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AGREEMENT
CITY OF FRESNO, CALIFORNIA
CONSULTANT SERVICES (FINANCIAL ADVISORY SERVICES)
THIS AGREEMENT is made and entered into effective the 1st day of March 2021, by and between
the CITY OF FRESNO, a California municipal corporation (CITY), and KNN Public Finance, a limited-
liability company (CONSULTANT).
RECITALS
WHEREAS, CITY desires to obtain professional financial advisory services for the City (Project),
and
WHEREAS, CONSULTANT is engaged in the business of furnishing services as an independent
registered municipal advisor and hereby represents that it desires to and is professionally and legally
capable of performing the services called for by this Agreement; and
WHEREAS, CONSULTANT acknowledges that this Agreement is subject to the requirements of
Fresno Municipal Code Section 4-107 and Administrative Order No. 6-19; and
WHEREAS, this Agreement will be administered for CITY by its Controller (Administrator) or
designee.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing and of the covenants, conditions, and
premises hereinafter contained to be kept and performed by the respective parties, it is mutually agreed
as follows:
1. Scope of Services. CONSULTANT shall perform to the satisfaction of CITY the services
described in Exhibit A, including all work incidental to, or necessary to perform, such services even
though not specifically described in Exhibit A.
2. Term of Agreement and Time for Performance. This Agreement shall be effective from the
date first set forth above ("Effective Date") and shall continue in full force and effect through February 28,
2026, subject to any earlier termination in accordance with this Agreement. The services of
CONSULTANT as described in Exhibit A are to commence upon the Effective Date and shall be
completed in a sequence assuring expeditious completion, but in any event, all such services shall be
completed prior to expiration of this Agreement and in accordance with any performance schedule set
forth in Exhibit A.
3. Compensation.
(a) CONSULTANT'S sole compensation for satisfactory performance of all services
required or rendered pursuant to this Agreement shall be a total fee of$425,000. Such fee includes all
expenses incurred by CONSULTANT in performance of the services.
(b) Detailed statements shall be rendered monthly for services performed in the
preceding month and will be payable in the normal course of CITY business.
(c) The parties may modify this Agreement to increase or decrease the scope of
services or provide for the rendition of services not required by this Agreement, which modification shall
include an adjustment to CONSULTANT'S compensation. Any change in the scope of services must be
made by written amendment to the Agreement signed by an authorized representative for each party.
CONSULTANT shall not be entitled to any additional compensation if services are performed prior to a
signed written amendment.
PAGE 1
4. Termination Remedies and Force Maieure.
(a) This Agreement shall terminate without any liability of CITY to CONSULTANT upon
the earlier of: (i) CONSULTANT'S filing for protection under the federal bankruptcy laws, or any
bankruptcy petition or petition for receiver commenced by a third party against CONSULTANT; (ii) 7
calendar days prior written notice with or without cause by CITY to CONSULTANT; (iii) CITY'S non-
appropriation of funds sufficient to meet its obligations hereunder during any CITY fiscal year of this
Agreement, or insufficient funding for the Project; or (iv) expiration of this Agreement.
(b) Immediately upon any termination or expiration of this Agreement, CONSULTANT
shall (i) immediately stop all work hereunder; (ii) immediately cause any and all of its subcontractors to
cease work; and (iii) return to CITY any and all unearned payments and all properties and materials in the
possession of CONSULTANT that are owned by CITY. Subject to the terms of this Agreement,
CONSULTANT shall be paid compensation for services satisfactorily performed prior to the effective date
of termination. CONSULTANT shall not be paid for any work or services performed or costs incurred
which reasonably could have been avoided.
(c) In the event of termination due to failure of CONSULTANT to satisfactorily perform in
accordance with the terms of this Agreement, CITY may withhold an amount that would otherwise be
payable as an offset to, but not in excess of, CITY'S damages caused by such failure. In no event shall
any payment by CITY pursuant to this Agreement constitute a waiver by CITY of any breach of this
Agreement which may then exist on the part of CONSULTANT, nor shall such payment impair or
prejudice any remedy available to CITY with respect to the breach.
(d) Upon any breach of this Agreement by CONSULTANT, CITY may (i) exercise any
right, remedy (in contract, law or equity), or privilege which may be available to it under applicable laws of
the State of California or any other applicable law; (ii) proceed by appropriate court action to enforce the
terms of the Agreement; and/or (iii) recover all direct, indirect, consequential, economic and incidental
damages for the breach of the Agreement. If it is determined that CITY improperly terminated this
Agreement for default, such termination shall be deemed a termination for convenience.
(e) CONSULTANT shall provide CITY with adequate written assurances of future
performance, upon Administrator's request, in the event CONSULTANT fails to comply with any terms or
conditions of this Agreement.
(f) CONSULTANT shall be liable for default unless nonperformance is caused by an
occurrence beyond the reasonable control of CONSULTANT and without its fault or negligence such as,
acts of God or the public enemy, acts of CITY in its contractual capacity, fires, floods, epidemics,
quarantine restrictions, strikes, unusually severe weather, and delays of common carriers.
CONSULTANT shall notify Administrator in writing as soon as it is reasonably possible after the
commencement of any excusable delay, setting forth the full particulars in connection therewith, and shall
remedy such occurrence with all reasonable dispatch, and shall promptly give written notice to
Administrator of the cessation of such occurrence.
5. Confidential Information and Ownership of Documents.
(a) Any reports, information, or other data prepared or assembled by CONSULTANT
pursuant to this Agreement shall not be made available to any individual or organization by
CONSULTANT without the prior written approval of the Administrator. During the term of this Agreement,
and thereafter, CONSULTANT shall not, without the prior written consent of CITY, disclose to anyone any
Confidential Information. The term "Confidential Information" for the purposes of this Agreement shall
include all proprietary and confidential information of CITY, including but not limited to business plans,
marketing plans, financial information, materials, compilations, documents, instruments, models, source
PAGE 2
or object codes and other information disclosed or submitted, orally, in writing, or by any other medium or
media. All Confidential Information shall be and remain confidential and proprietary in CITY.
(b) Any and all writings and documents prepared or provided by CONSULTANT
pursuant to this Agreement are the property of CITY at the time of preparation and shall be turned over to
CITY upon expiration or termination of the Agreement. CONSULTANT shall not permit the reproduction
or use thereof by any other person except as otherwise expressly provided herein.
(c) If CONSULTANT should subcontract all or any portion of the services to be
performed under this Agreement, CONSULTANT shall cause each subcontractor to also comply with the
requirements of this Section 5.
(d) This Section 5 shall survive expiration or termination of this Agreement.
6. Professional Skill. It is further mutually understood and agreed by and between the parties
hereto that inasmuch as CONSULTANT represents to CITY that CONSULTANT and its subcontractors, if
any, are skilled in the profession and shall perform in accordance with the standards of said profession
necessary to perform the services agreed to be done by it under this Agreement, CITY relies upon the
skill of CONSULTANT and any subcontractors to do and perform such services in a skillful manner and
CONSULTANT agrees to thus perform the services and require the same of any subcontractors.
Therefore, any acceptance of such services by CITY shall not operate as a release of CONSULTANT or
any subcontractors from said professional standards.
7. Indemnification. To the furthest extent allowed by law, CONSULTANT shall indemnify, hold
harmless and defend CITY and each of its officers, officials, employees, agents, and volunteers from any
and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in contract, tort or strict
liability, including but not limited to personal injury, death at any time and property damage), and from any
and all claims, demands and actions in law or equity (including reasonable attorney's fees and litigation
expenses) that arise out of, pertain to, or relate to the negligence, recklessness or willful misconduct of
CONSULTANT, its principals, officers, employees, agents, or volunteers in the performance of this
Agreement.
If CONSULTANT should subcontract all or any portion of the services to be performed under this
Agreement, CONSULTANT shall require each subcontractor to indemnify, hold harmless and defend
CITY and each of its officers, officials, employees, agents, and volunteers in accordance with the terms of
the preceding paragraph.
This section shall survive termination or expiration of this Agreement.
8. Insurance.
(a) Throughout the life of this Agreement, CONSULTANT shall pay for and maintain in
full force and effect all insurance as required in Exhibit B, which is incorporated into and part of this
Agreement, with an insurance company(ies)either(i) admitted by the California Insurance Commissioner
to do business in the State of California and rated no less than "A-VII" in the Best's Insurance Rating
Guide, or(ii) as may be authorized in writing by CITY'S Risk Manager or designee at any time and in its
sole discretion. The required policies of insurance as stated in Exhibit B shall maintain limits of liability of
not less than those amounts stated therein. However, the insurance limits available to CITY, its officers,
officials, employees, agents, and volunteers as additional insureds, shall be the greater of the minimum
limits specified therein or the full limit of any insurance proceeds to the named insured.
(b) If at any time during the life of the Agreement or any extension, CONSULTANT or
any of its subcontractors/sub-consultants fail to maintain any required insurance in full force and effect, all
services and work under this Agreement shall be discontinued immediately, and all payments due or that
PAGE 3
become due to CONSULTANT shall be withheld until notice is received by CITY that the required
insurance has been restored to full force and effect and that the premiums therefore have been paid for a
period satisfactory to CITY. Any failure to maintain the required insurance shall be sufficient cause for
CITY to terminate this Agreement. No action taken by CITY pursuant to this section shall in any way
relieve CONSULTANT of its responsibilities under this Agreement. The phrase "fail to maintain any
required insurance" shall include, without limitation, notification received by CITY that an insurer has
commenced proceedings, or has had proceedings commenced against it, indicating that the insurer is
insolvent.
(c) The fact that insurance is obtained by CONSULTANT shall not be deemed to release
or diminish the liability of CONSULTANT, including, without limitation, liability under the indemnity
provisions of this Agreement. The duty to indemnify CITY shall apply to all claims and liability regardless
of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the
amount of indemnification to be provided by CONSULTANT. Approval or purchase of any insurance
contracts or policies shall in no way relieve from liability nor limit the liability of CONSULTANT, its
principals, officers, agents, employees, persons under the supervision of CONSULTANT, vendors,
suppliers, invitees, consultants, sub-consultants, subcontractors, or anyone employed directly or indirectly
by any of them.
(d) If CONSULTANT should subcontract all or any portion of the services to be
performed under this Agreement, CONSULTANT shall require each subcontractor/sub-consultant to
provide insurance protection, as an additional insured, to the CITY and each of its officers, officials,
employees, agents, and volunteers in accordance with the terms of this section, except that any required
certificates and applicable endorsements shall be on file with CONSULTANT and CITY prior to the
commencement of any services by the subcontractor. CONSULTANT and any subcontractor/sub-
consultant shall establish additional insured status for CITY, its officers, officials, employees, agents, and
volunteers by using Insurance Service Office (ISO) Form CG 20 10 11 85 or both CG 20 10 10 01 and
CG 20 37 10 01 or by an executed manuscript company endorsement providing additional insured status
as broad as that contained in ISO Form CG 20 10 11 85.
9. Conflict of Interest and Non-Solicitation.
(a) Prior to CITY'S execution of this Agreement, CONSULTANT shall complete a City of
Fresno conflict of interest disclosure statement in the form as set forth in Exhibit C. During the term of
this Agreement, CONSULTANT shall have the obligation and duty to immediately notify CITY in writing of
any change to the information provided by CONSULTANT in such statement.
(b) CONSULTANT shall comply, and require its subcontractors to comply, with all
applicable(i) professional canons and requirements governing avoidance of impermissible client conflicts;
and (ii) federal, state and local conflict of interest laws and regulations including, without limitation,
California Government Code Section 1090 et. seq., the California Political Reform Act (California
Government Code Section 87100 et. seq.) and the regulations of the Fair Political Practices Commission
concerning disclosure and disqualification (2 California Code of Regulations Section 18700 et. seq.). At
any time, upon written request of CITY, CONSULTANT shall provide a written opinion of its legal counsel
and that of any subcontractor that, after a due diligent inquiry, CONSULTANT and the respective
subcontractor(s) are in full compliance with all laws and regulations. CONSULTANT shall take, and
require its subcontractors to take, reasonable steps to avoid any appearance of a conflict of interest.
Upon discovery of any facts giving rise to the appearance of a conflict of interest, CONSULTANT shall
immediately notify CITY of these facts in writing.
(c) In performing the work or services to be provided hereunder, CONSULTANT shall
not employ or retain the services of any person while such person either is employed by CITY or is a
PAGE 4
member of any CITY council, commission, board, committee, or similar CITY body. This requirement
may be waived in writing by the City Manager, if no actual or potential conflict is involved.
(d) CONSULTANT represents and warrants that it has not paid or agreed to pay any
compensation, contingent or otherwise, direct or indirect, to solicit or procure this Agreement or any
rights/benefits hereunder.
(e) Neither CONSULTANT, nor any of CONSULTANT'S subcontractors performing any
services on this Project, shall bid for, assist anyone in the preparation of a bid for, or perform any services
pursuant to, any other contract in connection with this Project unless fully disclosed to and approved by
the City Manager, in advance and in writing. CONSULTANT and any of its subcontractors shall have no
interest, direct or indirect, in any other contract with a third party in connection with this Project unless
such interest is in accordance with all applicable law and fully disclosed to and approved by the City
Manager, in advance and in writing. Notwithstanding any approval given by the City Manager under this
provision, CONSULTANT shall remain responsible for complying with Section 9(b), above.
(f) If CONSULTANT should subcontract all or any portion of the work to be performed or
services to be provided under this Agreement, CONSULTANT shall include the provisions of this Section
9 in each subcontract and require its subcontractors to comply therewith.
(g) This Section 9 shall survive expiration or termination of this Agreement.
10. Recycfing Program. In the event CONSULTANT maintains an office or operates a
facility(ies), or is required herein to maintain or operate same, within the incorporated limits of the City of
Fresno, CONSULTANT at its sole cost and expense shall:
(i) Immediately establish and maintain a viable and ongoing recycling program, approved by
CITY'S Solid Waste Management Division, for each office and facility. Literature describing
CITY recycling programs is available from CITY'S Solid Waste Management Division and
by calling City of Fresno Recycling Hotline at (559) 621-1111.
(ii) Immediately contact CITY'S Solid Waste Management Division at (559) 621-1452 and
schedule a free waste audit, and cooperate with such Division in their conduct of the audit
for each office and facility.
(iii) Cooperate with and demonstrate to the satisfaction of CITY'S Solid Waste Management
Division the establishment of the recycling program in paragraph (i) above and the ongoing
maintenance thereof.
11. General Terms.
(a) Except as otherwise provided by law, all notices expressly required of CITY within
the body of this Agreement, and not otherwise specifically provided for, shall be effective only if signed by
the Administrator or designee.
(b) Records of CONSULTANT'S expenses pertaining to the Project shall be kept on a
generally recognized accounting basis and shall be available to CITY or its authorized representatives
upon request during regular business hours throughout the life of this Agreement and for a period of three
years after final payment or, if longer, for any period required by law. In addition, all books, documents,
papers, and records of CONSULTANT pertaining to the Project shall be available for the purpose of
making audits, examinations, excerpts, and transcriptions for the same period of time. If any litigation,
claim, negotiations, audit or other action is commenced before the expiration of said time period, all
records shall be retained and made available to CITY until such action is resolved, or until the end of said
time period whichever shall later occur. If CONSULTANT should subcontract all or any portion of the
services to be performed under this Agreement, CONSULTANT shall cause each subcontractor to also
PAGE 5
comply with the requirements of this paragraph. This Section 11(b)shall survive expiration or termination
of this Agreement.
(c) Prior to execution of this Agreement by CITY, CONSULTANT shall have provided
evidence to CITY that CONSULTANT is licensed to perform the services called for by this Agreement(or
that no license is required). If CONSULTANT should subcontract all or any portion of the work or
services to be performed under this Agreement, CONSULTANT shall require each subcontractor to
provide evidence to CITY that subcontractor is licensed to perform the services called for by this
Agreement (or that no license is required) before beginning work.
12. Nondiscrimination. To the extent required by controlling federal, state and local law,
CONSULTANT shall not employ discriminatory practices in the provision of services, employment of
personnel, or in any other respect on the basis of race, religious creed, color, national origin, ancestry,
physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation,
ethnicity, status as a disabled veteran or veteran of the Vietnam era. Subject to the foregoing and during
the performance of this Agreement, CONSULTANT agrees as follows:
(a) CONSULTANT will comply with all applicable laws and regulations providing that no
person shall, on the grounds of race, religious creed, color, national origin, ancestry, physical disability,
mental disability, medical condition, marital status, sex, age, sexual orientation, ethnicity, status as a
disabled veteran or veteran of the Vietnam era be excluded from participation in, be denied the benefits
of, or be subject to discrimination under any program or activity made possible by or resulting from this
Agreement.
(b) CONSULTANT will not discriminate against any employee or applicant for
employment because of race, religious creed, color, national origin, ancestry, physical disability, mental
disability, medical condition, marital status, sex, age, sexual orientation, ethnicity, status as a disabled
veteran or veteran of the Vietnam era. CONSULTANT shall ensure that applicants are employed, and
the employees are treated during employment, without regard to their race, religious creed, color, national
origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual
orientation, ethnicity, status as a disabled veteran or veteran of the Vietnam era. Such requirement shall
apply to CONSULTANT'S employment practices including, but not be limited to, the following:
employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination;
rates of pay or other forms of compensation; and selection for training, including apprenticeship.
CONSULTANT agrees to post in conspicuous places, available to employees and applicants for
employment, notices setting forth the provision of this nondiscrimination clause.
(c) CONSULTANT will, in all solicitations or advertisements for employees placed by or
on behalf of CONSULTANT in pursuit hereof, state that all qualified applicants will receive consideration
for employment without regard to race, religious creed, color, national origin, ancestry, physical disability,
mental disability, medical condition, marital status, sex, age, sexual orientation, ethnicity, status as a
disabled veteran or veteran of the Vietnam era.
(d) CONSULTANT will send to each labor union or representative of workers with which
it has a collective bargaining agreement or other contract or understanding, a notice advising such labor
union or workers' representatives of CONSULTANT'S commitment under this section and shall post
copies of the notice in conspicuous places available to employees and applicants for employment.
(e) If CONSULTANT should subcontract all or any portion of the services to be
performed under this Agreement, CONSULTANT shall cause each subcontractor to also comply with the
requirements of this Section 12.
PAGE 6
13. Independent Contractor.
(a) In the furnishing of the services provided for herein, CONSULTANT is acting solely
as an independent contractor. Neither CONSULTANT, nor any of its officers, agents, or employees shall
be deemed an officer, agent, employee, joint venturer, partner or associate of CITY for any purpose.
CITY shall have no right to control or supervise or direct the manner or method by which CONSULTANT
shall perform its work and functions. However, CITY shall retain the right to administer this Agreement so
as to verify that CONSULTANT is performing its obligations in accordance with the terms and conditions
thereof.
(b) This Agreement does not evidence a partnership or joint venture between
CONSULTANT and CITY. CONSULTANT shall have no authority to bind CITY absent CITY'S express
written consent. Except to the extent otherwise provided in this Agreement, CONSULTANT shall bear its
own costs and expenses in pursuit thereof.
(c) Because of its status as an independent contractor, CONSULTANT and its officers,
agents, and employees shall have absolutely no right to employment rights and benefits available to CITY
employees. CONSULTANT shall be solely liable and responsible for all payroll and tax withholding and
for providing to, or on behalf of, its employees all employee benefits including, without limitation, health,
welfare and retirement benefits. In addition, together with its other obligations under this Agreement,
CONSULTANT shall be solely responsible, indemnify, defend and save CITY harmless from all matters
relating to employment and tax withholding for and payment of CONSULTANT'S employees, including,
without limitation, (i)compliance with Social Security and unemployment insurance withholding, payment
of workers' compensation benefits, and all other laws and regulations governing matters of employee
withholding, taxes and payment; and (ii) any claim of right or interest in CITY employment benefits,
entitlements, programs and/or funds offered employees of CITY whether arising by reason of any
common law, de facto, leased, or co-employee rights or other theory. It is acknowledged that during the
term of this Agreement, CONSULTANT may be providing services to others unrelated to CITY or to this
Agreement.
14. Notices. Any notice required or intended to be given to either party under the terms of this
Agreement shall be in writing and shall be deemed to be duly given if delivered personally, transmitted by
facsimile followed by telephone confirmation of receipt, or sent by United States registered or certified
mail, with postage prepaid, return receipt requested, addressed to the party to which notice is to be given
at the party's address set forth on the signature page of this Agreement or at such other address as the
parties may from time to time designate by written notice. Notices served by United States mail in the
manner above described shall be deemed sufficiently served or given at the time of the mailing thereof.
15. Binding. Subject to Section 16, below, once this Agreement is signed by all parties, it shall
be binding upon, and shall inure to the benefit of, all parties, and each parties' respective heirs,
successors, assigns, transferees, agents, servants, employees, and representatives.
16. Assignment.
(a) This Agreement is personal to CONSULTANT and there shall be no assignment by
CONSULTANT of its rights or obligations under this Agreement without the prior written approval of the
City Manager or designee. Any attempted assignment by CONSULTANT, its successors or assigns,
shall be null and void unless approved in writing by the City Manager or designee.
(b) CONSULTANT hereby agrees not to assign the payment of any monies due
CONSULTANT from CITY under the terms of this Agreement to any other individual(s), corporation(s) or
entity(ies). CITY retains the right to pay any and all monies due CONSULTANT directly to
CONSULTANT.
PAGE 7
17. Compliance With Law. In providing the services required under this Agreement,
CONSULTANT shall at all times comply with all applicable laws of the United States, the State of
California and CITY, and with all applicable regulations promulgated by federal, state, regional, or local
administrative and regulatory agencies, now in force and as they may be enacted, issued, or amended
during the term of this Agreement.
18. Waiver. The waiver by either party of a breach by the other of any provision of this
Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach of either the
same or a different provision of this Agreement. No provisions of this Agreement may be waived unless
in writing and signed by all parties to this Agreement. Waiver of any one provision herein shall not be
deemed to be a waiver of any other provision herein.
19. Governing Law and Venue. This Agreement shall be governed by, and construed and
enforced in accordance with, the laws of the State of California, excluding, however, any conflict of laws
rule which would apply the law of another jurisdiction. Venue for purposes of the filing of any action
regarding the enforcement or interpretation of this Agreement and any rights and duties hereunder shall
be Fresno County, California.
20. Headings. The section headings in this Agreement are for convenience and reference only
and shall not be construed or held in any way to explain, modify or add to the interpretation or meaning of
the provisions of this Agreement.
21. Severability. The provisions of this Agreement are severable. The invalidity, or
unenforceability of any one provision in this Agreement shall not affect the other provisions.
22. Interpretation. The parties acknowledge that this Agreement in its final form is the result of
the combined efforts of the parties and that, should any provision of this Agreement be found to be
ambiguous in any way, such ambiguity shall not be resolved by construing this Agreement in favor of or
against either party, but rather by construing the terms in accordance with their generally accepted
meaning.
23. Attorney's Fees. If either party is required to commence any proceeding or legal action to
enforce or interpret any term, covenant or condition of this Agreement, the prevailing party in such
proceeding or action shall be entitled to recover from the other party its reasonable attorney's fees and
legal expenses.
24. Exhibits. Each exhibit and attachment referenced in this Agreement is, by the reference,
incorporated into and made a part of this Agreement.
25. Precedence of Documents. In the event of any conflict between the body of this Agreement
and any exhibit or attachment hereto, the terms and conditions of the body of this Agreement shall control
and take precedence over the terms and conditions expressed within the exhibit or attachment.
Furthermore, any terms or conditions contained within any exhibit or attachment hereto which purport to
modify the allocation of risk between the parties, provided for within the body of this Agreement, shall be
null and void.
26. Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but
shall, wherever possible, be cumulative with all other remedies at law or in equity.
27. No Third Party Beneficiaries. The rights, interests, duties and obligations defined within this
Agreement are intended for the specific parties hereto as identified in the preamble of this Agreement.
Notwithstanding anything stated to the contrary in this Agreement, it is not intended that any rights or
interests in this Agreement benefit or flow to the interest of any third parties.
28. Extent of Agreement. Each party acknowledges that they have read and fully understand
PAGE 8
the contents of this Agreement. This Agreement represents the entire and integrated agreement between
the parties with respect to the subject matter hereof and supersedes all prior negotiations,
representations or agreements, either written or oral. This Agreement may be modified only by written
instrument duly authorized and executed by both CITY and CONSULTANT.
[Signatures follow on the next page.]
PAGE 9
IN WITNESS WHEREOF,the parties have executed this Agreement at Fresno, California,the day
and year first above written.
KNN Public Finance,
CITY OF FRESNO, A Limited bility ny
a Calif rnia municip cor oration
771 By:
By: I,;,
Wc'haref Lima, ontroller Name: ,, ly//)
Finance Department
Title:
ATTEST: (If corporation or LLC., Board Chair, Pres. or
YVONNE SPENCE, CRM, MMC Vice Pres.)
City Clerk
By:
By:
Name:
Deputy ut� M Cr t```��
3 I rt 120 z� Title:
(If corporation or L C., CFO, Treasurer, Secretary
No signature of City Attorney required. or Assistant Secrets l
Standard Document#ALL-S 3.0 has been used
without modification, as certified by Any Applicable Professional License:
the undersigned. Number:
Name:
By: /�1 /'' ' '� l Date of Issuance:
Phillip Hardcastle
Principal Accountant
Addresses:
CONSULTANT:
CITY: KNN Public Finance
City of Fresno Attention: David Brodsly,
Attention: Michael Lima, Controller Managing Director
2600 Fresno Street, Suite 2156 2054 University Avenue, Suite 300
Fresno, CA 93721 Berkeley, CA 94704
Phone: (559) 621-7001 Phone: (510) 208-8205
FAX: (559) 488-4636 FAX: (510) 208-8282
Attachments:
1. Exhibit A - Scope of Services
2. Exhibit B - Insurance Requirements
3. Exhibit C - Conflict of Interest Disclosure Form
PAGE 10
IN WITNESS WHEREOF,the parties have executed this Agreement at Fresno,California,the day
and year first above written.
KNN Put
CITY OF FRESNO, A Limitompany
a California municipal corporation
By:_Michael Lima, Controller By'
Finance Department Name: Nedko Nedev
ATTEST: Title: Vice President
YVONNE SPENCE, CRM, MMC (ff corparation cr UC.. Boa Chair, Pres. or
City Clerk Vic res.)
By:. Deputy By
No signature of City Attorney required_ Name: David Brodsly
Standard Document#ALL-S 3.0 has been used
without modification, as certified by Title: Mani!aging Director and authorized bank
the undersigned. si nata
(if corporation or LLC.,CFO,Treasurer. Secretary
o
By:. Phillip Hardcastle r Assistant Secretary)
Principal Accountant Any Applicable Professional License:
Addresses: Number:
Name:
CITY: Date of Issuance:
City of Fresno
Attention: Michael Lima, Controller
2600 Fresno Street, Suite 2156
Fresno, CA 93721 CONSULTANT:
Phone: (559) 621-7001 KNN Public Finance
FAX: (559)488-4636 Attention: David Brodsly,
Managing Director
2054 University Avenue, Suite 300
Berkeley, CA 94704
Phone: (510) 208-8205
FAX: (510)208-8282
Attachments:
1. Exhibit A- Scope of Services
2. Exhibit B- Insurance Requirements
3_ Exhibit C - Conflict of Interest Disclosure Form
PAGE 11
WRITTEN CONSENT
OF THE MANAGING MEMBER OF
K-NN PUBLIC FINANCE, LLC
The undersigned,being the managing member of KNN PUBLIC FINANCE, LLC, a
California limited liability company("Company"), acting pursuant to the provisions of the
Company's Operating Agreement and the California Revised Uniform Limited Liability
Company Act, hereby consents to and adopts the following resolution:
SIGNING AUTHORITY
RESOLVED, all Company employees with the titles of Vice President,Director or
Managing Director are hereby authorized to execute such documents as are necessary
or appropriate to bind the company to its clients and prospective clients, including
without limitation, responses to municipal requests for proposal.
Date: �, /z Z-O.,
I
DAVIb LEIFER, Managing ember
Exhibit A
SCOPE OF SERVICES
Consultant Service Agreement between City of Fresno
and KNN Public Finance
FINANCIAL ADVISORY SERVICES
Contractor will provide financial advisory services to City including, but not necessarily limited to, the
following:
(a) Assist the City in developing a plan of finance for Projects as such needs arise.
(b) In the event City elects to proceed with the financing or refinancing of a Project, Contractor will
serve in the capacity of financial advisor, Contractor will coordinate the efforts and maintain a
financing schedule of the various activities and responsibilities of the financing team in the
preparation and approval of financing documents and the official statement. Contractor will review
and comment on all such documents. Contractor will assist City, to the extent such assistance is
so requested, in selecting members of the financing team. Contractor will attend all meetings and
assist staff with any presentations or meetings as needed.
(c) Contractor will review and comment upon the official statement to be prepared by disclosure,
underwriter's or other counsel, participate in due diligence discussions with City and financing
team members, and assist City in meeting its responsibilities for disclosure in a manner consistent
with existing laws, regulations and standards of the securities industry.
(d) Contractor will prepare or assist in the preparation of a comprehensive package for presentation to
one or more rating agencies and insurers, and coordinate the ratings and insurance review
process.
(e) Contractor will assist in assessing market conditions, including the effect of market conditions on
the advisability of a forward delivery transaction, the timing of any transaction, and the structuring
of any transaction. Contractor will assist the City in determining the method of sale.
(f) Should the City elect to offer its securities through public sale, the Contractor will:
(1) distribute the official notice of sale and bid form, along with the preliminary official
statement, to prospective underwriters,
(2) actively solicit their bids,
(3) respond to bidder and investor questions regarding the financing,
(4) coordinate publication of notices of sale,
(5) coordinate the bid opening process, and
(6) calculate the net interest cost of each bid received to determine the lowest bidder.
PAGE 11
(g) Should the City elect to offer its securities through negotiated sale, Contractor will:
(1) Develop a Request for Proposal for Underwriter services consistent with City's laws
and policies, if necessary, including scope of services and selection criteria and assist City in selection
and rationale.
(2) Review the underwriter's proposed sizing and tax increment assumptions.
(3) Review the underwriter's marketing plan, proposed priority of orders, and bond
structure, and provide comments regarding the reasonableness of each element of the underwriter's
proposal and any recommendations as to modifying that proposal.
(4) Prepare our own survey of comparable transactions. Identify market conditions and
comparable interest rates and underwriting fees during the pre-pricing and pricing periods.
(5) Review and comment on proposed interest rate scales, underwriting spreads, bond types,
interest rate coupon structure and other pricing-related matters proposed by the underwriter during the
pre-pricing period. For example, because premium couponing has become common in the institutional
market as a hedge against rising interest rates, carefully examine the benefits to the issuer of accepting
potentially higher interest rates to maturity in exchange for lower rates to the call and the resulting
improved market reception.
(6) Monitor the pricing and the underwriter's performance during the pricing and order period
and advise City as to the appropriateness of the pricing.
(7) Review the Bond Purchase Contract that City must sign and execute.
(8) Confirm savings achieved by a refunding, if any.
(9) Review the final results of the sale, including any final report prepared by the underwriter,
and provide written comments and any recommendations to City as appropriate.
(h) Contractor will coordinate the efforts of all members of the financing team to ensure the timely sale
and closing of the proposed issue. Contractor will also coordinate delivery, printing and final
approval of legal documents, bonds and the final official statement.
(i) Contractor will prepare post-closing analysis of transactions, which includes the appropriate
financial analysis, summarizes market conditions at the time of sale, and provides any schedules
or other information appropriate for assisting in its administration of the transaction.
(J� Contractor will assist the City in complying with disclosure requirements, including working with
Disclosure Counsel to draft disclosure statements.
(k) For additional compensation, Contractor will provide additional financial advisory services to City,
not included in Scope of Services, as City requests and upon written amendment to this
Agreement. Such services may include studies, financial strategies, consulting or other advisory
services agreed to in writing between the parties of this Agreement.
PAGE 12
Exhibit B
INSURANCE REQUIREMENTS
Consultant Service Agreement between City of Fresno (CITY)
and (CONSULTANT)
]-Project Title]
MINIMUM SCOPE OF INSURANCE
Coverage shall be at least as broad as:
1. The most current version of Insurance Services Office (ISO) Commercial General Liability
Coverage Form CG 00 01, providing liability coverage arising out of your business
operations. The Commercial General Liability policy shall be written on an occurrence form
and shall provide coverage for "bodily injury," "property damage" and "personal and
advertising injury" with coverage for premises and operations (including the use of owned
and non-owned equipment), products and completed operations, and contractual liability
(including, without limitation, indemnity obligations under the Agreement) with limits of
liability not less than those set forth under "Minimum Limits of Insurance."
2. The most current version of ISO *Commercial Auto Coverage Form CA 00 01, providing
liability coverage arising out of the ownership, maintenance or use of automobiles in the
course of your business operations. The Automobile Policy shall be written on an
occurrence form and shall provide coverage for all owned, hired, and non-owned
automobiles or other licensed vehicles (Code 1- Any Auto). If personal automobile
coverage is used, the CITY, its officers, officials, employees, agent,s and volunteers are to
be listed as additional insureds.
3. Workers' Compensation insurance as required by the State of California and Employer's
Liability Insurance.
4. Professional Liability (Errors and Omissions) insurance appropriate to CONSULTANT'S
profession. Architect's and engineer's coverage is to be endorsed to include contractual
liability.
MINIMUM LIMITS OF INSURANCE
CONSULTANT, or any party the CONSULTANT subcontracts with, shall maintain limits of liability of not
less than those set forth below. However, insurance limits available to CITY, its officers, officials,
employees, agents, and volunteers as additional insureds, shall be the greater of the minimum limits
specified herein or the full limit of any insurance proceeds available to the named insured:
1. COMMERCIAL GENERAL LIABILITY:
(i) $1,000,000 per occurrence for bodily injury and property damage,
(ii) $1,000,000 per occurrence for personal and advertising injury;
(iii) $2,000,000 aggregate for products and completed operations; and,
(iv) $2,000,000 general aggregate applying separately to the work performed under the
Agreement.
2, COMMERCIAL AUTOMOBILE LIABILITY:
$1,000,000 per accident for bodily injury and property damage.
PAGE 13
3. WORKERS' COMPENSATION INSURANCE as required by the State of California with
statutory limits.
4. EMPLOYER'S LIABILITY:
(i) $1,000,000 each accident for bodily injury;
(ii) $1,000,000 disease each employee, and,
(iii) $1,000,000 disease policy limit.
5. PROFESSIONAL LIABILITY (Errors and Omissions):
(i) $1,000,000 per claim/occurrence; and,
(ii) $2,000,000 policy aggregate.
UMBRELLA OR EXCESS INSURANCE
In the event CONSULTANT purchases an Umbrella or Excess insurance policy(ies) to meet the
"Minimum Limits of Insurance," this insurance policy(ies) shall "follow form" and afford no less coverage
than the primary insurance policy(ies). In addition, such Umbrella or Excess insurance policy(ies) shall
also apply on a primary and non-contributory basis for the benefit of the CITY, its officers, officials,
employees, agents, and volunteers.
DEDUCTIBLES AND SELF-INSURED RETENTIONS
CONSULTANT shall be responsible for payment of any deductibles contained in any insurance policy(ies)
required herein and CONSULTANT shall also be responsible for payment of any self-insured retentions.
Any deductibles or self-insured retentions must be declared to on the Certificate of Insurance, and
approved by, the CITY'S Risk Manager or designee. At the option of the CITY'S Risk Manager or
designee, either:
(i) The insurer shall reduce or eliminate such deductibles or self-insured retentions as
respects CITY, its officers, officials, employees, agents, and volunteers; or
(ii) CONSULTANT shall provide a financial guarantee, satisfactory to CITY'S Risk
Manager or designee, guaranteeing payment of losses and related investigations,
claim administration and defense expenses. At no time shall CITY be responsible
for the payment of any deductibles or self-insured retentions.
OTHER INSURANCE PROVISIONS/ENDORSEMENTS
The General Liability and Automobile Liability insurance policies are to contain, or be endorsed to contain,
the following provisions:
1. CITY, its officers, officials, employees, agents, and volunteers are to be covered as
additional insureds. CONSULTANT shall establish additional insured status for the City and
for all ongoing and completed operations by use of ISO Form CG 20 10 11 85 or both
CG 20 10 10 01 and CG 20 37 10 01 or by an executed manuscript insurance company
endorsement providing additional insured status as broad as that contained in ISO Form
CG 20 10 11 85.
2. The coverage shall contain no special limitations on the scope of protection afforded to
CITY, its officers, officials, employees, agents, and volunteers. Any available insurance
proceeds in excess of the specified minimum limits and coverage shall be available to the
Additional Insured.
3. For any claims relating to this Agreement, CONSULTANT'S insurance coverage shall be
primary insurance with respect to the CITY, its officers, officials, employees, agents, and
PAGE 14
volunteers. Any insurance or self-insurance maintained by the CITY, its officers, officials,
employees, agents, and volunteers shall be excess of CONSULTANT'S insurance and
shall not contribute with it. CONSULTANT shall establish primary and non-contributory
status by using ISO Form CG 20 01 04 13 or by an executed manuscript insurance
company endorsement that provides primary and non-contributory status as broad as that
contained in ISO Form CG 20 01 04 13.
The Workers' Compensation insurance policy is to contain, or be endorsed to contain, the following
provision: CONSULTANT and its insurer shall waive any right of subrogation against CITY, its officers,
officials, employees, agents, and volunteers.
If the Professional(Errors and Omissions) policy is written on a claims-made form:
1. The retroactive date must be shown, and must be before the effective date of the
Agreement or the commencement of work by CONSULTANT.
2. Insurance must be maintained and evidence of insurance must be provided for at least five
years after completion of the Agreement work or termination of the Agreement, whichever
occurs first, or, in the alternative, the policy shall be endorsed to provide not less than a
five-year discovery period.
3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy
form with a retroactive date prior to the effective date of the Agreement or the
commencement of work by CONSULTANT, CONSULTANT must purchase "extended
reporting" coverage for a minimum of five years' completion of the Agreement work or
termination of the Agreement, whichever occurs first.
4. A copy of the claims reporting requirements must be submitted to CITY for review.
5. These requirements shall survive expiration or termination of the Agreement.
All poAcies of insurance required herein shall be endorsed to provide that the coverage shall not be
cancelled, non-renewed, reduced in coverage or in limits except after thirty calendar days'written notice
by certified mail, return receipt requested, has been given to CITY. CONSULTANT is also responsible for
providing written notice to the CITY under the same terms and conditions. Upon issuance by the insurer,
broker, or agent of a notice of cancellation, non-renewal, or reduction in coverage or in limits,
CONSULTANT shall furnish CITY with a new certificate and applicable endorsements for such policy(ies).
In the event any policy is due to expire during the work to be performed for CITY, CONSULTANT shall
provide a new certificate, and applicable endorsements, evidencing renewal of such policy not less than
fifteen calendar days prior to the expiration date of the expiring policy.
Should any of these policies provide that the defense costs are paid within the Limits of Liability, thereby
reducing the available limits by defense costs, then the requirement for the Limits of Liability of these
polices will be twice the above stated limits.
VERIFICATION OF COVERAGE
CONSULTANT shall furnish CITY with all certificate(s)and applicable endorsements effecting coverage
required hereunder. All certificates and applicable endorsements are to be received and approved by
the CITY'S Risk Manager or designee prior to CITY'S execution of the Agreement and before work
commences. All non-ISO endorsements amending policy coverage shall be executed by a licensed and
authorized agent or broker. Upon request of CITY, CONSULTANT shall immediately furnish City with a
complete copy of any insurance policy required under this Agreement, including all endorsements, with
said copy certified by the underwriter to be a true and correct copy of the original policy. This requirement
shall survive expiration or termination of this Agreement.
PAGE 15
Exhibit C
DISCLOSURE OF CONFLICT OF INTEREST
FINANCIAL ADVISORY SERVICES
YES* NO
1 Are you currently in litigation with the City of Fresno or any of its ❑ ❑
agents?
2 Do you represent any firm, organization, or person who is in litigation ❑ ❑
with the City of Fresno?
3 Do you currently represent or perform work for any clients who do ❑ ❑
business with the City of Fresno?
4 Are you or any of your principals, managers, or professionals,owners
or investors in a business which does business with the City of ❑
El
Fresno, or in a business which is in litigation with the City of Fresno?
5 Are you or any of your principals, managers,or professionals, related
by blood or marriage to any City of Fresno employee who has any
significant role in the subject matter of this service?
6 Do you or any of your subcontractors have, or expect to have, any
interest,direct or indirect, in any other contract in connection with this ❑ 01
Project?
* If the answer to any question is yes, please explain in full below.
Explanation:
Signature
(Name)
(Company)
(Address?
❑Additional page(s) attached.
(City State Zip)
(Date)
AGREEMENT DOCUMENTS SECTION PAGE 16
Exhibit C
DISCLOSURE OF CONFLICT OF INTEREST
FINANCIAL ADVISORY SERVICES
YES* NO
—]
1 Are you currently in litigation with the City of Fresno or any of its ❑ x
agents?
2 Do you represent any firm,organization, or person who is in litigation ❑ x
with the City of Fresno?
3 Do you currently represent or perform work for any clients who do x
business with the City of Fresno?
4 Are you or any of your principals, managers,or professionals,owners
or investors in a business which does business with the City of El Fresno, or in a business which is in litigation with the City of Fresno? x
5 Are you or any of your principals, managers,or professionals, related
by blood or marriage to any City of Fresno employee who has any ❑ x
significant role in the subject matter of this service?
6 Do you or any of your subcontractors have, or expect to have, any
interest, direct or indirect, in any other contract in connection with this
Project? J x
* If the answer to any question is yes, please explain in full below.
Explanation: Re item 3, from time to time our company does work for Fresno County, which at times may have
business with the City of Fresno. While the team assigned to the City does not work for the County, we do
carefully manage any potential conflict, and would notify the City if anything that could be potentially perceived
as a conflict is disclosed and appropriately addressed.
Signature
David Brodsly
KNN Public Finance, a Limited Liability Company
2054 University Avenue, Suite 300
J Berkeley, CA 04704
March 12,2021
(Date)
AGREEMENT DOCUMENTS SECTION PAGE 16