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HomeMy WebLinkAboutC17-374 Public Trust AdvisorsINVESTMENT ADVISORY AGREEMENT This Investment Advisory Agreement (the "Agreement") is entered into as of 11/15/2017 (the "Effective Date"), by and between Public Trust Advisors, LLC, (Public Trust) a Colorado limited liability company (the "Investment M a n a g e r ") and Eagle County, Colorado, a body corporate and politic (the "Client"). In consideration of the mutual covenants contained in this Agreement, Investment Manager and Client agree as follows: 1. Appointment as Investment Manager. Client appoints Investment Manager, and Investment Manager accepts such appointment, to provide investment advisory services and act as an investment adviser with respect to only the specified assets placed by Client under the Investment Manager's supervision (collectively, the "Account" or "Accounts"). Nothing herein shall preclude Client for placing assets with other or different investment managers or modifying the assets which comprise the Account or Accounts all as determined by Client in its sole discretion. 2. Investment Manager Services. (a) Subject to the Investment Policy Statement (as defined below), the Investment Manager, commencing on the Effective Date, shall provide the services set forth in Exhibit A and as set forth in this Agreement and shall make such recommendations to Client concerning the investment, reinvestment or management of the assets in the Account. The Investment Manager agrees to make such recommendations to the Client as to changes, including the acquisition and sale of securities held, in the Account as the Investment Manager from time to time deems appropriate and permissible under the laws governing this Agreement. Unless otherwise agreed to in writing, the Client will have the sole responsibility for transmitting orders for the Account to the broker/dealer it selects. The Investment Manager will assist Client in seeking competitive bids and offers from primary broker/dealers for each transaction involving the Account. The Investment Manager shall not provide, or otherwise be responsible for, the maintenance of books and records, reporting, audit, tax or other general administrative services with respect to the Account. (b) In furtherance of this Agreement, including but not limited to Section 2(a) above, and except for the express limitations contained herein and in the Investment Policy Statement, Client hereby designates and appoints Public Trust Advisors, LLC, as one of Client's investment managers. 3. Investment Guidelines, Investment Policy Statement. The Investment Manager agrees to provide management advice concerning Client's assets within the Account or Accounts in accordance with the Client's Investment Policy Statement which is attached hereto as Exhibit B. The Investment Policy Statement contains written investment guidelines and restrictions for the management of the Account. Investment Manager agrees to use its best efforts to make investment decisions in accordance, and consistent with, the Investment Policy Statement and applicable Colorado and Federal law. Client may provide the Investment Manager an amended Investment Policy Statement at any time, from time to time, and the Investment Manager will use its best efforts to implement such amended Investment Policy QaVrM Statement as soon as practicable. Notwithstanding the preceding, in no event will the Investment Manager follow any provision of the Investment Policy Statement or any provision of this Agreement that Investment Manager determines would contravene any applicable law, rule, or regulation of any governmental authority or securities exchange to which it is subject; provided that Investment Manager shall give Client prompt written notice of such determination. 4. Custody of Assets. (a) Investment Manager shall not have authority to hold or have custody or have possession of any cash, securities or other properties of Client or assets of the Account or cause Custodian to deliver Assets or pay cash to Investment Manager, other than with respect to Investment Manager directly billing the Account for the fee payable to Investment Manager under this Agreement in accordance with the Investment Advisers Act of 1940, as amended (the "Advisers Act') and Rule 206(4)-2 thereunder or other applicable law. Client shall designate a custodian(s) (the "Designated Custodians") which will be a "qualified custodian" under Rule 206(4)-2 of the Investment Advisers Act of 1940, as amended (the "Advisers Act"). The parties agree that the Designated Custodians shall have the sole responsibility to consummate and settle all purchases, sales, deliveries, receipts and other transactions made with respect to the Account, the collection of all income (including, but not limited to, interest and dividends) and the acquisition and safekeeping of the assets, securities, funds, and other properties comprising the Account. Client agrees not to grant the Investment Manager any additional rights or access to the Account except as specifically set forth in this Agreement. (b) Client agrees to promptly furnish, or to cause the Designated Custodians to promptly furnish, to Investment Manager all data and information Investment Manager may reasonably request to render the services described in this Agreement. Client acknowledges that it receives custodial statements at least quarterly from the Designated Custodians indicating the amount of funds and each asset in the Account at the end of reporting period (which shall be no less frequently than quarterly) and sets forth all transactions of the Account during such period. Client acknowledges it has been advised to reconcile the report from Investment Manager with the statement from Designated Custodians and notify Investment Manager immediately if there are any discrepancies. (c) The Client shall instruct the Designated Custodians to (i) carry out all transactions directed, in writing or electronically, by the Client and not Investment Manager, (i) confirm, in writing or electronically, all completed transactions to the Investment Manager and (ii) cooperate with the Investment Manager in its performance under this Agreement. Investment Manager shall instruct all brokers and dealers executing orders on behalf of the Account (i) to forward to the Designated Custodians and Client copies of all confirmations promptly after execution of transactions, and (ii) that all transactions must be completed using delivery vs. payment (DVP). (d) Exhibit D includes a list of the individuals who are authorized to act on behalf of the Client and which may be modified by written notice from Client to Investment Manager from time to time. The Investment Manager will be fully protected in relying upon any notice, instruction, direction, or communication that it reasonably believes (based upon the most recent notice that has been received by the Investment Manager) to have been executed by an individual who is authorized to act on behalf of the Client. Page 2 of 13 S. Management Fee and Expenses. For the Investment Manager's services to the Client under this Agreement, the Client agrees to pay the Investment Manager an annual fee, in monthly installments, payable on the first day of each month, based on the average daily market value plus accrued interest of the assets under management in the Account (including cash and cash equivalents) and based on the number of days in the month and year for the specified billing cycle. Assets Under Basis 'o(bps) All Assets under 6.0 bps (0.06%) Management with Investment Manager Client will not withhold any taxes from monies paid to the Investment Manager hereunder and Investment Manager agrees to be solely responsible for the accurate reporting and payment of any taxes related to payments made pursuant to the terms of this Agreement. Notwithstanding anything to the contrary contained in this Agreement, Client shall have no obligations under this Agreement after, nor shall any payments be made to Investment Manager in respect of any period after December 31 of any year, without an appropriation therefor by Client in accordance with a budget adopted by the Board of County Commissioners in compliance with Article 25, title 30 of the Colorado Revised Statutes, the Local Government Budget Law (C.R.S. 29- 1-101 et. seq.) and the TABOR Amendment (Colorado Constitution, Article X, Sec. 20). 6. Track Record. The Investment Manager shall have the right to acknowledge Client as its client and use the track record of (i) the Account from the Effective Date until the Termination Date and (ii) the Client's investment assets. During the term of this Agreement and for such period thereafter that Investment Manager continues to show any such track record, and for a period of at least the period shown in any such track period plus six years thereafter, the Client shall make available, and/or cause the Designated Custodians to make available, to the Investment Manager, at the Investment Manager's expense, all information reasonably necessary for the Investment Manager to compile, verify and to use these track records;rop vided such information shall not be unreasonably burdensome to the Client (other than pursuant to the satisfaction of applicable law or regulation). The Investment Manager shall indemnify and hold harmless, including payment of attorney fees and costs, the Client for any claims that arise from the Investment Manager's use of such information. 7. Term and Termination. This Agreement shall be for a one (1) year term from the date of execution and may be amended for additional terms as agreed between the parties in writing. The Agreement shall terminate at the Client's discretion, with or without cause and without penalty therefor, any time provided the Client Page 3 of 13 has provided the Investment Manager at least 30 days' prior written notice or at the Investment Manager's discretion, with or without cause and without penalty any time provided the Investment Manager has provided the Client at least 30 days' prior written notice. As fees are payable monthly, in arrears, the Client will pay to the Investment Manager after any such termination a prorated share of fees due it computed as of the date of termination. 8. Contributions and Withdrawals. The Client shall determine what assets will be transferred to or from the Account from time to time and shall promptly notify the Investment Manager, in writing, of its determinations in this regard, prior to doing so. The Client shall provide the Investment Manager with reasonable written notice of all withdrawals and contributions. 9. Other Clients; Allocation; Other Disclosures. Client acknowledges it has received the Investment Managers' ADV Part II dated March 28, 2017, as amended (the "ADV Part II"). Client acknowledges that the Investment Manager may give advice and take action with respect to other clients that may differ from advice given or the timing or nature of action taken with respect to Client. 10. Brokerage Fees; Account Transactions. As outlined in Client's Investment Policy Statement, Client hereby agrees that Investment Manager shall have full authority and discretion to select brokers, dealers or counterparties through whom any transaction in respect of the Account shall be executed. Investment Manager will seek "best execution," as described more fully in Form ADV Part 2A, for any such transactions. In addition, Client acknowledges that Investment Manager may aggregate trades for Client in accordance with its policies described in Form ADV Part 2A. 11. Client's Representations and Warranties. The Client represents, warrants, and agrees that: (a) the Client's execution, delivery, and performance of this Agreement does not violate or conflict with any agreement or obligation to which the Client is a party or by which the Client or its property is bound, whether arising by contract, operation of law, or otherwise; (b) this Agreement has been duly authorized by all appropriate action of the Client and when executed and delivered will be a legal, valid, and binding agreement of the Client; (c) this Agreement constitutes an arms -length agreement between the Client and the Investment Manager, and the Client understands the method of compensation provided for herein and its risks; (d) it has received and read a copy of the ADV Part II. 12. Investment Manager's Representations and Warranties. The Investment Manager represents, warrants, and agrees that: Page 4 of 13 (a) it is duly incorporated, validly existing, and in good standing (to the extent any representation as to good standing can be made under applicable law) under the laws of its jurisdiction of organization; (b) the Investment Manager's execution, delivery, and performance of this Agreement do not violate or conflict with any agreement or obligation to which the Investment Manager is a party or by which the Investment Manager or its property is bound, whether arising by contract, operation of law, or otherwise; (c) this Agreement has been duly authorized by all appropriate action of the Investment Manager and when executed and delivered will be a legal, valid, and binding agreement of the Investment Manager, enforceable against the Investment Manager in accordance with its terms, and the Investment Manager will deliver to the Client such evidence of such authority as the Client may reasonably require, whether by way of a certified resolution or otherwise; (d) as of the date of this Agreement the Investment Manager is a registered investment adviser under the Advisers Act, and at all times that this Agreement is in effect, the Investment Manager shall be either registered or exempt from such registration. Further, Investment Manager shall immediately notify Client if Investment Manager's registration is suspended or terminated during the term hereof; (e) to the best of Investment Manager's knowledge, neither the Investment Manager nor its affiliates are subject to any order, judgment or decree described in Section 203(e) or (f) of the Advisers Act or has received notice that it is currently under investigation by any regulatory body that could give rise to such an order, judgment or decree; and (f) the foregoing representations and warranties shall be continuing during the term of this Agreement, and if at any time during such term any event occurs which would make any of the foregoing representations and warranties untrue or inaccurate in any material respect, the Investment Manager promptly will notify the Client of such event and of any resulting untruths or inaccuracies. 13. Standard of Care, Indemnification and Insurance. (a) The Investment Manager, its employees, officers, directors, agents or sub -contractors will at all times perform the services and duties called for in this Agreement in a competent, professional manner in accordance with industry standards and applicable law. (b) Investment Manager agrees to faithfully discharge the duties set forth herein and shall indemnify and hold harmless Eagle County, its officers, officials, agents and employees (hereinafter referred to as "Indemnitees" from and against all liabilities, claims, actions, damages, losses, and expenses including without limitation reasonable attorneys' fees and costs, (hereinafter referred to collectively as "claims") from and against any and all claims resulting from the acts, omissions and negligent conduct of Investment Manager or any of its employees, officers, directors, agents or subcontractors with respect to the duties and services to be provided under this Agreement. This indemnity includes any claim arising out of Investment Manager's failure to conform to any federal, state or local law, statute, ordinance, rule, regulation or court decree. It is the specific intention of the parties that the Indemnitees shall, in all instances, except for claims arising solely from the negligent or willful acts or omissions of the Indemnitees, be indemnified by Investment Manager from and Page 5 of 13 against any and all claims. It is agreed that Investment Manager will be responsible for primary loss investigation, defense and judgment costs where this indemnification is applicable. In consideration of the award of this agreement, Investment Manager agrees to waive all rights of subrogation. (c) Investment Manager agrees to provide and maintain at its sole cost and expense the following insurance coverage with limits of liability not less than those stated below. The insurance requirements herein are minimum requirements for this Agreement and in no way limit the indemnity covenants contained in this Agreement. a. Types of Insurance. i. Workers' Compensation insurance as required by law. ii. Commercial General Liability coverage to include bodily injury and property damage and liability assumed under an Insured Contract including defense costs. The policy shall be endorsed to include the following additional insured language "Eagle County, its subsidiary, parent, associated and/or affiliated entities, successors or assigns, its elected officials, trustees, employees, agents and volunteers shall be named as additional insureds with respect to liability arising out of the activities performed by, or on behalf of Investment Manager" Limits of liability shall be not less than $1,000,000 in the general aggregate; $1,000,000 products/completed operations aggregate; $1,000,000 per occurrence, and $1,000,000 personal/advertising injury. iii. Bankers Professional Liability (including errors and omissions liability) or its equivalent. This policy shall cover professional misconduct or lack of ordinary skill for those employees, officers, directors, agents or subcontractors of Investment Manager performing any duties or services under this Agreement. In the event the professional liability insurance required by this Agreement is written on a claims made basis, Investment Manager warrants that any retroactive date under the policy shall precede the effective date of this Agreement; and that either continuous coverage will be maintained or an extended discovery period will be exercised for a period of two (2) years from the time the Agreement ends or is earlier terminated. The insurance shall be in a form and with an insurer or insurers satisfactory to Client, with limits of liability of not less than $10,000,000 per loss and $10,000,000 in the aggregate. In the event the professional liability insurance is on a claims -made basis, Investment Manager warrants that any retroactive date under the policy shall precede the effective date of this Agreement. b. Other Requirements. i. Insurance shall be placed with insurers duly licensed or authorized to do business in the State of Colorado and with an "A.M. Best" rating of not less than ANN. ii. Investment Manager's insurance coverage shall be primary and non- contributory with respect to all other available sources. Investment Manager's policy shall contain a waiver of subrogation against Eagle County. Page 6 of 13 iii. All policies must contain an endorsement affording an unqualified thirty (30) days notice of cancellation to Client in the event of cancellation of coverage. iv. All insurers must be licensed or approved to do business within the State of Colorado and all policies must be written on a per occurrence basis unless otherwise provided herein. V. Investment Manager's certificate of insurance evidencing all required coverage(s) is attached hereto as Exhibit C. Upon request, Investment Manager shall provide a copy of the actual insurance policy and/or required endorsements required under this Agreement within five (5) business days of a written request from Client, and hereby authorizes Investment Manager's broker, without further notice or authorization by Investment Manager, to immediately comply with any written request of Client for a complete copy of the policy. Vi. Investment Manager shall advise Client in the event the general aggregate or other aggregate limits are reduced below the required per occurrence limit. Investment Manager, at its own expense, will reinstate the aggregate limits to comply with the minimum limits and shall furnish Client a new certificate of insurance showing such coverage. vii. If Investment Manager fails to secure and maintain the insurance required by this Agreement and provide satisfactory evidence thereof to Client, Client shall be entitled to immediately terminate this Agreement. viii. The insurance provisions of this Agreement shall survive expiration or termination hereof. ix. The parties hereto understand and agree that the Client is relying on, and does not waive or intend to waive by any provision of this Agreement, the monetary limitations or rights, immunities and protections provided by the Colorado Governmental Immunity Act, as from time to time amended, or otherwise available to Client, its affiliated entities, successors or assigns, its elected officials, employees, agents and volunteers. X. Investment Manager is not entitled to workers' compensation benefits except as provided by the Investment Manager, nor to unemployment insurance benefits unless unemployment compensation coverage is provided by Investment Manager or some other entity. The Investment Manager is obligated to pay all federal and state income tax on any moneys paid pursuant to this Agreement. xi. On insurance policies where Client is named as an additional insured, the Client shall be an additional insured to the full limits of liability purchased by the Investment Manager even if those limits of liability are in excess of those required by this Agreement. xii. The insurance requirements herein are minimum requirements for this Page 7 of 13 Agreement and in no way limit the indemnity covenants contained in this Agreement. 14. Anti -Money Laundering. (a) The Client understands and agrees that the Investment Manager prohibits the investment of funds by any persons or entities that are acting, directly or indirectly, (i) in contravention of any applicable laws and regulations, including anti -money laundering regulations or conventions, (ii) on behalf of terrorists or terrorist organizations, including those persons or entities that are included on the List of Specially Designated Nationals and Blocked Persons maintained by the U.S. Treasury Department's Office of Foreign Assets Control ("OFAC"), available at http:llwww.treas.gov/ofac, as such list may be amended from time to time, (iii) for a senior foreign political figure, any member of a senior foreign political figure's immediate family or any close associate of a senior foreign political figure, unless the Investment Manager, after being specifically notified by the Client in writing that it is such a person, conducts further due diligence, and determines that such investment shall be permitted, or (iv) for a foreign shell bank (as defined in USA PATRIOT Act) (such persons or entities in (i) — (iv) are collectively referred to as "Prohibited Persons").The Client represents, warrants, and covenants that; (i) it is not, nor is any person or entity controlling, controlled by or under common control with it, a Prohibited Person. 15. Agency Transactions. The Client acknowledges that it is aware and understands that the Investment Manager or its affiliates may effect agency transactions between their respective advisory clients, which may include the Account, provided, with respect to any such agency transaction, neither the Investment Manager nor any of its affiliates acts as a broker within the meaning of Section 206(3) of the Advisers Act. The Investment Manager shall obtain Client's advance written approval to effect such agency transaction involving the Account. 16. General Provisions. (a) Notice. Unless otherwise specified herein, all notices, instructions, and any advice in connection with transactions or other matters contemplated by this Agreement shall be deemed to be duly given when received by hand, by email (if confirmed by reply email or by telephone), or by facsimile with confirmation of receipt, as follows: If to the Investment Manager: Public Trust Advisors, LLC 717 17`i' St. Suite 1850 Denver, CO 80202 Phone: (343) 244-0463 Fax: (343) 292-3402 If to the Client: Teak Simonton County Treasurer Eagle County 500 Broadway (Currier Service) Page 8 of 13 Post Office Box 479 (USPS Service) Eagle, CO 81531 Phone: (970) 328-8868 Fax: (970) 328-8879 Either party hereto may, from time to time by notice in writing served upon the other as set forth above designate a different mailing address or a different or additional person to which all such notices or demands thereafter are to be addressed. (b) Governing Law; Jurisdiction. This Agreement will be governed by and interpreted in accordance with the laws of the state of Colorado, without regard to the conflicts of laws principles thereof. The Investment Manager and the Client agree that any dispute, controversy or action, whether equitable or legal, shall be brought in the Eagle County District Court located in Eagle County, Colorado and the parties to this Agreement unconditionally and irrevocably waive any and all jurisdictional venue and convenience objections and defenses that they may have in any such action in either jurisdiction. (c) Severability. Each section of this Agreement and any and every provision therein shall be severable from every other section of the Agreement and any and every provision thereof, and the invalidity or unenforceability of any section or provision by any court shall not affect the validity of any other section or provision of this Agreement and such remaining provisions shall remain and continue to be in full force and effect. (d) Entire Agreement. This Agreement and all attached exhibits and documents which are incorporated herein embodies the entire Agreement of the parties hereto with respect to the subject matter hereof. All prior agreements, understandings, and negotiations (including, without limitation, any memoranda of understanding or letters of intent) are merged herein and superseded hereby. In the event of any conflict between the provisions of this Agreement and any exhibit or attachment hereto or any document incorporated herein, the provisions of this Agreement shall control. (e) Amendment. This Agreement, including the exhibits hereto (with the exception of Client's Investment Policy Statement which may be amended from time to time by Client as set forth in this Agreement), may not be amended unless such Amendment is in writing and signed by the parties sought to be bound. Except as provided herein, no alteration or variation of the terms of this Agreement shall be valid unless made in writing and signed by the parties hereto, and no oral understanding or agreement not incorporated herein shall be binding on any of the parties hereto. (f) Force Majeure. Notwithstanding anything in this Agreement to the contrary, neither party shall be responsible or liable for its failure to perform under this Agreement or for any losses to the Account resulting from any event beyond the reasonable control of such party or its agents, including but not limited to nationalization, expropriation, devaluation, seizure, or similar action by any governmental authority, de facto or de jure; or enactment, promulgation, imposition, or enforcement by any such governmental authority of currency restrictions, exchange controls, levies, or other charges materially impairing the Account's property; or the breakdown, failure or malfunction of any utilities or telecommunications systems, or any order or regulation of any banking or securities industry, including changes in market rules and market conditions materially impairing the execution or settlement of transactions; or acts of war, terrorism, insurrection, or Page 9 of 13 revolution; or acts of God. (g) Waivers. No delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party of any right, power, or privilege hereunder, nor any single or partial exercise of any right, power, or privilege hereunder, preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder. (h) Titles or Headings. Titles or headings are not part of this Agreement, are for convenience of reference only, and shall have no effect on the construction or legal effect of this Agreement. (i) Independent Contractor. The Investment Manager represents and warrants that it is and shall be an independent contractor and shall, at its sole cost and expense, and without any additional compensation (except as provided herein), comply with all applicable laws, rules and regulations, including the payments of all income taxes, social security contributions and other applicable local, state and federal taxes and insurance for Investment Manager, including the Primary Account Manager and its other employees. 0) Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. (k) Additional Documents. The Investment Manager and the Client agree to execute such additional documents, and to perform such further acts, as may be reasonable and necessary to carry out the provisions of this Agreement. (1) Cumulative Remedies. The rights and remedies provided herein are cumulative and are not exclusive of any rights or remedies which any party may otherwise have at law or in equity. (m) Assignment. This Agreement may not be assigned by Client without the prior written consent of the Investment Manager, and this Agreement may not be assigned by the Investment Manager without the prior written consent of the Client, provided (i) the Investment Manager may assign this Agreement to an entity controlled by the Investment Manager or its general partner without the consent of the Client; and (ii) the Client may assign its interests, indirectly or directly, to any entity controlled by Client without the consent of the Investment Manager. Notwithstanding the foregoing, an assignment shall not be made without giving a least 30 days prior written notice to the other party regardless of whether consent to the assignment is required. (n) No Waiver. Nothing in this Agreement shall in any way constitute a waiver or limitation of any rights that Client may have under federal or state securities laws. (o) Cooperation. In order that the Client may be kept informed of the status and activities in the Account, the Investment Manager will take all steps necessary to ensure that each broker/dealer who executes a transaction on behalf of Client shall furnish a copy of the brokerage account confirmation to Client, as well as any periodic statements relating to the Account. In addition, the Investment Manager will notify the Client of any changes in personnel assigned the Account. The Page 10 of 13 Client agrees to notify Investment Manager promptly of any change in the amount of assets in the Account and withdrawal of any funds from the Account. (p) Reports. The Investment Manager agrees to furnish the Client with a comprehensive monthly statement showing a detail of all transactions involving the Account. Such statement shall include the market value of the securities and cash held in the Account, as well as information regarding performance of the Account. Such statement will be furnished to Client within seven (7) business days after the close of each month. (q) No Third Party Beneficiary. Enforcement of this Agreement and all rights and obligations hereunder are reserved solely for the parties, and not to any third party. 17. Prohibitions on Government Contracts. As used in this Section 17, the term undocumented individual will refer to those individuals from foreign countries not legally within the United States as set forth in C.R.S. 8-17.5-101, et. seq. Investment Manager, hereinafter "Consultant" for purposes of this section 17, has any employees or subcontractors, Consultant shall comply with C.R.S. 8-17.5-101, et. seq., and this Agreement. By execution of this Agreement, Consultant certifies that it does not knowingly employ or contract with an undocumented individual who will perform under this Agreement and that Consultant will participate in the E -verify Program or other Department of Labor and Employment program ("Department Program") in order to confirm the eligibility of all employees who are newly hired for employment to perform Services under this Agreement. a. Consultant shall not: i. Knowingly employ or contract with an undocumented individual to perform Services under this Agreement; or ii. Enter into a subcontract that fails to certify to Consultant that the subcontractor shall not knowingly employ or contract with an undocumented individual to perform work under the public contract for services. b. Consultant has confirmed the employment eligibility of all employees who are newly hired for employment to perform Services under this Agreement through participation in the E -Verify Program or Department Program, as administered by the United States Department of Homeland Security. Information on applying for the E -verify program can be found at: http://www.dhs.gov/xprevprot/prpgrams/gc—1 185221678150.shtm C. Consultant shall not use either the E -verify program or other Department Program procedures to undertake pre-employment screening of job applicants while the public contract for services is being performed. Page 11 of 13 d. If Consultant obtains actual knowledge that a subcontractor performing work under the public contract for services knowingly employs or contracts with an undocumented individual, Consultant shall be required to: i. Notify the subcontractor and Client within three (3) days that Consultant has actual knowledge that the subcontractor is employing or contracting with an undocumented individual; and ii. Terminate the subcontract with the subcontractor if within three days of receiving the notice required pursuant to subparagraph (i) of the paragraph (d) the subcontractor does not stop employing or contracting with the undocumented individual; except that Consultant shall not terminate the contract with the subcontractor if during such three (3) days the subcontractor provides information to establish that the subcontractor has not knowingly employed or contracted with an undocumented individual. e. Consultant shall comply with any reasonable request by the Department of Labor and Employment made in the course of an investigation that the department is undertaking pursuant to its authority established in C.R.S. 5-17.5-102(5). f. If Consultant violates these prohibitions, Client may terminate the Agreement for breach of contract. If the Agreement is so terminated specifically, for breach of this provision of this Agreement, Consultant shall be liable for actual and consequential damages to Client as required by law. g. Client will notify the Colorado Secretary of State if Consultant violates this provision of this Agreement and Client terminates the Agreement for such breach. [The remainder of this page is intentionally blank.] Page 12 of 13 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set forth above. Investment Manager: Public Trust Advisors, LLC, a Colorado limited liability company Name: Steve Dixon Title: Managing Director Client: Eagle County, Colorado By and through its Board of County Commissioners LN Name: ]illian H. Ryan Title: Chair Attest By: Regina O'Brien, Clerk to the Board Approved s,o �.,.s,.m,s.oa..wm By: Teak Simonton Page 13 of 13 PUBLIC — ��II�TRus T ADVISORS 71717th Street, Suite 1850 303-295-0777 TEL 855-395-3954 TFREE Denver, CO 80202 303-292-3492 FAx www.publictrustadvisors.com Public Trust Advisors, LLC Firm Brochure Form ADV Part 2A This brochure provides information about the qualifications and business practices of Public TrustAdvisors, LLC. If you have any questions about the contents of this brochure, please contact us at 1-888-398-3984 or by email at: barry.howsden@publictrustodvis ors. cam. The information in this brochure has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority. Additional information about Public Trust Advisors, LLCis also available on the SEC's website at www.adviserinfo.sec.gov. Public TrustAdvisors, LLC's CRD number is: 159189 71717 1h St. Suite 1850 Denver, CO 80202 1-855-395-3954 www. pubI ictrusta dvi so rs.com Registration does not imply a certain level of skill or training. Version Date: 03/28/2017 Item 2: Material Changes This section describes the material changes to Public Trust's Brochure since its annual updating amendment on April 26, 2016. This Brochure contains the following updates: • Types of Advisory Services (Item 4, Part B) has been updated to provide more details on the types of business products offered, including the new product offering of Term Series Investments and Public Trust took over the portfolio management, fund accounting, administrative and transfer agency services for Virginia Investment Pool Trust Fund ("VML"). • Types of Advisory Services (Item 4, Part B) has been updated to include language on reporting on Non -Managed Accounts. • Fees and Compensation (Item 5, Part A) has been updated to include the fee structure associated with VML and the Term Series Investments. Additionally, the Separately Managed Account (SMA) Fees have been modified to be more descriptive on the calculation methodology. • Types of Clients (Item 7) has been updated to denote that the Term Series Investment has a minimum investment amount of $500,000.00. • Methods of Analysis, Investment Strategies, and Risk of Investment Loss (Item 8, Part A) has been updated to include the Term Series Investments as one of the investment strategies. • Brokerage Practices (Item 12, Part B) has been updated to include language on odd lots with small allocations and the possibility of non -discretionary accounts being excluded from block trades. • Brokerage Practices (Item 12, Part E) section on Trade Errors has been added. • Client Referrals and Other Compensation (Item 14, Part B) has been updated for solicitation arrangements as previously Public Trust did not have any arrangements in place but now do. This section now includes the compensation arrangements that can be used for solicitation arrangements. • Other Financial Industry Activities and Affiliations (Item 10, Part B) has been updated to reflect that PT Asset Management, LLC is no longer an SEC registered investment adviser. Form ADV 2A Version- 03/28/2017 Page i Item 3: Table of Contents Table of Contents Item 2: Material Changes Item3: Table of Contents........................................................................................................................ ii Item4: Advisory Business.......................................................................................................................1 Item 5: Fees and Compensation.............................................................................................................4 Item 6: Performance -Based Fees and Side -By -Side Management.........................................................6 Item7: Types of Clients...........................................................................................................................7 Item 8: Methods of Analysis, Investment Strategies, and Risk of ........................................................... 7 InvestmentLoss......................................................................................................................................7 Item 9: Disciplinary Information...........................................................................................................10 Item 10: Other Financial Industry Activities and Affiliations................................................................10 Item 11: Code of Ethics, Participation or Interest in Client Transactions and Personal Trading .......... 11 Item 12: Brokerage Practices................................................................................................................12 Item 13: Reviews of Accounts...............................................................................................................14 Item 14: Client Referrals and Other Compensation..............................................................................15 Item15: Custody...................................................................................................................................15 Item 16: Investment Discretion.............................................................................................................16 Item 17: Voting Client Securities (Proxy Voting)...................................................................................16 Item 18: Financial Information..............................................................................................................16 Form ADV 2A Version: 03/28/2017 Page ii Item 4: Advisory Business A. Description of the Advisory Firm Public Trust Advisors, LLC is a Limited Liability Company organized in the state of Colorado. This firm has been in business since September of 2011, with offices in 8 states including CA, CO, CT, FL, NM, NY, OH and TX. The principal owners are Thomas D Jordan, Gregory S Wright, Randy S Palomba, Thomas N Tight, John F Grady and Chris M. DeBow. Public Trust Advisors, LLC (hereinafter "Public Trust") may from time to time utilize the services of a third party in a sub -advisory capacity to provide certain services to its clients, including, but not limited to, arbitrage rebate compliance services. In these cases, Public Trust will obtain written permission from the client and ensure the client receives all required disclosure information regarding the sub -adviser. Public Trust will continually monitor the services provided by the sub -adviser. B. Types of Advisory Services Public Trust offers the following services to advisory clients: Investment Advisory Services Public Trust offers investment advisory services predominantly to state and local U.S. government entities, non-profit corporations and charitable organizations. Service Product Offerings: • Separately Managed Accounts {SMA} - These services are provided on either a discretionary or non -discretionary basis, depending upon each Client's needs and requirements and subject to the written investment guidelines provided by each Client. The investment guideline information provided by each Client, together with any other information re lati ng to t he Client's overall investment requirements ("Investment Policy Statement"), will be used by Public Trust to determine the appropriate investment strategy for each client portfolio. • Local Government Investment Pools (LGIP) - These services are provided to individual Participants within each respective LGIP on a discretionary basis, subject to each LGIP's written investment guidelines. These guidelines together with any other information relatingto the LGIP's overall investment requirements ("Investment Policy Statement"), will be used by Public Trust to determine the appropriate investment strategy far each client portfolio. LGIP's managed by Public Trust are: Colorado Local Government Liquid Asset Trust ("COLOTRUST"), Michigan Cooperative Liquid Assets Securities System ("Michigan CLASS"), New York Cooperative Liquid Assets Securities System ("NYCLASS"), Texas Cooperative Liquid Assets Securities System Trust ("Texas CLASS"), Florida Form ADV 2A Version: 03/28/2017 Page l Cooperative Liquid Assets Securities System ("FLCLASS"), Virginia Investment Pool Trust Fund ("VML") and TrustlNdiana. • Term Series Investments. These services are provided on a discretionary basis to Participants within certain LGIP's. Term Series investments adhere to the Investment Policy Statements of the respective LGIP and have an investment minimum. Public Trust does not assume any responsibility for the accuracy of the information provided by a Client and is not obligated to verify any information received from a Client. Under all circumstances, Clients should promptly notify Public Trust in writing of any changes to their Investment Policy Statement. In the event that a Client notifies Public Trust of changes to its Investment Policy Statement, Public Trust will review such changes, perform a compliance verification to identify any non-compliant securities, and implement any necessary revisions or remedial actions to the Client's portfolio. Public Trust invests Client assets in fixed income securities. Please refer to Item 8 for additional information about Public Trust's methods of analysis, investment strategies, and their associated risks. Administrative and TransferAgency Services Public Trust provides administrative and transfer agency services to the LGIP's of COLOTRUST, Michigan CLASS, NYCLASS, Texas CLASS, TrustlNdiana, Louisiana Asset Management Pool ("LAMP"), FLCLASS and VM L. Services provided include, but are not limited to, the maintenance of Participant records, transactions and account balances; and money movements based on client requests. Fund Accounting Services Public Trust provides fund accounting services for COLOTR UST, Michigan CLASS, NYC LASS, Texas CLASS, TrustlNdiana, LAMP, FLCLASS and VML., Services provided include, the daily accounting of assets, income earned and expenses incurred to derive a daily Net Asset Value {NAV} and a daily dividend rate to be paid to Participants. Additional services provided are annual financials and Board reports. Consulting Services Public Trust also provides investment related consulting services to clients. Consulting services may include the following: • Request for proposal {RFP} creation and implementation. • Review of investment portfolio{s} and investment policies. • Review of organization structure and functions regarding the investment activities. • Review of investment compliance with applicable state and internally imposed requirements. Form ADV 2A Version: 03/28/2017 Page 2 • Future investment planning strategies and implementation analysis and recommendations. • Broker/Dealer selection assistance. • Banking institution selection assistance. • Investment risk analysis. Nan -Managed Account Services Upon discretion and final approval by Public Trust, some clients may be permitted to establish one or mare non -managed accounts for the purposes of client reporting. These accounts do not receive ongoing supervision and monitoring services like those provided to accounts through our Investment Advisory Services described above. Public Trust does not make any investment recommendations and will not monitor specific securities or general portfolios for these accounts. The primary purpose far this service is to include non -managed accounts awned by the client in the performance reports provided by Public Trust to certain clients. Although we do not provide on-going management services or specific investment recommendations for these accounts, non -managed accounts will be included in the performance reports that are prepared and provided to clients. Clients are solely responsible for initiating the purchase and sale of securities held in non -managed accounts. Therefore, clients with non -managed accounts, and not Public Trust or any of its employees, will have the exclusive responsibility for the performance and monitoring of the underlying securities that are purchased for, or held, in a non -managed account. Public Trust does not currently charge a fee far this service. However, clients will be required to enter into a written agreement with Public Trust, and they will be provided a copy of this disclosure brochure prior to establishing a non -managed account. C. Client Tailored Services and Client Imposed Restrictions Public Trust offers the same suite of services to all of its SMA clients. However, specific client financial plans and their implementation are dependent upon the client Investment Policy Statement which outlines each client's current investment objectives (income, tax levels, and risk tolerance levels) and is used to construct a client specific plan to aid in the selection of a portfolio that matches restrictions, needs, and targets. At the beginning of the client relationship, Public Trust contacts the client to gather and discuss information regarding their overall investment objectives and guidelines. Where applicable, an Investment policy is requested from the client and utilized to tailor the investments and objectives of the portfolio. From there we assist the client in determining the investment strategy or strategies that are best suited to meet the client's needs and objectives. Once a client has selected an investment strategy or strategies, we provide continuous supervision and management of the assets. Clients are responsible for informing us of any changes to their investment objectives and /or restrictions. Clients may not impose restrictions in investing in certain securities or types of securities in accordance with theirvaIues or beliefs. Form ADV 2A Version: 03/28/2017 Page 3 D. Wrap Fee Programs A wrap fee program is an investment program where the investor pays one stated fee that includes management fees, transaction costs, fund expenses, and any other administrative fees. Public Trust does not participate in any wrap fee programs. E. Amounts Under Management As of February 28, 2017, Public Trust had discretionary assets under management in the amount of $21,594,727,300 and non -discretionary assets under management in the amount of $3,148,170,276. In addition, Public Trust offers fund accounting, administrative, and transfer agency services to one LGIP with respect to assets in the amount of $1,521,320,947. Item 5: Fees and Compensation A. Fee Schedule Loco] Government Investment Pool (LGIP) Fees LGIP account fees are calculated using one of the following methods: (Previous Closed Period's Net Asset Value) The net assets of the previous closed period (i.e. Thursday's net asset figure is utilized as the basis for the fee calculation for Friday, Saturday and Sunday. This methodology holds true for holiday days as well days that fall on a Monday through Friday) will be multiplied by the applicable fee rate{s} and divided by 365 or 366 days in the event of a leap year to equal the daily Fee accrual. (Current Day's Shares Outstanding) The current day's shares outstanding will be multiplied by the applicable fee rate{s} and divided by 365 or 366 days in the event of a leap year to equal the daily Fee accrual. For weekend days and holidays, the shares outstanding for the previous business day will be utilized for the calculation of the fees. (Ending Market Value of the Net Assets excluding accrued interest and accrued expenses) The ending market value of the net assets {excluding accrued interest and accrued expenses} of the previous business day {closed period} (i.e. Thursday's net asset figure is utilized as the basis for the fee calculation far Friday, Saturday and Sunday. This methodology holds true for holiday days as well days that fall on a Monday through Friday) will be multiplied by the applicable fee rate{s} and divided by 365 or 366 days in the event of a leap year to equal the daily Fee accrual. (Ending Market Value of the Net Assets excluding accrued interest and accrued expenses) The ending market value of the net assets (excluding accrued interest and accrued expenses) of the 15" day and last calendar day will be multiplied by the applicable fee rate{s} and divided by 365 or 366 days in the event of a leap year and multiplied by the number of days in the semi-monthly period to equal the monthly accrual. Form ADV 2A Version: 03/28/2017 Page 4 Fees may be tiered or at a fixed rate depending on the Agreement for the specific LGIP. Fees may be charged up to an annual rate of 0.15%. Fees paid to Public Trust for the LGIP accounts cover portfolio management (where applicable), fund accounting, administrative and transfer agency services and can cover various auxiliary expenses, including but not limited to, legal, audit, and board expenditures. These fees are payable on a monthly basis by the client to Public Trust. Certain agreements between Public Trust and the Board of Trustees of the LGIP may allow for fees to be waived. Fees maybe waived or abated at anytime, or from time to time, at the sale discretion of Public Trust. Any such waived fees may be restored by the written agreement of the Board of Trustees. Term Series Investment Fees Term series Investment fees are based on the original principal amount invested by the Participant up to 0.15% (annualized). Fees are automatically withdrawn from the initial investment. Public Trust may waive fees without Board of Trustee approval. Early withdraw penalties will be assessed. Separately Managed Account {SMA} Fees SMA account fees are calculated using ane of the following methods: • average market value • average market value plus accrued interest • average monthly book value of the underlying net assets under management • ending market value for the month or quarter or per portfolio Fees will be calculated based on the number of days in the month or quarter of the billing period. Fees may be based on the number of the days in the year, (lea pyea r, 366 days) or at a fixed basis of 365 days. Fees may be prorated if the billing period is not a full monthly or quarterly period. Fees may be charged at a fixed rate, tiered rate structure or a fixed dollar amount per billing period, based on the terms of the Investment Advisory Agreement. Certain Agreements cap fees at a maximum amount per quarter or year. Public Trust can also impose a minimum fee of up to $1,000 per month in accordance with the Agreement. Certain states impose taxes for doing business in that state. These taxes may be collected in addition to the fees associated with services provided by Public Trust. Overall, fees are based upon the needs of the client and complexity of the situation, agreed to in writing with the client and evidenced in the final fee schedule of the executed Agreement. Fees are invoiced to the client and are paid either monthly or quarterly in arrears. Clients may terminate their contracts per the terms of their Agreement with Public Trust. Because fees are charged in arrears, no refund policy is necessary. If the Agreement is terminated by either the client or Public Trust prior to the end of a billing period, fees shall be prorated to the effective date of termination. Annual fees can be up to 0.30%, depending on a number of factors, including but not limited to, the amount of assets being managed. Fees will be collected via check, Automated Clearing House (ACH), bank wire, or paid Form ADV 2A Version: 03/28/2017 Page 5 directly from the client's custodian account(s). Fees associated with Public Trust services are negotiated individually with each client. Consulting Services Fees Payment received by Public Trust providing consulting services to clients is based on the scope of work to be performed, the time frame of the work, and complexity of the work to be completed. These fees are generally charged at a fixed rate. Fees may be charged based on a percentage of net assets or at an hourly rate. All fees charged to clients are fully described in the Investment Advisory Agreement between the client and Public Trust. The firm may from time to time charge a fixed rate for services. The amount is negotiable and depends on the extent of services required and is mutually agreed to, in writing, by the Client and Public Trust. B. Other Fees and Expenses Clients should understand that the advisory fees described herein may not include certain charges imposed by third parties such as custodial fees and expenses. Client assets may also be subject to (as applicable) transaction costs, retirement plan administration fees, odd-lot differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions. These fees and expenses are separate from and in addition to the fees charged by Public Trust. Accordingly, each Client should review all applicable fees, to fully understand the total amount of fees to be paid by the Client and to thereby evaluate the advisory services being provided. C. Prepayment of Fees Not Applicable. D. Outside Compensation for the Sale of Securities to Clients Neither Public Trust nor its supervised persons accept any compensation forthe sale of securities or other investment products, including asset-based sales charges or services fees from the sale of mutual funds. Item 5: Performance -Based Fees and Side -By -Side Management Public Trust does not charge or accept performance-based fees or other fees based on a share of capital gains on or capital appreciation of the assets of a client. Form ADV 2A Version: 03/28/2017 Page 6 Item 7: Types of Clients Public Trust offers investment advisory services predominantly to state and local U.S. government entities, non-profit corporations and charitable organizations. Public Trust investment advisory clients generally include state and municipal governmental entities, non-profit corporations including hospitals, schools, colleges and cultural institutions that have raised funds through the issuance of tax exempt debt obligations Minimum Account Sire Currently, Public Trust has only one product that has a minimum account investment. The Term Series minimum investment account amount is $500,000.00. Public Trust evaluates all other accounts on a case by case basis. Item 8: Methods of Analysis, Investment Strategies, and Risk of Investment Loss A. Methods of Analysis and Investment Strategies Methods of Analysis Public Trust's methods of analysis include fundamental and technical analysis. • Fundamental analysis - Involves the evaluation of a security that attempts to measure its intrinsic value by studying related economic, financial and other qualitative and quantitative factors. • Technical analysis - Involves the examination of past market data such as prices and the volume of trading, which may provide an estimate of the future value of a security. Investment Strategies Public Trust has five (5) investment strategies with different investment objectives as outlined below. Money Market - This strategy is offered only to LGIP's emphasizing convenient short-term investment opportunities carefully chosen to optimize interest earnings while at the same time maximizing safety and liquidity. Short-term, high quality fixed income securities are utilized due to their minimal credit and volatility risk with the objective of maintaining a constant $1.00 net asset value. Typically, this strategy can invest in U.S. Treasury and Agency securities, commercial paper, repurchase agreements and bank deposits, certificates of deposit and corporate notes with a weighted average maturity (WAM) to reset of 60 days and WAM to final of 90-120 days. Form ADV 2A Version: 03/28/2017 Page 7 Enhanced Cash - The overall objectives are to preserve capital while providing high current income with a high degree of liquidity and lower excess risk than shortterm benchmarks. Short- term, high quality fixed income securities are utilized due to their minimal credit and volatility risk. Generally, the weighted average maturity of the investments in this strategy can range from six to eighteen months. Typically, this strategy invests in U.S. Treasury and Agency securities, commercial paper, short-term corporate notes and bonds, and municipal bonds. Core Assets- The overall objectives are to provide a steady stream of income with longer-term capital appreciation. High quality fixed income investments are utilized to ensure minimal credit and volatility risk. This strategy involves active management of duration, sector and security selection. Common benchmarks for this strategy can be the Merrill Lynch 1-3 and 1-5 U.S. Treasury & Agency Indexes or as specified in the client's investment policy. Typically, this strategy invests in U.S. Treasury and Agency securities as well as medium-term corporate and municipal bonds. Bond Proceeds - For portfolios where there are liability -driven investment considerations, such as clients whose portfolios are funded with bond proceeds that are utilized to make payments associated with certain projects, we recommend securities specifically matched to meet appropriate draw schedules and we modify the portfolio as the schedule changes or as investment opportunities present themselves. Term Series Investments— The Term Series Investment is designed to complement the daily liquidity of the underlying LGIP by offering Participants the opportunity to invest in fixed -term securities with maturities ranging between 90 and 365 days. A projected dividend rate is determined when investments are executed for each Term Series and is declared and paid on the agreed upon maturity date. Each Term Series Investment is owned by that specific Participant within the LGIP. The permissible investments for the Term Series will mirror the underlying permissible investments of the LGIP. Term Series accounts seek to return all invested principle on the selected maturity date. Early withdrawals from Term Series Investments may result in penalties. B. Material Risks Involved Investing involves risks, including possible loss of principal, which clients would have to bear. The investment decisions made by Public Trust for clients are subject to certain risks, and such decisions may not always be profitable. Public Trust does not guarantee returns or performance against stated benchmarks. Past performance is not aguarantee of future results. The following is a summary of common risks associated with investing in fixed-income securities. Interest Rate Risk - A bond's price and yield share an inverse relationship. Interest rate risk may change a bond's value due to a change in the absolute level in interest rates, the spread between two rates or a shift in the yield curve. The actual degree of a bond's sensitivity to changes in interest rates depends on various characteristics of the investment such as coupon and maturity. Form ADV 2A Version: 03/28/2017 Page 8 Credit Risk - The risk that a bond issuer may fail to make payments for which it is obligated. Public Trust focuses on an issuer's financial condition to gauge its ability to make payments of interest and principal in a timely manner. Credit risk is also gauged by quality ratings organizations such as Moody's and Standard & Poor's. Liquidity Risk - The degree to which an investment can be sold at or near it's fair value. The size of a bond's market, the frequency of trades, ease of valuation and issue size impact liquidity risk. Market Risk - The risk that the value of securities awned may go up or dawn sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries. Issuer Risk - The risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer's goods or services. Default Risk - The risk that a bond issuer {or counterparty} will default, by failing to repay principal and interest in a timely manner. The market value of bands will generally fluctuate inversely with interest rates and other market conditions prior to maturity and will equal par value at maturity. Interest rates for bonds may be fixed at the time of issuance, and payment of principal and interest may be guaranteed by the issuer and, in the case of U.S. Treasury obligations, backed by the full faith and credit of the U.S. Treasury. Since U.S. Treasury bonds have longer maturities, the market value of U.S. Treasury bonds will generally fluctuate more than U.S. Treasury bills. Public Trust generally seeks investments that do not involve significant or unusual risk beyond the scope of the domestic high-grade fixed income universe. Public Trust believes that the common risks involved with investing in fixed income securities as outlined above can be mitigated by prudently diversifying a portfolio's holdings. Public Trust also manages these portfolio holdings in concert with the client's individual investment policy and tolerances. C. Risks of Specific Securities Utilized Public Trust generally seeks investment strategies that do not involve significant or unusual risk beyond that of the general domestic and/or international band markets. • Treasury Inflation Protected/inflation Linked Bonds: The Risk of default on these bonds is dependent upon the U.S. Treasury defaulting (extremely unlikely); however, they carry a potential risk of lasing share price value, albeit rather minimal. • Fixed Income is an investment that guarantees fixed periodic payments in the future that may involve economic risks such as inflationary risk, interest rate risk, default risk, repayment of principal risk, etc. Form ADV 2A Version: 03/28/2017 Page 9 • Debt securities carry risks such as the possibility of default on the principal, fluctuation in interest rates, and counterparties being unable to meet obligations. • Short term trading risks include liquidity, economic stability and inflation. Past performance is not aguarantee of future returns. Investing in securities involves a risk of loss that you, as a client, should recognize. Item 9: Disciplinary Information A. Criminal or Civil Actions Neither Public Trust nor any of its employees have been subject to regulatory disciplinary action. B. Administrative Proceedings There are no administrative proceedings to report. C. Self-regulatory Organization (SRO) Proceedings There are no self-regulatory organization proceedings to report. Item 10: Other Financial Industry Activities and Affiliations A. Registration as a Broker/Dealer or Broker/Dealer Representative Neither Public Trust nor any of our management persons are registered, or have an application pending to register, as a broker-dealer or a registered representative of a broker-dealer. Public Trust does not recommend or select other investment advisers for clients in exchange for compensation from those advisers. Public Trust maintains two affiliated entities; 1) PT Asset Management, LLC, a wholly owned subsidiary under common control, and 2) PT Advisors, LLC, a limited liability company organized under the laws of Colorado and registered to do business in Colorado as well as additional states. Each of these entities maintains separate client agreements for each respective entity. B. Registration as a Futures Commission Merchant, Commodity Pool Operator, or a Commodity Trading Advisor Neither Public Trust nor its representatives are registered as or have pending applications to become a Futures Commission Merchant, Commodity Pool Operator, or a Commodity Trading Advisor. Form ADV 2A Version: 03/28/2017 Page 10 C. Registration Relationships Material to this Advisory Business and Possible Conflicts of Interests Neither Public Trust nor its representatives have any material relationships to this advisory business that would present a possible conflict of interest. D. Selection of Cit her Advisers or Managers and How This Adviser is Compensated for Those Selections All client assets are managed by Public Trust. The firm does not select or utilize third party managers or other advisers. Item 11: Code of Ethics, Participation or Interest in Client Transactions and Personal Trading A. Code of Ethics Public Trust maintains a policy of strict compliance with the highest standards of ethical business conduct and the provisions of applicable federal securities laws, including rules and regulations promulgated by the U.S. Securities and Exchange Commission. Public Trust has adapted a written Code of Ethics that covers the following areas: Statement of General Policy, Access Persons, Chief Compliance Officer ("CCO") Designee, Standards of Business Conduct, Protecting the Confidentiality of Client Information, Social Media, Prohibition Against Insider Trading, Preclearance, Personal Securities Transactions, Reporting Procedures, Participation in Affiliated Limited Offerings, Gifts & Entertainment, Political Contributions, Covered Associates, Rumor Mongering, Whistleblower Policy, Reporting of Violations and Sanctions, Records, and Acknowledgement. Our Code of Ethics is available free upon request to any client or prospective client. B. Recommendations Involving Material Financial Interests Public Trust does not recommend that clients buy or sell any security in which a related person to Public Trust or Public Trust has a material financial interest. C. Investing Personal Money in the Same Securities as Clients Public Trust does not recommend that clients buy or sell any security in which a related person to Public Trust or Public Trust has a material financial interest. D. Trading Securities At/Around the Same Time as Clients' Securities On infrequent occasions, aur personnel may buy or sell a security for their awn accounts, which coincidentally is being purchased or sold for the accounts of our clients. The fixed-income securities Public Trust recommends far purchase and sale are of the type which the Securities and Exchange Commission has expressly recognized as presenting little opportunity for the type of Form ADV 2A Version: 03/28/2017 Page l l improper trading which compliance with the Code of Ethics reporting requirements is designed to uncover. As noted above, whenever aur personnel act in a fiduciary capacity, we will endeavor to consistently put the client's interest ahead of the firm's. Item 12: Brokerage Practices A. Selection Criteria and Best Execution As a fiduciary, Public Trust has an obligation to use its best efforts to seek to obtain the best available price and mast favorable execution given the circumstances with respect to all portfolio transactions placed by Public Trust on behalf of aur clients. This process is commonly referred to as "best execution". As part of aur best execution process Public Trust evaluates broker-dealers on a variety of criteria, including, but not limited to: {i} capital strength and stability, {ii} execution capabilities, {iii} trading expertise in fixed income securities, (iv)inventory of fixed income securities, {v} liquidity, {vi} any transaction costs, and {vii} reliable and accurate communications and settlement capabilities. From the evaluation, Public Trust selects and maintains a list of brokers ("Approved Brokers") that are used for client transaction execution. To help ensure the firm is meeting our best execution obligations, Public Trust performs a periodic (no less than annually) review of our trading practices and executions. B. Order Aggregation and Allocation From time to time Public Trust may determine, based on a variety of reasons, that the purchase or sale of a particular security is appropriate for multiple client accounts. When this happens, we may also determine that it is appropriate in the interest of efficient and effective execution to attempt to execute the trade orders as ane or mare block trades (i.e. aggregate the securities to be traded for each such account into one or more trade orders). These circumstances may, in turn, give rise to actual or potential conflicts of interest among the accounts for whom the security purchase or sale is appropriate, and among the subset of those accounts actually participating in a block trade, especially if the block trade order results in a partial fill. To address these conflicts, Public Trust has adopted policies and procedures regarding allocating investment opportunities and executing block trades to provide an objective and equitable method of allocation so that all clients are treated fairly. The basic objectives of these policies and procedures are as follows: • Public Trust will always allocate investment opportunities among clients' accounts in a fair and equitable manner based on each client's overall investment objectives and strategy, and any restrictions placed on the management of the account; • Public Trust will only aggregate clients'trades when it believes that such aggregations are consistent with its duty to seek best execution for its clients; and Form ADV 2A Version: 03/28/2017 Page 12 • Public Trust will strive to ensure that no single client participating in the block trade would be favored over any other participating client. • To avoid add lots containing small allocations, certain adjustments may be made under certain circumstances. • Nan -Discretionary accounts may or may not participate in block trades due to liquidity, availability and cash flow needs. The Custodian, when applicable, will be chosen based on their relatively law transaction fees and their ability to perform their required duties. The Custodian provides for the safekeeping of client's assets. The choice of Custodian will be subject to periodic review by Public Trust. C. Soft Dollar Considerations Public Trust prohibits the use of third party soft dollar arrangements and has never entered into a soft dollar arrangement. Therefore, our customers are never charged for any soft dollar research. However, during the course of doing business we may receive research including unsolicited research from broker dealers. This information is often the same material that is made available to all of their clients and publicly available through the internet. This information is further outlined in Section 28{e} of the Securities and Exchange Act of 1934, and although customary and permitted, could possibly be deemed as an implied economic benefit. Accordingly, Public Trust has adopted written policies and procedures regarding trading and brokerage selection. The firm performs periodic reviews of all trading practices to help ensure that transactions are executed in the best interest of each individual client. D. Directed Brokerage In certain circumstances, Public Trust may accept written direction from a client regarding the use of a particular broker-dealer to execute some or all transactions for the client. When that happens, the client has usually negotiated terms and arrangements for the account with that broker-dealer, and Public Trust will not seek better execution services or prices from other broker- dealers. In addition, depending on the arrangement, Public Trust may not be able to aggregate a directed brokerage client's transactions with other Public Trust client transactions far the same security and Public Trust. Importantly, Public Trust will have limited ability to ensure the broker- dealer selected by the client will provide best possible execution, and thus, the client may pay higher commissions or other transaction costs or greater spreads, or receive less favorable net prices, on transactions for the account than would otherwise be the case. Subject to its duty of best execution, Public Trust may decline a client's request to direct brokerage if, in Public Trust's sole discretion, such directed brokerage arrangements would result in additional operational difficulties and not be in the best interest of the requesting client. Further, from time to time, Public Trust may examine current market information for the benefit of the client in assessingthe cost versus benefit of using a directed broker. Form ADV 2A Version: 03/28/2017 Page 13 E. Trade Errors Public Trust has internal controls for the prevention of trade errors; however, trade errors in client accounts cannot always be avoided. Public Trust strives to correct all trade errors prior to the settlement of any transaction. Public Trust maintains records of all errors it identifies, including the original trade ticket, trade date, broker, client affected, identification of the source of the error, and the results of the error and any correction, including future preventative measures. Consistent with its fiduciary duty, it is the policy of Public Trust to correct trade errors in a manner that is in the best interest of the client. Public Trust will promptly notify the client if a trade error results in a gain or lass to the client. In cases where the client causes the trade error, the client will be responsible for any lass resulting from the correction. Depending on the specific circumstances of the trade error, the client may not be able to receive any gains generated as a result of the error correction. If the error was caused by Public Trust, the client will be made whole and any lass resulting from the trade error will be absorbed by Public Trust. If the error is caused by the broker-dealer, the broker-dealer will be responsible far covering all trade error costs. If an investment gain results from the correcting trade, the gain will remain in the client's account. Public Trust may also confer with clients to determine if the client should forego the gain (e.g., due to tax reasons), Public Trust will never retain any portion of any gains made resulting from trade error corrections or profit in any wayfrom trade errors. If the gain does not remain in the account, Public Trust will donate the amount to charity. Generally, if related trade errors result in bath gains and losses in an account, they may be netted. Item 13: Reviews of Accounts A. Frequency and Nature of Periodic Reviews and Who Makes Those Reviews A member of Portfolio Management will review clients' accounts with regards to their investment policies, risk tolerance levels and allocations at least monthly. B. Factors That Will Trigger a Non -Periodic Review of Client Accounts Reviews may be triggered by material market, economic or political events, or by changes in client's financial situations. C. Content and Frequency of Regular Reports Provided to Clients Custodians have been instructed to provide each client with a monthly statement and/or online access to view their custody statements. These statements detail the assets held and asset values of the client's accounts. Monthly reports and/or online access to client transaction activity, are provided to all SMA clients. These reports and online access disclose such items as portfolio returns, holdings, transactions and issuer concentrations. Monthly reports are provided to the LGIP Participants denoting their balances, transactions and income earned for the period. LGIP Form ADV 2A Version: 03/28/2017 Page 14 custodian statements are provided to the Boards or at a minimum a contact of the LGIP on a quarterly basis. Item 14: Client Referrals and Other Compensation A. Economic Benefits Provided by Third Parties for Advice Rendered to Clients (Includes Sales Awards or other Prizes) Public Trust does not receive any economic benefit, directly or indirectly from any third party for advice rendered to Public Trust clients. B. Compensation to Non -Advisory Personnel for Client Referrals Public Trust has entered into a Solicitation arrangement with a third -party firm pursuant to which representatives of their firm may offer Public Trust's services to the public. Through this arrangement, Public Trust will pay a cash referral fee to the solicitor or soliciting firm based on percentage of revenue collected from the client. The Solicitation Agreement is in writing and complies with the requirements of Rule 206(4)-3 of the Advisers Act. If a client is introduced to Public Trust by a solicitor, Public Trust will pay that solicitor a fee in accordance with the requirements of Rule 206(4)-3 of the Advisers Act and any corresponding state securities law requirements. While the specific terms of each agreement may differ, generally, the compensation will be based upon Public Trust's engagement of new clients and the retention of those clients and is calculated using a varying percentage of the fees paid to Public Trust by such clients. Any such fee shall be paid solely from Public Trust's investment management fee, and shall not result in any additional charge to the client. Each prospective client who is referred to Public Trust under such an arrangement will receive a copy of Public Trust's firm brochure and a separate written disclosure document disclosing the nature of the relationship between the third- party solicitor and Public Trust and the amount of compensation that will be paid by Public Trust to the solicitor. Item 15: Custody SMA clients should receive statements on at least a quarterly basis directly from the qualified custodian that holds and maintains their assets. Clients are urged to carefully review all custodial statements and compare them to any account reports provided by Public Trust. In certain cases, our reports may vary from custodial statements based on accounting procedures, reporting dates, orvaluation methodologies of certain securities. Participants in LGIP accounts receive, at a minimum, audited financial statements within 120 days of LGIP's fiscal year end. Form ADV 2A Version: 03/28/2017 Page 15 Item 15: Investment Discretion For accounts where Public Trust is granted discretionary authority in writing, Public Trust will normally determine (without first obtaining client's permission for each transaction): 1) the type of securities to be bought and sold, 2) the dollar amounts of the securities to be bought and sold, 3) the broker-dealers through which transactions will be executed, 4) whether a client's transaction should be combined with those of other Clients and traded as a "block", and 5) the commission rates and/or transactions casts paid to effect the transactions. For non -discretionary accounts, Public Trust will, for securities purchase or portfolio recommendations, provide suggestions to the client and if agreed upon for investment, will implement the transactions. Item 17: Voting Client Securities (Proxy Voting) Public Trust will not ask for, nor accept voting authority for client securities. Further, the types of securities purchased for clients' accounts are non -equity securities, which typically do not have voting rights. Item 18: Financial Information A. Balance Sheet Public Trust does not solicit prepayment of more than $1,200 in fees per client, six months or more in advance and therefore is not required to provide, and has not provided a balance sheet. B. Financial Conditions Reasonably Likely to Impair Ability to Meet Contractual Commitments to Clients Neither Public Trust nor its management have any financial conditions that are likely to reasonably impair aur ability to meet contractual commitments to clients. C. Bankruptcy Petitions in Previous Ten Years Public Trust has not been the subject of a bankruptcy petition in the last ten years. Form ADV 2A Version: 03/28/2017 Page 16 Eagle County, Colorado Investment Policy INTRODUCTION AND SCOPE Eagle County (the "County"), centrally located in the Rocky Mountains along Interstate 70, is home to the internationally renowned ski resorts Vail and Beaver Creek. The County operates as a statutory county, with a three-member Hoard of County Commissioners. The Board of County Commissioners for Eagle County first adopted the County's Investment Policy on October 13, 1992, by Resolution 92-128. The Board of County Commissioners approved this version of the Investment Policy on &V C�_�� ��a _ 2017 by Consent Agenda. The following Investment Policy addresses the methods, procedures, and practices which must be exercised to ensure effective and judicious fiscal and investment management of the County's funds. This investment Policy shall apply to the investment management of those County funds listed in Annex I of this Investment Policy. All cash, except for certain restricted funds also listed in Annex I of this Investment Policy, shall be pooled for investment purposes. The investment income derived from the pooled investment account shall be allocated to the pooled funds listed in Annex I based upon the proportion of their respective average balances relative to the total pooled balance. INVESTMENT OBJECTIVES The County's funds shall be invested in accordance with all applicable County policies and codes, Colorado statutes, and federal regulations, and in a manner designed to accomplish the following objectives, which are listed in priority order: • Preservation of capital and protection of investment principal. • Maintenance of sufficient liquidity to meet anticipated cash flows. • Diversification to avoid incurring unreasonable market risks. • Attainment of a market value rate of return. DELEGATION OF AUTHORITY In accordance with C.R.S. § 38-10-708, the Board of County Commissioners has granted the County Treasurer (the "Treasurer") authority for conducting investment transactions. The Deputy Treasurer and other authorized persons may be appointed to assist the Treasurer in performing investment management functions. Annex 11 lists the persons authorized to transact investment business for the County. 1 The Treasurer shall establish written administrative procedures for the operation of the County's investment program consistent with this Investment Policy. The Treasurer may engage the support services of outside professionals in regard to her investment program, so long as she Can clearly demonstrate that these services produce a net financial advantage or necessary financial protection of the County's financial resources. Such services may include engagement of financial advisors in conjunction with debt issuance, portfolio management support, special legal representation, third party custodial services, and independent rating services. PRUDENCE The standard of prudence to be used for managing the County's assets is the "prudent investor" rule applicable to a fiduciary, which states that a prudent investor "shall exercise the judgment and care, under circumstances then prevailing, which men of prudence, discretion, and intelligence exercise in the management of the property of another, not in regard to speculation but in regard to the permanent disposition of funds, considering the probable income as well as the probable safety of capital." C.R.S. § 15-1-304, Standard for Investments. The County's overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The County recognizes that no investment is totally riskless and that the investment activities of the County are a matter of public record. Accordingly, the County recognizes that occasional measured losses may occur in a diversified portfolio and shall be considered within the context of the overall portfolio's return, provided that adequate diversification has been implemented and that the sale of a security is in the best long-term interest of the County. The Treasurer and other authorized persons acting in accordance with written procedures and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided that the deviations from expectations are reported in a timely fashion to the Board of County Commissioners and appropriate action is taken to control adverse developments. ETHICS AND CONFLICTS OF INTEREST Elected officials and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or that could impair or create the appearance of an impairment of their ability to make impartial investment decisions. Employees and investment officials shall disclose to the Treasurer any material financial interest they have in financial institutions that conduct business with the County, and they shall subordinate their personal investment transactions to those of the County. 2 The County adheres to the Government Finance Officers Association's Code of Professional Ethics, a copy of which is available online at hiti)://www.gfoa.orL,. AUTHORIZED SECURITIES AND TRANSACTIONS All investments shall be made in accordance with the following Colorado laws: C.R.S. § 1 I- 10.5-101, et seq. Public Deposit Protection Act; C.R.S. § 24-75-60I, et. seq. Funds - Legal Investments; C.R.S. § 24-75-603, Depositories; and C.R.S. § 24-75-702, Local Governments — authority to pool surplus funds. Any revisions or extensions of these sections of the Colorado Revised Statutes will be assumed to be part of this Investment Policy immediately upon being enacted. The Treasurer has further restricted the investment of County funds to the following types of securities and transactions: 1. U.S. Treasury Obligations: Treasury Bills, Treasury Notes, Treasury Bonds, and Treasury Strips with maturities not exceeding five years from the date of trade settlement. 2. Federal Instrumentality Securities: Debentures, discount notes, callable securities, step-up securities, and stripped principal or coupons with maturities not exceeding five years from the date of trade settlement. Subordinated debt shall not be purchased. 3. General Obli ations and Revenue Obli ations of state or local governments with a maturity not exceeding five years from the date of trade _settlement: General Obligations and Revenue Obligations of this state or any political subdivision of this state must be rated at the time of purchase at least A- or the equivalent by at least two nationally recognized statistical rating organizations ("NRSROs"). General Obligations and Revenue Obligations of any other state or political subdivision of any other state must be rated at the time of purchase at least AA - or the equivalent by at least two NRSROs. Exposure to municipal bonds shall not exceed 25% of the portfolio with no more than 5% held in any one issuer. 4. Cg-Wrate Debt: Corporate dent with a maturity not exceeding three years from the date of trade settlement, issued by any corporation or bank organized and operating within the United States. The County hereby further authorizes investments in dollar denominated securities issued by a corporation or bank that is organized and operating within Canada or Australia, not to exceed a portfolio allocation of 10% per each country. The debt trust be rated at least AA-, Aa3 or the equivalent at the time of purchase by at least two NRSROs. Subordinated debt shall not be purchased. The combined exposure to corporate debt, commercial paper and bankers acceptances shall not exceed 50% of the portfolio, with no more than 5% held in any one issuer. 5. Non-negotiable Certificates of Deppsit: Non-negotiable Certificates of Deposits ("CD") in any Federal Deposit Insurance Corporation. ("FDIC") insured state or national bank located in Colorado that is an eligible public depository as defined in C.R.S. § 1.1-10.5-103. CDs that exceed FDIC insurance limits shall be collateralized as required by the Public Deposit Protection Act, The County shall Limit the aggregate value of CDs to no more than 25% of 3 the County's total portfolio, and the amount of CDs that can be purchased from any one financial institution shall be limited to 5% of the County's total portfolio. b. Commercial Paper: Commercial paper with an original maturity of 270 days or less that is rated at least A-1, P-1 or the equivalent at the time of purchase by at least two NRSROs. The aggregate investment in commercial paper, corporate debt and banker's acceptances shall not exceed 50% of the County's total portfolio, and no more than 5% of the County's total portfolio may be invested in the obligations of any one issuer. 7. Eligible Banker's Acceptances: Eligible banker's acceptances with maturities not exceeding 180 days, issued by banks domiciled in the United States and operating under U.S. banking laws. Eligible banker's acceptances shall be rated A-1, P-1 or the equivalent at the time of purchase by at least two NRSRQs. The aggregate investment in banker's acceptances, corporate debt and commercial paper shall not exceed SUclo of the County's total portfolio, and no more than 5% of the County's total portfolio may be invested in the obligations of any one issuer. 8. Repurchase Agreements: Repurchase agreements with a defined termination date of 180 days or less collateralized by U.S. Treasury securities with a maturity not exceeding 10 years. For the purpmse of this section, the term collateral shall mean purchased securities under the terms of the County's approved Master Repurchase Agreement. The purchased securities shall have a minimum market value including accrued interest of lag percent of the dollar value of the transaction. Collateral shall be held in the County's custodial bank as safekeeping agent, and the market value of the collateral securities shall be marked -to -the - market daily. Repurchase Agreements shall be entered into only with dealers who have executed a Master Repurchase Agreement with the County and who are recognized as Primary Dealers by the Federal Reserve Bank of New York or with firms that have a Primary Dealer within their holding company structure. 9. Local Government Investment Pools: Local government investment pools authorized under C.R.S. $ 24-75-742 that qualify as follows: are "no-load" (i.e., no commission or fee shall be charged on purchases or sales of shares); have a constant net asset value of $1.00 per share; limit assets of the fund to securities authorized by state statute; have a maximum stated maturity and weighted average maturity in accordance with .Rule 2a-7 of the Investment Company Act of 1940 and have a rating of AAAm or the equivalent by each NRSRD that rates the pool. 10. _Money Market Mutual Funds: Money market mutual funds registered under the Investment Company Act of 1940 that qualify as follows: are no-load; have a constant net asset value of $1.00 per share); limit assets of the fund to securities authorized by state statute; have a maximum Stated maturity and weighted average maturity in accordance with Rule 2a-7 of the Investment Company Act of 1940; and have a rating of AAAm or the equivalent by each NRSRO that rates the fund. 4 Securities that have been downgraded below minimum ratings described herein may be sold or held at the County's discretion. The portfolio will be brought back into compliance with Investment Policy guidelines as soon as is practical. The foregoing list of authorized securities shall be strictly interpreted. Any deviation from this list must be pre -approved by the Treasurer in writing. INVESTMENT DIVERSIFICATION The County shall diversify its investments to avoid incurring unreasonable risks inherent in over- investing in specific instruments, individual financial institutions, or maturities. Nevertheless, the asset allocation in the portfolio should be flexible depending upon the outlook for the economy, the securities market, and the County's anticipated cash flow needs. The County shall limit investments to a maximum percentage of the portfolio as follows: Security Types (Aggregated when applicable) Max % Portfolio Max %n Per Lssuer Non-negotiable CDs 25% 5% General Obligation and Revenue Obligation Deist 25% 5% Corporate Debt, Commercial Paper and Bankers Acceptances 5017c 5% INVESTMENT MATURITY AND LIQUIDITY Investments shall be limited to maturities not exceeding five years from the date of trade settlement unless otherwise approved in writing by the Treasurer. The maximum weighted average maturity for the portfolio shall be 2.5 years. The County's investable funds will be invested to meet cash flow projections. Core funds (those funds that the County will not need for expected, short-term liabilities) will be identified through cash flow projections so that they can be invested longer -terra when market conditions are favorable for such strategies. In the case of callable securities, the: first call date shall be used as the maturity date if, in the opinion of the Treasurer, there is little doubt that the security will be called on that call date. The final maturity date shall be used to disclose the maximum maturity liability in the County's financial reports. 5 COMPETITIVE TRANSACTIONS With the exception of deposits, all investment transactions shall be conducted competitively with authorized broker/dealers. At least three broker/dealers shall be contacted for each transaction and their bid and offering prices shall be recorded. If the County is offered a security for which there is no other readily available competitive offering, then the Treasurer will document quotations for comparable or alternative securities. SELECTION OF BROKERIDEALERS The Treasurer shall maintain a list of broker/dealers approved for investment purposes, and it shall be the County's policy to purchase securities only from those authorized firms. To be eligible, a firm must meet at least one of the following criteria: I . be recognized as a Primary Dealer by the Federal Reserve Bank of New York or have a primary dealer within its holding company structure; 2. report voluntarily to the Federal Reserve Bank of New York; or 3. Qualify under Securities and Exchange Commission Rule 156-1 (Uniform Net Capital Rule). The County may engage the services of an investment advisory firm to assist in the management of the portfolio. Such investment advisors may utilize their own approved list of broker/dealers. Such approved brokers shall comply with the criteria listed above and shall provide the list of broker/dealers to the County on an annual basis or upon request. In the event that an investment advisor is not used by the County, the Treasurer will select broker/dealers on the basis of their expertise in public cash management and their ability to provide service to the County's account. Each authorized firm shall be required to submit and annually update a County approved broker/dealer Information Request Form that includes the firm's most recent financial statements. The County may purchase commercial paper from direct issuers even though they are not on the approved broker/dealer list as long as the commercial paper meets the criteria outlined in the Section, "Authorized Securities and Transactions" of this Investment Policy. SELECTION OF BANKS Banks shall be approved by written resolution of the Board of County Commissioners to provide depository and other banking services for the County. To be eligible for authorization, a bank trust be a member of the FDIC and shall qualify as an eligible public depository as defined in C.R_S. § 11-10.5-103. A list of approved banks is included in Annex III of this Investment Policy. 2 SAFEKEEPING AND CUSTODY The Treasurer shall approve one or more banks to provide safekeeping and custodial services for the County. Custodian banks shall be Selected on the basis of their ability to provide service to the County's account and the competitive pricing of their services. A County approved custody agreement shall be executed with each custodian bank prior to utilizing that bank's safekeeping and custody services. To be eligible for designation as the County's safekeeping and custodian bank, a financial institution shall qualify as an eligible public: depository as defined in C.R.S. 11-10.5-103. The purchase and sale of securities and repurchase agreement transactions shall be settled on a delivery versus payment basis. Ownership of all securities shall be perfected in the name of the County. Sufficient evidence to title shall be consistent with modern investment, banking and commercial practices. All investment securities purchased by the County will be delivered by book entry and will be held in third -party safekeeping by the County approved custodian bank, its correspondent bank or the Depository Trust Company. The County's custodian will be required to furnish the County monthly reports of holdings of custodied securities as well as a report of monthly safekeeping activity. PERFORMANCE BENCHMARKS The investment and cash management portfolio shall be designed to attain a market rate of return throughout budgetary and economic cycles, taking into account prevailing market conditions, risk constraints for eligible securities, and cash flow requirements. The County shall use a dynamic benchmark rate of return for the County's investment portfolio which corresponds to the yield for the current U.S. Treasury security that matches the weighted average maturity of the portfolio. All fees involved with managing the portfolio should be included in the computation of the portfolio's rate of return. REPORTING Monthly, the Treasurer shall prepare a report listing the investments held by the County, the current market valuation of the investments and performance results. The report shall include a summary of investment earnings during the period. Portfolio reports prepared for the County shall be compliant with all Governmental Accounting Standards Board requirements. 7 POLICY REVISIONS This Investment Policy shall be reviewed annually and may be amended as conditions warrant. Policy annexes may be updated by the Treasurer as necessary provided the changes in no way affect the substance or intent of this Investment Policy. 8 Eagle County, Colorado Investment Policy prepared by: y Teale Simonton, Treasurer Eagle County, Colorado Approved as to legal form: Approved: Eagle County, Colorado el -I a— Char Eagle County Board of County Commissioners Date: " &,u S T V; , 2017 9 Annex I Contributing Special Funds The contributing special funds to the pooled investment portfolio that will be allocated proportionate investment income are: Offsite Road Improvement School Dedication Emergency 911 E.V. Transportation E.V. Trails R.F. Transportation R.F. Trails Emergency Reserve Fund Transportation Vehicle Replacement Fund Open Space Fund Open Space Reserve Fund Public Health Fund The following funds are restricted funds and are not included in the pooled investment portfolio: Health Insurance Eagle County Reimbursement Public Trustee Salary Accounts 10 Annex II Authorized Personnel The following persons are authorized to transact investment business and wire Funds for investment purposes on behalf of Eagle County, Colorado: Teak Simonton, Treasurer Anissa Berge, Chief Deputy Treasurer Brandi Resa, Deputy Treasurer 11 Annex Iii Approved Banks and Savings and Loans The following depositories have been approved by Eagle County, Colorado. Alpine Bank FirstBank of Avon Wells Fargo Bank, NA 12 C I i ervW: 24311 PUBTR ACQRDTM CERTIFICATE OF LIABILITY INSURANCE DATE1110712007120IY7 1 7 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the cerlificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER Rust Insurance Agency, LLC 1510 H Street NW, 5th floor Washington, DC 20005 IINTAIT NAME- Meghan Fitzsimmons PHONE ZD2 776.5015 FAX ZO2 776-1288 A1C, No EKt A1C, No E-MAIL ADDRESS: INSURER(S) AFFORDING COVERAGE NAIC4 202 776-5000 INSURER A: CNAlnsuanc2CDmpany 11/21/2017 LACI I OCCURRENCE $1,000,000 INSURED Public Trust Advisors, LLC 717 17th Street Suite 1850 INSURER B: Cvrylwnt3i Caswlty IFlnanclal INSURERC Transpnrtatlnn I—r—, Cn. jr Denver, CO 80202 INSURER D : St. Paul lacmury Insurance CD. INSURER E: TvAn City Flra Insusncc Co. INSURER F COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING .ANY REOUIREMENT, TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUR+ENT WITH RESPECT TD WHICH THIS CERTIFICATE MAY BE ISSUED DR MAY PERTAIN, THE INSURANCE AF=ORDED BY THE POLICIES DESCRIBED HEREIN IS SUB.IECT TO ALL THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN VAY HAVE BEEN REDUCED BY PAID CLAIMS. LTR LTR OF INSURANCE AIDDTYPE INSR INSR YJVD W D POLICY NUMBER MNIDU EFF IYM �CDYIYEYYY LIMITS A GENERAL LIABILITY 84031227927 11/21/2016 11/21/2017 LACI I OCCURRENCE $1,000,000 )( COMMERCIAL GENERAL L ABILITY FREiyII5E5Wu DyicC $300,000 CI Al VIS kV 21' r—xl OCCUR h1FC FXP iAmr nra primnrl $1 D,DDO PERSC:NAL K AUV NJURv $1,000,000 GENERAL AGGREGATE $2,000,000 GFN'I AGGRFGA.TF I IMIT APPI IFS PFR, PRODUCTS COMPICP AGC $2,01}0,01}0 POLICY PRO LOC A AUTOMOBILE LIABILITY B4031227927 11/2112016 11/21/2017 (Erni raED SINGLE uw11 ,) x$1,000,000 (La �,ai7rn ANY AUTO PCF) II Y I14.1t1RY (Per peninn) Al I PIgll ) SCHFCLII FD ECDILY INJURY (Per accidert) s AUTOS ALfTOS NON Olh'NEC FROPERTY DAMAGE HIPFDA.LIT:]S AIJT3S PerLc".dertl B X UMBRELLA LIAR X OCCUN 84031228043 11/21/2016 11/21/2017 EACH OCCURRENCE s4,000,000 EXCESS UAB CLAIMS MADE AGGREGATE s4,000,000 DFD x RFTFNT e.N $10000 $ c WORKERS COMPENSATION 431185470 11/2112016 C Sc 11/21/2017 X °VTA.TU- OTH- AND EMPLOYERS' LIABILrTY YIN N ANY PROPR ETC R/PARTNE R;F-RECUT `JE F 1. FACH FICC rFNT $1,000,000 OFF CERIMEMEER EXCLUDED? N N 1 A (Mari datoryin NH) F 1 . D SFASF FAFMPI DYFF $1,D001000 It ye=a ra3::r1he? imrar T)FS('.R PT ON L)F :)PFRh.TIC]NS Iz:k— L L. L) SLASL - PCLIC Y LIKI 1 $1,000,000 DESCRIPTION OF OPERATIONS; LOCATIONS i VEHICLES (Attach ACORD'101, Addlllonal Remarks Schedule, M more space Is required) Eagle County, its associated or affiliated entities, its successors and assigns, elected officials, employees, agents and volunteers are Additional Insureds under the commercial general liability and automobile liability policies of insurance. Eagle County Treasurer PO Box 479 Eagle, CO 81631 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE C4 1988-ZU1U AGURU GURPURATIUN. All rights reserved. ACORD 25 (2010105) 1 of 1 The ACORD name and logoare registered marks ofACORD #S643291M 60558 MAF EXHIBIT D INDIVIDUALS AUTHORIZED TO ACT ON BEHALF OF CLIENT Teak Simonton, County Treasurer Anissa Berge, Chief Deputy Treasurer