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HomeMy WebLinkAbout4574 Contract Number: 4574 Vendor: DAVIDSON FIXED INCOME MANAGEMENT INC Subject: Investment Advisory Services Department: Finance File Class: LEG 12 -1 Begin Date: 9/1/2006 End Date: 8/31/2010 Review Date: 7/1/2010 Vault Date: Comments: Termination w /30 days written notice Renewable up to 2 yrs after 1st yr Addendum signed 10/08 & 4/09 Renewal 11/09 it Davidson Fred Income Management rADVM DAVIDSON FIXED INCOME MANAGEMENT, INC. ADVISORY AGREEMENT This Agreement is entered into on this 0 day of September, 2010 between Davidson Fixed Income Management, Inc. (Hereinafter referred to as the "ADVISOR ") and The City of Bremerton (hereinafter referred to as "THE CITY "). Services will be provided to the DISTRICT by the ADVISOR's portfolio managers located at 5550 S.W. Macadam Avenue, Suite 110, Portland, Oregon 97239. In consideration of the mutual promises, covenants and undertakings set forth herein, the parties hereby agree as follows: APPOINTMENT OF ADVISOR: THE CITY hereby appoints the ADVISOR and the ADVISOR hereby agrees to provide investment advisory services for THE CITY investment portfolio (hereinafter referred to as the "ACCOUNT "). SCOPE OF SERVICES: The ADVISOR shall provide the following services: A. Review and provide update for Investment Policy changes annually. B. Evaluate each fund and determine the appropriate benchmark and management strategy that balances risk and return. Includes liquidity and core fund analysis. C. Assist in the development and implementation of a risk - controlled strategy designed to enhance portfolio performance while specifically addressing the objectives and constraints for each fund balance. D. Make recommendations as to asset allocation to maintain the targeted risk and return profile. E. Assist in effecting and managing of investment transactions. The ADVISOR will provide disclosure to THE CITY regarding each transaction that identifies the dealers contacted and the prices offered by each. The ADVISOR may open accounts on behalf of THE CITY directly with its approved broker /dealer list. The ADVISOR agrees to monitor all settlements for delivery versus payment transactions with the City between the custodial bank and the dealers. F. Provide reports for the fund accounts which include: description of each security with book and market value at least monthly, or more frequent if requested; risk rating for each security and security type for all funds; and liquidity profiles of all funds, individually and collectively. Total return reports will be provided on a monthly basis comparing the portfolio performance relative the appropriate benchmark. G. Provide technical support in analyzing portfolio information. H. Report relevant market information in a timely manner. Key economic indicators, events and information relevant to managed portfolios will be provided at least quarterly and more frequent as necessary or requested. I. Assist in reviewing third party custodial providers. J. Hold a review meeting within six months of the beginning of this contract, either at the CITY's offices or ADVISOR's office. K. Other Investment advisory services as needed, including: (i) Consultation on other investment funds as needed, such as reserve funds. Page 1 of 5 THE CITY, by entering into this agreement does not surrender ownership of the cash or securities comprising the account. The ADVISOR will not act as a custodian of assets in the account or have possession of any such assets. DESIGNATED AUTHORIZED PERSON(S): This contract provides for the trading authorization for the THE CITY. The persons authorized to affirm transactions recommended by the ADVISOR are: Signature Cathy Johnson — Finance Officer NON- DISCRETIONARY SERVICES: THE ADVISOR will make recorniftndations with respect to the investments of the ACCOUNT but will not make discretionary investment decisions. The ADVISOR's recommendations will be given in writing, by telephone or by email to the designated authorized person at THE CITY and must receive affirmation to proceed with the transaction from a designated authorized person prior to executing the purchase or sale of any securities. REPORTS. In order that THE CITY may be kept informed of the status and activities in the ACCOUNT the ADVISOR shall furnish monthly statements relating to the ACCOUNT. The statements the ADVISOR agrees to furnish to THE CITY will provide details of all transactions involving the ACCOUNT, a month end listing of investments held in the ACCOUNT, and a reporting on the performance of the ACCOUNT. Such statements will be furnished to THE CITY within fifteen (15) days time after the close of each month. INVESTMENT OBJECTIVES AND RESTRICTIONS: The ADVISORS investment decisions or recommendations for the ACCOUNT will be in accordance with such investment policies and restrictions as Client may establish for the ACCOUNT per the attached Statement of Investment Policy and Objectives Exhibit A. All questions regarding any policies and restrictions will be addressed to the address and telephone number set forth in this agreement. It will the responsibility of the Client to inform ADVISOR in writing of such policies and restrictions and of any changes therein, and to give the ADVISOR prompt written notice if Client deems any investment decisions or recommendations made for the ACCOUNT to be in violation of such policies or restrictions. BEST EFFORT: The ADVISOR will at all times render the services called for in this Agreement in accordance with its best judgment. However, the ADVISOR does not imply or guarantee profits or freedom from loss in connection with its recommendations. FEES: In consideration of the services performed by the ADVISOR, THE CITY agrees to pay the ADVISOR an annual investment advisory fee of $13,500.00. The quarterly fee is $3,375 dollars and will be paid at the end of each quarter. i SERVICES FOR OTHER CLIENTS: It is understood that the ADVISOR provides investment advisory services for other clients. It is further understood that the ADVISOR may take investment action on behalf of such other clients, which differs from the investment action taken on behalf of the ACCOUNT. If the purchase or sale of securities for the ACCOUNT and one or Page 2 of 5 more such other clients is affected at or about the same time, such purchase or sale shall be allocated among the other clients in a manner deemed equitable by the ADVISOR. ADVISOR REPRESENTATION: The ADVISOR warrants that it is registered as an Investment Advisor under the Investment Advisors Act of 1940, and that the activities contemplated herein are to the best of its knowledge, in compliance with all laws and regulations applicable to it and governing investments, and that all necessary actions required to authorize such activities have, to the best of its knowledge, been taken. SAFEKEEPING: THE CITY acknowledges that it will assign a third party custodial bank to provide for the holding and delivery of all securities. THE CITY will control all fund transfers in and out of the account. VENUE: In the event that either party deems it necessary to institute legal action or proceedings to enforce any right or obligation under this Agreement, the parties agree that any such action or proceeding shall be brought in the Superior Court of the State of Washington in Kitsap County. Each party is responsible for its own legal fees and costs unless otherwise allowed by law. TERM: The term of this agreement shall be for 1 year from the date hereof. This agreement may be terminated for any reason by either party with or without cause, by giving the other party at least 30 days written notice. The agreement may not be assigned by either of the parties without the prior written consent of the other. The Agreement constitutes the entire Agreement of the parties with respect to the matters contained herein and no modification of this Agreement shall be effective unless such modification is in writing and signed but the parties hereto. The contract may be renewable up to 2 years after the first year of service. CONFIDENTIAL RELATIONSHIP: All information and advice furnished by either party to the other hereunder will be treated as confidential and may not be disclosed to third parties except as required by operation of law or the legitimate business necessity of the disclosing party. DISCLOSURE STATEMENT: The ADVISOR represents that it has delivered to the THE CITY, at least two business days prior to the execution of this Agreement, ADVISOR's current Form ADV, Part 11. By signing this Agreement below, the THE CITY hereby acknowledges its j receipt of said document at least two business days prior to its execution of this Agreement. I KEY PERSONNEL: The ADVISOR acknowledges and THE CITY hired the ADVISOR because of the special qualifications of Advisors key personnel. In particular, through this Contract, THE CITY is engaging the expertise, experience, judgment, and personal attention of Deanne Woodring, CFA, Dave Westcott, CFA and Sally Walton ( "key personnel "). In the event the ADVISOR requests that THE CITY approve a reassignment or transfer of the key personnel, i THE CITY shall have the right to approve or disapprove the proposed replacement(s). i MISCELLANEOUS: This Agreement may not be assigned by either of the parties without the prior written consent of the other. This Agreement constitutes the entire agreement of the parties with I respect to the matters contained herein and no modification of this Agreement shall be effective unless such modification is in writing and signed by the parties hereto. Page 3 of 5 This Agreement shall be governed by the laws of the State of Washington, and furthermore by the Investment Advisors Act of 1940 and the rules and regulations promulgated by the Securities and Exchange City under said act. INSURANCE AND HOLD HARMLESS: Prior to and during the performance of the work covered under this Agreement, ADVISOR shall provide the Risk manager for the City of Bremerton with evidence that it has obtained and maintains in full force and effect during the term of this Agreement a policy of professional liability insurance, providing coverage of at least $1,000,000 against professional liability for errors and omissions in connection with the work to be performed by ADVISOR under this Agreement. Risk Manager shall be provided thirty (30) days' written notice of any cancellation of said professional liability insurance. ADVISOR shall, at all times, be solely responsible for the acts of failures to act of its personnel which occur or arise in any way out of the performance of this Agreement. ADVISOR agrees to save and hold the City, its personnel and officials, harmless from all costs, expenses losses and damages, including the cost of defense, incurred as a result of any acts or omissions of ADVISOR personnel relating solely to the performance of this Agreement. Notices and reports as called for herein shall be mailed, in the care of: ACCOUNT: ADVISOR: City of Bremerton Davidson Fixed Income Management, Inc. 345 6 th Street, Suite 600 5550 SW Macadam Ave. Suite 110 Bremerton, WA 98337 Portland, OR 97239 Phone: (360) 473 -5296 Phone: (866) 999 -2374 Cathy Johnson Deanne Woodring, CFA Finance Officer Managing Director AGREED TO AND ACCEPTED: CITY OF BREMERTON Si e Cathy Johnson Printed or Typed Name Finance Officer Title Date Page 4 of 5 AGREED TO AND ACCEPTED: DAVIDSON FIXED INCOME MANAGEMENT, INC. 1 Signature Deanne Woodring Printed or Typed Name Managing Director Title Date Page 5 of 5 Contract Number: 4574 Vendor: DAVIDSON FIXED INCOME MANAGEMENT INC Subject: Investment Advisory Services Department: Finance File Class: LEG 12-1 Begin Date: 09/O1/2006 End Date: 08/31/2010 ' 'Review Date: 07/Ol/2010 Vault Date: Comments: Termination w/30 days written notice Renewable up to 2 years after ls year of service Addendum signed 10/08 & 4/09 Renewal 11/09 i ' � j Davidson '_. Fixed income Management � REfi`ST'cR£D 47vfSiM,FNi wpvCSER DAVIDSON FIXED INCOME MANAGEMENT, INC. ADVISORY AGREEMENT This Agreement is entered into on this l day of .September, 2009 between Davidson Fixed Income Management, Inc. (Hereinafter ,referred to as the "ADVISOR") and The City of Bremerton (hereinafter referred to as "THE CTTY"). Services will be provided to the DISTRICT by the ADVISOR's portfolio managers located at 5550 S.W. Macadam Avenue, Suite 110, Portland, Oregon 97239. In consideration�of the mutual promises, covenants and undertakings set forth herein, the parties hereby agree as follows: �. APPOINTMENT O� ADVISOR THE CITY hereby appoints the ADVISOR and the ADVISOR hereby agrees to provide investment advisory services for THE CITY investment portfolio . (hereinafter refened to as the "ACCOLTNT"). ScoPE OF SERV�CES: The ADVISOR shall provide the following ser'vices: � A. Review and provide update for Investment Policy changes annually. B. Evaluate each fund and deternune the appropriate benchmazk and management strategy that balances risk and return. Includes liquidity and core fund analysis. C. Assist in the development and implementation of a risk-controlled strategy - � designed to enhance portfolio performance while specifically addressing the objectives and constraints for each fund balance. D. Make recommendations as to asset allocation to maintain the targeted risk and return profile. � E. Assist in effecting and managing of investment transactions. The client acknowledges that the ADVISOR is �liated with D.A. Davidson & Co., a registered broker-dealer, and may authorize the ADVISOR to execute as Agent, transactions through D.A. Davidson & Co, consistent with the ADVISORS duty of best execution. The ADVISOR will provide disclosure to THE CITY regarding each transaction that identifies the dealers contacted and the prices offered by each. The ADVISOR may also open accounts on behalf of THE CTTY directly with its approved broker/dealer list. The ADVISOR agrees to monitor all settlements for delivery versus payment transactions with the City between the custodial bank and the dealers. � F. Provide reports for the fund accounts which include: description of each security with book and market value at least monthly, or more frequent if requested; risk rating for each security and security type for all funds; and liquidity profiles of all funds, individually and collectively. Total return reports will be provided on a monthly basis comparing the portfolio performance relative the appropriate benchmark. � G. Provide technical support in analyzing portfolio information. � H. Report relevant market information in a timely manner. Key economic indicators, events and information relevant to managed portfolios will be provided,at least quarterly and more frequent as necessary or requested. Page 1 of 5' � I. Assist in reviewing third party custodial providers. J. Hold a review meeting within six months of the beginning of this contract, either at the CTTY's offices or ADVISOR's office. K. Other Investment ad"visory services as needed, including: � (i) Consultation on other investment funds as needed, such as reserve funds. THE CITY, by entering into this agreement does not surrender ownership of the cash or securities comprising the account. The ADVISOR will not act as a custodian of assets in the account or have possession of any such assets. DESIGNATED AUTHORIZED PERSON(S) This contract provides for the trading authorization for the THE CITY. The persons authorized to affirm transactions recommended by the ADVISOR are: `� Signature Catherine Johnson — Finance Officer A. Andrew Parks — Director of Financial Services � NON-DISCRETIONARY SERVICES THE ADVISOR will make recommendations with respect to the investments of the ACCOUNT but will not make discretionary investment decisions. The ADVISOR's recommendations will be given in writing, by telephone or by email to the designated authorized person at THE CTTY and must receive affirmation to proceed with the . transaction from a designated authorized person prior to executing the purchase or sale of any securities. REPORTS: In arder that THE CTTY may be kept informed of the status and activities in the ACCOUNT the ADVISOR sha11 furnish monthly statements relating to the ACCOUNT. The � statements the ADVISOR agrees to furnish to THE CITY will provide details of all transactions involving the ACCOUNT, a month end listing of investments held in the ACCOUNT, and a reporting on the performance of the ACCOUNT. Such statements will be furnished to THE CITY within fifteen (15) days time after the close of each month. INVESTMENT OBJECTIVES AND RESTRICTIONS: The ADVISORS investment decisions or recommendations for the ACCOUNT will be in accordance with such. investment policies and restrictions �as Client may establish for the ACCOUNT per the attached Statement of Investment Policy and Objectives Exhibit A. All questions regarding any policies and restrictions will be addressed to the address and telephone number set forth in this ' agreement. It will the responsibility of the Client to inform ADVISOR in writing of such policies and restrictions and of any changes therein, and to give the ADVISOR prompt written notice if Client deems any investment decisions or recommendations made for the ACCOUNT to be in violation of such � policies or restrictions. BEST EFFORT: The ADVISOR will at all times render the services called for in this Agreement in accordance with its best judgment. However, the ADVISOR does not imply or guarantee � profifs or freedom from loss in connection with its recommendations. Page 2 of 5 � FEES: In consideration of the services performed by the ADVISOR, THE CITY agrees to pay the ADVISOR an annual investment advisory fee of $13,500.00. The quarterly fee is $3,375 dollars and will be paid at the end of each quarter. ' SERVICES FOR OTHER CLIENTS: It is understood that the ADVISOR �provides investment advisory services for other clients. It is further understood that the � ADVISOR may take investment action on behalf of such other clients, which differs from the investment action taken on behalf of the ACCOUNT. If the purchase or sale of securities for the ACCOUNT and one or more such other clients is affected at or about the same time, such purchase or sale shall be allocated among the other clients in a manner deemed equitable by the ADVISOR. ADVISOR REPRESENTATION The ADVISOR warrants that, it is registered as an Investment Advisor under the Investment Advisors Act of 1940, and that the activities contemplated herein ��, are to the best of its knowledge, in compliance with a111aws and regulations applicable to it and governing investments, and that all necessary actions required to authorize such activities have, , to the best of its knowledge, been taken. VENLJE In the event that either party deems it necessazy to institute legal action or proceedings to enforce any right or obligation under this Agreement, the parties agree that any such action or proceeding shall brought in the Superior Court of the State of Washington in Kitsap County. Each party is responsible for its own legal fees and costs unless otherwise allowed by. law. TE�tM: The term of this agreement shall be for 1 year from the date hereof. This agreement may be terminated for any reason by either party with or without cause, by giving the other party at least 30 days written notice. The agreement may not be assigned by either of the parties without the prior written consent of the other. The Agreement constitutes the entire Agreement of the parties with respect to the matters contained herein and no modification of this Agreement shall be effective unless such modification is in writing and signed but the parties hereto. The contract may be renewable up to 2 years after the first year of service. CONFIDENTIAL RELATIONSHIP All information and advice furnished by either party to the other hereunder will be treated as conf'idential and may not be disclosed to third parties except as required by operation of law or the legitimate business necessity of the disclosing party. DISCLOSURE STATEMENT The ADVISOR represents that it has,delivered to the THE CITY, at least two business days prior to the execution of this Agreement, ADVISOR's current Form � ADV, Part II. By signing this Agreement below, the THE CITY hereby acknowledges its receipt of said document-at least two business days prior to its execution of this Agreement. KEY PERSONNEL The ADVISOR acknowledges and THE CTTY hired the ADVISOR because of the special qualifications of Advisors key personnel. In particular, through this Contract, THE , CTTY is engaging the expertise, experience, judgment, and personal attention of Deanne Woodring, CFA, Dave Westcott, CFA and Sally Walton ("key personnel"). In the event the �� . ADVISOR requests that THE CITY approve a reassignment or transfer of the key personnel, THE CTTY shall have the riglit to approve or disapprove the proposed replacement(s). Page 3 of 5 � \ � MISCELLANEOUS This Agreement may not be assigned by either of the parties without the prior written consent of the other. This Agreement constitutes the enti're agreement of the parties with respect to the matters contained herein and no modification of this Agreement shall be effective unless such modification is in writing and signed by the parties hereto. � This Agreement shall be governed by the laws of the State of Washington, and furthermore by the Investment Advisors Act of 1940 and the rules and regulations promulgated by the Securities and Exchange City under said act. � \ INSURANCE AND HOLD HARMLESS Prior to and during the performance of the work covered under this Agreement, ADVISOR shall provide the Risk manager for the City of Bremerton with evidence that it has obtained and maintains in full force and effect during the term of this Agreement a policy of professional liability insurance, providing coverage of at least $1,000,000 � against professional liability for errors and omissions in connection with the work to be performed by ADVISOR under this Agreement. Risk Manager shall be provided thirty (30) days' written notice of any cancellation of said professionalliability insurance. ADVISOR shall, at all times, be solely responsible for the acts of failures to act of its personnel� which occur or arise in any way out of the performance�of this Agreement. ADVISOR agrees to save and hold the City, its personnel and officials, harmless from all costs, expenses losses and - damages, including the cost of defense, incurred as a result of any �acts or omissions of ADVISOR personnel relating solely to the performance of this Agreement. ^ Notices and reports as called for herein shall be mailed, in the care of: ACCOUNT: • ADVISOR: City of Bremerton Davidson Fixed Income Management, Inc. 345 6`" Street, Suite 600 5550 SW Macadam Ave. Suite 110 Bremerton, WA 98337 Portland, OR 97239 � Phone: (360) 473-5296 Phone: (866) 999-2374 Cathy Johnson Deanne Woodring, CFA Finance Officer Managing Director , AGREED TO AND ACCEPTED: , CTTY OF BREMERTON, WA � � �� Signature � A. Andrew Parks ' Printed or Typed Name Director of Financial Services Title �'`-� `i Date Page 4 of 5 � / . AGREED TO AND ACCEPTED: DAVIDSON FIXED INCOME MANAGEMENT, INC. �� � . \� , � . Sagt�ture Deanne Woodring Printed or Typed Name � Managing Director � Title r / � � " � � , Date � . , . � , Page 5 of 5 Contract Number: Vendor: Subject: Department: File Class: Begin Date: End Date: Review Date: Vault Date: Comments: 4574 DAVIDSON FIXED INCOME MANAGEMENT INC Investment Advisory Services Finance LEG 12-1 09/01/2006 08/31/2009 07/01/2009 Termination w/30 days written notice Renewable up to 2 years after 1st year of service Addendum signed 10/08 & 4/09 ADDENDUM TO CONTRACT BETWEEN DAVIDSON FIXED INCOME MANAGEMENT AND THE CITY OF BREMERTON DATED SEPTEMBER 1,2007 / Fee: Given the budget constraints of the City, Davidson Fixed Income Management agrees to reduce the annual fee to $13,500.00 through the contract term of 9/1/09. Quarterly fees will be $3,375.00 effective 3/31/09. ,~, CITY OF BREMERTON DAVIDSON' FIXED INCOME MANAGEMENT .. qO c ~ ~ -^- Deanne Woodring Director of Fin9ncial Services Managing Director Date: 4131(J~ 'Date:Q;(1I}04 Contract Number: Vendor: Subject: Department: File Class: Begin Date: End Date: Review Date: Vault Date: Comments: 4574 DAVIDSON FIXED INCOME MANAGEMENT INC Investment Advisory Services Finance LEG 12-1 09/01/2006 08/31/2009 07/01/2009 Termination w/30 days written notice Renewable up to 2 years after 1st year of service Addendum signed 10/08 ADDENDUM TO CONTRACT BETWEEN DAVIDSON FIXED INCOME MANAGEMENT AND THE CITY OF BREMERTON DATED SEPTEMBER 1, 2007 Term. The term of this agreement shall be for 1 year from the date hereof. This agreement may be terminated for any reason by either party with or without cause, by giving the other party at least 30 days written notice. The agreement may not be assigned by either of the parties without the prior written consent of the other. The Agreement constitutes the entire Agreement of the parties with respect to the matters contained herein and no modification of this Agreement shall be effective unless such modification is in writing and signed but the parties hereto. The contract may be renewable up to 2 years after the first year of service. This addendum provides for a 1 year renewal of the contract to 9/1/09. DAVIDSON FIXED INCOME MANAGEMENT CJ,~__ cvk,-<- Deanne Woodring Managing Director Date: l cJ Il ~ { U ~ Vendor Subject Department Status Code Amount Begin Date End Date Review Date Insurance Comments Contract Number 4574 DAVIDSON FIXED INCOME MANAGEMENT INC Investment Advisory Services Finance PRO File Class LEG 12-1 $14500.00 09/01/2006 08/31/2008 07/01/2008 GL $ AL $ E&O $5000000.00 Insurance Total Insurance Review Date $ 04/12/2007 Termination w/30 days written notice Renewable up to 2 years after 1st year of service DAVIDSON FIXED INCOME MANAGEMENT. INC. ADVISORY AGREEMENT This Agreement is entered into on this 1 st day of September, 2007 between Davidson Fixed Income Management, Inc. (Hereinafter referred to as the "ADVISOR") and The City of Bremerton (hereinafter referred to as "THE CITY"). In consideration of the mutual promises, covenants and undertakings set forth herein, the parties hereby agree as follows: Aooointment of Advisor THE CITY hereby appoints the ADVISOR and the ADVISOR hereby agrees to provide investment advisory services for THE CITY investment portfolio (hereinafter referred to as the "ACCOUNT"). Scooe of Services. The ADVISOR shall provide the following services: A. Review and provide update for Investment Policy changes. B. Evaluate each fund and determine the appropriate benchmark and management strategy that balances risk and return. Includes liquidity and core fund analysis. C. Assist in the development and implementation of a risk-controlled strategy designed to enhance portfolio performance while specifically addressing the objectives and constraints for each fund balance. D. Make recommendations as to asset allocation to maintain the targeted risk and return profile. E. Assist in effecting and managing of investment transactions. The client acknowledges that the ADVISOR is affiliated with D.A. Davidson & Co., a registered broker-dealer, and may authorize the ADVISOR to execute as Agent, transactions through D.A. Davidson & Co, consistent with the ADVISORS duty of best execution. The ADVISOR will provide disclosure to THE CITY regarding each transaction that identifies the dealers contacted and the prices offered by each. F. Provide reports for the fund accounts which include: description of each security with book and market value at least monthly, or more frequent if requested: risk rating for each security and security type for all funds: and liquidity profiles of all funds, individually and collectively. Total return reports will be provided on a monthly basis comparing the portfolio performance relative the appropriate benchmark. G. Provide technical support in analyzing portfolio information. H. Report relevant market information in a timely manner. Key economic indicators, events and information relevant to managed portfolios will be provided at least quarterly and more frequent as necessary or requested. I. Assist in reviewing third party custodial providers. J. Hold a review meeting within six months of the beginning of this contract either at the CIN's offices or ADVISOR's office. K. Other Investment advisory services as needed. including: (i) Consultation on other investment funds as needed, such as reserve funds. THE CIN, by entering into this agreement does not surrender ownership of the cash or securities comprising the account. The ADVISOR will not act as a custodian of assets in the account or have possession of any such assets. Reports. In order that THE CIN may be kept informed of the status and activities in the ACCOUNT the ADVISOR shall furnish monthly statements relating to the ACCOUNT. The statements the ADVISOR agrees to furnish to THE CIN will provide details of all transactions involving the ACCOUNT, a month end listing of investments held in the ACCOUNT, and a reporting on the performance of the ACCOUNT. Such statements will be furnished to THE CIN within fifteen (15) days time after the close of each month. Investment Obiectives and Restrictions. Davidson's investment decisions or recommendations for the ACCOUNT will be in accordance with such investment policies and restrictions as Client may establish for the ACCOUNT per the attached Statement of Investment Policy and Objectives Exhibit A. All questions regarding any policies and restrictions will be addressed to the address and telephone number set forth in this agreement. It will the responsibility of the Client to inform ADVISOR in writing of such policies and restrictions and of any changes therein, and to give the ADVISOR prompt written notice if Client deems any investment decisions or recommendations made for the ACCOUNT to be in violation of such policies or restrictions. Best Effort. The ADVISOR will at all times render the services called for in this Agreement in accordance with its best judgment. However, the ADVISOR does not imply or guarantee profits or freedom from loss in connection with its recommendations. Fees. In consideration of the services performed by the ADVISOR, THE CIN agrees to pay the ADVISOR an annual investment advisory fee of $14,500.00. The quarterly fee is $3,625 dollars and will be paid at the end of each quarter. Services for Other Clients. It is understood that the ADVISOR provides investment advisory services for other clients. It is further understood that the ADVISOR may take investment action on behalf of such other clients, which differs from the investment action taken on behalf of the ACCOUNT. If the purchase or sale of securities for the ACCOUNT and one or more such other clients is affected at or 2 about the same time, such purchase or sale shall be allocated among the other clients in a manner deemed equitable by the ADVISOR. Advisor ReDresentation. The ADVISOR warrants that it is registered as an Investment Advisor under the Investment Advisors Act of 1940, and that the activities contemplated herein are to the best of its knowledge, in compliance with all laws and regulations applicable to it and governing investments, and that all necessary actions required to authorize such activities have, to the best of its knowledge, been taken. Venue. In the event that either party deems it necessary to institute legal action or proceedings to enforce any right or obligation under this Agreement, the parties agree that any such action or proceeding shall be brought in the Superior Court of the State of Washington in Kitsap County. Each party is responsible for its own legal fees and costs unless otherwise allowed by law. Term. The term of this agreement shall be for 1 year from the date hereof. This agreement may be terminated for any reason by either party with or without cause, by giving the other party at least 30 days written notice. The agreement may not be assigned by either of the parties without the prior written consent of the other. The Agreement constitutes the entire Agreement of the parties with respect to the matters contained herein and no modification of this Agreement shall be effective unless such modification is in writing and signed but the parties hereto. The contract may be renewable up to 2 years after the first year of service. Confidential RelationshiD All information and advice furnished by either party to the other hereunder will be treated as confidential and may not be disclosed to third parties except as required by operation of law or the legitimate business necessity of the disclosing party. Disclosure Statement - The ADVISOR represents that it has delivered to the THE CITY, at least two business days prior to the execution of this Agreement, ADVISOR's current Form ADV, Part II. By signing this Agreement below, the THE CITY hereby acknowledges its receipt of said document at least two business days prior to its execution of this Agreement. Miscellaneous - This Agreement may not be assigned by either of the parties without the prior written consent of the other. This Agreement constitutes the entire agreement of the parties with respect to the matters contained herein and no modification of this Agreement shall be effective unless such modification is in writing and signed by the parties hereto. 3 This Agreement shall be governed by the laws of the State of Washington, and furthermore by the Investment Advisors Act of 1940 and the rules and regulations promulgated by the Securities and Exchange City under said act. Insurance and Hold Harmless - Prior to and during the performance of the work covered under this Agreement. ADVISOR shall provide the Risk manager for the City of Bremerton with evidence that it has obtained and maintains in full force and effect during the term of this Agreement a policy of professional liability insurance, providing coverage of at least $1,000,000 against professional liability for errors and omissions in connection with the work to be performed by ADVISOR under this Agreement. Risk Manager shall be provided thirty (30) days' written notice of any cancellation of said professional liability insurance. ADVISOR shall, at all times, be solely responsible for the acts of failures to act of its personnel which occur or arise in any way out of the performance of this Agreement. ADVISOR agrees to save and hold the City, its personnel and officials, harmless from all costs, expenses losses and damages, including the cost of defense, incurred as a result of any acts or omissions of ADVISOR personnel relating solely to the performance of this Agreement. Notices and reports as called for herein shall be mailed in the care of: ACCOUNT: City of Bremerton Cathy Johnson Finance Officer 345 6th Street, Suite 600 Bremerton, WA 98337 ADVISOR: Davidson Fixed Income Management. Inc. 5550 SW Macadam Ave. Suite 110 Portland, OR 97239 1-866-999- 2374 Deanne Woodring, CFA Managing Director Dave Westcott, CFA Managing Director Sally Walton, Vice President 4 AGREED TO AND ACCEPTED: L~ ~ .,.-c..... 'S.. L ~::f~ ~ Printed or Typed Name ~\-n.~~o r o~ '\=\ ~c...~,-\c;;...\ c:s~..,..." ~ c...e. ~ Title Q.. \ L~ \ C;)I Date AGREED TO AND ACCEPTED: DAVIDSON FIXED INCOME MANAGEMENT, INC. ~ ( Jhn-~ Signature - - ~ ~ C\.."'-~ '0-Jw ~\ ~( Printed or Typed Name \ 'f'{\o=,^-,-,-&\'''':'':-, 'S\ ~ J..,v Title y U00l Date 5 Vendor Subject Department Status Code Amount Begin Date End Date Review Date Insurance Comments Contract Number 4574 DAVIDSON FIXED INCOME MANAGEMENT INC Investment Advisory Services Finance PRO File Class LEG 12-1 $14500.00 09/01/2006 08/31/2007 02/15/2009 GL $ AL $, E&O $5000000.00 Insurance Total Insurance Review Date $ 04/12/2007 Termination w/30 days written notice Renewable up to 2 years after 1st year of service New Agreement 9/07 Vault 01/01/2009 DAVIDSON FIXED INCOME MANAGEMENT. INC. ADVISORY AGREEMENT This Agreement is entered into on this 1 st day of September, 2006 between Davidson Fixed Income Management, Inc. (Hereinafter referred to as the "ADVISOR") and The City of Bremerton (hereinafter referred to as "THE CITY"). In consideration of the mutual promises, covenants and undertakings set forth herein, the parties hereby agree as follows: Appointment of Advisor THE CITY hereby appoints the ADVISOR and the ADVISOR hereby agrees to provide investment advisory services for THE CITY investment portfolio (hereinafter referred to as the "ACCOUNT"). Scope of Services. The ADVISOR shall provide the following services: A. Review and provide update for Investment Policy changes. B. Evaluate each fund and determine the appropriate benchmark and management strategy that balances risk and return. Includes liquidity and core fund analysis. C. Assist in the development and implementation of a risk-controlled strategy designed to enhance portfolio performance while specifically addressing the objectives and constraints for each fund balance. D. Make recommendations as to asset allocation to maintain the targeted risk and return profile. E. Assist in effecting and managing of investment transactions. The client acknowledges that the ADVISOR is affiliated with D.A. Davidson & Co., a registered broker-dealer, and may authorize the ADVISOR to execute as Agent, transactions through D.A. Davidson & Co, consistent with the ADVISORS duty of best execution. The ADVISOR will provide disclosure to THE CITY regarding each transaction that identifies the dealers contacted and the prices offered by each. F. Provide reports for the fund accounts which include: description of each security with book and market value at least monthly, or more frequent if requested; risk rating for each security and security type for all funds; and liquidity profiles of all funds, individually and collectively. Total return reports will be provided on a monthly basis comparing the portfolio performance relative the appropriate benchmark. G. Provide technical support in analyzing portfolio information. 1 H. Report relevant market information in a timely manner. Key economic indicators, events and information relevant to managed portfolios will be provided at least quarterly and more frequent as necessary or requested. I. Assist in reviewing third party custodial providers. J. Hold a review meeting within six months of the beginning of this contract, either at the CITY's offices or ADVISOR's office. K. Other Investment advisory services as needed, including: (i) Consultation on other investment funds as needed, such as reserve funds. THE CITY, by entering into this agreement does not surrender ownership of the cash or securities comprising the account. The ADVISOR will not act as a custodian of assets in the account or have possession of any such assets. Reports. In order that THE CITY may be kept informed of the status and activities in the ACCOUNT the ADVISOR shall furnish monthly statements relating to the ACCOUNT. The statements the ADVISOR agrees to furnish to THE CITY will provide details of all transactions involving the ACCOUNT, a month end listing of investments held in the ACCOUNT, and a reporting on the performance of the ACCOUNT. Such statements will be furnished to THE CITY within fifteen (15) days time after the close of each month. Investment Obiectives and Restrictions. Davidson's investment decisions or recommendations for the ACCOUNT will be in accordance with such investment policies and restrictions as Client may establish for the ACCOUNT per the attached Statement of Investment Policy and Objectives Exhibit A. All questions regarding any policies and restrictions will be addressed to the address and telephone number set forth in this agreement. It will the responsibility of the Client to inform ADVISOR in writing of such policies and restrictions and of any changes therein, and to give the ADVISOR prompt written notice if Client deems any investment decisions or recommendations made forthe ACCOUNT to be in violation of such policies or restrictions. Best Effort. The ADVISOR will at all times render the services called for in this Agreement in accordance with its best judgment. However, the ADVISOR does not imply or guarantee profits or freedom from loss in connection with its recommendations. Fees. In consideration of the services performed by the ADVISOR, THE CITY agrees to pay the ADVISOR an annual investment advisory fee of $14,500.00. The quarterly fee is $3,625 dollars and will be paid at the end of each quarter. 2 Services for Other Clients. It is understood that the ADVISOR provides investment advisory services for other clients. It is further understood that the ADVISOR may take investment action on behalf of such other clients, which differs from the investment action taken on behalf of the ACCOUNT. If the purchase or sale of securities for the ACCOUNT and one or more such other clients is affected at or about the same time, such purchase or sale shall be allocated among the other clients in a manner deemed equitable by the ADVISOR. Advisor Representation. The ADVISOR warrants that it is registered as an Investment Advisor under the Investment Advisors Act of 1940, and that the activities contemplated herein are to the best of its knowledge, in compliance with all laws and regulations applicable to it and governing investments, and that all necessary actions required to authorize such activities have, to the best of its knowledge, been taken. Venue. In the event that either party deems it necessary to institute legal action or proceedings to enforce any right or obligation under this Agreement, the parties agree that any such action or proceeding shall be brought in the Superior Court of the State of Washington in Kitsap County. Each party is responsible for its own legal fees and costs unless otherwise allowed by law. Term. The term of this agreement shall be for 1 year from the date hereof. This agreement may be terminated for any reason by either party with or without cause, by giving the other party at least 30 days written notice. The agreement may not be assigned by either of the parties without the prior written consent of the other. The Agreement constitutes the entire Agreement of the parties with respect to the matters contained herein and no modification of this Agreement shall be effective unless such modification is in writing and signed but the parties hereto. The contract may be renewable up to 2 years after the first year of service. Confidential Relationship All information and advice furnished by either party to the other hereunder will be treated as confidential and may not be disclosed to third parties except as required by operation of law or the legitimate business necessity of the disclosing party. Disclosure Statement - The ADVISOR represents that it has delivered to the THE CITY, at least two business days prior to the execution of this Agreement, ADVISOR's current Form ADV, Part II. By signing this Agreement below, the THE CITY hereby acknowledges its receipt of said document at least two business days prior to its execution of this Agreement. 3 Miscellaneous - This Agreement may not be assigned by either of the parties without the prior written consent of the other. This Agreement constitutes the entire agreement of the parties with respect to the matters contained herein and no modification of this Agreement shall be effective unless such modification is in writing and signed by the parties hereto. This Agreement shall be governed by the laws of the State of Washington, and furthermore by the Investment Advisors Act of 1940 and the rules and regulations promulgated by the Securities and Exchange City under said act. Insurance and Hold Harmless - Prior to and during the performance of the work covered under this Agreement, ADVISOR shall provide the Risk manager for the City of Bremerton with evidence that it has obtained and maintains in full force and effect during the term of this Agreement a policy of professional liability insurance, providing coverage of at least $1,000,000 against professional liability for errors and omissions in connection with the work to be performed by ADVISOR under this Agreement. Risk Manager shall be provided thirty (30) days' written notice of any cancellation of said professional liability insurance. ADVISOR shall, at all times, be solely responsible for the acts of failures to act of its personnel which occur or arise in any way out of the performance of this Agreement. ADVISOR agrees to save and 'hold the City, its personnel and officials, harmless from all costs, expenses losses and damages, including the cost of defense, incurred as a result of any acts or omissions of ADVISOR personnel relating solely to the performance of this Agreement. Notices and reports as called for herein shall be mailed, in the care of: ACCOUNT: City of Bremerton Cathy Johnson Finance Officer 345 6th Street, Suite 600 Bremerton, W A 98337 ADVISOR: Davidson Fixed Income Management, Inc. 5550 SW Macadam Ave. Suite 110 Portland, OR 97239 1-866-999-2374 4 Deanne Woodring, CFA Managing Director Dave Westcott, CFA Managing Director Sally Walton, Vice President AGREED TO AND ACCEPTED: \...e...~ ~ c:- 'S. '-::Jo~ Printed or Typed Name ~''f'"Q.~\-~~ ~\ ~\Nc.~c\ c-\ S~~~\~p~ Title ~~~)-S ~ ~" 7N"\<O Date AGREED TO AND ACCEPTED: ~ '----u.. ~ \ ""' Title ) C\./ \ IDlo ~Q2,ON FIXED INCOME M~AGE~ENT, INC. ~~ L. . ~\_O .1).~,> Signature ~~'^-'-- ~~~~~ Printed or Typed Name 1J, ~~"" I ~IN~ ~"-ar Date 5 Disclosure Document FORMADVPARTII March 1, 2006 FORM ADV Part II - Page 1 Unifonn Application for Investment Adviser Registration Name of Investment Adviser: Davidson Fixed Income Management, Inc. Address: (Number and Street) (City) (State) (Zip Code) Area Code: Telephone Number: 1600 Broadway, Suite 1100 Denver CO 80202 (800) 617 -2501 This part of Fonn ADV gives infonnation about the investment adviser and its business for the use of clients. The infonnation has not been approved or verified by a governmental authority. Table of Contents ITEM Number Item PaQe Advisory Services and Fees .................................................................................................................. 2 2 Types of Clients. ... ... ... ......................... ..................................... ...... ............ ............. ............... ....... ........ 2 3 Types of Investments.... ...... ... ....................................................... ... .... ... ....... .......... '" .......... ................. 3 4 Methods of Analysis, Sources of Information and Investment Strategies............................................ 3 5 Education and Business Standards ....... ...................... ........................................................ ................. 4 6 Education and Business Background ................................................................................................... 4 7 Other Business Activities..... ............. ........ ........................... ........ .......... ........... ....... ........... ................... 4 8 Other Financial Industry Activities or Affiliations ................................................................................... 4 9 Participation or Interest in Client Transactions ...................................................................................... 5 10 Conditions for Managing Accounts......................................................................................................... 5 11 Review of Accounts ....... .......... .... ... ...... ..... ... .......... ...... ............... .......... ....... ............ .... ...... ..... ..... ......... 5 12 Investment or Brokerage Discretion ... ........ ................ ................... ....... ....... ....... ......... ....... ........... ........ 6 13 Additional Compensation....................................................................................................................... 6 14 Balance Sheet........................................................................................................................................ 6 Continuation Sheet ................................................................................................................... Schedule F Balance Sheet, if required ........................................................................................................ Schedule G (Schedules A, B, C, D and E are included with Part 1 of this Fonn, for the use of regulatory bodies, and are not distributed to clients.) Potential persons MO are to respond tothe collection of information contained inthis form are not required to respond unless the form display.> a currently valid OMS control number Answer all items. Complete amended pages in full, circle items and file with execution page (page 1) FORM ADV Applicant: Davidson Fixed Income Management, Inc. SEC File Number 801-62264 Date: Part 11- Page 2 March 1, 2006 1. A. Advisory Services and Fees. (check the applicable boxes) For each type of service provided, state the approximate % of total advisory billings from that service. (See instruction below.) Applicant: (1 ) (2) (3) (4) (5) (6) Provides investment supervisory services .......................................................................................................................................~ % Manages investment advisory accounts not involving investment supervisory services................................................................_ % Furnishes investment advice through consultations not included in either service described above............................................._ % Issues periodicals about securities by subscription ......................................................................................................................... % Issues special reports about securities not included in any service described above ...................................................................._ % Issues, not as part of any service described above, any charts, graphs, formulas, or other devices which clients may use to evaluate securities .. .............. ..................... ... .... .... ............... ......... .................... ... ........ .... ........ .............. .......... .... ................. ............ % (7) On more than an occasional basis, furnishes advice to clients on matters not involving securities............................................... % (8) Provides a timing service.......,.........................................................................................................................................................._ % (9) Furnishes advice about securities in any manner not described above.........................................................................................._ % (Percentages should be based on applicant's last fiscal year. If applicant has not completed its first fiscal year, provide estimates of advisory billings for that year and state that the percentages are estimates.) B. Does applicant call any of the services it checked above financial planning or some similar term? Yes o No ~ C. Applicant offers investment advisory services for: (check all that apply) ~ (1) A percentage of assets under management 0 (4) Subscription fees ~ (2) Hourly charges 0 (5) Commissions ~ (3) Fixed fees (not including subscription fees) 0 (6) Other D. For each checked box in A above, describe on Schedule F: . the services provided, including the name of any publication or report issued by the adviser on a subscription basis or for a fee . applicant's basic fee schedule, how fees are charged and whether its fees are negotiable . when compensation is payable, and if compensation is payable before service is provided, how a client may get a refund or may terminate an investment advisory contract before its expiration date 2. Type of Clients - Applicant generally provides investment advice to: (check those that apply) o A. Individuals o B. Banks or thrift institutions ~ C. Investment companies o D. Pension and profit sharing plans o E. Trusts, estates, or charitable organizations ~ F. Corporations or business entities other than those listed above ~ G. Other (describe on Schedule F) Answer all items. Complete amended pages in full, circle items and file with execution page (page 1) FORM ADV Applicant: SEC File Number Date: Part II - Page 3 Davidson Fixed Income Management, Inc. 801-62264 March 1, 2006 3. Types of Investments. Applicant offers advice on the following: (check those that apply) A. Equity Securities ~ H. United States government securities D (1) exchange-listed securities D (2) securities traded over-the-counter I. Options contracts on: D (3) foreign issuers D (1) securities D (2) commodities D B. Warrants J. Futures contracts on: ~ C. Corporate debt securities D (1) tangibles (other than commercial paper) D (2) intangibles ~ D. Commercial paper K. Interests in partnerships investing in: D (1) real estate ~ E. Certificates of deposit D (2) oil and gas interests D (3) other (explain on Schedule F) ~ F. Municipal securities ~ L. Other (explain on Schedule F) G. Investment company securities: D (1) variable life insurance D (2) variable annuities ~ (3) mutual fund shares 4. Methods of Analysis, Sources of Information, and Im.estment Strategies. A. Applicant's security analysis methods include: (check those that apply) (1 ) D Charting (4) D Cyclical (2) ~ Fundamental (5) D Other (explain on Schedule F) (3) ~ Technical B. The main sources of information applicant uses include: (check those that apply) (1 ) ~ Financial newspapers and magazines (5) D Timing services (2) D Inspections of corporate activities (6) ~ Annual reports, prospectuses, filings with the Securities and Exchange Commission (3) ~ Research materials prepared by others (7) D Company press releases (4) ~ Corporate rating services (8) ~ Other (explain on Schedule F) C. The investment strategies used to implement any investment advice given to clients include: (check those that apply) (1) ~ Long term purchases (5) D Margin transactions (securities held at least a year) (2) ~ Short term purchases (6) D Option writing, including covered options, (securities sold within a year) uncovered options or spreading strategies (3) D Trading (securities sold within 30 days) (7) ~ Other (explain on Schedule F) (4) D Short sales Answer all items. Complete amended pages in full, circle items and file with execution page (page] ) FORM AnV Part 11- Page 4 Applicant: Davidson Fixed Income Management, Inc. SEe File Number 801-62264 Date: March 1,2006 5. Education and Business Standards. Are there any general standards of education or business experience that applicant requires of those Yes No involved in determining or giving investment advice to dients? .................................................................................................................. [8] 0 (If yes, describe these standards on Schedule F.) 6. Education and Business Background. For: . each member of the investment committee or group that determnes general investment advice to be given to clients, or . if the applicant has no investment committee or group, each individual who determines general investment advice given to clients (if more than five, respond only for their supervisors) . each principal executive officer of applicant or each person with similar status or performing similar functions. On Schedule F, give the: . name year of birth . formal education after high school . business background for the preceding five years 7. Other Business Activities. (check those that apply) o o o A. B. e. Applicant is actively engaged in a business other than giving investment advice. Applicant sells products or services other than investment advice to clients. The principal business of applicant or its principal executive officers involves something other than providing investment advice. (For each checked box describe the other activities, induding the time spent on them, on Schedule F.) 8. Other Financial Industry Activities or Affiliations. (check those that apply) o A. Applicant is registered (or has an application pending) as a securities broker-dealer. o B. Applicant is registered (or has an application pending) as a futures commission merchant, commodity pool operator or commodity trading adviser. e. Applicant has arrangements that are material to its advisory business or its clients with a related person who is a: [8] (1) . broker-dealer 0 (7) accounting firm 0 (2) investment company 0 (8) law firm [8] (3) other investment adviser [8] (9) insurance company or agency 0 (4) financial planning firm ~ (10) pension consultant 0 (5) commodity pool operator, commodity trading adviser 0 (11) real estate broker or dealer or futures commission merchant ~ (6) banking or thrift institution 0 (12) entity that creates or packages limited partnerships (For each checked box in e, on Schedule F identify the related person and describe the relationship and the arrangements.) D. Is applicant or a related person a general partner in any partnership in which clients are solicited to Yes No invest?... .......... ..... .... ........ ..... .... .... ...... ..... .... .... ......... .......... .... ....... ...... .... ... ......... ............ ........ ...... ..... ...... .., ....... ... ... ... ....... .... .... ..........0 rgj (If yes, describe on Schedule F the partnerships and what they invest in.) Answer all items. Complete amended pages in full, circle items and file with execution page (page]) I SEC File Number 801-62264 I Date: March 1, 2006 FORM ADV Part II - Page 5 I Applicant: Davidson Fixed Income Management, Inc. 9. Participation or Interest in Client Transactions. Applicant or a related person: (check those that apply) ~ ~ ~ A. As principal, buys securities for itself from or sells securities it owns to any client. B. As broker or agent effects securities transactions for compensation for any client. C. As broker or agent for any person other than a client effects transactions in which client securities are sold to or bought from a brokerage customer. ~ D. Recommends to clients that they buy or sell securities or investment products in which the applicant or a related person has some financial interest. ~ E. Buys or sells for itself securities that it also recommends to clients. (For each box checked, describe on Schedule F when the applicant or a related person engages in these transactions and what restrictions, internal procedures, or disclosures are used for conflicts of interest in those transactions.) 10. Conditions for Managing kcounts. Does the applicant provide investment supervisory services, manage investment advisory accounts or hold itself out as providing financial planning or some similarly termed services Yes No and impose a minimum dollar value of assets or other conditions for starting or maintaining an account? ...................................... 181 0 (If yes, describe on Schedule F.) 11. Review of Accounts. If applicant provides investment services, manages investment advisory accounts, or holds itself out as providing financial planning or some similarly termed services: A. Describe below the review and reviewers of the accounts. For reviews, include their frequency, different levels, and triggering factors. For reviewers, include number of reviewers, their titles and functions, instructions they receive from applicant on performing reviews, and number of account assigned each. Cash Manaaement: Cash Management accounts are reviewed by Scott Prickett, Glenn Scott and Deanne Woodring on a daily basis for maturing securities and for opportunities to reposition a portfolio because of a changing market. All reviews and recommendations for purchase or sale are based on the investment strategy and wishes of the client as outlined in the contract and/or its investment policy. All accounts are reviewed at bi-weekly meetings where the Cash Management team also discusses the direction of the market and if there are any changes that should be recommended to clients as a result of a changing market. Colorado Surplus Asset Fund Trust ("CSAFE"): The firm serves as investment adviser and administrator to CSAFE, a local government investment pool operating under Colorado Statutes. This account is reviewed daily and statements are delivered monthly. Tax Free Fund of Colorado CTFFC"): The firm serves as sub-advisor to the Tax Free Fund of Colorado. This account is reviewed daily and a report is provided to the Board ofTrustees on a quarterly basis. Reviewers: Scott Prickett- Cash Management, Managing Director- Portfolio Manager, 17 accounts Glenn Scott - Cash Management, Portfolio Manager, 13 accounts Deanne Woodring - Managing Director- Portfolio Manager, 6 accounts Christopher Blackwood - CSAFE, Portfolio Manager, 1 account Chris Johns - TFFC, Portfolio Manager, 1 account B. Describe below the name and frequency of regular reports to clients on their accounts. For Cash Management accounts, monthly and/or quarterly reports are tailored to the requirements of each client and each portfolio. We provide the following reports to clients on a monthly basis: Performance and Account Summary, Maturity Distribution and Portfolio Diversification graphs, Investment Portfolio Details, Purchases and Sales Reports, Capttal Gains and Losses, Received Interest Payments, Accrued Interest, Interest Earnings and Interest Earnings Summary. These reports are delivered to clients via U.S. mail or are posted to ourwebsite for online access by clients. Specialized reports for GASB 31 and GASB 40 requirements are provided on a fiscal year and/or quarterly basis. For CSAFE, monthly statements are provided to customers and quarterly reports are provided to the CSAFE Board of Trustees. Forthe TFFC, a quarterly report is provided to the Fund Manager. Answer all items. Complete amended pages in full, circle items and file with execution page (page I) FORM /lDV Part /I - Page 6 Applicant: Davidson Fixed Income Management, Inc. SEe File Number 801-62264 Date: March 1, 2006 12. Investment or Brokerage Discretion. A. Does applicant or any related person have authority to determine, without obtaining specific client consent, the: Yes No (1) securities to be bought or sold? .......................................................................................................................................... [8J 0 (2) amount of the securities to be bought or sold?................................................................................................................... [8J 0 (3) broker or dealer to be used? ............................................................................................................................................... [8J 0 (4) commission rates paid? ...................................................................................................................................................... [8J 0 B. Does applicant or a related person suggest brokers to clients? .............................................................................................. [8J 0 For each yes answer to A describe on Schedule F any limitations on the authority. For each yes to A(3), A(4) or B, describe on Schedule F the factors considered in selecting brokers and determining the reasonableness of their commissions. If the value of products. research and services given to the applicant or a related person is a factor, describe: the products, research and services whether clients may pay commissions higher than those obtainable from other brokers in return for those products and services whether research is used to service all of applicant's accounts or just those accounts paying for it; and · any procedures the applicant used during the last fiscal year to direct client transactions to a particular broker in return for products and research services received. 13. Additional Compensation Does the applicant or a related person have any arrangements, oral or in writing, where it: A. is paid cash by or receives some economic benefit (including commissions, equipment or non-research Yes No services) from a non-client in connection with giving advice to clients?............................................................................................ [8J 0 B. directly or indirectly compensates any person for client referrals?.................................................................................................... [8J 0 (For each yes, describe the arrangements on Schedule F.) 14. Balance Sheet. Applicant must provide a balance sheet for the most recent fiscal year on Schedule G if applicant: has custody of client funds or securities; or requires prepayment of more than $500 in fees per client and 6 or more months in advance Yes No Has applicant provided a Schedule G balance sheet? .............................................................................................................................0 [8J Answer all items. Complete amended pages in full, circle items and file with execution page (page 1) Schedule F of Applicant: SEe File Number Date: FORM ADV Continuation Sheet for Form /JOV Part II Davidson Fixed Income Management, Inc. 801-62264 March 1, 2006 (Do not use this Schedule as a continuation sheet for Form ADV Part I or any other schedules.) 1. Full name of applicant exactly as stated in Item 1A of Part 1 of Form AD V: Davidson Fixed Income Management, Inc. IRS Empl. Ident No.: 47-0844423 Item on Form (identity) Answer 1. D. Advisory Services and Fees Structured Investments Davidson Fixed Income Management, Inc. ("DFM") provides investment advice for the investment of bond proceeds togovemmental and non-plOfit entities and investment bankers on behalf of their clients. These structured investments may be in laddered securities, but t;pically we recommend investment agre6l1ents, repurchase agreements and guaranteed investment contracts. The providers of these agreements are banks, primaiY dealers, credit corporations and insurance companies. Our fees are negotiable based on the parameters of the invesinent, i.e., amount invested, term and complexity of structure. IRS guidelines (26 CFR Part 1 under section 148 of the Internal Revenue Code) sets the per investment safe harbor at 0.2 percent of the investment amount with a minimum fee of $3,000 and a madmum fee of $32,000 per investment. The per issue safe harbor is $90,000. Bid specifications are delivered to a minimum of three investment providers. The bid is awarded to the investment provder (with a conforming bid) that has the highest interest rate. The provider pays our fee out of its interest rate bid. Wlen the bid is awarded, we produce a confirmation that outlines the parameters of the investment and our fee. This confirmation is sent to and approved by the investment provider and an authorized representative of the client. The actual amount of ourfee is disclosed in the investment contract, which in this case would be a repurchase agreement. In the event that the client rejects all bids then no fee Vlill be paid to DFIM. DFIM solicits bids for all bond proceeds investments on a non-discretionalY basis. We do not act as principal in any transaction and all monies and/or securities are transferred directly between the trustee or custodian acting on behalf of the client (governmental or non-profit entity) and the investment provider. Cash ManaQement Services DFIM provides investment advisory services including Investment Policies & Procedures, cash flow analysis, portfolio analysis & design, review of bank services and fees, establishment of custodial relationships, ca:;h management and reporting. We have in-house software (Sympro, Advent and Excel) and Bloomberg for tracking and reporting portfolio analysis, portfolio management, and cash f1owanalysis. Our fees range from 3.5 to 20 basis points on the amount of the portfolio. For certain accounts, a minimum annual fee of $1 0,000 is established. OU' fees are fully negotiable and are written into the contract for services. The contract is cancelable by either party on 30 days written notice. Fees are billed and payable monthly or quarterly in arrears. Colorado Surplus Asset Fund Trust ("CSAFE") Services DFIM serves as the investment adviser and administrator to CSAFE, a Colorado local government investment pool. CSAFE is authorized by the Colorado State Statutes and is regulated by the Colorado Division of Securities. DFIM does not take custody of securities for CSAFE. CSAFE is managed on a discretionary basis and invests in U.S. Treasuries, U.S. Agencies, commercial paper, money market funds and bank deposits. All securities must havea final maturity of 397 days or less. The fee for managing CSAFE is tiered, 18 basis points for assets less than $200 million and 15 basis points for assets greaer than $200 million. The CSAFE contract is cancelable by either party with 30 days written notice. Fees are billed monthly and payable in arrears. Answer all items. Complete amended pages in full, circle items and file with execution page (page 1) Schedule F of Applicant: SEe File Number Date: FORM ADV Continuation Sheet for Form IOV Part II Davidson Fixed Income Management, Inc. 801-62264 March 1, 2006 (Do not use this Schedule as a continuation sheet for Form ADV Part I or any other schedules.) 1. Full name of applicant exactly as stated in Item 1A of Part 1 of Form ADV: Davidson Fixed Income Management, Inc. IRS Empl. Ident No.: 47-0844423 Item on Form (identify) Answer Tax Free Fund of Colorado DFIM serves as the sub-advisor to the Tax Free Fund of Colorado, a municipal bond mutual fund. DFIM provides portfolio management services to the Fund Manager, Aquila Management. DRM receives an annualized fee equalto 0.20% of the assets in the portfolio. Tvpes of Clients - Other 2. G. 1. Non-profit organizations and governments such as school distrds, water and sel.\er districts urban renewal authorities, hospitals, cities and CDunties. We provide investment advice and services as described in 1 A( 1). 2. Investment Banker/Financial Advisor/Register Investment Advisers. We recommend placement of bond proceeds (i.e., Debt SerYce Reserve funds, Construction R.mds) on behalf of the clients of investment bankers or financial advisors according to the guidelines in the client's trust indenture and applicable state statutes. On certain transactions the firm utilizes solicitors to provide access to client. Solicitation agreerrents are signed in advance of any transaction and a fee sharing disclosure document is signed by the client. We also provide business consulting servicesto registered investment advisors. 3. L. Tvpes of Investments - Other Guaranteed Investment Contra::t - The insurance industry has a product called a "Guaranteed Investment Contact" (GIC). It is similar to its "Group Annuity Contract" except it is used for non-qualified funds. Investment Agreement - These are contracts vvith banks or corporations ("Providers"). They may pay a fixed or a floating rate and have a sated maturity date. The client can access money in the account as noted in the contract. The Providers we recommend are all in the top three rating categories ofS&P, Moody's or other nationally recognized rating agencies. The Providers also must qualify under the requirements of any applicable bond indenture, state statute or intemal investment policy. Repurchase Agreement - These have the same characterstics as an Investment Agreement except that they are written by primary dealers, banks, or other qualifying financial institutions or corpOlations, and the contract provides for the purchase and sale of securities as collateral for the amount of the irvestment. The collateral is held by a trustee or third party on behalf of the client. Interest Rate Swaps - The firm serves as an adviser to clients on interest rate sv.aps. The firm does not act as principal in any swap transaction. 4. B (8). Analvsis, Information and Strateqies - Other We subscribe to Bloomberg Financial Markets, Informa, Bond Edge, Stone McCarthy and Economy.com. Answer all items. Complete amended pages in full, circle items and file with execution page (page I) Schedule F of Applicant: SEe File Number Date: FORM ADV Continuation Sheet for Form PDV Part II Davidson Fixed Income Management, Inc. 801-62264 March 1, 2006 (Do not use this Schedule as a continuation sheet for Form ADV Part I or any other schedules.) IRS Empl. Ident No.: 47-0844423 1. Full name of applicant exactly as stated in Item 1A of Part 1 of Form ADV: Davidson Fixed Income Management, Inc. Item on Form (identify) Answer 4. C(7) Other Bond Proceeds - Review bond inden1ure, internal policies and appicable state statutes for allowable investments. We assess market cond~ions by receiving indicative pricings from investment providers. We compare findings wth parameters of a bond issue to determine investment products and structJre which best meets the needs and objectives of clients within their specified guidelines for safet)( liquidity and yield. 5. Education and Business Standards All our investment professbnals are required to have a related bachelor's degree and a minimum of 5 years experience in either investment consulting, investment banking or accounting. SAMUEL CHARLES DOYLE Education and Business Backqround 6. Birth Date: Business: 1947 Davidson Fixed Income Management, Inc. - 2003-present President Kirkpatrick, Pettis, Smith, Polian Inc. - 1991-2004 EVP, Manager Public Finance Davidson Fixed Income Management, Inc. - 2003-Present President CHRISTOPHER KEITH BLACKWOOD Birth Date: Education: Business: 1957 University of Colorado - B.A. and MA Economics Davidson Fixed Income Management, Inc. - 2003-present Managing Director, Chief Compliance Officer Kirkpatrick, Pettis, Smith, Polian Inc. - 2000-2004 SVP, Public Finance Banker Bigelow & Company - 1995-2000 Public Finance CHARLES RONALD LANGHOFF Birth Date: Education: Business: 1946 University of Nebraska - B.A. Harvard Business School - MBA Davidson Fixed Income Management, Inc. 2003-Present Senior Vice President, Structured Investments Kirkpatrick, Pettis, Smith Polian Inc. - 2001-2004 SVP, Structured Investments Langhoff Brooks & Company- 1989-2001 President Answer all items. Complete amended pages in full, circle items and file with execution page (page 1) Schedule F of Applicant: SEe File Number Date: FORM ADV Continuation Form for Form PDV Part II Davidson Fixed Income Management, Inc. 801-62264 March 1, 2006 (Do not use this Schedule as a continuation sheet for Form ADV Part I or any other schedules.) 1. Full name of applicant exactly as stated in Item 1A of Part 1 of Form ADV: Davidson Fixed Income Management, Inc. IRS Empl. Ident No.: 47-0844423 Item on Form (identify) Answer 6. (continued) SCOTT DAVID PRICKETT Birth Date: 1963 Education: University of Northern Colorado - B.S. Business: Davidson Fixed Income Management, Inc. - 2003-Present Managing Director, Senior Portfolio Manager Kirkpatrick, Pettis, Smith, Polian Inc. - 2001-2003 Cash Management Langhoff Brooks & Company- 1995-2001 Portfolio Management GLENN EUGENE SCOTT Birth Date: 1963 Education: University of Colorado - B.S. and M.A. Business: Davidson Fixed Income Management, Inc. - 2003-Present VP, Portfolio Manager Kirkpatrick, Pettis, Smith, Polian Inc. Cash Management 2001 - 2003 Langhoff Brooks & Company- 1998-2001 CHRISTOPHER B. JOHNS - Birth Date: 1957 Education: University of Cincinnati - B.S.BA Business: Davidson Fixed Income Management, Inc. - Senior Vice President 2005-Present Kirkpatrick Pettis Investment Management, Inc Senior Vice President 2001-2004 KPM Investment Management, Inc. First Vice President 1994-2001 DEANNE WOODRING Birth Date: 1960 Education: University of Oregon - B.S. Rnance University of Oregon - MBA Certification: Chartered Financial Analyst - 1989 Business: Davidson Fixed Income Management, Inc. - Managing Director 2006-Present D.A. Davidson & Co. Managing Director 2002 - 2005 Piper Jaffray Senior Vice President 1986 - 2001 DAVE WESTCOTT Birth Date: 1955 Education: Lewis and Clark College B.S. Business Admin Certification: Chartered Financial Analyst - 1989 Business: Davidson Fixed Income Management. Inc. - Managing Director 2006-Present DA Davidson & Co. Managing Director 2002 - 2005 Piper Jaffray Senior Vice President 1986 - 2001 Answer all items. Complete amended pages in full, circle items and file with execution page (page] ) Schedule F of Applicant: SEe File Number Date: FORM ADV Continuation Sheet for Form /!DV Part II Davidson Fixed Income Management, Inc. 801-62264 March 1, 2006 (Do not use this Schedule as a continuation sheet for Form ADV Part I or any other schedules.) 1. Full name of applicant exactly as stated in Item 1A of Part 1 of Form ADV: Davidson Fixed Income Management, Inc. IRS Empl. Ident No.: 47-0844423 Item on Form (identify) Answer 6. (continued) SALLY WALTON Birth Date: Education: Business: 1960 Willamette College BA Political Science Davidson Fixed Income Management, Inc. - Vice President 2006-Present DA Davidson & Co. Vice President 2002 - 2005 Piper Jaffray Vice President 1986 - 2001 Other Financiallndustrv Affiliations 8. C(1) DFIM is a wholly-owned subsidiary of Davidson Companies, a financial services holding companywith a broker/dealer subsidiary, DA Davidson & Co. 8. C(3). 8. C(6). Davidson Companies OWlS Davidson Investment Advisors, a registered investment advisor. Davidson Companies OWlS Davidson Trust Co., a federal savings bank. Participation or Interest in Client Transactions 9.A. Affiliated firms (Davidson Investment Advisors and D.A. Davidson & Co.) effect principal transactions for clients or their OWl account. DFIM does not act as principal on any transactions. 9. B. In the process of providing feebased advisory services, DFIM provides advice regarding securities transactions for clients and receives fees from the client. When providing fee-based advisory services, DFIM does not receive transaction-related compensation. DFIM is an affiliate of a NASD member broker/dealer. DFIM sells money market mutual funds. All funds are sold on a "no-load" basis. HOV\ever, the firm does receive compensation from money market mutual funds either as marketing fees paid from the ovel8l1 management fee of the fund or from 12-B1 fees. All fees are dsclosed to the client and are paid in accordance wth the provisions outlined in the prospectus of each fund. If DFIM has a contract for investment services with a client who also purchases money market mutual fund shares through the boker/dealer, the B/D either v.aives all fees due from the fund investments or DFIM waives its investment management fees for the funds invested in the money market fund. The option is the dient's and is disclosed in witing. DA Davidson & Co. effects securities transactbns for compensation as agent or broker for its clients. 9. C. DA Davidson & Co. effects cross transactions beween client accounts. These transactions are not related to any activity of DFIM. 9. D. DA Davidson & Co. may recommend security transactions for products iil Vlhich it has a financial interest. DFIM is not party to any of these transactions. 9. E. DA Davidson & Co. may effect security transactions for itself that it has recommended to clients. DFIM is not party to, or knowledge of, any of these transactions and anyDFIM client ownership of DA Davidson & Co. recommended securitypurchases is merely coincidental. Answer all items. Complete amended pages in full, circle items and file with execution page (page 1) Schedule F of Applicant: SEe File Number Date: FORM ADV Continuation Sheet for Form /lDV Part II Davidson Fixed Income Management, Inc. 801-62264 March 1, 2006 (Do not use this Schedule as a continuation sheet for Form ADV Part I or any other schedules.) 1. Full name of applicant exactly as stated in Item 1A of Part 1 of Form ADV: Davidson Fixed Income Management, Inc. IRS Empl. Ident No.: 47-0844423 Item on Form (identify) Answer 12. A.(1). Investment or Brokeraqe Discretion All securities bought and sold for each DRM client must comply with current investment policies approved by the client. Current inves1ment policies are maintained for every client, and reviev..ed and approved by the client on an annual basis. 12. A.(2). Amount of securities bought or sold must fall Wthin the guidelines of the client's investment policy (see above). 12. A(3). When circumstances allow, our portfolio manages solicit quotes from a minimum of three securities brokers in order to deliver the bes price for the client given prevailing market conditions. Our portfolio managers include an intErnal list of approved brokers or the list may be derived from client's list of approved brokers. We advise the client to purchase the security from the broker with the best price. At the direction of some clients, acting as agent, we solicit competitive bids and deliver the securities to D.A. Davidson & Co. In these instances, DA Davidson & Co. does not charge anycommissions. 12. A(4). Best execution within current rate levels keeps broker commissions in check. The only type of securities v..e purchase or sell on behalf of the client are: U.S. treasuries, U.S. agency securities, the highest rated commercial paper, corporate bonds in the tv.o highest rating categories and bank certificates of deposit. (We do not buy or sell equity securities.) 12. B. DFIM's primary considerations for selecting brokers are as follov.s: -efficient execution --efficient trade settlement --above minimum net capita requirements ($10,000,000) --ten year history (Also see ansv..erto 12. A(3) above) An affiliated firm, Davidson Investment Advisor~ recommends brokers to its clients. In the event that the client selec1s D.A. Davidson & Co., the commission is reduced to the client compared to the standard commission schedule. Davidson Investment Advisors also has procedures to provide best execution ttrough aggregating orders or through broker selection. Davidson Investment Advisors hasa number of trading relationships, both formal and informal with equity and fixed income brokers. 13. A. Additional Compensation The DFIM fee for the placement of bond proceeds is generally paid by the provider of the investment. This fee is part of the bid and is disclosed to all parties involved in the transaction. We include the fee on confirmations and it is ircluded in the contract for the investment. DA Davidson receives economic benefit from non-clients from proliding advice to client. This activity is not related to DFIM. 13.B. DFIM has solicitation agreements wth various individuals or firms for all of its services. The solicitors are paid a portion oftleDFIM fee and/or receive a montlly retainer. The DFIM fee schedule is not increased when a solicitor is utilized. Solicitation agreements and fee sharing disclosures are implerrented on all transactions using a solicitor. All fees are disclosed. . Answer all items. Complete amended pages in full, circle items and file with execution page (page 1) Schedule F of Applicant: SEe File Number Date: FORM ADV Continuation Sheet for Form ADV Part II Davidson Fixed Income Management, Inc. 801-62264 March 1, 2006 (Do not use this Schedule as a continuation sheet for Form ADV Part I or any other schedules.) 1. Full name of applicant exactly as stated in Item 1A of Part 1 of Form ADV: Davidson Fixed Income Management, Inc. IRS Empl. Ident No.: 47-0844423 Item on Form (identify) Answer 13. B. (continued) DFIM also receives statement reporting fees for producing staements for certain clients. This fee is a separate fee from its investment advisory fee. DFIM provides business consulting services to oher registered investment advisors. Fees are paid based on monthly fee schedule orhourly billing depending on the project. An affiliated firm, Davidson Investment Advsors, has solicitation agreements with a number of firms and individuals. These agreements are notrelated to any business activity of DFIM. Answer all items. Complete amended pages in full, circle items and file with execution page (page 1) ~ CERTIFICATE OF liABILITY INSURANCE I DATE (MMlDDIYYYY! 08/31/2006 'RODUCER (720) 524-9344 FAX (720)524-9352 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION Co West Insurance Associates ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE P.O. Box 101387 HOLDER. THIS CE~TIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Denver, CO 80250-1387 Steve Clemens INSURERS AFFORDING COVERAGE NAle # PoISURED Davidson Flxed Income Management, Inc. INSURER A: St. Paul Companies (FKA: Kirkpatrick Pettis Capital Mgmt., Inc.) INSURER 8: 1600 Broadway, 11100 INSURER C: Denver, CO 80202 INSURER D: INSURER E: THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE-AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO AlL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. ~i1:~l TYPE OF INSURANCE POUCY NUMBER POUCY EFFEC1TVE POlJC'( EXPlRAllON UlllTS GENERAL UABlUTY EACH OCCURRENCE $ - DAMAGE TO RENTED COMMERCIAL GENERAL LIABILITY $ I CLAIMS MADE 0 OCCUR MED EXP (Anyone penon) s -- - ' -- - ~-- .. -- -- -~~ ~ .' PERSONAL & ADV INJURY $ - GENERAL AGGREGATE S - GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG $ I POLICY n ~rg: n LOC AUTOUOBlLE UA8lUTY COMBINEO SINGLE LIMIT - (Ea accident) $ ANYAtlTO - ALL OWNED AUTOS BODILY INJURY f-- (Pet person) S SCHEDULEO AUTOS f-- HIRED AUTOS BODILY INJURY I-- (Per accicIent) $ NON-OWNEO AUTOS ~ I-- PROPERTY DAMAGE $ (Per IICCidentl GARAGE UABlUTY AUTO ONLY - EA ACCIDENT S R PJlY AUTO OTHER THAN EA Ace s At1TO ONLY' AGG $ EXCESSlUMBRELLA LIABILITY EACH OCCURRENCE S tJ OCCUR 0 CLAIMS MADE AGGREGATE $ $ R DEDUCTIBLE $ RETENTION $ $ WORKERS COMPENSATION AND I we STATU-, I IO~. EMPLOYERS' LIABIUTY E,L. EACH ACCIDENT S ANY PROPRIETORIPARTNERlEXECUTIVE OFFICERlMEMBER EXCLUDED? E-L. DISEASE - EA EMPLOYEI S If ~. describe under E.L. OISEASE - POLICY LIMIT $ S ECIAl PROVISIONS below lfr,THER d . 583CM0610 04/12/2006 04/12/2007 $5,000,000 Limi~ of Liability A nvestment a Vlsors 250,000 retention Professional Liability DESCRlPllON OF OPERAllONS I LOCA l10NS I VEHICLES I EXCLUSIONS ADDED BY ENDORSEIIENT / SPECIAL PROYI8IONS City of Bremerton Cathy Johnson, Finance Officer 345 6th St., 1600 Bremerton, WA 98337 SHOULD AMY OF THE ABOVE DESCRIBED POLICIES BE CANCaLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAlL ~ OAYS WRfTT1:N NOTlCE TO THE CERllFlCATE HOLDER NAMED TO THE LEFT, BUT FALURE TO NOTICE S "PO NO OBLIGATION OR L1ABIUTY AG REpRESENTATIVES. ACORD 25 (2001108) Client#: 12668 S Ok DAVIDSON4 ACORDTM CERTIFICATE OF LIABILITY INSURANCE DATE(MM/DD/YYYY)os/26/2013 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 certificate 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),,---,,R nt nr=r� PRODUCER `V I-']LV CONTACT PayneWest Insurance, Inc. PHONE - FAX (A/C,No,Ext): (A/C,No): P.O. Box 3327 E-MAIL SEP 3 0 2013 145 West Front Street ADDRESS: INSURER(S)AFFORDING COVERAGE NAIC# Missoula, MT 59806-0638 INSURER A:Axis Surplus Insurance Company 4 INSURED uG + i{y Ui vrcinc INSURER B Davidson Fixed Income ManagementNlnc9gement INSURER C: t r� P.O. Box 5015 �d Great Falls, MT 59403 INSURER D: vvv INSURER E: 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 REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE ADDLSUBR POLICY EFF POLICY EXP LIMITS LTR INSR WVD POLICY NUMBER (MM/DD/YYYY) (MM/DD/YYYY) GENERAL LIABILITY EACH OCCURRENCEE $ COMMERCIAL GENERAL LIABILITY PREMISES(pEa oNcur ence) $ CLAIMS-MADE OCCUR MED EXP(Any one person) $ . PERSONAL&ADV INJURY $• GENERAL AGGREGATE $ 1 GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS-COMP/OP AGG $ POLICY PRO- JECT LOC $ AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT (Ea accident) $ ANY AUTO BODILY INJURY(Per person) $ ALL OWNED SCHEDULED BODILY INJURY(Per accident) $ AUTOS AUTOS NON-OWNED PROPERTY DAMAGE $ HIRED AUTOS AUTOS (Per accident) • $ UMBRELLA LIAB OCCUR EACH OCCURRENCE $ EXCESS LIAB CLAIMS-MADE AGGREGATE $ DED RETENTION$ $ WORKERS COMPENSATION WC STATU- OTH- AND EMPLOYERS'LIABILITYY/N TORY LIMITS ER ANY PROPRIETOR/PARTNER/EXECUTIVE E.L.EACH ACCIDENT $ OFFICER/MEMBER EXCLUDED? I N/A (Mandatory In NH) - -- . ' -`E:L-DISEASE-EA"ENii'COYtE $" If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT 1$ A Professional ELN708207012013 10/01/2013 10/01/2014 $5,000,000/$5,000,000 Liability • DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES(Attach ACORD 101,Additional Remarks Schedule,it more space is required) Re: Investment Advisory Agreetment PROFESSIONAL LIABILITY LIMITS:$5,000,000 PER CLAIM/$5,000,000 AGGREGATE. • (REQUESTED BY VINCE LAMARCA) CERTIFICATE HOLDER CANCELLATION Cityof Bremerton SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN 345 6th Street,Suite 600 ACCORDANCE WITH THE POLICY PROVISIONS. Bremerton,WA 98337 , AUTHORIZED REPRESENTATIVE I f /5444..— ©1988-2010 r..—©1988-2010 ACORD CORPORATION.All rights reserved. ACORD 25(2010/05) 1 of 1 The ACORD name and logo are registered marks of ACORD #5970839/M970833 1 NS