Investment Management and Advisory Services

CITY OF ELK GROVE
Request for Proposals
For
Investment Management and Advisory Services
City Clerk's Office
City of Elk Grove
8401 Laguna Palms Way
Elk Grove, CA 95758
Proposals Due by 2pm on August 18, 2026

Introduction:
The City of Elk Grove (City) is accepting proposals from qualified Consultants (Consultant(s)) for
Investment Management and Advisory Services in accordance with the included specifications,
terms, and conditions shown in this Request for Proposals (RFP). Prospective respondents are
advised to read this information over carefully prior to submitting a proposal.
Electronic Submission:
Submissions must be submitted electronically in pdf form and emailed to Office of the City Clerk
cityclerk@elkgrove.gov by 2:00 p.m. on Tuesday, August 18, 2026. Submissions must be clearly
marked as Investment Management and Advisory Services. Submittals in pdf format must be fully
ADA compliant. Large files may be sent using a cloud-based system such as Dropbox. Consultants
shall be responsible for ensuring that proposals submitted electronically are received by the City
Clerk prior to the deadline. Proposals that are not received prior to the deadline shall not be
considered by the City, even if the late submission is due to a technical or other error, including,
without limitation, the City's inability to open or access the electronic file. If the proposing Consultant
does not receive confirmation from the City Clerk that the proposal has been received, Consultant
should assume the transmission fails and either resubmit or arrange for another method of delivery.
Consultants are also encouraged to contact the City Clerk to confirm receipt of their proposal prior
to the deadline. Proposals shall not be accepted by fax.
Questions regarding this RFP are to be directed by e-mail to Marsha Ley, Accounting Manager,
mley@elkgrove.gov and Eric Swensen, Senior Accountant at eswensen@elkgrove.gov. Such
contact shall be for clarification purposes only. The City must receive all questions no later than
July 10, 2026. Material changes, if any, to the scope of services or proposal procedures shall only
be transmitted by written addendum and posted to the City web site. Addendums and answers to
submitted questions will be available via the City of Elk Grove web site under "Notice" for the RFP
announcement.
Schedule:
Request for Proposals Issued June 22,2026
Questions Due July 10, 2026
Responses to Questions Distributed July 24, 2026
Proposal Date August 18, 2026
Interview Selection September 9, 2026
Selection / Contract October 14, 2026
Commencement Date November 19, 2026
Number of Selected Investment Advisors and Contract Term:
The City reserves the right to select one or more qualified investment advisory firms under this
Request for Proposals. While it is anticipated that a single firm may be selected, the City may, at
its sole discretion, award contracts to two (2) investment advisors to best meet its operational and
portfolio management needs. Any resulting contract(s) will be for an initial term of five (5) years.
The City may, at its discretion and subject to satisfactory performance, extend or renew the
agreement in accordance with the terms outlined in the final contract.
Late Proposals:
Proposals arriving after the specified date and time shall not be considered, nor shall late proposals
be opened. Each Consultant assumes responsibility for timely submission of its proposal.
Withdrawal or Modifications of Proposals:
Any proposal may be withdrawn or modified by a written request signed by the Consultant and

received by the City Clerk prior to the final time and date for the receipt of proposals. Once the
deadline is past, Consultants are obligated to fulfill the terms of their proposal.
Proposal Acceptance and Rejection:
The City reserves the right to accept any proposal, to reject any and all proposals, and to call for
new proposals, or dispense with the proposal process in accordance with the Elk Grove Municipal
Code.
Proposal Evaluation and Award:
Evaluation shall be made based on the criteria noted in Attachment A: Evaluation and Selection
Criteria. A contract may be awarded to the responsible Consultant who best meets the City's needs
by demonstrating the competence and professional qualifications necessary for the satisfactory
performance of the required services, and shall not necessarily be based on the lowest priced
proposal, except as otherwise provided by law, taking into consideration adherence to the included
specifications. A contract may be awarded to the next responsible Consultant if the successful
Consultant refuses or fails to execute the contract. All Consultants that were not selected by the
City shall be notified in writing. Nothing herein shall obligate the City to award a contract to any
responding Consultant. Any contract awarded will be non-exclusive, and the City reserves the right
to seek services from other sources, in the City's sole discretion.
Register with the California Secretary of State:
Unless Consultant is a sole proprietorship, Consultant must be registered and in good standing
with the California Secretary of State within 14 days following notification of the City's intent to
award a contract to Consultant and prior to execution of a final contract. Failure to timely register
with the Secretary of State may result in the City awarding the contract to another
Consultant. Additional information regarding the registration process may be found on the
Secretary of State's website at: https://businesssearch.sos.ca.gov/.
Disclosure of Submitted Materials:
After selection and execution of the contract(s), (or prior thereto if required by law) all information
and materials provided in each submittal received is subject to disclosure through a public records
request pursuant to the California Public Records Act, or otherwise as may be required by law. The
City, in its sole discretion, may release any submitted materials, regardless of whether such
materials are marked by respondents as confidential or otherwise as protected.
Waiver of Irregularities:
The City retains the right, in its sole discretion, to waive any irregularities in proposals that do not
comply with the strict requirements of this RFP, and the City reserves the right to award a contract
to a Consultant submitting any such non-compliant proposal, all in the City's sole discretion.
Validity of Pricing:
Consultants are required to provide a fee structure including the hourly rate of the principals to be
assigned to the matter, and proposed cost (line item descriptions and pricing), and expense
reimbursements levels, and total costs. No cost increases shall be passed onto the City after the
proposal has been submitted. No attempt shall be made to tie any item or items contained in this
RFP with any other business with the City; each proposal must stand on its own.
No Guarantee of Usage:
Any quantities listed in this RFP are estimated or projected and are provided for tabulation and
information purposes only. No guarantee of quantities is given or implied by the City. Consultant
must furnish the City's needs as they arise.
Demonstrations:
When required, the City may request full demonstrations prior to award. When such
demonstrations are requested, the Consultant shall respond promptly and arrange a demonstration
at a convenient location. Failure to provide a demonstration as specified by the City may result in

rejection of a proposal.
Use of Other Governmental Contracts:
The City reserves the right to reject any part or all of any proposals received and utilize other
available governmental contracts.
Qualification/Inspection:
Proposals will only be considered from Consultants normally engaged in providing the types of
services specified herein. By responding to this RFP, the Consultant consents to the City's right to
inspect the Consultant's facilities, personnel, and organization at any time, or to take any other
action necessary to determine Consultant's ability to perform. The City reserves the right to reject
proposals where evidence or evaluation is determined to indicate inability to perform. The City
reserves the right to interview any or all responding Consultants and/or to award a contract without
conducting interviews.
Other Governmental Entities:
If the Consultant is awarded a contract as a result of this RFP, the Consultant shall, if the Consultant
has sufficient capacity, provide to other governmental agencies, so requesting, the services
awarded in accordance with the terms and conditions of the RFP.
Payment Terms:
Payment shall be made as set forth in the contract attached hereto as Attachment B. In submitting
proposals under these specifications, Consultants should take into account all discounts, both trade
and time, allowed in accordance with the payment terms.
Performance:
It is the intention of the City to acquire services as specified herein from a Consultant that will give
prompt and convenient service.
Term of Contract:
The term of the contract will be for a specific period of time, commencing upon execution. The City
anticipates the contract to be for a term of five years. The City reserves the right to set the term for
a period deemed to be in the best interest of the City, and terminate the contract as set forth therein.
Amendments:
If, in the course of the performance of the contract, Consultant or the City proposes changes to the
services provided, and informal consultation with the other party indicates that a change in the
terms and conditions of the contract may be warranted, Consultant or the City may request a
change in the contract. The parties to the contract will meet to discuss and negotiate the required
documents. Upon completion of those negotiations, the negotiated documents will be submitted to
the City for approval. Upon approval by the City, an amendment to the contract will be approved
by all parties for the change to be implemented. An amendment shall not render ineffective or
invalidate any unaffected portions of the Contract. Nothing in this section obligates the City to
agree to any change order or other amendment, and the City may withhold such agreement in its
sole discretion.
Service and support:
Consultants shall explain how all on-going service and support shall be handled by the Consultant
and the City of Elk Grove.
Records:
The Consultant shall maintain complete and accurate records with respect to labor costs, material
expenses, and other such information required by City that relates to the performance of services
under the contract. The Consultant shall maintain adequate records of services provided in

sufficient detail to permit an evaluation of the services. All such records shall be maintained in
accordance with generally accepted accounting principles and shall be clearly identified and readily
accessible and in a form acceptable to the City, which the City may specify and change from time
to time. The Consultant shall provide free access to the representatives of City or its designees, at
reasonable times, to such books and records, shall give City the right to examine and audit said
books and records, shall permit City to make transcripts there from as necessary, and shall allow
inspection of all work, data, documents, proceedings, and activities related to the contract. Such
records, together with supporting documents, shall be maintained for City's inspection for a period
of at least three (3) years after receipt of final payment.
(See next page for Guidelines for Proposal

Guidelines for Proposal
The following guidelines are provided for standardizing the preparation and submission of proposals. The intent is
to assist respondents in the preparation of their submissions and to assist the City by simplifying the review process
providing standards for comparison of submissions.
Statements submitted in response to this RFP shall include a complete response to the requirements in this section
in the order presented. Statements should be a straightforward delineation of the respondent's capability to satisfy
the intent and requirements of this RFP, and should not contain redundancies and conflicting statements.
Proposals shall be printed double sided, submitted on 8-1/2" x 11" recycled paper, with easy to read font size and
style. Pages shall be numbered, tabbed, and bound (spiral / comb / three ring binder). Tabbed dividers should
separate and identify the response items described below.
Proposals shall contain the following information in the order listed:
1. Introductory letter
The introductory letter should be addressed to:
Marsha Ley
Accounting Manager
City of Elk Grove
8401 Laguna Palms Way
Elk Grove, CA 95758
The letter shall include the Consultant's name submitting the proposal, their mailing address, telephone number,
and the name of the individual who will be the primary contract person. The letter shall address the Consultant's
understanding of the project based on this RFP and any other information the Consultant has gathered. Include
a statement discussing the Consultant's interest and qualifications for this type of work. A principal of the firm
authorized to legally bind the firm shall sign the letter.
2. Table of Contents
The Consultant shall insert a comprehensive table of contents denoting sections three through nine of the
proposal as indicated below.
3. Qualifications and Experience
Describe the Consultant's capability for actually undertaking and performing the work, including any
professional licenses and certificates held by the Consultant. List types and locations of similar work performed
by the Consultant in the last five (5) years that best characterizes the quality and past performance. List the
name, address, telephone number, and email of references from at least five (5) current clients similar in size
and scope to the City. Include a brief description of the work provided for each reference. California municipal,
county or special districts are preferred. References may be contacted as part of the selection Process.
Include in this section, responses to A, B, C and D in section 5 of the Scope of Work.
4. Work Plan
The work plan must state the Consultant's ability to meet each specification as outlined in this document. The
work plan should address the items of work as described in this RFP. The plan should be simple, easy to read
and follow, and address and satisfy the objectives and specifications as listed in the Scope of Work in this RFP.
Include in this section, responses to E and F in section 5 of the Scope of Work.
5. Conflict of Interest Statement
Any activities or relationships of the Consultant that might create a conflict of interest for the Consultant or the
City, and, if such activities or relationships exist, a description of the facts, legal implications, and possible
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effects sufficient to permit the City to appreciate the significance of the conflict and to grant any conflict waiver,
if appropriate and necessary.
6. Supportive Information/References
This section may include graphs, charts, photos, resumes, references, and any other relevant information in
support of the Consultant's qualifications. Include in this section, responses to G in section 5 of the Scope of
Work.
7. Fee
This section should include the cost for requested services outlined in the Scope of Work. Consultants shall
clearly describe and outline fees for the services to be provided for each task of the project. Fees should be
linked to the tasks of the work plan as provided in Section 4, Work Plan. Upon completion of each task, the
Consultant will notify the City and request payment for the products and services by submitting an invoice and
a brief description of work performed during the billing period. Upon receipt of the invoice, the City will review
in a timely manner the products and services noted, verify completion, and authorize payment. No cost
increases shall be passed onto the City after the proposal has been submitted. No attempt shall be made to tie
any item or items contained in this RFP with any other business with the City. Include in this section, response
to H in section 5 of the Scope of Work.
8. Secretary of State
Consultant shall acknowledge their understanding of needing to be registered with the California Secretary of
State as noted in the RFP language above.
9. Professional Services Contract:
Attached to the RFP (Attachment B) is a copy of the City's standard Professional Services Contract (Contract).
The City's standard Contract may be modified, in the City's sole discretion, to address the specific provisions
of this RFP and Consultants should note that any specifications or other requirements specific to this RFP shall
be included in the Contract and Contract's exhibits following an award of the Contract. Please review the
Contract carefully and note in your proposal any exceptions or alterations to the Contract. Alterations or
changes to the Contract that are not in the Consultant's response shall not be allowed after the selection of the
Consultant. This includes alterations, exceptions, or changes to the insurance and indemnity provisions. By
requiring these requests up front, the City can compare all respondents on an equal basis. However, the City
reserves the right, in its sole discretion, to accept or reject any and all proposed changes to the City's standard
Contract. For reference, the insurance amounts that appear in the attached Contract are summarized below.
TYPE SINGLE LIMIT / AGGREGATE ENDORSEMENTS***
OCCURRENCE
General Liability $1,000,000 $1,000,000 Additional Insured
Auto Liability Non-Commercial
Acceptable
Work Comp Statutory Waiver of Subrogation
Employer's Liability $1,000,000 each
Professional Liability $5,000,000 $5,000,000 Requires one-year
coverage past contract
expiration
Crime Insurance, $5,000,000 $5,000,000 Loss Payee
Employee Dishonesty,
or Fidelity Bond
***Must be actual endorsements. Typed statements on Certificates of Liability are unacceptable. This is a summary only. Please
refer to the insurance section and/or exhibit of this Agreement for specific requirements.
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SCOPE OF WORK
1. Background
The City of Elk Grove (City) is soliciting proposals from investment advisory firms for portfolio management
services. The City's Treasurer is currently handling the day-to-day administration of investments. The City's
current managed portfolio is $430M but the total city portfolio is $692M. We can have more managed by the advisor
in the future.
The City incorporated under California law on July 1, 2000, as a general-law city, is located 15 miles south of
Sacramento, California, with a population of approximately 182,842. The City operates under the City
Council/Manager form of City government. The City Council is a five-member body with a Mayor and four Council
Members. The elected mayor currently serves a two-year term and is elected citywide (at-large). The four
Council Member positions serve a four-year term.
2. Investment Program
The funds are invested pursuant to the objectives and requirements set forth in the City's investment policy
(Attachment C). The City's investment policy has three objectives: (1) safety of principal is the foremost objective
of the investment program. Investments of the City shall be undertaken in a manner which seeks to ensure the
preservation of principal in the overall portfolio (2) the City's investment portfolio shall remain sufficiently liquid to
enable the City to meet all operating requirements which might be reasonably anticipated. This goal shall be
achieved by maintaining a prudent portion of the City's portfolio in liquid, short-term instruments which can readily
be converted to cash if necessary, and (3) the City's investment portfolio shall be designed with the objective of
attaining a sound rate of return throughout budgetary and economic cycles, commensurate with the City's
investment risk constraints and the cash flow characteristics of the portfolio. In accordance with California
Government Code Section 53607, the Elk Grove City Council has authorized the City Treasurer to invest on behalf
of the City, to manage the City's investment program consistent with this investment policy, and to maintain a system
of internal controls to regulate the activities of subordinate officials. It is the City's full intent, at the time of purchase,
to hold all investments until maturity to ensure the return of all invested principal dollars. However, the City will
explore the added value of not holding investments until maturity if there is a strong benefit and only if the City is
able to adhere to the first two objectives. Responsibility of the investment program is assigned to the Treasurer.
While the City may choose to also independently invest City funds, this approach may change over time. Attachment
D contains the City's investment report for the month of June 2026.
3. Purpose
The City is seeking proposals from qualified firms to:
a. Provide discretionary investment advisory services to help manage the City's current managed
investment portfolio, currently valued at approximately $430M.
b. As deemed by the Treasurer, the amount of the portfolio that will be managed by the City and by the firm
may be modified over time.
4. Scope
Specific services, although not all-inclusive, are to be performed as follows:
a. Assist the City with maturity analysis
b. Provide credit analysis of investment instruments in portfolio of the investment firms portfolio
c. Provide monthly, quarterly and annual reporting on all managed funds
d. Attend periodic Audit Committee meetings
e. Evaluate market risk and develop strategies that adhere to the investment policy's three objectives
f. Provide assurance of portfolio compliance with applicable policies, laws, the City's investment
strategy, and the City's Investment Policy
g. Establish an appropriate performance benchmark for the funds they are investing
h. Full understanding of Investment Policy
i. Ensure portfolio structure matches City objectives
j. Provide the City with analysis and reasoning for investment selection on a quarterly basis
k. Coordinate investment/maturity strategy to complement City investments, whether managed by
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Consultant or by the City.
5. Proposal Submission Requirements and Response Format
The Consultant is responsible for preparing an effective, clear, and concise proposal. In order to be considered for
selection, vendors must submit a complete response to this Request for Proposal that includes the following
mandatory information and/or requirements. Responses must state acceptance of, modifications or additions to,
or a statement of the inability to provide, the listed services. Failure to provide any of the information requested
below may be cause for the proposal to be rejected. For purposes of this RFP, "you" and "your" refer to
Consultant's firm.
A. Firm Background and Organization
1) Describe your organization, date founded, and ownership of your firm. Has your firm experienced a
material change in organizational structure, ownership or management during the past three years
and, if so, please describe?
2) Describe any other business affiliations. Describe your firm's policy on soft dollars.
3) Describe the firm's sources of revenue, categorized by retail and institutional accounts.
4) Is your firm a registered investment advisor under the Investment Advisor's Act of 1940 as amended?
5) Describe any Securities and Exchange Commission ("SEC"), Financial Industry Regulatory Authority
("FINRA"), or regulatory censure or litigation involving your firm and/or its employees within the past
three years.
6) Did you, or will you, pay a finder's fee to any third party for business related to this account? Identify
the recipient(s) of any fee.
7) Outline the errors and omissions (professional liability) and fidelity bond coverage your firm carries.
Provide a valid, current Certificate of Insurance.
8) If you are hired, will your firm serve as a fiduciary in your role as an investment adviser to the City while
providing the investment management services the City is seeking? If no, describe your objections or
limitations.
9) Does you firm provide education for public agencies? If yes, does it qualify for Continuing Professional
Education (CPE)?
B. Experience
1) Describe your firm's experience in managing fixed income portfolios for public funds and governmental
entities.
2) What is your firm's experience in developing policies and portfolio management guidelines for
government portfolios?
3) How is your firm compensated for the services it provides? Does your firm act as a broker/dealer, or
receive any other form of additional compensation (including soft dollars) for the client transactions
aside from the direct fee paid by clients?
4) Provide the number and types of accounts, total asset value, and composition of portfolios currently
being managed by your firm.
C. Personnel
1) Identify and provide background information on the key person or personnel (portfolio managers,
analysts, and researchers) who take the primary and secondary active role(s) in the administration and
management of the firm, and also for those that will be assigned to provide services to the City in the
event a contract is awarded to your firm.
2) Identify the investment professionals (portfolio managers, analysts, and researchers) employed by
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your firm, by classification, and specify the average number of accounts handled by portfolio managers.
Are there any established limits on accounts or assets under management?
3) Provide resumes and biographical information on key investment professionals (portfolio managers,
analysts, and researchers) that will be directly involved in the decision-making process for the City's
portfolio. Include the number of years at your firm, total years of experience, and professional licenses
and designations. Include the number of accounts managed and any limits.
4) Describe your firm's training and education efforts to keep portfolio managers, analysts, and
researchers informed of developments relevant to government investment managers.
5) Has there been any turnover of professional staff in the firm in the last three years who were assigned
to public sector clients?
D. Assets Under Management
1) Summarize your institutional investment assets under management by category as shown below for
your latest reporting period:
Number of Number of
Governmental Non- Non-
Governmental
Clients Governmental Governmental
Clients
Operating/Bond Funds $ $
Pension Funds $ $
Foundations/Endowments $ $
Equity Funds $ $
Other (specify) $ $
Total $ $
2) Summarize your assets under management (institutional only) over the past five years and average
assets per client.
3) Provide relevant performance statistics on a comparable portfolio and compare with industry averages
or benchmarks for the last one, three, five, ten year periods and/or since inception. Note whether these
performance statistics are reported based on GIPS (Global Investment Performance Standards)
formerly known as AIMR (Association for Investment Management and Research).
4) How many accounts have you gained in the last 12 months? How many accounts have been lost in
the last 12 months and why?
E. Investment Management Approach and Discipline
1) Briefly describe your firm's investment management philosophy, including your approach to managing
governmental portfolios.
2) How frequently do you formulate and review fixed income strategy? How is that carried out and who is
involved?
3) What are the primary strategies for adding value to portfolios (e.g., market timing, credit research,
trading)?
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