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Contract 2021-010ADocuSign Envelope ID: 65506928-9831-41DA-82BE-OF599BOA6EEC #2021-010—A CONTRACT APPROVAL FORM TO: SUSAN DAUDERIS, INTERIM CITY MANAGER THRU: FREDDY SUAREZ, PROCUREMENT SERVICES DIRECTOR fS FROM: JINELLE LUGO, PROCUREMENT COORDINATOR C SUBJECT: FINANCIAL ADVISORY SERVICES DATE: MARCH 26, 2021 THE PROCUREMENT SERVICES DIRECTOR RECOMMENDS THE FOLLOWING: 1. APPROVE: Agreement between the City of Clermont and PFM Financial Advisors LLC to provide financial advisory services. The agreement shall take effect on the date of execution by both parties and shall remain in effect for three (3) years, unless renewed or terminated as provided by the City of Satellite Beach contractual agreement. 2. Why is this action necessary: In accordance with the City of Clermont Purchasing Policy, the City Manager is authorized to approve contracts under $50,000 that do not require a budget amendment. 3. ADDITIONAL INFORMATION: At the request of the Finance Department, the Procurement Services Department sought a contract with the City of Satellite Beach for Financial Advisory Services. The estimated annual expenditures is less than $50,000 and it is included in the Finance Department budget. The Procurement Services Department issued RFI 2102-009 to notify local vendors of the City's intent to utilize other governmental entities' contract. At the completion of the RFI the Procurement Services Department received no interest. 4. FISCAL IMPACT: The fiscal impact of $40,000 is included in the current year approved budget. 5. EXHIBITS: Financial Advisory Services Agreement DCOU51911ed by: �IASGUn, �A.U.�.c,vYs signature APPROVAL AUTHORITY Approved ® Disapproved ❑ Reason/Suggestion (If disapproved) interim City Manager Title 3/29/2021 Date DocuSign Envelope ID: 65506928-9831-41DA-826E-OF599BOA6EEC AGREEMENT NO.2021-010 FOR FINANCIAL ADVISORY SERVICES THIS AGREEMENT, is made and entered into this 29 day of March 2021, by and between the CITY OF CLERMONT, FLORIDA, a municipal corporation under the laws of the State of Florida whose address is: 685 W. Montrose Street, Clermont, Florida, (hereinafter referred to as "CITY"), and PFM Financial Advisors LLC, whose address is: 300 South Orange Ave, Suite 1170, Orlando, FL 32801, (hereinafter referred to as "CONTRACTOR"). WHEREAS, the City of Satellite Beach through the public procurement process awarded an Agreement for Financial Advisory Services to CONTRACTOR ("Satellite Beach Contract"); WHEREAS, CITY has reviewed the above -referenced awarded bid, CONTRACTOR's response thereto and the Satellite Beach Contract in accordance with CITY's procurement policy; and WHEREAS, CITY desires to enter into a contract with CONTRACTOR based on the terms and conditions of the Satellite Beach Contract; WITNESSETH: That the parties hereto, for the consideration hereinafter set forth, mutually agree as follows: Incorporation of the Satellite Beach Contract CONTRACTOR agrees to provide, and CITY agrees to purchase, financial advisory services in accordance with the prices, terms and conditions of the Satellite Beach Contract, attached hereto as Exhibit A and incorporated herein by reference, as modified in this Agreement. Nothing herein shall be read as a transfer, assignment or delegation of the Satellite Beach Contract to CITY. All references in the Satellite Beach Contract to "Client" and "PFM" shall be replaced with and refer to "CITY" and "CONTRACTOR", respectively. ARTICLE 1— SCOPE OF WORK The CONTRACTOR shall furnish financial advisory services as described in the Satellite Beach Contract, which is attached hereto and incorporated herein as Exhibit "A" and shall perform everything required by this Agreement and the other exhibits attached hereto. Provided, however, that nothing herein shall require CITY to purchase or acquire any items or services from CONTRACTOR that is not specified in the CITY's purchase order. To the extent of a conflict between this Agreement and Exhibit "A", the terms and conditions of this Agreement shall prevail and govern. In all instances the CITY purchasing policy, resolutions and ordinances shall apply. DocuSign Envelope ID: 65506928-9831-41DA-82BE-OF599BOA6EEC ARTICLE 2 — THE CONTRACT SUM CITY shall pay CONTRACTOR, for the faithful performance of the Agreement as set forth in the Agreement documents and the Unit Price Schedule as set forth in Exhibit "B", attached hereto and incorporated herein. ARTICLE 3 — TERM AND TERMINATION 3.1. This Agreement is to become effective upon the later date of execution by the parties, and shall remain in effect until April 8, 2024 unless terminated or renewed, subject to the terms of the Satellite Beach Contract. 3.2. Notwithstanding any other provision of this Agreement, CITY may, upon written notice to CONTRACTOR, terminate this Agreement: a) without cause and for CITY's convenience upon thirty (30) days written notice to CONTRACTOR b) if CONTRACTOR is adjudged to be bankrupt; c) if CONTRACTOR makes a general assignment for the benefit of its creditors; d) CONTRACTOR fails to comply with any of the conditions of provisions of this Agreement; or e) CONTRACTOR is experiencing a labor dispute, which threatens to have a substantial, adverse impact upon the performance of this Agreement, without prejudice to any other right or remedy CITY may have under this Agreement. In the event of such termination, CITY shall be liable only for the payment of all unpaid charges, determined in accordance with the provisions of this Agreement, for work, properly performed and accepted prior to the effective date of termination. 3.3. Upon mutual Agreement of the parties, this Agreement shall automatically renew unless terminated in writing by either party upon thirty (30) days written notice to the other party. ARTICLE 4 — PROVISION OF SERVICES AND COMPLETION OF WORK 4.1. The CONTRACTOR shall only provide to CITY financial advisory services upon receipt of an authorized order from CITY and shall provide the requested items in the timeframe and as set forth in City of Satellite Beach Contract or in the specific purchase order or authorized order submitted by CITY. Nothing herein shall obligate CITY to purchase any specific amount of product from CONTRACTOR or create an exclusive purchase agreement between CITY and CONTRACTOR. CITY shall not be obligated or required to pay for any items received until such time as CITY has accepted the items in accordance with the order provided to CONTRACTOR. 4.2. CONTRACTOR, upon receipt of an order hereunder, shall immediately notify CITY if it has an issue or question related to the fulfillment of the order or whether there will be any delay in providing the items requested. Failure of CONTRACTOR to so notify CITY will preclude CONTRACTOR from seeking 2 DocuSign Envelope ID: 65506928-9831-41DA-826E-OF599BOA6EEC payment of any kind for any items that were delayed in delivery. Upon receipt of notification of the delay, CITY may at its sole option cancel the order and seek the items from any available source. 4.3. COMPANY specifically acknowledges that this Contract does not bind or obligate CITY to purchase any minimum quantity of product during the term hereof. ARTICLE 5 — PAYMENTS In accordance with the provisions fully set forth in the Contract Documents, CONTRACTOR shall submit an invoice to CITY upon completion of the services and delivery of products to CITY as set forth in the applicable purchase order. CITY shall make payment to the CONTRACTOR for all accepted deliveries and undisputed product delivered and services provided, within thirty (30) calendar days of receipt of the invoice. ARTICLE 6 — INSURANCE AND INDEMNIFICATION RIDER 6.1. Worker's Compensation Insurance — The CONTRACTOR shall take out and maintain during the life of this Agreement, Worker's Compensation Insurance for all its employees connected with the work of this Project and, in case any work is sublet, the CONTRACTOR shall require the subCONTRACTOR similarly to provide Worker's Compensation Insurance for all of the subCONTRACTOR employees unless such employees are covered by the protection afforded by the CONTRACTOR. Such insurance shall comply with the Florida Worker's Compensation Law. In case any class of employees engaged in hazardous work under this Agreement at the site of the Project is not protected under the Worker's Compensation statute, the CONTRACTOR shall provide adequate insurance, satisfactory to the CITY, for the protection of employees not otherwise protected. 6.2. CONTRACTOR's Commercial General Liability Insurance — The CONTRACTOR shall take out and maintain during the life of this Agreement, Commercial General Liability and Business Automobile Liability Insurance as shall protect it from claims for damage for personal injury, including accidental death, as well as claims for property damages which may arise from operating under this Agreement whether such operations are by itself or by anyone directly or indirectly employed by it, and the amount of such insurance shall be as follows: (a) CONTRACTOR's Commercial General Liability, $1,000,000 Each, ($2,000,000 aggregate). Liability Coverages, Bodily Injury Occurrence, & Property Damage Combined Single Limit (b) Automobile Liability Coverages, $1,000,000 Each, Bodily Injury & Property Damage Occurrence, Combined Single Limit 3 DocuSign Envelope ID: 65506928-9831-41DA-82BE-OF599BOA6EEC (c) Excess Liability, Umbrella Form $2,000,000 Each Occurrence, Combined Single Limit Insurance clause for both BODILY INJURY AND PROPERTY DAMAGE shall be amended to provide coverage on an occurrence basis. 6.3. Indemnification Rider (a) To the fullest extent permitted by law, the CONTRACTOR shall indemnify and hold harmless the CITY and its employees from and against all claims, damages, losses and expenses, including but not limited to reasonable attorney's fees, arising out of or resulting from its performance of the Work, provided that any such claim, damage, loss or expense (1) is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property (other than the Work itself) , and (2) is caused in whole or in part by any negligent act or omission of the CONTRACTOR, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, regardless of whether or not such acts are caused in part by a party indemnified hereunder, and provided that CONTRACTOR liability shall only be to the extent of claims and liabilities arising from its negligence. Such obligation shall not be construed to negate, abridge, or otherwise reduce any other right to obligation of indemnity which would otherwise exist as to any party or person described in this Article; however, this indemnification does not include the sole acts of negligence, damage or losses caused by the CITY and its other contractors. (b) In any and all claims against the CITY or any of its agents or employees by any employee of the CONTRACTOR, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, the indemnification obligations under this Paragraph shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable by or for the CONTRACTOR or any subcontractor under workers' or workmen's compensation acts, disability benefit acts or other employee benefit acts. (c) The CONTRACTOR hereby acknowledges receipt of ten dollars and other good and valuable consideration from the CITY for the indemnification provided herein. ARTICLE 7 — NOTICES All notices shall be in writing and sent by United States mail, certified or registered, with return receipt requested and postage prepaid, or by nationally recognized overnight courier service to the address of the party set forth below. Any such notice shall be deemed given when received by the party to whom it is intended. 4 DocuSlgn Envelope ID: 65506928-9831-41DA-82BE-OF599BOA6EEC CONTRACTOR: PFM Financial Advisors, LLC 300 S. Orange Ave, Suite 1170 Orlando, FL 32801 Attn: Managing Director With a copy to: Nicklas Rocca, Senior Managing Consultant PFM Financial Advisors LLC 300 S. Orange Ave, Suite 1170 Orlando, FL 32801 OWNER: City of Clermont Attn: Susan C. Dauderis, Interim City Manager 685 W. Montrose Street Clermont, FL 34711 ARTICLE 8 — MISCELLANEOUS 8.1. Attorneys' Fees — In the event a suit or action is instituted to enforce or interpret any provision of this Agreement, the prevailing party shall be entitled to recover such sum as the Court may adjudge reasonable as attorneys' fees at trial or on any appeal, in addition to all other sums provided by law. 8.2. Waiver — The waiver by city of breach of any provision of this Agreement shall not be construed or operate as a waiver of any subsequent breach of such provision or of such provision itself and shall in no way affect the enforcement of any other provisions of this Agreement. 8.3. Severability — If any provision of this Agreement or the application thereof to any person or circumstance is to any extent invalid or unenforceable, such provision, or part thereof, shall be deleted or modified in such a manner as to make the Agreement valid and enforceable under applicable law, the remainder of this Agreement and the application of such a provision to other persons or circumstances shall be unaffected, and this Agreement shall be valid and enforceable to the fullest extent permitted by applicable law. 8.4. Amendment — Except for as otherwise provided herein, this Agreement may not be modified or amended except by an Agreement in writing signed by both parties. 8.5. Entire A,-, eement — This Agreement including the documents incorporated by reference contains the entire understanding of the parties hereto and supersedes all DocuSign Envelope ID: 65506928-9831-41DA-82BE-OF599BOA6EEC prior and contemporaneous Agreements between the parties with respect to the performance of services by CONTRACTOR. 8.6. Assignment — Except in the event of merger, consolidation, or other change of control pursuant to the sale of all or substantially all of either party's assets, this Agreement is personal to the parties hereto and may not be assigned by CONTRACTOR, in whole or in part, without the prior written consent of CITY. 8.7. Venue — The parties agree that the sole and exclusive venue for any cause of action arising out of this Agreement shall be Clermont, Florida. 8.8. Applicable Law — This Agreement and any amendments hereto are executed and delivered in the State of Florida and shall be governed, interpreted, construed and enforced in accordance with the laws of the State of Florida. 8.9. Public Records — Contractor expressly understands records associated with this project are public records and agrees to comply with Florida's Public Records law, to include, to: (a) Keep and maintain public records that ordinarily and necessarily would be required by the CITY in order to perform the services contemplated herein. (b) Provide the public with access to public records on the same terms and conditions that the CITY would provide the records and at a cost that does not exceed the cost provided in this Florida's Public Records law or as otherwise provided by law. (c) Ensure that public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed except as authorized by law. (d) Meet all requirements for retaining public records and transfer, at no cost, to the CITY all public records in possession of CONTRACTOR upon termination of the contract and destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. CONTRACTOR shall use reasonable efforts to provide all records stored electronically to the CITY in a format that is compatible with the information technology systems of the CITY. (e) IF CONTRACTOR HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO THE CONTRACTOR'S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS CONTRACT, CONTRACTOR SHALL CONTACT THE CITY'S CUSTODIAN OF PUBLIC RECORDS AT CITY CLERK'S OFFICE, (352) 241-7331. R DocuSign Envelope ID: 65506928-9831-41DA-82BE-OF599BOA6EEC ARTICLE 9 — AGREEMENT DOCUMENTS The Agreement Documents, as listed below are herein made fully a part of this Agreement as if herein repeated. Document Precedence: 9.1. This Agreement 9.2. Purchase Order / Notice To Proceed 9.3. An applicable Contractor Quote or Statement of Work 9.4. All documents contained in the Satellite Beach Contract. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on this 29 day of March , 2021. CITY OF CLERMONT DocuSigned by: �U.Saun, VA -I - "is Susan au eris, Interim City Manager ATTEST: DocuSigned by: T Aak�o.� Howc Tracy Ackroyd Howe, City Clerk 7 DocuSign Envelope ID: 65506928-9831-41DA-82BE-OF599BOA6EEC PFM FINANCIAL ADVISORS, LLC Docuftned by: By: (Signature) Print Name: ]ames W. Glover Title: Managing Director Date: 3/18/2021 DocuSign Envelope ID: 65506928-9831-41 DA-82BE-OF599BOA6EEC exhibit A PFM FINANCIAL ADVISORS LLC AGREEMENT FOR FINANCIAL ADVISORY SERVICES This agreement ("Agreement"), made and entered into this 9ch day of April, 2021, by and between the City of Satellite Beach, Florida ("Client") and PFM Financial Advisors LLC (hereinafter called "PFM"), sets forth the terms and conditions under which PFM shall provide WHEREAS, Client desires to obtain the services of a financial advisor to develop and assist in implementing Client's strategies to meet its current and long-term operations, financial obligations, capital financing needs and render assistance in respect to debt transactions; and WHEREAS, PFM is capable of providing the necessary financial advisory services. NOW, THEREFORE, in consideration of the above mentioned premises and intending to be legally bound hereby, Client and PFM agree as follows: I. SCOPE OF SERVICES PFM shall provide, upon request of the Client, services related to financial planning, budget and strategic advice and planning, policy development and services related to debt issuance, as applicable and set forth in Exhibit A to this Agreement. Client acknowledges and agrees that most tasks requested by Client will not require all services provided for in Exhibit A and as such the specific scope of services for such task shall be limited to just those services required to complete the task. Any material changes in or additions to the scope of services described in Exhibit A shall be promptly reflected in a written supplement or amendment to this Agreement. Services provided by PFM which are not specifically referenced in the scope of services set forth in Exhibit A of this Agreement shall be completed as agreed in writing in advance between the Client and PFM. Upon request of Client, PFM or an affiliate of PFM may agree to additional services to be provided by PFM or an affiliate of PFM, by a separate agreement between the Client and PFM or its respective affiliate. II. WORK SCHEDULE The services of PFM are to commence as soon as practicable after the execution of this Agreement and a request by the Client for such service. III. REGISTERED MUNICIPAL ADVISOR; REQUIRED DISCLOSURES 1. PFM is a registered municipal advisor with the Securities and Exchange Commission (the "SEC") and the Municipal Securities Rulemaking Board (the "MSRB"), pursuant to the Securities Exchange Act of 1934 Rule 1513al-2. If Client has designated PFM as its independent registered municipal advisor ("IRMA") for purposes of SEC Rule 15Bal- I (d)(3)(vi) (the "IRMA exemption"), then services provided pursuant to such designation shall be the services described in Exhibit A hereto, subject to any agreed upon limitations. - 1 - DocuSign Envelope ID: 65506928-9831-41DA-82BE-OF599BOA6EEC Verification of independence (as is required under the IRMA exemption) shall be the responsibility of such third party seeking to rely on such IRMA exemption. PFM shall have the right to review and approve in advance any representation of PFM's role as IRMA to Client. 2. MSRB Rules require that municipal advisors make written disclosures to their clients of all material conflicts of interest, certain legal or disciplinary events and certain regulatory requirements. Such disclosures are provided in PFM's Disclosure Statement delivered to Client prior to or together with this Agreement. IV. FINANCIAL ADVISORY COMPENSATION For the services provided under this Agreement, PFM's professional fees shall be paid as provided in Exhibit B to this Agreement and Client shall pay expenses and fees for other services not set forth in Exhibit A as provided below. All fees shall be due to PFM within thirty (30) days of the date of invoice. 1. Reimbursable Expenses In addition to fees for services, PFM will be reimbursed for necessary, reasonable, and documented out-of-pocket expenses incurred, including travel, meals, lodging, telephone, mail, and other ordinary cost and any actual extraordinary cost for graphics, printing, data processing and computer time which are incurred by PFM. Upon request of Client, documentation of such expenses will be provided. 2. Other Services Any services which are not included in the scope of services set forth in Exhibit A of this Agreement will be subject to separate, mutually acceptable fee structures. V. TERMS AND TERMINATION This Agreement shall be effective from April 9, 2021 until April 8, 2024 (the "Initial Term") and shall automatically renew unless terminated in writing by either party upon thirty (30) days written notice to the other party. Upon any such termination, PFM will be paid for all services performed and costs and expenses incurred up to the termination date. VI. ASSIGNMENT PFM shall not assign or transfer any interest in this Agreement or subcontract any of the work performed under the Agreement without the prior written consent of the Client; provided that PFM retains the right to enter into a sale, merger, acquisition, internal reorganization, or similar transaction involving PFM's business without any such consent. -2- DocuSign Envelope ID: 65506928-9831-41DA-82BE-OF599BOA6EEC VII. INFORMATION TO BE FURNISHED TO PFM All information, data, reports, and records in the possession of the Client or any third party necessary for carrying out any services to be performed under this Agreement ("Data") shall be furnished to PFM. PFM may rely on the Data in connection with its provision of the services under this Agreement and the provider thereof shall remain solely responsible for the adequacy, accuracy and completeness of such Data. VIII. NOTICES All notices and other communication required under this Agreement shall be in writing and shall be sent by certified mail, return receipt requested, or by nationally recognized courier, with written verification of receipt. Notices shall be sent to the parties at the following addresses, or to such other address as a party may furnish to the other party: CITY OF SATELLITE BEACH, FLORIDA Courtney H. Barker City Manager Support Services Department 565 Cassia Blvd Satellite Beach, FL 32937 PFM FINANCIAL ADVISORS LLC 300 South Orange Avenue Suite 1170 Orlando, FL 32801 Attention: Managing Director Copy To: PFM FINANCIAL ADVISORS LLC 1735 Market Street 43rd Floor Philadelphia, PA 19103 Attention: Chief Executive Officer IX. TITLE TRANSFER All materials, except functioning or dynamic financial models, prepared by PFM pursuant exclusively to this Agreement shall be the property of the Client. Subject to the exception described above, upon termination of this Agreement, at Client's reasonable request no later than three (3) years after the termination of this Agreement PFM shall deliver to the Client copies of any deliverables pertaining to this Agreement. -3- DocuSign Envelope ID: 65506928-9831-41DA-82BE-OF599BOA6EEC X. PFM'S REPRESENTATIVES Assignment of Named Individuals The professional employees of PFM set forth below will provide the services set forth in this Agreement; provided that PFM may, from time to time, supplement or otherwise amend the advisory team members set forth below. ♦ James Glover, Managing Director • Nicklas Rocca, Senior Managing Consultant • Michael Dennis, Senior Analyst • Aurora Pavlish-Carpenter, Analyst 2. Changes in Advisory Team Requested by the Client The Client has the right to request, for any reason, that PFM replace any member of the advisory team. Should the Client make such a request, PFM shall promptly suggest a substitute for approval by the Client. XI. INSURANCE PFM shall maintain insurance coverage with policy limits not Iess than as stated in Exhibit C. XII. LIMITATION OF LIABILITY Except to the extent caused by its willful misconduct, bad faith, gross negligence or reckless disregard of its obligations or duties, PFM shall have no liability to any party under this Agreement. XIII. INDEPENDENT CONTRACTOR; NO THIRD -PARTY BENEFICIARY PFM, its employees, officers and representatives at all times shall be independent contractors and shall not be deemed to be employees, agents, partners, servants and/or joint venturers of Client by virtue of this Agreement or any actions or services rendered under this Agreement. Nothing in this Agreement is intended or shall be construed to give any person, other than the parties hereto, their successors and permitted assigns, any legal or equitable rights, remedy or claim under or in respect of this Agreement or any provisions contained herein. In no event will PFM be liable for any act or omission of any third party or for any circumstances beyond PFM's reasonable control including, but not limited to, fire, flood, or other natural disaster, war, riot, strike, act of terrorism, act of civil or military authority, software and/or equipment failure, computer virus, or failure or interruption of electrical, telecommunications or other utility services. -4- DocuSign Envelope ID: 65506928-9831-41DA-82BE-OF599BOA6EEC XIV. APPLICABLE LAW This Agreement shall be construed, enforced, and administered according to the laws of the State of Florida. PFM and the Client agree that, should a disagreement arise as to the terms or enforcement of any provision of this Agreement, each party will in good faith attempt to resolve said disagreement prior to pursuing other action. XV. ENTIRE AGREEMENT; SEVERABILITY This Agreement represents the entire agreement between Client and PFM and may not be amended or modified except in writing signed by both parties. For the sake of clarity, any separate agreement between Client and an affiliate of PFM shall not in any way be deemed an amendment or modification of this Agreement. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision. XVI. EXECUTION; COUNTERPARTS Each party to this Agreement represents and warrants that the person or persons signing this Agreement on behalf of such party is authorized and empowered to sign and deliver this Agreement for such party. This Agreement may be signed in any number of counterparts, each of which shall be an original and all of which when taken together shall constitute one and the same document. -5- DocuSign Envelope ID: 65506928-9831-41DA-82BE-OF599BOA6EEC IN WITNESS WHEREOF, Client and PFM have executed this Agreement as of the day and year herein above written. CITY OF SAT[:LLITE BEACH, FLORIDA By: . (V�qz� Name: Courtney H. Barker Title: City Manager PFM FINANCIAL ADVISORS LLC By: _ Name: James W. Glover Title: Managing Director DocuSign Envelope ID: 65506928-9831-41DA-82BE-OF599BOA6EEC EXHIBIT A SCOPE OF SERVICES 1. Services related to the Financial Planning and Policy Development upon request of the Client: Assist the Client in the formulation of Financial and Debt Policies. Review current debt structure, identifying strengths and weaknesses of structure so that future debt issues can be designed to maximize ability to finance future capital needs. This will include, but not be limited to, reviewing existing debt for the possibility of refunding that debt to provide the Client with savings. Analyze future debt capacity to determine the Client's ability to raise future debt capital. Assist the Client in the development of the Client's Capital Improvement program by identifying sources of capital funding for infrastructure needs. Assist the Client with the development of the Client's financial planning efforts and process by assessing capital needs, identifying potential revenue sources, analyze financing alternatives such as pay-as-you-go, lease/purchasing, short-term vs. long- term financings, assessments, user fees, impact fees, developer contributions, public/private projects, and grants and provide analysis of each alternative as required as to the budgetary and financial impact. Review the reports of accountants, independent engineers and other project feasibility consultants to ensure that such studies adequately address technical, economic, and financial risk factors affecting the marketability of any proposed revenue debt issues; provide bond market assumptions necessary for financial projections included in these studies; attend all relevant working sessions regarding the preparations, review and completion of such independent studies; and provide written comments and recommendations regarding assumptions, analytic methods, and conclusions contained therein. Attend meetings with Client's staff, consultants and other professionals and the Client. Review underwriter's proposals and submit a written analysis of same to the Client. Assist the Client in preparing financial presentations for public hearings and/ or referendums. Provide special financial services as requested by the Client. -7- DocuSign Envelope ID: 65506928-9831-41DA-82BE-OF599BOA6EEC 2. Services Related to Debt Transactions (Includes short term financings, notes, loans, letters of credit, line of credit and bonds). Upon the request of the Client: Analyze financial and economic factors to determine if the issuance of bonds is appropriate. Develop a financing plan in concert with Client's staff which would include recommendations as to the timing and number of series of bonds to be issued. Assist the Client by recommending the best method of sale, either as a negotiated sale, private placement or a public sale. In a public sale, make recommendation as to the determination of the best bid. In the event of a negotiated sale, assist in the solicitation, review and evaluation of any investment banking proposals, and provide advice and information necessary to aid in such selection. Advise as to the various financing alternatives available to the Client. Develop alternatives related to debt transaction including evaluation of revenues available, maturity schedule, cash flow requirements and all tax implications and requirements. Evaluate benefits of bond insurance and/or security insurance for debt reserve fund. If appropriate, develop credit rating presentation and coordinate with the Client the overall presentation to rating agencies. Assist the Client in the procurement of other services relating to debt issuance such as printing, paying agent, registrar, etc. Identify key bond covenant features and advise as to the financial consequences of provisions to be included in bond resolutions regarding security, creation of reserve funds, flow of funds, redemption provisions, additional parity debt tests, etc.; review and comment on successive drafts of bond resolutions. Review the requirements and submit analysis to bond insurers, rating agencies and other professionals as they pertain to the Client's obligation. Review the terms, conditions and structure of any proposed debt offering undertaken by the Client and provide suggestions, modifications and enhancements where appropriate and necessary to reflect the constraints or current financial policy and fiscal capability. -8- DocuSign Envelope ID: 65506928-9831-41DA-82BE-OF599BOA6EEC Coordinate with Client's staff and other advisors as respects the furnishing of data for offering documents, it being specifically understood that Financial Advisor is not responsible for the inclusion or omission of any material in published offering documents. Provide regular updates of tax-exempt bond market conditions and advise the Client as to the most advantageous timing for issuing its debt. Advise the Client on the condition of the bond market at the time of sale, including volume, timing considerations, competing offerings, and general economic considerations. Assist and advise the Client in negotiations with investment banking groups regarding fees, pricing of the bonds and final terms of any security offering, and make in writing definitive recommendations regarding a proposed offering to obtain the most favorable financial terms based on existing market conditions. Arrange for the closing of the transaction including, but not limited, to bond printing, signing and final delivery of the bonds. 3. Special Services. Upon request of the Client and subject to separate, mutually acceptable fee structures: PFM or its affiliates may provide other services which shall include, but not be limited to, the following: a. Investment of bond proceeds, including escrow structuring and procurement b. Arbitrage rebate and post -issuance compliance C. Interest rate swap advisory services d. Management and Budget Consulting services DocuSign Envelope ID: 65506928-9831-41 DA-82BE-OF599BOA6EEC EXHIBIT B COMPENSATION FOR SERVICES 1. Fixed Rate Transaction Fees (Competitive and Negotiated) For services related to the issuance of General Obligation Bonds, Revenue Bonds and Taxable Bonds, PFM will be paid a per bond fee as follows: Par Amounts: $0 to $20,000,000: $0.90 per $1,000 bond, plus From $20,000,001 to $35,000,000 $0.70 per $1,000 bond, plus Over $35,000,001 $0.55 per $1,000 bond A minimum fee of $17,500 for general obligation bonds, revenue bonds and taxable bonds will apply. A maximum fee of $36,750 for general obligation bonds, revenue bonds and taxable bonds will apply. For services related to bank loans, lines of credit, private loans and similar debt instruments, PFM will be paid a fee as follows: Par Amounts: $0 to $20,000,000: $0.90 per $1,000 of debt, plus From $20,000,001 to $35,000,000 $0.70 per $1,000 of debt, plus Over $35,000,001 $0.55 per $1,000 A minimum fee of $15,000 will apply to these transactions, with a maximum fee not to exceed $20,000.00. 2. Hourly Project Fees (Non -Transaction Related) PFM will not charge for general advice between financings. In the event the Client requests that PFM perform significant special projects (capital planning, creation of new financing programs like the installment sale concept, etc.), fees will be negotiated in advance of the project generally based upon the following hourly rates for the indicated levels of experience or their equivalents will apply. Additionally, in the event a financing is started, but cancelled at the Client's request, accrued time will be billed as follows: Experience Level Hourly Rate Managing Director/Director $185 Senior Managing Consultant $185 Senior Analyst/Analyst $175 In lieu of hourly rates, the City can also elect a $6,000 annual Retainer, payable in quarterly installments for non -transactional work. The Retainer shall be reviewed and revised upon mutual agreement. -10- DocuSign Envelope ID: 65506928-9831-41DA-82BE-OF599BOA6EEC EXHIBIT C INSURANCE PFM Financial Advisors LLC ("PFM") has a complete insurance program, including property, casualty, general liability, automobile liability and workers compensation. PFM maintains professional liability and fidelity bond coverages which total $40 million and $25 million single loss/ $50 million aggregate, respectively. PFM also carries a $10 million cyber liability policy. Our Professional Liability policy is a "claims made" policy and our General Liability policy claims would be made by occurrence. Deductibles/SIR: Automobile $250 comprehensive & $250 collision Cyber Liability $25,000 General Liability $0 Professional Liability (E&O) $1,000,000 Financial Institution Bond $75,000 Insurance Company & AM Best Rating Professional Liability (E&O)................Endurance American Insurance Company; (A+; XV) .........................................................Argonaut Insurance Company; (A+: XIV) ............................................................Everest National Insurance Company; (A+; XV) ............................................................XL Specialty Insurance Company; (A+; XV) ............................................................Continental Casualty Company; (A; XV) ............................................................Starr Indemnity & Liability Company; (A; XV) ............................................................Federal Insurance Company; (A++; XV) Financial Institution Bond....................Federal Insurance Company; (A++; XV) ............................................................Great American Insurance Company; (A+; XV) ............................................................U.S. Fire Insurance Company; (A; XV) Cyber Liability .....................................Greenwich Insurance Company (A+; XV) ............................................................Arch Insurance Company; (A+; XV) General Liability..................................Great Northern Insurance Company; (A++; XV) Automobile Liability.............................Great Northern Insurance Company; (A++; XV) Excess [Umbrella Liability ...................Federal Insurance Company; (A++; XV) Workers Compensation ......................Vigilant Insurance Company; (A++; XV) & Employers Liability -11-