MaxQ AnalyticsMARCH 27, 2024
3857 Birch St
Suite #5053
Newport Beach, CA 92660
(949) 468-3710
Analvt�ics
3857 Birch St, Suite #5053, Newport Beach, CA 92660 1 (949) 468-3710 1 Iklinghoffer@maxganalytics.com @� aQ ;CS
March 27, 2024
City of La Quinta
Attn: Rosemary Hallick, Principal Management Analyst
78495 Calle Tampico
La Quinta, CA 922553
Dear Ms. Hallick:
MaxQ Analytics, LLC ("MaxQ") is pleased to respond to the City of La Quinta (the "City") Request for Proposals for
Investment Reporting and Analytics Software ("UP"). The primary key team members and key back-up personnel
including their originating location are listed below.
City of La
Name Telephone
Quinta MaxQ Personnel
E-mail:
Mailing Address
Jason Klinghoffer, CFA
Principal
0: (949) 468-3710
iklinghoffer@maxqnanalytics.com
3857 Birch St, Suite 5053
Newport Beach, CA 92660
Deep Chaudhry
Secondary Contact
0: (949) 468-3710
dchaudhry@maxqanalytics.com
3857 Birch St, Suite 5053
I Newport Beach, CA 92660
I
MaxQ is a limited liability company domiciled and registered in California with headquarters in Newport Beach where
the services will be conducted. MaxQ confirms that all information and pricing provided in the proposal is valid for at
least ninety (90) days, and Jason Klinghoffer, CFA is free of any conflict of interest.
Please find enclosed our completed questionnaire including all requested attachments.
We thank the City for its consideration and the opportunity to present our qualifications. Please feel free to visit us on
our website at https://www.maxganalytics.com. Should you need additional information, do not hesitate to contact
me.
Sincerely,
Jason Klinghoffer, CFA
Principal
Headquarters: Newport Beach, CA 92660 1 (949) 468-3710 1 www.maxganalytics.com
4
Table of Contents
CoverLetter.........................................................................................................................
Firms Background, Qualifications, and Experience........................................................
2
2. Scope of Services ......... ......... ......... .....................................................................
3
3. Government Agencies References ............................................
4
4. Complete Pricing List or Fee Schedule .........................................
5
5. List of Complementary Services Offered by Proposer along with Corresponding
5
Prices....................................................................................................................................
6. Staffing and Project Organization ............................................. ........................................
5
7. Subcontracting Services.....................................................................................................
5
8. Disclosures...........................................................................................................................
5
9. Acknowledgement of Insurance Requirements (Attachment 2)..................................
5
10. Non -Collusion Affidavit (Attachment 3)......... ......... ..............................................
5
11. Acknowledgement of Addenda (Attachment 4)..........................................................
5
Attachments(1-4)............................................................................................................................
6
Appendices:
AppendixA: MaxQ W-9 Form......................................................................................................... A-1
AppendixB: Resumes....................................................................................................................... B-1
Appendix C: MaxQ Fee Schedule and Complementary Services with Corresponding Prices. C-1
1
Signed by an official authorized to bind the firm with name, address, phone number, and email address of firm's
contract person, location of firm's main office, location of the office that would service this project, a validity
statement that all information and providing provided in the proposal is valid for at least ninety (90) days, and a
statement that any individual who will perform work for the City is free of any conflict of interest.
Please see above Cover Letter.
Firms Background, Qualifications and Experience, including the following:
(a) Legal name of Company and if incorporated, the state in which the company is incorporated and the date of
incorporation.
MaxQ Analytics, LLC is a limited liability company domiciled and registered in California with headquarters in Newport
Beach. Articles of Organization were submitted and accepted on January 24, 2022.
(b) If the firm is a subsidiary of a parent company, identify the parent company
MaxQ Analytics, LLC does not have a parent company and is not a subsidiary of any entity.
(c) Taxpayer Identification Number (a W-9 will be required should proposer be selected)
Employer Identification Number: 87-4702363. Please see Appendix A for MaxQ's W9 form.
(d) Number of years in business and/or number of years providing the services described in this RFP
MaxQ has been providing services since 2015, but the PEAR platform used to fulfil the requirements of this RFP was
launched with the new company in 2022 making our new platform just over two years old.
(e) Resumes of the Project Manager or key personnel who will be responsible for performance if any agreement
results from this RFP
Please see Appendix B.
(f) Summarize the firm, its structure and product lines, and the software being offered
MaxQ Analytics is a Software as a Service (SaaS) platform providing next -generation financial modeling for front and
back -office solutions in public treasury management. Since 2015, MaxQ has been serving clients and providing insight
with portfolio analytics, cash -flow forecasting, strategy development, benchmarking, asset -liability management, pre-
purchase evaluation and more. With the introduction of PEAR in early 2022, MaxQ Analytics is quite literally changing
the standard of how portfolio evaluation and reporting is performed in the public treasury space.
Portfolio Evaluation, Accounting & Reporting — (PEAR) provides a complete back-to-front office solution by utilizing a
"pie -based" approach allowing for separate administration of tasks across cash and trade entry, accounting,
transaction reconciliation, portfolio evaluation and reporting. With features like automated security setup and
transaction verification, PEAR makes managing the treasury investment process simple and efficient from start to
finish.
Our mission is to Provide best -in -class portfolio evaluation, accounting and reporting tools for state and local
government treasury professionals. We understand public fund portfolio managers exist in a unique space that requires
a unique understanding of the goals and objectives for their mission. Our focus on asset -liability management (ALM)
ensures the MaxQ platform guides investing with safety and liquidity as primary objectives.
At its heart, MaxQ is a portfolio management platform made specifically for government treasury investing. It was built
with a unique ALM based duration -optimization model for creating portfolio asset allocations, managing liabilities/cash
flow expectations and guidance for making sound and tactical investment decisions. We are the only platform in the
government investment space that, along with accounting and reporting, provides the tools and resources to make
your next investment decisions with objective and sound analytical guidance. This greatly distinguishes us from the
competition.
For additional information please visit us at https://www.maxganalytics.com
2
Signed by an official authorized to bind the firm with name, address, phone number, and email address of firm's
contract person, location of firm's main office, location of the office that would service this project, a validity
statement that all information and pricing provided in the proposal is valid for at least ninety (90) days, and a
statement that any individual who will perform work for the City is free of any conflict of interest. Describe the
software, its platform and/or delivery:
(a) Is software desktop/local or cloud based?
MaxQ Analytics is hosted in the Microsoft Azure cloud and is a Software -as -a -Service (SaaS) cloud -based solution. All
access to our platform will occur through Google Chrome, Firefox, Safari, Microsoft Edge or Internet Explorer.
(b) How frequently is the software updated?
MaxQ is updated and enhanced on an on -going basis. The core calculation engine is updated twice a year, and each
model solution is updated based on need or as additional improvements are rolled out by our team.
(c) Describe the technology or system requirements including servers/memory/storage if applicable.
MaxQ utilizes a highly efficient, world -class calculation engine called Quantrix to perform the complex and often
tedious tasks the system requires. Owned by Fortune 100 member Danaher corporation, this powerful and flexible
multi -dimensional calculation engine is the same engine powering some of the world's leading biomedical and life
sciences research platforms today. With the ability to handle billions of data points and efficiently connect to our
integrated SQL databases, the Quantrix calculation engine is an epic step forward in enterprise level research and data
analytics.
(d) If cloud-based/hosted, please list how many times over the past two years the system was unavailable to clients.
Describe the back-up system in place, including disaster recovery or business continuity plans. Describe all security
measures and disclose any hosting partners if applicable.
System up -time through the Azure Cloud has been shown to be 99.99% for access to Azure resources. Because our
platform calculation engine is required to be updated twice a year, we have planned outages lasting two to three hours
on the tail end of a selected business day (between 12pm and 3pm Pacific usually). We typically do these updates on
a Friday in the middle and the end of the year. On a few occasions we have seen short term outages (lasting 15 to 30
mins) due to server API connectivity issues and model server/hosting application resets.
MaxQ employs full system backups at 11pm daily and retains these backups for 90 days. These system backups allow
us to completely restore the operating environment on any virtual machine in any hosted cloud environment. This
gives us the ability to restore services on completely different hardware should any catastrophe occur. We also employ
full SQL database backups multiple times a day with backup retention lasting one year. This allows us quick access to
restore user data should any event occur creating a loss or unwanted change in the data stored.
A noteworthy safety feature also resides in our calculation engine setup and model driven environment. This setup
essentially renders any ransomware attack useless as our systems can be restored and deployed immediately on any
other virtual machine we designate from existing backups and fresh installs of our engine.
(e) Does this software assist with accounting journal entries or reconciliations?
Yes, the JETI model serves as the accounting backbone for MaxQ. This model provides a daily confirmation and
reconciliation for cash movements and bond purchases, redemptions and interest activity. JETI provides interest
payment approximations, automated adjustments and true -up entries to ensure our books are always in sync with
actual payouts. JETI also provides multiple journal entry reviews on an accrual, cash or modified basis. This allows our
users to easily navigate security level entry details over any timeframe for audit purposes. For clients needing journal
entry exports into customized formats, JETI can also be designed to provide the appropriate data export format for
your ERP system.
(f) Does the software include audit trail functionality?
3
Yes, MaxQ has several models that are integral to ensuring data integrity and audit capabilities. JETI has built in
historical ledger access to pull up entries over any timeframe for any specific security to reconcile transactions, interest,
amortization/accretion and more. Our HALO model makes the daily reconciliation of cash and security activity a breeze
with customizable timeframes and filters available to show the desired information. Users can create a PDF or export
Excel data showing security interest, purchase activity and redemptions over the specified timeframe. MaxQ will utilize
custodial pricing provided by the client to ensure reconciliations and portfolio details match custodian reports.
(g) Describe the historical data the software maintains.
MaxQ utilizes an extensive SQL database environment that records thousands of variables daily and monthly. These
variables include accounting journal entries, earnings data, daily reconciliation records and hundreds of portfolio
variables such as par, book and market value, yield, weighted average maturity, sector allocations, ticker and maturity
bucket data and much more.
(h) Provide an estimated implementation timeline and describe how existing data will be imported into the
software.
Please see attached proposal under subsection 04 - Project Brief, subsection 05 - Work Process and subsection 06 —
Timeline Approximation.
(i) List resources provided for customer service, technical support, and training, including business hours available
and average response time for technology -related inquiries.
Once the data onboarding is complete, we will schedule multiple webinar sessions to familiarize yourself with the
platform and answer any questions you may have. You will also have access to the MaxQ Video Training library that is
scheduled to be completed in 3rd quarter of 2024 and will incorporate dozens of short videos to familiarize yourself
with new features or simply refresh yourself on processes and procedures inside the system. MaxQ personnel are
available Monday to Friday from Gam to 3pm Pacific via email or live chat application available in the MaxQ online
portal. Our personnel will also respond after hours via phone or email should the request warrant an expedited
response. Most inquiries will be addressed same day if at all possible.
(a) Number of clients using the software, and how many are government agencies
We currently serve 7 government institutions under the PEAR subscription software and 11 other government
institutions under our legacy platform. All clients of MaxQ are state and local government institutions.
(b) Client name, contact person, telephone number, and email address of at least two clients
(c) How long have you done business with this client
(d) Provide a summary of the implementation process with this client.
Set forth below are client references.
MaxQ References
Client
Contact
Telephone
Length
Summary of the Implementation Process
Name
Person
Number and
of
Email Address
Service
City and
Hubie White,
(415) 554-4776
Since
The City and County converted to PEAR from Clearwater Analytics in
County of
Chief
Hubert.white@sfgov.
2016
2023. We made the transition within a few days as San Francisco has
org
San
Investment
been a client of MaxQ since 2016 and we had access to relevant
Francisco
Officer
onboarding data. The transition was completed with full daily ERP
export capabilities in under two weeks.
Tulare
Frank Vigario,
(559) 636-5295
Since
The County converted from Sympro to PEAR in 2023. The initial
County
Chief
Frankvigario@tularec
2018
transition period was approximately three weeks which included
ounty.ca.gov
Investment
custom ERP exports built out to meet the County's needs. An additional
Officer
model was developed and deployed for earnings allocation to fund
participants which took approximately two weeks. Due to more esoteric
securities (floating and variable rate notes, CMBS and ABS) we
monitored the monthly reporting and have made additional updates as
4
needed to provide more accuracy and efficiency in handling these
securities.
City of
Alisa Backstrom,
(714) 536-5299
Since
The city was our earliest adopter of the MaxQ platform and made the
Huntington
Treasurer
Alisa.backstrom@sur
2015
transition from Sympro to PEAR in 2022. We made the transition
fcity-hb.org
Beach
within a few days as Huntington Beach has been a client of MaxQ
since 2015 and we had access to relevant onboarding data. The
transition was completed with full daily ERP export capabilities in
under two weeks.
Kern
Brandon Carter,
(661) 868-3415
Since
The County converted from Sympro in 2022. We made the transition
County
Investment
carterbr@kerncount
2016
within a few days as Kern has been a client of MaxQ since 2016 and
corn
Officers
we had access to relevant onboarding data. The transition was
completed in under two weeks.
Proposal shall include a detailed fee schedule for the services requested by this RFP.
Please see Appendix C for a detailed fee schedule.
Please see Appendix C.
Mr. Klinghoffer is the primary personnel for this RFP.
Subcontracting any portion(s) of the Scope of Services is not preferable; however, if a proposer can demonstrate to
the City's satisfaction that is in the best interest of the project to permit a portion of the service(s) to be
subcontracted by the proposer, it may be considered. Provide details on the role of any subcontractor that will be
used. Assignment is prohibited.
MaxQ does not use subcontractors for any element under Scope of Services.
8. Disclosure
Disclosure of any alleged significant prior or ongoing agreement failure, any civil or criminal litigation or investigation
pending, which involved the proposer or in which the proposer has been judged guilty or liable within the last five
(5) years. If there is not information to disclose, proposer must affirmatively state there is no negative history.
MaxQ has no alleged significant prior or ongoing agreement failure, any civil or criminal litigation or investigation
pending, which involved MaxQ or in which MaxQ has been judged guilty or liable within the last five (5) years.
Proposals must include a written statement that, if selected, the proposer will provide the minimum insurance
coverage and indemnification noted in Exhibits E and F. respectively, of the City's Agreement for Contract Services
included as Attachment 1.
Set forth in the following pages is Attachment 2.
Proposals must include an executed Non -Collusion Affidavit, included as Attachment 3, executed by an official
authorized to bind the firm.
Set forth in the following pages is Attachment 3.
If any addendum/addenda are issued, the proposer shall initial the Acknowledgement of Addenda, included as
Attachment 4.
Set forth in the following pages is Attachment 4.
5
40aia(V
CAL11 OR -MA -
ATTACHMENT 2
INSURANCE REQUIREMENTS ACKNOWLEDGEMENT
Must be executed by proposer and submitted with the proposal
Jason Klinghoffer, CFA
(name) hereby acknowledge and confirm that
MaxQ Analytics, LLC (name of company) has reviewed
the City's indemnification and minimum insurance requirements as listed in Exhibits E and
F of the City's Agreement for Contract Services (Attachment 1); and declare that insurance
certificates and endorsements verifying compliance will be provided if an agreement is awarded.
I am Principal of MaxQ Analytics, LLC
(Title) (Company)
Commercial General Liability (at least as broad as ISO CG 0001)
$1,000,000 (per occurrence); $2,000,000 (general aggregate)
Must include the following endorsements:
General Liability Additional Insured
General Liability Primary and Noncontributory
Commercial Auto Liability (at least as broad as ISO CA 0001)
$1,000,000 (per accident)
Personal Auto Declaration Page if applicable
Errors and Omissions Liability $1,000,000 (per claim and aggregate)
Worker's Compensation (per statutory requirements)
Must include the following endorsements:
Worker's Compensation Waiver of Subrogation
Worker's Compensation Declaration of Sole Proprietor if applicable
J n i hoffer, CFA
Print'
Page 9 of 36
Za Qa�a
- CALlpptiVld -
ATTACHMENT 3
NON -COLLUSION AFFIDAVIT FORM
Must be executed by proposer and submitted with the proposal
1, Jason Klinghoffer, CFA (name) hereby declare as follows:
am Principal of MaxQ Analytics, LLC
(Title) (Company)
the party making the foregoing proposal, that the proposal is not made in the interest of, or on behalf
of, any undisclosed person, partnership, company, association, organization, or corporation; that the
proposal is genuine and not collusive or sham; that the proposer has not directly or indirectly induced
or solicited any other proposer to put in a false or sham proposal, and has not directly or indirectly
colluded, conspired, connived, or agreed with any proposer or anyone else to put in a sham proposal,
or that anyone shall refrain from proposing; that the proposer has not in any manner, directly or
indirectly, sought by agreement, communication, or conference with anyone to fix the proposal price of
the proposer or any other proposer, or to fix any overhead, profit, or cost element of the proposal price,
or of that of any other proposer, or to secure any advantage against the public body awarding the
agreement of anyone interested in the proposed agreement; that all statements contained in the
proposal are true; and, further, that the proposer has not, directly or indirectly, submitted his or her
proposal price or any breakdown thereof, or the contents thereof, or divulged information or data relative
hereto, or paid, and will not pay, any fee to any corporation, partnership, company, association,
organization, proposal depository, or to any member or agent thereof to effectuate a collusive or sham
proposal.
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and
correct.
Proposer Signature: OAR.P/
Proposer Name: Jas n Klinghoffer, CFA
Proposer Title: Principal
Company Name: MaxQ Analytics, LLC
Address: 3857 Birch St, Suite #5053, Newport Beach, CA 92660
Page 10 of 36
�C(/ ��IGLt'tAW
- cnurokviA -
ATTACHMENT 4
ACKNOWLEDGEMENT OF RECEIPT OF ADDENDA
Must be executed by proposer and submitted with the proposal;
If no addenda has been issued, mark "N/A" under Addendum No. indicating
Not Applicable and sign
ADDENDUM NO.
SIGNATURE INDICATING RECEIPT
w
Page 11 of 36
Appendix A
MaxQ W-9 Form
A-1
Request for Taxpayer
Give Form to the
Form
(Rev. October2018)
Identification Number and Certification
requester. Do not
Department
of the Treasury
send to the IRS.
Internal
Revenue Service
► Go to wwwJrs.gov/FormW9 for instructions and the latest information.
1 Name (as shown on your income tax return). Name is required on this line; do not leave this line blank.
MaxQ Anallytics, LLC
2 Business name/disregarded entity name, if different from above
MaxQ Anal tics, LLC
M
3 Check appropriate box for federal tax classification of the person whose name is entered on line 1. Check only one of the
4 Exemptions (codes apply only to
m
following seven boxes.
certain entities, not individuals; see
a
instructions on page 3):
o
❑ Individual/sole proprietor or ElC Corporation ElS Corporation ElPartnership ElTrust/estate
c
single -member LLC
Exempt payee code (if any)
C. o
Z:,
✓❑ Limited liability company. Enter the tax classification (C=C corporation, S=S corporation, P=Partnership) ► S
`o
Note: Check the appropriate box in the line above for the tax classification of the single -member owner. Do not check
Exemption from FATCA reporting
to
LLC if the LLC is classified as a single -member LLC that is disregarded from the owner unless the owner of the LLC is
LLC
code if an
( y)
a �another
LLC that is not disregarded from the owner for U.S. federal tax purposes. Otherwise, a single -member that
w
is disregarded from the owner should check the appropriate box for the tax classification of its owner.
y
❑ Other (see instructions) ►
(Applies to accounts maintained outside the U.S.)
N5
Address (number, street, and apt. or suite no.) See instructions.
Requester's name and address (optional)
J)
3857 Birch St #5053
6 City, state, and ZIP code
Newport Beach, CA 92660
7 List account number(s) here (optional)
Taxpayer Identification Number (TIN)
Enter your TIN in the appropriate box. The TIN provided must match the name given on line 1 to avoid
Social security number
backup withholding. For individuals, this is generally your social security number (S. However, for a
resident alien, sole proprietor, or disregarded entity, see the instructions for Part I, later. For other
-
-Ell
entities, it is your employer identification number (EIN). If you do not have a number, see How to get a
TIN, later.
or
Note: If the account is in more than one name, see the instructions for line 1. Also see What Name and I Employer identification number
Number To Give the Requester for guidelines on whose number to enter. F—T-1
Certification
Under penalties of perjury, I certify that:
1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me); and
2. 1 am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue
Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am
no longer subject to backup withholding; and
3. 1 am a U.S. citizen or other U.S. person (defined below); and
4. The FATCA code(s) entered on this form (if any) indicating that I am exempt from FATCA reporting is correct.
Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because
you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage interest paid,
acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and generally, payments
other than interest and dividends, you are not required to sign the certification, but you must provide your correct TIN. See the instructions for Part 11, later.
Sign Signature of
Here U.S. person► / �Date► 02-/09/202-Z
General Instructions
Section references are to the Internal Revenue Code unless otherwise
noted.
Future developments. For the latest information about developments
related to Form W-9 and its instructions, such as legislation enacted
after they were published, go to www.irs.gov/F6rmW9.
Purpose of Form
An individual or entity (Form W-9 requester) who is required to file an
information return with the IRS must obtain your correct taxpayer
identification number (TIN) which may be your social security number
(SSN), individual taxpayer identification number (ITIN), adoption
taxpayer identification number (ATIN), or employer identification number
(EIN), to report on an information return the amount paid to you, or other
amount reportable on an information return. Examples of information
returns include, but are not limited to, the following.
• Form 1099-INT (interest earned or paid)
• Form 1099-DIV (dividends, including those from stocks or mutual
funds)
• Form 1099-MISC (various types of income, prizes, awards, or gross
proceeds)
• Form 1099-B (stock or mutual fund sales and certain other
transactions by brokers)
• Form 1099-S (proceeds from real estate transactions)
• Form 1099-K (merchant card and third party network transactions)
• Form 1098 (home mortgage interest), 1098-E (student loan interest),
1098-T (tuition)
• Form 1099-C (canceled debt)
• Form 1099-A (acquisition or abandonment of secured property)
Use Form W-9 only if you are a U.S. person (including a resident
alien), to provide your correct TIN.
If you do not return Form W-9 to the requester with a TIN, you might
be subject to backup withholding. See What is backup withholding,
later.
Cat. No. 10231X Form W-9 (Rev. 10-2018)
Appendix 6
Resumes
JASON KLINGHOFFER, CFA
PRINCIPAL
MAXQ ANALYTICS, LLC
PROFESSIONAL EXPERIENCE:
Jason Klinghoffer lives in Irvine, California with his wife Courtney and son Everett. He is a former
United States Marine who began his professional career nearly 20 years ago working as a
portfolio analyst and fixed income trader for an institutional brokerage team specializing in state
and local government investing. His love and appreciation of technology can be traced back to
his teenage years where he ran multiple small businesses specializing in personal computers,
networking, server infrastructure and video conferencing.
Jason started developing MaxQ Analytics in 2015 as a tool to help state and local government
portfolio managers make informed and calculated decisions about investing. He specializes in
addressing the philosophical, political and analytical complexities of public fund portfolio
management. He has been a guest lecturer and speaker at numerous national and state
conferences, educational seminars and advisory board meetings focused on public fund
investing. Jason holds the Chartered Financial Analyst° designation from the CFA Institute and is
an active member of the CFA Society of Orange County.
DEEPENDRA CHAUDHRY
SENIOR SYSTEMS ENGINEER
MAXQ ANALYTICS, LLC
PROFESSIONAL EXPERIENCE:
Deep brings a diverse blend of professional experience and a unique skillset to MaxQAnalytics.
As a former management consultant at PwC, primarily engaged with public sector clients, he is
perfectly at home when it comes to quantitative methods, public policy analysis, and information
systems management. Deep's passion for finance and programming have been instrumental in
his current role, where he has developed numerous software solutions in electronic trading, data
analytics, and automation for regulatory reporting and compliance.
His collaboration with Jason on the trading floor, combined with a shared commitment to solving
the unique challenges of local and state government treasury departments, led Deep to join
MaxQ. At the firm, his adept knowledge of Python, VBA and SQL have been instrumental in the
design and implementation of a sophisticated information systems architecture and API set that
drive the platform's advanced cloud analytics suite.
Deep currently lives in Newport Beach, California and enjoys volunteering at his local church and
perfecting his pickleball game. He graduated with a Master's of Public Policy & Management
from top -ranked Heinz College at Carnegie Mellon University and is currently a Level III candidate
for the Chartered Financial Analyst° designation offered from the CFA Institute.
Appendix C
MaxQ Fee Schedule and Complementary Services Offered along with
Corresponding Prices
c-1
MaxQ 949.468.3710 (c) 913.244.7101 3857 Birch Street, Suite 5053
Ana ,ICS jklinghoffer@maxganalytics.com Newport Beach, CA 92660
o maxqanalytics.com
CREATED FOR:
City of La Quinta, CA
03/27/2024
■
OUR STORY
ABOUT US
Since 2015, MaxQ has been serving clients and providing insight
with portfolio analytics, benchmarking, strategy development,
cash flow forecasting, asset -liability management and more.
With the introduction of PEAR, MaxQ now brings back -office
accounting and reporting support to our platform.
WHAT WE DO
MaxQ Analytics provides a Software -as -a -Service (SaaS)
specifically designed for pubic institutions to manage their
treasury portfolios with advanced analytics, evaluation metrics,
accounting and reporting capabilities.
OUR PLATFORM
OUR VALUE
Developed by personnel with vast experience in
public treasury management
Insights & features developed with feedback from
public treasury staff across the country
Cloud -based platform managed through Microsoft
Azure ensures secure & efficient access from
anywhere, anytime and on any device
• Comprehensive solutions that truly have no competitor
MaxQ was developed on one of the most powerful calculation engines currently being utilized in the communications and
aerospace industries. It is the only SaaS platform in existence that focuses solely on portfolio management solutions in the public
treasury management market.
In 2022, we introduced the Portfolio Evaluation, Accounting and Reporting (PEAR) system that provides a complete back-to-
front office solution for public treasury accounts. By utilizing a "pie -based" approach, MaxQ allows for separate administration
of tasks across cash and trade entry, accounting, transaction reconciliation, portfolio evaluation and reporting. With features
like automated security setup and transaction verification, PEAR makes managing the treasury investment process simple and
efficient from start to finish.
MAXQANALYTICS
SUBSCRIPTION PROPOSAL
OUR SOLUTIONS
CAT provides treasury personnel with a trade and cash entry solution. With basic
$� CAT MODEL and intuitive layouts, the CAT model provides an easy and efficient method for
Cash &Transactions team members to enter trades, review and sign trade tickets, access historical trade
blotters and enter cash transactions between liquidity accounts.
JETI provides treasury personnel with a comprehensive journal entry system for publishing
JETI MODEL
monthly journal entries and daily reconciliations. JETI creates and stores entries on an
Journal Entries for accrual, modified -accrual and cash basis so clients can choose which method works best.
Transactions &Interest
JETI can also configure custom JE files for uploads to different ledger systems.
PAD Provides a daily snapshot of your portfolio with an embedded Asset -Liability
PAD MODEL Management (ALM) tool for comprehensive cash flow matching. PAD provides analytics
Portfolio Analytics for benchmarking, compliance, portfolio summaries, liquidity monitoring, asset allocation
Dashboard breakdowns, portfolio composition, asset holdings, and more. With all of these features,
PAD acts more as an advanced portfolio analytics system than an accounting system.
Our namesake model, the PEAR model provides a comprehensive review of monthly
PEAR MODEL activity and return metrics. PEAR provides public treasury teams with a suite of
Portfolio Evaluation, reports for trading activity and earnings results. Utilized in tandem with the PAD
Accounting & Reporting model, treasury managers will have a powerful and robust set of tools to keep up
with any strategy and deeply evaluate ongoing performance.
eRHALO MODEL The HALO model captures hundreds of metrics from each reporting period that can
HistoricalAnalytics& be referenced and analyzed in custom time -frames. HALO will track investment results,
Lifetime Observations portfolio parameters, trading activity, allocation changes and more.
The EPIC model was designed for entities that run in a pooled environment and need
EPIC MODEL access to quick and efficient interest attribution for participants. The EPIC model can
Earnings & Participant track fund balances and deploy interest earnings to thousands of participants on their
Interest Contribution pro-rata contribution to the fund. EPIC can also create customized journal entries and
exports for ledger systems used in the attribution process.
REAL provides cash flow projections by utilizing expenditures like debt service and
\ REAL MODEL revenues like property tax to give a daily look into your institution's liquidity profile.
I[) Revenues Expenditures REAL has the ability to capture hundreds of user -defined categories for expenditures
&Asset Liability and revenues and integrates your portfolio real-time so users can see their asset
picture relative to projected liabilities.
The PALS model utilizes duration -optimization techniques to establish your liquidity
PALS MODEL profile, project the timing and magnitude of future cash flows, establish a duration
Portfolio Asset target and provide a maturity bucket breakdown to meet your goals. PALS can even
Liability Strategy take it a step further and setup an optimized sector allocation utilizing risk/reward
techniques and your investment policy.
MAXQANALYTICS SUBSCRIPTION PROPOSAL
PROJECT DESCRIPTION
DETAILS: CLIENT: TIMELINE:
MaxQ PEAR Integration City of La Quinta, CA 3 Weeks
PROJECT BRIEF
The MaxQ integration process requires several steps by both MaxQ team members and client staff to complete. Client will be asked
to provide complete trade ticket information on all existing and forward settlement transactions as of the MaxQ start date. These
items will include CUSIP, Trade Date, Settlement Date, Par Amount, Principal, Accrued Interest, Issuer Ticker, Coupon, Maturity
Date, Accounting ID (if client continuing with current ID structure) and Executing Dealer. Client will also need to provide a current
Investment Policy and Apporved Dealer list. Integration will follow several steps as outlined in the Work Process section. All timing
is approximated given what we currently know about the client and their operations. Any unknown items or custom requests
can be addressed during the integration process but may involve additional time to deploy and increased costs determined on a
case -by -case basis.
0 MI-Ew WORK PROCESS
1. Setup Liquidity Accounts
Define Pass/Bank, Money Market and LGIP accounts and place initial balances for start date.
Initial Accrued Interest entries also determined.
2. Link/Deploy CAT Model
Deploy CAT model with initial training on cash transactions and rate assumption entries.
3. Security Master Build
Obtain trade ticket information as outlined in the Project Brief on current portfolio and any additional
executed trades outstanding.
4. Trade Entry & ID Setup
Enter all existing trades with provided trade execution detail. Confirm transaction variables and place transaction
journal in database. Initial training on CAT model trade entry.
5. Link/Deploy JETI Model
Deploy JETI model with initial training on confirming cash movements, asset transactions and interest as they happen.
6. Initial Pricing
Upload initial pricing file for start date.
7. Link/Deploy PAD, PEAR and HALO models
Deploy PAD, PEAR and HALO models with training on Report Center functionality and PEAR submission requirements.
8. Additional Training
Address features and usage of all models in the MaxQ ecosystem.
MAXQANALYTICS SUBSCRIPTION PROPOSAL
TIMELINE APPDXIMATION
SERVICE
WEEK
Setup Liquidity Accounts
Week 1
Link/Deploy CAT Model
Week 1
Security Master Build
Week 1
Trade Entry and ID Setup
Week 2
Link/Deploy JETI Model
Week 2
Initial Pricing
Week 2
Link/Deploy PAD, PEAR and HALO Models
Week 3
Comprehensive/Additional Training
Week 3
MAXQANALYTICS SUBSCRIPTION PROPOSAL
FEE SCHEDULE V. JANUARY 1, 2024
1. Seat Fee:
Seats on the MaxQ platform are broken into two levels: PEAR and STANDARD
a) PEAR Seat: $1,330.00 Per Month Billed Annually
b) STANDARD Seat: $500.00 Per Month Billed Annually
2. Annual Transaction Volume History Fee (As Measured By 12Mo Avg History):
Tier-1: 1 to 5 Transactions Per Month: $93.00 Per Month Billed Annually
Tier-2: 6 to 15 Transactions Per Month: $212.00 Per Month Billed Annually
Tier-3: 16 to 25 Transactions Per Month: $346.00 Per Month Billed Annually
Tier-4: 26 to 35 Transactions Per Month: $479.00 Per Month Billed Annually
Tier-5: 36 to 45 Transactions Per Month: $612.00 Per Month Billed Annually
Tier-6: 46 to 55 Transactions Per Month: $745.00 Per Month Billed Annually
Tier-7: 55+ Transactions Per Month: Negotiated Use Case
3. Complexity Fee: No Schedule Published
4. Login Fee:
Additional Login(s): $99.00 Each Per Month Billed Annually
5. Setup Fee: No Schedule Published
Sample Fee Calculation:
Seat Fee: PEAR $1,330 Per Month Billed Annually ($1,330 X 12) = $15,960.00
ATVH Fee: Tier-3 - $346 Per Month Billed Annually ($346 X 12) = $4,152.00
Complexity Fee: $500 Per Month Billed Annually ($500 X 12) = $6,000.00
Login Fee: $99 Per Month Billed Annually ($99 X 12) = $1,188.00
Setup Fee: Waived
Total Annual Fees: $27,300.00
MAXQANALYTICS SUBSCRIPTION PROPOSAL 1 5
SUBSCRIPTION TERMS
MaxQ Analytics, LLC, a California limited liability company with a principal place of business at 3857 Birch St., Suite
5053, Newport Beach, California 92660 ("MaxQ") and is supplying subscription terms and conditions pursuant to and
as part of the End User License Agreement (EULA). EULA available at https://maxganalytics.com/eula
Platform Fees Breakdown:
1) Base monthly seat cost ("Seat")
2) Annual Transaction Volume History ("ATVH").
3) Complexity of account or securities ("Complexity")
4) Account logins required by the Client ("Login").
5) Setup Costs ("Setup")
1. Seat Fee:
Seats on the MaxQ platform are broken into two levels: PEAR and STANDARD
a) PEAR Seat: Client is utilizing models inside the Portfolio Evaluation, Accounting and Reporting
("PEAR") ecosystem and will be accessing associated data connections.
b) STANDARD Seat: Client is utilizing models outside the Portfolio Evaluation, Accounting and Reporting
ecosystem and will not have access to PEAR or any of its associated data connections.
c) Seat pricing is adjusted annually at the end of each calendar year. Seat pricing adjustments will be
limited to Core CPI YOY + 3.5%.
d) Any adjustment is at the sole discretion of MaxQ and is not guaranteed to occur. Any Seat fee
adjustment will be reflected upon reset of the annual subscription as set forth in the Invoice Effective
Date and in accordance with the Fee Lock terms.
2. Annual Transaction Volume History Fee:
a) Annual Transaction Volume History ("ATVH") is established by MaxQ based on Client's previous 12-
month history of security purchases, sales and redemptions including maturities and calls. This history
must be provided by the Client in first contract year and agreed upon by both MaxQ and Client.
b) ATVH fees are based on Tier levels as published by MaxQ and are in effect for one year. ATVH fees
will be re-evaluated upon reset of the annual subscription as set forth in the Invoice Effective Date
and in accordance with the Fee Lock terms.
c) ATVH pricing is adjusted annually at the end of each calendar year. ATVH adjustments will be limited
to Core CPI YOY + 3.5%.
3. Complexity Fee:
a) Complexity fees may be established by MaxQ based on certain security types and volume of esoteric
or sophisticated securities held by the Client. These securities may include mortgage -backed, asset -
backed and variable rate structures.
b) Complexity fees may also be established for accounts requiring customization or data connections
not currently part of the PEAR ecosystem.
c) Complexity fees may apply if multiple funds/portfolios are being logged by the system.
d) Complexity fees are at the sole discretion of MaxQ and may or may not be incurred. Complexity fees
will be in effect for one year and will be re-evaluated upon reset of the annual subscription as set
forth in the Invoice Effective Date and in accordance with the Fee Lock terms.
e) Complexity fees will not be limited or capped in annual adjustments applied to the account. MaxQ will
not establish a Complexity fee schedule as it will be determined on a client -by -client basis.
MAXQANALYTICS SUBSCRIPTION PROPOSAL
SUBSCRIPTION TERMS
4. Login Fee:
a) One user Login is assigned to the Client for each Seat the Client has purchased.
b) Additional Login fees will be in effect for one year and will be re-evaluated upon reset of the annual
subscription as set forth in the invoice Effective Date and in accordance with the Fee Lock terms.
c) Login fees will not be limited or capped in annual adjustments applied to the account.
5. Setup Fee:
a) Setup fees may apply if the Client is requiring customized journal exports, access to the Earnings
Principal and Interest by Client ("EPIC') model, or the initial setup will take longer than what MaxQ
determines an average and appropriate timeframe to complete.
b) These fees are at the sole discretion of MaxQ and will be applied as part of the first annual
billing cycle if applicable.
Client Fee Calculation - City of La Quinta, CA
Seat Fee: PEAR $1,330 Per Month Billed Annually ($1,330 X 12) = $15,960.00
ATVH Fee: Tier-2 - $212 Per Month Billed Annually ($212 X 12) = $2,544.00
Complexity Fee: Waived
Login Fee: 3 Licenses - $198 Per Month Billed Annually ($198 X 12) = $2,376.00
Setup Fee: Waived
Total Annual Fees: $20,880.00 - 10% Discount (3 Years) = $18,792.00
6. Terms and Support:
a) Fee Lock: All fees are locked for one year from the Invoice Effective Date. Thereafter, MaxQ may elect
to increase fees as established above for each Fee item. Client will be notified of any Fee increase
no less than sixty (60) days prior by written notice and no more than once every renewal period. If
renewal period is within sixty days of previous calendar year, MaxQ shall provide written notice as
soon as possible of any increase but will not be subject to the sixty-day written notice requirement.
b) Cancellation: This service may be terminated at any time upon 30 days written notice without cause
or penalty by either party. Any unused fees that have been paid will be refunded within 60 days of
written notice of cancellation.
c) Support and Training: MaxQ will provide training and support as needed by the Client. There will be
no fees or charges for support as long as the Client has an active Seat on the platform.
Client and MaxQ, having read and considered the above provisions, indicate their agreement by their
authorized signatures below.
MaxQ Analytics LLC
Date: By:
Print Name: Jason Klinghoffer Title: Princi
Date:
By:
Print Name:
Title:
MAXQANALYTICS SUBSCRIPTION PROPOSAL 1 7