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changes to the policy. The changes are meant to clarify the City's existing policy and strengthen certain areas by adding or changing language. Mayor Cassidy asked how many advisors the City uses. Vesely stated that there is one advisor, Chandler & Associates however the City also has money with Local Agency Investment Fund (LAIF). Mayor Cassidy recommended that the City establish a policy in reviewing other possible advisors every 4 -5 years and asked that staff report back to the Committee later on this year on what staff deems an appropriate time period. Recommendation to City Council The Committee recommends City Council approval of San Leandro's Investment Policy for fiscal year 2011 -12. 3. Presentation and Discussion Regarding Quarterly Investment Report Budget & Compliance Manager Perini reported on the investment status of the City for the quarter ended March 31, 2011. The City's investment portfolio had a market value of $82.9 million, an increase of $5.3 million from the previous quarter reported. Of this amount, $55.0 million is with LAIF and $27.9 million is with the Chandler Asset Management program. Perini stated that the increase is due to the property tax revenues that were collected in December 2010 and received in January 2011. Perini explained that although safety is the main concern of the City, the yield rate is showing a slight increase and therefore is a sign of recovery and LAIF investments are also showing signs of improvement. 4. Update on External Auditor & Financial Advisor Selections Vesely explained that after 5 years of working with our previous auditor, staff conducted a Request for Proposal (RFP) and selected a new auditing firm that met the criteria and would best suit the needs of the City. Vesely stated that it is a best management practice to conduct an RFP every 5 years for external audit services. The City received eight proposals. Staff conducted telephone interviews of the initial eight respondents and narrowed the field down to four finalists. The four firms were asked to assemble their full audit team and participated in an interview with five Finance Department staff. After review and consideration, Maze and Associates has been selected. Maze and Associates has received excellent references and is well experienced in both the private and public sector. Agencies that have worked with Maze and Associates (and are similar to the City of San Leandro's structure) include the City of Palo Alto, City of Alameda, and the City of Livermore. Mayor Cassidy asked how much was paid to our prior auditing firm. The average cost was $55,000 per year and this is increased by a modest escalator for each succeeding year. Vesely advised the Committee that the City has issued an RFQ for a Financial Advisor to assist the City with financing projects. The previous Financial Advisor was Emily Wagner and she is now the Finance Director for the City of Pleasanton. The City received 7 proposals from reputable firms and, after initial review, narrowed the candidates down to three firms that will be interviewed by a panel of City staff over the next week. The Financial Advisor may assist in the possible bonding for the Crossings project as well the refinancing the Public Safety Side Fund. The possibility of conducting a RFP for underwriting services is in the future as well. Recommendation for City Council 2