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HomeMy WebLinkAbout25J - AGMT - BOND COMPLIANCE SRVSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 16, 2014 TITLE: AGREEMENT WITH URBAN FUTURES INC. FOR BOND COMPLIANCE CONTINUING DISCLOSURE SERVICES l CITY MANAGE RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1 "Reading ❑ Ordinance on 2n °Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute an agreement with Urban Futures, Inc., for bond continuing disclosure services for a three -year period in an annual amount of $5,500, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION The City of Santa Ana as part of its financial strategy for critical infrastructure and project needs, engages financing bond issuances through the municipal bond and private placement markets. Currently, the City has approximately $160 million in City related debt and $100 million in Successor Agency debt. The federal government via the US Securities and Exchange Commission (SEC), through the Municipal Securities Rulemaking Board (MSRB), requires annual and special reporting of the City's financial condition and status including specified material reportable events. Continuing disclosure overall is to promote a consistent level of financial transparency to the municipal bond market and our bond holders. Such mandatory reporting requires access to emerging bond ratings from the three national ratings agencies- Standard & Poor's, Moody's, and Fitch. These ratings are not information forwarded to municipalities or the SEC, and must be posted within ten days of the rating with the MSRB or the City is out of reporting compliance. This new reporting procedure was put in place to increase investor confidence and rectify bond industry irregularities. In order to ensure the City's financial bonding capacity and ratings, Urban Futures, Inc. (UFI), will provide all continuing disclosure duties for the City's municipal and private placement financing portfolio. UFI maintains specialized industry software for receiving immediate notification of bond issuance rating changes providing time to respond with accurate information and post to the MSRB on time. Purchase of the software is cost prohibitive for the continuing disclosure tasks required by the City. Furthermore, UFI will respond to the SEC's current Municipal Continuing Disclosure Cooperation Initiative (March 2014), and any other such efforts, to report and respond to inquiries related to determinations of materiality related to current and prior compliance. In addition, such ongoing continuing disclosure requires UFI to work with Finance staff in preparing regular and specialized tables for producing each bond's appropriate annual report and any other 25J -1 Agreement with Urban Futures Inc. September 16, 2014 Page 2 specialized documentation requested by investors with an understanding of the MSRB's Electronic Municipal Market Access portal organization. Continuing disclosure costs are associated with the complexity of continuing disclosure requirements per bond issuance. STRATEGIC PLAN ALIGNMENT Approval allows the City to meet Goal #4 City Financial Stability, Objective #2 (provide a reliable five -year financial forecast that ensures financial stability in accordance with the strategic plan) Strategy D (conduct an assessment of the City's debt and refinancing options to achieve savings). FISCAL IMPACT Funds are budgeted in account (account no. 40419020 - 62300). APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance and Management Services Agency 1 ED Exhibit: Agreement 25J -2 AGREEMENT FOR PROVISION OF THIS AGREEMENT, made and entered into this 16th day of September, 2014 by and between Urban Futures, hlc., a California corporation (hereinafter "Consultant', and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (hereinafter "City "). RECITALS A. The City desires to retain a consultant having special skill and knowledge in the field of municipal financial services relating to bond continuing disclosure requirements. B. Consultant represents that Consultant is able and willing to provide such services to the City. C. In undertaking the performance of this Agreement, Consultant represents that it is knowledgeable in its field and that any services performed by Consultant under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional consulting firm in the field. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1. SCOPE OF SERVICES Consultant shall perform those services as set forth in the Proposal to Provide Continuing Disclosure Services, attached hereto as Exhibit A and incorporated by this reference. 2. DELIVERY OF WORK PRODUCT - OWNERSHIP Consultant warrants and represents that it has the absolute right to enter into and perform this Agreement and will perform its obligations hereunder in accordance with standards and practices prevailing in the industry. Consultant's contribution to the Project, including works to be produced by Consultant hereunder, will not infringe or misappropriate the proprietary or personal rights of any third person or party. Consultant shall deliver to City any work product which results from the services provided. Said work product shall be submitted in hard copy and produced in a form compatible with City's information systems, as agreed between the Project Manager and Consultant. 3. COMPENSATION a, City agrees to pay, and Consultant agrees to accept as total payment for its services, the rates and charges identified in Exhibit A, The annual sum to be expended under this Agreement shall not exceed $5,500.00 per year, and the total sum expended shall not to exceed $16,500,00 during the three (3) year term of this Agreement. b. Payment by City shall be made within thirty (30) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals which may reasonably be expected by City. I 25J -3 4. TERM This Agreement shall be for a three (3) year term, commencing on the date first written above and terminating on September 15, 2017 unless terminated earlier in accordance with Section 13, below. The Term of this Agreement may be extended by a writing executed by the City Manager and the City Attorney, 5. INDEPENDENT CONTRACTOR Consultant shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer- employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Consultant performs the services which are the subject matter of this Agreement; however, the services to be provided by Consultant shall be provided in a manner consistent with all applicable standards and regulations governing such services. Consultant shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. 6. INSURANCE Prior to undertaking performance of work under this Agreement, Consultant shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: a. Due to the nature of services provided, Commercial General Liability Insurance is not required. b. Worker's Compensation Insurance, In accordance with the provisions of Section 3300 of the Labor Code, Consultant, if Consultant has any employees, is required to be insured against liability for worker's compensation or to undertake self - insurance. Prior to commencing the performance of the work under this Agreement, Consultant agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. c. Professional liability (errors and omissions) insurance, with a combined single limit of not less than $1,000,000 per claim, and $2,000,000 in the aggregate. d. The following requirements apply to insurance to be provided by Consultant pursuant to this section: (i) Consultant shall maintain all insurance required above for the entire period covered by this Agreement. (ii) Certificates of insurance shall be furnished to the City upon execution of this Agreement and shall be approved in form by the City Attorney. (iii) Certificates and policies shall state that the policies shall not be canceled or reduced in coverage or changed in any other material aspect without thirty (30) days prior written notice to the City. 2 25J -4 e. If Consultant fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not affect Consultant's right to be paid for its time and materials expended prior to notification of termination. Consultant waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City. 7. INDEMNIFICATION Consultant agrees to and shall indemnify and hold harmless the City, its officers, agents, employees, consultants, special counsel, and representatives from liability: (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal inj m'y, including health, and claims for property damage, which may arise from the negligence, recklessness or willful misconduct of the Consultant or its contractors, subcontractors, agents, employees, or other persons acting on their behalf which relates to the services described in section 1 of this Agreement; and (2) from any claim that personal injury, damages, just compensation, restitution, judicial or equitable relief is due by reason of the negligence, recklessness or willful misconduct of Consultant arising from this Agreement. The Consultant further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation in any legal proceeding. 8. CONFIDENTIALITY If Consultant receives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Consultant agrees that it shall not use or disclose such information except in the performance of this Agreement, and further agrees to exercise the same degree of care it uses to protect its own information of like importance, but in no event less than reasonable care. "Confidential Information" shall include all nonpublic information. Confidential information includes not only written information, but also information transferred orally, visually, electronically, or by other means. Confidential information disclosed to either party by any subsidiary and/or agent of the other party is covered by this Agreement. The foregoing obligations of non -use and nondisclosure shall not apply to any information that (a) has been disclosed in publicly available sources; (b) is, through no fault of the Consultant disclosed in a publicly available source; (c) is in rightful possession of the Consultant without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Consultant without reference to information disclosed by the City. 9. CONFLICT OF INTEREST CLAUSE Consultant covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 10. NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or 25J -5 certified mail, postage prepaid, or sent by facsimile or other telegraphic communication in the manner provided in this Section, to the following persons: To City: Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M -30) P.O. Box 1988 Santa Ana, CA 92702 -1988 Facsimile (714) 647 -6956 Copies to: Executive Director of Finance and Management Services City of Santa Ana 20 Civic Center Plaza (M -17) P.O. Box 1988 Santa Ana, California 92702 Facsimile (714) 647 -5414 and City Attorney City of Santa Ana 20 Civic Center Plaza (M -29) P.O. Box 1988 Santa Ana, California 92702 Facsimile (714) 647 -6515 To Consultant: Urban Futures, Inc. 3111 North Tustin, Suite 230 Orange, California 92865 Phone(714)283 -9334 Facsimile (714) 283 -5465 A party may change its address by giving notice in writing to the other party. Thereafter, any communication shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by facsimile, communication shall be effective or deemed to have been given twenty -four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above. For purposes of calculating these time frames, weekends, federal, state, County or City holidays shall be excluded. 11. FXCLUSIYITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Consultant, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Consultant. The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Consultant nor the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. 4 25J -6 12. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Consultant, Consultant may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other consultants retained by City. 13. TERMINATION This Agreement may be temlinated by the City upon thirty (30) days written notice of termination. In such event, Consultant shall be entitled to receive and the City shall pay Consultant compensation for all services performed by Consultant prior to receipt of such notice of termination, subject to the following conditions; a. As a condition of such payment, the Executive Director may require Consultant to deliver to the City all work product completed as of such date, and in such case such work product shall be the property of the City unless prohibited by law, and Consultant consents to the City's use thereof for such purposes as the City deems appropriate. However, any use of unfinished work product shall be at City's sole risk, b. Payment need not be made for work which falls to meet the standard of performance specified in the Recitals of this Agreement. 14. DISCRIMINATION Consultant shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities. Consultant affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 15. JURISDICTION - VENUE This Agreement and all questions relating to its validity, interpretation, performance, and enforcement shall be government and construed in accordance with the laws of the State of California. This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. 16. PROF, ESSIONAL LICENSES Consultant shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other governmental agencies. Consultant shall notify the City immediately and in writing of her inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 25J -7 17. MISCELLANEOUS PROVISIONS a, Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. b. Captions and headings in this Agreement, including the title of this Agreement, are for convenience only and are not to be considered in construing this Agreement. c. Ali Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: MARIA D. HUIZAR Cleric of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: 22a',v2�' Kyle C ellesen Deputy City Attorney RECOMMENDED FOR APPROVAL: FRANCISCO GUTIERREZ Executive Director — FMSA CITY OF SANTA ANA DAVID CAVAZOS City Manager URBAN FUTURES, INC. MICHAEL P. BUSCH Chief Executive Officer 6 25J -8 City of Santa Ana Proposal to Provide Continuing Disclosure Services Prepared by: Urban Futures, Inc. www.urbanfuturesinc.com Southern California Office 3111 North Tustin, Suite 230 Orange, CA 92865 Bus: (714) 283 -9334 Fax: (714) 283 -5465 Northern California Office 1470 Maria Lane, Suite 315 Walnut Creek, CA 94596 Bus: (925) 478 -7450 Fax: (925) 478 -7697 UA.0� FUTURES I Incorporated August 7, 2014 Francisco Gutierrez Finance Director City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 Subject: Proposal to Provide Continuing Disclosure Services Dear Mr. Gutierrez: UFI is submitting this proposal to provide Continuing Disclosure Services to the City of Santa Ana (the "City'). Urban Futures is dedicated to providing exemplary service to its clients. To achieve and maintair our standards for service, UFI, through its Public Finance Group, provides a variety of debt management services, including Continuing Disclosure Services. UFI provides 100% dedicated staff to Continuing Disclosure. Our understanding of the ever - changing standards for Continuing Disclosure makes our firm the best choice to provide this service. We can ensure the City is, and remains, in full compliance with mandatory Continuing Disclosure obligations. Investors, underwriters, bond counsels, the Municipal Securities Rulemaking ( "MSRB "), and the U.S. Securities and Exchange Commission ( "SEC ") demand the most current and accurate issuer information. Our comprehensive Continuing Disclosure Services package provides updated financial information and mandatory disclosures to municipal market participants on a regular basis. We offer a mix of services that ensure the City is and remains in full compliance with mandatory Continuing Disclosure covenants: • Dissemination Agent Services to ensure all disclosure documents are posted on MSRB's Electronic Municipal Market Access ( "EMMA ") and received by Digital Assurance Certification ( "DAC ") correctly and in a timely manner. (mandatory) • Significant /Material Event notice preparation ensures that mandatory notice filings are prepared and filed properly. (mandatory) • Real -time ratings surveillance of the credit, bond, and insurer ratings ensures all notices are drafted and posted within the required 10 business days. (mandatory) • Continuing Disclosure Annual Reports ( "CDARs ") preparation in accordance with Continuing Disclosure Agreements ( "CDAs "). (mandatory) • In -house preparation of analytical tables mandatory for Continuing Disclosure provides an unparalleled depth of understanding. (optional) • On -call ratings protection from audits by the ratings agencies (S &P, Moody's, Fitch) are handled by UFI with and /or on behalf of the issuer ensure credit ratings are protected. (optional) • On- demand historical continuing disclosure compliance audits and historical disclosure updates ensure that all past and future disclosures are compliant. (optional) 3111 North Tustin, Suite 230 1 Orange, CA 92865 1 t: 714.283.9334 1 f: 714.283.5465 1470 Maria Lane, Suite 315 1 WalnutEy5 �C.f096 I t: 925.478.7450 1 f: 925.478.7697 Enclosed please find our proposal for Continuing Disclosure Services. Thank you for the opportunity to submit this proposal. We welcome the opportunity to work with you and your staff. Please feel free to call me if you have any questions at (714) 283 -9334, or email me at MichaelB @urbanfuturesinc.com. Sincerely, Michael P. Busch, CEO URBAN FUTURES, INC. cc: Ed Monaco, Associate 3111 North Tustin, Suite 230 1 Orange, CA 92865 1 t: 714.283.9334 1 f: 714.283.5465 ■ 1470 Maria Lane, Suite 315 1 Walnut2 k,� Cq"96 1 t: 925.478.7450 1 f: 925.478.7697 Table of Contents Introduction and Corporate Profile ........................ ............................... 2 Project Understanding ........................................... ............................... 2 Experience /Qualifications ...................................... ............................... 3 Personnel................................................................ ............................... 5 Continuing Disclosure References .......................... ............................... 8 FeeProposal ......................................................... ............................... 10 Current Continuing Disclosure Clients ................. ............................... 12 25J -12 Urban Futures, Inc. (UFI) is a full service municipal advisory and management consulting firm that has served cities, counties, agencies, schools, water districts and special districts in the State of California since 1972. Over the last 40 years, Urban Futures, Inc. has broadened its base of expertise with highly skilled and experienced professionals expanding its consulting practice to include strategic planning, financial analysis, management consulting, and special study services. Urban Futures, Inc. is the largest solely owned municipal financial advisor and management consulting firm in California with offices in the cities of Orange and Walnut Creek. UFI currently serves over 140 cities, school districts, successor agencies, joint powers and financing authorities, and enterprise districts in California with Continuing Disclosure Services. We use the latest technology to streamline operations, thereby enabling us to provide expedient and affordable services. BACKGROUND: Rule 15c2 -12 In 1989 the Securities Exchange Commission (SEC) adopted Rule 15c2 -12 (the "Rule ") to improve disclosure practices in the municipal marketplace. Amendments were subsequently made, and continue to be made, to increase the amount of reliable information in the secondary market. These amendments now require issuers to provide continuing disclosure throughout the life their bond issues. The Rule mandates that a municipal securities broker cannot take possession or sell municipal securities unless they believe that the issuer of the securities will comply with the SEC's continuing disclosure requirements. According to the Rule, Issuers must: 1. Annually: File disclosure and operating information with MSRB's EMMA repository. 2. As significant events occur: Prepare and file announcements of the events as identified in the Rule (defeasances, payment defaults, rating changes, changes of liquidity provider, change of Trustee, etc.). 25J -13 2 As your continuing disclosure agent, Urban Futures, Inc. can assume the lead and ensure that the City meets its continuing disclosure obligations as a bond issuer. We use the latest technology to streamline operations, thereby enabling us to provide expedient and cost effective services. We realize that every client is unique, and as such, each client has different Continuing Disclosure needs. We do not merely prepare the required reports; we follow the steps as outlined in 'Best Practices in Disclosure' and create a custom reporting program to best meet the disclosure obligations of the issuer and to disseminate information to the investors. BENEFITS Continuing Disclosure is not only required by SEC Rule 15c2 -12, but is beneficial to issuers, investors and underwriters. Making disclosure information more accessible helps to improve the efficiency of the municipal market and can lower borrowing costs by improving liquidity of an issuer's bonds. The liquidity of a security may be enhanced if it is demonstrated to potential investors that the issuer is willing to provide reliable continuing information on a timely basis. As a result, investors are more likely to accept a lower interest rate at the time of issuance and the issuer may benefit from substantial interest cost savings. FULL SERVICE FIRM Urban Futures, Inc. is a full service firm with over 200years of combined staff experience. This experience includes providing advisory services of over 12 billion dollars in municipal debt throughout the state of California, and over 15 years of experience providing Continuing Disclosure services to 140 public agency clients totaling over 475 annual disclosures. The quality of the Continuing Disclosure service that UFI provides is a testament to the financial expertise and continuous attention to the ever - changing needs of our clients. 25J -14 3 TECHNOLOGY Online Publication Effective July 1, 2009, all municipal bond issuers are required to post all Continuing Disclosure documents with the Municipal Securities Rulemaking Board's (MSRB) central repository system named "EMMA ". The implementation of EMMA greatly improves public access to municipal market data and Continuing Disclosure filings, thereby improving transparency in the municipal marketplace. Technological Expertise and the Importance of Online Disclosure The Securities and Exchange Commission (SEC) has embraced internet disclosure for its ability to promote transparency, liquidity, and efficiency in the capital markets. The Government Finance Off icersAssociation (GFOA) also adopted recommended practices encouraging its members to use their websites for disclosure purposes. The consistent and ready availability of complete and timely disclosure information can enhance the secondary market liquidity of an issuer's bonds, making them more attractive to investors. Disclosure Track Urban Futures uses a custom database to track the reporting requirements of its clients. Disclosure Track was created with Continuing Disclosure in mind. This powerful management information system is used to maintain all relevant data pertaining to your Continuing Disclosure Agreements, such as issue name, issue description, issue purpose, reporting due date, events notices, trustee contact information and issuer contact information. DECADES OF PUBLIC FINANCE AND IN -DEPTH CONTINUING DISLCSOURE EXPERIENCE As this proposal will demonstrate, Urban Futures has been a recognized leader in providing high quality Continuing Disclosure Services. Although we're best known over the years for our creative financial advisory practice, our multi - disciplinary approach makes Urban Futures a valuable member of any team on any level. 25J -15 4 We are committed to initiating, facilitating, and maintaining open, collaborative communication with all parties. Urban Future's approach is characterized by the following: • CURIOSITY - Asking the right questions and engaging the right people • CLARITY - Being proactive in identifying issues, opportunities, and solutions • CREATIVITY - Being an advocate for comprehensive solutions and being flexible with alternatives and choices • CONFIDENCE- Ensuring thorough, frequent, and regular communication Urban Futures employs 25 individuals including 13 professionals and 12 paraprofessional and support staff. The firm has two offices, with the corporate office in the City of Orange and a Northern California location in the City of Walnut Creek. The proposed work for this proposal will be conducted out of the Orange office. Our staff has served public agencies in many different capacities. We understand that each agency faces different circumstances and we acknowledge each as an independent organization with unique goals and objectives. Our Public Finance Group is ableto draw on the expertise of our staff to produce excellent results. Because of our diversity, our staff has been called upon to advise public agencies in many different capacities. We believe our proposed staff, which includes a former municipal CFO and dedicated disclosure staff has the best qualifications to serve the City. Our team will work hard to meet the needs of the City. Given the nature of this engagement, UFI proposes to assemble a project team based on the City's needs. Michael Busch will provide overall direction and expert guidance for the engagement. The professionals we are offering to manage the City's day -to -day disclosure services are Ed Monaco and Russell Sager. 25J -16 5 BACKGROUND AND EXPERIENCE OF KEY INDIVIDUALS MICHAEL P. BUSCH, CEO Mr. Busch joined Urban Futures following a successful career in municipal government. Mr. Busch's municipal career consisted primarily of assistant /deputy city manager, CFO, and project manager positions. As such, he has extensive experience in strategic planning and municipal finance. Mr. Busch has served as the President of the Municipal Management Association of Southern California (MMASC), Chair of Cal -ICMA and currently serves as the Treasurer for the California Utility Executives Management Association. Education: Mr. Busch earned a Bachelor of Arts Degree from California State Polytechnic University Pomona in Urban and Regional Planning. In addition, Mr. Busch has earned a Master of Arts Degree in Public Administration from California State University Long Beach with an emphasis in public finance and public works. ED MONACO, Associate — Public Finance Mr. Monaco's duties consist of research, analysis, and administration for the Finance Department. He heads the Finance Department's Continuing Disclosure Division where he is in charge of daily operations as well as the preparation of Issuer's Annual Continuing Disclosure Reports. Mr. Monaco's other contributions include Fiscal Consultant Reports, Tax Increment Projections, bond issuance and refunding scenarios using DBC Financial software, and presentations to Ratings Agencies (S &P, Moody's, Fitch) for initial bond ratings and ratings updates. Education: Mr. Monaco is a graduate of California State University, Fullerton where he earned his Bachelor of Arts degree in Business Administration, with an emphasis in Finance. 25J -17 6 RUSSELL SAGER, Analyst — Public Finance Mr. Sager's duties consist of research and analysis for the Finance Department's Continuing Disclosure Division. He assists with the daily operations as well as the preparation of Issuer's Annual Continuing Disclosure Reports and analytical tables. Education: Mr. Sager is a graduate of California State University, Fresno where he earned his Bachelor of Arts degree in Economics. 25J -18 Sail Brriiari iho Financial Advisory In early June 2012, UFI was engaged by the City of San Bernardino to provide financial advisory and continuing disclosure services as the City progresses through chapter 9 bankruptcy. As part of our services, UFI is responsible for the day -to -day reporting of financial information to all creditors, rating agencies, bond holders, trustees and bond insurers. Due to the City's bankruptcy filing, the City sought out a firm with the expertise and depth to manage the complex nature of its disclosures. Continuing Disclosure Currently, UFI is providing Continuing Disclosure Services for 12 bond issues for the City of San Bernardino and associated municipal entities. A listing of these bonds can be found in the table below. In addition to producing and posting Continuing Disclosure Annual Reports, UFI is also producing and filing material events notices resulting from the City's chapter 9 bankruptcy filing, draws on Debt Service Reserve Accounts, and ratings changes. San Bernardino Joint Powers Financing Authority $16,320,000 Lease Revenue Refunding Bonds San Bernardino Joint Powers Financing Authority $19,000,000 Tax Allocation Refunding Bonds San Bernardino Joint Powers Financing Authority $8,590,000 Subordinate Tax Allocation Refunding Bonds San Bernardino Joint Powers Financing Authority $10,370,000 Public Facilities Lease Revenue Refunding Bonds San Bernardino Joint Powers Financing Authority $15,480,000 Refunding Certificates of Participation San Bernardino Joint Powers Financing Authority $30,330,000 Tax Allocation Refunding Bonds San Bernardino Joint Powers Financing Authority $3,635,000 Tax Allocation Bonds San Bernardino Joint Powers Financing Authority $55,800,000 Tax Allocation Revenue Refunding Bonds San Bernardino Joint Powers Financing Authority $21,105,000 Tax Allocation Revenue Refunding Bonds San Bernardino Joint Powers Financing Authority $28,665,000 Tax Allocation Bonds San Bernardino Joint Powers Financing Authority $7,065,000 Tax Allocation Bonds San Bernardino Joint Powers Financing Authority $3,220,000 Tax Allocation Bonds Contact Name David Cain, Finance Director Phone (909) 384 -5242 25J -19 Series 1996 Series 1998A Series 1998B 1997 Series A 1999 2002 Series 2002A Series 2005A Series 2005B Taxable Series 2006 Series 2010A Series 2010B H AI � -cat Continuing Disclosure Currently, UFI is providing Continuing Disclosure Services for 20 bond issues for the City of Pomona and associated municipal entities. A listing of these bonds can be found in the table below. In addition to producing and posting Continuing Disclosure Annual Reports, UFI is also producing and filing material events notices resulting from ratings changes. Pomona Public Financing Authority $52,335,000 Refunding Revenue Bonds 1998 Series W Redevelopment Agency Of The City Of Pomona $5,055,000 Tax Allocation Refunding Bonds 1998 Series X Redevelopment Agency Of The City Of Pomona $8,980,000 Tax Allocation Refunding Bonds 1998 Series Y Pomona Public Financing Authority $39,165,000 Revenue Bonds 2001 Series AD Pomona Public Financing Authority $15,205,000 Refunding Revenue Bonds 2002 Series AF City Of Pomona $13,985,000 Certificates of Participation 2003 Series AG Pomona Public Financing Authority $46,650,000 Revenue Bonds 2003 Series AH Pomona Public Financing Authority $19,910,000 Lease Revenue Bonds 2005 Series AN Pomona Public Financing Authority $4,385,000 Taxable Lease Revenue Bonds 2005 Series AP Pomona Public Financing Authority $10,065,000 Taxable Housing Revenue Bonds 2005 Series AQ City Of Pomona $42,280,684 Pension Obligation Refunding Bonds 2006 Series AR Pomona Public Financing Authority $26,305,000 Revenue Bonds 2006 Series AS Pomona Public Financing Authority $8,355,000 Taxable Revenue Bonds 2006 Series AT Pomona Public Financing Authority $2,540,000 Lease Revenue Bonds 2006 Series AU Pomona Public Financing Authority $10,790,000 Taxable Lease Revenue Bonds 2006 Series AV Pomona Public Financing Authority $25,865,000 Subordinate Revenue Bonds 2006 Series AX Pomona Public Financing Authority $8,375,000 Subordinate Revenue Bonds 2007 Series AW Pomona Public Financing Authority $99,370,000 Revenue Bonds 2007 Series AY Pomona Public Financing Authority $6,930,000 Taxable Revenue Refunding Bonds 2007 Series AZ Pomona Public Financing Authority $15,575,000 Revenue Bonds 2007 Series BA Contact Name Linda Poliakon, Senior Accountant Phone (909) 620 -2093 25J -20 9 UFI is proposing to supply the City with on -going Continuing Disclosure Services which would satisfy all disclosure requirements from today's date forward for all outstanding obligations. Our proposed annual fee is $5,500. Detailed below is a breakdown of all fees: Act as Dissemination Agent for Continuing Disclosure Documents .............. .......................Included in annual fee Preparation of Annual Report(s) .......................................... ............................... .......................Included in annual fee Preparation of Tables Contained in Annual Reports ......... ............................... .......................Included in annual fee Real -time Ratings Monitoring & Notice Preparation ........ ............................... .......................Included in annual fee *Additional hourly rates apply to on- request work Fees for bond issues as stated below (annual fee per issue to satisfy all requirements): Bond Issue Annual Fee $20,110,000 Santa Ana Financing Authority Water Revenue Refunding Bonds, Series 2004 & Series 2014 $750 $20,945,000 Community Redevelopment Agency of the City of Santa Ana Tax Allocation Bonds, Series 2003A $725 $34,145,000 Community Redevelopment Agency of the City of Santa Ana Tax Allocation Refunding Bonds, Series 2003B $725 $66,790,000 Community Redevelopment Agency of the City of Santa Ana Tax Allocation Bonds(Merged Project Area), 2011 Series A $1,550 City of Santa Ana 2014 Private Placement Public Facilities $600 $16,985,000 City of Santa Ana Refunding Certificates of Participation 2003 Series A $600 $68,010,000 City of Santa Ana Gas Tax Revenue Certificates of Participation. Series 2007 $600 Total Annual Fee $5,500 Continuing Disclosure Services for additional bonds can be arranged on an as needed basis 25J -21 10 Additional Work (On- "e *Hourly Fees proposed as below CEO /President $245 Managing Principal $225 Principal $195 Associate $175 Analyst $150 Assistant/Clerical $50 No additional cost, if supplemental information /tables are supplied by the City. If Supplemental Reports supplemental information /tables areto besupplied by UFI: $125 per hour, notto exceed amount can be provided when work is requested. Expenses, if applicable, are paid by the City. No additional cost, if amendment information /tables are suppl ied by the City. If Amended Reports amendment information /tables are to be supplied by UFI: $125 per hour, not to exceed amount can be provided when work is requested. Expenses, if applicable, are paid by the City. Urban Futures, Inc. provides real -time monitoring of all bond ratings. This service is included in each bond's annual fee. Notification to the City of all ratings changes is guaranteed to be made prior to the MSRB's "10 Business Day" rule. UFI will draft and post to EM MA on the City's behalf any two material event notices per bond issue free Notice of Material Events of charge each year. A charge of $125 per material event for drafting and posting is incurred thereafter. If one material event affects more tha n one bond issue, the fee will only be $125 total, regardless of number of notices drafted /posted. In the case of a draw on Debt Service Reserves, UFI will contact the Trustee on the City's behalf in order to draft and postthe necessary material event notice. 25J -22 11 Cities /Authorities /RDA Successor School Districts Agencies /Districts ➢ Klamath Trinity Joint Unified ➢ El Monte Union High School District ➢ Adelanto ➢ Anderson Union High School ➢ Loma Prieta Joint Union ➢ Anderson District Elementary School District ➢ Artesia ➢ Arcata Elementary School ➢ Magnolia School District ➢ Arvin District ➢ Mendota Unified School ➢ Auburn ➢ Baker Valley Unified School District ➢ Azusa District ➢ Morongo Unified School ➢ Barstow ➢ Benicia Unified School District ➢ Banning District ➢ Mt. Diablo Unified School ➢ Beverly Hills ➢ Bennett Valley Union School Distort ➢ Brawley District ➢ Mt. Diablo Unified School ➢ Calexico ➢ Bradley Union Elementary District, Community ➢ California State School District Facilities District No. 1 Communities Development ➢ Bawley Elementary School ➢ Northern Humboldt Union Authority District High School District ➢ Calimesa ➢ Buellton Union School ➢ Ojai Unified School District ➢ Calipatria District ➢ Old Adobe Union School ➢ Ceres ➢ Cabrillo Unified School District ➢ Cerritos District ➢ Orland Joint Unified School ➢ Claremont ➢ Chico Unified School District District ➢ Cloverdale ➢ Cloverdale Unified School ➢ Pierce Joint Unified School ➢ Coachella District District ➢ Coalinga ➢ Coalinga -Huron Joint Unified ➢ Red Bluff Joint Union High ➢ Commerce School District School District ➢ Corcoran ➢ Cotati- Rohnert Park Unified ➢ Redondo Beach Unified ➢ Desert Hot Springs School District School District ➢ Dinuba ➢ Delano Joint Union High ➢ Rio Elementary School ➢ Flllmore School District District ➢ Gonzales ➢ Elementary Schools Facilities ➢ Roseland School District ➢ Grand Terrace Improvement District No. l ➢ Santaynez Valley High ➢ Greenfield ofthe Gridley Unified School School District ➢ Hanford District ➢ School Facilities ➢ Hawaiian Gardens ➢ Elk Hills Elementary School Improvement District No.l ➢ Healdsburg District ofthe Healdsburg Unified ➢ Highland ➢ Enterprise Elementary School School District ➢ Hughson District ➢ Sebastopol Union School ➢ Huntington Park ➢ Forestville Union School District ➢ Imperial District ➢ Sands Elementary School ➢ King City ➢ Fortuna Elementary School District ➢ La Habra District ➢ Sonora Elementary School ➢ La Puente ➢ Fortuna Elementary School District ➢ Lancaster District (formerly Fortuna ➢ Surma Union High School ➢ Lawndale Union Elementary School District ➢ Lemon Grove District) ➢ Southern Humboldt Unified ➢ Lindsay ➢ Fortuna Elementary School School District ➢ Manteca District (formerly Rohnerville ➢ Southern Trinity Joint Unified ➢ March Air Force Base School District) School District ➢ Maywood ➢ Garvey School District ➢ Summerville Union High ➢ Moorpark ➢ Gateway Unified School School District ➢ National City District ➢ Taft City Elementary School ➢ Parker ➢ Greenfield Union School District ➢ Pomona District ➢ Terra Bella Union School ➢ Ripon ➢ Guerneville Elementary District ➢ Rosemead School District ➢ Wasco Union High School ➢ Seaside ➢ Happy Valley Union District ➢ Solana Beach Elementary School District ➢ Wasro Union School District ➢ Soledad ➢ Healdsburg Unified School ➢ West Sonoma County Union ➢ South El Monte District High School District ➢ South Pasadena ➢ Hueneme Elementary School ➢ Whittier City School District ➢ Stanislaus -Ceres RDA District ➢ Whittier City School District ➢ Tehachapi ➢ Humboldt County Offire of ➢ Willits Unified School District ➢ Temple City Education ➢ Wright Elementary School ➢ Upland ➢ Inglewood Unified School District ➢ Westmorland District ➢ Winters ➢ Kentfield School District 25J -23 12 25J -24 12