2-Attachment 2 - Scope of Work.docx

Attachment 2 – Scope of Work

A. Background

It is the policy of the City to invest public funds in accordance with principles of sound treasury management and in compliance with state and local laws, regulations, and other policies governing the investment of public funds, specifically, according to the terms and conditions of the Utah State Money Management Act of 1974 and the Rules of the State Money Management Council as currently amended (the “Act”), and the City’s own written investment policy.

Furthermore, the following investment objectives stated in order of priority must be met when depositing and investing public funds: legality, safety of principal; need for liquidity; maximum yield on investments consistent with the first three objectives; and maturity of investments, so that the maturity date of the investment does not exceed the anticipated date of the expenditure of funds or as required by the Act.

The awarded Offeror shall deliver all securities to the City Treasurer or to the City Treasurer’s safekeeping bank or to the City’s designated trust company to be held in safekeeping by that custodian. The City Treasurer will have custody of all securities purchased or held and all evidence of deposits and investments of public funds.

The City maintains a cash pool and an investment pool that are available for use by all funds. Also, certain investments are separately held by several of the City’s funds. The Cash Management program within the Treasurer’s Office regularly interacts with every department in the City. All operating cash and bond proceeds are invested for the Airport, Public Utilities, Community Reinvestment Agency (CRA), and Library. As of February 28,2026, the City’s entire investment portfolio totaled approximately $2.2 billion. Of this amount, approximately $600 million is being held by trustees in the form of bond proceeds and sinking fund payments with investment direction given by the City Treasurer in accordance with each bond indenture’s permitted investments section.

The awarded Offeror will be responsible for researching and recommending investments that meet the criteria of the Utah State Money Management Act. The City will reserve the right to continue to manage all or a portion of its own investment portfolio.

B. Scope of Work

The awarded Offeror will have authority to conduct investment transactions on behalf of the City Treasurer as permitted by Utah State statute, the Rules of the Utah Money Management Council, and City ordinance and/or policy.

1. General

a. City hereby appoints the awarded Offeror as the investment adviser of those assets designated by City (the “Advisory Account”).

b. The awarded Offeror shall invest the assets of the Advisory Account as directed by City in accordance with the written investment objectives, policies and restrictions of City. City shall provide awarded Offeror with an initial investment policy or list of authorized investments.

c. The awarded Offeror shall provide City, on a monthly basis, an electronic report detailing transactions for the period and an inventory of the investments in the Advisory Account. The awarded Offeror, in the maintenance of records, shall not assume responsibility for the accuracy of information furnished by City or by any other agency or person other than the awarded Offeror or its employees. The monthly reports shall at a minimum include return on investment percentage and return on investment net fees.

d. Decisions concerning investments subject to this Agreement shall be made by City Treasurer or their authorized representative(s) with the assistance of the awarded Offeror. The approval of City shall be required before the execution of any investment transaction for the Advisory Account. The awarded Offeror, when expressly instructed by City, shall buy or sell securities and place orders for the execution of such transactions with or through such brokers, dealers, or issuers as the awarded Offeror may select, subject to approval by City and in compliance with the most recent lists of Issuers of securities authorized by Section 51-7-11(3), Qualified Depositaries, Certified Investment Advisers and/or Certified agents of dealers included in the current State list. Such brokers, dealers, or issuers shall be certified or qualified dealers, and shall purchase only the types of securities listed in sections 51-7-11 and 51-7-13 of the Utah State Money Management Act.

e. City shall notify the awarded Offeror promptly in writing of any modifications to the investment objectives, policies, or restrictions applicable to the Advisory Account. City shall notify the awarded Offeror promptly of any withdrawal of securities from the Advisory Account initiated by City.

f. When placing orders for the execution of transactions for the Advisory Account, the awarded Offeror shall take into consideration not only the available prices but also other relevant factors such as, without limitation, execution capabilities and safekeeping arrangements. The awarded Offeror shall exercise good faith in obtaining the best price and execution for each transaction for the Advisory Account.

g. The awarded Offeror shall not have custody or possession of the assets of the Advisory Account of City. City shall select and authorize a custodian bank to hold the assets of the Advisory Account in safekeeping for City. City shall be solely responsible for all fees involved with any custodial arrangements.

It is understood that the awarded Offeror performs investment advisory services for other clients. City agrees that the awarded Offeror may give advice and take action with respect to any of its other clients that may differ from advice given, or the timing or nature of action taken, with respect to the Advisory Account.

h. City hereby acknowledges receipt of the awarded Offeror’s Brochure (U.S. Securities and Exchange Commission [SEC] Form ADV Part II) at least 48 hours before to the date of execution of this Agreement in compliance with Rule 204-3 of the Investment Advisers Act of 1940 (“the Act”). The awarded Offeror shall provide City with a copy of each annual renewal of SEC Form ADV Part II.

2. Responsibilities of the Awarded Offeror

The awarded Offeror shall conduct investment transactions on behalf of City as permitted by Utah State statute, Rules of the Utah Money Management Council, and City ordinance and/or policy. The awarded Offeror shall be responsible for researching and finding investments that meet the criteria of the Utah State Money Management Act. Upon authorization of City Treasurer or their authorized representative(s), the awarded Offeror shall purchase investments on behalf of City. The responsibilities of the awarded Offeror include, but shall not be limited to, the following.

a. The awarded Offeror shall be responsible for researching and recommending investments and shall have authority to conduct investment transactions on behalf of the City Treasurer as permitted by Utah State statute, Rules of the Utah Money Management Council, and City ordinance and/or policy. City may continue to manage all or a portion of its own investment portfolio. The awarded Offeror assumes no responsibility or liability for any City investments for which the awarded Offeror has not been appointed as Investment Adviser.

b. The awarded Offeror shall meet the following investment objectives, stated in order of priority, when depositing and investing City funds:

i. Legality;

ii. Safety of principal;

iii. Need for liquidity;

iv. Maximum yield on investments consistent with the first three objectives; and

v. Maturity of investments, so that the maturity date of the investment does not exceed the anticipated date of the expenditure of funds.

c. The awarded Offeror shall deliver all securities to the City Treasurer or to the City Treasurer’s safekeeping bank or to City’s designated trust company to be held in safekeeping by that custodian. The City Treasurer shall have custody of all securities purchased or held and all evidence of deposits and investments of public funds.

d. The awarded Offeror shall assist City in designing and implementing a customized investment management program. The awarded Offeror’s responsibilities include, but shall not be limited to, the following.

i. Active Investment Management

1. Provide full-time management of the portion of the investment portfolio under management.

2. Develop and implement active investment strategies for the portion of the portfolio under management designed to enhance portfolio performance under current and future market conditions within the parameters of the investment policy and cash flow needs.

3. Provide technical and fundamental market research, including yield curve analysis.

ii. Trade Execution

1. Obtain and document competitive prices for securities transactions.

2. Assist with trade settlements.

iii. Management Information

1. Provide monthly investment reports for the portfolio detailing securities holdings portfolio composition, portfolio return and weighted average maturity, and daily transaction activity.

2. Provide separate portfolio performance reports on a quarterly basis. These reports should include but not limited to economic updates, sector analyses, financial market updates, market or other risk analysis, liquidity, and portfolio structure.

3. Reports shall be accessible online within five (5) business days of month’s end.

4. Transaction detail of investment activity will be available for download in excel format

5. GAAP Financial Statements reports should be available and consist of balance sheet, income statement, and statement of cash flows by account by month and year.

6. A report should be available to outline the average money market value on all money market funds.

iv. Review and Evaluation Services

1. Perform due diligence reviews of current and proposed broker/dealers.

2. Monitor the creditworthiness of the investments in the portfolio.

3. Evaluate safekeeping and custodial procedures and agreements.

4. Review and update City's investment policy as needed.

5. Work with City to develop and update cash flow projections, including interest earning projections.

6. Provide reviews of the investment program and portfolio performance to City upon request.

3. The awarded Offeror shall provide qualified personnel to provide services to City under this Agreement. Certain key members of the awarded Offeror’s team that will provide the services to City are identified below. The awarded Offeror shall not of its own volition change or replace such key personnel for the provision of services hereunder without first consulting with City.