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Home My WebLink AboutContract_PFM_Kittitas_County_executedPFMFINANCIALADVISORSLLCAGREEMENTFORFINANCIALADVISORYSERVICESThisagreement("Agreement"),madeandenteredintothisÒdayofyandbetweenKittitasCounty("Client")andPFMFinancialAdvisorsLLC(hereinaftbrcalled"PFM")setsforththetermsandconditionsunderwhichPFMshallprovideservices.WHEREAS,ClientisdesirousofobtainingtheservicesofaSnancialadvisortodevelopandassistinimplementingClient'sstrategiestomeetitscurrentandlong-termoperations,financialobligations,capitalfinancingneedsandrenderassistanceinrespecttodebttransactions;andWHEREAS,PFMiscapableofprovidingthenecessarySnancialadvisoryservices.NOW,THEREFORE,inconsiderationoftheabovementionedpremisesandintendingtobelegallyboundhereby,ClientandPFMagreeasfollows:LSCOPEOFSERVICESPFMshallprovide,uponrequestoftheClient,servicesrelateddebtissuance,asapplicableandsetforthinExhibitAtothisAgreement.ClientacknowledgesandagreesthatmosttasksrequestedbyClientwillnotrequireallservicesprovidedforinExhibitAandassuchthespecificscopeofservicesforsuchtaskshallbelimitedtojustthoseservicesrequiredtocompletethetask.AnymaterialchangesinoradditionstothescopeofservicesdescribedinExhibitAshallbepromptlyreflectedinawrittensupplementoramendmenttothisAgreement.ServicesprovidedbyPFMwhicharenotspecificallyreferencedinthescopeofservicessetforthinExhibitAofthisAgreementshallbecompletedasagreedinwritinginadvancebetweentheClientandPFM.UponrequestofClient,PFMoranaffiliateofPFMmayagreetoadditionalservicestobeprovidedbyPFMoranaffiliateofPFM,byaseparateagreementbetweentheClientandPFMoritsrespectiveaffiliate.II.WORKSCHEDULETheservicesofPFMaretocommenceassoonaspracticableaftertheexecutionofthisAgreementandarequestbytheClientforsuchservice.III.REGISTEREDMUNICIPALADVISOR;REQUIREDDISCLOSURES1.PFMisaregisteredmunicipaladvisorwiththeSecuritiesandExchangeCommission(the"SEC")andtheMunicipalSecuritiesRulemakingBoard(the"MSRB"),pursuanttotheSecuritiesExchangeActof1934Rule15Ba1-2.IfClienthasdesignatedPFMasitsindependentregisteredmunicipaladvisor("IRMA")forpurposesofSECRule15Ba1-1(d)(3)(vi)(the"IRMAexemption"),thenservicesprovidedpursuanttosuchdesignationshallbetheservicesdescribedinExhibitAhereto,subjecttoanylimitationsdescribedthereon.PFMshallnotberesponsiblefor,andshallbeheldharmlessfromandagainstanypartyinconnectionwith,verifyingthatPFMisindependentfromanyotherpartyseekingtorelyontheIRMAexemption(assuchindependent1 statusisrequiredpursuanttotheIRMAexemption,asinterpretedfromtimetotimebytheSEC).ClientacknowledgesandagreesthatanyreferencetoPFM,itspersonnelanditsroleasIRMA,includinginthewrittenrepresentationofClientrequiredunderSECRule15Ba1-1(d)(3)(vi)(B)shallbesubjecttopriorapprovalbyPFM.ClientfurtheragreesnottorepresentthatPFMisClient'sIRMAwithrespecttoanyaspectofamunicipalsecuritiesissuanceormunicipalfinancialproduct,outsideofthescopeofserviceswithoutPFM'spriorwrittenconsent.2.MSRBRuleG-42requiresthatmunicipaladvisorsmakewrittendisclosurestoitsClientsofallmaterialconflictsofinterestandcertainlegalordisciplinaryevents.SuchdisclosuresareprovidedinPFM'sDisclosureStatementdeliveredtoClienttogetherwiththisAgreement.IV.FINANCIALADVISORYCOMPENSATIONFortheservicesprovidedunderthisAgreement,PFM'sprofessionalfeesshallbepaidasprovidedinExhibitBtothisAgreementandClientshallpayexpensesandfeesforotherservicesnotsetforthinExhibitAasprovidedbelow.1.ReimbursableExpensesInadditiontofeesforservices,PFMwillbereimbursedfornecessary,reasonable,anddocumentedout-of-pocketexpensesincurred,includingtravel,meals,lodging,telephone,mail,andotherordinarycostandanyactualextraordinarycostforgraphics,printing,dataprocessingandcomputertimewhichareincurredbyPFM.TheClientwillberesponsibleforexpensesofthird-partiesprovidingseparateservices,includingbondratingagencies,bondcounsel,of6cialstatementdistribution,andfiscalagentorrefundingagents.UponrequestofClient,documentationofsuchexpenseswillbeprovided.2.OtherServicesAnyserviceswhicharenotincludedinthescopeofservicessetforthinExhibitAofthisAgreementwillbesubjecttoseparate,mutuallyacceptablefeestructures.IV.TERMSANDTERMINATIONThisAgreementshallbeeffectiveuponexecutionuntilDecember31,2017(the"InitialTerm")andmayrenewforadditional2yearperiods(eacha"RenewalTerm"andtogetherwiththeInitialTerm,the"Term").ThisAgreementshallremainineffectunlesscanceledinwritingbyeitherpartyuponthirty(30)dayswrittennoticetotheotherparty.V.ASSIGNMENTPFMshallnotassignanyinterestinthisAgreementorsubcontractanyoftheworkperformedundertheAgreementwithoutthepriorwrittenconsentoftheClient;providedthatuponnoticetoClient,PFMmayassignthisAgreementoranyinterestshereundertoamunicipaladvisorentityregisteredwiththeSECthatdirectlyorindirectlycontrols,iscontrolledby,orisundercommoncontrolwith,PFM. VI.INFORMATIONTOBEFURNISHEDTOPFMAllinformation,data,reports,andrecords("Data")inthepossessionoftheClientoranythirdpartynecessaryforcarryingoutanyservicestobeperformedunderthisAgreementshallbefurnishedtoPFMandtheClientshall,andshallcauseitsagent(s)to,cooperatewithPFMinitsconductofreasonableduediligenceinperformingtheservices,includingwithrespecttothefactsthatarenecessaryinitsrecommendation(s)totheClientinconnectionwithamunicipalsecuritiestransactionormunicipalfinancialproductand/orrelevanttoaClient'sdeterminationwhethertoproceedwithacourseofaction.TotheextentClientrequeststhatPFMprovideadvicewithregardtoanyrecommendationmadebyathirdparty,ClientwillprovidetoPFMwrittendirectiontodosoaswellasanyDataithasreceivedfromsuchthirdpartyrelatingtoitsrecommendation.ClientacknowledgesandagreesthatwhilePFMisrelyingontheDatainconnectionwithitsprovisionoftheservicesunderthisAgreement,PFMmakesnorepresentationwithrespecttoandshallnotberesponsiblefortheaccuracyorcompletenessofsuchData.VII.NOTICESAllnoticesgivenunderthisAgreementshallbeinwriting,sentbyregisteredUnitedStatesmail,withreturnreceiptrequested,addressedtothepartyforwhomitisintended,atthedesignatedbelow.Thepartiesdesignatethefollowingastherespectiveplacesforgivingnotice,to-wit:KITTITASCOUNTY205West5*Avenue,Suite102Ellensburg,WA98926Attention:BrettWachsmith,CountyTreasurerPFMFINANCIALADVISORSLLC1200FifthAvenue,Suite1220Seatde,WA98101Attention:SusanMusselman,DirectorVIII.TITLETRANSFERAllmaterials,exceptfunctioningordynamicfinancialmodels,preparedbyPFMpursuantexclusivelytothisAgreementshallbethepropertyoftheClient.Subjecttotheexceptiondescribedabove,uponterminationofthisAgreement,atClient'sreasonablerequestnolaterthanthree3yearsaftertheterminationofthisAgreementPFMshalldelivertotheClientcopiesofanyandallmaterialpertainingtothisAgreement.IX.PFM'SREPRESENTATIVES1.AssignmentofNamedIndividualsTheprofessionalemployeesofPFMsetforthbelowwillprovidetheservicessetforthinthisAgreement;providedthatPFMmay,fromtimetotime,supplementorotherwiseamendtheteammemberssetforthbelow.3 •SusanMusselman,Director•DuncanBrown,SeniorManagingConsultant2.ChangesinStaffRequestedbytheClientTheClienthastherighttorequest,foranyreason,PFMtoreplaceanymemberoftheadvisoryteam.ShouldtheClientmakesucharequest,PFMshallpromptlysuggestasubstituteforapprovalbytheClient.X.INSURANCEPFMshallmaintaininsurancecoveragewithpolicylimitsnotlessthanasstatedinExhibitC.XI.LIMITATIONOFLIABILITYExcepttotheextentcausedbywillfulmisconduct,badfaith,grossnegligenceorrecklessdisregardofobligationsordutiesunderthisAgreementonthepartofPFMoranyofitsassociatedpersons,neitherPFMnoranyofitsassociatedpersonsshallhaveliabilitytoanypersonforanyactoromissioninconnectionwithperformanceofitsserviceshereunder,orforanyerrorofjudgmentormistakeoflaw,orforanylossarisingoutofanyissuanceofmunicipalsecurities,anymunicipalfinancialproductoranyotherfinancialproductorinvestment,orforanyfinancialorotherdamagesresultingfromClient'selectiontoactornottoact,asthecasemaybe,contrarytoor,absentnegligenceonthepartofPFMoranyofitsassociatedpersons,uponanyadviceorrecommendationprovidedbyPFMtoClient.XII.INDEPENDENTCONTRACTOR;NOTHIRD-PARTYBENEFICIARYPFM,itsemployees,officersandrepresentativesatalltimesshallbeindependentcontractorsandshallnotbedeemedtobeemployees,agents,partners,servantsand/orjointventurersofClientbyvirtueofthisAgreementoranyactionsorservicesrenderedunderthisAgreement.NothinginthisAgreementisintendedorshallbeconstruedtogiveanyperson,otherthanthePartieshereto,theirsuccessorsandpermittedassigns,anylegalorequitablerights,remedyorclaimunderorinrespectofthisAgreementoranyprovisionscontainedherein.XIII.APPLICABLELAWThisAgreementshallbeconstrued,enforced,andadministeredaccordingtothelawsoftheStateofWashington.PFMandtheClientagreethat,shouldadisagreementariseastothetermsorenforcementofanyprovisionofthisAgreement,eachpartywillingoodfaithattempttoresolvesaiddisagreementpriortopursuingotheraction.XIV.ENTIREAGREEMENT;SEVERABILITYThisAgreementrepresentstheentireagreementbetweenClientandPFMandmaynotbeamendedormodifiedexceptinwritingsignedbybothparties.TheinvalidityinwholeorinpartofanyprovisionofthisAgreementshallnotvoidoraffectthevalidityofanyotherprovision. XV.EXECUTION;COUNTERPARTSEachpartytothisAgreementrepresentsandwarrantsthatthepersonorpersonssigningthisAgreementonbehalfofsuchpartyisauthorizedandempoweredtosignanddeliverthisAgreementforsuchparty.ThisAgreementmaybesignedinanynumberofcounterparts,eachofwhichshallbeanoriginalandallofwhichwhentakentogethershallconstituteoneandthesamedocument.INWITNESSTHEREOF,theClientandPFMhaveexecutedthisAgreementasofthedayandyearhereinabovewritten.KittintyBrettWachsmith,ountyTreasurerDate:PFMANCIALSORSLLCSusanMusselman,DirectorDate:5 EXHIBITASCOPEOFSERVICES1.ServicesRelatedtoDebtTransactions(Includesshorttermfinancings,notes,loans,lettersofcredit,lineofcreditandbonds);providedthatifthetransactioniscompetitive,theservicesoftheSnancialadvisorwillbemodifiedinadvanceinwritingtoreflectthatprocess.UpontherequestoftheClient:•Analyzefinancialandeconomicfactorstodetermineiftheissuanceofbondsisappropriate.•DevelopafinancingplaninconcertwithClient'sstaffwhichwouldincluderecommendationsastothetimingandnumberofseriesofbondstobeissued.•AssisttheClientbyrecommendingthebestmethodofsale,eitherasanegotiatedsale,privateplacementoracompetitivesale.Inacompetitivesale,makerecommendationastothedeterminationofthebestbid.Intheeventofanegotiatedsale,assistinthesolicitation,reviewandevaluationofanyinvestmentbankingproposals,andprovideadviceandinformationnecessarytoaidinsuchselection.•AdviseastothevariousfinancingalternativesavailabletotheClient.•Developalternativesrelatedtodebttransactionincludingevaluationofrevenuesavailable,maturityscheduleandcashflowrequirements.•Evaluatebenefitsofbondinsuranceand/orsecurityinsurancefordebtreservefund.•Ifappropriate,developcreditratingpresentationandcoordinatewiththeClienttheoverallpresentationtoratingagencies.•Foranegotiatedsale,reviewunderwriter'sproposalsandsubmitawrittenanalysisofsametotheClient.•AssisttheClientintheprocurementofotherservicesrelatingtodebtissuancesuchasprinting,payingagent,registrar,etc.•Identifykeybondcovenantfeaturesandadviseastothefinancialconsequencesofprovisionstobeincludedinbondindentures,resolutionsorothergoverningdocumentsregardingsecuritv,creationofreservefunds,flowoffunds,redemptionprovisions,additionalparitydebttests,etc.;reviewandcommentonsuccessivedraftsofbondgoverningdocuments.•Reviewtherequirementsandsubmitanalysistobondinsurers,ratingagenciesandotherprofessionalsastheypertaintotheClient'sobligation.6 •Reviewtheterms,conditionsandstructureofanyproposeddebtofferingundertakenbytheClientandprovidesuggestions,modincationsandenhancementswhereappropriateandnecessarytoreflecttheconstraintsorcurrentSnancialpolicyandfiscalcapability.•CoordinatewithClient'sstaffandotheradvisorsasrespectsthefurnishingofdataforofferingdocuments,itbeingspecificallyunderstoodthatPFMisnotresponsiblefortheinclusionoromissionofanymaterialinpublishedofferingdocuments.•Asapplicable,advisetheClientontheconditionofthebondmarketatthetimeofsale,includingvolume,timingconsiderations,competingofferings,andgeneraleconomicconsiderations.•AssistandadvisetheClientinnegotiationswithinvestmentbankinggroupsregardingfees,pricingofthebondsandfinaltermsofanysecurityoffering,andmakerecommendationsregardingaproposedofferingtoobtainthemostfavorablefinancialtermsbasedonexistingmarketconditions.•Arrangefortheclosingofthetransactionincluding,butnotlimited,tobondprinting,signingandfinaldeliveryofthebonds.•Foranycompetitivesaleofbondsornotes,prepareofficialnoticeofsale,recommendsaleparameters,takestepsnecessarytoensurebroadmarketexposureoftheissue,throughtheuseofnewswireservicesandofficialstatementdistribution,andperformadditionalstepsnecessaryandcustomaryforcompetitivebondsales.•Review(oruponrequest,prepare,foranadditionalfeesetforthinSectionIVabove)PreliminaryOfficialStatementsandfinalOfficialStatementspreparedonbehalfoftheClientforuseinmarketinganybondsandmeetingregulatoryrequirements.2.ServicesrelatedtotheFinancialPlanningandPolicyDevelopmentwhichmaybesubjecttohourlyfeesassetforthinExhibitB,Section2,uponrequestoftheClient:•AssisttheClientintheformulationofFinancialandDebtPoliciesandAdministrativeProcedures.•Reviewcurrentdebtstructure,identifyingstrengthsandweaknessesofstructuresothatfuturedebtissuescanbedesignedtomaximizeabihtytofinancefuturecapitalneeds.Thiswillinclude,butnotbelimitedto,reviewingexistingdebtforthepossibilityofrefundingthatdebttoprovidetheClientwithsavings.•AnalyzefuturedebtcapacitytodeterminetheClient'sabilitytoraisefuturedebtcapital.•AssisttheClientinthedevelopmentoftheClient'sCapitalImprovementProgrambyidentifyingsourcesofcapitalfunding.7 •AssisttheClientwiththedevelopmentoftheClient'sfinancialplanningeffortsandprocessbyassessingcapitalneeds,identifyingpotentialrevenuesources,analyzefinancingalternativessuchaspay-as-you-go,lease/purchasing,short-termvs.long-termfinancings,assessments,userfees,impactfees,developercontributions,public/privateprojects,andgrantsandprovideanalysisofeachalternativeasrequiredastothebudgetaryandfinancialimpact.•Reviewthereportsofaccountants,independentengineersandotherprojectfeasibilityconsultantstoensurethatsuchstudiesadequatelyaddresstechnical,economic,andfinancialriskfactorsaffectingthemarketabilityofanyproposedrevenuedebtissues;providebondmarketassumptionsnecessaryforfinancialprojectionsincludedinthesestudies;attendallrelevantworkingsessionsregardingthepreparations,reviewandcompletionofsuchindependentstudies;andprovidewrittencommentsandrecommendationsregardingassumptions,analyticmethods,andconclusionscontainedtherein.•Develop,manageandmaintaincomputermodelsforlong-termcapitalplanningwhichprovideforinputsregardinglevelsofadvaloremandnon-advaloremtaxation,growthratesbyoperatingrevenueandexpendituteitem,timing,magnitudeandcostofdebtissuance,andprojectoperatingandcapitalbalances,selectedoperatinganddebtratiosandotherfinancialperformancemeasuresasmaybedeterminedbytheClient.•Conductstrategicmodelingandplanningandrelatedconsulting.•AttendmeetingswithClient'sstaff,consultantsandotherprofessionalsandtheClient.•UndertakefinancialplanningandpolicydevelopmentassignmentsmadebytheClientregardingfinancings,andfinancialpolicyincludingbudget,tax,cashmanagementissuesandrelatedfiscalpolicyandprograms.AssisttheClientinpreparingfinancialpresentationsforpublichearingsand/orreferendums.•ProvidespecialfinancialservicesasrequestedbytheClient.8 EXHIBITBCOMPENSATIONFORSERVICES1.FixedRateTransactionFees(CompetitiveandNegotiated)Thecompensationscheduleforcompetitiveandnegotiatedsalesoflong-termfinancingswillbebilledatclosingasfollows:Forfinancingupto$20million:$1.50per$1,000,witha$20,000minimumForfinancingupto$75million:$30,000plus$0.75per$1,000over$20millionInterimfinancingorbankplacementsmaybesubjecttoareducedfee,basedonthespecificservicesrequired.Shouldafinancingbecommencedbutnotcompletedforanyreason,PFMwillbecompensatedforservicesprovided,basedonthehourlyratesstatedbelow,whichinnocasewillexceed75°ooftheFinancingServicesfeesetforthabove.2.HourlyProjectFees(Non-TransactionRelated)IntheeventtheClientrequeststhatPFMperformsignißcantspecialprojects(capitalplanning,creationofnewfinancingprogramsliketheinstallmentsaleconcept,etc.),feeswillbenegotiatedinadvanceoftheprojectgenerallybaseduponthefollowinghourlyratesfortheindicatedlevelsofexperienceortheirequivalentswillapply.Additionally,intheeventafinancingisstarted,butcancelledattheClient'srequest,accruedtimewillbebilledasfollows:ExperienceLevelHourlyRateManagingDirector/Director$305SeniorManagingConsultant$295SeniorAnalyst$225Analyst$195Associate$175Foreachcontractyearfollowingtheinitialcontractterm(each,individually,a"SubsequentContractYear"),hourlyratesmaybeincreasedbytherateofCPI-U,subjecttotheapprovaloftheClient.3.RetainerForgeneraladvicebetweenfinancings,PFMshallreceiveanannualfeeintheamountof$4,000("Retainer"),payableinquarterlyinstallmentsof$1,000.TheRetainershallbereviewedandreviseduponmutualagreement.9 EXHIBITCINSURANCEPFMFinancialAdvisorsLLC("PFM")hasacompleteinsuranceprogram,includingproperty,casualty,comprehensivegeneralliability,automobileliabilityandworkerscompensation.PFMmaintainsprofessionalliabilityandfidelitybondcoverageswhichtotal$25millionand$10million,respectively.PFMalsocarriesa$2millioncyberliabilitypolicy.OurProfessionalLiabilitypolicyisa"claimsmade"policyandourGeneralLiabilitypolicyclaimswouldbemadebyoccurrence.Deductibles/SIR:Automobile$250comprehensive&$500collisionCyber-Liability$50,000GeneralLiability$0ProfessionalLiability(E&O)$1,000,000FinancialInstitutionBond$75,000InsuranceCompany&AMBestRatingProfessionalLiability(E&O):EnduranceAmericanSpecialtyInsurance;(A:XV)XLSpecialtyInsuranceCompany;(A:XV)ContinentalCasualtyCompany,(A:XV)StartIndemnity&LiabilityCompany;(A:XIV)FinancialInstitutionBond:FederalInsuranceCompany;(A++/XV)CyberLiability:IndianHarborInsuranceCompany(A)GeneralLiability:GreatNorthernIns.Company;(A++/XV)AutomobileLiability:FederalInsuranceCompany;(A++/XV)Excess/UmbrellaLiability:FederalInsuranceCompany;(A++/XV)WorkersCompensation&EmployersLiabilityPacificIndemnityCompany;(A++/XV)10