investment management; (2) knowledge and working familiarity with State and Federal laws governing and restricting the investment of public funds; (3) substantial experience providing investment management services to local public agencies whose investment policies and portfolio size are similar to those of the City; and (4) professional liability (errors and omissions) insurance and fidelity bonding in such amounts as are required by the City. Such managers shall be registered under the Investment Advisers Act of 1940. Such managers shall only be retained by written agreement with the City, and approved by the City Council. Professional service proposals shall be solicited from at least three (3) qualified persons or firms in accordance with the City's purchasing policies and procedures. A professional investment manager may only be granted discretion to purchase and sell securities if the City Treasurer exercises prudence in the selection of the manager, imposes suitable safeguards to prevent abuse in the exercise of discretion by the manager, and remains responsible for any investment decisions made by the manager with respect to the funds of the applicable local agency. M. Use of Independent Investment Advisors The City Council may retain the services of an independent investment advisor to review the investment program from time to time. The adviser will review compliance with policies and procedures, independently calculate the market value of the City's holdings, report on overall portfolio risk exposure and investment results, and make recommendations, if needed, regarding investment strategy or any aspect of the investment program. N. Competitive Bids A minimum of two offers or quotations will be obtained prior to the completion of investment transactions with authorized financial institutions. This does not apply to authorized investment pools. O. Safekeeping and Custody All investment securities purchased by the City, or by a professional investment manager for the City, shall be held in third‐party safekeeping by a custodial financial institution, as permitted under Government Code Section 53608. Securities held will be evidenced by safekeeping receipts. All security transactions shall be conducted on a delivery‐versus‐payment (DVP) basis. CITY INVESTMENT POLICY 7 of 8 COUNCIL POLICY ADOPTED 6/4/2024 133