CITY OF PITTSBURG
AMENDED AGENDA
FEBRUARY 20, 2024
CITY HALL COUNCIL CHAMBER
65 CIVIC AVENUE, PITTSBURG, CA
CLOSED SESSION
6:00 P.M.
REGULAR MEETING
7:00 P.M.
CITY COUNCIL
PITTSBURG ARTS AND COMMUNITY FOUNDATION
PITTSBURG POWER COMPANY
SOUTHWEST PITTSBURG GEOLOGIC HAZARD ABATEMENT DISTRICT II
SUCCESSOR AGENCY
PRESIDING
Juan Antonio Banales, Mayor/Chair
Jelani Killings, Vice- Mayor/Chair
Dionne Adams, Council Member/Board Member
Angelica Lopez, Council Member/Board Member
Shanelle Scales-Preston, Council Member/Board Member
FOR HOUSING AUTHORITY:
S.L. Floyd, Housing Authority Member
Annie Hill Herring, Housing Authority Member
-------------------------------------------------------------------------------------------------------------------------- Pittsburg City Council regular meetings are held the first and third Mondays of each month at 7:00 p.m. The Housing Authority meets in conjunction with the City Council on the third Monday of each month. The Pittsburg City Council meets regularly in the Council Chamber at 65 Civic Avenue, unless otherwise noted above. The City Council also sits as the Board of Directors of several other City agencies. The stipends for all agency members conform to state statutes governing compensation amounts.
All other Agencies meet on an as needed basis and will be listed above if applicable. Copies of the open session agenda packets, which are distributed to the City Council, are on file in the office of the City Clerk, 65 Civic Avenue, Pittsburg, California, and are available for public inspection, beginning 72 hours in advance, during normal business hours (8:00 a.m. – 5:00 p.m., Monday through Friday, except from noon to 1:00 p.m. and City holidays). The agenda and reports are also located on the City’s website at www.pittsburgca.gov. Additionally, if any reports or documents, which are public records, are distributed to the City Council less than 72 hours before the meeting, those reports and documents will also be available for public inspection in the City Clerk’s Office and on the day of the meeting in the Council Chamber at the public counter area below the dais. 1 AUDIENCE REMARKS
6:00 PM - CONVENE IN CLOSED SESSION
1. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Section 54956.9(d)(2) Number of cases: one
7:00 PM - CONVENE IN OPEN SESSION FOR REGULAR MEETING
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
PRESENTATIONS
2. Quarterly Overview of Use of Force by Law Enforcement Personnel and Overview of Internal Affairs Investigations
CITY MANAGER REPORTS/REMARKS
The City Manager may make brief announcements or informal comments at this time and brief the Council on items of interest. (No Action Required)
PUBLIC COMMENTS
Members of the audience who wish to address the City Council or Agency Boards on issues that are not scheduled for the agenda and on any items listed as part of the Consent Calendar should complete a Speaker's Card available at the dais. Please read the card carefully in order to fill out the card properly.
Submit the completed card to the City Clerk before the item is called, preferably before the meeting begins. Individuals will be given three minutes to address the Council unless additional time is allowed as provided for spokespersons. Prior to speaking, each member of the public shall state their name and business and City of residence in a clear and audible tone of voice. (No Action Required)
COMMITTEE REPORTS
Council Members may make a report on their committee assignments at this time. (see attached list of adhoc committees and other public agencies in which Council members particiapte). (No Action Required)
CONSIDERATION
3. Adoption of a City Council Minute Order to Appoint Candidates to the Planning Commission
There are currently two (2) vacancies and 2 seats are due to expire on February 28, 2024 on the Planning Commission. Therefore, a total of 4 seats are open for the 4-year term beginning March 1, 2024 through February 28, 2028.
CONFLICT OF INTEREST STATEMENT
City Council/Agency Members may make any conflict of interest declarations pertaining to Consent Calendar items at this time.
2 COMBINED CITY COUNCIL, PITTSBURG ARTS AND COMMUNITY FOUNDATION,
PITTSBURG POWER COMPANY, SUCCESSOR AGENCY AND SOUTHWEST
PITTSBURG GHAD II CONSENT CALENDAR
4. Receive and File the Treasurer’s Report for the Quarter Ending December 31, 2023
Attached is the Treasurer’s Report for the fiscal quarter ending December 31, 2023. The report includes the combined detailed information of the City and the Successor Agency’s (Agency) investments, which are compliant with the City’s and Agency’s Investment Policies.
5. Adoption of a City Council Resolution Authorizing Execution of Second Amendment to Consultant Agreement for Project 8336-Americana Park Bypass Channel
Project 8336-Americana Park Bypass Channel (the “Project”) requires a biologist to perform construction monitoring services to satisfy the environmental agency requirements. If approved, this resolution will authorize execution of the Second Amendment to the Consultant Services Agreement with SWAIM Biological Inc. for $76,550 to include construction monitoring services.
6. Adoption of a City Council Resolution Adopting Caltrans Local Assistance Procedure Manual Chapter 10: Consultant Selection
For all California Department of Transportation (Caltrans) state and federally funded projects, there are standards established when administering and procuring Architectural and Engineering (A&E) contracts. The Local Assistance and Procedures Manual (LAPM), Chapter 10: Consultant Selection presents policies and procedures to be utilized by local agencies to follow applicable laws and regulations. If adopted, this resolution will accept the Caltrans LAPM Chapter 10: Consultant selection as part of consultant procurement practices.
7. Adoption of a City Council Resolution Authorizing the Execution of First Amendment to Consulting Services Agreement Between the City of Pittsburg and RCH Group, Planning & Environmental Consulting, Inc.
The proposed item would authorize the City Manager to execute the First Amendment to the Consulting Services Agreement with RCH Group, Planning & Environtmental Consulting, Inc. for preparation of CEQA Review and related services for the “Oakstone Northern California Expansion Project” at the Linde plant located at 2000 Loveridge Road, Pittsburg, CA 94565 (AP-23-0046).
The previous contract for CEQA Consultant fees was for a total of Seventy-Two Thousand, Six Hundred and Sixty-Seven dollars ($72,667). The proposed amendment to the contract will increase it by the following: a) Twenty-Four Thousand, Eight Hundred and Twenty dollars ($24,820) for additional CEQA Consultant Fees; b) Twenty-One Thousand, Eight Hundred dollars and Ten Cents ($21,800.10) for staff related processing and project review fees; c) Fourteen Thousand, Three Hundred and Sixty dollars and Fifty-Seven cents ($14,360.57) for contingency reserve funds, for a total contract budget of One Hundred and Thirty-Three Thousand, Six Hundred and Forty-Seven dollars and Sixty-Seven cents ($133,647.67).
3 8. Adoption of a City Council Resolution Allocating Additional Funds, Accept the Plans and Specifications, and Awarding Project 3118-Corporation Yard Fueling System Replacement
Project 3118-Corporation Yard Fueling System Replacement (the “Project”) is for the upgrade of the City’s fueling system at the Environmental Center and installation of monitoring wells at the Corporation Yard that meet requirements set by the California State Water Resources Control Board. If adopted, this resolution will allocate additional funds to the Project, accept the project plans and specifications, and authorize the City Manager to award a construction contract to GEMS Environmental Management Services, Inc.
9. Adoption of a City Council Resolution Authorizing the City Manager to Execute a Contract for Janitorial Services with Impec Group
The existing Agreement for janitorial services expires on February 28, 2024. If approved, this resolution will authorize execution of a general services agreement for janitorial services with Impec Group, Inc. (Impec).
10. Adoption of a City Council Ordinance Approving an Amendment to the San Marco Development Plan and PD-1362 (Planned Development, Ordinance No. 12-1362) District for Siena at San Marco Residential Subdivision (Units 16 and 17), AP-21- 1584 (GP, PD/RZ, SUBD)
On February 5, 2024, the City Council held a public hearing on a request to adopt a resolution approving a General Plan Map Amendment and Vesting Tentative Map for a 206-lot single-family residential, subdivision on an approximately 48- acre portion of Village C (Unit 17) and an approximately 10-acre portion of Village O (Unit 16) located immediately south of the Willow Pass Road interchange on State Route 4, near the westernmost edge of Pittsburg city limits in the PD-1362 (Planned Development, Ordinance No. 12-1362) district. Assessor's Parcel Nos. 091-050-072 and portion of 091-050-071. After closing the public hearing, the Council adopted Resolution No. 24-14425 approving the General Plan Map amendment and Vesting Tentative Map for a Major Subdivision. The City Council also introduced and waived further reading of an ordinance approving an amendment to the San Marco Development Plan and PD-1362 (Planned Development, Ordinance No. 12-1362) District for the project. The ordinance is now ready for City Council adoption.
COUNCIL REQUEST FOR FUTURE AGENDA ITEMS
Council Members may request items to be considered for future agendas. An item will only be brought forward with a majority vote and will appear on a future agenda with staff recommendations for further Council consideration.
COUNCIL MEMBER REMARKS
Council Members may make brief announcements or informal comments at this time. (No Action Required) ADJOURNMENT TO MARCH 4, 2024
4 NOTICE TO PUBLIC
GENERAL INFORMATION
Copies of the open session agenda packets, as distributed to the City Council, are on file in the office of the City Clerk, 65 Civic Avenue, Pittsburg, California, and are available for public inspection, beginning 72 hours in advance, during normal business hours (8:00 a.m. – 5:00 p.m., Monday through Friday, except City holidays). Full agenda packets are also located on the City’s website at www.pittsburgca.gov. If any reports or documents, which are public records, are distributed to the City Council less than 72 hours before the meeting, those reports or documents will be available for public inspection in the City Clerk’s Office and on the day of the meeting in the Council Chamber at the public counter area below the dais.
SPEAKER’S CARD
Members of the audience who wish to address the City Council on issues that are not scheduled for the agenda and on any items listed as part of the agenda should complete a Speaker’s Card available at the dais. Please read the card carefully in order to fill out the card properly. Submit the completed card to the City Clerk before the item is called, preferably before the meeting begins. Individuals will be given up to three minutes to address the Council unless additional time is allowed as provided for spokespersons. Speakers are not permitted to yield their time to another speaker. Prior to speaking, each member of the public shall state their name and business and City of residence in a clear and audible tone of voice. Pursuant to the Brown Act, no action may be taken by the City Council on items not already scheduled on the agenda; however, the City Council may refer your comments/concerns to staff or request that the item be placed on a future agenda.
PUBLIC HEARINGS
Persons who wish to speak on Public Hearings listed on the agenda will be heard when the Public Hearing is opened, except on Public Hearing items previously heard and closed to public comment. After the public has commented, the item is closed to public comment and brought to the Council/Agency level for discussion and action. Further comment from the audience will not be received unless requested by the Council/Agency.
There is a 90-day limit for the filing of a challenge in the Superior Court to certain City administrative decisions and orders which require a hearing by law, the receipt of evidence, and the exercise of discretion. The 90-day limit begins on the date the decision is final (Code of Civil Procedure Section 1094.6). Further, if you challenge an action taken by the City Council in court, you may be limited, by California law, including but not limited to Government Code Section 65009, to raising only those issues you or someone else raised in the public hearing, or in written correspondence delivered to the City Council prior to or at the public hearing. The City Council may be requested to reconsider a decision if the request is made prior to the next City Council meeting, regardless of whether it is a regular or special meeting.
NOTICE TO THE DISABLED AND VISUALLY OR HEARING IMPAIRED In compliance with the Americans with Disabilities Act, the City of Pittsburg will provide special assistance for disabled residents. Upon request, an agenda for any meeting shall be made available in appropriate alternative formats. The Council Chamber is equipped with sound amplifier units for use by the hearing impaired. The units operate in conjunction with the Chamber’s sound system. You may request the sound amplifier from the City Clerk for personal use during Council meetings. If you need special assistance to participate in this meeting, or are requesting a specially formatted agenda, please contact the City Clerk at (925) 252-4850. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting or provide the requested agenda format. (28 CFR 35.102-35.104 ADA Title II)
DISRUPTIVE CONDUCT
The Council requests that you observe the order and decorum of our Council Chamber by turning off or setting to vibrate all cellular telephones and electronic devices, and that you refrain from making personal, impertinent, or slanderous remarks. Boisterous and disruptive behavior while the Council is in session, and the display of signs in a manner which violates the rights of others or prevents others from watching or fully participating in the Council meeting, is a violation of our Municipal Code and any person who engages in such conduct can be ordered to leave the Council Chamber by the Mayor.
LIVE MEDIA BROADCASTING ADVISEMENT
City Council meetings are webcast live on the City’s website at www.pittsburgca.gov on the Agendas and Live Meetings page. Past meetings and approved minutes are also archived on that webpage. Watch the live meeting via the City’s webcast (www.pittsburgca.gov - Agendas and Live Meetings), on Comcast Channel 24 Delta TV, AT&T U-Verse Channel 99 Delta TV. Contact the City Clerk’s office at (925) 252-4850 for more information 5 City Council Agency/Liaison/Subcommittee Assignments as of January 5, 2024
OUTSIDE AGENCY BOARDS COUNCIL MEMBER(S) TYPE MEETS TIME STAFF ABAG Dionne Adams / Jelani Killings Alternate Standing Annual G. Evans Delta Diablo* Juan Banales / Shanelle Scales-Preston Alternate Standing 2nd Wednesday 4:30 PM J. Samuelson East Co. Co. County Habitat Conservancy Angelica Lopez / Juan Banales Alternate Standing 4th Monday Bi-Monthly 2:00 PM J. Davis East County Water Management Juan Banales / Jelani Killings Alternate Standing Annual J. Samuelson MCE Clean Energy Board Shanelle Scales-Preston / Angelica Lopez Alternate Standing Quarterly 7:00 PM D. Buchanan TRANSPLAN / ECCRFFA Shanelle Scales-Preston / Juan Banales Alternate Standing 2nd Thursday 6:30 PM J. Samuelson Tri-Delta Transit (2 reps)** Shanelle Scales-Preston & Dionne Adams / Jelani Killings Alternate Standing 4th Wednesday 4:00 PM J. Samuelson
LIAISON TO COUNCIL MEMBER(S) TYPE MEETS TIME STAFF
East Bay League of California Cities Shanelle Scales-Preston / Jelani Killings Alternate Standing 3rd Thursday G. Evans Los Medanos Health Advisory Committee Shanelle Scales-Preston & Jelani Killings Ad Hoc As needed M. Aliotti Mayor’s Conference Juan Banales & Jelani Killings Alternate Standing 1st Thursday 6:30 PM G. Evans Pittsburg Police Activities League (PAL) Shanelle Scales-Preston & Angelica Lopez / Dionne Adams Alternate Standing Monthly S. Albanese School Districts Committee (2x2) Jelani Killings & Angelica Lopez / Dionne Adams Alternate Standing Quarterly M. Aliotti
SUBCOMMITTEES COUNCIL MEMBER(S) TYPE MEETS TIME STAFF
Budget Sustainability Juan Banales & Jelani Killings Ad Hoc As needed G. Evans Community and Economic Development Jelani Killings & Dionne Adams / Juan Banales Alternate Standing TBD J. Davis Finance Management Juan Banales & Jelani Killings / Shanelle Scales-Preston Alternate Standing 3rd Friday 4:00 PM P. Rodrigues Government Performance Juan Banales & Jelani Killings Ad Hoc 4th Friday 4:00 PM J. Brizel Infrastructure and Transportation Shanelle Scales-Preston & Dionne Adams / Juan Banales Alternate Standing 3rd Friday 1:30 PM J. Samuelson Life Enrichment Dionne Adams & Angelica Lopez / Shanelle Scales-Preston Alternate Standing 3rd Wednesday 5:30 PM K. Simonton Pittsburg Arts and Community Foundation Shanelle Scales-Preston & Jelani Killings Standing As needed K. Simonton Public Safety Shanelle Scales-Preston & Angelica Lopez / Jelani Killings Alternate Standing 1st Wednesday 5:30 PM S. Albanese Tobacco, Cannabis, Alcohol Policy Review Shanelle Scales-Preston & Jelani Killings Ad Hoc As needed G. Evans *Stipend of $170 per month
** Stipend of $100 per month
6 OFFICE OF THE CITY MANAGER/EXECUTIVE DIRECTOR
65 Civic Avenue
Pittsburg, CA 94565
TO: Mayor and Council Members
FROM: Garrett Evans, City Manager
SUBJECT: Adoption of a City Council Minute Order to Appoint Candidates to the Planning Commission
MEETING DATE: February 20, 2024
EXECUTIVE SUMMARY
There are currently two (2) vacancies and 2 seats are due to expire on February 28, 2024 on the Planning Commission. Therefore, a total of 4 seats are open for the 4-year term beginning March 1, 2024 through February 28, 2028.
FISCAL IMPACT
There is no fiscal impact.
RECOMMENDATION
Staff recommends appointment of candidates to the open seats.
BACKGROUND
Nine (9) applications were received by the deadline of January 26, 2024. Out of the 9 applicants, seven (7) were interviewed; one (1) applicant was unable to attend the interview; and 1 applicant does not reside in the City.
SUBCOMMITTEE FINDINGS
This item was not discussed at a subcommittee.
7 STAFF ANALYSIS
The City Council interviewed the following 7 applicants on February 5, 2024.
1. Michael Aparicio
2. Roland Fernandez
3. Sarah Foster (Incumbent)
4. Frank Gordon
5. Arlene Kobata (Incumbent)
6. Charlotte Riles
7. Deandra Stokes
Appointments made to the Planning Commission will serve a 4-year term beginning March 1, 2024 through February 28, 2028. The newly appointed members to the Planning Commission will have the opportunity to attend the Cal Cities Planning Commissioners Academy from March 6 through 8.
ATTACHMENTS: Applications
Report Prepared By: Melaine Venenciano, Director of City Clerk Services 8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 OFFICE OF THE CITY MANAGER/EXECUTIVE DIRECTOR
65 Civic Avenue
Pittsburg, CA 94565
TO: Mayor and Council Members
FROM: Garrett Evans, City Manager
SUBJECT: Receive and File the Treasurer’s Report for the Quarter Ending December 31, 2023
MEETING DATE: February 20, 2024
EXECUTIVE SUMMARY
Attached is the Treasurer’s Report for the fiscal quarter ending December 31, 2023. The report includes the combined detailed information of the City and the Successor Agency’s (Agency) investments, which are compliant with the City’s and Agency’s Investment Policies.
FISCAL IMPACT
The City’s expenditure requirements for the next six months are covered by anticipated revenues from City operations and liquidity from maturing investments. The difference between market value and cost as of December 31, 2023, will be reflected in the City’s financial statements for Fiscal Year 2023-24 as an adjustment to interest income for each of the City’s funds on a pro rata basis as required by Governmental Accounting Standards Board Statement Number 31. Due to the recent rise in interest rates available in the capital markets, value for existing holdings have fallen on paper and will not be realized. This drop in value had increased as inflationary pressure continued to move rates higher. Market values change on a daily basis. The change in market value is considered temporary in nature, as the City mostly holds its investments until maturity, when they can be redeemed at par value.
RECOMMENDATION
City Council accept the Treasurer’s Report for the quarter ending December 31, 2023, for information purposes only.
BACKGROUND
Each fiscal quarter, an Investment Summary Report is required to be provided, by policy, to the City Council for review.
23 SUBCOMMITTEE FINDINGS
This item was not reviewed by a subcommittee.
STAFF ANALYSIS
The City’s objectives in order of priority, are to provide safety, ensure the preservation of capital, provide sufficient liquidity for cash needs and earn a competitive rate of return (yield) within the confines of the California Government Code and the Investment Policy. Chandler Asset Management is responsible for managing investments in accordance with the City’s investment policy. All portfolio holdings were held with investment grade securities.
The advisor-managed funds are comprised of operating funds managed in a Core Portfolio account, as well as several Non-Successor Agency bond-related funds. The City’s advisor works to achieve the City’s objectives by investing in high quality fixed income securities consistent with the City’s investment policy and California Government Code.
The Core Portfolio represents the City’s cash reserves. Its return objective is to enhance both interest income and principal value as measured by total return. Total return reflects the value added to the portfolio for a period of time from interest income, realized gains and losses, as well as unrealized gains and losses. The portfolio’s total return for the quarter was 2.61%, comparing to the City performance benchmark of 2.49%, the Intercontinental Exchange Bank of America Merrill Lynch (ICE BAML) 1-3 Year U.S. Treasury/Agency Index.
Since inception (7/31/2018), the portfolio’s total return through quarter end is 1.75%, which slightly overperformed the benchmark return of 1.47% for the same period. Total returns for the quarter and since inception reflect fluctuations in market value. 24 Governmental Accounting Standards Board Statement 31 requires the City to recognize the fair market value of its investments at the end of each fiscal year. The market values of investments included in this report were obtained from the State Controller’s office for Local Agency Investment Funds (LAIF), and from the City’s registered investment advisor and bond trustees for longer-term investments.
Attached is the Chandler Asset Management (CAM) Investment Report detailing an economic update, account profile and investment activity for the quarter ending December 31, 2023.
ATTACHMENTS: Letter from City Treasurer
Investment Report by Chandler Asset Management
Report Prepared By: Christina Nguyen, Accountant II
Report Reviewed By: Andy Wang, Assistant Director of Finance 25 26
CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com
INVESTMENT REPORT
Period Ending December 31, 2023
City of Pittsburg
27 SECTION 1 Economic Update
SECTION 2 Account Profile
SECTION 3 Consolidated Information
SECTION 4 Portfolio Holdings
SECTION 5 Transactions
Table of Contents As of December 31, 2023
1 28
SECTION |
Section 1 |
Economic Update
2 29
Economic Update
Recent economic data has shown above trend growth fueled by a rise in consumer spending and a continuing healthy US job market.
Inflationary trends are subsiding, but core levels remain above the Fed’s target. Given the cumulative effects of restrictive monetarypolicy and tighter financial conditions, we believe the economy will gradually soften and the Fed will loosen monetary policy in 2024.
As expected at the December meeting, the Federal Open Market Committee voted unanimously to leave the Federal Funds rate unchanged at a target range of 5.25 - 5.50%. Fed Chair Powell signaled that the federal funds rate is likely at or near its peak. The new Summary of Economic Projections reflected Core PCE inflation reaching the target 2% level in 2026 without a significant increase in unemployment.We believe the FOMC will loosen monetary policy in mid-2024 as inflation and economic growth continue to moderate.
US Treasury rates fell steeply across the yield curve in December on decelerating inflation readings and a more dovish Federal Reserve outlook. The 2-year Treasury yield declined 43 basis points to 4.25%, the 5-year Treasury yield dropped42 basis points to 3.85%, and the 10- year Treasury yield decreased 45 basis points to 3.88%. The inversion between the 2-year Treasury yield and 10-year Treasury yield widened to -37 basis points at December month-end versus -35 basis points at November month-end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was -55 basis points. The inversion between 3-month and 10-year Treasuries widened to - 146 basis points in December from -107 basis points in November. Interest rates peaked in 2023 followed by the Fed’s dovish pivot late in the year, resulting in a decline in yields across the curve and signaling less restrictive monetary policy in 2024. The shape of the yield curve indicates that the probability of recession persists. 3 30
Employment
-400
-200
0 200
400
600
800
1,000MOM Change In Thousands (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3-month average (000's)
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
The U.S. economy added 216,000 jobs in December, exceeding consensus expectations of 175,000, and the last two months were revised down by 71,000 jobs. Leading sectors included government, leisure and hospitality, and healthcare. The trajectory of job creation is gradually moderating, with the three-month moving average payrolls at 165,000 and the six-month moving average at 193,000. The unemploymentrate remained unchanged at 3.7%, and the labor participation rate decreased to 62.5% from 62.8%, falling well below the pre-pandemic level of 63.3%. The U-6 underemploymentrate, which includes those who are marginally attached to the labor force and employed part time for economic reasons rose to 7.1% from 7.0% last month. Average hourly earnings rose 4.1% year-over-year in December, increasing from a 4.0% gain last month. Employment remains strong by historical standards, but data are trending toward a less robust labor market outlook.
Source: US Department of Labor Source: US Department of Labor 4 31
Job Openings & Labor Turnover Survey
0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
Job Openings
Recession
Historical Average
In Thousands (000's)
The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) dipped to 8.79 million in November, compared to an upwardly revised 8.85 million for October. While on a downward trend, job openings still represent a healthy ratio of around 1.4 jobs for each unemployed individual. The quits rate declined to 2.2%, hovering around pre-pandemic levels, down from its high of 3.0% in mid-2022 when labor demand far outstripped supply. While the current level of job openings remains elevated from a historical perspective, the trend is decelerating.
Source: US Department of Labor
5 32
Inflation
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY (%) Change
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY % Change
PCE Cor e Deflator Y OY % Change
Fed Target
YOY (%) Change
The Consumer Price Index (CPI) increased 0.3% month-over-monthand 3.4% year-over-year in December, increasing from 3.1% year-over- year in November. The Core CPI, which excludes volatile food and energy components, was up 0.3% month-over-monthand 3.9% year- over-year, down from November. Shelter costs remain elevated, contributing to more than half of the overall increase while motor-vehicle insurance costs jumped by over 20%, the most since 1976. The Personal Consumption Expenditures (PCE) Index headline inflation increased 0.2% month-over-month and rose 2.6% year-over-year in line with November. Core PCE, the Federal Reserve’s preferred inflation gauge, increased 0.2% month-over-monthand continued its deceleration to 2.9% year-over-year in December from a 3.2% year- over-year in November. The trend is moderating, but inflation remains above the Fed's 2% target.
Source: US Department of Labor Source: US Department of Commerce 6 33
Consumer
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Retail Sales YOY % Change
YOY (%) Change
Retail Sales accelerated to 0.6% in December after an unrevised +0.3% in November, exceeding the +0.4% consensus forecast. On a year- over-year basis, Retail Sales growth increased to 5.6% in December from 4.0% in November due to notable gains in categories like food and drinking places, clothing, general merchandise stores, and e-commerce. The Conference Board’s Consumer Confidence Index surged to 110.7 in December from 101.0 in November, far surpassing consensus expectations. Positive ratings of job availability and increased confidence in personal income prospects contributed to the substantial increase. While the consumer has been resilient, dwindling excess savings, rising credit card balances, and the resumption of student loan payments pose potential headwinds to future economic growth.
0 20
40 60
80 100
120
140
160
Index Level
Consumer Confidence
Recession
Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09) 7 34
Leading Indicators of Economic Activity
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
Leading Economic Indicators (LEI)
Recession
YOY (%) Change
-1.00
-0.75
-0.50
-0.25
0.00 0.25
0.50 0.75
1.00 Chicago Fed National Activity Index (CFNAI)
Recession
3 Month Average
The Conference Board’s Leading Economic Index (LEI) fell 0.1% in December, marking the twenty-first consecutive month-over-month decline. The index dropped 6.9% year-over-year. Although the magnitude of the monthly declines has lessened, the Conference Board continues to view the underlying weakness as signaling the risk of recession persists. The Chicago Fed National Activity Index (CFNAI) declined to -0.15 in December from a downwardlyrevised +0.01 in November.On a 3-month movingaverage basis, the CFNAI declined to -
0.28 in December from -0.24 in November, indicating a rate of growth below the historical average trend.
Source: The Conference Board Source: Federal Reserve Bank of Chicago 8 35
Housing
0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400In Thousands of Units
Annualized Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
Housing Starts decreased month-over-monthin December by 4.3% to an annual rate of 1.460 million units. Starts for single-family homes were down 8.6%, while multi-family homes rose 7.5%. Total starts of new homes are up 15.8% year-over-year. Although single family home starts decreased in December, the National Association of Home Builders Market Index increased faster than expectations due to lower mortgage rates providing a boost in confidence for homebuilders. According to Freddie Mac, average 30-year fixed rate mortgage rates declined to 6.61% as of December 28th. According to the Case-Shiller 20-City Home Price Index, housing prices rose 4.9% year-over- year in October, accelerating from a 3.9% year-over-year gain in September. Tight inventories and higher mortgage rates continue to impact affordability.
Source: US Department of Commerce Source: S&P
-20.0%
-16.0%
-12.0%
-8.0%
-4.0%
0.0%
4.0%
8.0%
12.0%
16.0%
20.0%
24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
Recession
YOY (%) Change
9 36
Survey Based Measures
40 45
50 55
60 65
70 Institute of Supply Management (ISM) Surveys
ISM Manufacturing ISM Services
EXPANDING
CONTRACTING
The Institute for Supply Management (ISM) Manufacturing index moved higher to 47.4 in December from 46.7 in November due to improved performance as suppliers are better able to meet lower demand levels. However, this marks the 14th consecutive month of contraction in factory activity below a reading of 50. The ISM Services Index unexpectedly declined to 50.6 in December from 52.7 in November, narrowly remaining in the expansion zone above 50. Notably, the employment component of the index plummeted by 7.4 points to 43.3, entering contractionary territory. This decline was primarily driven by increased layoffs and a softening in consumer demand.
Source: Institute for Supply Management
10 37
Gross Domestic Product (GDP)
Components of GDP 3/23 6/23 9/23 12/23
2.5% 0.6% 2.1% 1.9%
-1.7% 0.9% 1.7% 0.4%
0.6% 0.0% 0.0% 0.4%
0.3% 0.1% 0.5% 0.2%
0.5% 0.5% 0.5% 0.4%
2.3% 2.1% 4.9% 3.3%
State and Local (Consumption and Gross
Investment)
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
Total
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Source: US Department of Commerce Source: US Department of Commerce According to the advance estimate, fourth quarter GDP increased at an annualized rate of 3.3%, down from 4.9% in the third quarter. The headline growth was led by consumer and government spending. The consensus estimate calls for 2.3% growth in the first quarter and
1.5% growth for the full year 2024.
11 38
Federal Reserve
Source: Federal Reserve Source: Bloomberg
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
Recession
In $ millions
As expected at the December meeting, the Federal Open Market Committee voted unanimously to leave the federal funds rate unchanged at a target range of 5.25-5.50%. The Fed acknowledged inflation eased over the past year while remaining elevated. Fed Chair Powell signaled that the federal funds rate is likely at or near its peak. The Summary of Economic Projections reflected Core PCE inflation reaching the target 2% level in 2026 without a significant increase in unemployment. The median forecast for the federal funds rate declined to 4.6%, implying three quarter-point cuts next year, four in 2025 and three in 2026, placing the federal funds target rate around
2.9% at the end of the forecast horizon. The market interpreted the statement as dovish, with futures contracts pricing in rate cuts sooner and more aggressively than the Fed’s forecasts next year. We believe the FOMC will loosen monetary policy in mid-2024 as inflation and economic growth continue to moderate. Since the Fed began its Quantitative Tightening campaign in June 2022, securities holdings have declined by over $1.3T to approximately $7.7T.
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Effective Federal Funds Rate
Recession
Yield (%)
12 39
Bond Yields
Source: Bloomberg Source: Bloomberg
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
US Treasury Yield Curve
Dec-23
Sep-23
Dec-22
Yield (%)
At the end of December, the 2-year Treasury yield was 18 basis points lower, and the 10-Year Treasury yield was flat, year-over-year. The inversion between the 2-year Treasury yield and 10-year Treasury yield widened to -37 basis points at December month-end versus -35 basis points at November month-end. The average historical spread (since 2003) is about +130 basis points. The inversion between 3- month and 10-year Treasuries widened to -146 basis points in December from -107 basis points in November. The shape of the yield curve indicates that the probability of recession persists. 13 40
Section 2|SECTION |
Section 2 |
Account Profile
14 41
Objectives
Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark index.
Investment Objectives
The investment objectives for the City of Pittsburg, in order of priority, are to provide safety to ensure the preservation of capital in the overall portfolio, provide sufficient liquidity for cash needs and a market rate of return consistent with the investment program.
Strategy
In order to achieve these objectives, the portfolio invests in high quality fixed income securities consistent with the City’s investment policy and California Government Code.
As of December 31, 2023
15 42
Compliance As of December 31, 2023
Category Standard Comment
U.S. Treasuri es No Limitation; Full faith and credit of the U.S. are pledged for the payment of principal and interest Complies Federal Agenci es
30% max per Agency/GSE i ssuer; 20% max agency cal l abl e securi ti es; Federal agency or U.S. government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and i nterest by federal agenci es or U.S. government-sponsored enterpri ses.
Complies
Supranational Obligations "AA" rating category or better by a NRSRO; 30% max; 10% max per issuer; USD denominated senior unsecured unsubordinated obligations; Issued or unconditionally guaranteed by IBRD, IFC, IADB Complies Municipal Securities (CA, Other States)
"A" rating category or better by a NRSRO; 30% max; 5% max per issuer; Obligations of the City, State of California and any local agency within the state; Bonds of any of the other 49 states in addition to California; Including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
Complies
Corporate Medi um Term Notes "A" rating category or better by a NRSRO; 30% max; 5% max per issuer; Issuer is a corporation organized and operating within the U.S. or by depository institutions licensed by the U.S. or any state and operating within the U.S Complies Asset-Backed, Mortgage-Backed,
Mortgage Pass-Through Securities,
Collate ralize d Mortgage Obligations
"AA" rati ng category or better by a NRSRO; 20% max (combi ned ABS/MBS/CMO); 5% max per Asset-Backed or Commerci al Mortgage security issuer; From issuers not defined in US Treasury and Federal Agencies of the Eligible Investments section of the policy
Complies
Negoti abl e Certi fi cates of Deposi t
(NCD)
The amount of NCD insured up to the FDIC limit does not require any credit ratings; Any amount above FDIC insured limit must be issued by institutions with "A-1" short-term debt rating or higher by a NRSRO; or "A" long-term rating category or higher by a NRSRO; 30% max; 5% max per issuer; Issued by a nationally or state-chartered bank, or a federal or state association, a state or federal credit union, or by a federally-licensed or state-licensed branch of a foreign bank.
Complies
Ti me Deposi ts (Non-negoti abl e &
Collate ralize d CD/TD)
"A" rated or one of the three highest rating categories by a NRSRO; 30% max; 5% max per issuer; 1 year max maturity; Non- ne gotiable tim e de posits that are FDIC insure d or fully collate ralize d in financial institutions locate d in California, including US branches of foreign banks licensed to do business in California Complies
Banker’s Acceptances "A-1" rated or highest short-term rating category by a NRSRO; 40% max; 5% max per issuer; 180 days max maturity Complies Commerci al Paper
"A-1" short-term ratings or higher by a NRSRO; "A" long-term rating category or higher by a NRSRO, if any; 25% max; Under a provision sunsetting on January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the City’s investment assets under management are greater than $100 million; 5% max per issuer; 270 days max maturity; 10% max of the outstanding commercial paper of any single issuer; Issued by an entity that meets all the following conditions in either (1) or (2): 1. (a) organized and operating in the U.S. as a general corporation (b) has assets > $500 million; (c) "A" rating category or higher by a NRSRO, if any debt 2. (a) organized within the U.S. as a special purpose corporation, trust, or limited liability company; (b) has program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond; (c) "A-1" rating category or higher by a NRSRO.
Complies
City of Pittsburg Managed Consolidated
This portfolio is a consolidation of assets managed by Chandler Asset Management. Assets managed by Chandler Asset Management are in full compliance with state law and Client's investment policy. Chandler relies on City to provide accurate information for reporting assets and producing this compliance statement. 16 43
Compliance As of December 31, 2023
Category Standard Comment
Money Market Mutual Funds
Registered with SEC under Investment Company Act of 1940; issued by diversified management companies and meet either of the following crite ria: (i) Highe st rating by two N RSROs; or (ii) Re taine d an inve stm e nt advise r re giste re d or e xe m pt from SEC registration with > 5 years experience managing money market mutual funds with AUM >$500 million; 20% max Money Market Funds; 10% max per Fund
Complies
Local Agency Investment Fund (LAIF) Maximum amount permitted by LAIF; Not used by investment adviser Complies California Asset Management Program
(CAMP)
Shares of beneficial interest issued by a joint powers authority pursuant to California Government Code; Not used by i nvestment advi ser Complies
Repurchase Agreements
Primary government securities dealers rated in one of the three highest categories by two NRSROs; Counterparties should also have : i) short-te rm rating in the highe st cate gory; ii) $25 billion m inim um asse ts and $350 m illion in capital size ; iii) 5 ye ars audited financial results; iv) strong reputation; 15% max; 5% max per issuer; 90 days max maturity; 102% collateralized with U.S. Treasury or Federal Agency securities; Not used by investment adviser Complies
Prohibited
Investments not described in the policy, including but not limited to: Common stocks, Futures contracts, Options, Inverse floaters, Range notes, Mortgage derived Interest-only strips, or any security that could result in zero interest accrual securities if held to maturity; Purchase of any security not listed in Section 8-Eligible Investments of the Investment Policy, unless approved by the City Council
Complies
Max Per Issuer 5% of portfolio per issuer unless otherwise specified in the policy Complies Maxi mum Maturi ty 5 years, except as otherwi se stated i n the pol i cy Complies City of Pittsburg Managed Consolidated
This portfolio is a consolidation of assets managed by Chandler Asset Management. Assets managed by Chandler Asset Management are in full compliance with state law and Client's investment policy. Chandler relies on City to provide accurate information for reporting assets and producing this compliance statement. 17 44
Portfolio Characteristics
City of Pittsburg
12/31/23 09/30/23
Benchmark* Portfolio Portfolio
Average Maturity (yrs) 1.84 2.02 1.96
Average Modified Duration 1.76 1.76 1.71
Average Purchase Yield n/a 2.95% 2.43%
Average Market Yield 4.37% 4.66% 5.32%
Average Quality** AA+ AA/Aa1 AA/Aa1
Total Market Value*** 70,792,498 69,003,744
*ICE BofA 1-3 Yr US Treasury & Agency Index
**Benchmark is a blended rating of S&P, Moody’s, and Fitch. Portfolio is S&P and Moody’s respectively. ***Excludes accrued interest
As of December 31, 2023
18 45
City of Pittsburg
Sector Distribution
ABS
5.7%
Agency
21.4%
CMO
8.7%
Corporate
25.0%
Money Market
Fund
0.6%
Supranational
4.4%
US Treasury
34.2%
December 31, 2023 September 30, 2023
ABS
6.0%
Agency
22.3%
CMO
8.7%
Corporate
23.6%
Money Market
Fund
0.6%
Supranational
4.7%
US Treasury
34.1%
As of December 31, 2023
19 46
Duration Allocation As of December 31, 2023
City of Pittsburg
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ 12/31/23 11.2% 8.9% 13.2% 25.6% 20.9% 15.1% 5.1% 0.0%
0%
5%
10%
15%
20%
25%
30%
0 - 0.25 Years 0.25 - 0.5 Years 0.5 - 1 Years 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years 5+ Years ABS
Agency
CMO
Corporate
Money Market Fund
Supranational
US Treasury
20 47
Portfolio Allocation & Duration Changes
City of Pittsburg
As of December 31, 2023
Benchmark: ICE BofA 1-3 Yr US Treasury & Agency Index
100.0%98.0%98.9%
85.3%
91.2%90.8%
96.3%
98.1%
80.0%
85.0%
90.0%
95.0%
100.0%
105.0%
110.0%
12/31/2309/30/2306/30/2303/31/2312/31/2209/30/2206/30/2203/31/22 Duration as a % of the Benchmark
0.6%
4.7%
6.0%
8.7%
22.3%
23.6%
34.1%
0.6%
4.4%
5.7%
8.7%
21.4%
25.0%
34.2%
Money Market
Fund
Supranational
ABS
CMO
Agency
Corporate
US Treasury
Portfolio Allocation
12/31/23
09/30/23
21 48
Issue Name Investment Type S&P Rating Moody Rating % Portfolio Government of United States US Treasury AA+ Aaa 31.44%
Federal Home Loan Bank Agency AA+ Aaa 10.38%
Federal Farm Credit Bank Agency AA+ Aaa 8.82%
Federal Home Loan Mortgage Corp CMO NR NR 4.99%
Government of United States US Treasury A-1+ P-1 2.80%
Federal Home Loan Mortgage Corp CMO AAA NR 2.37%
Inter-American Dev Bank Supranational AAA Aaa 2.29%
Federal National Mortgage Association Agency AA+ Aaa 2.17% Home Depot Corporate A A2 1.41%
JP Morgan ABS ABS AAA NR 1.39%
JP Morgan Chase & Co Corporate A- A1 1.37%
Federal Home Loan Mortgage Corp CMO NR Aaa 1.36%
Deere & Company Corporate A A2 1.27%
Paccar Financial Corporate A+ A1 1.10%
Mass Mutual Insurance Corporate AA+ Aa3 1.06%
Intl Bank Recon and Development Supranational AAA Aaa 1.06% Toronto Dominion Holdings Corporate A A1 1.04%
Apple Inc Corporate AA+ Aaa 1.04%
Amazon.com Inc Corporate AA A1 1.04%
Bank of Montreal Chicago Corporate A- A2 1.03%
Chubb Corporation Corporate A A3 1.03%
Charles Schwab Corp/The Corporate A- A2 1.01%
International Finance Corp Supranational AAA Aaa 1.01%
Honeywell Corp Corporate A A2 1.01%
Caterpillar Inc Corporate A A2 0.99%
Toyota Motor Corp Corporate A+ A1 0.91%
Northern Trust Corp Corporate A+ A2 0.84%
MasterCard Inc Corporate A+ Aa3 0.82%
State Street Bank Corporate A A1 0.77%
Bank of America Corp Corporate A- A1 0.76%
Bank of America Corp Corporate A+ Aa1 0.73%
US Bancorp Corporate A A3 0.71%
National Rural Utilities Corporate A- A1 0.71%
Bank of New York Corporate A A1 0.70%
American Express ABS ABS AAA NR 0.70%
Duke Energy Field Services Corporate A Aa3 0.70%
Royal Bank of Canada Corporate A A1 0.69%
Target Corp Corporate A A2 0.69%
Issuers
City of Pittsburg – Account #10607
As of December 31, 2023
22 49
Issue Name Investment Type S&P Rating Moody Rating % Portfolio Wells Fargo Advantage Govt Money Market Fund Money Market Fund AAA Aaa 0.64% Honda ABS ABS NR Aaa 0.55%
John Deere ABS ABS NR Aaa 0.54%
Hyundai Auto Receivables ABS AAA NR 0.51%
Morgan Stanley Corporate A+ Aa3 0.49%
Toyota ABS ABS AAA NR 0.45%
Pepsico Inc Corporate A+ A1 0.40%
GM Financial Automobile Leasing Trust ABS AAA NR 0.35%
United Health Group Inc Corporate A+ A2 0.35%
BMW ABS ABS AAA Aaa 0.26%
Honda ABS ABS AAA NR 0.26%
GM Financial Securitized Term Auto Trust ABS NR Aaa 0.23% Wal-Mart Stores Corporate AA Aa2 0.22%
BMW ABS ABS AAA NR 0.19%
Salesforce.com Inc Corporate A+ A2 0.16%
Toyota ABS ABS NR Aaa 0.12%
BMW Vehicle Lease Trust ABS AAA NR 0.07%
Mercedes-Benz Auto Lease Trust ABS AAA NR 0.03%
TOTAL 100%
Issuers
City of Pittsburg – Account #10607
As of December 31, 2023
23 50
AAA AA A <A NR
12/31/23 14.4% 56.2% 21.7% 0.0% 7.8%
09/30/23 12.2% 59.7% 20.3% 0.0% 7.8%
Source: S&P Ratings
December 31, 2023 vs. September 30, 2023
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
AAA AA A <A NR
12/31/23 09/30/23
Quality Distribution
City of Pittsburg
As of December 31, 2023
24 51
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ December 31, 2023 September 30, 2023
December 31, 2023 vs. September 30, 2023
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ 12/31/23 11.2% 8.9% 13.2% 25.6% 20.9% 15.1% 5.1% 0.0%
09/30/23 12.6% 7.6% 16.8% 25.3% 18.1% 16.3% 3.2% 0.0%
City of Pittsburg
Duration Distribution As of December 31, 2023
25 52
-1.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
12 months 2 years 3 years 5 years 10 years Since Inception City of Pittsburg ICE BofA 1-3 Yr US Treasury & Agency Index Total Rate of Return Annualized Since Inception July 31, 2018 Annualized
TOTAL RATE OF RETURN 3 months 12 months 2 years 3 years 5 years 10 years Since Inception
City of Pittsburg 2.61% 4.67% 0.71% 0.32% 1.60% N/A 1.75% ICE BofA 1-3 Yr US Treasury & Agency Index 2.49% 4.27% 0.23% -0.03% 1.30% N/A 1.47% Total rate of return: A measure
of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.
Investment Performance
City of Pittsburg
As of December 31, 2023
26 53
Purchase Yield as of 12/31/23 = 2.95%
0.00 0.50
1.00 1.50
2.00 2.50
3.00 3.50
Percent (%)
Historical Average Purchase Yield
City of Pittsburg
As of December 31, 2023
27 54
Portfolio Characteristics
City of Pittsburg Liquidity
12/31/23
Portfolio
09/30/23
Portfolio
Average Maturity (yrs) 0.38 0.36
Modified Duration 0.37 0.35
Average Purchase Yield 5.52% 5.23%
Average Market Yield 5.36% 5.24%
Average Quality* AAA/Aaa AAA/Aaa
Total Market Value** 28,128,949 27,809,748
*Portfolio is S&P and Moody’s, respectively.
**Excludes accrued interest
As of December 31, 2023
28 55
City of Pittsburg Liquidity
Sector Distribution
Commercial
Paper
10.4%
Money Market
Fund
7.2%
Negotiable CD
20.0%US Treasury
62.4%
December 31, 2023 September 30, 2023
Commercial
Paper
10.4%
Money Market
Fund
4.7%
Negotiable CD
14.6%
US Treasury
66.7%
Agency
3.6%
As of December 31, 2023
29 56
Issue Name Investment Type S&P Rating Moody Rating % Portfolio Government of United States US Treasury A-1+ P-1 41.66% Government of United States US Treasury AA+ Aaa 20.76%
Westpac Banking Corp NY Negotiable CD A-1+ P-1 7.40%
Cooperatieve Rabobank UA Negotiable CD A-1 P-1 7.23%
Wells Fargo Advantage Govt Money Market Fund Money Market Fund AAA Aaa 7.20% MUFG Bank Ltd/NY Commercial Paper A-1 P-1 6.95%
Toronto Dominion Holdings Negotiable CD A-1+ P-1 5.35%
Toyota Motor Corp Commercial Paper A-1+ P-1 3.45%
TOTAL 100%
Issuers
City of Pittsburg Liquidity – Account #10617
As of December 31, 2023
30 57
AAA AA A <A NR
12/31/23 65.1% 34.9% 0.0% 0.0% 0.0%
09/30/23 70.2% 29.8% 0.0% 0.0% 0.0%
Source: S&P Ratings
December 31, 2023 vs. September 30, 2023
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
AAA AA A <A NR
12/31/23 09/30/23
Quality Distribution
City of Pittsburg Liquidity
As of December 31, 2023
31 58
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ December 31, 2023 September 30, 2023
December 31, 2023 vs. September 30, 2023
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ 12/31/23 34.9% 29.9% 35.1% 0.0% 0.0% 0.0% 0.0% 0.0%
09/30/23 45.6% 24.9% 29.4% 0.0% 0.0% 0.0% 0.0% 0.0%
City of Pittsburg Liquidity
Duration Distribution As of December 31, 2023
32 59
Purchase Yield as of 12/31/23 = 5.52%
0.00 1.00
2.00 3.00
4.00 5.00
6.00 Percent (%)
Historical Average Purchase Yield
City of Pittsburg Liquidity
As of December 31, 2023
33 60
SECTION |
Section 3 |
Consolidated Information
34 61
Account Structure As of December 31, 2023
*Market value changes daily and is subject to a number of economic forces, including supply and demand, and can incur unrealized gains and losses.
Original Cost Market Value % of Portfolio
Funds Managed Internally
Cash Equivalents 19,876,102.85 19,876,102.85 8.63% Investment Pools 40,919,072.41 40,654,863.33 17.64% Additional Bonded Debt Funds 64,286,798.26 64,304,065.25 27.91% Total 125,081,973.52 124,835,031.43 54.18%
Funds Managed by City's Investment Advisor
Operating Funds 99,335,531.29 98,919,447.36
42.93%
Bond Managed Reserve 3,554,682.10 3,559,271.96 1.54% Total 102,890,213.39 102,478,719.32 44.48%
City's Section 115 Trust
Section 115 Trust 3,017,950.46 3,098,236.95 1.34% Total 3,017,950.46 3,098,236.95 1.34%
Total City Funds 230,990,137.37 230,411,987.70 100.00% 35 62
Sector Allocation As of December 31, 2023
1,2Funds not managed by City's investment adviser; 3Bonded Debt Funds not managed, nor tracked by City's investment adviser *Market value changes daily and is subject to a number of economic forces, including supply and demand, and can incur unrealized gains and losses.
Security Type Original Cost Market Value % of Portfolio Average Maturity Average Yield Operating Funds
Cash Equivalents1 19,876,102.85 19,876,102.85 12.47% 1 N/A Money Market Funds 2,497,525.57 2,497,525.57 1.57% 1 4.92% Investment Pools2 40,919,072.41 40,654,863.33 25.50% 1 N/A Total Liquidity 63,292,700.83 63,028,491.75 39.53% 1 4.92% U.S. Treasury Notes 42,008,657.66
41,917,791.73 26.29% 248 3.70%
Federal Agency Securities 15,067,998.25 15,066,024.70 9.45% 1022 3.71% Negotiable Certificates of Deposit 5,498,754.18 5,513,525.00 3.46% 193 5.66% Medium-Term Corporate Notes 17,988,624.85 17,694,235.37 11.10% 471 2.52% Asset-Backed Securities 4,051,615.93 4,018,670.47 2.52% 1113 3.32% Commercial Paper 2,882,872.22 2,945,653.62 1.85% 117 5.90% Supranationals 3,153,900.60 3,081,807.82 1.93% 566 2.33% Collateralized Mortgage Obligations 6,185,582.03 6,184,213.08 3.88% 1142 4.29% Total Securities 96,838,005.72 96,421,921.79 60.47% 506 3.64% Total Operating Funds 160,130,706.55 159,450,413.54 100.00% 307 2.28% Bonded Debt Funds
Pittsburg Pension Bond 2,407,179.89 2,407,179.89 3.55% 1 5.21% Pittsburg AD Auto Mall 345,238.64 349,828.50 0.52% 47 5.47% Pittsburg AD Vista DM 802,263.57 802,263.57 1.18% 1 5.21% Additional Bonded Debt Funds3 64,286,798.26 64,304,065.25 94.76% N/A N/A Total Bonded Debt Funds 67,841,480.36 67,863,337.21 100.00% 6 5.24% Section 115 Trust
Equity Mutual Fund2 3,017,950.46 3,098,236.95 100.00% N/A N/A Total Section 115 Trust Funds 3,017,950.46 3,098,236.95 100.00% N/A N/A Total City Funds 230,990,137.37 230,411,987.70
36 63
SECTION |
Section 4 |
Portfolio Holdings
37 64
Holdings Report
City of Pittsburg - Account #10607
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
ABS
58769KAD6 Mercedes-Benz Auto Lease Trust 2021-B A3
0.400% Due 11/15/2024
24,789.81 06/22/2021
0.40%
24,787.94
24,789.78
99.81 6.17%
24,742.91
4.41 0.03%
(46.87)
NR / AAA
AAA
0.88 0.03
05601XAC3 BMW Vehicle Lease Trust 2022-1 A3
1.100% Due 03/25/2025
48,100.57 01/11/2022
1.11%
48,093.38
48,099.81
99.43 6.24%
47,827.60
8.82 0.07%
(272.21)
NR / AAA
AAA
1.23 0.11
43813GAC5 Honda Auto Receivables Trust 2021-1 A3
0.270% Due 04/21/2025
23,283.45 02/17/2021
0.27%
23,283.02
23,283.42
98.79 6.20%
23,000.74
1.75 0.03%
(282.68)
Aaa / NR
AAA
1.31 0.20
89240BAC2 Toyota Auto Receivables Owners 2021-A A3
0.260% Due 05/15/2025
87,541.26 02/02/2021
0.27%
87,525.01
87,540.20
98.89 6.00%
86,572.26
10.12 0.12%
(967.94)
Aaa / NR
AAA
1.37 0.19
36266FAC3 GM Financial Auto Lease Trust 2022-2 A3
3.420% Due 06/20/2025
252,933.10 05/03/2022
3.45%
252,906.72
252,926.48
99.38 5.86%
251,371.74
264.32
0.35%
(1,554.74)
NR / AAA
AAA
1.47 0.25
47788UAC6 John Deere Owner Trust 2021-A A3
0.360% Due 09/15/2025
56,978.59 03/02/2021
0.37%
56,967.64
56,976.19
98.22 5.62%
55,966.82
9.12 0.08%
(1,009.37)
Aaa / NR
AAA
1.71 0.34
43815EAC8 Honda Auto Receivables 2021-3 A3
0.410% Due 11/18/2025
188,061.64 08/17/2021
0.41%
188,058.89
188,060.89
97.48 5.71%
183,329.05
27.84 0.26%
(4,731.84)
NR / AAA
AAA
1.88 0.47
43815GAC3 Honda Auto Receivables Trust 2021-4 A3
0.880% Due 01/21/2026
128,862.17 11/16/2021
0.89%
128,835.00
128,852.61
97.04 5.75%
125,041.92
31.50 0.18%
(3,810.69)
Aaa / NR
AAA
2.06 0.61
47789QAC4 John Deere Owner Trust 2021-B A3
0.520% Due 03/16/2026
143,186.85 07/13/2021
0.52%
143,174.08
143,182.64
97.29 5.63%
139,308.92
33.09 0.20%
(3,873.72)
Aaa / NR
AAA
2.21 0.53
89238JAC9 Toyota Auto Receivables Trust 2021-D A3
0.710% Due 04/15/2026
123,797.18 11/09/2021
0.71%
123,794.54
123,796.27
97.03 5.67%
120,121.64
39.06 0.17%
(3,674.63)
NR / AAA
AAA
2.29 0.60
44935FAD6 Hyundai Auto Receivables Trust 2021-C A3
0.740% Due 05/15/2026
237,536.86 07/27/2022
3.53%
226,912.65
233,056.06
97.28 5.70%
231,087.26
78.12 0.33%
(1,968.80)
NR / AAA
AAA
2.37 0.55
05602RAD3 BMW Vehicle Owner Trust 2022-A A3
3.210% Due 08/25/2026
190,375.91 05/10/2022
3.23%
190,366.01
190,371.19
98.59 5.24%
187,688.56
101.85
0.26%
(2,682.63)
Aaa / AAA
NR
2.65 0.70
47787JAC2 John Deere Owner Trust 2022-A A3
2.320% Due 09/16/2026
194,359.57 03/10/2022
2.34%
194,316.57
194,338.62
97.77 5.39%
190,018.35
200.41
0.27%
(4,320.27)
Aaa / NR
AAA
2.71 0.73
448977AD0 Hyundai Auto Receivables Trust 2022-A A3
2.220% Due 10/15/2026
132,068.61 05/02/2022
3.34%
128,849.44
130,566.52
97.72 5.40%
129,063.39
130.31
0.18%
(1,503.13)
NR / AAA
AAA
2.79 0.72
36265WAD5 GM Financial Securitized Auto 2022-3 A3
3.640% Due 04/16/2027
165,000.00 07/06/2022
3.67%
164,998.86
164,999.39
98.38 5.18%
162,334.59
250.25
0.23%
(2,664.80)
Aaa / NR
AAA
3.29 1.07
02582JJT8 American Express Credit Trust 2022-2 A
3.390% Due 05/17/2027
510,000.00 05/17/2022
3.42%
509,887.19
509,948.11
97.95 4.99%
499,564.89
768.40
0.70%
(10,383.22)
NR / AAA
AAA
3.38 1.30
161571HS6 Chase Issuance Trust 22-A1 A
3.970% Due 09/15/2027
1,000,000.00 05/11/2023
4.28%
993,945.31
995,581.14
98.65 4.85%
986,511.00
1,764.44
1.39%
(9,070.14)
NR / AAA
AAA
3.71 1.60
As of December 31, 2023
38 65
Holdings Report
City of Pittsburg - Account #10607
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
05592XAD2 BMW Vehicle Owner Trust 2023-A A3
5.470% Due 02/25/2028
135,000.00 07/11/2023
5.54%
134,976.08
134,979.34
101.04
4.95%
136,403.46
123.08
0.19%
1,424.12
NR / AAA
AAA
4.16 1.78
438123AC5 Honda Auto Receivables OT 2023-4 A3
5.670% Due 06/21/2028
235,000.00 11/01/2023
5.74%
234,958.62
234,960.31
102.09
3.84%
239,910.33
370.13
0.34%
4,950.02
Aaa / NR
AAA
4.48 1.09
89239FAD4 Toyota Auto Receivables Owner 2023-D A3
5.540% Due 08/15/2028
195,000.00 11/07/2023
5.61%
194,978.98
194,979.75
101.95
3.86%
198,805.04
480.13
0.28%
3,825.29
NR / AAA
AAA
4.63 1.11
TOTAL ABS 4,071,875.57 3.32%
4,051,615.93
4,061,288.72 5.13%
4,018,670.47
4,697.15
5.66%
(42,618.25)
Aaa / AAA
AAA
3.05 1.01
Agency
3135G0V34 FNMA Note
2.500% Due 02/05/2024
600,000.00 01/30/2020
1.44%
624,768.00
600,591.32
99.73 5.27%
598,407.00
6,083.33
0.85%
(2,184.32)
Aaa / AA+
AA+
0.10 0.09
3130A7PH2 FHLB Note
1.875% Due 03/08/2024
1,000,000.00 03/03/2020
0.85%
1,040,350.00
1,001,845.36
99.35 5.35%
993,546.00
5,885.42
1.41%
(8,299.36)
Aaa / AA+
NR
0.19 0.18
3133ENKS8 FFCB Note
1.125% Due 01/06/2025
425,000.00 01/06/2022
1.20%
424,043.75
424,674.82
96.64 4.55%
410,738.70
2,324.22
0.58%
(13,936.12)
Aaa / AA+
AA+
1.02 0.98
3130AWER7 FHLB Note
4.625% Due 06/06/2025
1,000,000.00 06/13/2023
4.74%
997,830.00
998,431.11
100.56
4.22%
1,005,580.00
3,211.81
1.42%
7,148.89
Aaa / AA+
NR
1.43 1.37
3135G05X7 FNMA Note
0.375% Due 08/25/2025
1,000,000.00 03/07/2022
1.78%
953,120.00
977,707.93
93.49 4.51%
934,917.00
1,312.50
1.32%
(42,790.93)
Aaa / AA+
AA+
1.65 1.61
3133EPJX4 FFCB Note
3.625% Due 02/17/2026
1,000,000.00 05/15/2023
3.89%
993,250.00
994,785.00
98.76 4.24%
987,648.00
13,493.06
1.41%
(7,137.00)
Aaa / AA+
AA+
2.13 2.00
3133EPHH1 FFCB Note
4.000% Due 04/28/2026
1,500,000.00 05/09/2023
3.90%
1,504,095.00
1,503,203.47
99.59 4.18%
1,493,901.00
10,500.00
2.12%
(9,302.47)
Aaa / AA+
AA+
2.33 2.18
3133EPVP7 FFCB Note
4.750% Due 07/08/2026
1,000,000.00 12/06/2023
4.48%
1,006,424.00
1,006,253.87
101.33
4.19%
1,013,306.00
14,909.72
1.45%
7,052.13
Aaa / AA+
AA+
2.52 2.32
3133EPZY4 FFCB Note
5.000% Due 07/30/2026
1,000,000.00 11/09/2023
4.85%
1,003,740.00
1,003,544.15
102.09
4.14%
1,020,853.00
8,472.22
1.45%
17,308.85
Aaa / AA+
NR
2.58 2.39
3130AXU63 Federal Home Loan Banks Note
4.625% Due 11/17/2026
1,000,000.00 11/30/2023
4.53%
1,002,530.00
1,002,457.51
101.41
4.10%
1,014,119.00
5,652.78
1.43%
11,661.49
Aaa / AA+
NR
2.88 2.66
3130ATUS4 FHLB Note
4.250% Due 12/10/2027
1,000,000.00 05/15/2023
3.66%
1,024,620.00
1,021,227.19
101.03
3.96%
1,010,292.00
2,479.17
1.42%
(10,935.19)
Aaa / AA+
NR
3.95 3.59
3130ATS57 FHLB Note
4.500% Due 03/10/2028
1,000,000.00 04/24/2023
3.76%
1,032,720.00
1,028,108.70
102.36
3.88%
1,023,647.00
13,875.00
1.46%
(4,461.70)
Aaa / AA+
NR
4.19 3.75
3130AWC24 FHLB Note
4.000% Due 06/09/2028
1,000,000.00 07/06/2023
4.49%
978,470.00
980,567.86
100.35
3.91%
1,003,500.00
2,444.44
1.41%
22,932.14
Aaa / AA+
NR
4.44 4.02
As of December 31, 2023
39 66
Holdings Report
City of Pittsburg - Account #10607
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
3130AWTR1 FHLB Note
4.375% Due 09/08/2028
1,250,000.00 09/07/2023
4.49%
1,243,625.00
1,244,026.27
101.84
3.94%
1,273,051.25
22,330.73
1.82%
29,024.98
Aaa / AA+
NR
4.69 4.14
3133EPWK7 FFCB Note
4.500% Due 09/22/2028
1,250,000.00 10/12/2023
4.71%
1,238,412.50
1,238,907.36
102.60
3.89%
1,282,518.75
15,468.75
1.83%
43,611.39
Aaa / AA+
AA+
4.73 4.18
TOTAL Agency 15,025,000.00 3.71%
15,067,998.25
15,026,331.92 4.23%
15,066,024.70
128,443.15
21.37%
39,692.78
Aaa / AA+
AA+
2.80 2.55
CMO
3137BM7C4 FHLMC K051 A2
3.308% Due 09/25/2025
500,000.00 05/16/2022
2.96%
503,886.72
501,970.87
97.54 4.82%
487,707.50
1,378.33
0.69%
(14,263.37)
NR / NR
AAA
1.74 1.51
3137BNGT5 FHLMC K054 A2
2.745% Due 01/25/2026
1,000,000.00 02/15/2023
4.92%
949,570.31
964,723.35
96.37 4.66%
963,671.00
2,287.50
1.36%
(1,052.35)
NR / AAA
NR
2.07 1.84
3137BSP72 FHLMC K058 A2
2.653% Due 08/25/2026
710,000.00 11/29/2022
4.53%
664,903.91
678,217.03
95.42 4.49%
677,459.28
1,569.69
0.95%
(757.75)
NR / NR
AAA
2.65 2.46
3137BVZ82 FHLMC K063
3.430% Due 01/25/2027
500,000.00 12/05/2022
4.29%
484,082.03
488,177.64
97.17 4.42%
485,864.50
1,429.17
0.69%
(2,313.14)
NR / NR
AAA
3.07 2.72
3137F2LJ3 FHLMC K066 A2
3.117% Due 06/25/2027
1,000,000.00 05/10/2023
3.97%
969,218.75
974,029.62
95.98 4.39%
959,837.00
2,597.50
1.35%
(14,192.62)
NR / NR
AAA
3.48 3.10
3137FAWS3 FHLMC K067 A2
3.194% Due 07/25/2027
1,000,000.00 05/10/2023
3.95%
971,562.50
975,850.40
96.21 4.34%
962,061.00
2,661.67
1.36%
(13,789.40)
Aaa / NR
NR
3.57 3.25
3137FBU79 FHLMC K069 A2
3.187% Due 09/25/2027
750,000.00 06/09/2023
4.98%
714,902.34
719,412.97
95.94 4.38%
719,553.00
1,991.88
1.01%
140.03
NR / AAA
NR
3.74 3.33
3137FETN0 FHLMC K073 A2
3.350% Due 01/25/2028
965,000.00 05/24/2023
4.34%
927,455.47
932,223.03
96.17 4.38%
928,059.80
538.79
1.31%
(4,163.23)
NR / NR
AAA
4.07 3.64
TOTAL CMO 6,425,000.00 4.29%
6,185,582.03
6,234,604.91 4.47%
6,184,213.08
14,454.53
8.72%
(50,391.83)
Aaa / AAA
AAA
3.13 2.81
Corporate
24422EVN6 John Deere Capital Corp Note
0.450% Due 01/17/2024
485,000.00 03/01/2021
0.47%
484,655.65
484,994.75
99.79 5.10%
483,997.02
994.25
0.68%
(997.73)
A2 / A
A+
0.05 0.04
91159HHG8 US Bancorp Callable Note Cont 12/29/2023
3.700% Due 01/30/2024
500,000.00 11/27/2019
3.70%
532,435.00
500,000.00
99.80 6.03%
498,994.50
7,759.72
0.71%
(1,005.50)
A3 / A
A
0.08 0.08
69371RR24 Paccar Financial Corp Note
0.350% Due 02/02/2024
225,000.00 01/28/2021
0.39%
224,739.00
224,992.37
99.56 5.50%
224,004.83
325.94
0.32%
(987.54)
A1 / A+
NR
0.09 0.09
As of December 31, 2023
40 67
Holdings Report
City of Pittsburg - Account #10607
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
637432NL5 National Rural Utilities Callable Note Cont 12/7/2023
2.950% Due 02/07/2024
500,000.00 04/06/2022
2.95%
501,470.00
500,000.00
99.70 5.91%
498,495.50
5,900.00
0.71%
(1,504.50)
A1 / A-
A+
0.10 0.10
808513BN4 Charles Schwab Corp Callable Note Cont 2/18/2024
0.750% Due 03/18/2024
725,000.00 Various
0.69%
726,181.50
725,049.33
98.97 5.60%
717,553.53
1,555.73
1.01%
(7,495.80)
A2 / A-
A
0.21 0.21
023135BW5 Amazon.com Inc Note
0.450% Due 05/12/2024
750,000.00 Various
0.67%
745,836.00
749,399.56
98.23 5.40%
736,746.00
459.38
1.04%
(12,653.56)
A1 / AA
AA-
0.36 0.36
91324PEB4 United Health Group Inc Callable Note Cont 5/15/2022
0.550% Due 05/15/2024
250,000.00 11/08/2021
0.78%
248,565.00
249,788.74
98.19 5.50%
245,483.25
175.69
0.35%
(4,305.49)
A2 / A+
A
0.37 0.36
14913R2L0 Caterpillar Financial Service Note
0.450% Due 05/17/2024
715,000.00 05/10/2021
0.50%
714,041.90
714,880.24
98.16 5.41%
701,859.02
393.25
0.99%
(13,021.22)
A2 / A
A+
0.38 0.37
24422EVQ9 John Deere Capital Corp Note
0.450% Due 06/07/2024
425,000.00 06/07/2021
0.49%
424,468.75
424,923.20
97.86 5.50%
415,914.78
127.50
0.59%
(9,008.42)
A2 / A
A+
0.44 0.42
89114QCA4 Toronto Dominion Bank Note
2.650% Due 06/12/2024
750,000.00 04/23/2021
0.65%
796,327.50
756,612.42
98.75 5.51%
740,610.00
1,048.96
1.04%
(16,002.42)
A1 / A
AA-
0.45 0.44
06051GJY6 Bank of America Corp Callable Note Cont 6/14/2023
5.720% Due 06/14/2024
540,000.00 06/07/2021
5.76%
540,036.00
540,000.00
99.86 6.07%
539,236.44
1,544.40
0.76%
(763.56)
A1 / A-
AA-
0.45 0.20
89236TJH9 Toyota Motor Credit Corp Note
0.500% Due 06/18/2024
425,000.00 06/15/2021
0.54%
424,494.25
424,922.01
97.68 5.62%
415,151.05
76.74 0.58%
(9,770.96)
A1 / A+
A+
0.47 0.45
06367TQW3 Bank of Montreal Note
0.625% Due 07/09/2024
750,000.00 09/10/2021
0.65%
749,392.50
749,887.83
97.56 5.44%
731,667.75
2,239.58
1.03%
(18,220.08)
A2 / A-
AA-
0.52 0.51
79466LAG9 Salesforce.com Inc Callable Note Cont 7/15/2022
0.625% Due 07/15/2024
115,000.00 06/29/2021
0.64%
114,941.35
114,989.54
97.48 5.43%
112,101.08
331.42
0.16%
(2,888.46)
A2 / A+
NR
0.54 0.52
037833DM9 Apple Inc Callable Note Cont 8/11/2024
1.800% Due 09/11/2024
750,000.00 08/18/2021
0.58%
776,857.50
755,509.86
97.88 4.95%
734,068.50
4,125.00
1.04%
(21,441.36)
Aaa / AA+
NR
0.70 0.67
78015K7C2 Royal Bank of Canada Note
2.250% Due 11/01/2024
500,000.00 05/19/2021
0.73%
525,750.00
506,233.13
97.48 5.38%
487,395.50
1,875.00
0.69%
(18,837.63)
A1 / A
AA-
0.84 0.81
46647PBY1 JP Morgan Chase & Co Callable Note Cont 2/16/2024
0.563% Due 02/16/2025
390,000.00 02/09/2021
0.56%
390,000.00
390,000.00
99.33 5.87%
387,385.44
823.39
0.55%
(2,614.56)
A1 / A-
AA-
1.13 1.07
57636QAN4 MasterCard Inc Callable Note 1x 02/03/2025
2.000% Due 03/03/2025
600,000.00 10/28/2021
1.04%
618,294.00
606,133.87
96.88 4.77%
581,273.40
3,933.33
0.82%
(24,860.47)
Aa3 / A+
NR
1.17 1.13
As of December 31, 2023
41 68
Holdings Report
City of Pittsburg - Account #10607
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
87612EBL9 Target Corp Callable Note Cont 4/15/25
2.250% Due 04/15/2025
500,000.00 02/17/2022
2.08%
502,465.00
500,968.79
96.96 4.70%
484,807.50
2,375.00
0.69%
(16,161.29)
A2 / A
A
1.29 1.24
437076CM2 Home Depot Callable Note Cont 3/15/2025
2.700% Due 04/15/2025
500,000.00 03/24/2022
2.76%
499,125.00
499,630.83
97.53 4.69%
487,660.00
2,850.00
0.69%
(11,970.83)
A2 / A
A
1.29 1.24
06406RBC0 Bank of NY Mellon Corp Callable Note Cont 3/25/2025
3.350% Due 04/25/2025
510,000.00 04/19/2022
3.35%
509,928.60
509,968.70
97.68 5.19%
498,155.25
3,132.25
0.70%
(11,813.45)
A1 / A
AA-
1.32 1.26
46647PCH7 JP Morgan Chase & Co Callable Note Cont 6/1/2024
0.824% Due 06/01/2025
600,000.00 05/24/2021
0.78%
600,777.60
600,107.84
97.86 6.00%
587,152.80
412.00
0.83%
(12,955.04)
A1 / A-
AA-
1.42 1.28
26442UAA2 Duke Energy Progress LLC Callable Note Cont 5/15/25
3.250% Due 08/15/2025
500,000.00 04/18/2022
3.21%
500,605.00
500,269.85
97.72 4.73%
488,586.50
6,138.89
0.70%
(11,683.35)
Aa3 / A
NR
1.62 1.54
57629WDK3 Mass Mutual Global funding Note
4.150% Due 08/26/2025
750,000.00 05/10/2023
4.74%
740,385.00
743,073.06
98.96 4.81%
742,194.75
10,807.29
1.06%
(878.31)
Aa3 / AA+
AA+
1.65 1.55
931142EW9 Wal-Mart Stores Note
3.900% Due 09/09/2025
155,000.00 09/06/2022
3.92%
154,891.50
154,938.92
99.01 4.51%
153,459.61
1,880.67
0.22%
(1,479.31)
Aa2 / AA
AA
1.69 1.60
857477BR3 State Street Bank Callable Note Cont 2/6/2025
1.746% Due 02/06/2026
190,000.00 02/02/2022
1.75%
190,000.00
190,000.00
96.09 5.45%
182,573.28
1,336.18
0.26%
(7,426.72)
A1 / A
AA-
2.10 1.06
00440EAV9 Chubb INA Holdings Inc Callable Note Cont 2/3/2026
3.350% Due 05/03/2026
750,000.00 08/24/2023
5.19%
715,927.50
720,312.72
97.29 4.58%
729,637.50
4,047.92
1.03%
9,324.78
A3 / A
A
2.34 2.21
69371RR32 Paccar Financial Corp Note
1.100% Due 05/11/2026
600,000.00 02/10/2023
4.54%
538,422.00
555,144.96
92.36 4.55%
554,167.80
916.67
0.78%
(977.16)
A1 / A+
NR
2.36 2.28
89236TJK2 Toyota Motor Credit Corp Note
1.125% Due 06/18/2026
250,000.00 01/11/2023
4.55%
223,112.50
230,693.40
92.34 4.44%
230,848.75
101.56
0.32%
155.35
A1 / A+
A+
2.47 2.38
857477CD3 State Street Bank Callable Note 7/03/2026
5.272% Due 08/03/2026
350,000.00 07/31/2023
5.27%
350,000.00
350,000.00
101.45
4.65%
355,085.85
7,585.82
0.51%
5,085.85
A1 / A
AA-
2.59 2.28
06428CAA2 Bank Of America NA Callable Note cont 7/17/2026
5.526% Due 08/18/2026
500,000.00 08/24/2023
5.48%
500,680.00
500,601.10
101.85
4.74%
509,229.50
10,207.75
0.73%
8,628.40
Aa1 / A+
AA
2.63 2.31
437076CV2 Home Depot Callable Note Cont 8/30/2026
4.950% Due 09/30/2026
500,000.00 11/30/2023
4.86%
501,140.00
501,108.08
101.43
4.38%
507,162.00
1,856.25
0.72%
6,053.92
A2 / A
A
2.75 2.47
61690U7W4 Morgan Stanley Bank NA Callable Note Cont 9/30/2026
5.882% Due 10/30/2026
335,000.00 10/30/2023
5.88%
335,000.00
335,000.00
102.82
4.77%
344,455.71
3,284.12
0.49%
9,455.71
Aa3 / A+
AA-
2.83 2.50
As of December 31, 2023
42 69
Holdings Report
City of Pittsburg - Account #10607
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
438516BL9 Honeywell Intl Callable Note 08/01/2026
2.500% Due 11/01/2026
750,000.00 05/10/2023
3.96%
714,847.50
721,329.52
95.26 4.29%
714,427.50
3,125.00
1.01%
(6,902.02)
A2 / A
A
2.84 2.68
713448FW3 Pepsico Inc. Callable Note Cont 10/10/2026
5.125% Due 11/10/2026
275,000.00 11/08/2023
5.13%
274,925.75
274,929.27
102.11
4.30%
280,812.68
1,996.61
0.40%
5,883.41
A1 / A+
NR
2.86 2.55
665859AW4 Northern Trust Company Callable Note Cont 4/10/2027
4.000% Due 05/10/2027
600,000.00 09/12/2022
4.08%
597,906.00
598,490.20
98.65 4.44%
591,880.80
3,400.00
0.84%
(6,609.40)
A2 / A+
A+
3.36 3.09
TOTAL Corporate 18,010,000.00 2.52%
17,988,624.85
17,904,884.09 5.12%
17,694,235.37
99,143.26
25.02%
(210,648.72)
A1 / A+
A+
1.29 1.19
Money Market Fund
94975H254 Wells Fargo Money Market Fund #743 458,697.55 Various
4.92%
458,697.55
458,697.55
1.00 4.92%
458,697.55
0.00 0.64%
0.00 Aaa / AAA
NR
0.00 0.00
TOTAL Money Market Fund 458,697.55 4.92%
458,697.55
458,697.55 4.92%
458,697.55
0.00 0.64%
0.00 Aaa / AAA
NR
0.00 0.00
Supranational
459058GQ0 Intl. Bank Recon & Development Note
2.500% Due 03/19/2024
750,000.00 01/26/2021
0.26%
802,455.00
753,570.24
99.38 5.34%
745,383.75
5,312.50
1.06%
(8,186.49)
Aaa / AAA
AAA
0.22 0.21
4581X0DZ8 Inter-American Dev Bank Note
0.500% Due 09/23/2024
895,000.00 09/15/2021
0.52%
894,337.70
894,839.26
96.79 5.05%
866,245.44
1,218.19
1.22%
(28,593.82)
Aaa / AAA
NR
0.73 0.71
4581X0EK0 Inter-American Dev Bank Note
4.500% Due 05/15/2026
750,000.00 06/27/2023
4.53%
749,422.50
749,521.52
100.62
4.22%
754,674.00
4,312.50
1.07%
5,152.48
Aaa / AAA
AAA
2.37 2.22
45950KDF4 International Finance Corp Note
4.375% Due 01/15/2027
710,000.00 11/29/2023
4.49%
707,685.40
707,738.38
100.78
4.10%
715,504.63
2,157.12
1.01%
7,766.25
Aaa / AAA
NR
3.04 2.81
TOTAL Supranational 3,105,000.00 2.33%
3,153,900.60
3,105,669.40 4.70%
3,081,807.82
13,000.31
4.35%
(23,861.58)
Aaa / AAA
AAA
1.55 1.45
US Treasury
912797JA6 US Treasury Bill
5.262% Due 01/23/2024
2,000,000.00 12/27/2023
5.36%
1,992,399.33
1,993,568.66
99.68 5.36%
1,993,568.66
0.00 2.80%
0.00 P-1 / A-1+
F-1+
0.06 0.06
91282CBV2 US Treasury Note
0.375% Due 04/15/2024
1,000,000.00 04/14/2021
0.36%
1,000,351.56
1,000,033.68
98.63 5.19%
986,250.00
799.18
1.39%
(13,783.68)
Aaa / AA+
AA+
0.29 0.29
91282CCC3 US Treasury Note
0.250% Due 05/15/2024
650,000.00 05/12/2021
0.36%
647,968.75
649,749.34
98.20 5.15%
638,320.15
209.82
0.90%
(11,429.19)
Aaa / AA+
AA+
0.37 0.37
As of December 31, 2023
43 70
Holdings Report
City of Pittsburg - Account #10607
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
91282CCG4 US Treasury Note
0.250% Due 06/15/2024
1,000,000.00 06/28/2021
0.46%
993,750.00
999,041.13
97.82 5.15%
978,164.00
116.12
1.38%
(20,877.13)
Aaa / AA+
AA+
0.46 0.45
91282CCL3 US Treasury Note
0.375% Due 07/15/2024
1,000,000.00 08/05/2021
0.37%
1,000,273.44
1,000,049.90
97.52 5.08%
975,234.00
1,732.34
1.37%
(24,815.90)
Aaa / AA+
AA+
0.54 0.53
91282CCT6 US Treasury Note
0.375% Due 08/15/2024
1,000,000.00 09/10/2021
0.42%
998,632.81
999,709.14
97.13 5.09%
971,328.00
1,416.44
1.37%
(28,381.14)
Aaa / AA+
AA+
0.62 0.61
91282CDB4 US Treasury Note
0.625% Due 10/15/2024
1,000,000.00 12/02/2021
0.86%
993,281.25
998,151.86
96.72 4.91%
967,188.00
1,331.97
1.36%
(30,963.86)
Aaa / AA+
AA+
0.79 0.77
91282CDH1 US Treasury Note
0.750% Due 11/15/2024
1,000,000.00 11/10/2021
0.80%
998,554.69
999,579.33
96.50 4.89%
965,039.00
968.41
1.36%
(34,540.33)
Aaa / AA+
AA+
0.88 0.85
91282CDN8 US Treasury Note
1.000% Due 12/15/2024
1,100,000.00 12/29/2021
0.99%
1,100,472.66
1,100,152.60
96.43 4.86%
1,060,769.60
510.93
1.49%
(39,383.00)
Aaa / AA+
AA+
0.96 0.93
912828ZC7 US Treasury Note
1.125% Due 02/28/2025
1,000,000.00 02/03/2022
1.42%
991,054.69
996,613.56
96.05 4.65%
960,508.00
3,801.51
1.36%
(36,105.56)
Aaa / AA+
AA+
1.16 1.13
912828ZF0 US Treasury Note
0.500% Due 03/31/2025
750,000.00 03/03/2021
0.54%
748,886.72
749,659.58
95.08 4.60%
713,115.00
952.87
1.00%
(36,544.58)
Aaa / AA+
AA+
1.25 1.22
912828ZL7 US Treasury Note
0.375% Due 04/30/2025
500,000.00 01/13/2021
0.39%
499,609.38
499,879.10
94.63 4.57%
473,164.00
319.37
0.67%
(26,715.10)
Aaa / AA+
AA+
1.33 1.30
912828ZT0 US Treasury Note
0.250% Due 05/31/2025
1,250,000.00 10/06/2021
0.72%
1,228,759.77
1,241,771.80
94.18 4.55%
1,177,197.50
273.22
1.66%
(64,574.30)
Aaa / AA+
AA+
1.42 1.38
9128285C0 US Treasury Note
3.000% Due 09/30/2025
750,000.00 04/29/2022
2.90%
752,314.45
751,184.14
97.70 4.38%
732,714.75
5,717.21
1.04%
(18,469.39)
Aaa / AA+
AA+
1.75 1.67
9128285J5 US Treasury Note
3.000% Due 10/31/2025
1,000,000.00 06/02/2022
2.87%
1,004,023.44
1,002,160.26
97.67 4.33%
976,719.00
5,109.89
1.38%
(25,441.26)
Aaa / AA+
AA+
1.84 1.75
912828M56 US Treasury Note
2.250% Due 11/15/2025
1,000,000.00 08/25/2022
3.37%
966,093.75
980,295.77
96.31 4.32%
963,125.00
2,905.22
1.36%
(17,170.77)
Aaa / AA+
AA+
1.88 1.80
9128285T3 US Treasury Note
2.625% Due 12/31/2025
1,000,000.00 08/25/2022
3.34%
977,421.88
986,523.28
96.91 4.25%
969,063.00
72.12 1.36%
(17,460.28)
Aaa / AA+
AA+
2.00 1.92
9128286L9 US Treasury Note
2.250% Due 03/31/2026
1,000,000.00 08/29/2022
3.40%
961,640.63
975,970.45
95.93 4.16%
959,297.00
5,717.21
1.36%
(16,673.45)
Aaa / AA+
AA+
2.25 2.15
912828U24 US Treasury Note
2.000% Due 11/15/2026
1,500,000.00 05/09/2023
3.65%
1,418,964.84
1,433,847.56
94.54 4.03%
1,418,086.50
3,873.63
2.00%
(15,761.06)
Aaa / AA+
AA+
2.88 2.74
912828V98 US Treasury Note
2.250% Due 02/15/2027
1,000,000.00 11/29/2022
4.06%
930,585.94
948,503.61
94.93 3.99%
949,297.00
8,498.64
1.35%
793.39
Aaa / AA+
AA+
3.13 2.95
91282CEF4 US Treasury Note
2.500% Due 03/31/2027
1,100,000.00 11/03/2022
4.47%
1,014,148.44
1,036,732.53
95.57 3.96%
1,051,316.20
6,987.70
1.49%
14,583.67
Aaa / AA+
AA+
3.25 3.06
As of December 31, 2023
44 71
Holdings Report
City of Pittsburg - Account #10607
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
91282CEW7 US Treasury Note
3.250% Due 06/30/2027
1,250,000.00 11/03/2022
4.44%
1,187,792.97
1,203,280.65
97.72 3.95%
1,221,533.75
111.61
1.72%
18,253.10
Aaa / AA+
AA+
3.50 3.27
91282CFH9 US Treasury Note
3.125% Due 08/31/2027
800,000.00 01/30/2023
3.72%
779,968.75
783,970.21
97.19 3.96%
777,500.00
8,447.80
1.11%
(6,470.21)
Aaa / AA+
AA+
3.67 3.39
9128283F5 US Treasury Note
2.250% Due 11/15/2027
1,500,000.00 05/16/2023
3.59%
1,417,031.25
1,428,595.37
94.02 3.93%
1,410,351.00
4,357.83
1.99%
(18,244.37)
Aaa / AA+
AA+
3.88 3.64
TOTAL US Treasury 25,150,000.00 2.43%
24,603,981.39
24,759,023.51 4.56%
24,288,849.11
64,231.04
34.24%
(470,174.40)
Aaa / AA+
AA+
1.70 1.61
TOTAL PORTFOLIO 72,245,573.12 2.95%
71,510,400.60
71,550,500.10 4.66%
70,792,498.10
323,969.44
100.00%
(758,002.00)
Aa1 / AA
AA+
2.02 1.76
TOTAL MARKET VALUE PLUS ACCRUALS 71,116,467.54
As of December 31, 2023
45 72
Holdings Report
City of Pittsburg Liquidity - Account #10617
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
Commercial Paper
62479LDC6 MUFG Bank Ltd Discount CP
5.630% Due 04/12/2024
2,000,000.00 08/15/2023
5.89%
1,924,933.33
1,968,096.67
98.40 5.89%
1,968,096.67
0.00 6.95%
0.00 P-1 / A-1
NR
0.28 0.27
89233GEP7 Toyota Motor Credit Discount CP
5.650% Due 05/23/2024
1,000,000.00 08/29/2023
5.92%
957,938.89
977,556.95
97.76 5.92%
977,556.95
0.00 3.45%
0.00 P-1 / A-1+
F-1
0.39 0.38
TOTAL Commercial Paper 3,000,000.00 5.90%
2,882,872.22
2,945,653.62 5.90%
2,945,653.62
0.00 10.40%
0.00 P-1 / A-1
F-1
0.32 0.31
Money Market Fund
94975H254 Wells Fargo Money Market Fund #743 2,038,828.02 Various
4.92%
2,038,828.02
2,038,828.02
1.00 4.92%
2,038,828.02
0.00 7.20%
0.00 Aaa / AAA
NR
0.00 0.00
TOTAL Money Market Fund 2,038,828.02 4.92%
2,038,828.02
2,038,828.02 4.92%
2,038,828.02
0.00 7.20%
0.00 Aaa / AAA
NR
0.00 0.00
Negotiable CD
96130ASC3 Westpac Banking Corp NY Yankee CD
5.380% Due 02/16/2024
2,000,000.00 02/22/2023
5.44%
1,998,772.63
1,999,842.73
99.98 5.31%
1,999,522.00
95,345.56
7.40%
(320.73)
P-1 / A-1+
F-1
0.13 0.13
21684XH82 Cooperative Rabobank UA Yankee CD
5.900% Due 09/06/2024
2,000,000.00 09/07/2023
5.90%
1,999,981.55
1,999,987.38
100.43
5.16%
2,008,630.00
38,022.22
7.23%
8,642.62
P-1 / A-1
F-1+
0.68 0.67
89115BL57 Toronto Dominion Bank Yankee CD
5.650% Due 11/20/2024
1,500,000.00 11/20/2023
5.65%
1,500,000.00
1,500,000.00
100.36
5.20%
1,505,373.00
9,652.08
5.35%
5,373.00
P-1 / A-1+
F-1+
0.89 0.87
TOTAL Negotiable CD 5,500,000.00 5.66%
5,498,754.18
5,499,830.11 5.23%
5,513,525.00
143,019.86
19.98%
13,694.89
Aaa / AAA
AAA
0.53 0.52
US Treasury
912797JA6 US Treasury Bill
5.268% Due 01/23/2024
800,000.00 11/29/2023
5.38%
793,679.00
797,424.78
99.68 5.38%
797,424.78
0.00 2.82%
0.00 P-1 / A-1+
F-1+
0.06 0.06
912797GN1 US Treasury Bill
5.276% Due 02/15/2024
2,000,000.00 08/15/2023
5.50%
1,946,653.78
1,986,810.00
99.34 5.50%
1,986,810.00
0.00 7.02%
0.00 P-1 / A-1+
F-1+
0.13 0.12
912796Z28 US Treasury Bill
5.338% Due 02/22/2024
1,000,000.00 08/25/2023
5.56%
973,609.03
992,290.28
99.23 5.56%
992,290.28
0.00 3.50%
0.00 P-1 / A-1+
F-1+
0.15 0.14
912797GQ4 US Treasury Bill
5.298% Due 03/07/2024
2,000,000.00 09/07/2023
5.52%
1,946,725.67
1,980,574.00
99.03 5.52%
1,980,574.00
0.00 7.00%
0.00 P-1 / A-1+
F-1+
0.18 0.18
912797GZ4 US Treasury Bill
5.330% Due 04/04/2024
1,300,000.00 10/05/2023
5.55%
1,265,162.53
1,281,907.61
98.61 5.55%
1,281,907.61
0.00 4.53%
0.00 P-1 / A-1+
F-1+
0.26 0.25
As of December 31, 2023
46 73
Holdings Report
City of Pittsburg Liquidity - Account #10617
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
912797HG5 US Treasury Bill
5.313% Due 04/25/2024
1,400,000.00 10/30/2023
5.53%
1,363,432.29
1,376,241.32
98.30 5.53%
1,376,241.32
0.00 4.86%
0.00 P-1 / A-1+
F-1+
0.32 0.31
912828WJ5 US Treasury Note
2.500% Due 05/15/2024
1,400,000.00 08/30/2023
5.45%
1,371,726.56
1,385,205.76
99.02 5.15%
1,386,327.60
4,519.23
4.91%
1,121.84
Aaa / AA+
AA+
0.37 0.37
91282CEX5 US Treasury Note
3.000% Due 06/30/2024
1,500,000.00 10/19/2023
5.53%
1,474,394.53
1,481,753.58
98.95 5.15%
1,484,296.50
123.63
5.24%
2,542.92
Aaa / AA+
AA+
0.50 0.49
91282CFA4 US Treasury Note
3.000% Due 07/31/2024
3,000,000.00 Various
5.47%
2,945,468.75
2,958,309.26
98.82 5.07%
2,964,609.00
37,663.05
10.60%
6,299.74
Aaa / AA+
AA+
0.58 0.56
912797GK7 US Treasury Bill
5.072% Due 08/08/2024
2,000,000.00 08/15/2023
5.35%
1,899,113.61
1,938,002.78
96.90 5.35%
1,938,002.78
0.00 6.85%
0.00 P-1 / A-1+
F-1+
0.61 0.59
912797GW1 US Treasury Bill
5.178% Due 10/03/2024
1,500,000.00 10/19/2023
5.46%
1,424,710.52
1,440,458.75
96.03 5.46%
1,440,458.75
0.00 5.09%
0.00 P-1 / A-1+
F-1+
0.76 0.74
TOTAL US Treasury 17,900,000.00 5.48%
17,404,676.27
17,618,978.12 5.36%
17,628,942.62
42,305.91
62.42%
9,964.50
Aaa / AAA
AAA
0.39 0.38
TOTAL PORTFOLIO 28,438,828.02 5.52%
27,825,130.69
28,103,289.87 5.36%
28,126,949.26
185,325.77
100.00%
23,659.39
Aaa / AAA
AAA
0.38 0.37
TOTAL MARKET VALUE PLUS ACCRUALS 28,312,275.03
As of December 31, 2023
47 74
Holdings Report
City of Pittsburg Managed/Reporting Consolidated - Account #10639 CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
ABS
58769KAD6 Mercedes-Benz Auto Lease Trust 2021-B A3
0.400% Due 11/15/2024
24,789.81 06/22/2021
0.40%
24,787.94
24,789.78
99.81 6.17%
24,742.91
4.41 0.01%
(46.87)
NR / AAA
AAA
0.88 0.03
05601XAC3 BMW Vehicle Lease Trust 2022-1 A3
1.100% Due 03/25/2025
48,100.57 01/11/2022
1.11%
48,093.38
48,099.81
99.43 6.24%
47,827.60
8.82 0.02%
(272.21)
NR / AAA
AAA
1.23 0.11
43813GAC5 Honda Auto Receivables Trust 2021-1 A3
0.270% Due 04/21/2025
23,283.45 02/17/2021
0.27%
23,283.02
23,283.42
98.79 6.20%
23,000.74
1.75 0.01%
(282.68)
Aaa / NR
AAA
1.31 0.20
89240BAC2 Toyota Auto Receivables Owners 2021-A A3
0.260% Due 05/15/2025
87,541.26 02/02/2021
0.27%
87,525.01
87,540.20
98.89 6.00%
86,572.26
10.12 0.04%
(967.94)
Aaa / NR
AAA
1.37 0.19
36266FAC3 GM Financial Auto Lease Trust 2022-2 A3
3.420% Due 06/20/2025
252,933.10 05/03/2022
3.45%
252,906.72
252,926.48
99.38 5.86%
251,371.74
264.32
0.11%
(1,554.74)
NR / AAA
AAA
1.47 0.25
47788UAC6 John Deere Owner Trust 2021-A A3
0.360% Due 09/15/2025
56,978.59 03/02/2021
0.37%
56,967.64
56,976.19
98.22 5.62%
55,966.82
9.12 0.02%
(1,009.37)
Aaa / NR
AAA
1.71 0.34
43815EAC8 Honda Auto Receivables 2021-3 A3
0.410% Due 11/18/2025
188,061.64 08/17/2021
0.41%
188,058.89
188,060.89
97.48 5.71%
183,329.05
27.84 0.08%
(4,731.84)
NR / AAA
AAA
1.88 0.47
43815GAC3 Honda Auto Receivables Trust 2021-4 A3
0.880% Due 01/21/2026
128,862.17 11/16/2021
0.89%
128,835.00
128,852.61
97.04 5.75%
125,041.92
31.50 0.06%
(3,810.69)
Aaa / NR
AAA
2.06 0.61
47789QAC4 John Deere Owner Trust 2021-B A3
0.520% Due 03/16/2026
143,186.85 07/13/2021
0.52%
143,174.08
143,182.64
97.29 5.63%
139,308.92
33.09 0.06%
(3,873.72)
Aaa / NR
AAA
2.21 0.53
89238JAC9 Toyota Auto Receivables Trust 2021-D A3
0.710% Due 04/15/2026
123,797.18 11/09/2021
0.71%
123,794.54
123,796.27
97.03 5.67%
120,121.64
39.06 0.05%
(3,674.63)
NR / AAA
AAA
2.29 0.60
44935FAD6 Hyundai Auto Receivables Trust 2021-C A3
0.740% Due 05/15/2026
237,536.86 07/27/2022
3.53%
226,912.65
233,056.06
97.28 5.70%
231,087.26
78.12 0.10%
(1,968.80)
NR / AAA
AAA
2.37 0.55
05602RAD3 BMW Vehicle Owner Trust 2022-A A3
3.210% Due 08/25/2026
190,375.91 05/10/2022
3.23%
190,366.01
190,371.19
98.59 5.24%
187,688.56
101.85
0.08%
(2,682.63)
Aaa / AAA
NR
2.65 0.70
47787JAC2 John Deere Owner Trust 2022-A A3
2.320% Due 09/16/2026
194,359.57 03/10/2022
2.34%
194,316.57
194,338.62
97.77 5.39%
190,018.35
200.41
0.08%
(4,320.27)
Aaa / NR
AAA
2.71 0.73
448977AD0 Hyundai Auto Receivables Trust 2022-A A3
2.220% Due 10/15/2026
132,068.61 05/02/2022
3.34%
128,849.44
130,566.52
97.72 5.40%
129,063.39
130.31
0.06%
(1,503.13)
NR / AAA
AAA
2.79 0.72
36265WAD5 GM Financial Securitized Auto 2022-3 A3
3.640% Due 04/16/2027
165,000.00 07/06/2022
3.67%
164,998.86
164,999.39
98.38 5.18%
162,334.59
250.25
0.07%
(2,664.80)
Aaa / NR
AAA
3.29 1.07
02582JJT8 American Express Credit Trust 2022-2 A
3.390% Due 05/17/2027
510,000.00 05/17/2022
3.42%
509,887.19
509,948.11
97.95 4.99%
499,564.89
768.40
0.22%
(10,383.22)
NR / AAA
AAA
3.38 1.30
161571HS6 Chase Issuance Trust 22-A1 A
3.970% Due 09/15/2027
1,000,000.00 05/11/2023
4.28%
993,945.31
995,581.14
98.65 4.85%
986,511.00
1,764.44
0.43%
(9,070.14)
NR / AAA
AAA
3.71 1.60
As of December 31, 2023
48 75
Holdings Report
City of Pittsburg Managed/Reporting Consolidated - Account #10639 CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
05592XAD2 BMW Vehicle Owner Trust 2023-A A3
5.470% Due 02/25/2028
135,000.00 07/11/2023
5.54%
134,976.08
134,979.34
101.04
4.95%
136,403.46
123.08
0.06%
1,424.12
NR / AAA
AAA
4.16 1.78
438123AC5 Honda Auto Receivables OT 2023-4 A3
5.670% Due 06/21/2028
235,000.00 11/01/2023
5.74%
234,958.62
234,960.31
102.09
3.84%
239,910.33
370.13
0.11%
4,950.02
Aaa / NR
AAA
4.48 1.09
89239FAD4 Toyota Auto Receivables Owner 2023-D A3
5.540% Due 08/15/2028
195,000.00 11/07/2023
5.61%
194,978.98
194,979.75
101.95
3.86%
198,805.04
480.13
0.09%
3,825.29
NR / AAA
AAA
4.63 1.11
TOTAL ABS 4,071,875.57 3.32%
4,051,615.93
4,061,288.72 5.13%
4,018,670.47
4,697.15
1.77%
(42,618.25)
Aaa / AAA
AAA
3.05 1.01
Agency
3135G0V34 FNMA Note
2.500% Due 02/05/2024
600,000.00 01/30/2020
1.44%
624,768.00
600,591.32
99.73 5.27%
598,407.00
6,083.33
0.27%
(2,184.32)
Aaa / AA+
AA+
0.10 0.09
3130A7PH2 FHLB Note
1.875% Due 03/08/2024
1,000,000.00 03/03/2020
0.85%
1,040,350.00
1,001,845.36
99.35 5.35%
993,546.00
5,885.42
0.44%
(8,299.36)
Aaa / AA+
NR
0.19 0.18
3133ENKS8 FFCB Note
1.125% Due 01/06/2025
425,000.00 01/06/2022
1.20%
424,043.75
424,674.82
96.64 4.55%
410,738.70
2,324.22
0.18%
(13,936.12)
Aaa / AA+
AA+
1.02 0.98
3130AWER7 FHLB Note
4.625% Due 06/06/2025
1,000,000.00 06/13/2023
4.74%
997,830.00
998,431.11
100.56
4.22%
1,005,580.00
3,211.81
0.44%
7,148.89
Aaa / AA+
NR
1.43 1.37
3135G05X7 FNMA Note
0.375% Due 08/25/2025
1,000,000.00 03/07/2022
1.78%
953,120.00
977,707.93
93.49 4.51%
934,917.00
1,312.50
0.41%
(42,790.93)
Aaa / AA+
AA+
1.65 1.61
3133EPJX4 FFCB Note
3.625% Due 02/17/2026
1,000,000.00 05/15/2023
3.89%
993,250.00
994,785.00
98.76 4.24%
987,648.00
13,493.06
0.44%
(7,137.00)
Aaa / AA+
AA+
2.13 2.00
3133EPHH1 FFCB Note
4.000% Due 04/28/2026
1,500,000.00 05/09/2023
3.90%
1,504,095.00
1,503,203.47
99.59 4.18%
1,493,901.00
10,500.00
0.66%
(9,302.47)
Aaa / AA+
AA+
2.33 2.18
3133EPVP7 FFCB Note
4.750% Due 07/08/2026
1,000,000.00 12/06/2023
4.48%
1,006,424.00
1,006,253.87
101.33
4.19%
1,013,306.00
14,909.72
0.45%
7,052.13
Aaa / AA+
AA+
2.52 2.32
3133EPZY4 FFCB Note
5.000% Due 07/30/2026
1,000,000.00 11/09/2023
4.85%
1,003,740.00
1,003,544.15
102.09
4.14%
1,020,853.00
8,472.22
0.45%
17,308.85
Aaa / AA+
NR
2.58 2.39
3130AXU63 Federal Home Loan Banks Note
4.625% Due 11/17/2026
1,000,000.00 11/30/2023
4.53%
1,002,530.00
1,002,457.51
101.41
4.10%
1,014,119.00
5,652.78
0.45%
11,661.49
Aaa / AA+
NR
2.88 2.66
3130ATUS4 FHLB Note
4.250% Due 12/10/2027
1,000,000.00 05/15/2023
3.66%
1,024,620.00
1,021,227.19
101.03
3.96%
1,010,292.00
2,479.17
0.45%
(10,935.19)
Aaa / AA+
NR
3.95 3.59
3130ATS57 FHLB Note
4.500% Due 03/10/2028
1,000,000.00 04/24/2023
3.76%
1,032,720.00
1,028,108.70
102.36
3.88%
1,023,647.00
13,875.00
0.46%
(4,461.70)
Aaa / AA+
NR
4.19 3.75
3130AWC24 FHLB Note
4.000% Due 06/09/2028
1,000,000.00 07/06/2023
4.49%
978,470.00
980,567.86
100.35
3.91%
1,003,500.00
2,444.44
0.44%
22,932.14
Aaa / AA+
NR
4.44 4.02
As of December 31, 2023
49 76
Holdings Report
City of Pittsburg Managed/Reporting Consolidated - Account #10639 CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
3130AWTR1 FHLB Note
4.375% Due 09/08/2028
1,250,000.00 09/07/2023
4.49%
1,243,625.00
1,244,026.27
101.84
3.94%
1,273,051.25
22,330.73
0.57%
29,024.98
Aaa / AA+
NR
4.69 4.14
3133EPWK7 FFCB Note
4.500% Due 09/22/2028
1,250,000.00 10/12/2023
4.71%
1,238,412.50
1,238,907.36
102.60
3.89%
1,282,518.75
15,468.75
0.57%
43,611.39
Aaa / AA+
AA+
4.73 4.18
TOTAL Agency 15,025,000.00 3.71%
15,067,998.25
15,026,331.92 4.23%
15,066,024.70
128,443.15
6.68%
39,692.78
Aaa / AA+
AA+
2.80 2.55
Cash
90PITT$00 City of Pittsburg Cash Equivalents 19,876,102.85 Various
0.00%
19,876,102.85
19,876,102.85
1.00 0.00%
19,876,102.85
0.00 8.74%
0.00 NR / NR
NR
0.00 0.00
90PITT$02 City of Pittsburg Additional Bonded Debt Funds 64,286,798.26 Various
0.00%
64,286,798.26
64,286,798.26
1.00 0.00%
64,304,065.25
0.00 28.28%
17,266.99
NR / NR
NR
0.00 0.00
TOTAL Cash 84,162,901.11 0.00%
84,162,901.11
84,162,901.11 0.00%
84,180,168.10
0.00 37.02%
17,266.99
NR / NR
NR
0.00 0.00
CMO
3137BM7C4 FHLMC K051 A2
3.308% Due 09/25/2025
500,000.00 05/16/2022
2.96%
503,886.72
501,970.87
97.54 4.82%
487,707.50
1,378.33
0.22%
(14,263.37)
NR / NR
AAA
1.74 1.51
3137BNGT5 FHLMC K054 A2
2.745% Due 01/25/2026
1,000,000.00 02/15/2023
4.92%
949,570.31
964,723.35
96.37 4.66%
963,671.00
2,287.50
0.42%
(1,052.35)
NR / AAA
NR
2.07 1.84
3137BSP72 FHLMC K058 A2
2.653% Due 08/25/2026
710,000.00 11/29/2022
4.53%
664,903.91
678,217.03
95.42 4.49%
677,459.28
1,569.69
0.30%
(757.75)
NR / NR
AAA
2.65 2.46
3137BVZ82 FHLMC K063
3.430% Due 01/25/2027
500,000.00 12/05/2022
4.29%
484,082.03
488,177.64
97.17 4.42%
485,864.50
1,429.17
0.21%
(2,313.14)
NR / NR
AAA
3.07 2.72
3137F2LJ3 FHLMC K066 A2
3.117% Due 06/25/2027
1,000,000.00 05/10/2023
3.97%
969,218.75
974,029.62
95.98 4.39%
959,837.00
2,597.50
0.42%
(14,192.62)
NR / NR
AAA
3.48 3.10
3137FAWS3 FHLMC K067 A2
3.194% Due 07/25/2027
1,000,000.00 05/10/2023
3.95%
971,562.50
975,850.40
96.21 4.34%
962,061.00
2,661.67
0.42%
(13,789.40)
Aaa / NR
NR
3.57 3.25
3137FBU79 FHLMC K069 A2
3.187% Due 09/25/2027
750,000.00 06/09/2023
4.98%
714,902.34
719,412.97
95.94 4.38%
719,553.00
1,991.88
0.32%
140.03
NR / AAA
NR
3.74 3.33
3137FETN0 FHLMC K073 A2
3.350% Due 01/25/2028
965,000.00 05/24/2023
4.34%
927,455.47
932,223.03
96.17 4.38%
928,059.80
538.79
0.41%
(4,163.23)
NR / NR
AAA
4.07 3.64
TOTAL CMO 6,425,000.00 4.29%
6,185,582.03
6,234,604.91 4.47%
6,184,213.08
14,454.53
2.73%
(50,391.83)
Aaa / AAA
AAA
3.13 2.81
As of December 31, 2023
50 77
Holdings Report
City of Pittsburg Managed/Reporting Consolidated - Account #10639 CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
Commercial Paper
62479LDC6 MUFG Bank Ltd Discount CP
5.630% Due 04/12/2024
2,000,000.00 08/15/2023
5.89%
1,924,933.33
1,968,096.67
98.40 5.89%
1,968,096.67
0.00 0.87%
0.00 P-1 / A-1
NR
0.28 0.27
89233GEP7 Toyota Motor Credit Discount CP
5.650% Due 05/23/2024
1,000,000.00 08/29/2023
5.92%
957,938.89
977,556.95
97.76 5.92%
977,556.95
0.00 0.43%
0.00 P-1 / A-1+
F-1
0.39 0.38
TOTAL Commercial Paper 3,000,000.00 5.90%
2,882,872.22
2,945,653.62 5.90%
2,945,653.62
0.00 1.30%
0.00 P-1 / A-1
F-1
0.32 0.31
Corporate
24422EVN6 John Deere Capital Corp Note
0.450% Due 01/17/2024
485,000.00 03/01/2021
0.47%
484,655.65
484,994.75
99.79 5.10%
483,997.02
994.25
0.21%
(997.73)
A2 / A
A+
0.05 0.04
91159HHG8 US Bancorp Callable Note Cont 12/29/2023
3.700% Due 01/30/2024
500,000.00 11/27/2019
3.70%
532,435.00
500,000.00
99.80 6.03%
498,994.50
7,759.72
0.22%
(1,005.50)
A3 / A
A
0.08 0.08
69371RR24 Paccar Financial Corp Note
0.350% Due 02/02/2024
225,000.00 01/28/2021
0.39%
224,739.00
224,992.37
99.56 5.50%
224,004.83
325.94
0.10%
(987.54)
A1 / A+
NR
0.09 0.09
637432NL5 National Rural Utilities Callable Note Cont 12/7/2023
2.950% Due 02/07/2024
500,000.00 04/06/2022
2.95%
501,470.00
500,000.00
99.70 5.91%
498,495.50
5,900.00
0.22%
(1,504.50)
A1 / A-
A+
0.10 0.10
808513BN4 Charles Schwab Corp Callable Note Cont 2/18/2024
0.750% Due 03/18/2024
725,000.00 Various
0.69%
726,181.50
725,049.33
98.97 5.60%
717,553.53
1,555.73
0.32%
(7,495.80)
A2 / A-
A
0.21 0.21
023135BW5 Amazon.com Inc Note
0.450% Due 05/12/2024
750,000.00 Various
0.67%
745,836.00
749,399.56
98.23 5.40%
736,746.00
459.38
0.32%
(12,653.56)
A1 / AA
AA-
0.36 0.36
91324PEB4 United Health Group Inc Callable Note Cont 5/15/2022
0.550% Due 05/15/2024
250,000.00 11/08/2021
0.78%
248,565.00
249,788.74
98.19 5.50%
245,483.25
175.69
0.11%
(4,305.49)
A2 / A+
A
0.37 0.36
14913R2L0 Caterpillar Financial Service Note
0.450% Due 05/17/2024
715,000.00 05/10/2021
0.50%
714,041.90
714,880.24
98.16 5.41%
701,859.02
393.25
0.31%
(13,021.22)
A2 / A
A+
0.38 0.37
24422EVQ9 John Deere Capital Corp Note
0.450% Due 06/07/2024
425,000.00 06/07/2021
0.49%
424,468.75
424,923.20
97.86 5.50%
415,914.78
127.50
0.18%
(9,008.42)
A2 / A
A+
0.44 0.42
89114QCA4 Toronto Dominion Bank Note
2.650% Due 06/12/2024
750,000.00 04/23/2021
0.65%
796,327.50
756,612.42
98.75 5.51%
740,610.00
1,048.96
0.33%
(16,002.42)
A1 / A
AA-
0.45 0.44
06051GJY6 Bank of America Corp Callable Note Cont 6/14/2023
5.720% Due 06/14/2024
540,000.00 06/07/2021
5.76%
540,036.00
540,000.00
99.86 6.07%
539,236.44
1,544.40
0.24%
(763.56)
A1 / A-
AA-
0.45 0.20
As of December 31, 2023
51 78
Holdings Report
City of Pittsburg Managed/Reporting Consolidated - Account #10639 CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
89236TJH9 Toyota Motor Credit Corp Note
0.500% Due 06/18/2024
425,000.00 06/15/2021
0.54%
424,494.25
424,922.01
97.68 5.62%
415,151.05
76.74 0.18%
(9,770.96)
A1 / A+
A+
0.47 0.45
06367TQW3 Bank of Montreal Note
0.625% Due 07/09/2024
750,000.00 09/10/2021
0.65%
749,392.50
749,887.83
97.56 5.44%
731,667.75
2,239.58
0.32%
(18,220.08)
A2 / A-
AA-
0.52 0.51
79466LAG9 Salesforce.com Inc Callable Note Cont 7/15/2022
0.625% Due 07/15/2024
115,000.00 06/29/2021
0.64%
114,941.35
114,989.54
97.48 5.43%
112,101.08
331.42
0.05%
(2,888.46)
A2 / A+
NR
0.54 0.52
037833DM9 Apple Inc Callable Note Cont 8/11/2024
1.800% Due 09/11/2024
750,000.00 08/18/2021
0.58%
776,857.50
755,509.86
97.88 4.95%
734,068.50
4,125.00
0.32%
(21,441.36)
Aaa / AA+
NR
0.70 0.67
78015K7C2 Royal Bank of Canada Note
2.250% Due 11/01/2024
500,000.00 05/19/2021
0.73%
525,750.00
506,233.13
97.48 5.38%
487,395.50
1,875.00
0.22%
(18,837.63)
A1 / A
AA-
0.84 0.81
46647PBY1 JP Morgan Chase & Co Callable Note Cont 2/16/2024
0.563% Due 02/16/2025
390,000.00 02/09/2021
0.56%
390,000.00
390,000.00
99.33 5.87%
387,385.44
823.39
0.17%
(2,614.56)
A1 / A-
AA-
1.13 1.07
57636QAN4 MasterCard Inc Callable Note 1x 02/03/2025
2.000% Due 03/03/2025
600,000.00 10/28/2021
1.04%
618,294.00
606,133.87
96.88 4.77%
581,273.40
3,933.33
0.26%
(24,860.47)
Aa3 / A+
NR
1.17 1.13
87612EBL9 Target Corp Callable Note Cont 4/15/25
2.250% Due 04/15/2025
500,000.00 02/17/2022
2.08%
502,465.00
500,968.79
96.96 4.70%
484,807.50
2,375.00
0.21%
(16,161.29)
A2 / A
A
1.29 1.24
437076CM2 Home Depot Callable Note Cont 3/15/2025
2.700% Due 04/15/2025
500,000.00 03/24/2022
2.76%
499,125.00
499,630.83
97.53 4.69%
487,660.00
2,850.00
0.22%
(11,970.83)
A2 / A
A
1.29 1.24
06406RBC0 Bank of NY Mellon Corp Callable Note Cont 3/25/2025
3.350% Due 04/25/2025
510,000.00 04/19/2022
3.35%
509,928.60
509,968.70
97.68 5.19%
498,155.25
3,132.25
0.22%
(11,813.45)
A1 / A
AA-
1.32 1.26
46647PCH7 JP Morgan Chase & Co Callable Note Cont 6/1/2024
0.824% Due 06/01/2025
600,000.00 05/24/2021
0.78%
600,777.60
600,107.84
97.86 6.00%
587,152.80
412.00
0.26%
(12,955.04)
A1 / A-
AA-
1.42 1.28
26442UAA2 Duke Energy Progress LLC Callable Note Cont 5/15/25
3.250% Due 08/15/2025
500,000.00 04/18/2022
3.21%
500,605.00
500,269.85
97.72 4.73%
488,586.50
6,138.89
0.22%
(11,683.35)
Aa3 / A
NR
1.62 1.54
57629WDK3 Mass Mutual Global funding Note
4.150% Due 08/26/2025
750,000.00 05/10/2023
4.74%
740,385.00
743,073.06
98.96 4.81%
742,194.75
10,807.29
0.33%
(878.31)
Aa3 / AA+
AA+
1.65 1.55
931142EW9 Wal-Mart Stores Note
3.900% Due 09/09/2025
155,000.00 09/06/2022
3.92%
154,891.50
154,938.92
99.01 4.51%
153,459.61
1,880.67
0.07%
(1,479.31)
Aa2 / AA
AA
1.69 1.60
857477BR3 State Street Bank Callable Note Cont 2/6/2025
1.746% Due 02/06/2026
190,000.00 02/02/2022
1.75%
190,000.00
190,000.00
96.09 5.45%
182,573.28
1,336.18
0.08%
(7,426.72)
A1 / A
AA-
2.10 1.06
As of December 31, 2023
52 79
Holdings Report
City of Pittsburg Managed/Reporting Consolidated - Account #10639 CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
00440EAV9 Chubb INA Holdings Inc Callable Note Cont 2/3/2026
3.350% Due 05/03/2026
750,000.00 08/24/2023
5.19%
715,927.50
720,312.72
97.29 4.58%
729,637.50
4,047.92
0.32%
9,324.78
A3 / A
A
2.34 2.21
69371RR32 Paccar Financial Corp Note
1.100% Due 05/11/2026
600,000.00 02/10/2023
4.54%
538,422.00
555,144.96
92.36 4.55%
554,167.80
916.67
0.24%
(977.16)
A1 / A+
NR
2.36 2.28
89236TJK2 Toyota Motor Credit Corp Note
1.125% Due 06/18/2026
250,000.00 01/11/2023
4.55%
223,112.50
230,693.40
92.34 4.44%
230,848.75
101.56
0.10%
155.35
A1 / A+
A+
2.47 2.38
857477CD3 State Street Bank Callable Note 7/03/2026
5.272% Due 08/03/2026
350,000.00 07/31/2023
5.27%
350,000.00
350,000.00
101.45
4.65%
355,085.85
7,585.82
0.16%
5,085.85
A1 / A
AA-
2.59 2.28
06428CAA2 Bank Of America NA Callable Note cont 7/17/2026
5.526% Due 08/18/2026
500,000.00 08/24/2023
5.48%
500,680.00
500,601.10
101.85
4.74%
509,229.50
10,207.75
0.23%
8,628.40
Aa1 / A+
AA
2.63 2.31
437076CV2 Home Depot Callable Note Cont 8/30/2026
4.950% Due 09/30/2026
500,000.00 11/30/2023
4.86%
501,140.00
501,108.08
101.43
4.38%
507,162.00
1,856.25
0.22%
6,053.92
A2 / A
A
2.75 2.47
61690U7W4 Morgan Stanley Bank NA Callable Note Cont 9/30/2026
5.882% Due 10/30/2026
335,000.00 10/30/2023
5.88%
335,000.00
335,000.00
102.82
4.77%
344,455.71
3,284.12
0.15%
9,455.71
Aa3 / A+
AA-
2.83 2.50
438516BL9 Honeywell Intl Callable Note 08/01/2026
2.500% Due 11/01/2026
750,000.00 05/10/2023
3.96%
714,847.50
721,329.52
95.26 4.29%
714,427.50
3,125.00
0.32%
(6,902.02)
A2 / A
A
2.84 2.68
713448FW3 Pepsico Inc. Callable Note Cont 10/10/2026
5.125% Due 11/10/2026
275,000.00 11/08/2023
5.13%
274,925.75
274,929.27
102.11
4.30%
280,812.68
1,996.61
0.12%
5,883.41
A1 / A+
NR
2.86 2.55
665859AW4 Northern Trust Company Callable Note Cont 4/10/2027
4.000% Due 05/10/2027
600,000.00 09/12/2022
4.08%
597,906.00
598,490.20
98.65 4.44%
591,880.80
3,400.00
0.26%
(6,609.40)
A2 / A+
A+
3.36 3.09
TOTAL Corporate 18,010,000.00 2.52%
17,988,624.85
17,904,884.09 5.12%
17,694,235.37
99,143.26
7.83%
(210,648.72)
A1 / A+
A+
1.29 1.19
Equity Mutual Fund
90PARS$00 City of Pittsburg PARS 115 Trust 3,017,950.46 Various
0.00%
3,017,950.46
3,017,950.46
1.03 0.00%
3,098,236.95
0.00 1.36%
80,286.49
NR / NR
NR
0.00 0.00
TOTAL Equity Mutual Fund 3,017,950.46 0.00%
3,017,950.46
3,017,950.46 0.00%
3,098,236.95
0.00 1.36%
80,286.49
NR / NR
NR
0.00 0.00
As of December 31, 2023
53 80
Holdings Report
City of Pittsburg Managed/Reporting Consolidated - Account #10639 CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
Investment Pool
90PITT$01 City of Pittsburg Investment Pools 40,919,072.41 Various
0.00%
40,919,072.41
40,919,072.41
0.99 0.00%
40,654,863.33
0.00 17.88%
(264,209.08)
NR / NR
NR
0.00 0.00
TOTAL Investment Pool 40,919,072.41 0.00%
40,919,072.41
40,919,072.41 0.00%
40,654,863.33
0.00 17.88%
(264,209.08)
NR / NR
NR
0.00 0.00
Money Market Fund
94975H254 Wells Fargo Money Market Fund #743 458,697.55 Various
4.92%
458,697.55
458,697.55
1.00 4.92%
458,697.55
0.00 0.20%
0.00 Aaa / AAA
NR
0.00 0.00
94975H254 Wells Fargo Money Market Fund #743 2,038,828.02 Various
4.92%
2,038,828.02
2,038,828.02
1.00 4.92%
2,038,828.02
0.00 0.90%
0.00 Aaa / AAA
NR
0.00 0.00
TOTAL Money Market Fund 2,497,525.57 4.92%
2,497,525.57
2,497,525.57 4.92%
2,497,525.57
0.00 1.10%
0.00 Aaa / AAA
NR
0.00 0.00
Negotiable CD
96130ASC3 Westpac Banking Corp NY Yankee CD
5.380% Due 02/16/2024
2,000,000.00 02/22/2023
5.44%
1,998,772.63
1,999,842.73
99.98 5.31%
1,999,522.00
95,345.56
0.92%
(320.73)
P-1 / A-1+
F-1
0.13 0.13
21684XH82 Cooperative Rabobank UA Yankee CD
5.900% Due 09/06/2024
2,000,000.00 09/07/2023
5.90%
1,999,981.55
1,999,987.38
100.43
5.16%
2,008,630.00
38,022.22
0.90%
8,642.62
P-1 / A-1
F-1+
0.68 0.67
89115BL57 Toronto Dominion Bank Yankee CD
5.650% Due 11/20/2024
1,500,000.00 11/20/2023
5.65%
1,500,000.00
1,500,000.00
100.36
5.20%
1,505,373.00
9,652.08
0.67%
5,373.00
P-1 / A-1+
F-1+
0.89 0.87
TOTAL Negotiable CD 5,500,000.00 5.66%
5,498,754.18
5,499,830.11 5.23%
5,513,525.00
143,019.86
2.49%
13,694.89
Aaa / AAA
AAA
0.53 0.52
Supranational
459058GQ0 Intl. Bank Recon & Development Note
2.500% Due 03/19/2024
750,000.00 01/26/2021
0.26%
802,455.00
753,570.24
99.38 5.34%
745,383.75
5,312.50
0.33%
(8,186.49)
Aaa / AAA
AAA
0.22 0.21
4581X0DZ8 Inter-American Dev Bank Note
0.500% Due 09/23/2024
895,000.00 09/15/2021
0.52%
894,337.70
894,839.26
96.79 5.05%
866,245.44
1,218.19
0.38%
(28,593.82)
Aaa / AAA
NR
0.73 0.71
4581X0EK0 Inter-American Dev Bank Note
4.500% Due 05/15/2026
750,000.00 06/27/2023
4.53%
749,422.50
749,521.52
100.62
4.22%
754,674.00
4,312.50
0.33%
5,152.48
Aaa / AAA
AAA
2.37 2.22
45950KDF4 International Finance Corp Note
4.375% Due 01/15/2027
710,000.00 11/29/2023
4.49%
707,685.40
707,738.38
100.78
4.10%
715,504.63
2,157.12
0.32%
7,766.25
Aaa / AAA
NR
3.04 2.81
TOTAL Supranational 3,105,000.00 2.33%
3,153,900.60
3,105,669.40 4.70%
3,081,807.82
13,000.31
1.36%
(23,861.58)
Aaa / AAA
AAA
1.55 1.45
As of December 31, 2023
54 81
Holdings Report
City of Pittsburg Managed/Reporting Consolidated - Account #10639 CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
US Treasury
912797JA6 US Treasury Bill
5.268% Due 01/23/2024
800,000.00 11/29/2023
5.38%
793,679.00
797,424.78
99.68 5.38%
797,424.78
0.00 0.35%
0.00 P-1 / A-1+
F-1+
0.06 0.06
912797JA6 US Treasury Bill
5.262% Due 01/23/2024
2,000,000.00 12/27/2023
5.36%
1,992,399.33
1,993,568.66
99.68 5.36%
1,993,568.66
0.00 0.88%
0.00 P-1 / A-1+
F-1+
0.06 0.06
912797GN1 US Treasury Bill
5.276% Due 02/15/2024
2,000,000.00 08/15/2023
5.50%
1,946,653.78
1,986,810.00
99.34 5.50%
1,986,810.00
0.00 0.87%
0.00 P-1 / A-1+
F-1+
0.13 0.12
912796Z28 US Treasury Bill
5.338% Due 02/22/2024
1,000,000.00 08/25/2023
5.56%
973,609.03
992,290.28
99.23 5.56%
992,290.28
0.00 0.44%
0.00 P-1 / A-1+
F-1+
0.15 0.14
912797GQ4 US Treasury Bill
5.298% Due 03/07/2024
2,000,000.00 09/07/2023
5.52%
1,946,725.67
1,980,574.00
99.03 5.52%
1,980,574.00
0.00 0.87%
0.00 P-1 / A-1+
F-1+
0.18 0.18
912797GZ4 US Treasury Bill
5.330% Due 04/04/2024
1,300,000.00 10/05/2023
5.55%
1,265,162.53
1,281,907.61
98.61 5.55%
1,281,907.61
0.00 0.56%
0.00 P-1 / A-1+
F-1+
0.26 0.25
91282CBV2 US Treasury Note
0.375% Due 04/15/2024
1,000,000.00 04/14/2021
0.36%
1,000,351.56
1,000,033.68
98.63 5.19%
986,250.00
799.18
0.43%
(13,783.68)
Aaa / AA+
AA+
0.29 0.29
912797HG5 US Treasury Bill
5.313% Due 04/25/2024
1,400,000.00 10/30/2023
5.53%
1,363,432.29
1,376,241.32
98.30 5.53%
1,376,241.32
0.00 0.61%
0.00 P-1 / A-1+
F-1+
0.32 0.31
91282CCC3 US Treasury Note
0.250% Due 05/15/2024
650,000.00 05/12/2021
0.36%
647,968.75
649,749.34
98.20 5.15%
638,320.15
209.82
0.28%
(11,429.19)
Aaa / AA+
AA+
0.37 0.37
912828WJ5 US Treasury Note
2.500% Due 05/15/2024
1,400,000.00 08/30/2023
5.45%
1,371,726.56
1,385,205.76
99.02 5.15%
1,386,327.60
4,519.23
0.61%
1,121.84
Aaa / AA+
AA+
0.37 0.37
91282CCG4 US Treasury Note
0.250% Due 06/15/2024
1,000,000.00 06/28/2021
0.46%
993,750.00
999,041.13
97.82 5.15%
978,164.00
116.12
0.43%
(20,877.13)
Aaa / AA+
AA+
0.46 0.45
91282CEX5 US Treasury Note
3.000% Due 06/30/2024
1,500,000.00 10/19/2023
5.53%
1,474,394.53
1,481,753.58
98.95 5.15%
1,484,296.50
123.63
0.65%
2,542.92
Aaa / AA+
AA+
0.50 0.49
91282CCL3 US Treasury Note
0.375% Due 07/15/2024
1,000,000.00 08/05/2021
0.37%
1,000,273.44
1,000,049.90
97.52 5.08%
975,234.00
1,732.34
0.43%
(24,815.90)
Aaa / AA+
AA+
0.54 0.53
91282CFA4 US Treasury Note
3.000% Due 07/31/2024
3,000,000.00 Various
5.47%
2,945,468.75
2,958,309.26
98.82 5.07%
2,964,609.00
37,663.05
1.32%
6,299.74
Aaa / AA+
AA+
0.58 0.56
912797GK7 US Treasury Bill
5.072% Due 08/08/2024
2,000,000.00 08/15/2023
5.35%
1,899,113.61
1,938,002.78
96.90 5.35%
1,938,002.78
0.00 0.85%
0.00 P-1 / A-1+
F-1+
0.61 0.59
91282CCT6 US Treasury Note
0.375% Due 08/15/2024
1,000,000.00 09/10/2021
0.42%
998,632.81
999,709.14
97.13 5.09%
971,328.00
1,416.44
0.43%
(28,381.14)
Aaa / AA+
AA+
0.62 0.61
912797GW1 US Treasury Bill
5.178% Due 10/03/2024
1,500,000.00 10/19/2023
5.46%
1,424,710.52
1,440,458.75
96.03 5.46%
1,440,458.75
0.00 0.63%
0.00 P-1 / A-1+
F-1+
0.76 0.74
As of December 31, 2023
55 82
Holdings Report
City of Pittsburg Managed/Reporting Consolidated - Account #10639 CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
91282CDB4 US Treasury Note
0.625% Due 10/15/2024
1,000,000.00 12/02/2021
0.86%
993,281.25
998,151.86
96.72 4.91%
967,188.00
1,331.97
0.43%
(30,963.86)
Aaa / AA+
AA+
0.79 0.77
91282CDH1 US Treasury Note
0.750% Due 11/15/2024
1,000,000.00 11/10/2021
0.80%
998,554.69
999,579.33
96.50 4.89%
965,039.00
968.41
0.42%
(34,540.33)
Aaa / AA+
AA+
0.88 0.85
91282CDN8 US Treasury Note
1.000% Due 12/15/2024
1,100,000.00 12/29/2021
0.99%
1,100,472.66
1,100,152.60
96.43 4.86%
1,060,769.60
510.93
0.47%
(39,383.00)
Aaa / AA+
AA+
0.96 0.93
912828ZC7 US Treasury Note
1.125% Due 02/28/2025
1,000,000.00 02/03/2022
1.42%
991,054.69
996,613.56
96.05 4.65%
960,508.00
3,801.51
0.42%
(36,105.56)
Aaa / AA+
AA+
1.16 1.13
912828ZF0 US Treasury Note
0.500% Due 03/31/2025
750,000.00 03/03/2021
0.54%
748,886.72
749,659.58
95.08 4.60%
713,115.00
952.87
0.31%
(36,544.58)
Aaa / AA+
AA+
1.25 1.22
912828ZL7 US Treasury Note
0.375% Due 04/30/2025
500,000.00 01/13/2021
0.39%
499,609.38
499,879.10
94.63 4.57%
473,164.00
319.37
0.21%
(26,715.10)
Aaa / AA+
AA+
1.33 1.30
912828ZT0 US Treasury Note
0.250% Due 05/31/2025
1,250,000.00 10/06/2021
0.72%
1,228,759.77
1,241,771.80
94.18 4.55%
1,177,197.50
273.22
0.52%
(64,574.30)
Aaa / AA+
AA+
1.42 1.38
9128285C0 US Treasury Note
3.000% Due 09/30/2025
750,000.00 04/29/2022
2.90%
752,314.45
751,184.14
97.70 4.38%
732,714.75
5,717.21
0.32%
(18,469.39)
Aaa / AA+
AA+
1.75 1.67
9128285J5 US Treasury Note
3.000% Due 10/31/2025
1,000,000.00 06/02/2022
2.87%
1,004,023.44
1,002,160.26
97.67 4.33%
976,719.00
5,109.89
0.43%
(25,441.26)
Aaa / AA+
AA+
1.84 1.75
912828M56 US Treasury Note
2.250% Due 11/15/2025
1,000,000.00 08/25/2022
3.37%
966,093.75
980,295.77
96.31 4.32%
963,125.00
2,905.22
0.42%
(17,170.77)
Aaa / AA+
AA+
1.88 1.80
9128285T3 US Treasury Note
2.625% Due 12/31/2025
1,000,000.00 08/25/2022
3.34%
977,421.88
986,523.28
96.91 4.25%
969,063.00
72.12 0.43%
(17,460.28)
Aaa / AA+
AA+
2.00 1.92
9128286L9 US Treasury Note
2.250% Due 03/31/2026
1,000,000.00 08/29/2022
3.40%
961,640.63
975,970.45
95.93 4.16%
959,297.00
5,717.21
0.42%
(16,673.45)
Aaa / AA+
AA+
2.25 2.15
912828U24 US Treasury Note
2.000% Due 11/15/2026
1,500,000.00 05/09/2023
3.65%
1,418,964.84
1,433,847.56
94.54 4.03%
1,418,086.50
3,873.63
0.63%
(15,761.06)
Aaa / AA+
AA+
2.88 2.74
912828V98 US Treasury Note
2.250% Due 02/15/2027
1,000,000.00 11/29/2022
4.06%
930,585.94
948,503.61
94.93 3.99%
949,297.00
8,498.64
0.42%
793.39
Aaa / AA+
AA+
3.13 2.95
91282CEF4 US Treasury Note
2.500% Due 03/31/2027
1,100,000.00 11/03/2022
4.47%
1,014,148.44
1,036,732.53
95.57 3.96%
1,051,316.20
6,987.70
0.47%
14,583.67
Aaa / AA+
AA+
3.25 3.06
91282CEW7 US Treasury Note
3.250% Due 06/30/2027
1,250,000.00 11/03/2022
4.44%
1,187,792.97
1,203,280.65
97.72 3.95%
1,221,533.75
111.61
0.54%
18,253.10
Aaa / AA+
AA+
3.50 3.27
91282CFH9 US Treasury Note
3.125% Due 08/31/2027
800,000.00 01/30/2023
3.72%
779,968.75
783,970.21
97.19 3.96%
777,500.00
8,447.80
0.35%
(6,470.21)
Aaa / AA+
AA+
3.67 3.39
As of December 31, 2023
56 83
Holdings Report
City of Pittsburg Managed/Reporting Consolidated - Account #10639 CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
9128283F5 US Treasury Note
2.250% Due 11/15/2027
1,500,000.00 05/16/2023
3.59%
1,417,031.25
1,428,595.37
94.02 3.93%
1,410,351.00
4,357.83
0.62%
(18,244.37)
Aaa / AA+
AA+
3.88 3.64
TOTAL US Treasury 43,050,000.00 3.70%
42,008,657.66
42,378,001.63 4.89%
41,917,791.73
106,536.95
18.48%
(460,209.90)
Aaa / AAA
AAA
1.15 1.09
TOTAL PORTFOLIO 228,784,325.12 1.61%
227,435,455.27
227,753,713.95 2.13%
226,852,715.74
509,295.21
100.00%
(900,998.21)
Aa1 / AA+
AA+
0.68 0.60
TOTAL MARKET VALUE PLUS ACCRUALS 227,362,010.95
As of December 31, 2023
57 84
SECTION |
Section 5 |
Transactions
58 85
Transaction Ledger
City of Pittsburg - Account #10607
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest
Pur/Sold Total Amount Gain/Loss
ACQUISITIONS
Purchase 10/16/2023 3133EPWK7 1,250,000.00 FFCB Note
4.5% Due: 09/22/2028
99.073 4.71% 1,238,412.50 3,750.00 1,242,162.50 0.00
Purchase 11/01/2023 61690U7W4 335,000.00 Morgan Stanley Bank NA Callable Note Cont 9/30/2026
5.882% Due: 10/30/2026
100.000 5.88% 335,000.00 0.00 335,000.00 0.00
Purchase 11/08/2023 438123AC5 235,000.00 Honda Auto Receivables OT 2023-4 A3
5.67% Due: 06/21/2028
99.982 5.74% 234,958.62 0.00 234,958.62 0.00
Purchase 11/10/2023 3133EPZY4 1,000,000.00 FFCB Note 5% Due: 07/30/2026
100.374 4.85% 1,003,740.00 1,388.89 1,005,128.89 0.00
Purchase 11/10/2023 713448FW3 275,000.00 Pepsico Inc. Callable Note Cont 10/10/2026
5.125% Due: 11/10/2026
99.973 5.13% 274,925.75 0.00 274,925.75 0.00
Purchase 11/14/2023 89239FAD4 195,000.00 Toyota Auto Receivables Owner 2023-D A3
5.54% Due: 08/15/2028
99.989 5.61% 194,978.98 0.00 194,978.98 0.00
Purchase 12/01/2023 3130AXU63 1,000,000.00 Federal Home Loan Banks Note
4.625% Due: 11/17/2026
100.253 4.53% 1,002,530.00 1,798.61 1,004,328.61 0.00
Purchase 12/04/2023 437076CV2 500,000.00 Home Depot Callable Note Cont 8/30/2026
4.95% Due: 09/30/2026
100.228 4.87% 501,140.00 0.00 501,140.00 0.00
Purchase 12/06/2023 45950KDF4 710,000.00 International Finance Corp Note
4.375% Due: 01/15/2027
99.674 4.49% 707,685.40 0.00 707,685.40 0.00
Purchase 12/07/2023 3133EPVP7 1,000,000.00 FFCB Note
4.75% Due: 07/08/2026
100.642 4.48% 1,006,424.00 11,743.06 1,018,167.06 0.00
Purchase 12/28/2023 912797JA6 2,000,000.00 US Treasury Bill
5.262% Due: 01/23/2024
99.620 5.36% 1,992,399.33 0.00 1,992,399.33 0.00
Subtotal 8,500,000.00 8,492,194.58 18,680.56 8,510,875.14 0.00 TOTAL ACQUISITIONS 8,500,000.00 8,492,194.58 18,680.56 8,510,875.14 0.00
DISPOSITIONS
Maturity 10/16/2023 3137EAEY1 885,000.00 FHLMC Note
0.125% Due: 10/16/2023
100.000 885,000.00 0.00 885,000.00 0.00
September 30, 2023 through December 31, 2023
As of December 31, 2023
59 86
Transaction Ledger
City of Pittsburg - Account #10607
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest
Pur/Sold Total Amount Gain/Loss
Maturity 10/31/2023 912828T91 700,000.00 US Treasury Note
1.625% Due: 10/31/2023
100.000 700,000.00 0.00 700,000.00 0.00
Maturity 11/06/2023 3137EAEZ8 1,155,000.00 FHLMC Note
0.25% Due: 11/06/2023
100.000 1,155,000.00 0.00 1,155,000.00 0.00
Maturity 11/24/2023 459058JM6 925,000.00 Intl. Bank Recon & Development Note
0.25% Due: 11/24/2023
100.000 925,000.00 0.00 925,000.00 0.00
Maturity 11/27/2023 3135G06H1 1,020,000.00 FNMA Note
0.25% Due: 11/27/2023
100.000 1,020,000.00 0.00 1,020,000.00 0.00
Maturity 12/04/2023 3137EAFA2 825,000.00 FHLMC Note
0.25% Due: 12/04/2023
100.000 825,000.00 0.00 825,000.00 0.00
Maturity 12/08/2023 3130A3VC5 1,000,000.00 FHLB Note
2.25% Due: 12/08/2023
100.000 1,000,000.00 0.00 1,000,000.00 0.00
Maturity 12/15/2023 91282CBA8 1,000,000.00 US Treasury Note
0.125% Due: 12/15/2023
100.000 1,000,000.00 0.00 1,000,000.00 0.00
Subtotal 7,510,000.00 7,510,000.00 0.00 7,510,000.00 0.00 TOTAL DISPOSITIONS 7,510,000.00 7,510,000.00 0.00 7,510,000.00 0.00 September 30, 2023 through December 31, 2023
As of December 31, 2023
60 87
Transaction Ledger
City of Pittsburg Liquidity - Account #10617
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest
Pur/Sold Total Amount Gain/Loss
ACQUISITIONS
Purchase 10/02/2023 91282CFA4 1,000,000.00 US Treasury Note 3% Due: 07/31/2024
97.969 5.54% 979,687.50 5,135.87 984,823.37 0.00
Purchase 10/06/2023 912797GZ4 1,300,000.00 US Treasury Bill
5.33% Due: 04/04/2024
97.320 5.55% 1,265,162.53 0.00 1,265,162.53 0.00
Purchase 10/20/2023 912797GW1 1,500,000.00 US Treasury Bill
5.178% Due: 10/03/2024
94.981 5.46% 1,424,710.52 0.00 1,424,710.52 0.00
Purchase 10/20/2023 91282CEX5 1,500,000.00 US Treasury Note 3% Due: 06/30/2024
98.293 5.53% 1,474,394.53 13,695.65 1,488,090.18 0.00
Purchase 10/31/2023 912797HG5 1,400,000.00 US Treasury Bill
5.313% Due: 04/25/2024
97.388 5.53% 1,363,432.29 0.00 1,363,432.29 0.00
Purchase 11/10/2023 91282CFA4 2,000,000.00 US Treasury Note 3% Due: 07/31/2024
98.289 5.44% 1,965,781.25 16,630.43 1,982,411.68 0.00
Purchase 11/21/2023 89115BL57 1,500,000.00 Toronto Dominion Bank Yankee CD
5.65% Due: 11/20/2024
100.000 5.65% 1,500,000.00 0.00 1,500,000.00 0.00
Purchase 11/30/2023 912797JA6 800,000.00 US Treasury Bill
5.268% Due: 01/23/2024
99.210 5.38% 793,679.00 0.00 793,679.00 0.00
Subtotal 11,000,000.00 10,766,847.62 35,461.95 10,802,309.57 0.00 TOTAL ACQUISITIONS 11,000,000.00 10,766,847.62 35,461.95 10,802,309.57 0.00
DISPOSITIONS
Maturity 10/02/2023 3133EMBS0 1,000,000.00 FFCB Note
0.2% Due: 10/02/2023
100.000 1,000,000.00 0.00 1,000,000.00 0.00
Maturity 10/10/2023 912797HA8 1,100,000.00 US Treasury Bill
5.185% Due: 10/10/2023
100.000 1,100,000.00 0.00 1,100,000.00 0.00
Maturity 10/12/2023 912797FA0 2,000,000.00 US Treasury Bill
4.97% Due: 10/12/2023
100.000 2,000,000.00 0.00 2,000,000.00 0.00
Maturity 10/26/2023 912797FC6 1,175,000.00 US Treasury Bill
4.8% Due: 10/26/2023
100.000 1,175,000.00 0.00 1,175,000.00 0.00
September 30, 2023 through December 31, 2023
As of December 31, 2023
61 88
Transaction Ledger
City of Pittsburg Liquidity - Account #10617
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest
Pur/Sold Total Amount Gain/Loss
Maturity 11/09/2023 912797FJ1 2,000,000.00 US Treasury Bill
4.94% Due: 11/09/2023
100.000 2,000,000.00 0.00 2,000,000.00 0.00
Maturity 11/16/2023 912797FK8 2,200,000.00 US Treasury Bill
5.01% Due: 11/16/2023
100.000 2,200,000.00 0.00 2,200,000.00 0.00
Maturity 12/15/2023 91282CBA8 2,000,000.00 US Treasury Note
0.125% Due: 12/15/2023
100.000 2,000,000.00 0.00 2,000,000.00 0.00
Subtotal 11,475,000.00 11,475,000.00 0.00 11,475,000.00 0.00 TOTAL DISPOSITIONS 11,475,000.00 11,475,000.00 0.00 11,475,000.00 0.00 September 30, 2023 through December 31, 2023
As of December 31, 2023
62 89
Important Disclosures
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As of December 31, 2023
63 90
Benchmark Disclosures
ICE BofA 1-3 Yr US Treasury & Agency Index
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As of December 31, 2023
64 91
OFFICE OF THE CITY MANAGER/EXECUTIVE DIRECTOR
65 Civic Avenue
Pittsburg, CA 94565
TO: Mayor and Council Members
FROM: Garrett Evans, City Manager
SUBJECT: Adoption of a City Council Resolution Authorizing Execution of Second Amendment to Consultant Agreement for Project 8336-Americana Park Bypass Channel
MEETING DATE: February 20, 2024
EXECUTIVE SUMMARY
Project 8336-Americana Park Bypass Channel (the “Project”) requires a biologist to perform construction monitoring services to satisfy the environmental agency requirements. If approved, this resolution will authorize execution of the Second Amendment to the Consultant Services Agreement with SWAIM Biological Inc. for $76,550 to include construction monitoring services.
FISCAL IMPACT
The Project is currently funded with a budget of $1,276,678. The Second Amendment to the agreement will total $76,550. The total of the Consultant Services Agreement between the City and SWAIM Biological Inc., including the Second Amendment, will be $121,550. The additional costs will be provided from the existing Project budget. No additional funds will need to be allocated.
RECOMMENDATION
Staff recommends the City Council adopt the attached resolution authorizing the City Manager to execute the Second Amendment to the Consultant Services Agreement with SWAIM Biological Inc. in the amount of $76,550 for a total amount of $121,550.
BACKGROUND
The Second Amendment to the current contract with Swaim Biological Inc. will increase the scope of services to include construction monitoring. These services must be provided by the biological company retained for construction of the Project to remain in compliance with environmental agency requirements.
92 On October 25,2022, the Consultant Services Agreement with Swaim Biological Inc. for $45,000 was executed.
On August 1, 2023, the First Amendment to the Consultant Services Agreement with Swaim Biological Inc. for additional services to the scope of work, was executed.
On February 2,2024, a proposal was submitted by Swaim Biological Inc. for construction monitoring services required for the Project completion.
SUBCOMMITTEE FINDINGS
This item was not presented to a subcommittee.
STAFF ANALYSIS
The detention basin located in the Americana Park Subdivision has been prone to overflowing on North Parkside Drive during heavy rains. This has caused partial roadway closures and monitoring by the City’s Public Works Department to mitigate the hazard during storms. The Project intends to address the flooding through the construction of a bypass channel across the PG&E transmission corridor. This channel will redirect stormwater to another channel capable of the increased water volume, preventing overflow in the detention basin and North Parkside Drive.
To ensure compliance with environmental regulations established by the California Department of Fish and Wildlife and United States Army Corp of Engineers, the Project requires construction monitoring services to be provided by the consultant retained for the initial construction. This requires an increased scope of services included within the Second Amendment.
ATTACHMENTS: Second Amendment to Consulting Services Agreement Resolution
Project Budget Summary
Report Prepared By: Alex Ruiz, Assistant Engineer
93 Resolution No. 24- Page 1 of 2 February 20, 2024
BEFORE THE CITY COUNCIL OF THE CITY OF PITTSBURG
In the Matter of:
Authorizing Execution of Second )
Amendment to Consultant Agreement ) RESOLUTION NO. 24-
for Project 8336-Americana Park )
Bypass Channel )
WHEREAS, Project 8336-Americana Park Bypass Channel (the “Project”) is for constructing storm drainage improvements throughout the City; and WHEREAS, staff has identified the frequent flooding of North Parkside Drive adjacent to Americana Park as a storm drainage problem to be remedied with the Project; and WHEREAS, on October 25, 2022, a Consultant Services Agreement was issued to SWAIM Biological Inc. in the amount of $45,000 for the completion of the regulatory permitting of the Project; and
WHEREAS, on August 1, 2023, the First Amendment to the Consultant Services Agreement with SWAIM Biological Inc. was issued to perform additional services to the scope of work within the existing contract; and
WHEREAS, the Project requires a biologist to perform construction monitoring services to satisfy the environmental agency requirements.
WHEREAS, this resolution will authorize the Second Amendment, in the amount of $76,550, to the Consulting Services Agreement with Swaim Biological Inc. for the necessary construction monitoring services.
WHEREAS, the total of the Consultant Services Agreement between the City and SWAIM Biological Inc., including the Second Amendment, will be $121,550, to be provided out of the existing project budget.
NOW, THEREFORE, BE IT RESOLVED that the City Council hereby authorizes execution of the Second Amendment to the Consultant Services Agreement with SWAIM Biological Inc. to conduct biological surveys and construction monitoring support for the Project.
94 Resolution No. 24- Page 2 of 2 February 20, 2024 PASSED AND ADOPTED by the City Council of the City of Pittsburg at a regular meeting on the 20th day of February 2024, by the following vote:
AYES:
NOES:
ABSTAINED:
ABSENT:
______________________________
Juan Antonio Banales, Mayor
ATTEST:
________________________________
Alice E. Evenson, City Clerk
95 Contract 2009-01, Americana Park Bypass Channel
Project 8336
Project Funding:
Tsfrs-In from 2006 Tax Exempt (5938) $89,127
$30,872
$374,879
$580,000
$100,000
$101,800
Funding Total $1,276,678
Project Expenditures:
Design: Consultant Design $50,330
(Code 2122) Permitting (USACE, USDFW, HCP, etc.) $45,000 Consultant Design Amendments 1-6 $221,800
Subtotal $317,130
Miscellaneous: Advertising $2,300
(Code 1399) $9,600
Subtotal $11,900
Construction:
(Code 2281) $620,000
$62,000
$76,550
$17,098
$9,283
Subtotal $784,931
Staff Time: Staff Design $20,000
(Code 1101) $20,000
Subtotal $40,000
Admin: Staff Design $20,000
(Code 2372) Staff Construction Management $20,000
Subtotal $40,000
Expenditures from Previous Storm Drain Projects (Construction Total) 82,717$ Expenditures Total $1,276,678
Staff Construction Management
Material Testing
Infrastructure Repair and Replacement Fund (310)
Federal Emergency Management Agency (FEMA) Hazard
Mitigation Grant
Tsfr-In from 2006 Taxable (5940)
Construction Monitoring Fee
East Contra Costa HCP Impact Fees
HUTA (Fund 203)
Water Operations Fund (501)
Construction
Construction Contingency (10%)
96 SECOND AMENDMENT TO
CONSULTING SERVICES AGREEMENT BETWEEN
CITY OF PITTSBURG AND
SWAIM BIOLOGICAL, INC.
This Second Amendment to the Principal Agreement made and entered into on October 25, 2022, hereafter referred to as Agreement, between Swaim Biological, Inc., a California corporation, therein referred to as Consultant, and the City of Pittsburg, a municipal corporation, therein referred to as City, is made and entered into on this 20th day of February 2024.
WHEREAS, the parties entered into the Agreement for biological assessments and support for Project 8336 Americana Park Bypass Channel; and
WHEREAS, the parties entered into a First Amendment that extended the term to December 25, 2024, and added services to the scope of work; and
WHEREAS, the parties desire to further add construction monitoring services and increase the compensation amount accordingly.
NOW, THEREFORE, Consultant and City do mutually agree as follows:
1. Compensation. Section 2 of the Agreement is hereby amended to read as follows:
City hereby agrees to pay Consultant a sum not to exceed One Hundred Twenty-One Thousand Five Hundred Fifty Dollars ($121,550), as set forth in Exhibit B, attached hereto and incorporated herein for services to be performed and reimbursable expenses incurred under this Agreement. This dollar amount is not a guarantee that the City will pay that full amount to the Consultant but is merely a limit of potential City expenditures under this Agreement.
2. Exhibit A Scope of Services. Exhibit A is hereby amended to include Attachment 1 of this Second Amendment.
3. Exhibit B Compensation Schedule. Exhibit B is hereby amended to include Attachment 2 of this Second Amendment.
4. Integration. This Second Amendment contains the entire agreement between the parties with respect to its subject matter and supersedes whatever oral or written understanding they may have had prior to the execution of this Second Amendment.
This Second Amendment shall not be amended or modified except by a written agreement executed by each of the parties. Except as specifically revised herein, all terms and conditions of the Agreement shall remain in full force and effect, and Consultant shall perform all duties, obligations and conditions required under the Agreement.
DocuSign Envelope ID: 4C4FA409-07BC-45B0-8FB1-47DC6DB9DCB3 97 5. Inconsistencies. In the event of any conflict or inconsistency between the provisions of this Second Amendment and the Agreement, the provisions of this Second Amendment shall control in all respects.
6. Ambiguities. The parties have each carefully reviewed this Second Amendment and have agreed to each term of this Second Amendment. No ambiguity shall be presumed to be construed against either party.
7. Counterparts. This Second Amendment may be executed by the parties in one or more counterparts all of which collectively shall constitute one document and agreement.
8. Authority. The person signing this Second Amendment for Consultant hereby represents and warrants that he or she is fully authorized to sign this Second Amendment on behalf of Consultant.
IN WITNESS WHEREOF, the parties have entered into this Second Amendment on the day and year first hereinabove appearing.
CONSULTANT:
SWAIM BIOLOGICAL, a California
corporation
By:
Karen Swaim, President
CITY:
CITY OF PITTSBURG, a municipal
corporation of the State of California
By:
Garrett Evans, City Manager
APPROVED AS TO FORM:
By:
Donna Mooney, City Attorney
DocuSign Envelope ID: 4C4FA409-07BC-45B0-8FB1-47DC6DB9DCB3 98 ATTACHMENT 1
SCOPE OF SERVICES
This scope is based on requirements outlined in the environmental documents for the project, including compliance with applicable conservation measures of the East Contra Costa County Habitat Conservation Plan / Natural Community Conservation Plan (HCP / NCCP), the Initial Study / Mitigated Negative Declaration (IS / MND), the USFWS determinations from FEMA, the 401 Certification from the San Francisco Bay Regional Water Quality Control Board (RWQCB), the Streambed Alteration Agreement (SAA) from the California Department of Fish and Wildlife (CDFW), and the general conditions of the U.S. Army Corps of Engineers Regional General Permit 1.
These tasks include time to conduct preconstruction surveys for special status species and nesting birds and construction monitoring and compliance support implementation of the project based on the number of days requested by the City.
Consultant shall perform the following:
Task 9. Project Management
SBI shall coordinate with the City of Pittsburg and its consultants as needed to manage all tasks presented in this scope including meetings, site visits and field personnel performing surveys, preparation and submittal of deliverables, and coordination with the East Contra Costa County Habitat Conservancy and permitting agencies as requested by the City.
Task 10. Preconstruction Surveys
Prior to the initiation of construction for the project, preconstruction surveys will be conducted for special status species and nesting birds. A report summarizing preconstruction survey result will also be generated for compliance with the applicable permits. As conditions of all environmental documents associated with the project, the following surveys and timelines are required before commencement of project activities:
Bats
If the results of the bat tree roost habitat assessment and acoustic surveys indicate a low level of bat activity and bats are unlikely to be occupying trees scheduled for removal, then, within seven days of the start of work, a preconstruction survey will be conducted by a qualified biologist.
If the results of the bat tree roost habitat assessment and acoustic survey indicate that bats are present in the project area, and likely to be roosting in the area, up to two emergence surveys will be conducted to help determine the specific trees that bats are using for daytime roosts. These surveys will begin shortly before dusk and will continue until at least one hour after sunset.
DocuSign Envelope ID: 4C4FA409-07BC-45B0-8FB1-47DC6DB9DCB3 99 These surveys will address requirements of Mitigation Measure BIO-1d in the IS / MND and Condition 2.11 in the SAA.
Burrowing Owl
SBI will conduct a preconstruction survey for burrowing owl as required by Mitigation Measure BIO-1c in the IS / MND. This will include compliance with CDFW protocols for a take avoidance survey which includes an initial habitat assessment at least 30 days prior to the start of project activities and a 24-hour survey immediately prior to the commencement of ground disturbing activities.
Nesting Birds
If construction is planned to occur between February 1 and August 31, SBI will conduct a nesting bird survey within 7 days prior to construction. The nesting bird survey will focus on detection of active nests, nests of fully protected wildlife species that have potential to occur within the project area, and nests of HCP / NCCP covered species. Additionally, SBI will conduct a nesting bird survey of trees planned for removal within 48 hours prior to removal activities. These surveys are required by conservation measures of the HCP / NCCP and Planning Survey Report and the SAA.
Western Pond Turtle
SBI will conduct a preconstruction survey for western pond turtle immediately prior to vegetation clearing and construction activities at the American Park detention basin and at the outfall transition to the tributary to Willow Creek, as stated in Mitigation Measure BIO-1a in the IS / MND.
Sensitive Vegetation
Prior to construction, all wetlands, streams, and riparian / woodland scrub including elderberry (Sambucus spp.) will be staked off by a qualified biologist, required by the HCP / NCCP and as a conclusion of the USFWS determination from FEMA for valley elderberry longhorn beetle avoidance.
Task 11. Construction Monitoring Support
SBI will provide construction monitoring and environmental compliance support, required by Condition 2.6 of the CDFW Streambed Alteration Agreement. It is estimated the project will take 115 days total to complete inside and outside of the environmental compliance area. Monitoring is required during initial ground disturbance, vegetation, and tree removal and when work occurs within sensitive habitats.
Full time monitoring is estimated at 12-hour days and includes 10 hours on site for monitoring and reporting and up to 2 hours for travel. Part time monitoring and/or DocuSign Envelope ID: 4C4FA409-07BC-45B0-8FB1-47DC6DB9DCB3 100
weekly spot checks are estimated at 6-hour days and includes 4 hours on site for monitoring and reporting and up to 2 hours for travel.
This task includes environmental training to construction personnel and the development of handout in accordance with Condition 2.6 of the SAA.
The City estimated the number of days for biological oversight monitoring. If additional monitoring is required to meet permit requirements due to contractor scheduling or project delays, an increase in scope will be required. If additional monitoring is required beyond the included days in the proposal, the City will be billed on a time and materials basis with prior approval from the project engineer.
Full time monitoring
A Designated biologist will be on-site for all initial ground disturbance, installation of ESA fencing, clearing, and grubbing and all vegetation/tree removal. This scope includes up to five (5) days for a Designated Biologist.
A qualified biologist will be on-site when work occurs in biologically sensitive areas, including the Americana Park detention basin and at the transition to the tributary to Willow Creek. This scope includes up to ten (10) days for a qualified biologist.
Part Time Monitoring / Weekly Spot Checks
When work is occurring outside of sensitive areas or when project activities do not require monitoring full days, part time monitoring and/or weekly site checks will be conducted to ensure project compliance. This scope includes up to thirty (30) days of part-time monitoring.
Reporting
SBI will produce monitoring reports for each day on-site. Reports will be compiled weekly and submitted to the City unless requested on a different reporting schedule.
DocuSign Envelope ID: 4C4FA409-07BC-45B0-8FB1-47DC6DB9DCB3 101
ATTACHMENT 2
COMPENSATION SCHEDULE
City shall compensate Consultant for Scope of Services Attachment 1 as follows:
Task 9. Project Management
Principal Biologist 30 hours $165/hr
Task 10. Preconstruction Surveys
Bat Specialist 12 hours $160/hr
Biologist ll 12 hours $115/hr
Biologist lll 32 hours $135/hr
Principal Biologist 4 hours $165/hr
Task 11. Construction Monitoring Support
Biologist lll 222 hours $135/hr
Principal Biologist 96 hours $165/hr
Expenses
Travel 8000 miles $0.67/mile
DocuSign Envelope ID: 4C4FA409-07BC-45B0-8FB1-47DC6DB9DCB3 102
OFFICE OF THE CITY MANAGER/EXECUTIVE DIRECTOR
65 Civic Avenue
Pittsburg, CA 94565
TO: Mayor and Council Members
FROM: Garrett Evans, City Manager
SUBJECT: Adoption of City Council Resolution Adopting Caltrans Local Assistance Procedure Manual Chapter 10: Consultant Selection
MEETING DATE: February 20, 2024
EXECUTIVE SUMMARY
For all California Department of Transportation (Caltrans) state and federally funded projects, there are standards established when administering and procuring Architectural and Engineering (A&E) contracts. The Local Assistance and Procedures Manual (LAPM), Chapter 10: Consultant Selection presents policies and procedures to be utilized by local agencies to follow applicable laws and regulations. If adopted, this resolution will accept the Caltrans LAPM Chapter 10: Consultant Selection as part of consultant procurement practices.
FISCAL IMPACT
This item will have no fiscal impact.
RECOMMENDATION
Staff recommends that the City Council adopt and approve the LAPM, Chapter 10:
Consultant selection dated January 2024, authorize the City Manager to approve amendments to the City’s adopted A&E Services Administration and Procurement Policies in consultation with the Federal Highways Administration.
BACKGROUND
The provisions of the Brooks Act (40 United Sates Code, Section 1104) requires local agencies to award federally funded engineering and design-related contracts, otherwise known as A&E contracts, on the basis of fair and open competitive negotiations, demonstrated competence, and professional qualifications (23 CFR 31.201-3). 103
Pursuant to 23 CFR 172.5 (b), local agencies shall develop and sustain organizational capacity and provide the resources necessary for the procurement, management, and administration of the design and related consultant services, reimbursed in whole or part in with Federal-Aid Highway Program funding as specified in 23 U.S.C. 106(g)(4)(A).
SUBCOMMITTEE FINDINGS
This item was not presented to a subcommittee.
STAFF ANALYSIS
The City has a various number of A&E transportation projects that require design services with state and federal funding. Due to limited staffing and expertise, certain services including A&E are contracted out to qualified firms. In order for the City to be in compliance with Federal and State laws and regulations, Caltrans has developed the LAPM for local agencies to follow to maintain eligibility for Federal-Aid reimbursement. Adherence to these practices will assist in continued eligibility and reimbursement of federally funded projects.
ATTACHMENTS: Resolution
Local Assistance Procedures Manual Chapter 10: Consultant Section Report Prepared By: Khristin Labao, Assistant Engineer
104
Resolution No. 24- Page 1 of 2 February 20, 2024
BEFORE THE CITY COUNCIL OF THE CITY OF PITTSBURG
In the Matter of:
Adopting Caltrans Local Assistance )
Procedure Manual Chapter 10: ) RESOLUTION NO. 24-
Consultant Selection )
WHEREAS, the City is responsible for constructing transportation projects that are federally and state funded; and
WHEREAS, to comply with the federal regulations and due to limited staffing and expertise, certain services including Architectural and Engineering (A&E) are contracted out to qualified firms; and
WHEREAS, the regulations set forth standards for procuring and administering A&E contracts; and
WHEREAS, the provisions of the Brooks Act (40 United Sates Code, Section 1104) requires local agencies to award federally funded engineering and design-related contracts, otherwise known as A&E contracts, on the basis of fair and open competitive negotiations, demonstrated competence, and professional qualifications (23 CFR 31.201- 3); and
WHEREAS, pursuant to 23 CFR 172.5 (b), local agencies shall develop and sustain organizational capacity and provide the resources necessary for the procurement, management, and administration of the design and related consultant services, reimbursed in whole or part in with Federal-Aid Highway Program funding as specified in 23 U.S.C. 106(g)(4)(A); and
WHEREAS, the State of California Department of Transportation (Caltrans) has developed the Local Assistance Procedures Manual (LAPM), Chapter 10: Consultant Selection which sets forth policies and procedures to be utilized by local agencies in the procurement and management of A&E contracts on state and federal funded transportation projects to ensure compliance with applicable federal and state laws and regulations and to maintain eligibility for federal-aid reimbursement; and WHEREAS, the City has developed additional policies to ensure avoidance of conflict of interest and for compliance with federal regulations on procurement and administration of A&E contracts; and
WHEREAS, staff recommends that the City Council adopt Caltrans LAPM Chapter 10 and the City’s conflict of interest policies for compliance with federal regulations on the procurement and administration of A&E contracts; and
105
Resolution No. 24- Page 2 of 2 February 20, 2024 WHEREAS, staff recommends that the City Manager be authorized to approve future amendments to the City’s adopted A&E Services Administration and Procurement Policies in consultation with the Federal Highways Administration.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Pittsburg hereby adopts and approves the LAPM, Chapter 10: Consultant Selection dated January 2024, authorizes the City Manager to approve amendments to the City’s adopted A&E Services Administration and Procurement Policies in consultation with the Federal Highways Administration.
PASSED AND ADOPTED by the City Council of the City of Pittsburg at a regular meeting on the 20th day of February 2024, by the following vote:
AYES:
NOES:
ABSTAINED:
ABSENT:
_____________________________
Juan Antonio Banales, Mayor
ATTEST:
_______________________________
Alice E. Evenson, City Clerk
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Chapter 10 Consultant Selection
Contents
10.1 FEDERALLY-FUNDED A&E CONTRACTS .............................................................. vi
10.1.1 General ...................................................................................................................... 1 Introduction ............................................................................................................... 1 Definition of an Architectural and Engineering Consultant ........................................ 1 Architectural and Engineering Consultants ............................................................... 1 Non-A&E Consultants ............................................................................................... 2 Selecting the Project ................................................................................................. 2 Subcontracted Services ............................................................................................ 2 Organizational and Consultant Conflicts of Interest .................................................. 2 Consultants Performing Work on Multiple Phases of Federal-aid Projects ............... 3
10.1.2 Identifying & Defining a Need for Consultants ............................................................ 4 Appointing the Contract Administrator ....................................................................... 4 Segmenting Consultant Work .................................................................................... 5 Specify Products to be Delivered .............................................................................. 6 Scope of Consultant Work ......................................................................................... 6 Title VI Assurances ................................................................................................... 6 Non-Discrimination Clause ........................................................................................ 7 Disadvantaged Business Enterprise (DBE) Participation .......................................... 7 Determine Type of Contract ...................................................................................... 8 Determining the Project Schedule ........................................................................... 10 Determine Method of Payment ................................................................................ 11 Cost-Plus-Fixed Fee ................................................................................................ 11 Cost Per Unit of Work .............................................................................................. 11 Specified Rates of Compensation ........................................................................... 12 Lump Sum ............................................................................................................... 12 Changes to Cost Proposal ...................................................................................... 12
10.1.3 A&E Consultant Audit and Review Process ............................................................. 13 Applicable Standards .............................................................................................. 13 Audit Guidance Available ........................................................................................ 14 Allowable Costs ....................................................................................................... 14 Safe Harbor Rate .................................................................................................... 15 Approval or Acceptance of Indirect Cost Rates ....................................................... 16 Cognizant Letters of Approval ................................................................................. 16 Caltrans Acceptance of Indirect Cost Rate .............................................................. 16 107
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Financial Review Performed Prior to Contract Execution ........................................ 17 Local Public Agencies’ Responsibilities................................................................... 17 Consultants’ Responsibilities (Both prime consultants and subconsultants) ........... 18 Independent Office of Audits and Investigations’ Responsibilities ........................... 19 Audits and Reviews to be Performed ...................................................................... 19 Indirect Cost Rate Audits ......................................................................................... 19 CPA Workpaper Reviews ........................................................................................ 20 Contract Audits ........................................................................................................ 20 Incurred Cost Audits ................................................................................................ 20 Audit Findings and Review Deficiencies .................................................................. 20
10.1.4 Consultant Selection Methods .................................................................................. 23 One-Step RFP ......................................................................................................... 23 One-Step RFQ ........................................................................................................ 23 Two-Step (RFQ Followed by RFP) .......................................................................... 23
10.1.5 Consultant Selection Using the One-Step RFP Method ........................................... 24 Appoint Consultant Selection Committee ................................................................ 24 Develop Technical Criteria for Evaluation of Proposals........................................... 24 Develop Schedule for Consultant Selection ............................................................ 25 Prepare RFP ........................................................................................................... 25 Financial Management and Accounting System Requirements .............................. 26 Advertise for Consultants ........................................................................................ 26 Conduct Proposer’s Conference or Answer Written Questions ............................... 26 Receive and Evaluate Technical Proposals ............................................................ 27 Develop Final Ranking and Notify Consultants of Results ...................................... 27 Negotiate Contract with Top-Ranked Consultant .................................................... 27
10.1.6 Consultant Selection Using the One-Step RFQ Method ........................................ 29 Appoint Consultant Selection Committee ................................................................ 29 Develop Technical Criteria for Evaluation of Qualifications ..................................... 29 Develop Schedule for Consultant Selection ............................................................ 30 Prepare RFQ ........................................................................................................... 30 Financial Management and Accounting System Requirements .............................. 31 Advertise for Consultants ........................................................................................ 31 Issue/Publish RFQ .................................................................................................. 31 Receive/Evaluate Statements of Qualifications and Develop Shortlist .................... 32 Notify Consultants of Shortlist ................................................................................. 32 Interview Top-Ranked Consultants ......................................................................... 32 Develop Final Ranking and Notify Consultants of Results ...................................... 33 Conduct Scoping Meeting ....................................................................................... 33 108
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Request Cost Proposal ........................................................................................... 33 Negotiate Contract with Top-Ranked Consultant .................................................... 34
10.1.7 Consultant Selection Using the Two-Step RFQ/RFP Method ................................. 35 Combined RFQ and RFP ........................................................................................ 35 Categorize Work ..................................................................................................... 36 Establish Minimum Qualifications ............................................................................ 37 Issue RFQ ............................................................................................................... 37 Set-Up Evaluation Process ..................................................................................... 38 Evaluate Qualifications and Add Firm to List ........................................................... 38 Maintain List ............................................................................................................ 39 Issue RFP to Prequalified Consultants on List ........................................................ 39 Conduct Proposer’s Conference or Answer Written Questions ............................... 39 Receive and Evaluate Technical Proposals ............................................................ 40 Develop Final Ranking and Notify Consultants of Results ...................................... 40 Request Cost Proposal and Negotiate Contract with Top-Ranked Consultant ........ 40
10.1.8 Completing the Project ............................................................................................ 42 Develop the Final Contract ...................................................................................... 42 Review and Approval of Contracts .......................................................................... 42 Execute Contract and Issue Notice to Proceed to Consultant ................................. 43 Administer the Contract ........................................................................................... 43 Substitution of Consultant Personnel and Subconsultants ...................................... 44 Invoicing (or Progress Payments) ........................................................................... 44 Contract Amendments ............................................................................................. 45 Performance Evaluation .......................................................................................... 46 Project Records ....................................................................................................... 46 Retention Clauses ................................................................................................... 47 Review of Local Public Agency Actions ................................................................... 47
10.1.9 Miscellaneous Considerations .................................................................................. 47 Agreements with Other Governmental Agencies .................................................... 47 Small Purchase Contracts ....................................................................................... 48 Noncompetitive Negotiated Contracts (Sole-Source) .............................................. 48 Retaining a Consultant in a Management Support Role (CMSR) ............................ 48 Construction Engineering Services ......................................................................... 51 10.1.10 Program Management ............................................................................................ 52
10.1.11 References ............................................................................................................. 53
10.2 STATE-ONLY FUNDED A&E CONTRACTS ............................................................. 55
10.2.1 General .................................................................................................................... 55
10.2.2 Definition of A&E ...................................................................................................... 55 109
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10.2.3 Minimum Audit Requirements .................................................................................. 56 A. Written Procedures ............................................................................................. 56 B. Conflict of Interest ............................................................................................... 56 C. Records .............................................................................................................. 56 D. Full & Open Competition ..................................................................................... 56 E. Selection Basis ................................................................................................... 56 F. Publication .......................................................................................................... 56 G. Solicitation .......................................................................................................... 56 H. Cost Analysis ...................................................................................................... 57 I. Negotiations ......................................................................................................... 57 J. Audit and Review Process ................................................................................... 57 K. A&E Consultant Contract Form ........................................................................... 57
10.3 NON-A&E CONTRACTS ........................................................................................... 61 Scope ...................................................................................................................... 61 Determining Non-A&E ............................................................................................. 61 Example of Determining Non-A&E .......................................................................... 61 Intelligent Transportation System (ITS) Projects ..................................................... 62 Non-Infrastructure Projects ..................................................................................... 62 Governing Regulations and Codes for Non-A&E .................................................... 63 Procurement of Non-A&E Consultant Contracts ..................................................... 63 RFP Basic Requirements ........................................................................................ 63 Additional Requirements and Evaluation Criteria .................................................... 64 Consultant’s Proposal ............................................................................................. 64 Cost Proposal Worksheet ........................................................................................ 65 DBE Consideration .................................................................................................. 65 Administrative Requirements .................................................................................. 65 Oral Presentations Optional .................................................................................... 66 Cost-Effective / Public Interest Finding .................................................................... 66 Protest / Appeals / Reinstatement Procedures ........................................................ 66
10.4 A&E OVERSIGHT PROGRAM AND PROCESS REVIEW ........................................ 67 General ................................................................................................................... 67 Type of Reviews ...................................................................................................... 67 A&E Consultant Contract Form Review .................................................................. 67 Review Findings and Deficiencies ........................................................................... 68
10.5 SANCTIONS .............................................................................................................. 69
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Exhibits
Exhibit 10-B: Suggested Consultant Evaluation Sheet
Exhibit 10-G: Individual A&E Task Order DBE Tracking Sheet Exhibit 10-I: Notice to Proposers DBE Information
Exhibit 10-O1: Consultant Proposal DBE Commitment
Exhibit 10-O2: Consultant Contract DBE Commitment
Exhibit 10-Q: Disclosure of Lobbying Activities
Exhibit 10-R: A&E Boiler Plate Agreement Language
Exhibit 10-S: Consultant Performance Evaluation
Exhibit 10-T: Conflict of Interest & Confidentiality Statement Exhibit 10-U: Consultant in Management Support Role Conflict of Interest and Confidentiality Statement
All LAPM Exhibits are located at:
https://dot.ca.gov/programs/local-assistance/forms/local-assistance -procedures-manual-forms
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10.1 FEDERALLY-FUNDED A&E CONTRACTS
Procurement Planning
1 2 3
*Select Project
*Set Project Objectives
*Determine Project Schedule
*Obtain CTC Allocation/Federal
Authorization to Proceed prior to
beginning reimbursable work
* Solicitations for Consultant in
Management Support Role
(CMSR): submit Conflict of
Interest (COI) and Scope of Work
(SOW) to DLA-HQ prior to
contract advertisement and
receive FHWA approval prior to
contract advertisement
*Identify Need for Consultant
*Appoint Contract Administrator
*Segment Project Work
*Define SOW of A&E Consultant
*Specify Products to be
delivered
*Estimate Cost of Consultant Work
(independent cost estimate)
*Determine Type of Contract
(Project Specific or On-Call)
*Determine Method of Payment:
Lump Sum; Cost-Plus- Fixed-
Fee; Cost Per Unit of Work; or
Specific Rate of Compensation
*Submit Exhibit 9-D: Contract
Goal Methodology to DLAE for
review and concurrence prior to
contract advertisement
The Division of Local Assistance Acronyms List is available at:
https://dot.ca.gov/
-/media/dot-media/programs/local-assistance/documents/guide/dla-acronyms.pdf
Local Public Agency Local Public Agency
Figure 10-1: A&E Contract Procurement Process Workflow Diagram Local Public Agency
112
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Solicitation Documents and Advertisement
4 5 6
*Determine Solicitation Document;
RFP or RFQ
*Appoint Consultant
Selection
Committee
*Collect signed Conflict of Interest
forms and Confidentiality
Statements (see Exhibit 10-T:
Conflict of Interest &
Confidentiality Statement) from all
members involved in process
*Determine Procurement Schedule
*Develop Technical
Criteria
with level of importance
(weights) for Evaluation of
Proposals or the SOQ
*Prepare RFP or RFQ documents
*Include SOW, evaluation
process/criteria, DBE goals, MOP
and cost proposal, minimum
requirement of Proposal or SOQ,
Notice to Proposers DBE
Information (see Exhibit 10-I:
Notice to Proposers DBE
Information), submittal deadline
*Advertise RFP or RFQ on public
forum (newspaper, technical
publications, web hosting site,
other local websites)
*Issue RFP or RFQ (direct mailing,
web posting)
*Prepare to respond to
RFP/RFQ questions
*Conduct Proposers Conference,
if applicable
*Receive Proposals or
SOQs
Local Public Agency Local Public Agency Local Public Agency Figure 10-1: A&E Contract Procurement Process Workflow Diagram- continued 113
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Evaluation and Selection of Consultant
Contract Negotiation
7 8 9
*Distribute Proposals or SOQs to
Selection Committee members
*Ensure Committee members receive
the appropriate score sheet to use
(see Exhibit 10
-B: Suggested
Consultant Evaluation Sheet)
*Convene Selection Committee and
evaluate submittals; perform
reference checks
*Develop Final Ranking or Short List
*Notify proposers of ranking/Short
List
*Retain all original score sheets and
summaries
*Send out RFPs to Short List
(two-step process)
*Conduct Interview of Short List
(if needed)
*Develop Final Ranking of
Consultants, and notify all
interviewees
*Retain all original score sheets
and summaries
*Provide a copy of Standard
Contract language to top ranked
consultant and invite for
negotiations (see Exhibit 10-R:
A&E Boiler Plate Agreement
Language for standard contract
language and provisions)
*Open and analyze cost
proposal from the Highest
Ranked firm
*Review and evaluate Financial
Document Review Request and
supporting documents, if
applicable
*Issue Financial Review Letter, if
applicable
*Perform contract audits and
reviews, if applicable, or review
of CPA audited ICR workpapers
to issue Cognizant Letter of
Approval
Local Public Agency Local Public Agency
Caltrans IOAI
Figure 10-1: A&E Contract Procurement Process Workflow Diagram- continued Local Public Agency
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Contract Negotiation
Contract Execution
10 11 12
*Negotiate contract costs with the
most qualified Consultant
*Prepare and retain record of cost
negotiations
*Initiate CT IOAI Financial Review
Section
(Section 10.1.3: A&E
Consultant Audit and Review
Process) and send documents
(Financial Document Review
Request), if applicable, to
Caltrans IOAI
*Receive and analyze findings of
the Financial Review Letter from
CT IOAI, if any
*Address and resolve all findings
by IOAI and incorporate into final
contract and cost proposal
*If negotiations with First ranked
firm is unsuccessful, formally
terminate cost negotiations with
Consultant and begin Step 9 with
next ranked consultant
*For CMSR, submit Exhibit 10-U:
Consultant in Management
Support Role Conflict of Interest
and Confidentiality Statement (if
applicable) to DLA-HQ. LPA will
receive FHWA’s approved Exhibit
10-U via email. FHWA approval
required prior to award.
*Complete and submit the A&E
Consultant Contract form to the
A&E Consultant Contract
database prior to award or after
award, but no later than the first
invoice
*Retain A&E Consultant Contract
form
*Finalize contract, cost proposal
*Retain copy of contract Financial
Review Letter with acceptance,
denial, or adjustment of the ICR
*Sign and Execute contract
*Offer and conduct debriefing
meetings with consultant who
asked for one
*Send copies of executed
contract and DBE Commitment
Exhibits (Exhibit 10-O1:
Consultant Proposal DBE
Commitment and Exhibit 10-O2:
Consultant Contract DBE
Commitment) to DLAE
*Close out contract procurement
process
*Prior to concurring with invoice
payment related to consultant
services, ensure submittal of
the A&E Consultant Contract
form and District has received
and has a file on copy of the
executed consultant contract,
Exhibit 10-O1 Consultant
Proposal DBE Commitment,
Exhibit 10-O2: Consultant
Contract DBE Commitment.
Also, check IOAI database to
ensure that Certification of
Indirect Costs and Financial
Management System, if
applicable, has been accepted
by IOAI.
*Perform Incurred Cost Audit, if
selected
Local Public Agency Local Public Agency DLAE
Figure 10-1: A&E Contract Procurement Process Workflow Diagram- continued Caltrans IOAI
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10.1.1 General
Introduction
A Local Public Agency (LPA) may engage consultants to perform architectural, engineering, and related services to develop a federal-aid funded project. LPAs requesting federal funds to reimburse Architectural and Engineering (A&E) Consultants must follow the selection and contracting procedures detailed in Section 10.1: Federally-Funded A&E Contracts of this chapter. LPAs using local funds to procure an A&E Consultant on a federal-aid funded project and will not seek federal reimbursement for the consultant cost may choose not to follow the selection and contracting procedures detailed in Section 10.1 of this chapter. LPAs using local funds to procure a Consultant in a Management Support Role (CMSR) are required to obtain FHWA approval (see Section 10.1.9: Retaining a CMSR of this chapter).
Definition of an Architectural and Engineering Consultant 23 CFR 172 and California Government Code 4525 defines A&E services as those private consulting firms providing architectural, landscape architectural, engineering, environmental, land surveying, construction engineering, or program management.
Architectural and Engineering Consultants
The Brooks Act (40 U.S.C.1101-1104) requires LPAs to award federally-funded engineering and design related contracts based on fair and open competitive negotiations, demonstrated competence, and professional qualifications (23 CFR 172), at a fair and reasonable price (48 CFR 31.201-3).
Cost proposals submitted to the LPA must be sealed and must not be included as a criterion for rating such consultants. After ranking, cost negotiations will begin with the most qualified consultant and only their cost proposal will be opened. Should negotiations fail or result in a price that the LPA does not consider fair and reasonable, negotiations must be formally terminated, and the LPA must then undertake negotiations with the second most qualified consultant.
If the negotiations with the second most qualified firm are not successful, negotiations must be formally terminated and the LPA must then undertake negotiations with the third most qualified consultant, and so on, until the price is determined to be fair and reasonable by the LPA.
In selecting an A&E consultant, a detailed technical proposal or qualifications proposal, and a proposed contract will be required.
Depending upon the scope of work, the required contract provisions may need to include the California State Prevailing Wages (Federal Payment of Predetermined Minimum Wage applies only to federal-aid construction contracts). Prevailing wages will apply if the services to be performed will involve land surveying (such as flag persons, survey party chief, rodman, or chainman), materials sampling and testing (such as drilling rig operators, pile driving, crane operators), inspection work, soils or foundation investigations, environmental hazardous materials and so forth. California State Prevailing Wage information is available through the California Department of Industrial Relations (DIR) websites below:
Consultants will need to provide their Prevailing Wage Policy if their participation on the project includes prevailing wage work. The policy will include information on the accounting treatment of delta base and delta fringe, and verify the accounting treatment is consistent every year. 116
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• DIR FAQ website
• D IR Wage Determination website
Non-A&E Consultants
Consultants other than A&E consultants may be selected using cost, cost and qualifications (best value), or other critical selection criteria. The procedures outlined in this chapter can be modified for selecting non-A&E consultants by adding a cost item to the contract proposal.
For more details on non-A&E consultants, see Section 10.3: Non-A&E Contracts of this chapter.
Selecting the Project
The LPA is responsible for selecting and initiating a federal-aid financed transportation project.
The decision to begin project development is influenced by the project needs, its acceptability, the timing of studies, financing, and construction. The LPA must identify the project’s objectives including the general level of improvement or service, operating standards, maximum cost, and the target date for project completion before commencing any consultant selection process.
Subcontracted Services
The consultant is responsible for performing the work required under the contract in a manner acceptable to the LPA. The consultant’s organization and all associated consultants and subconsultants must be identified in the proposal. If the consultant wishes to use a subconsultant not specified in the proposal, prior written approval must be obtained from the LPA. The subcontract must contain all required provisions of the prime contract. All subawards must include adequate oversight, management, and administration of engineering and design related consultant services and be administered in accordance with State laws and procedures specified in 23 U.S.C.106(g)(4) and 2 CFR 200.331-333.
Organizational and Consultant Conflicts of Interest
In the procurement of contracts for engineering services by private consulting firms using federal-aid highway funds, LPAs must take all the steps necessary to prevent fraud, waste, and abuse. The LPA must develop and maintain a written code of conduct governing the performance of its employees (including the contract administrator) engaged in the award and administration of federal-aid highway funded contracts, including the prevention of conflicts of interest in accordance with 23 CFR 172.7(b)(4).
A conflict of interest occurs when a public official’s private interests and his or her public duties and responsibilities diverge or are not consistent. Conflicts of interest may be direct or indirect (e.g., as result of a personal or business relationship). The appearance of a conflict of interest should be avoided as an apparent conflict may undermine public trust if not sufficiently mitigated.
Federal Regulation Governing Conflict of Interest (23 CFR 172.7(b)(4)) requires that:
• LPA must maintain a written code of standards of conduct for employees engaged in the award and administration of engineering and design service contracts; • No contracting agency employee who participates in the procurement, management, or administration of federal-funded contracts or subcontracts must have, directly or indirectly, any financial or other personal interest in connection with such contract or subcontract;
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• No person or entity performing services for a contracting agency in connection with a federal-funded project must have, directly or indirectly, any financial or other personal interest, other than employment or retention by the contracting agency, in any contract or subcontract in connection with such project;
• No person or entity performing services for a contracting agency in connection with a federal-aid highway funded project must have, directly or indirectly, any financial or other personal interest in any real property acquired for the project; • No contracting agency employees or agents must neither solicit nor accept gratuities, favors, or anything of monetary value from consultants, potential consultants, or parties to sub-agreements;
• LPA must promptly disclose in writing any potential conflict of interest to FHWA.
Consultants Performing Work on Multiple Phases of Federal-aid Projects LPAs may choose to hire the same consultant firm to perform construction engineering and/or inspection services on the same project on which the firm also performed design services. This can cause project delivery efficiencies, as the design firm is well-suited to verify that the project is being constructed in accordance with the design and can resolve issues related to the design on behalf of the contracting agency. However, this may also pose a potential conflict of interest if the firm has a vested financial interest in failing to disclose deficiencies in its design work product and seeks to insulate itself from pecuniary liability in subsequent phases of the project, such as minimizing or ignoring design errors and omissions, rather than serving the best interests of the contracting agency and the public. Procuring a different firm from the design firm to provide the construction engineering and/or inspection services provides another level of review and reduces the risk of, or potential for, a conflict of interest.
Although federal regulations do not expressly prohibit the same firm from providing services on subsequent phases, the LPAs are responsible for ensuring the public interest is maintained throughout the life of a project and that a conflict of interest, real or apparent, does not occur or is sufficiently mitigated by appropriate public agency controls. Prior to allowing a consulting firm to provide services on subsequent phases of the same project, the contracting agency must establish appropriate compensating controls in policies, procedures, practices, and other safeguards to ensure a conflict of interest does not occur in the procurement, management, and administration of consultant services.
When design and construction phase services are procured under a single solicitation, the selection of the consulting firm must be based on the overall qualifications to provide both design and construction phase services, which require different skill sets, experience, and resources. Procuring these services under different solicitations may result in selection of a more qualified firm to perform services in each phase, as the most qualified firm to perform design phase services may not be the most qualified firm to provide construction phase services. Similarly, the qualifications and capacity of a firm may change over time. As such, it may not be appropriate to contract with a consulting firm to provide construction phase services at the outset of a design phase, knowing that these services may not be needed for an extended period until the preconstruction phase of the project is complete and construction funding authorized. The contract with a consulting firm providing design phase services on a project may not be amended to include construction phase services unless the desired construction phase services were included within the original advertised scope of services and evaluation criteria of the solicitation from which a qualifications-based selection was conducted.
All consultants acting in a management support role must complete Exhibit 10-U: Consultant in 118
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Management Support Role Conflict of Interest and Confidentiality Statement (see Section
10.1.9: Miscellaneous Considerations in this chapter) and retain it in the LPA files.
Miscellaneous Considerations Authorization to Proceed
The Federal Highway Administration (FHWA) must give the LPA an Authorization to Proceed
(E-76) with the work prior to performing of any work for which federal reimbursement is to be requested, (see LAPM Chapter 3: Project Authorization). Eligible consultant contracts may be procured using local funds prior to receiving the E-76, but reimbursement is for work performed after the E-76 authorization date. If contract is procured using state or local funds, federal procedures must have been followed if seeking federal reimbursement. For state-funded projects see Section 10.2: State-Only Funded A&E Contracts and LAPG Chapter 2 5: State Programs for Local Agency Projects, for guidance on when work may proceed.
Copies of the Authorization to Proceed and the consultant contract must be retained in the LPA project files for future audit.
10.1.2 Identifying & Defining a Need for Consultants
The need for a consultant is identified by comparing the project’s schedule and objectives with the LPA’s capabilities, its staff availability of the required expertise, and its funding resources. If the LPA does not have sufficient staff capabilities, it may solicit assistance from another agency, or use a qualified private consultant to perform the required work.
If the LPA determines that there is a need to solicit assistance from another LPA, or to use a consultant, the District Local Assistance Engineer (DLAE) should be notified if federal-aid funds are to be requested for the project segment to be contracted out.
Appointing the Contract Administrator
The Contract Administrator is responsible for ensuring the quality of consultant contract products or services. The Contract Administrator is appointed as soon as the need for consultant services is identified. The Contract Administrator is involved throughout the development of the selection process and the contract provisions, and in the administration of the consultant’s work. The Contract Administrator must be a qualified LPA employee or have staff that is qualified to ensure the consultant’s work is complete, accurate, and consistent with the terms and conditions of the consultant contract. On federal-aid contracts, the Contract Administrator or staff members must be a full-time employee and familiar with the work to be contracted out and the standards to be used. The Contract Administrator must also abide by the laws, regulations and policies required as part of accepting federal or state funding for their project. Non-compliance with the laws, regulations, and policies may result in loss of project funding.
The Contract Administrator’s duties are listed in 23 CFR 172.9(d)(1) and include:
• Contract negotiation, contract payment, and evaluation of compliance performance, and quality of services provided by the consultant;
• Being familiar with the contract requirements, scope of services to be performed, and products to be produced by the consultant;
• Being familiar with the qualifications and responsibilities of the consultant’s staff and evaluating any requested changes in key personnel;
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• Scheduling and attending progress and project review meetings, commensurate with the magnitude, complexity, and type of work, to ensure the work is progressing in accordance with established scope of work and schedule milestones; • Documenting contract monitoring activities and maintaining supporting contract records as specified in 2 CFR 200.332-334;
• Provides direction to ensure the proposed work is advertised properly; • Prepares and distributes the Request for Qualifications (RFQ), description of work, and Request for Proposals (RFP), if used;
• Prepares the draft contract;
• Arranges for preparation before an independent estimate of the value of the work to be contracted out;
• Ensures that the selection procedures are followed;
• Analyzes the selected/best-qualified consultant’s cost proposal; • Ensures contract audit and review procedure is followed; • Ensures that fee/profit negotiation is conducted and keeps records; • Serves as the LPA’s primary contact person for the successful consultant; • Monitors the consultant’s progress and provides direction; • Ensuring consultant costs billed are allowable in accordance with the Federal cost principles and consistent with the contract terms as well as the acceptability and progress of the consultant’s work;
• Identifies other LPA staff for the consultant to contact, if needed; • Closes out the contract at completion, by processing the final invoice; completing a mandatory consultant evaluation, and final DBE utilization reports (Exhibit 17-F: Final Report - Utilization of Disadvantaged Business Enterprises (DBE) and First-Tier Subcontractors) or Exhibit 17-F1: Final Report - Utilization of Disadvantaged Business Enterprises (DBE) for A&E On-Call Contracts.
Segmenting Consultant Work
Consultant services are most effective when consultant work is segmented appropriately. The extent of segmenting depends upon the type and complexity of the work. Combining preliminary engineering tasks with the preparation of the required environmental analysis is normally desirable. Preparing an Environmental Assessment (EA) or Environmental Impact Statement (EIS) is more than simply writing a report. Assessment and impact reports include preliminary engineering needed to analyze project alternatives and produce an engineering and planning assessment. Initial project studies include only as much traffic and engineering analysis of alternatives, as is needed to produce a sound EA or EIS (see LAPM Chapter 6 Environmental Procedures and Standard Environmental Reference (SER) Chapter 31:Environ mental Assessment (EA)/Finding of No Significant Impact (FONSI) and SER Chapter 32:Environmental Impact Statement (EIS). Final design must not begin until NEPA environmental approval has been received if federal reimbursement is desired.
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Refer to Figure 10-2: Segmenting Consultant Work below, which illustrates several satisfactory ways to segment consultant activities.
Figure 10-2: Segmenting Consultant Work
Specify Products to be Delivered
The Contract Administrator identifies the products and services to be delivered as a result of consultant contract work, and minimum qualification of consultant professionals and staff. These vary depending upon the type of projects and the phase of project development being addressed.
Scope of Consultant Work
The scope of work, which the contract must include, is a detailed description of the products or services the consultant is to provide. From a detailed scope of work, consultants respond to a project advertisement, determine personnel and time requirements, and develop a technical proposal. Therefore, the scope of work must be clear, concise, complete, and describe the deliverables, standards for design and other work, quality control measures, acceptance criteria and deadlines.
Title VI Assurances
Title VI Assurances Appendices A and E must be included in each consultant contract. Include Title VI Assurances Appendices B, C, and D if applicable. The consultant must include the Title VI Assurances Appendices A and E, and if applicable Appendices B, C, and D in all subcontracts to perform work under the contract. Include Title VI Assurances Appendices B, C, and D if applicable. Refer to Exhibit 10-R: A&E Boilerplate Agreement Language, Article XXXII Title VI Assurances. Disadvantaged Business Enterprises will be afforded full opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, sex, national origin, religion, age, or disability in consideration for an award. 121
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Non-Discrimination Clause
The Non-Discrimination Clause (Exhibit 10-R: A&E Boilerplate Agreement Language, Article XVI Non-Discrimination Clause and Statement of Compliance) must be included in each consultant contract. The consultant must include the non-discrimination and compliance provisions of the Non-Discrimination Clause in all subcontracts to perform work under the contract.
Disadvantaged Business Enterprise (DBE) Participation
When administering federal-aid projects, federal regulations (49 CFR 26) require the LPA to comply with the DBE program and take necessary steps to ensure that DBE firms have the opportunity to participate in the projects. Refer to LAPM Chapter 9: Civil Rights and Disadvantaged Business Enterprises for DBE requirements for A&E Consultant Contracts.
Estimated Cost of Consultant Work
An independent estimate for cost or price analysis is needed for all consultant contracts (23 CFR 172.7(a)(1)(v)(B)) to ensure that consultant services are obtained at a fair and reasonable price. The estimate must be prepared prior to opening the cost proposal from the top-ranked consultant, so the LPA has a cost comparison to evaluate the reasonableness of the consultant’s cost proposal. The estimate, which is specifically for the use of the LPA’s negotiating team, is to be kept confidential and maintained for records.
A good cost estimate can be prepared only if the scope of work is defined clearly. The scope of work must include a list of the products or services which the consultant is required to deliver, and a time schedule of when they must be delivered.
It should be stressed that all work to be derived from the consultant services, such as preliminary design, environmental, or final design, must be clearly identified in the solicitation of consultant services (RFQ or RFP) and included in the cost estimate. The addition of work to the original scope by amendment should be avoided whenever possible. Contract modifications are required for any amendments to the terms of the existing contract that change the cost of the contract; significantly change the character, scope, complexity, or duration of the work; or significantly change the conditions under which the work is required to be performed.
Some of the costs estimating techniques are:
Analogous Estimating:
Analogous cost estimating is using the actual cost of a previous, similar contract as the basis for estimating the cost of the current contract. Analogous cost estimating is frequently used to estimate costs when there is a limited amount of detailed information about the project.
Analogous cost estimating is generally less accurate, and it is most reliable when previous projects are similar in fact, and not just in appearance, and it uses expert judgment.
Parametric Estimating:
Parametric estimating is a technique that uses statistical relationship between historical data and other variables to calculate a cost estimate for an activity resource. This technique can produce a higher level of accuracy depending upon the sophistication, as well as underlying resource quantity and the cost data. A cost example would involve multiplying the planned quantity of work by the historical cost per unit to obtain the estimated cost of the contract.
Bottom-up Estimating:
This technique involves estimating the cost for individual work in the contract with the lowest level of detail. This detailed cost is then summarized or rolled up to determine a total cost of 122
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contract. Cost detail should include estimated hours per task, labor hourly cost for professional and non-professional classifications, subconsultant costs, other project direct costs, and profit.
Labor costs should be broken down to direct labor and indirect cost rates, if possible.
If more than one project or phase of work is to be developed within the consultant contract, separate cost estimates are required for each project or phase of work. Separate cost estimates are required for each milestone and portion of the work expected to be subcontracted.
For on-call (as-needed) contracts, the cost estimate/analysis should include at minimum, a historical analysis of annual needs for consultant work, professional labor cost and market analysis, and reasonable profit analysis.
Determine Type of Contract
Types of contracts to be used are described as follows:
• Project-specific contract is between the LPA and consultant for the performance of services and a defined scope of work related to a specific project or projects. • Multi-phase contract is a project-specific contract where the defined scope of work is divided into phases which may be negotiated and executed individually as the project progresses.
• On-call contract is a contract that may be utilized for a number of projects, under which task or work orders are issued on an as-needed basis, for an established contract period and maximum total contract dollar amount. On-call contracts are typically used when a specialized service of indefinite delivery or indefinite quantity is needed for a number of different projects, such as construction engineering, design, environmental analysis, traffic studies, geotechnical studies, and field surveying, etc. Many agencies use these contracts to address peaks in workload of in-house engineering staff and/or to perform a specialized service which the agency does not have. On-call contracts must specify a reasonable maximum length of contract, not to exceed five (5) years, and a maximum total contract dollar amount (23 CFR 172.7(a)(2)(iv)). The maximum dollar amount for all contracts awarded under the solicitation must be stated in the solicitation. The maximum dollar amount is the aggregate of the on-call contracts anticipated to be awarded. For example, if the solicitation lists that up to five (5) contracts may be awarded, the aggregate amount of these 5 contracts is the maximum contract dollar amount. Setting maximum amount on each on-call contract under a multiple on-call solicitation does not meet the intent of 23 CFR 172. How many contracts are anticipated to be awarded must be stated in the solicitation. How task orders will be issued must be stated in the solicitation.
There are two options on how task orders must be awarded under multiple on-call contracts for the same type of service under the same solicitation:
1. Through an additional qualifications-based selection procedure also known as mini-RFP.
• Solicit task order to the multiple on-call consultants on the master on-call contracts
o Master on-call contracts are contracts awarded to on-call consultants at the initial RFQ/RFP procurement process. 123
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o Solicitation may be informal, e.g. email, letter, etc.; documentation is required.
o Evaluation criteria must be included in the solicitation. The mini- RFP contains evaluation criteria that matches the strengths of the qualified firms to the specifics of the known tasks, thereby selecting the most qualified firm for each task.
o The evaluation criteria can include:
i. availability of personnel,
ii. staff capabilities,
iii. DBE (10% or less of overall score); the overall DBE goal was established at the master on-call contract,
iv. completion of time,
v. experience of consultant
vi. specialized expertise, and past performance.
• Evaluate and rank proposals and select from the multiple on-call contracted consultants
o Recommend at least three panel members to evaluate and rank o Evaluate based on criteria in mini-RFP solicitation
• Negotiate and award to the on-call contracted consultant o The mini-RFP or the task order will be negotiated with first ranked firm from each competition. Task order (mini-RFP) cost will be based on wage rates established in the master on-call contract, and the time and deliverable requirements in the task order. • If only one proposal is received or there is an emergency, a Non- Competitive process must be justified, and Exhibit 12-F: Cost Effectiveness / Public Interest Finding / A&E Noncompetitive must be documented and signed by the DLAE
• Awarding task order to the multiple on-call consultants on a rotational basis does not meet the intent of the qualifications-based selection • Exhibit 10
-G: Individual A&E Task Order DBE Tracking Sheet must be used to track percentage of DBE after a task order is completed • Each task order must have an Exhibit 10-O1: Consultant Proposal DBE Commitment and Exhibit 10 -O2: Consultant Contract DBE Commitment as applicable
2. Regional basis where each on -call consultant is contracted to a designated area.
To maintain the intent of the Brooks Act (40 U.S.C.1101-1104) in promoting open competition and selection based on demonstrated competence and qualifications, on- call consultant contracts established through the RFQ process must meet the following requirements:
• Must define a general scope of work, complexity, and professional nature of services.
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• Specify a task order procedure the LPA uses to procure project-specific work under the contract.
• Task order work performed after the master on-call contract has expired will result in those costs being ineligible for federal or state reimbursement. • If multiple consultants are to be selected and multiple on-call contracts awarded through a single solicitation for specific services, the number of consultants that may be selected or contracts that may be awarded must be identified. • Specify procurement procedures in the contracts the LPA will use to award/ execute task orders among the consultants:
o Either through an additional qualification-based selection process (see the Two-Step RFQ/RFP process later in this chapter), OR o On regional basis whereby the region is divided into areas identified in the solicitation, and consultants are selected to provide on-call services for assigned areas only. The RFP may list multiple regions that allow consultants to crossover or be a “backup” to other consultants that for specifically documented reasons are not able to perform the work in their assigned region. Per 23 CFR 172.9 (a)(3)(iv)(B)(2), the “backup” option needs to be listed in the respective contracts.
An example of acceptable contract wording in multiple on-call contracts for the same type of service:
• “Agency has or will enter into three (3) task order contracts for performance of the Scope of Services identified in Exhibit “A”, including this Agreement (“CM Services Task Order Contracts”). The other CM Services Task Order Contracts are [identify other two contracts by agreement numbers and consultant firms].
The total amount payable by Agency for the CM Services Task Order Contracts must not exceed a cumulative maximum total value of Seven Million, Five Hundred Thousand Dollars ($7,500,000) (“NTE Sum”). It is understood and agreed that there is no guarantee, either expressed or implied that this dollar amount will be authorized under the CM Services Task Order Contracts through Task Orders. Each time a Task Order is awarded under any of the CM Services Task Order Contracts, the Agency must send written notification to Consultant and each of the other consultants entering into the CM Services Task Order Contracts. The notice must identify the total funds allocated under issued Task Orders, and the remaining unencumbered amount of the NTE Sum. Consultant acknowledges and agrees that Agency must not pay any amount under this Agreement that would exceed the NTE Sum, and Consultant must not enter into a Task Order that exceeds the NTE Sum.”
Determining the Project Schedule
The LPA develops a schedule for performance of work and completion of the project. The schedule must include sufficient time to allow for:
• Selecting the consultant;
• Developing the consultant contract;
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• Completing the A&E consultant contract audit process; • Conducting meetings and project reviews.
Determine Method of Payment
The method of payment of contract must be specified. The following four methods are permitted under 23 CFR 172.9(b) depending on the scope of services to be performed (sample cost proposals are provided on the DLA Consultant Selection and Procurement website):
• Cost-Plus-Fixed Fee
• Cost Per Unit of Work
• Specific Rates of
Compensation
• Lump Sum
The method of payment to the consultant must be set forth in the original solicitation, contract, and in any contract modification thereto. A single contract may contain different payment methods as appropriate for compensation of different elements of work. Markups are not allowed on any of the four methods of payment.
The cost plus a percentage of cost and percentage of construction cost methods of payment must not be used. Both of these methods are explicitly prohibited by 23 CFR 172.9(b).
Cost-Plus-Fixed Fee
The consultant is reimbursed for costs incurred and receives an additional predetermined amount as a fixed fee (profit). Federal regulations require that profit be separately negotiated from contract costs. The determination of the amount of the fixed fee must take into account the size, complexity, duration, and degree of risk involved in the work. The fixed fee is not adjustable during the life of the contract. The fixed fee dollar amount must be clearly stated in the contract. See the DLA Consultant Selection and Procurement website for a useful tool on Profit/Fee Determination.
This method of payment is appropriate when the extent, scope, complexity, character, or duration of work cannot be precisely predicted. The fixed fee limit applies to the total direct and indirect costs. Fixed fees in excess of 15 percent of the total direct labor and indirect costs of the contract may be justified only when exceptional circumstances exist. The contract must specify a reasonable maximum length of contract period and a maximum total contract d ollar
amount (see Exhibit 10-R: A&E Boilerplate Agreement Language, Article V, Option 1). The contract cost proposal must identify all key employees and/or classifications to be billed. New key employees and/or classifications must be approved by the LPA before they incur work on the contract, or the costs can be questioned or disallowed. LPAs are not required to update the A&E Consultant Contract form when new key employees and/or classification are added to a contract. For more details, reference Section 10.1.8. Completing the Project.
Cost Per Unit of Work
The consultant is paid based on specific item of work performed. The item of work must be similar, repetitious, and measurable, such as a specific geotechnical investigation and material testing. This method of payment is appropriate when the cost per unit of work can be determined with reasonable accuracy in advance, but the extent or quantity of the work is indefinite. Contract payment provisions must specify what is included in the price to be paid for 126
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each item. Any item of work not identified in the contract cost proposal is not eligible for reimbursement. New items of work (those within the original scope of work only) must be amended into the contract before work is performed. The contract must also specify a reasonable maximum length of contract period and a maximum total contract dollar amount (see Exhibit 10
-R: A&E Boilerplate Agreement Language, Article V Option 2).
Specified Rates of Compensation
The consultant is paid at an agreed and supported specific fixed hourly, daily, weekly, or monthly rate, for each class of employee engaged directly in the work. Such rates of pay include the consultant’s estimated costs and net fee (profit). Federal regulations require that profit be separately negotiated from contract costs. The specific rates of compensation, except for an individual acting as a sole proprietor, are to include an hourly breakdown, direct salary costs, fringe benefits, indirect costs, and net fee. Other direct costs may be included, such as travel and equipment rentals, if not already captured in the indirect cost rate. Other direct costs regardless of amount are to be listed on the cost proposal.
This method of payment should only be used when it is not possible at the time of procurement to estimate the extent or the duration of the work, or to estimate costs with any reasonable degree of accuracy. This method should not be used for project-specific contracts and is recommended for on-call contracts for specialized or support type services, such as construction engineering and inspection, where the consultant is not in direct control of the number of hours worked, and it also requires management and monitoring of the consultant’s level of effort and the classification of employees used to perform the contracted work. The contract must also specify a reasonable maximum length of contract period and a maximum total contract dollar amount (see Exhibit 10-R: A&E Boilerplate Agreement Language, Article V Option 3).
Lump Sum
The consultant performs the services stated in the contract for an agreed amount as compensation, including a net fee or profit. This method of payment is appropriate only if the extent, scope, complexity, character, duration, and risk of the work have been sufficiently defined to permit fair compensation to be determined and evaluated by all parties during negotiations (see Exhibit 10-R: A&E Boilerplate Agreement Language, Article V: Option 4).
Normally, a lump sum contract will be paid in full at end of the contract when completed.
However, a lump sum contract can be negotiated with progress payment if feasible. The progress payment must be based on percent of work complete or completion of clearly defined milestones. The contract cost proposal must document the agreed-upon progress payment and include the necessary milestones costs, or the percent work complete schedule.
A firm fixed price method of payment is not the same as lump sum. A firm fixed price contract must not be amended.
Changes to Cost Proposal
Changes to the cost proposal requiring resubmittal to Independent Office of Audits and Investigations (IOAI) for review:
• Consultant/subconsultant name change
• New participating subconsultant’s ICR
• Change in ICR rate
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Since these changes require an amendment, the LPA is to update the A&E Consultant Contract form.
10.1.3 A&E Consultant Audit and Review Process
This section outlines the audit and review process for A&E contracts that at any time use state or federal-aid highway funds in furtherance of highway construction projects. All proposed A&E contracts and supporting documents are subject to audit or review by Caltrans’ Independent Office of Audits and Investigations (IOAI), other state audit organizations, or the federal government. Not all proposed contracts will be audited or reviewed; rather, they will be selected on a risk-based approach.
Applicable Standards
State and federal requirements listed below, and specific contract requirements, serve as the standards for audits and reviews performed.
LPAs, consultants, and subconsultants are responsible for complying with state, federal, and specific contract requirements. LPAs are responsible for determining the eligibility of costs to be reimbursed to consultants.
Applicable standards include, but are not limited to:
• Caltrans Local Assistance Procedures Manual (LAPM);
• State and Federal agreements between LPAs and Caltrans, (i.e., Master Agreements); • Project Program Supplemental Agreements;
• 23 U.S.C., Section 112 – Letting of Contracts;
• 40 U.S.C., Chapter 11: the Brooks Act;
• 23 CFR 172 - Procurement, Management, and Administration of Engineering and Design Related Services;
• 23 CFR, Chapter 1- Federal Highway Administration, Department of Transportation; • 48 CFR, Federal Acquisition Regulation (FAR), Part 31- Contract Cost Principles and Procedures;
• 48 CFR, Chapter 99 – Cost Accounting Standards Board, Office of Federal Procurement Policy, Office of Management and Budget
• 2 CFR 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards;
• United States Government Accountability Office, Government Auditing Standards - Generally Accepted Government Auditing Standards (GAGAS); • California Government Code sections 4529.5 and 4529.10-4529.20; and • Proposed contract terms and conditions.
See Section 10.1.11: References of this chapter for links to above referenced standards.
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Audit Guidance Available
The American Association of State Highway and Transportation Officials (AASHTO), Uniform Audit & Accounting Guide (AASHTO Audit Guide), which is referred to frequently in this section, is a valuable tool to guide LPAs, consultants, and Certified Public Accountants (CPA) through the requirements for establishing, and audits of FAR-compliant Indirect Cost Rates (ICR). The AASHTO Audit Guide is used extensively as an industry guide in the audit and review process.
LPAs may seek accounting assistance from internal audit staff and an independent CPA for compliance. The consultant may seek professional guidance in selecting its independent CPA.
See also the AASHTO Audit Guide, Chapter 2. Selection of CPA Firm as Overhead Auditor for guidance in the selection process. Training is also offered by FHWA’s National Highway Institute (see https://www.nhi.fhwa.dot.gov/home.aspx). Courses offered include:
• Using the AASHTO Audit Guide for the Procurement and Administration of A&E Contracts (FHWA-NHI-231028)
• Using the AASHTO Audit Guide for the Development of A&E Consultant Indirect Cost Rates (FHWA- NHI-231029)
• Using the AASHTO Audit Guide for the Auditing and Oversight of A&E Consultant Indirect Cost Rates (FHWA-NHI-231030)
For training and additional information provided by Caltrans Local Assistance, visit the Caltrans
Local Assistance Blog. For FHWA’s Q&A for ICRs and audits, and A&E related services, visit FHWA Consultant Services website.
Allowable Costs
23 U.S.C.112(b)(2)(B) states that any A&E contract or subcontract awarded, whether funded in whole or in part with federal-aid highway funds in furtherance of highway construction projects, must be performed and audited in compliance with the Federal cost principles.
LPAs are required to perform a cost analysis to ensure all costs are allowable and in compliance with federal and state requirements and retain documentation of negotiation activities and resources. Hourly rate(s) for each key personnel and/or classification of employee(s) proposed in cost proposals must be reasonable for the work performed and actual, allowable, and allocable in accordance with the Federal cost principles. Costs must be allowable only if the cost is incurred and cost estimates included in negotiated prices are allowable in accordance with the federal and state regulations and procedures, and contract provisions.
LPAs are required to apply Caltrans-accepted consultant or subconsultant’s ICRs, to contracts.
An ICR is valid for the one-year applicable accounting period accepted or reviewed by Caltrans.
Consultants must update, on an annual basis, ICRs in accordance with the consultant’s annual accounting period and in compliance with the Federal cost principles. For further guidance, refer to 23 CFR 172.11(b)(1). If the consultant is subject to Cost Accounting Standards (CAS), the consultant must use the applicable ICR for the contract.
A consultant’s accepted ICR for its one-year applicable accounting period must be applied to contracts; however, once an ICR is established for a contract, it may be extended beyond the one-year applicable period, through the duration of the specific contract, provided all concerned parties agree. Agreement to the extension of the one-year applicable period must not be a condition or qualification to be considered for the work or contract award. The contract must clearly specify the ICR period if it is beyond the one-year applicable period. 129
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Consultants must account for costs appropriately and maintain records, including supporting documentation, adequate to demonstrate that costs claimed have been incurred, and are allowable, reasonable, and allocable to the contract, and comply with Federal cost principles.
IOAI and representatives of the Federal Government have the right to conduct an audit of all contract costs. If the costs are subsequently determined to be unallowable, these costs are subject to repayment. For further guidance, refer to 23 CFR 172 and 48 CFR 31.
Generally, whenever LPAs, consultants, and/or contractors are unable to provide requested documentation, it must be viewed that the services were either not performed or the costs not properly recorded. Retention of all documents is required as it reduces the possibility of audit findings and disallowed costs. For more references, refer to Applicable Standards in this chapter.
Safe Harbor Rate
Developing ICRs annually can place a significant burden on some small or new and emerging A&E consulting firms that lack financial sophistication to develop an ICR, as well as on other established A&E consulting firms that may not have previous experience with federally-funded contracts for which an ICR would have been developed in compliance with Federal cost principles 48 CFR 31. This may create a barrier for otherwise eligible and qualified firms to compete for federally-funded contracts.
To help alleviate and remove potential barriers, the Division of Local Assistance (DLA) has adopted Caltrans Division of Procurement and Contract’s (DPAC) Safe Harbor Rate (SHR) process and rates which took into account LPAs’ data. The SHR information and rates can be found at the DLA Consultant Selection and Procurement website:
https://dot.ca.gov/programs/local-assistance/guidance -and-oversight/consultant-selection- procurement. To request information regarding the SHR methodology, email the DLA A&E branch at [email protected]. Eligible A&E consultant firms can choose to use the DLA SHR rate on new A&E contracts using federal-aid highway funds executed by LPAs in the State of California.
Use and application of the SHR by eligible firms provides reasonable assurance of consultant compliance with the Federal cost principles per 23 CFR 172.11(c)(2). A&E consulting firms approved to use the established SHR will have their accounting system evaluated for capabilities of accumulating and tracking direct labor for applying the SHR, as well as for billing other direct costs by contract, segregating indirect costs, etc.
Use of the SHR is voluntary on behalf of the A&E consulting firm and LPAs. LPAs have the
discretion to determine certification of eligibility based on requirements shown on the following SHR certification form: Consultant Firm Certification of Eligibility and Certification of Financial Management System.
A&E consultant firms (prime consultants and/or sub consultants) that have not had an ICR previously accepted by a cognizant agency may elect and request to use the SHR in a contract by submitting the completed SHR certification form, Consultant Firm Certification of Eligibility and Certification of Financial Management System, including the Questionnaire for Evaluating Consultant Firm’s Financial Management System section, and any other documents as needed.
This requirement is in addition to the A&E Consultant Audit and Review Process requirements described in this chapter.
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It is the LPA’s responsibility to:
• Collect and screen all requests to use the safe harbor indirect cost rate. See SHR certification form, Consultant Firm Certification of Eligibility and Certification of Financial Management System, including the Questionnaire for Evaluating Consultant Firm’s Financial Management System section.
• Submit all SHR documents to the Independent Office of Audits & Investigations (IOAI) as part of the Financial Document Review Request package
. The IOAI email address is:
Requests to use the safe harbor indirect cost rate must be accepted/approved by IOAI before contracts are executed.
Approval or Acceptance of Indirect Cost Rates
Cognizant Letters of Approval
A cognizant approved ICR has been audited by a Cognizant agency (a State transportation agency of the State where the consultant's accounting and financial records are located or a State transportation agency to which cognizance for the particular indirect cost rate(s) of a consulting firm has been delegated or transferred to in writing by the State transportation agency where the consultant’s accounting and financial records are located) in accordance with generally accepted government auditing standards to test compliance with the requirements of the Federal cost principles (per 48 CFR 31), and the cognizant agency has either 1) issued an audit report of the consultant's indirect cost rate or 2) conducted a review of an audit report and related workpapers prepared by a certified public accountant and issued a letter of concurrence with the audited indirect cost rate(s). The cognizant agency approves the ICR and a cognizant approval letter is issued.
Caltrans Acceptance of Indirect Cost Rate
When the ICRs have not been established by a cognizant agency, Caltrans must perform an audit or review of a consultant’s and subconsultant’s ICR(s) to provide reasonable assurance of compliance with Federal cost principles.
An audit or review of the ICR may consist of one or more of the following:
• Perform a review to determine if the ICR was prepared in accordance with 23 CFR 172 and 48 CFR 31;
• Perform an audit to determine if the ICR was prepared in accordance with 23 CFR 172 and 48 CFR 31; and issue an audit report;
• Review and accept an ICR audit report and related workpapers prepared by a CPA or another State Transportation Agency;
The outcome of an audit or review is for Caltrans to approve or accept the ICR so that it can be relied upon for future contracts with the consultant for a given one-year accounting period and for reliance by other contracting agencies using the same consultant. LPAs must ensure that only approved or accepted ICRs of consultants for the applicable one-year accounting period be applied to contracts, if rates are not under dispute. LPAs may check IOAI’s website for consultant’s approved or accepted ICRs. All approved or accepted ICRs are issued an Acceptance Identification (ID) number by IOAI that is posted to IOAI’s website. This ID number should be referenced on all future contracts that use the same fiscal year ICR. ICR can be fixed 131
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for the life of the contract in prior written document or annually updated. Once it has been updated, it must be annually updated and the most current fiscal year of ICR must be used.
ICRs that have not been accepted by Caltrans will not be eligible for indirect cost payment. An ICR approved by a cognizant agency may be used across states for the one-year applicable accounting period, but an ICR accepted by Caltrans may only be applied to A&E contracts with Caltrans or LPA contracts using pass-through Caltrans funding. LPAs include Cities, Counties, Metropolitan Planning Organizations, Special Districts, and Regional Transportation Planning Agencies.
Financial Review Performed Prior to Contract Execution
All consultants, including prime consultants and subconsultants, on a proposed contract with a dollar value equal to or greater than $1M are subject to an ICR financial review by IOAI. The financial documents required are detailed in the Financial Document Review Request form. IOAI will review the ICR financial documents to either accept or adjust the indirect cost rate prior to contract execution using a risk-based approach as dictated by factors that include but are not limited to:
• History of satisfactory performance and professional reputation of consultant; • Prior FAR compliant history and audit frequency;
• Experience of consultant with FAHP contracts;
• General responsiveness and responsibility;
• The approximate contract volume and dollar amount of all A&E contracts awarded to the consultant by Caltrans or a
n LPA in California within the last three calendar years; • The number of states in which the consultant does business; • The type and complexity of the consultant’s accounting system; • The relevant professional experience of any CPA performing audits of the consultants indirect cost rate;
• Assessment of consultant’s internal control. Responses to internal control questionnaire, see AASHTO Audit Guide, Appendix B;
• For ICRs that have been adjusted by IOAI, the consultant must provide a revised cost proposal that reflects the adjusted ICR.
Local Public Agencies’ Responsibilities
LPAs are responsible for obtaining all required ICR supporting documentation from A&E prime consultants and subconsultants as outlined in the Financial Document Review Request form.
LPAs are responsible for forwarding these documents to IOAI for review. LPAs are also required to ensure that IOAI has a copy of the Certification of Indirect Costs and Financial Management System form. The ICR included in the LPA’s cost proposal must mat ch the ICR included in the Certification of Indirect Costs and Financial Management System form and the consultant’s ICR schedule. The proposed ICR, however, can be lower than ICR in the Certification of Indirect Costs and Financial Management System form and the consultant’s ICR schedule if the consultant elects to propose a lower ICR. For contracts spanning more than one year, LPAs are responsible for ensuring the Certification of Indirect Costs and Financial Management System form and cost proposals are updated annually unless all concerned parties agree to fix the ICR 132
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for the term of contract, and this is clearly specified in the contract. ICR updates are not required to IOAI if the ICR is fixed for the life of the contract. ICR’s are only reviewed for consultants that are being awarded a contract, not consultants on a shortlist or prequalified list.
The cost proposal includes contract costs: direct salary or wage rates, fixed fees, other direct costs, indirect costs, total costs, and certification for the costs. LPAs must perform and retain documentation of activities and resources used to support that a cost analysis has been performed to establish that costs and elements were determined to be fair and reasonable in accordance with Federal cost principles.
All contract supporting documentation must be retained by the LPA in project files for the required retention period. Unsupported costs may be disallowed and required to be returned to Caltrans. Having proper documentation policy and procedures, trained staff, and organized project files are essential for demonstrating that costs claimed and reimbursed have been incurred, are eligible, reasonable, allowable, and allocable to the contract and comply with Federal cost principles.
Contracts below $1 Million are not subject to the Caltrans Financial Document Review but LPAs are required to establish that all costs are in compliance with the Federal cost principles, 48 CFR 31, and other applicable requirements are met. All documents listed above, and cost analysis documents are required to be retained in the project files to demonstrate compliance.
Instructions are provided in the Financial Document Review Request form including requirements for submitting a complete Financial Review packet. Financial packets can be e- mailed to: [email protected].
Alternatively, if you do not have internet access, you can mail Financial Review packets to:
Department of Transportation
Independent Office of Audits and Investigations
MS 2 Attention: External Audit Manager
P.O. Box 942874
Sacramento, CA 94274-0001
Consultants’ Responsibilities (Both prime consultants and subconsultants) A&E prime consultants and subconsultants in contract with LPAs using state or federal-aid highway funds should refer to the Financial Document Review Request form for the ICR financial documents required to be submitted to their LPA. Consultants must complete the Certification of Indirect Costs and Financial Management System form that attests that the ICR rate proposed is in compliance with federal cost principles (48 CFR 31) and that the consultant’s financial management system is adequate to accumulate and segregate reasonable, allowable, and allocable direct and indirect project costs. The Financial Document Review Request and Certification of Indirect Costs and Financial Management System forms should be submitted to the LPA who will forward a copy to IOAI along with all other related and required financial documents. For all future contracts within a same fiscal year, the consultant needs to only provide a copy of the Certification of Indirect Costs and Financial Management System form to the LPA.
Consultants must follow all the federal, state, and contract requirements outlined above in the Section above, “Applicable Standards”. Each contracting consultant must ensure its ICR is not combined with any parent company’s or subsidiary’s ICR.
ICR schedules for both prime consultants and subconsultants should be prepared using the accrual basis of accounting and be presented in compliance with the Federal cost principles. 133
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Figure 10-3 provides an example of a Standard Indirect Cost Rate Schedule that consultants can use when preparing their own.
For public works Prevailing Wage contracts, all workers must be paid the prevailing wage rate determined by the Director of the Department of Industrial Relations according to the type of work and location of the project: http://www.dir.ca.gov/Public-Works/Prevailing-Wage.html.
When determined necessary, IOAI may request additional information, such as a labor distribution summary and Executive Compensation Analysis (ECA). A consultant’s labor distribution summary report is a labor expense report that detail all hours worked (paid and unpaid) for a fiscal year, wages earned, and benefits accrued by all the consultant’s employees.
The labor summary report should include employee names, salaries, hourly rates, total hours worked segregated by direct hours, indirect hours, paid time off hours, and uncompensated hours and amounts.
An ECA is an evaluation by the consultant to determine the allowability and reasonableness of executive compensation in compliance with Federal cost principles and the AASHTO Audit Guide that can be based on either the National Compensation Matrix or independent compensation surveys.
Independent Office of Audits and Investigations’ Responsibilities After IOAI receives a consultant’s complete financial document packet (per the Financial Document Review Request form) from the LPA, IOAI will review the proposed ICR and supporting documents and notify LPAs in writing whether the proposed ICRs are accepted or adjusted.
Contracts will be executed after IOAI either accepts or adjusts the ICR. Correction of the final cost proposal, however, does NOT need to be cleared through Caltrans IOAI before executing the contract. An email notification from IOAI serves as documentation to support an accepted ICR.
Audits and Reviews to be Performed
After contract execution, a consultant’s ICR may be subject to further detailed review or audit by IOAI based on certain risk factors. Costs that are determined to be unallowable as a result of the review or audit will be subject to repayment.
Indirect Cost Rate Audits
During an ICR audit, IOAI or an independent CPA will examine the consultant’s proposed ICR for a one-year accounting period to ensure that unallowable costs have been removed from the indirect costs, that allowable costs have been correctly measured and properly charged and allocated, and that the ICR has been developed in accordance with the Federal cost principles (as specified in 23 U.S.C.112(b)(2)(B), 23 CFR 172.11, 48 CFR 31 and other FAR and State requirements). As a result of the audit, the LPA will work with the consultant to adjust the ICR based on audit recommendations.
For guidance regarding the existing policies and procedures set forth in the federal regulations, and acceptable ICR schedules, refer to the AASHTO Audit Guide, Chapter 5, and Figure 10-3 Standard Indirect Cost Rate Schedule in this chapter. The AASHTO Uniform Audit and Accounting Guide, Appendix A Review Program for CPA Audits of Consulting Engineers’ Indirect Cost Rates is also a resource for consultants and CPAs when preparing an ICR for audit.
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CPA Workpaper Reviews
During a workpaper review of a CPA audit of an ICR, IOAI will review the CPA’s audit workpapers to determine whether to issue a Cognizant Letter of Approval for the ICR. The CPA Workpaper Review determines whether: (a) the CPA’s audit of the ICR was conducted in accordance with Generally Accepted Government Auditing Standards (GAGAS), (b) the CPA adequately considered the auditee’s compliance with the Federal cost principles and related federal and state laws and regulations. Chapter 11 of the AASHTO Audit Guide provides information to the CPA on the required audit disclosures.
IMPORTANT NOTE FOR CPAs: Contracts receiving state or federal funds are highly scrutinized. Materiality levels tend to be lower and more testing is required. GAGAS provides that auditors may find it appropriate to use lower materiality levels as compared with the materiality levels used in non-GAGAS audits because of the public accountability of government entities and entities receiving government funding, various legal and regulatory requirements, and the visibility and sensitivity of government programs. The AASHTO Audit Guide should be used as a tool for performing audits and attestations of A&E firms.
Contract Audits
During a Contract Audit, auditors will review a consultant’s financial management system and contract cost proposal to determine if:
• The consultants’ accounting system is adequate to accumulate and segregate costs; • Costs are reasonable, allowable, allocable, and supported adequately; • The contract contains all required fiscal provisions; • Proper state and federal procurement requirements were followed.
Incurred Cost Audits
During an Incurred Cost Audit, auditors will review incurred contract costs to determine if:
• Cost data are maintained in an accounting system that adequately gathers, records, classifies, summarizes, and reports accurate and timely financial data for direct and indirect project costs by account;
• Costs are adequately supported, reasonable, allowable, and allocable; • Costs incurred are in compliance with state and federal laws and regulations; • Costs incurred are in compliance with the Master Agreement and Supplemental Agreement;
• Costs incurred are in compliance with the fiscal provisions stipulated in the contract; and • The terms required by the Master Agreement and federal laws and regulations are in the contract.
Audit Findings and Review Deficiencies
If a consultant’s ICR is audited or reviewed, LPAs are responsible for ensuring all executed and future contracts reflect the audited and adjusted fiscal year ICR(s). LPAs should request reimbursement from the consultant for overpayment on rates that were adjusted down. 135
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The LPA may be subject to sanctions outlined in Section 10.5 Sanctions if the state or federal government determines that any reimbursements to the consultant are the result of lack of proper contract provisions, unallowable charges, unsupported activities, or an inadequate financial management system.
Example of a FAR Compliant Indirect Cost Rate Schedule - Sample Consulting Company Statement of Direct Labor, Fringe Benefits, and General Overhead for the Year Ended December 31, 20xx Description
General
Ledger
Balance
Unallowable FAR
Reference
Total
Proposed
Home
Office
Field
Office
Direct Labor $123,456,789 ($934,568) (1)(15) $122,522,221 $85,765,555 $36,756,666
Fringe Benefits
Vacation/Paid Leaves $17,283,950 $17,283,950 $12,098,765 $5,185,185 Payroll Taxes $1,530,864 ($30,617) (15) $1,500,247 $1,050,173 $450,074 Medical Insurance $10,864,197 $10,864,197 $7,604,938 $3,259,259 401K Match $4,938,272 $4,938,272 $3,456,790 $1,481,481 Incentives and Bonus $15,308,642 ($3,123,456) (2) $12,185,186 $8,529,630 $3,655,556 Other Employee
Benefits $2,515,280 ($553,433) (3) $1,961,847 $1,373,293 $588,554 Total Fringe Benefits $52,441,206 ($3,707,506) $48,733,700 $34,113,590 $14,620,110 General &
Administrative Overhead
Indirect Overhead
Labor $72,696,030 ($4,452,541) (1)(2)(4)(15) $68,243,489 $65,790,948 $2,452,541 Purchased
Labor/Subconsultants $22,433,019 ($22,433,019) (5) $ - $ - $ - Office Rent $12,345,679 ($987,654) (6) $11,358,025 $11,038,025 $320,000 Supplies & Utilities $5,753,086 $5,753,086 $4,027,160 $1,725,926 Postage and
Shipping $1,770,000 $321,456 (5) $2,091,456 $1,464,019 $627,437 Equipment and
Maintenance $3,812,346 $3,812,346 $2,512,789 $1,299,557 Depreciation
Expense $6,202,469 ($1,345,678
) (7) $4,856,791 $3,205,482 $1,651,309
Interest $123,456 ($123,456) (8) $ - $ - $ -
Dues and
Subscription $123,456 ($12,345) (9) $111,111 $77,778 $33,333 Advertising &
Marketing $427,406 ($45,678) (10) $381,728 $267,210 $114,518 Vehicles $5,896,123 ($147,403) (5)(11)(14) $5,748,720 $4,024,104 $1,724,616 Bad debts $12,345 ($12,345) (12) $ - $ - $ -
Legal and
Accounting Services $3,713,580 ($222,815) (13) $3,490,765 $3,490,765 $ - Fines and Penalties $80,000 ($80,000) (16) $ - $ - $ - Total General &
Admin. Overhead $135,388,995 ($29,541,478) $105,847,517 $95,898,280 $9,949,237 136
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Total Indirect Costs $154,581,216 $130,011,870 $24,569,347 Indirect Cost Rates 126.17% 151.59% 66.84%
Figure 10-3: Standard Indirect Cost Rate Schedule
FAR References:
(1) FAR 31.202: Uncompensated overtime.
(2) FAR 31.205-6: Profit distribution and excess of the reasonable compensation. (3) FAR 31.205-46, 31.205-14 & 31.205-51: Meals not for valid business purposes and associated with lobbying and lacking adequate support
(4) FAR 31.201-2: Administrative staff costs billed to projects/clients. (5) FAR 31.201-2: Subconsultant labor and other direct costs billed to and paid by contracts/clients.
(6) FAR 31.205-36 and 31.205-17: Capital lease costs, rent paid in excess of reasonable costs, and idle facilities and capacity costs.
(7) FAR 31.201-2 & 31.205-6: Costs relates to personal use by employees and luxury vehicles.
(8) FAR 31.205-20: Interest and other financial costs not allowable. (9) FAR 31.201-2: Non-business related dues and subscriptions. (10) FAR 31.205-1: Costs for advertisement and public relations costs and trade show expense including labor.
(11) FAR 31.205-46(d) and 31.205-6(m)(2): Personal use of vehicle and lack of mileage logs and business purpose.
(12) FAR 31-205-3: Bad debts and collection costs.
(13) FAR 31.205-27 and 31.205-47: Reorganization and capital raising related costs and costs incurred in connection with violation of a law or regulation by the consultant. (14) FAR 31.205-46: Unreasonable costs and costs not supported by documents and lack of business purpose.
(15) FAR 31.201-6(a) & CAS 405-40: Labor costs associated with unallowable costs. (16) FAR 31.205-15: Fines and penalties resulting from violations of laws and regulations.
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10.1.4 Consultant Selection Methods
There are three methods normally used in selecting a consultant:
• One-Step RFP
• One-Step RFQ
• Two-Step RFQ/RFP
The method used depends upon the scope of work, the services required, the project’s complexity, and the time available for selection of the consultant.
Beginning with Section 10.1.5: Consultant Selection Using the One–Step RFP Method, each of the selection methods is explained in detail. Regardless of the method used, the LPA must retain all consultant selection documentation in their project files as required by 23 CFR 172.
One-Step RFP
The One-Step RFP method may be used for Project–specific contracts when the scope of work is well-defined or for Multi-phased contracts where the defined scope of work is divided into phases. Other considerations include when the consultant’s services are highly specialized and there are few qualified consultants.
One-Step RFQ
The One-Step RFQ method is used when the requested services are specialized, or the scope of work is defined broadly and may include multiple projects. Typical services are preliminary engineering, surveying, environmental studies, preparation of Plans Specifications and Estimate (PS&E) and environmental documents, or construction management. This method or the two- step selection process is used for procurement of on-call contract(s). Note that specifications and requirements in the RFQ must cover all aspects of the final need. An RFP specific to the project, task, or service must be included in the solicitation for evaluation of a consultant's specific technical approach and qualifications.
Two-Step (RFQ Followed by RFP)
The Two-Step RFQ/RFP method may be used when the scope of work is complex or unusual.
This method also may be preferred by LPAs that are inexperienced about negotiations and procedures for establishing compensation. However, the Two-Step RFQ/RFP method is recommended for procurement of multiple on-call contracts, or on-call list, through a single solicitation. Regardless of any process utilized for prequalification of consultants or for an initial assessment of a consultant's qualifications under a RFQ, a RFP specific to the project, task, or service is required for evaluation of a consultant's specific technical approach and qualifications.
For more information, refer to description of on-call contract in Section 10.1.2: Identifying & Defining a Need for Consultants. This method requires substantially more work and time than the other two methods described above.
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10.1.5 Consultant Selection Using the One-Step RFP Method Of the three methods discussed, this one is most easily modified for non-A&E consulting contracts. This procurement procedure usually involves a single step process with issuance of a request for proposal (RFP) to all interested consultants. For non-A&E consulting contracts, a cost proposal must be part of the RFP and the selection criteria. For A&E contracts, the cost proposal is not requested until the consultants have been final ranked based upon their submitted technical proposal.
Appoint Consultant Selection Committee
A consultant selection committee with a minimum of three members is appointed at the beginning of the consultant selection process. The committee reviews materials submitted by consultants, develops a shortlist of qualified consultants, and develops a final ranking of the most qualified proposals. Representation on the committee includes the Contract Administrator and subject matter experts from the project’s functional area. The members should be familiar with the project/segment to be contracted out and with the LPA standards that will be used in the contract. Participation by a Caltrans district representative is at the option of the agency and subject to availability of the DLAE staff. Caltrans participation on the interview panel does not relieve the LPA of its responsibility to ensure that proper procurement procedures are followed, and all requirements are met.
LPA Contract Administrator ensures that all committee members meet the conflict of interest requirements (23 CFR 172.7(b)(4)) by completing and signing a conflict of interest statement prior to selection process initiation. A sample conflict of interest form is provided in Exhibit 10-T:
Conflict of Interest & Confidentiality Statement.
Develop Technical Criteria for Evaluation of Proposals
The Contract Administrator is responsible for developing the technical criteria, and their relative importance which are used to evaluate and rank the consultant proposals. In-State or local preference must not be used as factor in the evaluation, ranking, and selection phase. Local presence and DBE participation are the only two non-qualifications-based evaluation criteria that are permitted, however, the combined total of these criteria cannot exceed a nominal value of 10 percent of the total evaluation criteria (23 CFR 172.7(a)(1)(iii)(D)). All price or cost related items which include, but are not limited to, cost proposals, direct salaries/wage rates, indirect cost rates, and other direct costs are prohibited from being used as evaluation criteria.
The criteria and relative weights must be included in the RFP, and the same criteria and relative weights must be used in the evaluation sheets. Failure to include criteria and relative weights and to use the same criteria and weights during the evaluation will result in the contract costs being ineligible for federal or state reimbursement. Exhibit 10-B: Suggested Consultant Evaluation Sheet is a recommended evaluation sheet with criteria and rating points for A&E consultants, where cost is not used as a rating factor. This format is not mandatory, but it is recommended in the interest of developing consistency among the hundreds of agencies and consultants operating in the state. The LPA should consult with the DLAE before making major changes to the suggested approach.
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Develop Schedule for Consultant Selection
Before the contract is advertised, the Contract Administrator completes a contract procurement schedule including key dates for consultant selection activities. The Contract Administrator should confirm key dates with all selection committee members before completing the schedule.
Prepare RFP
The information required in an RFP solicitation includes the following:
• Description of project;
• Clear, accurate, detailed Scope of work, technical requirements, and qualifications; • Services to be performed;
• Deliverables to be provided;
• Procurement schedule;
• Applicable standards, specifications, and policies;
• Schedule of work (including estimated start and end dates of the contract); • Method of payment, and cost proposal requirements. The cost proposal is submitted in a separate concealed format. Cost proposals are requested from the highest ranked firm.
If these negotiations are formally terminated, the cost proposal is then requested from the next highest ranked firm. See sample cost proposals at the DLA Consultant Selection and Procurement website;
• Contract audit and review process requirements (see Section 10.1.3: A&E Consultant Audit and Review Process);
• Proposal format and required contents;
• Method, criteria
, and weighting for selection;
• Requirements for any discussions that may be conducted with three or more of the most highly qualified consultants following submission and evaluation of proposals; • Specify contract type;
• Special provisions or contracts requirements;
• A DBE contract goal is specified in the solicitation (see Exhibit 10-I: Notice to Proposers DBE Information), if a federal-aid contract;
• CMSR requirements (see Exhibit 10 -U: Consultant in Management Support Role Conflict of Interest and Confidentiality Statement);
• Protest procedures and dispute resolution process per 2 CFR 200.318(k) and 23 CFR 172.5(c)(18).
The RFP specifies the content of a proposal, the number of copies required, due date, mailing address, and a physical address where the submittals may be hand -delivered if different from
the mailing address. A minimum of fourteen (14) calendar days is required between the time the RFP is published and time that proposals must be submitted. More time may be required for complex contracts or projects.
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Items typically required in a technical proposal include:
• Work plan (specify what is to be covered);
• Organizational chart;
• Schedule and deadlines;
• Staffing plan;
• Proposed Team—complete for prime consultant and all key subconsultants; • Key personnel names and classifications—key team members identified in the original proposal/cost proposal must not change (be different than) in the executed contract; • Staff resumes;
• Names of consultant’s project manager and the individual authorized to negotiate the contract on behalf of the consulting firm;
• Consultant DBE Commitment document, see Exhibit 10-O1: Consultant Proposal DBE Commitment;
• References.
Financial Management and Accounting System Requirements The LPA must ensure that consultant contract solicitation and advertising documents (RFPs) clearly specify that contracts must not be awarded to a consultant without an adequate financial management and accounting system as required by 48 CFR 16.301-3, 2 CFR 200, and 48 CFR 31. The LPA must ensure the selected consultants have adequate financial management systems as required by the applicable federal regulations.
Advertise for Consultants
The solicitation process for consultant services must be by public advertisement, or by any other public forum or method that assures qualified in-State and out-of-State consultants are given a fair opportunity to be considered for award of contract. The minimum length of advertisement is 14 calendar days.
Advertisement of the RFP in a major newspaper of general circulation, technical publications of widespread circulation, professional associations and societies, recognized DBE organizations, web hosting or clearing houses known for posting government contract solicitations such as BidSync, Planetbids, Public Purchase, or posting the RFP on the LPA’s or other widely used websites are all acceptable methods of solicitation.
To document website postings, the LPA should retain copies of screen shots displaying the posted begin/end dates.
The LPA must keep a record of all consultants that have downloaded RFP online as well as those receiving an RFP through other means, to ensure that any inquiry responses, addendums, or amendments to the RFP are given to all consultants that received the RFP.
Conduct Proposer’s Conference or Answer Written Questions The LPA may allow for clarification of the RFP by inviting submittal of written questions or by conducting a proposer’s conference, or by doing both. The LPA must publish or mail their responses to any written questions to all consultants receiving the RFP. No response should be 141
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given to verbal questions. It is important that all competing consultants receive the same information. If a proposer’s conference is to be held, the exact time and place must be specified in the RFP. Attendance at a proposer’s conference normally is not mandatory. However, consultants not attending the conference do not receive notes from the meeting unless they request the notes.
Receive and Evaluate Technical Proposals
The Contract Administrator must verify that each proposal contains all of the forms and other information required by the RFP. If all required information is not provided, a proposal may be considered nonresponsive and rejected without evaluation. Late submittals, submittals to the wrong location, or submittals with inadequate copies are considered nonresponsive and must be rejected. Submittal of additional information after the due date must not be allowed.
Documentation of when each proposal was received must be maintained in the project files.
Copies of date stamped envelope covers or box tops are recommended. The members of the consultant selection committee must evaluate each proposal according to the technical criteria listed in the RFP. Minimum of three proposals must be received and evaluated. If only two proposals are received, a justification must be documented to proceed with the procurement.
The justification should state that the solicitation did not contain conditions or requirements that arbitrarily limited competition per 23 CFR 172.7(a)(1)(iv)(D) and competition is determined to be inadequate and it is not feasible or practical to re-compete under a new solicitation per 23 CFR 172(a)(3)(iii)(C). If only one proposal is received, a Non-Competitive process must be justified and an Exhibit 12-F: Cost-Effectiveness / Public Interest Finding / A&E Noncompetitive must be documented and signed by the DLAE. In either case, the re-advertisement of the RFP should be considered as an option.
The committee must also evaluate reference checks and other information gathered independently. Reference checks
must be completed, and other information gathered before the interviews are conducted. If necessary, the results of the reference checks or other information may be discussed with the highest ranked qualified consultants at the interviews.
Develop Final Ranking and Notify Consultants of Results The selection committee evaluates each proposal, interviews the three or more highest ranked consultants (short listed) if noted in solicitation, and develops a final ranking of the highest ranked consultants. All consultants that submitted proposals must be informed about the final ranking of consultants. It is important that all competing consultants receive the same information.
Most consultants will request information as to why they were not the highest ranked. The LPA may have an established procedure adopted for conducting debriefings but may also consider the following: The selection committee should keep notes as to why a particular consultant was not selected. When a consultant requests debriefing, the reasons for not being selected must be objective reasons. The consultant should not be compared to others and should not be provided with information about other consultants during this debriefing. Normally, the Contract Administrator does the debriefing; however, any member of the selection committee may be designated to do the debriefing.
Negotiate Contract with Top-Ranked Consultant
Cost proposal (for both prime consultant and all subconsultants), and contract audit and review documents such as the Certification of Indirect Costs and Financial Management System and 142
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Financial Document Review Request forms, whichever is applicable (see Section 10.1.3: A&E Consultant Audit and Review Process) should be submitted in a separate sealed envelope.
Typically, the cost proposals are submitted by the short-listed consultants only, at time of interview. However, if time is of the essence and it can be justified, or if no interviews are planned, the cost proposal can be requested from all consultants with their technical proposal.
The cost proposal for the most qualified consultant will be opened and used to begin negotiations. If agreement cannot be reached, then negotiations proceed to the next most
qualified consultant. Each consultant’s cost proposal must remain sealed until negotiations commence with that particular consultant. The goal of negotiations is to agree on a final contract that delivers the services, or products required at a fair and reasonable cost to the LPA. At the completion of successful cost negotiations, all remaining sealed envelopes containing cost proposals must be returned to consultants.
Cost proposals in electronic form must be submitted separately from the RFP and contained in a secure database that is inaccessible to the members involved in the A&E consultant contract procurement process. Only the cost proposal of the most qualified consultant will be requested to be sent to the members. Cost proposals of unsuccessful consultants are confidential and must not be opened by the LPA or any private entity that the LPA uses to store the cost proposals. Any concealed cost proposals of the unsuccessful consultants must be returned unopened or properly disposed of in accordance with the LPA’s written policies and procedures.
The independent cost estimate, developed by the LPA in advance of requesting a cost proposal from the top-ranked consultant, is an important basis and tool for negotiations or terminating unsuccessful negotiations with the most qualified consultant. Items necessary for the independent cost estimate include, hours/detailed work, direct labor costs, indirect labor costs, other direct costs, and profit/fee. Agencies must retain documentation of how the cost estimate was developed. It can be revised, if needed, for use in negotiations with the next most qualified consultant. A contract audit and review may be required (see Section 10.1.3: A&E Consultant Audit and Review Process in this chapter). LPA Contract Administrator ensures that all required documentations are provided to Caltrans IOAI within 10 days of written request, including all documents for a Financial Review, if applicable. Caltrans IOAI will not proceed with a Financial Document Review until all required documentation is completed correctly and submitted.
Negotiations should be finalized after addressing all deficiencies noted in the Caltrans IOAI Financial Review Letter if applicable. An indirect cost audit may be performed within the record retention period of the contract.
Items typically negotiated include:
• Work plan;
• Schedule and deadlines (for deliverables and final duration of contract); • Products to be delivered;
• Classification, wage rates, and experience level of personnel to be assigned; • Cost items, payments, and fees. Fee is required to be negotiated as a separate element;
• Hours, level of effort by task and/or classification
.
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The consultant’s ICR is not a negotiable item. A lower rate cannot be negotiated by the LPA.
The LPA and the consultant will agree on the final cost proposal and incorporate into final contract. Retain all documentation related to negotiations.
Before executing the consultant contract, the LPA must review contract to ensure that all federal and state requirements have been met and adjustment or denial of ICR as identified in the Financial Review Letter has been included in the final cost proposal, if applicable.
Prior to contract award, or after contract award but no later than the first invoice, the LPA must submit a completed A&E Consultant Contract form for all new federal funded A&E consultant contracts using the A&E Consultant Contract database at:
https://dla.dot.ca.gov/fmi/webd/AE%20Consultant%20Contract%20Form (please use Firefox or Chrome if not supported by your browser). Submission of the A&E Consultant Contract form is not required for non-A&E consultant contracts.
If there are any changes requiring an amendment to the contract after submittal of the A&E Consultant Contract form, refer to Section 10.1.8: Contract Amendments of this chapter.
10.1.6 Consultant Selection Using the One-Step RFQ Method
The RFQ method is used when the services being procured are specialized, or the scope of work is defined broadly and may include multiple projects.
Appoint Consultant Selection Committee
A consultant selection committee with a minimum of three members is appointed at the beginning of the consultant selection process. The committee reviews and scores the materials submitted by consultants in response to the RFQ, develops a shortlist of qualified consultants, interviews those consultants, and develops a final ranking of the most qualified consultants.
Representation on the committee includes the Contract Administrator and subject matter experts from the project’s functional area. The members should be familiar with the scope of work to be contracted out and with the LPA standards that will be used in the contract.
Participation by a Caltrans district representative is at the option of the LPA and subject to the availability of the DLAE staff. Caltrans participation on the interview panel does not relieve the LPA of its responsibility to ensure that proper procurement procedures are followed, and all requirements are met.
LPA Contract Administrator ensures that all committee members meet the conflict of interest requirements (23 CFR 172.7(b)(4)) by completing and signing a conflict of interest statement prior to selection process initiation. A sample conflict of interest form is provided in Exhibit 10-T:
Conflict of Interest & Confidentiality Statement.
Develop Technical Criteria for Evaluation of Qualifications The Contract Administrator is responsible for developing the technical criteria, and their relative importance which are used to evaluate and rank the consultant qualifications. In-State or local preference must not be used as factor in the evaluation, ranking, and selection phase. Local presence and DBE participation are the only two non-qualifications-based evaluation criteria that are permitted, however, the combined total of these criteria cannot exceed a nominal value of 10 percent of the total evaluation criteria (23 CFR 172.7(a)(1)(iii)(D)). All price or cost related items which include, but are not limited to, cost proposals, direct salaries/wage rates, indirect cost rates, and other direct costs are prohibited from being used as evaluation criteria. 144
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The criteria and relative weights must be included in the RFQ, and the same criteria and relative weights must be used in the evaluation sheets. Failure to include criteria and relative weights and to use the same criteria and weights during the evaluation will result in the contract costs being ineligible for federal or state reimbursement. Exhibit 10-B: Suggested Consultant Evaluation Sheet is a recommended evaluation sheet with criteria and rating points for A&E consultants, where cost is not used as a rating factor. This format is not mandatory, but it is recommended in the interest of developing consistency among the hundreds of agencies and consultants operating in the State. The LPA should consult with the DLAE before making major changes to the suggested approach.
Develop Schedule for Consultant Selection
Before a contract is advertised, the Contract Administrator completes a contract procurement schedule including key dates for consultant selection activities. The Contract Administrator should confirm target dates with all selection committee members before completing the schedule.
Prepare RFQ
As a minimum, the RFQ generally includes the following:
• General description of the services or project(s);
• Scope of work;
• Schedule of work (including contract begin and end dates); • Method of payment, and cost proposal requirements. The cost proposal is submitted in a separate sealed envelope. See sample cost proposals at the DLA Consultant Selection and Procurement website;
• Contract audit and review process requirements (see Section 10.1.3: A&E Consultant Audit and Review Process);
• Statement of Qualification (SOQ) format and required content to be submitted; • Method and criteria and weights for selection;
• A DBE contract goal
is specified in the solicitation (see Exhibit 10-I: Notice to Proposers DBE Information), if a federal-aid contract;
• Consultants acting in a management support role requirements Exhibit 10-U: Consultant in Management Support Role Conflict of Interest and Confidentiality Statement; Protest procedures and dispute resolution process per 2 CFR 200.318(k) and 23 CFR 172.5(c)(18).
The RFQ specifies the content of the SOQ, the number of copies required, due date, mailing address, and a physical address where the submittals may be hand -delivered if different from
the mailing address. Two to four weeks is usually allowed between the time the RFQ is published and time that SOQs must be submitted. More time may be required for complex contracts or scope of work.
Items typically required in a statement of qualification include:
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• Qualifications of key personnel (including consultant project manager) proposed for the contract. Key team members identified in the original proposal/cost proposal must not change (be different than) in the executed contract;
• Staff resumes;
• Related projects that key personnel have worked on;
• Qualifications/experience of the firm;
• Organizational chart;
• Forecast or Schedule of work;
• Consultant DBE Commitment document, see Exhibit 10-O1: Consultant Proposal DBE Commitment;
• References.
Financial Management and Accounting System Requirements The LPA must ensure that Consultant contract solicitation and advertising documents (RFQs) clearly specify that contracts must not be awarded to a consultant without an adequate financial management and accounting system as required by 48 CFR 16.301-3, 2 CFR 200, and 48 CFR
31. The LPA must ensure the selected consultants have adequate financial management systems as required by the applicable federal regulations.
Advertise for Consultants
The solicitation process for consultant services must be by public advertisement or any other public forum or method that assures qualified in-State and out-of-State consultants are given a fair opportunity to be considered for award of contract. The RFQ must contain sufficient project work information, so that interested consultants can submit an appropriate SOQ.
Advertisements for RFQ may take one of two approaches. The most common is an advertisement or publication of the RFQ in a major newspaper of general circulation, technical publication of widespread circulation, professional associations and societies, recognized DBE organizations, web hosting or clearing houses known for posting contract solicitations such as Bid Sync, PlanetBids, or posting the RFQ on other widely used websites. To document website postings, the LPA should retain copies of screen shots displaying the posted begin/end dates.
In the second approach, the LPA advertises the availability of the RFQ in a major newspaper of general circulation, technical publications of widespread circulation, professional associations and societies, recognized DBE organizations, or through a web hosting or clearing houses known for posting contract solicitations such as BidSync or PlanetBids, and requests that interested consultants send a letter of interest to the LPA for the RFQ. The RFQs must then be sent to those firms who indicated interest in the RFQ. In some cases, it may be desirable to advertise nationwide for a particular project or service. This approach provides a registry for firms who received the RFQ and therefore facilitates the broadcast of any revisions or addenda to the RFQ, if necessary.
Issue/Publish RFQ
The LPA must publish the RFQ online and also issue the RFQ to all consultants responding to newspaper advertisement. The LPA must keep a record of all consultants that have downloaded the RFQ online as well as those receiving an RFQ through other means, to ensure that any 146
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inquiry responses, addendums, or amendments to the RFQ are given to all consultants that received the RFQ.
Receive/Evaluate Statements of Qualifications and Develop Shortlist The first step in the evaluation process is to determine that each SOQ contains all forms and other information required by the RFQ. Otherwise, the submittals may be considered nonresponsive and rejected without evaluation. Late submittals, submittals to the wrong location, and submittals with inadequate copies are considered nonresponsive and must be rejected. Submittal of additional information after the due date must not be allowed.
Documentation of when each proposal was received must be maintained in the project files.
Copies of date stamped envelope covers or box tops are recommended.
Minimum of three proposals must be received and evaluated. If only two proposals are received, a justification must be documented to proceed with the procurement. If only one proposal is received, a Non-Competitive process must be justified, and an Exhibit 12-F: Cost Effectiveness / Public Interest Finding / A&E Noncompetitive must be documented and signed by the DLAE. In either case, the re-advertisement of the RFP should be considered as an option.
The consultant selection committee reviews the submitted SOQ according to the published evaluation criteria and weighting factors. The committee makes an independent random check of one or more of the consultant’s references. This check applies to major subconsultants also.
The committee establishes a shortlist of consultants who are considered to be best qualified to perform the contract work. The shortlist includes enough qualified consultants to ensure that at least three consultants are interviewed.
Notify Consultants of Shortlist
All consultants that submitted an SOQ must be notified of the results of the review. The notification also identifies those consultants (short list) that will be requested to attend interviews if interviews were an option in the solicitation. Most consultants will request information as to why they were not placed on the shortlist. Therefore, the selection committee should keep notes why a particular consultant was not selected for the shortlist. When a consultant requests a debriefing, the reasons given for not being selected must be objective reasons. Consultants should not be compared with each other during the debriefing. Normally, the Contract Administrator does the debriefing; however, any member of the selection committee may be designated to do the debriefing.
Interview Top-Ranked Consultants
Each consultant to be interviewed is given a copy of the draft of the proposed contract, defining the detailed scope of work, and/or description of required services, and other information. This should be sent with the initial notification of the interview.
Between the time of the notification of the shortlist and interviews, the LPA may answer any questions concerning the scope of work to be contracted out, if not done earlier during the solicitation. In addition, the LPA may conduct additional reference checks for each consultant to be interviewed. Consultants should submit their questions about the RFQ and receive their answers from the LPA in writing. It is required that all consultants on the shortlist receive the questions and answers and are given the same information.
The committee should evaluate reference checks and other information that is gathered independently. Reference checks must be completed, and other information gathered before the 147
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