ITEM 4. 11
CITY MANAGER' S REPORT
FEBRUARY 13, 2023 CITY COUNCIL REGULAR MEETING
ITEM: AUTHORIZE TASK ORDER NO. 6 WITH KNN PUBLIC
FINANCE FOR MUNICIPAL ADVISORY SERVICES
RECOMMENDATION: Adopt Resolution Authorizing Task Order No. 6 With KNN Public Finance for Municipal Advisory Services
Related to the Potential Refinancing of Mossdale
Village Refunding 2013 Series A
CEQA STATUS: Not a Project as defined in Article 20, § 15378 of the California Environmental Quality Act ( CEQA)
Guidelines
SUMMARY:
In recent months, Staff has completed a refinancing analysis for the Mossdale Village Refinancing 2013, Series A ( Mossdale CFD/ AD Refinancing). Current market conditions are such that the 2013 Bonds can be refinanced by the issuance of refunding bonds that will have a lower interest rate and cause a corresponding reduction of debt service payments. The existing obligations currently consist of approximately $ 12. 9 million in outstanding principal, has a final maturity date of September 2, 2035 and has an average remaining interest rate of 5. 57%.
Based on a current market analysis, the City has the opportunity to refinance the Mossdale CFD/ AD Refinancing. Based on current and recent market conditions, it is estimated that a refinancing would have net present value savings ( NPV), net of issuance costs, of approximately $ 1. 1 to $ 1. 5 million and an average annual savings per household of $ 63 to $ 82 for property located in both districts.
In order to begin the refinancing process, the City needs to obtain professional assistance in the form of financial advisory services. The City has worked with KNN Public Finance ( KNN) on many bond issuances and refinancings in the past and they are very familiar with the City. KNN has submitted Task Order No. 6 to provide Municipal Advisory Services to the City and assist with the refinancing of the Mossdale CFD/ AD Refinancing. Task Order No. 6 includes three ( 3) financing options:
1. Direct Purchase/ Private Placement - $ 61, 500
2. Public Offering without credit rating - $ 76, 500
3. Public OfFering with credit rating - $ 86, 500
All three options will be reviewed and the City will select the best option that maximizes savings and/ or locks in savings sooner, thereby reducing the risk that the expected savings level can' t be achieved due to the potential for deteriorating market conditions. The authorization to proceed with the transaction and the related documents will come back to the City Council for approval at a later date.
CITY MANAGER' S REPORT PAGE 2
FEBRUARY 13, 2023 CITY COUNCIL REGULAR MEETING
AUTHORIZE TASK ORDER NO. 6 WITH KNN PUBLIC FINANCE
Staff recommends Council authorize Task Order No. 6 with KNN to provide Municipal Advisory Services related to the potential refinancing of the Mossdale CFD/ AD Refinancing. The fees above are contingent upon the successful pricing and closing of the transactions. All fees will be included in the cost of issuance fund funded from the proceeds of the debt refinancing.
BACKGROUND:
In 2003, the City issued Mossdale Village Community Facilities District ( CFD) 2003- 1 and Mossdale Assessment District 03- 1, Series 2003 ( Mossdale Village Refinancing).
The CFD portion of the debt was issued to construct the Mossdale Landing and the Lathrop Station Urban Design Concept Projects share of the water delivery system established under the South County Surface Water Supply Project ( SCSWSP) and the delivery of potable water facilities from the City' s wells, including transmission and delivery facilities. The AD portion of the debt was to finance infrastructure improvements in the Mossdale Village area including: offsite water supply, recycled water supply, sewer collection and storm drain piping, a 750, 000 gallon per day membrane biological reactor wastewater treatment facility, ofFsite storm drain outfalls and retention and detention basins, a common water storage tank and a common sanitary sewer pumping station as well as all appurtenances and utility improvements necessary to support the infrastructure.
In 2013, the City refinanced both the Mossdale CFD and the Mossdale AD ( Mossdale CFD/ AD Refinancing). The refinancing had a net present value savings ( NPV) of
1. 03 million and saved residents an average of $ 49 per year.
Based on a current market analysis, there is an opportunity to once again refinance the CFD and AD. Depending on market conditions, it is estimated that a refinancing will have NPV savings of approximately $ 1. 1 to $ 1. 5 million and an average annual savings per household of $ 63 to $ 82. The economics of the refinancing are also impacted by the fact that the 2013 bonds can be redeemed early with no redemption premium starting on September 2, 2023. In order to take advantage of no early redemption premium and to issue the refinancing bonds as tax- exempt, the refinancing bonds can close no sooner than early June.
There are many steps necessary to complete this transaction. Staff is targeting the following dates:
1. March 13, 2023 Council Meeting - Council to approve SB 1029 general debt policy
2. May 8, 2023 Council Meeting - Council to approve Refinancing
3. Early June 2023 - Close on Refinancing
CITY MANAGER' S REPORT PAGE 3
FEBRUARY 13, 2023 CITY COUNCIL REGULAR MEETING
AUTHORIZE TASK ORDER NO. 6 WITH KNN PUBLIC FINANCE
REASON FOR RECOMMENDATION:
The results of the refinancing will assist with the goal of keeping assessments rates stable for residents.
CEQA STATUS:
Staff has determined that the item is not a project as defined in Section 15378 of the State CEQA Guidelines.
FISCAL IMPACT:
Based on recent and current market conditions, it is estimated that a refinancing will have NPV savings of $ 1. 1 to $ 1. 5 million and an average annual savings per household of $ 63 to $ 82.
ATTAC H M E NTS:
A. Resolution Authorizing Task Order No. 6 With KNN Public Finance for Municipal Advisory Services Related to the Potential Refinancing of Mossdale Village Refunding 2013 Series A
B. Task Order No. 6 Agreement for Municipal Advisory Services KNN Public Finance
CITY MANAGER' S REPORT PAGE 4
FEBRUARY 13, 2023 CITY COUNCIL REGULAR MEETING
AUTHORIZE TASK ORDER NO. 6 WITH KNN PUBLIC FINANCE
APPROVALS:
I)
I
P aCari James; D te
Director of;Fin nce
Z- 7 ? z
Salvador Navarrete Date
City Attorney
r 2•' 23
Ste en J. Salvatore Date
City Manager
RESOLUTION NO. 23-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP AUTHORIZING TASK ORDER NO. 6 WITH KNN PUBLIC FINANCE FOR
MUNICIPAL ADVISORY SERVICES RELATED TO THE POTENTIAL
REFINANCING OF MOSSDALE VILLAGE REFUNDING 2013 SERIES A WHEREAS, in 2003, the City issued Mossdale Village Community Facilities District ( CFD) 2003- 1 and Mossdale Assessment District 03- 1, Series 2003 ( Mossdale Village Refunding); and
WHEREAS, the CFD portion of the debt was issued to construct the Mossdale Landing and the Lathrop Station Urban Design Concept Projects share of the water delivery system established under the South County Surface Water Supply Project ( SCSWSP) and the delivery of potable water facilities from the City' s wells, including transmission and delivery facilities; and
WHEREAS, the AD portion of the debt was to finance infrastructure improvements in the Mossdale Village area including: offsite water supply, recycled water supply, sewer collection and storm drain piping, a 750, 000 gallon per day membrane biological reactor wastewater treatment facility, offsite storm drain outfalls and retention and detention basins, a common water storage tank and a common sanitary sewer pumping station as well as all appurtenances and utility improvements necessary to support the infrastructure; and
WHEREAS, in 2013, the City refinanced both the Mossdale CFD and the Mossdale AD ( Mossdale CFD/ AD Refinancing). The refinancing had a net present value savings ( NPV) of $ 1. 03 million and saved residents an average of $ 49 per year; and
WHEREAS, based on a current market analysis, the City has the opportunity to refinance the Mossdale CFD/ AD Refinancing. Based on current and recent market conditions, it is estimated that a refinancing will have a net present value savings ( NPV) of $ 1. 1 to $ 1. 5 million and an average annual savings per household of $ 63 to $ 82 for property located in both districts; and
WHEREAS, in order to begin the refinancing process, the City needs to obtain professional assistance in the form of financial advisory services.
The City has worked with KNN Public Finance ( KNN) on many bond issuances and refinancings in the past and they are very familiar with the City; and WHEREAS, KNN has submitted Task Order No. 6 to provide Municipal Advisory Services to the City and assist with the refinancing of the Mossdale CFD/ AD Refinancing. Task Order No. 6 includes three ( 3) financing options:
Resolution No. 23- Page 1 of 3
1. Direct Purchase/ Private Placement - $ 61, 500
2. Public Offering without credit rating - $ 76, 500
3. Public Offering with credit rating - $ 86, 500
WHEREAS, all three options will be reviewed and the City will select the best option that maximizes savings and/ or locks in savings sooner, thereby reducing the risk that the expected savings level can' t be achieved due to the potential for deteriorating market conditions. The authorization to proceed with the transaction and the related documents will come back to the City Council for approval at a later date.
NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Lathrop does hereby authorize Task Order No. 6 with KNN to provide Municipal Advisory Services related to the potential refinancing of the Mossdale CFD/ AD Refinancing. The fees above are contingent upon the successful pricing and closing of the transactions. All fees will be included in the cost of issuance fund funded from the proceeds of the debt refinancing.
Resolution No. 23- Page 2 of 3
The foregoing resolution was passed and adopted this 13t" day of February, 2023, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney Resolution No. 23- Page 3 of 3
DocuSign Envelope ID: 69 D3737- C 5B- 1752- 8336- 4A0$ 98P1G603 e.
public finance
Task Order No. 6 Pursuant to Master Agreement, Dated November 18, 2003 for
Municipal Advisory Services
THIS TASK ORDER N0. 6, dated as of the _ day of February, 2023 by and between CITY OF LATHROP, hereinafter" City° and KNN PUBLIC FINANCE, LLC, hereinafter" KNN".
WITNESSETH
WHEREAS, the City desires municipai financial advisory services in connection with the potential refinancing of the existing Lathrop Financing Authority Revenue Bonds ( Mossdale Village Refundings), 2013 Series A (" Mossdale CFD/ AD Refinancing"). The existing obligations currently consist of approximately $ 12. 91 million in outstanding principal, have a final maturity of September 2, 2035 and may be redeemed at the option of the City on any date at with a 30 day redemption notice, without an early redemption premium, beginning on September 2, 2023. The existing obligations do not have a credit rating from one of the major bond credit rating agencies. The City desires to pursue the Mossdale CFD/AD Refinancing in order to achieve debt service savings and, as a result, reduce the annual special taxes levied on the property within Community Facilities District No. 2003- 1 ( Mossdale Village) and the annual assessment installments levied on the property within in Reassessment District No. 2013- 1 ( Mossdale Village).
NOW, THEREFORE, the City and KNN agree as follows:
1. KNN acknowledges that it has a fiduciary duty to the City and agrees to act in the City' s best interests. KNN agrees to work cooperatively with the City and other financing professionals to help execute and successfully complete the Mossdale CFD/ AD Refinancing, including services as needed specified in Exhibit A of this Agreement.
2. KNN hereby confirms that it is registered as a municipal advisor with the Securities Exchange Commission and Municipal Securities Rulemaking Board ( the " MSRB"). Under MSRB Rule G- 23, KNN will not serve as underwriter for any bonds to be issued in a financing for which we are acting as the City' s Municipal Advisor.
3. The City agrees that in consideration for the foregoing services to be performed by KNN, the City will do the following:
a) The City will cooperate with KNN and will provide all information which is reasonably required to enable KNN to fulfill its duties to the City. b) The City will pass such ordinances and resolutions and perform such reasonable acts as may be necessary to assure compliance with all applicable laws, ordinances and constitutional provisions pertaining to the issuance of its securities and other related services. 2054 University Acenue, Suite 300 I Aerkeley, CA 94704 Ibfain 510- 839- 8200 5901 West Century Boulecazd, Suitc 750 I,os Angeles, CA 90045 I 1ain 310- 348- 2901 Ar A
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DocuSi n Envslcp i: 69BD3737- CC 8-4752-9336-4A0888A1 803 Municipal Advisory Agreement
c) The City will pay KNN for services herein outlined and other services incidental hereto in accordance with Exhibit B of this Agreement.
4. KNN' s services consist solely in providing expert and experienced assistance to municipalities as a Municipal Advisor and consultant. KNN does not render any legal, accounting or actuarial advice.
5. This Agreement is subject to the terms of the Master Agreement for Financial Advisory Services dated November 18, 2003, as subsequently amended, between the City and KNN and shall be deemed a Task Order under said Master Agreement.
6. This Agreement may be cancelled by either party upon 30 days written notices. Costs incurred by and fees due KNN for services performed prior to the cancellation date sha l be due and payable upon submission of an invoice.
7. This Agreement shall end on the closing date of the bond transaction, unless otherwise discontinued per the provision described above, or extended by mutual agreement. Any extension notice shall stipulate the AgreemenYs revised expiration date. Notwithstanding the foregoing, KNN staff shall remain availabfe to the City staff after the bond closing to answer routine questions regarding the refinancing, as provided in Exhibit A.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and year first above written.
CITY OF LATHROP
By
APPROVED AS TO FORM: Stephen J. Salvatore, City Manager Date:
Salvador Navarrete, City Attorney
Date: ZZ-r' -' 3
KNN PUBLIC FINANCE, LLC
DoeuSigned by:
gy °
u"' j°
Dan Cox, Director
1/ 31/ 2023
Date:
2054 Uni- ersity Acenue, Suite 300 I Berkeley, CA 94704 I Main 5t0-839- 8200 5901 West Cenmry Boule azd, Sui[ e 7 0 I. os Angcles, CA 90045 Main 310- 348- 2901 4 I.imited i.:ia6ility Ca t
pany
DocuSign Env lope ID: 69BD3? 37- CC,.58- 4752- 36- 4.4989 A1D Q3 Municipal Advisory Agreement
Exhibit A
Transactional Scope of Services
1. Provide preliminary and updated refunding analyses. Monitor the estimated savings level and advise City to the extent of significant adverse changes relative to prior estimates and/or savings thresholtls. Provide City with costs of issuance estimates and identify any noncontingent costs.
2. Provide a preliminary evaluation of selling the refunding obligations through a private placement/ direct purchase, which may include an informal solicitation of indications of interest in advance of a request for proposal process.
3. Assist the City in assembling the remaining components of the financing team, as necessary or requestetl ( i. e., verification agent; underwriter, in the event of a public offering). It is contemplated that Jones Hall wil serve as bond counsel and disclosure counsel ( as applicable) and NBS Government Services, the City's current assessment and tax administrator, will serve as reassessment engineer and will provide the property data antl tables with respect to the property in the community facilities district and reassessment district. It is initially contemplated that a special tax consultant may not be needed but if there is a need for such services, it is contemplated that Goodwin Consulting Group would serve in that role.
4. Prepare a distribution list and a timetable for the proposed financing in consultation with other financing team members; update both as needed.
5. Recommend or confirm the method of sale between a public offering or private placement/ direct purchase.
6. If a private placement/direct purchase approach is pursued, preparation of a request for proposals and circulate to potential financing providers. Assist the City in evaluating the cost and other terms of each proposal and advise the City as to whether to continue to pursue a private placement/direct purchase with one provider or to pursue a public offering. For a direct purchase, it is not contemplated that the loan will meet certain regulatory requirements such that a placement agent will not be necessary.
7. Work with bond counsel and City staff in developing the initial form of documents for the refunding obligations.
8. Attend meetings/ conference calls as requested by the City to discuss and formulate plans for the proposed financing and/ or for document review. This may include meetings of the City Council where approval of the financing is considered,
9. Prepare various debt service and structuring analysis for the Mossdale CFD/AD Refinancing, and savings structures, and/ or review debt service schedules and/ or analyses prepared by the underwriter as applicable.
2054 Unicersity lvenue, Swte 300 I I3erkeley, CA 94704 ' biain 510- 839- 8200 5901 West Cenmry Boulecazd, Suite 750 I Los Angeles, CA 90045 I hSain 310- 348- 2901 A l.imited Liabilih Cumpnnp
DocuSign Envelope ID: 69BD3737- CC58- 4752- 9338- 4A0898A1D603 Municipal Advisory Agreement
10. Advise and provide recommendations on any remaining structural features of the transaction, such as financial covenants, cali features, etc.
11. Assist with staff reports and policy issues, including providing a draft debt policy ( required by SB 1029).
12. Develop good faith estimates as required by State law.
13. Assist with the review and negotiation as needed of all bond and disclosure documents, as applicable, including but not limited to the Preliminary and Final Officiai Statement, Private Placement Memorandum, direct purchase documents, City Councii Resolution, Trust Indenture, Lease Agreements, Bond Purchase Agreement, Continuing Disclosure Agreement, O cial Notice of Sale, etc. It is contemplated that the relevant bond antl disclosure documents will be prepared by City's bond and disclosure counsel.
14. For a public offering ( competitive or negotiated sale), ativise whether to pursue a credit rating and, if so, prepare the necessary materials and apply for ratings from the rating agencies, and manage the City' s oral presentation or telephone conference interviews with the rating analysts. For a private placemenUdirect purchase coordinate a credit review/ due diligence call or meeting between the City and the prospective purchaser
15. If applicable, for a rated public offering, conduct analyses to determine economics of bond insurance and reserve surety assist City with solicitation of bond insurance bid( s), if deemed beneficial. I
16. Direct the advertisement and outreach for bids for sale of the bonds for a competitive sale, if applicable.
17. Review tax-exempt market supply and demand variables in connection with the bonds, make recommendations regarding the timing of the pricing ( public offering).
18. Conduct pricing oversight and market comparables analysis for negotiated sale. Assist the City in pricing negotiations ( negotiated sale or direct purchase/ private placement). Conduct the bid opening and verify the lowest bitlder ( i. e., lowest true interest cost) in the case of competitive sale.
19. If the refunding escrow is net funded, assist in the purchase of escrow securities, such as U. S.
Treasury Securities — State and Local Government series ( SLGS). If SLGS are not available due to debt ceiling issues, the seroices of a bidding agent may be necessary.
20. Assist in coortlinating the closing of the debt issue to the extent not coordinated by bond counsel or underwriter, such as the transfer of funds from the underwriter or purchaser.
21. Other municipal advisory services that may be necessary or appropriate to effectuate the contemplatetl transaction, including responding to routine post- closing inquiries or requests by the City.
2054 University venue, Suite 300 I Berkeley,(: A 94704 iblain 510- 839- 8200 590t West Cenmry Boulecazd, Suite 750 ( I,os Angeles, CA 90045 Main 310- 34R- 2901 A I.imiYed I.eabiliry Company
DocuSign Envelope ID: 696D3737- CC5B- 4752- 933B- 4A0898A1D603 Municipal Advisory Agreement
Exhibit B
Fee Schedule
For services rendered in connection with Exhibit A of this document, KNN will be compensated based upon the following schedule:
Please note that all fees below are contingent upon the successful pricing and closing of the transaction See Exhibit C for certain disclosures regarding potenfial conflicts of interest associated with contingent fees):
1. If the Mossdale CFD/ AD Refinancing is sold via a tlirect purchase/ private placement, then KNN' s transaction fee will be$ 61, 500.
2, If the Mossdale CFD/AD Refinancing is sold via a public offering (competitive or negotiated) withouf a credit rating or bond insurance, then KNN' s transaction fee will be$ 76, 500.
3. If the Mossdale CFD/ AD Refinancing is sold via a public offering ( competitive or negotiated) with a credit rating and/ or bond insurance, then KNN' s transaction fee will be$ 86, 500.
Expenses: The compensation figures above are inclusive of KNN out-of-pocket expenses for any overnight delivery, copying, conference calls and market data charge. The following expenses, as applicable, will be paid by the City: the expense of printing antl distributing the official statement, any travel expenses of City officials, bond and disclosure counsel fees and expenses, fees of the reassessment engineer, assessmenUtax administrator and special tax consultant, if any, rating agency fees, trustee or paying agent fees, any insurance fees, verification/ bidding agent fees, any cost of obtaining statistical data for the official statement or lender RFP, costs required to be paid by the City pursuant to an accepted lender proposal and any other costs of issuance.
2054 Unicersity Avenue, Suite 300 I Berkeley, C 94704 Iofain 510- 839- 8200 5901 West Century Boulecard, Suite 750 I
l.os:\ ngeles, CA 90045 btain 310- 348- 2) Ol
A l.imited Liabilih Cumpanv
DocuSign Envelope ID: o9BD3737-CC56-4752- 9336-4A089EA1D603 Municipal Advisory Agreement
Exhibit C
Disclosures Pursuant to MSRB Rules G-42 and G- 10
Pursuant to Municipal Securities Rulemaking Board (" MSRB") Rule G- 42, on Duties on Non- Solicitor Municipal Advisors, Municipal Advisors are required to make certain written disclosures to clients which include, amongst other things, Conflicts of Interest antl any Legal or Disciplinary Events of KNN Public Finance, LLC(" KNN Public Finance") and its associated persons.
Conflicts of Interest
Other Municipal Advisor Relationships. KNN serves a wide variety of other clients that may from time to time have interests that could have a direct or intlirect impact on the interests of another KNN client. For example, KNN serves as municipal advisor to other municipal advisory clients such as San Joaquin County and, in such cases, owes a regulatory duty to such other clients just as it will to your entity, if hired. These other clients may, from time to time and depending on the specific circumstances, have competing interests. In acting in the interests of its various clients, KNN could potentially face a conflict of interest arising from these competing client interests. KNN fulfills its regulatory duty and mitigates such conflicts through dealing honestly and with the utmost good faith with its clients.
Compensation. KNN Public Finance represents that in connection with the issuance of municipal securities, KNN Public Finance may receive compensation from an Issuer or Obligated Person for services rendered, which compensation is contingent upon the successful closing of a transaction and/ or is basetl on the size of a transaction. Consistent with the requirements of MSRB Rule G- 42, KNN Public Finance hereby discloses that such contingent and/ or transactional compensation may present a potential conflict of interest regarding KNN Public Finance' s ability to provide unbiased advice to enter into such transaction.
This conflict of interest will not impair KNN Public Finance' s ability to render unbiased antl competent advice or to fulfill its fiduciary duty to the Issuer.
If KNN Public Finance becomes aware of any additional potential or actual conflict of interest after this disclosure, KNN Public Finance will disclose the detailetl information in writing to the Issuer in a timely manner.
Legal or Disciplinary Events
KNN Public Finance, LLC, has never been subject to any legal, disciplinary or regulatory actions nor was it ever subject to any legal, disciplinary or regulatory actions previously, when it was a division of Zions First National Bank or Zions Public Finance, Inc,
A regulatory action disclosure has been made on Form MA- I for one of KNN' s municipal advisory personnel relating to a 1998 U. S. Securities and Exchange Commission (" SEC") order that was filed while the municipal advisor was employed with a prior firm, ( not KNN Public Finance). The details of which are available in Item 9; C( 1), C( 2), C( 4), C( 5) and the corresponding regulatory action DRP section on Form MA antl Item 6C; ( 1), ( 2), ( 4), ( 5) and the corresponding regulatory action DRP section on Form MA- I.
Issuers may electronically access KNN Public Finance' s most recent Form MA and each most recent Form MA- I filed with the Commission at the following website:
www. sec. qovledqarfsearchedqar/ companysearch html.
2054 Uni- ersity Acenue, Suite 300 I Berkeley, CA 94704 I fain 510- 839- 8200 5901 West Century Boulecazd, Suite 7 0
I Los Angeles, CA 9004 bfain 310-348-2901
4 I..imited Liability Cotnpany
DocuSign Envelope ID: 69BD3737-CC5B-4752- 933B-4A0898AiD803 Municipal Advisory Agreement
The SEC permits certain items of information required on Form MA and Form MA-I to be provided by reference to such required information already filed on a regulatory system ( e. g., FINRA CRD). The above
noted regulatory action has been referenced on both Form MA and MA-I due to the information already filed on FINRA' s CRD system and is publicly accessible through BrokerCheck at http:// brakercheck. finra. orq. For purposes of accessing such BrokerCheck information, the Municipal Advisor' s CRD number is 4457537.
There has been no change to any legal or disciplinary event that has been disclosed on KNN Public Finance's original SEC registration Form MA filetl on February 8, 2016 or Form MA-I' s filed on January 22, 2016.
Additional Disclosures - MSRB Rule G- 10
Pursuant to Municipal Securities Rulemaking Board Rule G- 10, on Investor and Municipal Advisory Client Education and Protection, Municipal Advisors are required to provide certain written information to their municipal entity and obligated person clients which inciude the following:
a) KNN Public Finance, LLC is currently registered as a Municipal Advisor with the U. S.
Securities and Exchange Commission and the Municipal Securities Rulemaking Board. b) Within the Municipal Securities Rulemaking Board (" MSRB") website at www.msrb. org, the City of Lathrop may obtain the Municipal Advisory client brochure that is posted on the MSRB website. The brochure tlescribes the protections that may be provided by the MSRB Rules along with how to file a complaint with financial regulatory authorities. 2054 Univecsit} Aaenue, Suite 300 I Berkeley, CA 94704 ( Main 510- 839- 8200 5901 West Cenmry Boulecazd, Suite 750 Los Angeles, CA 90045 I NSain 310- 348- 2901 A J.. imited I:ialiilih C impxn,y