addendum no 2 request for proposal city of san …

June 13, 2007

ADDENDUM NO 2 REQUEST FOR PROPOSAL

City of San Leandro Banking Services

Due 3:00 PM, Thursday, July 5, 2007 The Request for Quotation, City’s Banking Services Request for Proposal is hereby amended as follows to reflect answers to questions presented by potential bidders:

Tab D Q: Please provide a brief summary of how the workers compensation account operates, i.e. is this account used to pay workers compensation insurance premiums, is it administered by the City, etc?

A: Checks are issued by a third party administrator. Finance staff checks daily bank

balances and is notified by the administrator when large checks are issued to make sure that there is enough money to cover the check.

Tab D Q: Is the Self Insured Trust Liability Account administered by a third party who informs

the City when funds are needed to cover check issues? A: Finance staff maintains the bank balance and a third party administrator informs

Finance of any large checks.

Tab G Q: Please provide the physical address of the four armored car pick up points and the days of pick up for the three that are not daily. What time of the day are the above pick ups ready? What is the average dollar amount of each pick up?

A:

o Pick up is every Marina Community Center- 15301 Wicks Blvd., pick up is on Tues and Fri

o Recreation & Human Services- East 14th Street pick up is on Tues and Fri o Finance – East 14th Street, pick up everyday

Location Address Days Time Ave. Daily

Deposit Main Library 300 Estudillo Avenu Friday 1:00-4:00 p.m $4K- 5K Marina Community Center 15301 Wicks Blvd Tues. & Fri. 2:00 p.m $6K- 8K Recreation & Human ServicEast 14th Street Tues. & Fri. 12:30-2:00 p.m $5K – 7K Finance City Hall East 14th Street Daily 12:30-2:00 p.m $10K - 300K

Tab G Q: Who is your current armored car carrier?

A: Loomis

Tab G Q: Please describe your current Returned Item handling and notification process. A: Bank tries to redeposit the check 2-3 times and then notifies Finance staff of returned items

by an advice notice indicating the reason for return. Tab L Q: What is the average balance in the City’s sweep account?

A: $2-3 million daily

Tab M Q: Please provide examples of the type of custom reports the City currently receives? A: See Attachment A

1. Checks Cleared Report 2. Summary and Detail Previous Day Report 3. Previous Day Detail with Additional Information

Tab N Q: What methods of processing does the City currently use for credit card payments? A: Mostly Visa and Master Card are the cards accepted. Transactions are held at the

Planning, Library, Recreation, and Marina locations.

Tab N Q: Are merchant card terminals rented, leased or owned? A: Yes the credit card machines are owned and the City currently pays terminal fee and printer

fee. Tab N Q: Does the City receive any other reporting of credit card payments other than a monthly

statement? A: Yes- Daily report – See Attachment C for sample report

Tab O Q: When using the term “electronic bill payment” is the City referring to accepting

payments from individuals wanting to pay for City services via their home banking program offered by their bank?

A: The City currently is not accepting electronic bill payments but is in the process of offering

that service in the future.

Tab U Q: Under General Account Services please confirm the debits & credits posted are ACH items. A: Debits and Credits posted are not ACH items; however there is a section for ACH

services with estimated monthly averages

Tab U Q: One of the columns indicates “average fee per unit” assume this should read “proposed fee per unit”. Is this correct?

A: No. Use the Standard Fee per unit column for price quotes

Tab N Q: Since The City currently processes credit cards, do any of the locations require a manual close capability? If so which locations(s)

A: No, there is no manual close capability Tab N Q: Do you have a need to close a batch more than once a day? If so, explain. A: No. Tab N Q: Do you use credit card terminal and/or software to process daily activity? A: Yes Tab N Q: If using credit card terminal please identify the terminal type by location A: Hypercom T7P/T7 Plus Tab N Q: If using credit card terminals do you own, rent or lease the equipment? A: Own Tab N Q: Does the Library Café location require the ability to process “tips” for servers? A: No Tab N Q: If using software to process credit card activity (non-web based) please identify the

name of package and which locations use it. A: Additional research will be required as soon as IT staff has completed their findings. Tab N Q: Do you process GSA/Government Procurement Cards, Corporate Cards that require

Data Rate I, II or Commercial Cards that require Level II or Level III reporting? A: Additional research will be required on this item. Tab N Q: Do you process large ticket Visa/MasterCard Transactions? i.e., sales amount in excess

of $5000 per transaction? A: Probably 1-2 transaction per month but usually the largest ticket would be $3000 Tab N Q: Do you process credit card activity via a website? If so, what gateway do you utilize? A: No Tab N Q: The terminal must have a dedicated line to dial out for approvals – does your

telecommunication system require a “9” to access an outside line? A: There is no need to dial “9” Tab N Q: Is this dedicated line or telephone system analogue or digital? A: Analog Tab N Q: We offer a service called Electronic Check Service (POP) for “over-the-counter” check

acceptance which converts checks into electronic deposits just like credit cards – do you currently process your over-the-counter checks electronically? If not, would you be interested in receiving information on this service?

A: No, the checks received over-the-counter are not process electronically, however, the City would be interested in receiving information on this service

Tab N Q: Do you accept transactions via an “IVR” (Interactive Voice Response) system? If so,

what is the name of the vendor that provides the service? A: No Tab N Q: Do you use credit card terminal and/or software to process daily activity? A: Yes Tab N Q: What is the average ticket size? Can it be broken down by site? A: Building/Planning - ticket size: min. $350 – 8500 max. Library - $5-25 per ticket Recreation - $150- $250 per ticket Marina- $50- $70 per ticket Tab N Q: Who is the City’s current credit card processor? A: Bank of America Tab N Q: Sample Credit Card Statement/Report A: See Attachment C – Daily and Monthly Report Tab H Q: Are you using positive pay? A: Currently not. Tab J Q: What day of the week are the ACH transmitted and the average amount? A: Payroll ACH direct deposits are transmitted twice per month and the days vary. Payroll

is transmitted 2 working days prior to pay date which is the 5th and the 20th of each month assuming that those days do not fall on weekends. If the pay day falls on a weekend or holiday, then payday would be the last working day before. The average amount per pay day is approximately $900K. Another direct deposit is paid to retirees once a month with an average of $25k.

Tab I Q: Does the City receive live checks from the State of California or are they all wired

transfers? Do you have a regular schedule when receiving checks from the State? A: Yes the City receives live checks and wire transfers from the State of California. There

is no regular monthly or scheduled apportionment received from the State. However, the State do post when certain grant apportionments will be distributed.

Tab Q Q: Does the City use an Investment company? If so, which company is used? A: Yes, Chandler Assets Tab N Q: Can the Investment Policy be posted? A: See Attachment B

Tab Q Q: There was mention that there is some Escrow Funds/Escrow Money that is set aside and is currently with another bank. Are these funds earmarked for long term capital projects or Redevelopment Agency (RDA) funds? Are they currently invested in liquid money market funds or are they set aside in a CD or staggered maturity treasuries? What is the average balance of these escrow funds?

A: The escrow funds are mostly retention money from the general contractors. The account is opened by the general contractor to the bank of their choice and is usually under the City of San Leandro and General Contractor account name.

Tab R Q: There is a one page maximum preferred on this section. Typically, from what we have

seen in previous RFP’s, this particular section may, at times take 2-3 pages to enumerate the various financial solutions and service enhancements that we’re recommending to the City. Will the City be imposing a mandatory maximum page restriction on this section and other tabs that may require more than one page?

A: The City will accept no more than 3 pages for Tab R- Service enhancements only.

Previous Day ReportDetail with Additional Information

Attachment A-3

Previous Day Detail Report Account Description Row Type Description Amount Customer Reference Bank Reference TextCity of San Leandro- Payroll

20070620 City of San Leandro Payroll Data ZBA CREDIT 11,437.66TRSF FR 149680205

Total 11,437.66

20070620 City of San Leandro Payroll Data INDIVIDUAL ACH RETURN ITEM 705.23

CITY OF SAN LEAN DES:RETURN ID:12688INDN:SETT-ACH DETAIL RETURN CO ID:1946000421 CCDREF:00014948020112110825000717100621981407062022

20070620 City of San Leandro Payroll Total INDIVIDUAL ACH RETURN ITEM 705.23

20070620 City of San Leandro Payroll Data CHECKS PAID DEBIT 1,376.13 0000201790 xxxxxxxxxxx20070620 City of San Leandro Payroll Data CHECKS PAID DEBIT 3,002.35 0000201835 xxxxxxxxxxx20070620 City of San Leandro Payroll Data CHECKS PAID DEBIT 198.45 0000201837 xxxxxxxxxxx20070620 City of San Leandro Payroll Data CHECKS PAID DEBIT 1,369.00 0000201851 xxxxxxxxxxx20070620 City of San Leandro Payroll Data CHECKS PAID DEBIT 2,415.24 0000201854 xxxxxxxxxxx20070620 City of San Leandro Payroll Data CHECKS PAID DEBIT 815.03 0000201896 xxxxxxxxxxx20070620 City of San Leandro Payroll Data CHECKS PAID DEBIT 265.56 0000201897 xxxxxxxxxxx20070620 City of San Leandro Payroll Data CHECKS PAID DEBIT 1,531.50 0000201908 xxxxxxxxxxx20070620 City of San Leandro Payroll Data CHECKS PAID DEBIT 1,169.63 0000201914 xxxxxxxxxxx20070620 City of San Leandro Payroll Total CHECKS PAID DEBIT 12,142.89

City of San Leandro- General

20070620 City of San Leandro General Data PREAUTHORIZED ACH CREDIT 2,816.36 0000000000 xxxxxxxxxxx

COMMODITY DES:SES COMMOD ID:SAN LEANDROINDN:CITY OF SAN LEANDRO CO ID:N954686779 CCDPMT INFO:UUT SESOL-REF:00014968020512110825000716901147623507062022


COMMODITY DES:SES COMMOD ID:SAN LEANDROINDN:CITY OF SAN LEANDRO CO ID:N954686779 CCDPMT INFO:UUT SESOL-REF:00014968020512110825000716901147622207062022

20070620 City of San Leandro General Data PREAUTHORIZED ACH CREDIT 132.65 0000045309 xxxxxxxxxxx

BOFA MS 1922 DES:MERCH SETL ID:430132212045309INDN:MANOR BRANCH LIBRARY CO ID:1210001922 CCDREF:00014968020512110825000717100658028107062022

C:\Documents and Settings\sperez\Local Settings\Temporary Internet Files\Content.Outlook\7EWRVHV0\Previous Day Report


Attachment A-3


BOFA MS 1922 DES:MERCH SETL ID:430132273381397INDN:CITY OF SAN LEANDRO CO ID:1210001922 CCDREF:00014968020512110825000717100658766307062022


BOFA MS 1922 DES:MERCH SETL ID:430132212094087INDN:CITY OF SAN LEANDRO CO ID:1210001922 CCDREF:00014968020512110825000717100658053407062022

20070620 City of San Leandro General Total PREAUTHORIZED ACH CREDIT 10,993.46

20070620 City of San Leandro General Data COMMERCIAL DEPOSIT CREDIT 2,802.08 0000000005 xxxxxxxxxxxCA VAULT DEPOSIT



20070620 City of San Leandro General Data COMMERCIAL DEPOSIT CREDIT 639.63 0000000010 xxxxxxxxxxxCA VAULT DEPOSIT

20070620 City of San Leandro General Data COMMERCIAL DEPOSIT CREDIT 502.90 0000000010 xxxxxxxxxxxCA VAULT DEPOSIT




20070620 City of San Leandro General Total COMMERCIAL DEPOSIT CREDIT 239,943.17

20070620 City of San Leandro General Data SWEEP-PRINCIPAL CREDIT 13,158,552.13 0000000000 xxxxxxxxxxxSWEEP-PRINCIPAL CREDIT

20070620 City of San Leandro General Total SWEEP-PRINCIPAL CREDIT 13,158,552.1320070620 City of San Leandro General Total 13,409,488.76

20070620 City of San Leandro General Data PREAUTHORIZED ACH DEBIT 351,697.71 0000000000 xxxxxxxxxxx

IRS DES:USATAXPYMT ID:270757100525411INDN:CITY OF SAN LEANDRO CO ID:3387702000 CCDREF:00014968020512110825000717100608947307062027



Attachment A-3


EMPLOYMENT DEVEL DES:EDD EFTPMT ID:80038599INDN:CITY OF SAN LEANDRO CO ID:1282533055 CCDPMT INFO:TXP*80038599*01100*070620*T*0*T*6052974*T*6052974-REF:00014968020512110825000717100594810907062027


STATE OF CA- EPE DES:CHILD SUP ID:INDN:City of San Leandro CO ID:2926999618 CCDREF:00014968020512110825000717000474465807062027

20070620 City of San Leandro General Total PREAUTHORIZED ACH DEBIT 416,272.95

20070620 City of San Leandro General Data CHECKS PAID DEBIT 200.25 0000141168 xxxxxxxxxxx20070620 City of San Leandro General Data CHECKS PAID DEBIT 90.00 0000141255 xxxxxxxxxxx20070620 City of San Leandro General Data CHECKS PAID DEBIT 300.00 0000141266 xxxxxxxxxxx20070620 City of San Leandro General Data CHECKS PAID DEBIT 250.00 0000141319 xxxxxxxxxxx20070620 City of San Leandro General Data CHECKS PAID DEBIT 1,448.26 0000141329 xxxxxxxxxxx20070620 City of San Leandro General Data CHECKS PAID DEBIT 97.40 0000141343 xxxxxxxxxxx20070620 City of San Leandro General Data CHECKS PAID DEBIT 121.95 0000141345 xxxxxxxxxxx20070620 City of San Leandro General Data CHECKS PAID DEBIT 1,300.95 0000141355 xxxxxxxxxxx20070620 City of San Leandro General Data CHECKS PAID DEBIT 1,114.25 0000141358 xxxxxxxxxxx20070620 City of San Leandro General Data CHECKS PAID DEBIT 1,926.82 0000141374 xxxxxxxxxxx20070620 City of San Leandro General Data CHECKS PAID DEBIT 350.00 0000141376 xxxxxxxxxxx20070620 City of San Leandro General Data CHECKS PAID DEBIT 90.00 0000141388 xxxxxxxxxxx20070620 City of San Leandro General Data CHECKS PAID DEBIT 500.00 0000141408 xxxxxxxxxxx20070620 City of San Leandro General Data CHECKS PAID DEBIT 100.00 0000141441 xxxxxxxxxxx20070620 City of San Leandro General Data CHECKS PAID DEBIT 174.00 0000141447 xxxxxxxxxxx20070620 City of San Leandro General Data CHECKS PAID DEBIT 68.32 0000141450 xxxxxxxxxxx20070620 City of San Leandro General Data CHECKS PAID DEBIT 227.62 0000141483 xxxxxxxxxxx20070620 City of San Leandro General Data CHECKS PAID DEBIT 211.97 0000141484 xxxxxxxxxxx20070620 City of San Leandro General Data CHECKS PAID DEBIT 189.00 0000141509 xxxxxxxxxxx20070620 City of San Leandro General Data CHECKS PAID DEBIT 1,638.87 0000141514 xxxxxxxxxxx20070620 City of San Leandro General Data CHECKS PAID DEBIT 3,803.00 0000141524 xxxxxxxxxxx20070620 City of San Leandro General Total CHECKS PAID DEBIT 14,202.66

20070620 City of San Leandro General Data DEPOSITED ITEM RETURN DEBIT 9.00 0000000003 xxxxxxxxxxxDEPOSITED ITEM RETURNED

20070620 City of San Leandro General Total DEPOSITED ITEM RETURN DEBIT 9.00



Attachment A-3

20070620 City of San Leandro General Data ZBA DEBIT TRANSFER 11,437.66 0149480201 xxxxxxxxxxxTRSF TO 149480201

20070620 City of San Leandro General Total ZBA DEBIT TRANSFER 11,437.66

20070620 City of San Leandro General Data INDIV INVESTMENT PURCHASED 12,752,232.38 0000000000 00000000000TRANSFER TO INVESTMENT

20070620 City of San Leandro General Total INDIV INVESTMENT PURCHASED 12,752,232.3820070620 City of San Leandro General Total 13,194,154.65

City of San Leandro Workers compensation20070620 City of San Leandro Workers ComData CHECKS PAID DEBIT 48.39 0000077232 xxxxxxxxxxx20070620 City of San Leandro Workers ComData CHECKS PAID DEBIT 101.26 0000077238 xxxxxxxxxxx20070620 City of San Leandro Workers ComData CHECKS PAID DEBIT 21.13 0000077239 xxxxxxxxxxx20070620 City of San Leandro Workers ComTotal CHECKS PAID DEBIT 170.7820070620 City of San Leandro Workers ComTotal 170.78


Previous Day Detail and Summary Report

Attachment A-2

Previous Day - Detail and Summary ReportingType Account Amount Customer Reference Bank Reference

George Hills (Self Insurance-Risk)Summary OPENING LEDGER BALANCE 75,000.00Summary CLOSING LEDGER BALANCE 75,000.00Summary AVERAGE CLOSING LEDGER MTD 74,068.15Summary OPENING AVAILABLE BALANCE 75,000.00Summary COLLECTED/CLOSING AVAIL BAL 75,000.00Summary AVERAGE COLLECTED BALANCE MTD 74,068.15Summary MUTUAL FUND BALANCE 0.00Summary 1 DAY FLOAT 0.00Summary FLOAT ADJUSTMENT 0.00Summary 2 OR MORE DAYS FLOAT 0.00Summary 3 OR MORE DAYS FLOAT 0.00Summary 4 DAY FLOAT 0.00Summary 5 DAY FLOAT 0.00Summary 6 DAY FLOAT 0.00Summary TOTAL CREDITS 0.00Summary TOTAL DEBITS 0.00Summary TOTAL CREDITS NOT DETAILED 0.00Summary TOTAL LOCKBOX DEPOSIT CR 0.00Summary TOTAL EDI TRANSACTION CREDITS 0.00Summary TOTAL ACH CREDITS 0.00Summary TOTAL PREAUTHORIZED PAYMENT CR 0.00Summary TOTAL OTHER CHECK DEPOSITS CR 0.00Summary TOTAL LOAN PROCEED CREDITS 0.00Summary TOTAL CASH LETTER CREDITS 0.00Summary TOTAL INCOMING MONEY TRNSFR CR 0.00Summary TOTAL AUTOMATIC TRANSFER CR 0.00Summary TOTAL FX/INTERNATIONAL CREDITS 0.00Summary TOTAL LETTERS OF CREDIT CR 0.00Summary TOTAL SECURITY CREDITS 0.00Summary TOTAL BANKERS ACCEPTANCE CR 0.00Summary TOTAL DEPOSITED ITEMS RET CR 0.00Summary TOTAL REJECTED CREDITS 0.00Summary TOTAL ZBA CREDITS 0.00Summary TOTAL CONTROLLED DISBURSING CR 0.00Summary TOTAL ATM CREDITS 0.00Summary TOTAL COMMERCIAL DEPOSIT CR 0.00Summary TOTAL SWEEP CREDITS 0.00Summary TOTAL MISCELLANEOUS CREDITS 0.00Summary DEBITS NOT DETAILED 0.00Summary TOTAL DEBITS LESS RETURN ITEMS 0.00Summary TOTAL LOCKBOX DEBITS 0.00Summary TOTAL EDI TRANSACTION DEBITS 0.00Summary TOTAL ACH DEBITS 0.00Summary TOTAL CHECKS PAID DEBIT 0.00Summary TOTAL LOAN DEBITS 0.00Summary TOTAL CASH LETTER DEBITS 0.00Summary TOTAL OUTGOING MONEY TRNSFR DR 0.00Summary TOTAL AUTOMATIC TRANSFER DR 0.00Summary TOTAL FX/INTERNATIONAL DEBITS 0.00Summary TOTAL LETTERS OF CREDIT DR 0.00Summary TOTAL SECURITY DEBITS 0.00Summary TOTAL BANKERS ACCEPTANCE DR 0.00Summary TOTAL DEPOSITED ITEMS RET DR 0.00Summary TOTAL ZBA DEBITS 0.00Summary TOTAL CONTROLLED DISBURSING DR 0.00Summary TOTAL ATM DEBITS 0.00Summary TOTAL ARP DEBITS 0.00Summary TOTAL INVESTMENTS PURCHASED DR 0.00Summary TOTAL MISCELLANEOUS DEBITS 0.00

C:\Documents and Settings\sperez\Local Settings\Temporary Internet Files\Content.Outlook\7EWRVHV0\Preveious Sum-Dtl report


Attachment A-2

Payroll AccountSummary OPENING LEDGER BALANCE 0.00Summary CLOSING LEDGER BALANCE 0.00Summary AVERAGE CLOSING LEDGER MTD 0.00Summary OPENING AVAILABLE BALANCE 0.00Summary COLLECTED/CLOSING AVAIL BAL 0.00Summary AVERAGE COLLECTED BALANCE MTD 0.00Summary MUTUAL FUND BALANCE 0.00Summary 1 DAY FLOAT 0.00Summary FLOAT ADJUSTMENT 0.00Summary 2 OR MORE DAYS FLOAT 0.00Summary 3 OR MORE DAYS FLOAT 0.00Summary 4 DAY FLOAT 0.00Summary 5 DAY FLOAT 0.00Summary 6 DAY FLOAT 0.00Summary TOTAL CREDITS 37,490.76Summary TOTAL DEBITS 37,490.76Summary TOTAL CREDITS NOT DETAILED 0.00Summary TOTAL LOCKBOX DEPOSIT CR 0.00Summary TOTAL EDI TRANSACTION CREDITS 0.00Summary TOTAL ACH CREDITS 0.00Summary TOTAL PREAUTHORIZED PAYMENT CR 0.00Summary TOTAL OTHER CHECK DEPOSITS CR 0.00Summary TOTAL LOAN PROCEED CREDITS 0.00Summary TOTAL CASH LETTER CREDITS 0.00Summary TOTAL INCOMING MONEY TRNSFR CR 0.00Summary TOTAL AUTOMATIC TRANSFER CR 0.00Summary TOTAL FX/INTERNATIONAL CREDITS 0.00Summary TOTAL LETTERS OF CREDIT CR 0.00Summary TOTAL SECURITY CREDITS 0.00Summary TOTAL BANKERS ACCEPTANCE CR 0.00Summary TOTAL DEPOSITED ITEMS RET CR 0.00Summary TOTAL REJECTED CREDITS 0.00Summary TOTAL ZBA CREDITS 37,490.76Summary TOTAL CONTROLLED DISBURSING CR 0.00Summary TOTAL ATM CREDITS 0.00Summary TOTAL COMMERCIAL DEPOSIT CR 0.00Summary TOTAL SWEEP CREDITS 0.00Summary TOTAL MISCELLANEOUS CREDITS 0.00Summary DEBITS NOT DETAILED 0.00Summary TOTAL DEBITS LESS RETURN ITEMS 0.00Summary TOTAL LOCKBOX DEBITS 0.00Summary TOTAL EDI TRANSACTION DEBITS 0.00Summary TOTAL ACH DEBITS 0.00Summary TOTAL CHECKS PAID DEBIT 37,490.76Summary TOTAL LOAN DEBITS 0.00Summary TOTAL CASH LETTER DEBITS 0.00Summary TOTAL OUTGOING MONEY TRNSFR DR 0.00Summary TOTAL AUTOMATIC TRANSFER DR 0.00Summary TOTAL FX/INTERNATIONAL DEBITS 0.00Summary TOTAL LETTERS OF CREDIT DR 0.00Summary TOTAL SECURITY DEBITS 0.00Summary TOTAL BANKERS ACCEPTANCE DR 0.00Summary TOTAL DEPOSITED ITEMS RET DR 0.00Summary TOTAL ZBA DEBITS 0.00Summary TOTAL CONTROLLED DISBURSING DR 0.00Summary TOTAL ATM DEBITS 0.00Summary TOTAL ARP DEBITS 0.00Summary TOTAL INVESTMENTS PURCHASED DR 0.00Summary TOTAL MISCELLANEOUS DEBITS 0.00Detail CreditsZBA CREDIT 37,490.76 0149680205 xxxxxxxxxxxDetail CreditsZBA CREDIT 37,490.76Detail Credits 37,490.76



Attachment A-2

Detail Debits CHECKS PAID DEBIT 565.21 0000201653 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 3,000.13 0000201659 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 2,934.87 0000201829 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 2,654.27 0000201831 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 2,295.05 0000201832 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 2,093.72 0000201833 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 630.21 0000201839 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 122.12 0000201840 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 203.53 0000201842 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 203.53 0000201843 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 203.53 0000201844 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 1,884.41 0000201846 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 1,738.87 0000201849 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 521.02 0000201856 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 1,960.00 0000201858 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 1,811.55 0000201859 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 2,294.23 0000201860 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 1,645.87 0000201861 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 758.19 0000201875 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 414.38 0000201877 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 433.15 0000201878 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 727.12 0000201884 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 504.37 0000201885 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 354.10 0000201887 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 424.80 0000201892 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 106.39 0000201894 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 871.72 0000201899 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 253.48 0000201901 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 616.44 0000201907 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 438.01 0000201912 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 242.32 0000201916 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 1,614.74 0000201920 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 1,902.87 0000201929 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 1,066.56 0000201930 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 37,490.76Detail Debits 37,490.76

General AccountSummary OPENING LEDGER BALANCE 269,226.54Summary CLOSING LEDGER BALANCE 538,056.09Summary AVERAGE CLOSING LEDGER MTD 1,370,887.23Summary OPENING AVAILABLE BALANCE 377,749.95Summary COLLECTED/CLOSING AVAIL BAL 0.00Summary AVERAGE COLLECTED BALANCE MTD 0.00Summary MUTUAL FUND BALANCE 0.00Summary 1 DAY FLOAT 377,749.95Summary FLOAT ADJUSTMENT 0.00Summary 2 OR MORE DAYS FLOAT 160,306.14Summary 3 OR MORE DAYS FLOAT 25,966.33Summary 4 DAY FLOAT 1,077.84Summary 5 DAY FLOAT 0.00Summary 6 DAY FLOAT 0.00Summary TOTAL CREDITS 13,193,023.40Summary TOTAL DEBITS 12,924,193.85Summary TOTAL CREDITS NOT DETAILED 0.00Summary TOTAL LOCKBOX DEPOSIT CR 0.00Summary TOTAL EDI TRANSACTION CREDITS 0.00Summary TOTAL ACH CREDITS 5,357.43Summary TOTAL PREAUTHORIZED PAYMENT CR 0.00Summary TOTAL OTHER CHECK DEPOSITS CR 0.00Summary TOTAL LOAN PROCEED CREDITS 0.00Summary TOTAL CASH LETTER CREDITS 0.00Summary TOTAL INCOMING MONEY TRNSFR CR 0.00Summary TOTAL AUTOMATIC TRANSFER CR 0.00



Attachment A-2

Summary TOTAL FX/INTERNATIONAL CREDITS 0.00Summary TOTAL LETTERS OF CREDIT CR 0.00Summary TOTAL SECURITY CREDITS 0.00Summary TOTAL BANKERS ACCEPTANCE CR 0.00Summary TOTAL DEPOSITED ITEMS RET CR 0.00Summary TOTAL REJECTED CREDITS 0.00Summary TOTAL ZBA CREDITS 0.00Summary TOTAL CONTROLLED DISBURSING CR 0.00Summary TOTAL ATM CREDITS 0.00Summary TOTAL COMMERCIAL DEPOSIT CR 423,673.06Summary TOTAL SWEEP CREDITS 12,752,232.38Summary TOTAL MISCELLANEOUS CREDITS 11,760.53Summary DEBITS NOT DETAILED 0.00Summary TOTAL DEBITS LESS RETURN ITEMS 0.00Summary TOTAL LOCKBOX DEBITS 0.00Summary TOTAL EDI TRANSACTION DEBITS 0.00Summary TOTAL ACH DEBITS 0.00Summary TOTAL CHECKS PAID DEBIT 17,754.59Summary TOTAL LOAN DEBITS 0.00Summary TOTAL CASH LETTER DEBITS 0.00Summary TOTAL OUTGOING MONEY TRNSFR DR 8,000,000.00Summary TOTAL AUTOMATIC TRANSFER DR 0.00Summary TOTAL FX/INTERNATIONAL DEBITS 0.00Summary TOTAL LETTERS OF CREDIT DR 0.00Summary TOTAL SECURITY DEBITS 0.00Summary TOTAL BANKERS ACCEPTANCE DR 0.00Summary TOTAL DEPOSITED ITEMS RET DR 276.10Summary TOTAL ZBA DEBITS 37,490.76Summary TOTAL CONTROLLED DISBURSING DR 0.00Summary TOTAL ATM DEBITS 0.00Summary TOTAL ARP DEBITS 0.00Summary TOTAL INVESTMENTS PURCHASED DR 4,868,672.40Summary TOTAL MISCELLANEOUS DEBITS 0.00Detail CreditsPREAUTHORIZED ACH CREDIT 12.25 0000045309 xxxxxxxxxxxDetail CreditsPREAUTHORIZED ACH CREDIT 2,886.00 0000081397 xxxxxxxxxxxDetail CreditsPREAUTHORIZED ACH CREDIT 2,459.18 0000094087 xxxxxxxxxxxDetail CreditsPREAUTHORIZED ACH CREDIT 5,357.43Detail CreditsCOMMERCIAL DEPOSIT CREDIT 2,030.77 0000000004 xxxxxxxxxxxDetail CreditsCOMMERCIAL DEPOSIT CREDIT 421,642.29 0000000007 xxxxxxxxxxxDetail CreditsCOMMERCIAL DEPOSIT CREDIT 423,673.06Detail CreditsDEPOSIT CORRECTION CASH CREDIT 398.00 0000000001 xxxxxxxxxxxDetail CreditsDEPOSIT CORRECTION CASH CREDIT 398.00Detail CreditsSWEEP-PRINCIPAL CREDIT 12,752,232.38 0000000000 xxxxxxxxxxxDetail CreditsSWEEP-PRINCIPAL CREDIT 12,752,232.38Detail CreditsCREDIT ADJUSTMENT 11,362.53 0000009999 xxxxxxxxxxxDetail CreditsCREDIT ADJUSTMENT 11,362.53Detail Credits 13,193,023.40Detail Debits CHECKS PAID DEBIT 279.20 0000140133 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 170.00 0000140527 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 279.20 0000141030 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 5,500.00 0000141156 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 677.68 0000141160 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 438.20 0000141231 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 46.56 0000141260 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 110.00 0000141310 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 56.74 0000141369 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 66.00 0000141379 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 1,155.00 0000141392 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 891.58 0000141393 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 203.65 0000141399 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 655.00 0000141402 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 1,489.70 0000141419 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 1,112.00 0000141434 xxxxxxxxxxx



Attachment A-2

Detail Debits CHECKS PAID DEBIT 429.98 0000141449 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 876.81 0000141478 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 258.00 0000141481 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 223.93 0000141494 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 1,682.78 0000141496 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 18.23 0000141497 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 894.35 0000141518 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 189.00 0000141530 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 51.00 0000141539 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 17,754.59Detail Debits DEPOSITED ITEM RETURN DEBIT 276.10 0000000003 xxxxxxxxxxxDetail Debits DEPOSITED ITEM RETURN DEBIT 276.10Detail Debits OUTGOING MONEY TRANSFER DEBIT 8,000,000.00 0000000000 xxxxxxxxxxxDetail Debits OUTGOING MONEY TRANSFER DEBIT 8,000,000.00Detail Debits ZBA DEBIT TRANSFER 37,490.76 0149480201 xxxxxxxxxxxDetail Debits ZBA DEBIT TRANSFER 37,490.76Detail Debits INDIV INVESTMENT PURCHASED DR 4,868,672.40 0000000000 00000000000Detail Debits INDIV INVESTMENT PURCHASED DR 4,868,672.40Detail Debits 12,924,193.85

Workers CompensationSummary OPENING LEDGER BALANCE 68,997.62Summary CLOSING LEDGER BALANCE 64,893.81Summary AVERAGE CLOSING LEDGER MTD 69,317.13Summary OPENING AVAILABLE BALANCE 64,893.81Summary COLLECTED/CLOSING AVAIL BAL 64,893.81Summary AVERAGE COLLECTED BALANCE MTD 69,317.13Summary MUTUAL FUND BALANCE 0.00Summary 1 DAY FLOAT 0.00Summary FLOAT ADJUSTMENT 0.00Summary 2 OR MORE DAYS FLOAT 0.00Summary 3 OR MORE DAYS FLOAT 0.00Summary 4 DAY FLOAT 0.00Summary 5 DAY FLOAT 0.00Summary 6 DAY FLOAT 0.00Summary TOTAL CREDITS 0.00Summary TOTAL DEBITS 4,103.81Summary TOTAL CREDITS NOT DETAILED 0.00Summary TOTAL LOCKBOX DEPOSIT CR 0.00Summary TOTAL EDI TRANSACTION CREDITS 0.00Summary TOTAL ACH CREDITS 0.00Summary TOTAL PREAUTHORIZED PAYMENT CR 0.00Summary TOTAL OTHER CHECK DEPOSITS CR 0.00Summary TOTAL LOAN PROCEED CREDITS 0.00Summary TOTAL CASH LETTER CREDITS 0.00Summary TOTAL INCOMING MONEY TRNSFR CR 0.00Summary TOTAL AUTOMATIC TRANSFER CR 0.00Summary TOTAL FX/INTERNATIONAL CREDITS 0.00Summary TOTAL LETTERS OF CREDIT CR 0.00Summary TOTAL SECURITY CREDITS 0.00Summary TOTAL BANKERS ACCEPTANCE CR 0.00Summary TOTAL DEPOSITED ITEMS RET CR 0.00Summary TOTAL REJECTED CREDITS 0.00Summary TOTAL ZBA CREDITS 0.00Summary TOTAL CONTROLLED DISBURSING CR 0.00Summary TOTAL ATM CREDITS 0.00Summary TOTAL COMMERCIAL DEPOSIT CR 0.00Summary TOTAL SWEEP CREDITS 0.00Summary TOTAL MISCELLANEOUS CREDITS 0.00Summary DEBITS NOT DETAILED 0.00Summary TOTAL DEBITS LESS RETURN ITEMS 0.00Summary TOTAL LOCKBOX DEBITS 0.00Summary TOTAL EDI TRANSACTION DEBITS 0.00Summary TOTAL ACH DEBITS 0.00



Attachment A-2

Summary TOTAL CHECKS PAID DEBIT 4,103.81Summary TOTAL LOAN DEBITS 0.00Summary TOTAL CASH LETTER DEBITS 0.00Summary TOTAL OUTGOING MONEY TRNSFR DR 0.00Summary TOTAL AUTOMATIC TRANSFER DR 0.00Summary TOTAL FX/INTERNATIONAL DEBITS 0.00Summary TOTAL LETTERS OF CREDIT DR 0.00Summary TOTAL SECURITY DEBITS 0.00Summary TOTAL BANKERS ACCEPTANCE DR 0.00Summary TOTAL DEPOSITED ITEMS RET DR 0.00Summary TOTAL ZBA DEBITS 0.00Summary TOTAL CONTROLLED DISBURSING DR 0.00Summary TOTAL ATM DEBITS 0.00Summary TOTAL ARP DEBITS 0.00Summary TOTAL INVESTMENTS PURCHASED DR 0.00Summary TOTAL MISCELLANEOUS DEBITS 0.00Detail Debits CHECKS PAID DEBIT 101.81 0000077226 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 20.51 0000077227 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 101.81 0000077228 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 59.29 0000077231 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 80.33 0000077233 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 1,827.82 0000077234 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 92.29 0000077246 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 274.37 0000077247 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 103.39 0000077248 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 11.69 0000077252 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 104.50 0000077253 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 1,326.00 0000077254 xxxxxxxxxxxDetail Debits CHECKS PAID DEBIT 4,103.81Detail Debits 4,103.81Summary OPENING LEDGER BALANCE 413,224.16Summary CLOSING LEDGER BALANCE 677,949.90Summary AVERAGE CLOSING LEDGER MTD 1,514,272.51Summary OPENING AVAILABLE BALANCE 517,643.76Summary COLLECTED/CLOSING AVAIL BAL 139,893.81Summary AVERAGE COLLECTED BALANCE MTD 143,385.28Summary MUTUAL FUND BALANCE 0.00Summary 1 DAY FLOAT 377,749.95Summary FLOAT ADJUSTMENT 0.00Summary 2 OR MORE DAYS FLOAT 160,306.14Summary 3 OR MORE DAYS FLOAT 25,966.33Summary 4 DAY FLOAT 1,077.84Summary 5 DAY FLOAT 0.00Summary 6 DAY FLOAT 0.00Summary TOTAL CREDITS 13,230,514.16Summary TOTAL DEBITS 12,965,788.42Summary TOTAL CREDITS NOT DETAILED 0.00Summary TOTAL LOCKBOX DEPOSIT CR 0.00Summary TOTAL EDI TRANSACTION CREDITS 0.00Summary TOTAL ACH CREDITS 5,357.43Summary TOTAL PREAUTHORIZED PAYMENT CR 0.00Summary TOTAL OTHER CHECK DEPOSITS CR 0.00Summary TOTAL LOAN PROCEED CREDITS 0.00Summary TOTAL CASH LETTER CREDITS 0.00Summary TOTAL INCOMING MONEY TRNSFR CR 0.00Summary TOTAL AUTOMATIC TRANSFER CR 0.00Summary TOTAL FX/INTERNATIONAL CREDITS 0.00Summary TOTAL LETTERS OF CREDIT CR 0.00Summary TOTAL SECURITY CREDITS 0.00Summary TOTAL BANKERS ACCEPTANCE CR 0.00Summary TOTAL DEPOSITED ITEMS RET CR 0.00Summary TOTAL REJECTED CREDITS 0.00Summary TOTAL ZBA CREDITS 37,490.76



Attachment A-2

Summary TOTAL CONTROLLED DISBURSING CR 0.00Summary TOTAL ATM CREDITS 0.00Summary TOTAL COMMERCIAL DEPOSIT CR 423,673.06Summary TOTAL SWEEP CREDITS 12,752,232.38Summary TOTAL MISCELLANEOUS CREDITS 11,760.53Summary DEBITS NOT DETAILED 0.00Summary TOTAL DEBITS LESS RETURN ITEMS 0.00Summary TOTAL LOCKBOX DEBITS 0.00Summary TOTAL EDI TRANSACTION DEBITS 0.00Summary TOTAL ACH DEBITS 0.00Summary TOTAL CHECKS PAID DEBIT 59,349.16Summary TOTAL LOAN DEBITS 0.00Summary TOTAL CASH LETTER DEBITS 0.00Summary TOTAL OUTGOING MONEY TRNSFR DR 8,000,000.00Summary TOTAL AUTOMATIC TRANSFER DR 0.00Summary TOTAL FX/INTERNATIONAL DEBITS 0.00Summary TOTAL LETTERS OF CREDIT DR 0.00Summary TOTAL SECURITY DEBITS 0.00Summary TOTAL BANKERS ACCEPTANCE DR 0.00Summary TOTAL DEPOSITED ITEMS RET DR 276.10Summary TOTAL ZBA DEBITS 37,490.76Summary TOTAL CONTROLLED DISBURSING DR 0.00Summary TOTAL ATM DEBITS 0.00Summary TOTAL ARP DEBITS 0.00Summary TOTAL INVESTMENTS PURCHASED DR 4,868,672.40Summary TOTAL MISCELLANEOUS DEBITS 0.00Detail Credits 13,230,514.16Detail Debits 12,965,788.42Summary OPENING LEDGER BALANCE 413,224.16Summary CLOSING LEDGER BALANCE 677,949.90Summary AVERAGE CLOSING LEDGER MTD 1,514,272.51Summary OPENING AVAILABLE BALANCE 517,643.76Summary COLLECTED/CLOSING AVAIL BAL 139,893.81Summary AVERAGE COLLECTED BALANCE MTD 143,385.28Summary MUTUAL FUND BALANCE 0.00Summary 1 DAY FLOAT 377,749.95Summary FLOAT ADJUSTMENT 0.00Summary 2 OR MORE DAYS FLOAT 160,306.14Summary 3 OR MORE DAYS FLOAT 25,966.33Summary 4 DAY FLOAT 1,077.84Summary 5 DAY FLOAT 0.00Summary 6 DAY FLOAT 0.00Summary TOTAL CREDITS 13,230,514.16Summary TOTAL DEBITS 12,965,788.42Summary TOTAL CREDITS NOT DETAILED 0.00Summary TOTAL LOCKBOX DEPOSIT CR 0.00Summary TOTAL EDI TRANSACTION CREDITS 0.00Summary TOTAL ACH CREDITS 5,357.43Summary TOTAL PREAUTHORIZED PAYMENT CR 0.00Summary TOTAL OTHER CHECK DEPOSITS CR 0.00Summary TOTAL LOAN PROCEED CREDITS 0.00Summary TOTAL CASH LETTER CREDITS 0.00Summary TOTAL INCOMING MONEY TRNSFR CR 0.00Summary TOTAL AUTOMATIC TRANSFER CR 0.00Summary TOTAL FX/INTERNATIONAL CREDITS 0.00Summary TOTAL LETTERS OF CREDIT CR 0.00Summary TOTAL SECURITY CREDITS 0.00Summary TOTAL BANKERS ACCEPTANCE CR 0.00Summary TOTAL DEPOSITED ITEMS RET CR 0.00Summary TOTAL REJECTED CREDITS 0.00Summary TOTAL ZBA CREDITS 37,490.76Summary TOTAL CONTROLLED DISBURSING CR 0.00Summary TOTAL ATM CREDITS 0.00



Attachment A-2

Summary TOTAL COMMERCIAL DEPOSIT CR 423,673.06Summary TOTAL SWEEP CREDITS 12,752,232.38Summary TOTAL MISCELLANEOUS CREDITS 11,760.53Summary DEBITS NOT DETAILED 0.00Summary TOTAL DEBITS LESS RETURN ITEMS 0.00Summary TOTAL LOCKBOX DEBITS 0.00Summary TOTAL EDI TRANSACTION DEBITS 0.00Summary TOTAL ACH DEBITS 0.00Summary TOTAL CHECKS PAID DEBIT 59,349.16Summary TOTAL LOAN DEBITS 0.00Summary TOTAL CASH LETTER DEBITS 0.00Summary TOTAL OUTGOING MONEY TRNSFR DR 8,000,000.00Summary TOTAL AUTOMATIC TRANSFER DR 0.00Summary TOTAL FX/INTERNATIONAL DEBITS 0.00Summary TOTAL LETTERS OF CREDIT DR 0.00Summary TOTAL SECURITY DEBITS 0.00Summary TOTAL BANKERS ACCEPTANCE DR 0.00Summary TOTAL DEPOSITED ITEMS RET DR 276.10Summary TOTAL ZBA DEBITS 37,490.76Summary TOTAL CONTROLLED DISBURSING DR 0.00Summary TOTAL ATM DEBITS 0.00Summary TOTAL ARP DEBITS 0.00Summary TOTAL INVESTMENTS PURCHASED DR 4,868,672.40Summary TOTAL MISCELLANEOUS DEBITS 0.00Detail Credits 13,230,514.16Detail Debits 12,965,788.42


:ED ON 12-29-2006 CITY OF SAN LEANDRODEPOSITOR'S NAME ACCOUNT NUMBER

;UMMARY OF ACTIVITYPAIDcAECKS OTHER DEBITS CREOITS NEW BALANCE

1

cKPLANATION OF SPECIAL CODES~

C = MEMO CHECK NO. CORRECTIONH = HOLDOVERM = MISC. DEBITCR = CREDIT REVERSAL

R = CHECK REVERSE(CREDIT)S = STALE DATED CHECKSC = SERVICECHARGE

W = PAID WITHOUT ISSUERC = REVERSALCK. NO. CORRECTIONRH = REVERSAL HOLDOVER

;ERVICED BY: CAS-701-06-15 PR98-M

CHECK NUMBER AMOUNT DATE CHECK NUMBER AMOUNT DATE CHECK NUMBER AMOUNT DATE

131324 10500 121906 135303 101800 120106 135514 10000 120606131563 26550 121206 135318 60171 120506 135515 2500 122606132597 120000 121106 135326 404 O 120106 135519 3267 121306133119 250000 122206 135342 113 O 120406 135520 30250 120406133512 120000 121106 135354 37400 121906 135523 9200 120106134139 125000 121206 135359 9411 3 120806 135526 12006 121506134408 OO00 121806 135388 448 1 120606 135528 368700 120506134481 8330 122806 135391 14000 120706 135532 411684 120406134513 30000 121206 135396 76171 120406 135534 6000 122706134576 15000 120106 135415 227 6 120506 135536 1109100 120406134661 5000 120406 135430 8B979 1 120406 135537 6000 120106134744 0600 121106 135431 8160955 120406 135538 4900 121806134782 1200 121806 135432 8158910 120406 135539 164 78 120506134790 12460 120506 135433 7B850 9 120106 135553 4310367 120506

134825 5600 122806 135434 7B338 8 120106 135554 OO00 120706

134852 104896 120706 135435 H 832 3 120106 135555 17500 120606

134861 120000 121106 135446 1500 121106 135558 75600 122606

134878 4875 120606 135448 ]20000 122006 135560 612953 120606134909 2500 120806 135454 7915 120606 135569 4496 120406

134967 1200 120406 135456 94500 120706 135571 15000 120506135022 14400 122806 135459 106869 120106 135576* 5000 120406

135025 22500 120606 135467 11459 120506 135578 50000 120506

135073 125000 120406 135468 28500 120106 135579 16942 121206

135075 4000 122806 135471 1908 120406 135581 39400 120406

135076 9500 120406 135472 40653 120606 135583 71600 120106

135088 6300 120806 135483 128345 120506 135586 925 55 120806

135099 35000 122206 135484 10000 120406 135588 50963 5 120506

135101 50000 122206 135485 77500 120806 135592 72930 120806

135167 27862 120506 135491 35000 120506 135595 19900 120606

135185 56000 120606 135493 261 7 120106 135597 5055 120706

135186 13000 120606 135495 43470 122606 135605 9919713 120406

135192 3167 9 120506 135496 9900 122706 135608 34000 120706

135272 37355764 120106 135497 It!74832 120706 135610 16950 120106

135276 10000 121506 135505 1197 120506 135614 672311 120606

135292 190225 121906 135512 120000 120506 135615 72500 121206

:ED ON 12-29-2006 CITY OF SAN LEANDRODEPOSITOR'S NAME

::HECK NUMBER AMOUNT DATE CHECK NUMBER AMOUNT DATE CHECK NUMBER AMOUNT DATE

135618* 11000 121406 135672 1312~2 121106 135708 206250 120706135619 10000 121506 135674* 90106 120706 135709 304166 121106135621* 28~1 120506 135675 13213 122106 135710 16670 120806135623* 7359 120106 135676 65382 120406 135711 3194 120606135625* 11127&4 120106 135677 100000 120506 135712 62208 120406135631* 54~7 120506 135678 21570 120506 135713 29&0 120606

135632 7500 120506 135679 64970 120806 135716* ~8713 120406135639* 14000 121106 135680 5000 121106 135717 279 120506135644* 46140 120706 135681 75000 120706 135718 416&7 120806135645 36500 120406 135682 42500 120606 135719 1094100120406

135646 35401 120606 135683 681~1 120106 135720 2~7500 120806135647 239~3 120606 135684 50000 120106 135721 ~6840 120706135649* 140000 121806 135685 8045 120406 135722 6000 120806

135650 19~96&0 120406 135686 98~9 120106 135723 100000 121206135651 1541&7 120506 135687 509470 120406 135724 102450 120506

135652 350 120806 135688 75000 121306 135725 23~7257 120106

135653 10400 120706 135689 5502~4 120406 135727* ~82~0 122606135654 870200 121106 135690 24900 121806 135728 25000 120606

135655 19857 121206 135691 HIl78 120106 135729 110133120106135656 145154 120406 135692 :i52918120106 135731* ~OOOO 120406135657 290~2 120706 135693 :i252f72120406 135732 12500 121506135658 168~5 120706 135694 160699 120106 135733 17500 120806135659 94~6 120506 135695 83277 120106 135734 13200 120406135660 331~5 120606 135696 49030 120106 135735 ~5000 120106135661 2156~1 120806 135697 41254 120406 135736 50000 120606135662 196111 120606 135698 109~5 120406 135737 303902 120106

135663 875~8 120606 135699 41500 120406 135738 2440~0 120106135664 85211 120606 135700 41657 120406 135739 117478 120706135665 80033 120606 135701 3000 120706 135740 80408 120706135666 628~6 120606 135702 133333 120506 135741 3704 120806

135667 441~4 120606 135703 75000 120706 135742 3189950 120106135668 86000 120406 135704 14748 120606 135743 3115 121206135669 27~0 120406 135705 20000 120406 135744 315205 120806135670 99518 120606 135706 ~65264 120406 135745 ~6772 120806

135671 249~1 120406 135707 327597 120606 135746 130000 120506

ACCOUNT NUMBER

UMMARY OF ACTIVITY

2

.XPLANATION OF SPECIAL CODES~

C = MEMO CHECK NO. CORRECTIONH = HOLDOVERM = MISC. DEBIT

CR = CREDIT REVERSAL


W = PAID WITHOUT ISSUERC = REVERSALCK. NO. CORRECTIONRH = REVERSALHOLDOVER

;ERVICED BY: CA5-701-06-15 PR98-M

:ED ON 12-29-2006 CITY OF SAN LEANDRODEPOSITOR'S NAME ~ ACCOUNT NUMBER --

3

eXPLANATION OF SPECIAL CODES~

C = MEMO CHECK NO. CORRECTIONH = HOLDOVERM = MISC. DEBIT




,ERVICED BY: CA5-701-06-15 PR98-M

:HECK NUMBER AMOUNT DATE CHECK NUMBER AMOUNT DATE CHECK NUMBER AMOUNT DATE

135747 2900 120106 1357873E 1 95000 120606' 135823 115900 122606135748 75000 121806 1357893E 4 74706 120606 135824 16950 121306135749 34000 120706 135790 311339 120606 135825 203830 121106135750 10500 120106 135791 706708 120406 135826 17600 121906135751 407951 120506 135792 105978 120406 135827 71708 121406135752 25000 120806 135793 100269 120506 135828 7826 121306135753 2083 8 120106 135794 10000 120406 135829 155000 1212061357553E 297408 120106 135795 90000 120506 135830 .no94 121506135756 15500 120606 135796 la08690 121206 135831 118696 121506135757 1737 8 120606 135797 47691 121506 135832 88?5 120806135758 8109 121806 135798 25000 121806 135833 45000 121906135759 11000 120106 135799 18400 121406 135834 14000 1211061357613E 535000 120106 135800 9500 121406 135835 70752 1212061357633E ::;>5000 121106 135801 6517 121106 135836 55994 121406

135764 119400 120406 135802 10000 121206 135837 73 5319 121906135765 5455 120106 135803 739512 121106 135838 1618 121906

135766 4500 120106 135804 29146 121506 135839 11200::;>9121306135767 1166 7 120506 135805 7 87500 121206 135840 14000 121106135768 17000 121106 135806 , 67454 121206 1358423E 9900 121106135769 175000 120106 135807 27575 121506 135843 144178 120706

135770 100000 120706 135808 1431179121906 135844 11244 121106

135771 6649900 120106 135809 20000 121206 1358463E 18183647 121206

135772 23305 120806 135.810 415 4 121406 135847 75000 120806

135773 2185979 120606 135811 ::010 00 121506 135848 10000 121406

135774 75000 120506 135812 166 8 121406 135849 23612 121506

135775 112500 120506 135813 73610 121306 135850 34 6 121806

135776 116700 121506 135814 183770 121206 1358523E 494550 121806

135777 58333 120806 135815 724738 121106 135853 37101 121806

135778 9500 122106 135816 1061222 121306 135854 45000 121406

135779 1837230 120406 135817 12505 121906 135855 11879175121506

135780 253b6 120606 135818 11700 121406 135856 802186121106

135781 125000 122906 135819 5829 121306 135857 14475 122106

135782 50000 120506 135820 2B55559 121206 135858 46821 121906

1357843E 255698 120106 135821 85500 121406 135859 4200 121506

135785 58341 121106 135822 98 o 121106 135860 78610 121206

4

eXPLANATION OF SPECIAL CODESC = MEMO CHECK NO. CORRECTIONH = HOLDOVERM = MISC. DEBITCR = CREDIT REVERSAL


W = PAID WITHOUT ISSUERC = REVERSALCK. NO. CORRECTIONRH -REVERSALHOLDOVER

,ERVICED BY: CA5-701-06-15 PR9B-M

:ED ON 12-29-2006 CITY OF SAN LEANDRODEPOSITOR'S NAME I ACCOUNT NUMBER

CHECK NUMBER AMOUNT DATE CHECK NUMBER AMOUNT DATE CHECK NUMBER AMOUNT DATE

135861 122006 135900 120806 135937 121106

135862 121206 135901 121406 135938 121306

135863 122206 135902 121306 135939 121406

135864 122206 135903 121206 135940 121406

135866 121206 135904 121806 135941 120806

135867 121806 135905 121806 135942 121106

135868 121806 135906 121106 135943 121206

135869 121406 135907 121506 135944 121306

135870 121406 135908 121406 135945 121306

135871 121206 135910 121206 135946 121306

135872 1211 06 135911 121106 135947 122106

135873 121106 135912 121106 135948 122206

135874 121306 135913 121106 135951 121306

135875 121106 135914 121206 135952 122906

135877 121506 135915 121106 135953 121906

135878 121306 135916 121306 135954 121506

135879 121906 135917 122606 135955 121306

135880 121506 135918 121506 135956 121406

135881 121306 135919 121106 135957 121906

135882 121106 135920 121506 135958 122006

135883 121106 135922 122106 135959 121806135884 121406 135923 121406 135960 121506

135885 121206 135924 121506 135961 121806

135887 121206 135925 120806 135962 121806

135888 121206 135926 121206 135963 121806135889 121206 135927 121806 135964 121406135890 121106 135928 121806 135965 122806

135891 121206 135929 122206 135966 122206

135892 121306 135930 122206 135967 122206135893 121206 135931 121206 135968 122806135894 121406 135932 121106 135969 122206135895 121406 135933 121106 135970 121906135896 121406 135934 121106 135971 121906135897 121206 135935 121206 135972 121506135899 121206 135936 121106 135973 121806


....------ACCOUNT NUMBER

UMMARY OF ACTIVITY

5

eXPLANATION OF SPECIAL CODESC = MEMO CHECK NO. CORRECTIONH = HOLDOVERM = MISC. DEBIT




ERVICED BY: CA5-701-06-15 PR98-M


135974 8250 122006 136015 13100 122606 136052 1600 122606135975 126 90 121806 136016 132308 121906 136053 900 00 122006135976 62345 121906 136017 90000 122706 136054 OO00 122106135977 392301 122006 136018 32500 122006 136055 8.525 122006135978 11804 121806 136020* 44 6 121506 136057* OO00 122106135979 2650 121906 136021 50000 121806 136058 21 1 121806135980 107068 121906 136022 14205 122106 136060* 1957 4 122006135981 863 122006 136023 15169 121906 136063* 712 6 122106135982 185711 121906 136024 6500 122006 136064 84 3 121806135983 1000Ct2121906 136025 35955 121906 136065 6037 121806135984 93947 121906 136026 342118 121806 136066 3893 121906135985 721 8 121906 136027 333333 121506 136067 30509 122806135986 656 5 121906 136029* 208198 121906 136068 309 5 122106135987 58962 121906 136030 2E27040 121806 136069 37a6 121506135988 495 1 121906 136031 54925 121806 136070 5658 121506135989 46479 121906 136032 1198 122106 136071 8116 122006135990 598 2 121906 136033 103853 122006 136072 1427 5 121806135991 60000 121806 13603.4 40000 121806 136073 2100 122006135992 175[37121806 136035 02796 121806 136074 4794000 122706135993 16998 122206 136036 52020 121806 136076* 500000 121506135994 881 6 121906 136037 108848 121806 136077 [36340 121506135995 3776763 121506 136038 144018 121806 136078 129514 122606135997:11: 940 O 121506 136039 18500 121906 136079 159076 121906135998 14138 121906 136040 6363 122206 136080 311200 122806135999 17763 121506 136041 52000 121906 136081 2055579 121406136000 181 42 122106 136042 160213 122606 136082 5600 122706136001 3900 122706 136043 123329 122106 136083 60801 121506136002 271875 121506 136044 12500 121806 136084 22212 121806136003 54000 122606 136045 698117121906 136085 288 8 121806136007:11: 222 00 122006 136046 2121 1 121506 136086 1376 7 121806136008 17913 122606 136047 21402 121406 136087 125700 122206136009 241470 122006 136048 116253 121906 136088 64400 121806136011:11: "9500 121906 136049 10000 122106 136089 74 9 122106136013:11: 238990 121906 136050 2718 122106 136090 10000 121806136014 15159 121906 136051 23630 121806 136091 127 7 121806

'.__n __..__


~~:J U...'I"'_____ACCOUNT NUMBER

;UMMARY OF ACTIVITYPAID CHECKS OTHER-OEBl CREDITS

6

eXPLANATION OF SPECIAL CODESC = MEMO CHECK NO. CORRECTIONH = HOLDOVERM = MISC. DEBITCR = CREDIT REVERSAL





136092 706788 122006 136140* 5050000 122006 136184 62090 122706136093 4476?2 122106 136141 53805 121906 136186* 5931909 122806136094 19208 121906 136142 IS030B3 121506 136189* 3397264 122206136095 3154 122106 136143 36715 122006 136190 75000 122606136096 50000 121506 136145* 68734 122706 136192* 35695 122706136097 30900 121906 136146 130275 122006 136193 2008603 122606136098 101500 122006 136147 29233 122106 136194 3822750 122806136099 50000 122206 136148 10135 122106 136196* B6200 122806136100 1617 6 122006 136150* 1018513 121906 136200* 60000 122906136101 8586099 121906 136151 18955 121806 136203* 12500 122906136104* 517921 122606 136152 581 5 121506 136210* 7030296 1226061361 07* 33B5005 121906 136153 19899 121806 136213* 4000 122906

136108 939100 122206 136155* 5163158121806 136215* 16950 122806

136114* 408607 122106 136156 59613 122206 136218* 300638 122806

136115 2162708 121906 136157 :2779tl4 122006 136219 11619 122806

136116 113756 121806 136158 538 1 122206 136220 1983 122806

136117 391570 121506 136159 80000 121906 136221 461 122806

136118 336534 121806 136160 970 9 121806 136222 120295 122706

136119 145380 121906 136161 189tlo 121806 136223 16123500 122806136120 149395 122206 136162 18970 121806 136224 149811 122206136121 170681 122006 136163 189tlo 121806 136225 6078 122906136122 tl3600 121406 136164 19600 121806 136226 121719 122606136123 50000 122606 136165 745139 122806 136227 168890 122806136125* 45000 122906 136167* 413122 122706 136228 137446 122206136126 45000 122906 136170* :226882 122706 136229 16252 122606

136127 2851 122806 136172* 1294 122606 136230 19813 122806136129* 172197 1220.06 136173 111200 122906 136232* 8329b3 122906136131* 25000 121806 136174 111200 122906 136233 200000 122906136132 27000 121906 136177* 459825 122606 136234 600000 122906136133 16432 121506 136178 3893 122806 136235 125000 122906136134 69575 121806 136179 50250 122906 136236 163 1 122806136135 3634405 122006 136180 17201 122706 136238* 1416 6 122706136136 68250 121906 136181 15900 122806 136239 10904 4 122806136137 213600 122006 136182 104535 122706 136240 19000 122706136138 470700 122006 136183 82657 122706 136241 298562 122906

.-- .-.---.---.-.---..----.-

SED ON 12-29-2006 CITY OF SAN LEANDRODEPOSITOR'S NAME

.;)~~ u.a "'_____ACCOUNT NUMBER

f'AID CHECKS OTHER DEBITS CREDITS

NTROl GROUP 0

7Z7 608615693

7

eXPLANATION OF SPECIAL CODES {C = MEMO CHECK NO. CORRECTIONH = HOLDOVERM = MISC. DEBITCR = CREDIT REVERSAL

R = CHECK REVERSE(CREDIT)S = STALE DATED CHECK

SC = SERVICECHARGE




136242 47 650 15 122606 136295 26 5 122606 136347 1155 52 122806

136243 144 20 122206 136296 598 122906 136348 84 18 122706

136244 193 94 122606 136298* 2751 B8 122806 136349 2289 ?7 122806

136245 64 51 16 122706 136299 2323 4 122606 136350 32 12 122906

136246 1750 00 122706 136300 228 44 122906 136351 1503 19 122606

136247 250 00 122806 136301 65 78 122606 136352 2'>08 33 122906

136249* 1503 19 122206 136302 1209 00 122606 136353 1333 33 122606

136251* 338 26 122806 136303 2000 00 122606 136355* 701 06 122806

136252 2000 00 122906 136305* 50 00 122706 136360* 159 78 122606

136253 1750 00 122906 136306 254 09 122906 136361 23 378 30 122906

136256* 1166 66 122206 136307 2100 00 122706 136364* 5083 33 122906

136258* 423 00 122806 136309* 119 62 122806 136365 145 90 122606

136259 245 00 122806 136312* 302 50 122806 136366 1078 78 122706

136260 B20 f)6 122606 136314* 2320 00 122206 136368* "DO00 122706

136261 7590 75 122706 136315 84 00 122606 136369 10 88 122206

136262 48 76 122206 136317* 051 50 122706 136372* 6350 16 122706

136265* 147 250 58 122706 136322* 220 55 122706 136373 H6 67 122906

136266 82 37 122906 136324* 450 00 122806 136374 324 00 122606

136270* 609 00 122206 136325 156 Bl 122806 136375 "20 00 122706

136271 '>4730 122606 136326 185 50 122706 136376 141 90 122606

136272 572 80 122806 136327 764 57 122706 136377 173 40 122606

136273 3986 42 122606 136328 1462 50 122906 136378 63 00 122606

136275* 1335 40 122606 136329 250 00 122606 136379 56 "27 48 122606

136276 294 04 122606 136330 24 B3 122706 136380 93 60 122706

136278* 170 14 122606 136331 798 00 122606 136381 /f50 9 122206

136279 1705 9 122806 136332 500 00 122806 136387* 56 /f08 45 122706

136282* 300 00 122806 136333 750 00 122106 136439* 00 000 00 122206

136283 712 25 122706 136334 074 76 122906

136284 236 64 122806 136336* 041 66 122706

136286* 216 2 122606 136338* 1333 33 122906

136288* 84 17 122606 136342* 516 82 122606

136291* 16 66 122806 136343 942 52 122606

136292 315 00 122806 136344 639 01 122606

136293 1141 5 122606 136345 512 43 122806

136294 143 39 122906 136346 463 50 122806

Attachment B

CITY OF SAN LEANDRO INVESTMENT POLICY STATEMENT

- DRAFT-

Legislative History: Approved via: CC Res. 99-142, 9/20/99 CC Res. 2000-121, 7/16/00 CC Res. 2001-214; 12/17/01 CC Res. 2003-144; 05/22/03

San Leandro Investment Policy Statement Page 2 of 13

CC Res. 2004-116; 6/19/04 CC Res. 2005-081; 6/20/05 CC Res. 2006-063; 6/19/06 CC Res. 2007-___; TBD I. Policy Statement The City of San Leandro (City) invests public funds not required to meet current City obligations in compliance with the State of California (State) Government Code and this policy. The City’s overall goal is to invest as close to 100% of these funds as possible to provide the maximum return and security while meeting the City’s daily cash flow needs. As a rule, the City invests in securities having maturities no greater than five (5) years and holds its investment securities until their scheduled maturity dates or until they are called prior to their scheduled maturity dates by the issuing entity. II. Policy Scope This investment policy is applicable to all financial assets of the City of San Leandro; the Community Redevelopment Agency of the City of San Leandro; the City of San Leandro Parking Authority; the San Leandro Public Financing Authority; and the San Leandro Economic Development Agency. These assets are accounted for in the City’s Comprehensive Annual Financial Report in the following funds: ♦ General Fund ♦ Special Revenue Funds ♦ Capital Project Funds ♦ Debt Service Funds ♦ Enterprise Funds ♦ Internal Service Funds ♦ Agency Funds This policy automatically applies to component units and funds subsequently established by the City of San Leandro. III. Delegation of Investment Authority/Prudence California Government Code Section 53646 states that the ultimate responsibility for the prudent investment of public funds rests with the governing body, or City Council. Through City Council resolution No. 94-143 the Council has delegated investment authority to the Finance Director and the Assistant Finance Director. The Finance Director and the Assistant Finance Director are trustees and fiduciaries that shall use the “prudent person” standard in managing the City’s portfolio. They will exercise the same judgement and care which persons of prudence, discretion and intelligence exercise in the management of their own affairs. They will invest not for speculation, but to provide for the safety of principal, the assurance of liquidity and the generation of income. IV. Investment Objectives


The City's cash management system is designed to monitor and forecast revenues and expenditures in order to meet the following objectives: 1. Safety of Principal – Safety of principal is the primary objective of the City’s investment

program. The City invests in a manner that ensures the preservation of the principal value of the portfolio - investing only in securities having the highest quality ratings and little or no risk of default. The City employs diversification to ensure that potential losses on individual securities do not exceed the income generated by the remainder of the portfolio.

2. Liquidity – The City’s investment portfolio will be structured to provide cash from maturing

investments and interest income to meet City operating requirements that can be reasonably anticipated. Since emergency cash needs do arise on occasion, the portfolio will consist primarily of securities with established and active secondary resale markets.

3. Yield or Return on Investment - Yield Return becomes a consideration only after the

safety and liquidity objectives have been met. The City’s investment portfolio shall be designed with the objective of attaining a rate of return throughout budgetary and economic cycles, commensurate with the City’s investment risk constraints and the cash flow characteristics of the portfolio.

V. Investment Criteria The City invests its funds in accordance with the following criteria:

1. Insure that funds not needed for current City obligations are fully invested at all times.

2. Actively manage the portfolio and take advantage of the changing

nature of the economy, the U.S. Government Securities market and the national money market in order to maximize total return.

3. Guarantee that funds are always available when needed. 4. Insure that yield-restricted funds are monitored to ensure compliance

with federal arbitrage rebate requirements. 5. Insure that the specific requirements outlined in the Bond Indentures

of Trust are maintained. VI. Ethics and Conflicts of Interest Officers and employees involved in the investment process will refrain from personal business activity that would conflict with the proper execution of the investment program, or would impair their ability to make impartial investment decisions. Employees and investment officials will disclose to the Finance Director any material interests in financial institutions that conduct business with the City of San Leandro. Furthermore, they will disclose any large personal financial/investment positions that could be related to the financial performance of the City,


particularly at the time of investment purchases and sales. Investment officers and employees who fail to comply with this disclosure requirement will be subject to administrative action. VII. Authorized Financial Dealers and Institutions The Finance Director will maintain a list of approved security brokers and dealers, selected based on creditworthiness and industry standing that are authorized to provide investment services in the State of California. These may include “primary” dealers and/or regional dealers that qualify under Securities and Exchange Commission Rule 15C3-1 (uniform net capital rule). Deposits of City funds will be made only to qualified public depositories as established by State law. Prior to doing business with the City, investment brokers and dealers must provide the Finance Director the following: ♦ A copy of their most recent audited financial statements. ♦ Proof of registration with the State of California. ♦ Written certification that the firm has read and will comply with all provisions of this

investment policy statement. ♦ Signed contractual agreement(s). The Finance Director will conduct an annual review of the financial condition and business practices of authorized broker/dealers at the end of each fiscal year. VIII. Authorized and Suitable Investments No investment shall be made in any security that has a remaining term to maturity in excess of five years unless City Council has granted express authority to make the investment either specifically or as part of an approved investment program. Eligible Local Institutions must have received an overall Community Reinvestment Act (CRA) rating of at least “satisfactory” on its most recent evaluation by the appropriate federal financial agency to receive deposits from the City of San Leandro. This applies to banks, savings and loans, and credit unions. The city’s investment portfolio may include the following instruments: Negotiable Certificates of Deposit (CD’s) issued by a local bank or savings and loan institution. Certificates of Deposit will either be insured by the Federal Deposit Insurance Corporation (FDIC) or be fully collateralized by delivery to a third-party custodian. Securities pledged as collateral shall have a market value of at least 110% of the value of all deposits. Purchases of these instruments may not exceed 30% of idle funds. Securities of Federal Government Agencies such as the Federal Farm Credit Bank (FFCB), the Federal Home Loan Bank (FHLB), the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC), or any other U.S. government agency. U.S. Treasury Bills, Notes and Bonds or those for which the full faith and credit of the United States is pledged for the payment of principal and interest.


The State of California Local Agency Investment Fund (LAIF). The City may deposit up to $40 million in each City/Agency account. Banker’s Acceptances with maturities no longer than 180 days. No more than 30% of idle funds may be invested in the banker’s acceptances of a single bank. The bank must have an “A” or prime rating from Moody’s Investor’s Services (Moody’s) or Standard and Poor’s (S&P). The total investment in banker’s acceptances may not exceed 40% of idle funds. Commercial Paper having a "prime quality" rating by S&P (A-1) and Moody's (P-1) issued by any domestic corporation having assets in excess of $500 million and a minimum rating of “AA” for its debt other than commercial paper. Maturities of individual commercial paper securities cannot exceed 270 days or represent more than 10% of the issuer’s outstanding commercial paper. Total portfolio purchases shall not exceed 15% of idle funds or 30% if the average maturity of commercial paper holdings does not exceed 31 days. No more than 25% of the portfolio can be invested in commercial paper. Medium-Term Corporate Notes with a maximum maturity of five years and issued by corporations organized and operating in the United States or by depository institutions licensed by the United States, any state or operating within the United States. Securities issued by corporations must be rated “AA” or better by S&P and Moody’s. Purchases may not exceed 10% 30% of idle funds at the time of purchase. Repurchase Agreements that comply with statutory requirements having a term of one year or less, supported by a master repurchase agreement with the bank or dealer, and fully collateralized by delivery to a third-party custodian. Holdings cannot exceed 20% of idle funds. Reverse Repurchase Agreements that comply with statutory requirements and are fully collateralized by delivery to a third-party custodian. The maximum term for reverse repurchase agreements is 92 days. The proceeds of reverse repurchase transactions must be invested in securities having maturities shorter than or equal to the term of the underlying agreement. Reverse repurchase agreements cannot exceed 20% of idle funds. Passbook Savings Accounts in the form of insured or collateralized time deposits. If collateral is U.S. government securities, the market value must be at least 110% of the deposit. Promissory notes secured by first mortgages or trust deeds used as collateral require a market value of at least 150% of the amount deposited. Mutual Funds consisting of investment securities permitted under Sections 53601 and 53635 of the California Government Code. To be eligible for City investments, companies providing mutual funds shall have either or both of the following: 1. The highest rating provided by not less than two of the three largest nationally recognized

rating services.


2 An investment advisor registered with the Securities and Exchange Commission for not less than five years having investment experience in the underlying securities and with assets under management in excess of $500 million.

The purchase price of the shares will not include any commission that these companies may charge and the net asset value of any shares purchased may not fall below the purchase price. Holdings cannot exceed 20% of idle funds. Other Investment Pools – The City will conduct a thorough investigation of investment pools prior to making an investment. To become eligible, an investment pool will provide the following information to the City: • A description of eligible securities and a written statement of investment policy and objectives. • A description of interest calculation methods, how interest is distributed, and how gains and

losses are treated. • A description of safekeeping procedures and settlement processes, how often securities are

priced, and how often the program is audited. • A description of who are eligible to invest in the program and how often, and any limitations on

deposits and/or withdrawals. • A schedule for receiving statements and portfolio listings. • Any policies regarding the use of reserves or retained earnings by the pool. • A fee schedule and a description of how and when fees are assessed. • Any policies regarding the pool’s eligibility for bond proceeds if applicable. Securities Issued by the City of San Leandro and its Agencies generally when they are originally issued. The City may elect to sell or purchase its securities through secondary markets when conditions are favorable. See Appendix A. City of San Leandro Summary of Eligible Investments on pages 8 and 9 for a tabular listing of the restrictions regarding authorized investments. Safekeeping Purchased securities are held in third party safekeeping by the trust department of the City's bank or other designated third party in the City's name and control. All security transactions entered into by the City will be conducted on a delivery-versus-payment (DVP) basis and evidenced by a receipt issued by the safekeeping agent. Collateralization An independent third party with whom the City of San Leandro has a current custodial agreement will always hold collateral. A clearly marked evidence of ownership must be supplied to the City. Internal Control and Review


The Finance Director will establish an annual review process to be conducted by an independent external auditor. The review will provide internal control by assuring compliance with established City policies and procedures.


Performance Standards The portfolio will be structured to obtain a rate of return that reflects the prevailing and historical level of interest rates and the City’s expected cash flow needs. The City employs a passive investment strategy that focuses on safety and liquidity. Given this strategy, the bases used by the Finance Director for benchmark purposes will be the yield on the following safe and liquid investment vehicles: • The State of California Local Agency Investment Fund (LAIF) • The two-year U.S. Treasury Bill • The five-year U.S. Treasury Note Reporting This policy will be reviewed annually with the City Council to ensure compliance with the objectives of safety, liquidity and yield and adherence with applicable laws. The City Council Finance Committee will review and approve all changes to this policy statement prior to submittal to the full City Council for approval. California Government Code Section 53646 requires the Finance Director to submit a quarterly report on the status of the City’s investment portfolio to the City Manager and the City Council within 30 days after the end of the calendar quarter. The report will provide detailed information regarding the type of investments, the amount invested with various institutions, purchase and maturity dates, and interest yield on all investments. The report shall state if the City’s investments are in compliance with this policy and if the City will be able to meet its cash obligations during the next six-month period. The Finance Director, on occasion, will submit monthly reports on the portfolio’s status to the City Manager and City Council that are consistent with the requirements of the State Code. In accordance with AB943, the City will submit a copy of its investment report for the second (October - December) and fourth (April - June) quarters of the fiscal year to the California Debt and Investment Advisory Commission (CDIAC) within sixty (60) days of the end of each respective quarter. The City will submit a copy of this investment policy to CDIAC within sixty (60) days of the end of every calendar year. The City will also submit an updated copy of this policy to CDIAC within sixty (60) days of any City Council-approved amendment to it.


Appendix A. City of San Leandro

Summary of Eligible Investments

Investment Type

Maximum Maturity

Maximum Amount

Other Requirements

Certificates of

Deposit

5 Years

30 % of Portfolio

Market Value of

Collateral at Least 110% of Deposit

U.S. Government Agency Securities

5 Years, Longer

Maturities if Approved by

Council

None

None

U.S. Treasury

Securities

5 Years, Longer

Maturities if Approved by

Council

None

None

State Local Agency Investment Fund

(LAIF)

N/A

$40 Million per Account

None

Bankers Acceptances

180 Days

30 % per Issuer 40% of Portfolio

Minimum Rating of

“A” from Moody’s or S&P

Commercial Paper

270 Days

10% of Issuer’s Paper 25% 15% of Portfolio

30% of Portfolio if Maturity of Holdings is Less Than 31 Days

Prime Quality Rating of “A-1” and “P-1” from

S&P and Moody’s Respectively

Medium Term

Corporate Notes

5 Years

30% 10% of Portfolio

Minimum Rating of “AA” from Moody’s

and S& P

Repurchase Agreements

1 Year

20 % of Portfolio

Master Agreement & Fully Collateralized


Appendix A.

City of San Leandro Summary of Eligible Investments

Investment Type

Maximum Maturity

Maximum Amount

Other Requirements

Reverse Repurchase Agreements

92 Days

20% of Portfolio

Proceeds Must be Invested

in Securities Having Maturities Shorter Than or

Equal to Term of Underlying Agreement

Passbook Accounts

5 Years

None

Minimum of 110%

Collateral if Secured by U.S. Government

Securities, 150% if Secured by Mortgage or

Trust Deed

Mutual Funds

N/A

20% of Portfolio

Highest Rating from at

Least Two Rating Agencies and/or Advisor

with 5 Years of Experience Managing

Assets in Excess of $500 Million

Other Investment Pools

N/A

N/A

Must Provide

Comprehensive Information Prior to City

Investment

City Issued Securities

N/A

N/A

Usually Purchased When Originally Issued


Appendix B. Glossary of Technical Terms

Banker’s Acceptance (BA) – A draft or bill of exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill. Broker – A broker, as opposed to a dealer, brings buyers and sellers together in exchange for an agreed upon commission or fee. A broker is not a principal party to the transaction. Certificate of Deposit (CD) – A time deposit with a specific maturity date and specific interest rate as evidenced by a certificate. Collateral – Securities pledged by a bank or other financial institution to secure repurchase agreements, certificates of deposit and deposits of public monies. Commercial Paper – Negotiable short-term promissory notes issued by larger, well-known corporations. Dealer – A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for its account. Delivery Versus Payment – a method of purchasing securities where the security is delivered to the safekeeping party in exchange for cash payment. Federal Deposit Insurance Corporation (FDIC) – A federal agency that insures bank deposits – currently up to $100,000 per deposit. Federal Farm Credit Bank (FFCB) – A federal government sponsored bank that provides loans and letters of credit that support United States agriculture. Federal Home Loan Banks (FHLB) – Federal government sponsored wholesale banks that lend funds and provide banking services to member commercial banks, thrift institutions, credit unions and insurance companies. Federal Home Loan Mortgage Corporation (FHLMC or “Freddie Mac”) – A federal corporation that provides low cost residential mortgage funds to qualified borrowers. Federal National Mortgage Association (FNMA or “Fannie Mae”) – A federal corporation working under the auspices of the U.S. Department of Housing and Urban Development (HUD). FNMA is the largest single provider of residential mortgage funds in the United States. Liquidity – A measure of how easily an asset can be converted to cash with minimal loss of value. Securities issued by the U.S government and its agencies are highly liquid because they have established and active markets.


Appendix B. Glossary of Technical Terms

Local Agency Investment Fund (LAIF) – A pooled investment fund maintained by the California State Treasurer consisting of deposits from the State and from California political subdivisions. Maturity – The date that the principal or stated value of an investment becomes due and payable. Money Market – The market where short-term debt securities such as treasury bills, commercial paper and banker’s acceptances are issued and traded. Portfolio – A collection of assets (securities, real property, buildings, etc.) held by an investor. Primary Dealer – A group of government securities dealers subject to the informal oversight of the Federal Reserve Bank of New York. Primary Market - The market where investment securities are purchased and sold when they are first issued. Prudent Investor Standard or Prudent Person Rule – An investment standard that requires an investor having trustee or fiduciary responsibility to select securities that would be bought by a prudent person of discretion and intelligence who is seeking capital preservation and a reasonable income. Repurchase Agreement (“Repo”) – An investment transaction where the holder of securities sells the securities to an investor with an agreement to repurchase them for a fixed price on a fixed date. In effect, the buyer lends the seller money for the term of the agreement and the agreement is structured to compensate the buyer for this. Reverse Repurchase Agreement (“Reverse Repo”) – An investment transaction where an investor buys securities from another investor with an agreement to resell them for a fixed price on a fixed date. Safekeeping – A service provided by banks and other financial institutions whereby securities and/or collateral are held for protection and safety. Secondary Dealer - Securities dealers who purchase and sell securities that have been previously issued. Secondary Market – The market where securities are purchased and sold after they have been issued.


Appendix B.

Glossary of Technical Terms Securities and Exchange Commission (SEC) – A federal agency created by congress to protect investors in securities transactions by administering securities legislation. Treasury Bills (T-Bills) – A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months or one year. Treasury Bonds – Long-term coupon-bearing U.S. Treasury securities having initial maturities of more than ten years. Treasury Notes – Medium-term coupon-bearing U.S. Treasury securities having initial maturities of two to ten years. Uniform Net Capital Rule – Securities and Exchange Commission requirement that member brokers and dealers maintain a maximum ratio of indebtedness to liquid capital of fifteen to one. Indebtedness includes all money owed to other entities including loans and commitments to purchase securities. Liquid capital includes cash and other assets easily converted to cash. Yield – The rate of annualized income return on a security, expressed as a percentage of the security’s purchase price.