. CONTRACTOR shall be
available to further discuss strategy and markets.
2. Weekly (market information and outlook, portfolio analysis, etc.).
CONTRACTOR shall provide COUNTY with weekly reporting services including
FHN Financial Economics Weekly, and FHN Financial Fixed Income Weekly in
substantially the form as the samples provided in the reports section of the
Response. CONTRACTOR shall also provide a Weekly Portfolio Update, similar
to the Daily Portfolio Update, but displaying any trades that were made that
week.
3. Monthly (credit analysis, portfolio performance, strategy review, etc.).
CONTRACTOR shall provide COUNTY with monthly reporting services including
a monthly conference call to discuss the markets, economy, and the County’s
portfolio, with special attention to the two primary portfolio risks, namely interest
rate risk and credit risk; asset allocation; cash flow, and non-government issuers.
CONTRACTOR shall also provide a full monthly report in substantially the form
as the sample provided in the reports section of the Response.
4. Quarterly (more in-depth reviews of Credit, Strategy, Portfolio, etc.).
CONTRACTOR shall provide more in-depth quarterly reviews of credit, strategy,
portfolio, etc., which reviews shall be similar to the full monthly report mentioned
above, but will also include a more in-depth credit review of the County’s non-
government issuers, analyzing the portfolio bond by bond, sector by sector, and
then at the portfolio level.
C. Comprehensive Quarterly Report:
1. Evaluate and value all securities quarterly. For purposes of the
comprehensive quarterly report, CONTRACTOR shall evaluate and value all
securities quarterly by using its analytical systems, specifically by reviewing each
security’s return, earnings, amortization, credit ratings changes, and other
important factors.
2. Evaluate portfolio for compliance with Investment Policy and California
Government Code. For purposes of the comprehensive quarterly report,
CONTRACTOR shall evaluate the COUNTY’s portfolio for compliance with the
Investment Policy and California Government Code by presenting the information
in a table as shown in the County’s current quarterly report, and also graphically.
Exhibit A
3. Provide market analysis and portfolio analytics. For purposes of the
comprehensive quarterly report, CONTRACTOR shall provide market analysis
and portfolio analytics that analyze the portfolio bond by bond, sector by sector,
and then at the portfolio level.
4. Customize report for distribution to Fresno County Treasury Oversight
Committee, the Board of Supervisors, and participants of the Pool.
CONTRACTOR shall provide customized quarterly reports for distribution to the
Fresno County Treasury Oversight Committee, the Board of Supervisors, and
participants of the Pool (which include the COUNTY and certain other public
agencies).
5. Provide bound hard copies and an electronic version of the report (the
report should be completed within 5 days of receiving final information
from the County). CONTRACTOR shall provide bound hard copies and an
electronic version of the quarterly report within 5 days of receiving final
information from the County.
D. Meetings:
1. Attendance in-person or via teleconferencing, at the County’s annual
Treasury Oversight Committee meeting. CONTRACTOR shall attend the
COUNTY’s annual Treasury Oversight Committee meeting, either in person or by
teleconference, as requested by the COUNTY.
2. Annual portfolio review. After the conclusion of each COUNTY fiscal year
during the term of this agreement, CONTRACTOR shall conduct an annual
portfolio review to discuss all aspects of the investment program.
Exhibit B
SELF-DEALING TRANSACTION DISCLOSURE FORM
(1) Company Board Member Information:
Name: Date:
Job Title:
(2) Company/Agency Name and Address:
(3) Disclosure (Please describe the nature of the self -dealing transaction you are a party to)
(4) Explain why this self-dealing transaction is consistent with the requirements of Corporations
Code 5233 (a)
(5) Authorized Signature
Signature: Date: