CITY OF FUL.,? EIZa ON
PROFESSIONALSERVICESP,GRE:EnxiEN1T
WITH
URBAN FUTURES, INC.
THISAGREEMENTis madeandenteredintothis1611' dayofMarch, 2022 (" EffectiveDate"), by and betweenthe CITY OF FULLERTON, a California municipal corporation (" City"), and UrbanFutures, Inc., a CaliforniaCorporation ("Consultant").
VVI T I\3ESSETH.
A.
Ciiyproposes -toutilizetheservicesofCOrhshlltantasanindependentContractorto provideceriainDebtIssuanceServicesandMunicipalAdvisoryServicesandPensionandOther - Post -Employment Benefits ( OPEB) FundingStrategyDevelopmentServices, as morefullydescribed herein.
B.
Consultantrepresentsthatithasthatdegreeofspecializedexpertisecontemplated withinCaliforniaGovernmentCodesection37103, andholdsallnecessarylicensestopracticeand performthe servicesherein contemplated.
C.
CityandConsultantdesireto contractforthespecificservicesdescribedherein, anddesire- tosetforththeirrights, dutiesandliabilitiesinconnectionwiththeservicestobe performed.
D.
NOofficialoremployeeofCityhasafinancialinterest; withintheprovisionsofSections1090-1092oftheCaliforniaGovernmentCode, inthesubjectmatterofthisAgreement.
NOW, THEREFORE, forandinconsiderationofthemutualcovenantsandconditions containedherein, the partiesherebyagree as follows:
ht. SERVICES PROViDED BY G0N1S.6LTj,-1dNT
1. 1. Scope of Services. Subject to Section 2.2 of this Agreement, Consultantshall providethe professionalservicesdescribedin theScopeof Servicesattachedheretoas ExhibitA" and incorporated herein by this reference.
1. 2. Professional Practices. All professionalservicesto be providedby Consultant pursuanttothisAgreementshallbeprovidedbypersonnelexperiencedintheirrespectivefields andinamannerconsistentwiththestandardsofcare, diligenceandskillordinarilyexercisedbyprofessionalconsultantsin similarfields and circumstancesin accordancewith Sound professionalpractices. Consultantalsowarrantsthatitisfamiliarwithalllawsthatmayaffectits performanceofthisAgreementandshalladviseCityofanychangesinanylawsthatmayaffectConsultant's performanceof -this Agreement.
1.3. Performaliceto SatisfactionofCite. Consultantagrees 'toperformalltheworkto thereasonablesatisfactionoftineCity, inaccordancewiththeapplicableprofessionalstandardof care and City specificationsand within the hereinafterspecified. Evaluations of tine work will be done by the City Manager or his designee. if the qualityof workis notsatisfactory, Cityin itsdiscretion has the right to:
a)
Meetl.vith Consultantto reviewthe :qualityof the wort: and resolvethe matters of concern;
b) RequireConsultantto repealthe work at no additional 'fee until it is satisfactory; and/ or
c) Terminate the Agreement as hereinafter set forth.
1. 4. Ulrarranfy. Consultantwarrantsthatit shallperformtheservicesrequiredbythis Agreementin compliancewith all applicableand non conflictingFederaland California employmentlaws, including, butnotlimitedto, thoselavesrelatedto minimumhoursandwages; occupational health and Safety,' fair employmentand employmentpractices; workers' compensationinsuranceandsafetyin employment; andall otherFederal, Stateandlocallaws and ordinances applicable to the services required under- this Agreement. Consultant shall indemnifyandholdharmlessCityfromandagainstallclaims, demands, payments, suits, actions, proceedings, andjudgmentsof everynatureanddescriptionincludingattorneys' feesandcosts, presented, brought, orrecoveredagainstCityfor, oronaccountofanyliabilityunderanyofthe above -mentionedlaws, whichmaybeincurredbyreasonofConsultant's performanceunderthis Agreement.
1. 5. Non-discrimination. InperformingthisAgreement, Consultantshallnotengagein, norpermititsagentstoengagein, discriminationinemploymentofpersonsbecauseoftheirrace, religion, color, nationalorigin, ancestry, age, physicalhandicap, medicalcondition, maritalstatus, sexualgenderor sexualorientation, exceptas permittedpursuantto Section12940of the Government Code.
1. 6. Non -Exclusive Agreement. Consultant acknowledgesthat City may enter into agreementswith otherconsultantsfor servicessimilarto the servicesthat are subiecttothis Agreementor may have its own employeesperformservices similar to those services contemplated by this Agreement.
1. 7. Delegation and Assignment. This is a personal service contract; and the duties setforthhereinshallnotbedelegatedorassignedtoanypersonorentitywithoutthepriorwritten consentofCity. Consultantmayengageasubcontractor(s) aspermittedbylawandmayemploy otherpersonnelto performservicescontemplatedbythisAgreementat Consultant's solecost and expense.
1. 8. Confidentiality. Employeesof Consultantin the course of their duties may have access to financial, accounting, statistical, and personnel data of private individuals and employees of City. Consultant covenants that all data, documents, discussion, or other informationdevelopedorreceivedbyConsultantorprovidedforperforrnanceofthisAgreement aredeemedconfidentialandshallnotbedisclosedbyConsultantwithoutwrittenauthorizationbyCity. Cityshallgrantsuchauthorizationif disclosureis requiredbylaw. All City data shall be returnedto CityupontheterminationofthisAgreement. Consultant's covenantunderthisSection shall survive the termination of this Agreement.
2. 0. COMPENSATION _ SLUNG
2. 1. Compensation,. Consultant shall be paid in accordance with the fee schedule set forth in Exhibit " B".
2. 2. Additional Services. Consultant may perform the additional services described in Exhibit "A" SectionCattachedheretoandincorporatedhereinbythisreferenceif specifically engagedto dosobyCity. Consultantshallnotreceivecompensationforanyservicesprovided URBAN FUTURES, INC. ( UFI)
outsidethescopeofservicesspecifiedinExhibit "A" SectionCunlesstheCityortheProjectManagerforthisProject, priortoConsultantperformingtheadditionalservices, approvessuchadditionalservices in writing. Itisspecificallyunderstoodthatoralrequestsand/orapprovalsof suchadditionalservicesoradditionalcompensationshallbebarredandareunenforceable.
2. 3. lViethod of Billing. COnSUltantmaysubmitinvoicesto theCityfor approvalonaprogress basis, but no more often than two times a month. Said invoice shall be based on the totalofallConsultant'sserviceswhichhavebeencor-,pletedtoCity'ssolesatisfaction. CityshallpayConsultant'sinvoicewithinfoury-five (45) daysfromthedateCityreceivessaidinvoice. Each invoiceshalldescribeindetail, theservicesperformed, thedateofperformance, andthe associatedtimeforcompletion. AnyadditionalservicesapprovedandperformedpursuanttothisAgreementshallbedesignatedas "AdditionalServices" andshallidentifythenumberofthe authorizedchangeorder, where applicable, on all invoices.
2. 4. Records and Audits. Recordsof Consultant's servicesrelatingtothisAgreement shallbemaintainedinaccordancewithgenerallyrecognizedaccountingprinciplesandshallbe madeavailabletoCityoritsProjectManagerforinspectionand/orauditatmutuallyconvenienttimesfromtheEffectiveDateofthisAgreementuntilthree (3) yearsaftertheterminationdate.
2. 5. W- 9.
ConsultantmustprovideCitywitha currentW-9 formpriorto the commencementofworkunderthisAgreement. ItistheConsultant'sresponsibilitytoprovidetotheCityanyrevisedorupdatedW-9foraduringthetermofthisAgreement.
6.+ . T iUIE OF
3. i. Commencement and Completion of Work. The professional services to be perormedpursuanttothisAgreementshallcommencewithinfive (5) daysfromtheEffectiveDate ofthisAgreement. Failuretocommenceworkinatimelymannerand/ordiligentlypursueworkto completion may be grounds for termination of this Agreement.
3. 2. Excusable Delays. neither party shall be responsiblefor delaysor lack of performanceresultingfromactsbeyondthereasonablecontrolofthepartyorparties. Suchacts shallinclude, butnotbelimitedto, actsofGod, fire, strikes, materialshortages, compliancewith lawsorregulations, riots, actsofwar, oranyotherconditionsbeyondthereasonablecontrolofa party.
4. 1. Term.
ThisAgreementshallcommenceon the EffectiveDateandcontinue throughApril30, 2026withtwoone-yearoptionstorenewuponwrittenagreementbytheparties, unless terminated as provided herein.
4. 2. Notice of Termination. The City reservesand has the right and privilegeof canceling, suspendingor abandoningtheexecutionof all or anypartof fiheworkcontemplated bythisAgreement, withorwithoutcause, atanytine, byprovidingwrittennoticetoConsultant.
Theterminationof thisAgreementshallbedeemedeffectiveuponreceiptof thenoticeof termination.
IntheeventOfsuchtermination, ConsultantshallimrrediatelystoprenderingservicesunderthisAgreementunlessdirectedotherwisebytheCity.
4. 3. Compensation. In the event of termination, City shall pay Consultant for reasonablecostsincurredandprofessionalservicessatisfactorilyperformeduptoandincluding URBAN FUFURES, INC. (UFI)
the date of City's written notice of termination. Compensationfor wort; in progress shall be proratedbasedonthepercentageofworkcompletedasoftheeffectivedateofterminationin accordance with the fees set forth herein. In ascertainingthe professionalservicesactually renderedhereunderuptotheeffectivedateofterminationofthisAgreement, considerationshall begivento bothcompletedworkandworkin progress, to completeandincompletedrawings, andtootherdocumentspertainingtotheservicescontemplatedhereinwhetherdeliveredtothe City or in the possession of the Consultant.
4. 4.
Documents. IntheeventofterminationofthisAgreement, alldocumentsprepared by Consultantin its performanceof thisAgreementincluding, butnotlimitedto, finishedor unfinisheddesign, developmentandconstructiondocuments, datastudies, drawings, mapsand reports, shallbedeliveredto theCitywithinten (10) daysof deliveryof terminationnoticetoConsultant, at no cost to City. Any use of uncompleted documents without specific written authorizationfromConsultantshallbeatCity's soleriskandwithoutliabilityorlegalexpensetoConsultant.
5. 0. 1NSURA, 1E 5.
1. InsuranceRequired. Consultant shall procureand maintainthroughoutthe duration of thisAgreement, insuranceagainst claimsfor injuriesto personsor damagesto property which may arisefromor in connectionwith the performanceof theworkhereunderby Consultant, its agents, representatives, employees or subcontractors. Consultant shall providecurrent evidenceof therequiredinsurancein a formacceptableto Cityandshallprovidereplacement evidence for anyrequiredinsurancewhich expiresprior to thecompletion, expiration, or terminationof - thisAgreement. Nothing
in thissectionshall be construedas limitingin anyway, the Indemnificationand HoldHarmless clause containedherein in Section6. 8ortheextentto whichConsultantmay be heldresponsible for paymentsof damagesto personsor property. 5.
2. MinimumScone and Limitsof Insurance. A.
CommercialGeneral Liability Insurance. Consultantshall maintaincommercialgeneral liability insurancecoverage in a format leastas broadas ISOForm #CG 00 01, with a limit of notlessthan $1, 000,000eachoccurrence. If suchinsurancecontainsa generalaggregatelimit, it shallapplyseparatelyto theAgreementor shallbe Svicethe requiredoccurrencelimit. G.
BusinessAutomobileLiability insurance. Consultantshall maintainbusinessautornobile liability insurancecoverage in a foririat leastas broadas ISOForm # CA 00 01, with a [ it - nitof notless than $1, 000,000 each accident. Such insuranceshall includecoveragefor owned, hired and non -ownedautomobiles. C.
Workers' Compensationand Employers' Liability Insurance. Consultantshall maintain workers' compensationinsurance as requiredby theStateof Californiaand employers' liability insurancewith limits of notless 'that-, $1, 000,000 each accident. D.
Professional
Liability insurance. Consultantshall maintainprofessionalliability insurance appropriateto Consultant's professionwith a limitof notlessthan $2, 000,000. Architects' and engineers' coverageshall be endorsedto includecontractualliability. If policyis written as a " claimsmade" policy, the retrodate of thepolicyshall be priorto thestarl ofthecontract work. URBAN
FUTURES, INC. ( UFI) Page
4 E.
Employee/OfficerFidelityBond. Consultantshallmaintainafidelitybondwitha minimum limit of $ 1,000,000, providingcoveragefor the actsof all employees: officersand directors of Consultant.
F.
CyberLiabilityInsurance. Consultantshallmaintaincyberliabilityinsurance coveragewitha limitofnotlessthan $2,000,000perclaimand $2,000,000aggregate. Coverage shallbesufficientlybroadtorespondtothedutiesandobligationsasisundertakenbyConsultant in thisAgreementandshallincludebutnotbe limitedto claimsinvolvinginfringementof intellectualproperty, includingbutnotlimitedtoinfringementofcopyright, trademark, tradedress, invasionofprivacyviolations, informationtheft, damagetoordestructionofelectronicinformation, releaseofprivateinformation, alterationofelectronicinformation, extortionandnetworksecurity.
Thepolicyshallprovidecoverageforbreachresponsecostsaswellasregulatoryroes, penalties andcreditmonitoringexpenseswithlimitssufficientto respondtotheseobligations.
5. 3. DeductiblesandSelf -insuredRetentions. Anydeductibleorself -insuredretention mustbedeclaredto andapprovedbyCity.
5. 4. Other Insurance Provisions. The required insurance policies shall contain or be endorsedto containthe followingprovisions:
A. Commercial General Liability. City, its elected or appointed officials, officers, employeesandvolunteersaretobecoveredasadditionalinsuredswithrespecttoliability arisingoutofworkoroperationsperformedbyoronbehalfofConsultant, includingmaterials, partsor equipmentfurnishedin connectionwithsuchworkoroperations. Suchcoverageasan additionalinsuredshallnotbelimitedtotheperiodoftimeduringwhichConsultantisconducting ongoingoperationsforCitybutrather, shallcontinueafterthecompletionofsuchoperations. The coverageshallcontainnospeciallimitationsonthescopeofitsprotectionaffordedtoCity, its officers, employees and volunteers.
B.
CommercialGeneralLiability. Thisinsuranceshallbeprimaryinsuranceas respectsCity, itsofficers, employeesandvolunteersandshallapplyseparatelytoeachinsured against whom a suit is brought: or a claim is made. Any insurance or self- insurance maintained byCity; itsofficers, employeesandvolunteersshallbeexcessof thisinsuranceandshallnot contribute with it.
C.
ProfessionalLiability. If the ProfessionalLiabilitypolicyis writtenon a claimsmade" form, the RetroactiveDatemustbe shownandmustbe beforethedateofthe contract or beginning of contract work. The insurance must be maintained and evidence of insurancemustbe providedfor at least (5) yearsafter completion of the contract work. if the coverageiscanceledornon -renewedandnotreplacedwithanotherclaims -madepolicyformwith a retroactiveDatepriortothecontracteffectiveelate, theConsultantmustpurchase "extended reportingcoverage" for a minimumof five (5) years aftercompletionof work.
D. Workers' Compensationand Employers' Liability Insurance. Insurershall waivetheirrightof subrogationagainstCity, itsofficers, employeesandvolunteersforworkdone on behalf of City.
E. Employee/ Officer Fidelity Bond, City shall be named as third party beneficiaryforlossesarisingfromworkdoneonbehalfofCity.
F. All Coverages. Each insurancepolicyrequiredby this clauseshallbe URBAN FUTURES, INC. (UFI)
endorsedtostatethatcoverageshallnotbecanceled, exceptafterthirty (30) days' priorwrittennoticebycertifiedmail, returnreceiptrequested, hasbeengiventoCity.
IfConsultantmaintainshigherlimitsorhasbroadercoveragethantheminimumsshownabove.
Cityrequiresandshallbeentitledtoallcoverage, andtothehigherlimitsmaintainedbyConsultant. Anyavailableinsuranceproceedsin excessof thespecifiedminimumlimitsof insuranceandcoverageshallbeavailabletoCity.
G.
Subcontractors. Consultantshallrequireandverifythatallsubcontractors maintain, insurancemeetingalltherequirementsstatedhereinandConsultantshallensurethatCityisanadditionalinsuredoninsurancerequiredfromsubconsuitants.
H. Special Risks or Circumstances. City reservesthe right to modifythese requirements, includinglimits, basedonthenatureoftherisk, priorexperience; insurer, coverage or other special circumstances.
5. 5 Acceptability of Insurers. All requiredinsuranceshallbe placedwith insurers acceptableto City with current BESTS ratings of no less than A, Class VII. Workers' compensationinsurancemaybeplacedwiththeCaliforniaStateCompensationInsuranceFund.
All insurers shall be licensed by or hold admitted status in the State of California. At the sole discretionofCity, insuranceprovidedbynon -admittedorsurpluscarrierswithaminimumBEST'S ratingofnolessthanA- ClassXmaybeacceptedifConsultantevidencestherequisiteneedto the sole satisfactionof City.
5. 6
VerificationofCoverage. ConsultantshallfurnishCitywithcertificatesofinsurance whichbearoriginalsignaturesof authorizedagentsandwhichreflectinsurersnamesand addresses, policy numbers, coverage, limits, deductibles and self - insured retentions.
Additionally, Consultant shall furnish copies of all policy endorsements required herein. All certificatesandendorsementsmustbereceivedandapprovedbyCitybeforeworkcommences.
Cityreservestherighttorequireatanytimecomplete, certifiedcopiesofanyorallrequiredinsurance policies and endorsements.
6. 0. G ENr-_RAL ' PROVISIONS
6. 1.
EntireAgreemeni. ThisAgreementconstitutestheentireagreementbetweenthe partieswithrespecttoanymatterreferencedhereinandsupersedesanyandallotherpriorwritings and oral negotiations.
ThisAgreementmaybemodifiedonlyinwriting, andsignedbythe parties in interestat the time of such modification. ThetermsofthisAgreementshallprevail overanyinconsistentprovisioninanyothercontractdocumentappurtenanthereto, includingexhibits to this Agreement.
6. 2. Representatives. TheCityManageror hisdesigneeshallbetherepresentativeof Cityfor purposesof thisAgreementandmayissueall consents, approvals, directivesand agreementsonbehalfoftheCity, calledforbythisAgreement, exceptasotherwiseexpresslyprovided in this Agreement.
Consultantshalldesignatea representativefor purposesof thisAgreementwho shallbeauthorizedto issueall consents, approvals, directivesandagreementson behalfof Consultant called for by this Agreement, except as otherwise expressly provided in this Aareernent.
URBAN FUTURES, INC. (UP)
6. 3. Proiect ManaQers. Cityshalldesignatea ProjectManagerto workdirectlywithConsultantintheperformanceofthisAgreement.
Consultantshalldesignatea ProjectManagerwhoshallrepresentit andbeits agentin all cor7suit2tionswithCityduringthetermof thisAgreement. Consultant or its Project ManagershallattendandassistinallcoordinationmeetingscalledbyCity,
6. 4. notices.
Any notices, documents, correspondenceor other communications concerningthisAgreementortheworkhereundermaybeprovidedbypersonaldelivery, facsimileormailandshallbeaddressedassetforthbelow. Suchcommunicationshallbedeemedserved ordelivered: a) atthetimeofdeliveryifsuchcommunicationissentbypersonaldelivery; b) atthetimeoftransmissionifsuchcommunicationissentbyfacsimile; andc) 48hoursafterdeposit intheU.S. MailasreflectedbytheofficialU.S. postmarkifsuchcommunicationissentthroughregular United States mail.
IF TO COnSULTANI T :
Urban Futures, Inc.
17821 East 17t'' Street, Suite 245
Tustin, CA 92780
Attn: Michael Bush, CEO
iFTOCiTY.-
City of Fullerton
303 V1/. Commonwealth Ave.
Fullerton, CA 92832
Attn: Director or Administrative Services
6. 5. Attorneys' Fees. Intheeventthatlitigationis broughtby anypartyin connection withthisAgreement, theprevailingpartyshallbeentitledtorecoverfromtheopposingpartyallcostsandexpenses, includingreasonableattorneys' fees, incurredbytheprevailingpartyintheexerciseofanyofitsrightsorremedieshereunderortheenforcementofanyoftheterms, conditions, or provisions hereof.
6. 6. Governing Law. ThisAgreementshallbegovernedbyandconstruedunderthe lawsoftheStateofCaliforniawithoutgivingeffecttothatbodyoflawspertainingtoconflictoflaws.
IntheeventofanylegalactiontoenforceorinterpretthisAgreement, thepartieshereto agreethatthesoleandexclusivevenueshallbea courtof competentjurisdictionlocatedinOrange County, California.
6. 7. Assignment. Consultantshall not voluntarilyor by operationof law assign, transfer, subletorencumberalloranypartofConsultant'sinterestinthisAgreementwithoutCity'sprior written consent. Anyattemptedassignment, transfer, sublettingorencumbranceshallbe voidandshallconstituteabreachofthisAgreementandcauseforterminationofthisAgreement.
RegardlessofCity'sconsent, nosublettingorassignmentshallreleaseConsultantofConsultant's obligationtoperformallotherobligationstobeperformedbyConsultanthereunderfortheterm ofthis Agreement.
6. 8. Indemnification and mold Harmless. To the fullest extent of the law, C011SUltant agreesto defend, indemnify, holdfreeandharmlesstheCity, its -electedofficials, officers, agents, andemployees, at Consultant's soleexpense, fromandagainstclaims, actions, suitsor other legalproceedingsbroughtagainsttheCity, itselectedofficials, officers, agents, andemployees arisingoutoftheperformanceortheConsultant, its employees, and/ or authorizedsubcontractors, of theprofessionalservices undertakenpursuant to thisAgreement. The defenseobligation provided for hereundershall applywithoutany advanceshowingof negligenceor wrongdoingby URBAN FUTURES, INC. ( UFI) Page
7 theConsultant, itsemployees, and/orauthorizedsubcontractors, butshallbereQairedwhenever any claim, action, complaint, or suit assertsas its basisthe negligence, errors, omissionsor misconductofConsultant, itsemployees, and/orauthorizedsubcontractors, and/or- wheneverany claim, action, complaintor suit assertsliabilityagainstthe City, its electedofficials, officers, agents, andemployeesbaseduponthe workperformedby Consultant, its employees, and/or, authorizedsubcontractorsunder- this Agreement, whetheror not Consultant, its employees, and/or authorizedsubcontractorsarespecificallynamedor otherwiseassertedto be liable.
Notwithstandingtheforegoing, theConsultantshallnotbeliableforthedefenseorindemnification oftheCityforclaims, actions, complaints, or suitsarisingoutof thesolenegligenceorwillful misconductoftheCity. Thisprovisionshallsupersedeandreplaceallotherindemnityprovisions containedeitherin the City's specificationsor Consultant's Proposal, whichshallbe of noforce and effect.
G. J. independent Contractor. Consultant is and shall be acting at all times as an independentcontractorandnotasanemployeeofCity. Consultantshallhavenopowertoincur anydebt, obligation, orliabilityonbehalfofCityorotherwiseactonbehalfofCityasanagent.
NeitherCitynoranyofitsagentsshallhavecontrolovertheconductofConsultantoranyofConsultant'semployees, exceptassetforthinthisAgreement. Consultantshallnot, atanytime, or in anymanner, representthatit oranyof itsor employeesarein anymanneragentsor employeesofCity. Consultantshallsecure, atitssoleexpense, andberesponsibleforanyandall payment of Income Tax, Social Security, State Disability Insurance Compensation, UnempioyrnentCompensation, andotherpayrolldeductionsfor Consultantandits officers, agents, and employees, and allbusinesslicenses, if anyare required, in connectionwith the services to beperformedhereunder. Consultantshall indemnifyand holdCityharmlessfrom anyand all taxes, assessments, penalties, and interestassertedagainstCity by reasonof theindependent contractor relationshipcreated by thisAgreement. Consultant further agreesto indemnify and hole! Cityharmlessfrom any failureof Consultantto complywith the applicableworker' s compensationlaves. City shallhavethe rightto off -setagainstthe amountof anyfeesdue to Consultantunder this Agreementany amountdue to CityfromConsultantas a resultof Consultant' s failureto promptlypay to Cityanyreimbursementor indemnificationarising underthisparagraph. 6.
10. PERS EligibilityIndemnification. In theeventthat Consultantor anyemployee; agent, or subcontractorof Consultantproviding services under this AgreementclairTrs or is determined by a courtof competentJurisdictionor theCaliforniaPublic EmployeesRetirementSystem ( PERS) to beeligiblefor enrollmentin PERSas anemployeeof theCiiy, Consultantshall indemnify, defend, and holdharmlessCity for- thepaymentof anyemployeeand/ or employercontributions for PERSbenefitson behalfof Consultantor its employees, agents, or subcontractors, as wellas for thepaymentof anypenaltiesand intereston suchcontributions, which wouldotherwisebe theresponsibilityof City. Notwithstanding any otheragency, state or federalpolicy, rule, regulation, law or ordinance to thecontrary, Consultantand any of its employees, agents, and subcontractorsproviding service under this Agreementshall not qualifyfor or becomeentitled to, andherebyagree to waiveany claimsto, anycornpensation, benefit, or anyincidentof employment. by City, including but notlin-ritedto eligibilityto enrollin PERSas anemployeeof Cityandentitlementto any contributionto be paidby Cityfor employercontributionand/ or employeecontributionsfor PERS benefits. 6.
1- 1. C000eration. In theeventany claimor actionis broughtagainstCity relatingto Consultant' s performanceor servicesrenderedunder this Agreement, Consultant shall renderURBAN FUTURES, INC. ( UFI) Page
8 anyreasonableassistanceandcooperationwhichCitymightrequire
6. 12. Ownership of Documents. All findings, reports, CAD drawings, documents, informationanddata, including, butnotlimitedto, computertapesordiscs, filesandtapes furnishedorpreparedbyConsultantoranyofitssubcontractorsinthecourseofperformanceof thisAgreement, shallbeandremainthesolepropertyofCity. Consultantagreesthat anysuch documentsorinformationshallnotbemadeavailabletoanyindividualororganizationwithout thepriorconsentofCity. AnyuseofsuchdocumentsforotherprojectsnotcontemplatedbythisAgreement, andanyuseofincompletedocuments, shallbeatthesoleriskofCityandwithoutliabilityorlegalexposuretoConsultant. CityshallindemnifyandholdharmlessConsultantfrom allclaims, damages, losses, andexpenses, includingattorneys' fees, arisingoutoforresultingfromCity'suseofsuchdocumentsforotherprojectsnotcontemplatedbythisAgreementoruse ofincompletedocumentsfurnishedbyConsultant. ConsultantshalldelivertoCityanyfindings, reports, documents, information, data, inanyform, includingbutnotlimitedto, computertapes, discs, files, audiotapesoranyotherprojectrelateditemsasrequestedbyCityoritsauthorized representative, at no additionalcost to the City.
6. 13. Public Records Act Disclosure. Consultanthas been advised and is awarethat thisAgreementandallreports, documents, informationanddata, including, butnotlinnitedto:
computertapes, discsorfilesfurnishedorpreparedbyConsultant, oranyofitssubcontractors, pursuanttothisAgreementandprovidedtoCitymaybesubjectto publicdisclosureasrequired bytheCaliforniaPublicRecordsAct (CaliforniaGovernmentCodeSection6250etseq.). Exceptionstopublicdisclosuremaybethosedocumentsorinformationthatqualifyastrade secrets, asthattermis definedintheCaliforniaGovernmentCodeSection6254.7, andofwhich ConsultantinformsCityofsuchtradesecret. TheCitywillendeavortornaintainasconfidentialall informationobtainedbyitthatisdesignatedasatradesecret. 1-heCityshallnot, inanyway, beliableorresponsibleforthedisclosureofanytradesecretincluding, withoutlimitation, those recordssomarkedif disclosureisdeemedtoberequiredbylaveorbyorderoftheCourt.
6. 14. Conflict of Interest. Consultant and its officers, employees, associates and subconsultants, if any, will complywithall conflictof intereststatutesof the Stateof California applicabletoConsultant's servicesunderthisagreement, including, butnotlimitedto, thePolitical ReformAct (GovernmentCode Sections 81000, et seq.) and Government Code Section 1090.
Duringthe terraof thisAgreement, Consultantandits officers, employees. associatesand subconsultantsshallnot, withoutthepriorwrittenapprovaloftheCityRepresentative, perform workforanotherpersonorentityforwhomConsultantisnotcurrentlyperformingworkthatwould requireConsultantoroneofitsofficers, employees, associatesorsubconsultantstoabstainfrom a decisionunderthisAgreementpursuantto a conflictof intereststatute. 6A5. Responsibility for Errors. Consultant shall be responsible for its work Linderthis Agreement. Consultant, whenrequested, shallfurnishclarificationand/orexplanationasmayberequiredbytheCity's representative, regardinganyservicesrenderedunderthisAgreementat noadditionalcostto City. Intheeventthatanerrororomissionattributableto Consultantoccurs, withoutprejudicetoanyotherremedytowhichCitymaybeentitledtoatlaworequity, Consultant shall, at nocosttoCity, provideallnecessarydesigndrawings, estimatesandotherConsultant professionalservicesnecessarytorectifyandcorrectthemattertothesolesatisfactionofCityand to participate in any meeting requiredwith regard to the correction. In addition, Consultant shallreimburseCityforanyandallcosts, expensesand/ordamages, if any, thattheCityhasincurred due to the aforementioned error or omission.
6. 16.
ProhibitedEmployment. ConsultantwillnotemployanyregularemployeeofCity URBAN FUTURES, INC. ( UFI)
while this Agreement is in effect.
6. 1 i.
Orderofprecedence. IntheeventofaninconsistencyinthisAgreementandanyoftheattachedExhibits, thetermssetforthinthisAgreementshallprevail. If, andtotheextent thisAgreementincorporatesbyreferenceanyprovisionofanydocument, suchprovisionshallbe deemed a part of this Agreement. Nevertheless, if thereis anyconflictamongthe termsand conditionsofthisAgreementandthoseofanysuchprovisionorprovisionssoincorporatedbyreference, this Agreementshall govern overthe documentreferenced.
6. 18. Costs.
Eachpartyshallbearitsowncostsandfeesincurredinthepreparation andnegotiationofthisAgreementandintheperformanceofitsobligationshereunderexceptas expressly provided herein.
6. 19. No Third Partv Beneficiary Ritghts. This Agreement is entered into for the sole benefitof CityandConsultantandno otherpartiesareintendedto be director incidental beneficiariesof thisAgreementandnothirdpartyshallhaveanyrightin, underor to this Agreement.
6. 20. Headings. Paragraphsandsubparagraphheadingscontainedin thisAgreement areincludedsolelyforconvenienceandarenotintendedto modify, explainorto be a fullor accuratedescriptionof thecontentthereofandshallnotin anywayaffectthemeaningorinterpretation of this Agreement.
6. 21.
Construction. Thepartieshaveparticipatedjointlyinthenegotiationanddraftingof this Agreement. In the event an ambiguity or question of intent or interpretationariseswith respecttothisAgreement, thisAgreementshallbeconstruedasif draftedjointlybytheparties andinaccordancewithitsfairmeaning. ThereshallbenopresumptionorburdenofprooffavoringordisfavoringanypartybyvirtueoftheauthorshipofanyoftheprovisionsofthisAgreement.
6. 22. Amendments. Only a writing executed by the parties hereto or their respective successors and assigns may amend this Agreement.
6. 23.
Waiver. Thedelayorfailureofeitherpartyatanytimetorequireperformanceor complianceby the otherof anyof its obligationsor agreementsshallin no way be deemeda waiverorthoserightstorequiresuchperformanceorcompliance. Nowaiverofanyprovisionof thisAgreementshallbeeffectiveunlessinwritingandsignedbyadulyauthorizedrepresentative ofthepartyagainstwhomenforcementofawaiverissought. Thewaiverofanyrightorremedy inrespecttoanyoccurrenceoreventshallnotbedeemedawaiverofanyrightorremedyin respecttoanyotheroccurrenceorevent, norshallanywaiverconstituteacontinuingwaiver.
6. 24. Severability. If any provisionof this Agreementis determinedby a courtof competentjurisdictionto be unenforceablein any circumstance, suchdeterminationshallnot affectthevalidityorenforceabilityoftheremainingtermsandprovisionshereoforoftheoffending provision in any other circumstance. Notwithstanding the foregoing, if the value of ' this Agreement, baseduponthesubstantialbenefitofthebargainforanyparty, ismateriallyimpaired, whichdeterminationmadebythepresidingcourtorarbitratorofcompetentjurisdictionshallbe binding, thenbothpartiesagreeto substitutesuchprovision(s) throughgoodfaithnegotiations.
6. 25. Counterparts. This Agreement may be executed in one or more counterparts, eachofwhichshallbedeemedanoriginal. Allcounterpartsshallbeconstruedtogetherandshall constitute one agreement.
URBAN FUTURES, INC. (UFI)
6. 26.
CorporateAuthority. ThepersonsexecutingthisAgreementon behalfof the partiesheretowarrantthattheyaredulyauthorizedtoexecutethisAgreementonbehalfofsaid partiesandthatbydoingsothepartiesheretoareformallyboundto theprovisionsofthisAgreement. t`UTNtESSVVIHEREOF, the partiesheretohave causedthisAgreementto be executed byandthroughtheirrespectiveauthorizedofficers, asofthedatefirstabovewritten.
CITY OF FULLERTON
FqfNSULTANT,
Michael Bush, Chief Executive Offricer
On File
Social Security or Taxpayer ID Number
APPRO O FORM:
Richard ones, CityAttorney
Date: 3` `/ isa
Date: - / 7b
URBAIq FUTURES, INC. ( UFI)
EXHIBIT A
SCOPE OF SERVICES
Exhibit A
Scope of Services
General
A. Debt Issuance Services and Municipal Advisont Services ass76an> e Assistance
a)
EvaluatepossiblefinancingoptionsfortheCityincludinganalysis of taxing and bondingcapacityfor new money issuancesand continuedassessmentof outstandingbondissuesforrefinancing potential.
b) PreparefinancingschedulebasedontheCity's needs, advisethe City on reasons for proposed changes to the schedule and the logic behindsuch alterationsand assist all parties in time management to keep the bona issuance moving forward on the City' s timeline.
c) Advise the City in evaluating all available options for credit enhancement, methodof sale, and the type and terms of any bonds to be issued.
d) ConductRequcstfor Proposal (RFP) processfor bondLearn, including underwriter, bond counsel and disclosure counsel for the potentialnew bond issuancesand refinancingof existingbonds, verification agent, trustee, etc.
a) Assist in structuring and marketing bond transactions for competitive sale ( if applicable) through consistent communication with underwriter' s and investors.
f) Coordinate and minimize debt issuance costs with various professionals.
g) Create presentations and attend any meetings or conference calls as requires[ or requested by the City related to pre -issuance; including but not limited to, Resolution of Intent council meetings, financingteam interviewsand discussionsof financing models and needs.
2. Financial Gondition review
a) Evaluatepossiblefinancingoptionsfor the City using commonly accepted standards.
b) Review, evaluate, and comment on adequacy of prepared financial forecast studies.
c) Preparea written report regardingthe feasibility of issuing bonds through analysis of revenues and/or funds pledged to support the bonds. Present such report to the City Council if requested.
3. Financing and Legal Document Preparation and Review
2 a)
CoordinateRFPprocessfor the debt issuanceteam.
b) Attendorganizational, documentreview, andspecialmeetingsor conferencecalls relatedto the bondfinancingas requiredor requested by the City.
c)
Evaluate, advise, andconsultwiththeCityanddisclosureand/or bond counsel regarding financial and non financial bond covenants of each bond issue.
d) Assistinfurnishingmaterialanddatato ratingagencies; bond insurers, letterof creditprovidersandotherprofessionalsas needed to facilitate the issuance process.
e)
Advisestaffasto relevantcriteriaappliedbymajorrating
agencies, developwrittenpresentationsfor ratingagencies, preparestaffinadvanceof ratingpresentations, andparLicipatein the rating presentationsby attendingratingmeetingsor -
conference calls.
4. Official Statement Preparation and Review
a) Lead team discussions in conjunction with disclosure and/or bond counselon form, contentand sufficiencyof informationin the official statements.
b) Providefinancialdataandstatisticsrelatingto theCityandthe specific bond issuance, review 'the Preliminaryand FinalOfficial Statements in conjunction with disclosure and/or bond counsel and ensurethat data includedin the documentsaccuratelyreflects the City' s current financial state.
c)
Coordinatewith the City and third partiesto achievean acceptable and timely market reception for the Bonds and the Official Statements, whilemakingappropriatedisclosureasapprovedby the City and make certain that all aspect of rule 15(c)2-12 of the Securities Exchange Act are met.
Pricing of Bond issu;;
a) Competitive Sale:
i) I - ket the bonds through consistent communication with underwriters, coordinate presale advertisement of bonds in known publications, such as the Bond Buyer and
Bloomberg, andadvisetheCityasto appropriatetimingof
the competitive sale to ensure maximum market
participation.
2) Advise as to the structureof the bonds, includingsize maturity schedules, call provisions, credit enhancement and other matters.
3) Coordinate the call for bids; evaluation of bids,
recommendation to the City regarding sufficiency of bids, and awarding of bonds.
4) Assist in resizing or restructuring of bonds based on bidding results, if necessary.
b) Prepare post sale analysis report based on bid results, including comparable sales data.
b) Negotiated Sale:
1) Identify and assist in the selection of competent
underwriters to sell bonds, distinguishing among
investment banking firms in terms of the areas in which they are best able to function, such as but not limited to, institutional vs. retail sales distribution, variable rate or fixed rate structures, short- term, intermediate - term, or long- term maturities.
2) Recommend structure of underwriting 'ream based on the analysis of past performance ( i.e., co -managers, selling group; syndicate, etc.).
3) Coordinate pricing meetings and offerings of negotiated issues with the City and underwriter( s).
4) Review, monitor, and advise the City in negotiating interest rates and spreads based on analysis of current vs.
historical market conditions.
6. Bond r aosing On wiit bond cuunsail, erustee, paying agent and other professionals where applicable)
a) Review closing memorandum with bond counsel to confirm activities at closing and the role of each party.
b) Coordinate closing process through consistent communication with all relevant panties to maizecertain each correctly understands its role in the process.
c) Oversee procedures resulting in the pre -closing and closing of the sale of securities and the delivery of funds to the appropriate parties.
d) Assist City in evaluating the initial investment of bond proceeds for construction fund, debt service fund, escrow fund, cost of issuance fund, etc.
e) Monitor the flow of funds to ensure proper deposit of all monies and treatment of any excess deposit in cost of issuance, escrow funds or construction funds, if necessary.
7. Special Meetings with the Cit
1) Attend City Council meetings and any special meetings and/or conference calls with the City, disclosure and/or bond counsel, bond insurers, rating agencies, or any other third parties as the City deems necessary to facilitate the issuance process.
4 8.
AdditionalGeneralMunicipalAdvisory Services (on an as-needer:' basis)
1) FinancialPlanningand fUlanagernentServices
a)
Periodicallymonitoroutstandingdebt issuesfor
refunding opportunities, update the Administrative
Services Director on findings and advise when and
when not to issue refunding bonds based on
savings analysis and market trends.
b) Investigate, analyzeandformulatefinancing
alternatives, programsandstrategiesconsidering
the City's objectives, existingdebt structure, fund
balances and rate structures.
c)
Prepareand presentto City officials, staff and
Council (if requested), financingplansand other
preliminary reports and plans leading to eventual
financing activities.
d) Prepareand presentto City officials, staff and
Council ( if requested), analyses of the City's
financing options.
e)
Assist in the developmentof policyoptionsfor the
City's applicationinfinancialandfinancing
situations.
f) Evaluatethe City's optionsfor project phasing
plans, and various financing strategies for specific
circumstances. including but not limited to,
traditional bond offerings, private placement; limited
offerings, local bank and publicfinancing
approadhes.
2) Capital Financing Services
a) Periodically assemble, review and analyze
informationregardingthe City's financial status,
debt structure, economic base and related matters
pertaining to financing and capital requirements.
b) Advise the City on capital market information and
conditions, interestratetrends andfinancingterms,
including maturity and amortization schedules,
redemption provisions, additional debt provisions,
covenants and credit enhancement, and other
issuesapplicableto the City.
c)
Developeconomicmodeling, sensitivityanalyses
and generalinformationrelevantto structuringand
financingalternatives, discussingpositiveand
negative considerations to enhance the decision
making process.
d) Advise the City as to overall structure of each
financingissue, includingsizeandtiming, maturity
schedules, call provisions and other matters.
e)
Work with the City's disclosureand/or bondcounsel
inthedevelopmentoffinancingdocumentation.
3) Special Project deeds
a)
Preparefinanciafanalysisasrequestedthatmayor -
may not be directlyrelatedto a currentor proposed
financing issue, includingbut not limitedto,
Financialprojections, economicmodeling, attending
meetings, and offering advice on decisions that
may impact the City's finances.
b) Provideon -calladviceasrequestedbytheCityin
relation to any and all financial matters-
c) Provide detailed research and updates on financial
marketconditionsthat mayaffect the City through
regular- reporting.
4) Assist in the Development of Policies to address
a) Debt Management and Issuance
b) Pension i and OPEB Obligations
c) Investment Portfolio
d) Any other policiesto providegovernanceoverCity
liabilities
5) Assist in the selection of an investment advisor
a)
PreparerequestforproposalsandassistCitywith
evaluation/ selection process for an investment
advisor
9, Other Requirement ---
a)
b) Whethercompetitionor negotiatedsales, the selectedfirm will be forbiddenfromparticipating, whetheraloneorinanunderwriting syndicate, inthebiddingonornegotiationforpurchaseofthe
City's bonds. The selectedfirm will be requiredto acknowledgeits desireto serveasmunicipal / financialadvisoronlytotheCity. c)
The municipal advisor shall circulate analysis and documents to andcoordinateitsservicestotheextentrequestedbytheCity.
The City reserves the right to consider whatweight should be afforded to the advice of the municipal advisor.
d) The municipal advisor must agree that throughout the term of the agreement it will continue to deliver services for bond issues that may not closeand provideongoingadvice, assistanceor analysis on other City related financing issues without additional compensation, from the City.
e) As a fiduciary to the City, the selected municipal advisor- shall not benefit from the advice providedto the City independentlyfrom the benefit conferred through the contractual arrangement with the City. Iftheselectedmunicipaladvisorreceivescompensation otherthanthroughthecontractualarrangementwiththeCityfor any advicegiven to the City, sucharrangementshall be termsfor immediateterminationoftheagreementwiththeCity.
r
Thepurposeofamunicipaladvisorconstitutesmorethan
managingtheprocessof debtissuance. Themunicipaladvisor
shouldconstantlyseektopreservethebestinterests, reputation andlongevityoftheCityandallofitsfinancingentitiesthrough diligentreviewandconsiderationofallbondissuesand
alternativesinconnectionwithallpast, presentandfuturedebt issuances, keepinginmindtheCity's reputationintheMunicipal BondMarketandthelongevityoffinancialhealthforallCityfunds.
13. PensionandOtherPost -EmploymentBenefits (OPEB) FundingStrategyDevelops ent a)
AnalyzetheCity'scurrentandfutureunfundedactuarialliabilityUAL) basedonavailableactuarialinformation, CalPERS assumptions, fundedstatus, assets, andestimatedcontribution rates.
b)
DescribetheassumptionsusedtodeterminethefutureUAL
includinganyvolatility, anyliabilitytoapre -funding, andother risks.
c)
ProvideadescriptionoffinancingoptionsfortheCity'spension andOPEBUALbasedonalldebtstructurescurrentlyavailable
includingrisksand costs involvedwith each.
d)
Analyzetheoptiontopre -fundonlyaportionofthepensionand
OPEBUALandtheimpactontheCity'son -goingobligationand
assesstheCity's financialcapacity.
e)
Analyzetheoptiontousebondproceedsinastabilizationtrustas opposedto payingthe pensionUALdirectlyto CaIPERS. Provide the benefits and risks.
f)
Providedebtserviceobligationsunderthevariousfunding
scenarios.
g) ProvideoverallfinancialimpactstotheCitybasedonall
scenarios.
h)
AnalyzefuturecontributionlevelsfromtheCity.
i)
Ifnecessary, coordinateandrepresenttheCityinmeetingswith CaIPERSto discussthe City's options.
j) AnalyzetheimpactontheCity'sbondratingundereachfunding scenario. If necessary, coordinateandrepresenttheCityin meetingswithratingagenciesto discusstheCity's optionsand strategies.
k)
Assistinthepreparationofstaff" reportsforanyCityfinancing approvals.
AsisttheCity .nfitli developmentofanynecessarymaterialsand participationincommunityoutreachastheCitydeemsnecessary. m)
Provideand/orsupportdebtissuancesservicesasrequested.
n)
Assistin developmentof PensionFundingPolicyfor
consideration by City Council.
o)
1=ollovvinginput from City staff and Council, develop
implementationplan.
C. Continuing Disclosure Services
Background
In 1989the SecuritiesExchangeCommission (SEC) adopted Rule 15c2- 12 ( the " Rule") to improvedisclosurepracticesinthemunicipalmarketplace. Amendmentsweresubsequently made, andcontinuetobemade, toincreasetheamountofreliableinformationinthesecondarymarket. Theseamendmentsr ovvrequireissuerstoprovidecontinuingdisclosuretl roughoutthe lifetheirbondissues. TheRulemandatesthata municipalsecuritiesbrokercannottake possessionorsellmunicipalsecuritiesunlesstheybelievethattheissuerofthesecuritieswill complywith the SEC's continuingdisclosurerequirements.
Continuing Disciosrure c© ge sf Services
Thescopeofservicesforon -goingcontinuingdisclosureanddisseminationagentservicesincludes:
a)
Databaseof CDRequirements: UFImaintainsandcontinuesto
developadatabasetomonitor, track, andreviewreportingand filingrequirementsasoutlinedinContinuingDisclosure
Agreementsand other bonddocuments. As such, we are
preparedto programtheCity's bondissuesintothedatabase.
b) Assemblyand Reviewof CD Reports: The annualreportswill beassembledinconformancewiththeContinuingDisclosure
Agreementsand the MSRB. Preparationof analyticaltables
requiredfortheannualreportswillbedevelopedin-house. City staff will be given ampletime to reviewthe reportsbefore posting and sending to the trustee( s)_
c)
FilingtheAnnualReports: UFIwillactasthe Dissemination
Agent to ensureall disclosuredocumentsare filed on MSRB's Electronic Municipal Market Access (" ENIMX) correctlyand ina timely manner.
d)
FinalCopiesofCDReports: Uponcompletionofeachstep
detailed above, UFIwill also send hardcopies of the final reports to the City.
e)
MonitoringofSECRule15c-12(b)(5): UFIisconsistentlycalled on by the industryto serve as educatorfor changesin
regulationsorbestpractices. Thismeansthatweareconstantly abreastofthelatestdevelopments. Asan industryleader, we arealwaysonthefrontlinesof implementingchangesasthey
evolve.
Notificationof Deadlinesand MaterialEvents: UFi will draft and file the requirednoticesto EMMAshould2 significant/material eventoccur. Therearetotaloffifteenmaterialeventswhich
maybereportabletotheli'ISRB: Nineoftheseeventsare "per
se" materialandmustalwaysbereported, whilesi>: ofthe
eventsarereportableas theyriseto a levelof being "material." TheseeventsmusttypicallybereportedtotheNiSRS (EMMA)
within10businessdaysof theevent. Deadlinesandmaterial
events are coveredthrougha four -prongedapproachthat
ensuresthat everyevent and deadlineis captured, conveyed, and processed:
ImmediatelyalertCitystaffofthedeadlineorevent. In
thecaseofa ratingchangeevent, theBloomberg
notificationis also fonivardedro Citystaff;
Postnotificationof materialeventto EMMAwithinthe
required 10 business days;
SendpostingconfirmationfromEivi1MAtoCitystaff;
SendpostingconfirmationtotheCity'strustee(s)
Annual IDebtTransparencyReporting
Background
PursuamtoSenateBill1029, stateandlocalissuersarerequiredtosubmitanAnnualDebt Transparency Report (" ADTR")
to the CaliforniaDebtand InvestmentAdvisoryCommission
CDIAC—)
forallbondissueswhichhavesubmittedaReportofFinalSaleonorafter- January 21, 2017. Thepurposeofthenewreportingrequirementsistotrackhowbondproceedsare spentafterissuance. Ourcomprehensiveunderstandingofthenevvreportingrequirementswas achievedbytrainingdirectlywithCDIACstaffduringtheinitialreportingperiod. annual Debt Transparency portinrr Scope or ServicesR
ThescopeofservicesforAnnualDebtTransparencyReportingincludes:
a)
AssemblyofReports: Collectthenecessaryinformationrelating to bond proceedsfrom City staff or the assignedTrusteefor - each issue. Assembleeach reportin compliancewith the
requirements set forth by CDIAC.
b) Filingof Reports: FileeachADTRwithCDIACthroughtheir
onlinereportingsysternonor beforeJanuary31, ofeachyear.
Wiarks- Roos Yeer! iy s=iscai , fetus Reuc r i€Icy
PursuanttoGovernmentCodeSeddon6599.1(b) oftheMarks -RoosLocalBondPoolingActof 1985, anyJointpowersauthoritysellingbondspursuanttotheActonorafterJanuary1, 1996 whichusestheproceedsoftheMarks -Roosbondstoacquireoneormorelocalobligation(s) or transfersfundstoalocalobligorunderthetermsofadebtcontractbetweentheAuthorityand the LocalObligoris requiredto reportannuallyon the fiscal status of the local obligations acquireduntilthefinalmaturityoftheacquiredlocalobligations.
Marks -Roos 1eailyFiscalStatusReorUngScopeofServices,
ThescopeorservicesforIVlarks-RoosYearlyFiscalStatusReportingincludes:
a)
AssemblyofReports: Collectthenecessaryinformation
requiredforeachAuthorityandLocalObligorreportfromthe
County, Citystaff, ortheassignedTrusteeforeachissue.
Assembleeachreportin compliancevttiththerequirementsset forth by CDIAC.
b)
FilingofReports: FileeachAuthorityandLocalObligorreport withCDIACthroughtheironlinereportingsystemonorbefore
October30, of each year.
wbiEi•_- iE.Ve
acl. r's e n d
Dueto abusesassociatedwithtax-exempt 'financings, theFederalGovernmentissued regulationstominimizethebenefitofinvestingbondproceeds. TheInternalRevenueCodeof 1986Section148createdtheYieldRestrictionRulesandtheRebateRules, TheYield RestrictionRulesrestricttheinvestmentyieldthatmaybeearnedonbondproceeds. Unless certainexceptionsapply, bondsarearbitragebondsiftheissuerinvestsallorpartofthebond proceedsatayieldmateriallyhigherthanthebondyield. TheArbitrageRebateRulesstatethat certain arbitrage earnings must be paid, or `rebated," to the U.S. Treasury. This means that evenifanissuerispermittedtoinvestinhigheryieldinginvestmentsundertheyieldrestrictionrules, it may have to rebate those arbitrage earnings to the U. S. Treasury. A rebate computationandpaymenttotheFederalGovernt-rent, ifapplicable, isgenerallyrequiredto bemadeatleasteveryfiveyearsoreach "RebateInstallmentComputationDate" andupon finalredemptionormaturityofthebonds "FinalRebateComputationDate°. Therebatepayment, if applicable, isduetotheFederalGovernmentwithin60daysfromeithereachRebate InstallmentComputationDateor FinalRebateComputationDate. s pit: e E afe Scs e of Services
Thescopeof servicesforarbitragerebatecalculationsincludes:
a)
PreparationforCalculations: Collectthenecessarybond
documentsandtruststatementsrequiredforthecomputation
period.
b)
CalculateArbitrageRebate: Calculatetherebateliability (ifany) foreachbondtransactionpursuantto thecovenantssetforthin the Tax Certificate.
c)
Assemblyor'Repolts: Providea rebatecomputationreportto
theCityandassignedTrusteenolaterthansixty (60) clays
after. (i) the end of every fifth bondyear, and (ii) the final redemption or maturity.
End of Scope of Services
EXHIBIT B
FEE SCHEDULE
Exhibit 8
UFI M
LeaseRevenue/Cols, Utility Revenue, Tax
Allocation, AssessrnentDistrict/CFDBonds
TaxandRevenueAnticipationNotes
FederallySubsidizedBonds/Notes
General Obligation Bonds
Private Placements/_Loans
Pension Obligation Bonds`'
Fee Schedule'
40, 000 - $ 45, 000
30, 000 - $ 40, 000
45, 000
50, 000 --
30, 000 - $ 35, 000
45, G00 - $ 100, 000
1) Thefeerangesprovidedrepresentpricingfortypicaltransactionsineachcategory. Feeswillbe determinedbaseduponscope, size, andcomplexityofeachbondissueandmaybeadjustedoutside Ofsuggestedrangesasnecessary.
2) Feerangeprovidedforrnnauguralandsubsequenttranchesofpensionobligationbonds.
Feesforbondfinancingsarecontingentuponclosing. UFI'sfeesareexclusiveofout-of-pocketexpensessuchastravel, thirdpartydata -fees, andinternalcompliancerequirements. Out-of- pocketexpensestypicallydonotexceed $2,500onanytransaction.
UFIisavailableonatimeandmaterialsorhourlybasistoprovideservicessuchaslong-termfinancialforecasting, consultingonthemanagementofpensionandOPEBliabilities, Capital ImprovementProgramfundingplanning, post -issuancecompliance, analyzingandinterpretinglegislationorcomplexbusinessplans/proposalsforfinancialopportunitiesandimpacts, aswell asadditionalprojectsasneeded. ProvidedbelowisaratescheduleforkeystaffmembersproposedtobeassignedtotheCity'sEngagements. TherateschedulebelowshallbeusedforhourlyengagementsthroughApril 30, 2023.
BeginningonMay1, 2023andthereafter, UFI'shourlyrateswillbeadjustedtotheschedulebelow. ShouldtheCityandUFIelecttocontinuewitheitherofthetwooneyearoptionstorenewextendingtheagreementbeyondApril30, 2026, thehourlyrateswouldbesubjecttonegotiation.
ContinuingDisclosure, AnnualDebtTransparencyReporting, Marks -RoosYearlyFiscalStatusReporting, andArbitragerebateServicesfeestobenegotiatedatsuchtimetheCityelectstoengageUFIforanyofsuchservices. UFIwouldrequestanopportunitytodiscussadjustmentsto themunicipaladvisoryandhourlyfeesaboveonanannualbasis, beginninginMay2023asjustifiedbyreasonofincreasedcosttothefirmandthe "thenprevailingadvisory services. fees for such municipal
EXHIBIT C
CERTIFICATESOF INSURANCE