HomeMy WebLinkAboutAGR-7921 - FIELDMAN, ROLAPP, & ASSOCIATES - MUNICIPAL ADVISORDocusign Envelope ID:E261B713-D126-4814-A386-EFB21A0504FF
AGR-732 1 Initial
PROFESSIONAL SERVICES AGREEMENT 79a-1 1,7
FOR MUNICIPAL ADVISOR
This Agreement has been entered into this 27thday of February 2026 by and between
the City of Orange (the "City") and Fieldman, Rolapp & Associates, Inc. (herein, the
Consultant") each of the City and the Consultant shall be referred to generally as a
party" or collectively the "parties" for this Agreement.
WHEREAS, the City desires independent municipal advisory services to be performed
in connection with the refunding of CFD No. 06-1 (Del Rio) 2015 Special Tax Bonds
herein, the "Project"); and
WHEREAS, the City desires to retain the professional and technical services of the
Consultant for the purpose of debt issuance (as more fully described in Exhibit A, the
Services");
WHEREAS, the Consultant is registered as a municipal advisor with both the United
States Securities and Exchange Commission and the Municipal Securities Rulemaking
Board;
NOW, THEREFORE, in consideration of the above recitals and the mutual covenants
and conditions hereinafter set forth, it is agreed as follows:
Section 1 Municipal Advisory Services.
Consultant will provide services in connection with the Project as such
Services are fully described in Exhibit A attached to this Agreement.
Consultant is engaged in an expert municipal advisory capacity to the
City only. It is expressly understood that the Services rendered
hereunder are rendered solely to the City. Consultant does not
undertake any responsibility to review disclosure documents on behalf
of owners or beneficial owners of bonds or debt which may arise from
the Consultant's work hereunder.
Section 2 Additional Requested Services (Amendment of Services).
The City may request that Consultant provide additional services beyond
the scope of those referenced in Section 1 above and specifically listed
in Exhibit A to this Agreement. The Services to be provided under this
Agreement may only be amended by a modification as provided for in
Section 6.
Section 3 Compensation
3.01 For Consultant's performance of Services as described in this
Agreement,the Consultant's compensation will be as provided in Exhibit
B attached to this Agreement,
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3.02 Payment of Consultant's expenses shall be made at the time and in the
form as provided for in Exhibit B to this Agreement.
3.03 Unless otherwise specified, payment of Consultant's compensation and
expenses is due thirty (30) days after submission of Consultant's invoice
for Services.
3.04 In the event City abandons the Services of the Consultant prior to
completion of Consultant's work, Consultant shall be compensated for
Services performed to the point of abandonment at the hourly rates
specified in Exhibit B. An act of abandonment shall be deemed to have
occurred when no action has been taken by the City relative to the
services of the Consultant for a period of six (6) months from the date of
the initial performance of a service, and there has been a written
notification to the Consultant of an abandonment of the Project by the
City.
3.05 The schedule of Consultant fees set forth in this Agreement and Exhibit
B is guaranteed by Consultant for the term of this Agreement.
Section 4 Personnel.
Consultant has, or will secure, all personnel required to perform the
Services under this Agreement. Consultant shall make available other
qualified personnel of the firm as may be required to complete
Consultant's services. The City has the right to approve or disapprove
any proposed changes in Consultant's staff providing service to the City.
The City and Consultant agree that such personnel are employees only
of Consultant and shall not be considered to be employees of the City in
any way whatsoever.
Section 5 Term of Agreement.
This Agreement shall continue in full force and effect unless terminated
by either party by not less than thirty(30) days written notice to the other
party. This Agreement may be extended from time to time as agreed by
the City and the Consultant pursuant to Section 6.
Section 6 Modification.
This Agreement, with all attachments and exhibits, contains the entire
agreement and understanding of the parties. It may be amended in
whole or in part from time to time by mutual consent of the parties;
provided that the Disclosures(as defined herein) required by Section 16
will be updated by the Consultant as required by law. This shall not
prohibit the City and Consultant from entering into separate agreements
for other services.
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Section 7 Work Products.
All work products or any form of property developed by the Consultant
in providing the Services shall be provided to the City on request. Work
products developed by the Consultant shall be the property of the City,
provided that Consultant may use such work products developed for the
City and may employ those work products to develop refinements or
additional work products in the course of its business.
Section 8 Assignment.
The rights and obligations of the parties under this Agreement shall inure
to the benefit of and shall be binding upon the successors and assigns
of such parties. This Agreement may not be assigned by the Consultant
without the consent of the City except for compensation due Consultant.
Notwithstanding the foregoing, Consultant may assign this Agreement,
without the consent of the City, to (i) any parent, subsidiary, or affiliate
entity of Consultant, or (ii) any purchaser of all or substantially all of
Consultant's assets or to any successor by way of merger, consolidation,
or similar transaction.
Section 9 Disclosure.
Consultant does not assume the responsibilities of the City, nor the
responsibilities of the other professionals and vendors representing the
City, in the provision of services and the preparation of the financing
documents, including initial and secondary market disclosure, for
financings undertaken by the City. Information obtained by Consultant
and included in any disclosure documents is, by reason of experience,
believed to be accurate; however, such information is not guaranteed by
Consultant.
Section 10 Confidentiality.
The Consultant agrees that all financial, statistical, personal, technical
and other data and information designated by the City as confidential
shall be protected by the Consultant from unauthorized use or
disclosure. The City acknowledges that the Consultant is required to
comply with applicable laws governing disclosure of public information.
Section 11 Indemnification.
The City and Consultant shall each indemnify("Indemnifying Party") and
hold harmless the other ("Indemnified Party") from and against any and
all losses, claims,damages, expenses, including reasonable legal fees for
defense, or liabilities(collectively, "damages"), relating to and/or arising
out of any third-party claim alleging any bodily injury, death of any
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person, or damage to property caused by the Indemnifying Party's gross
negligence or willful misconduct; provided, that, the Indemnified Party
shall provide the Indemnifying Party prompt notice of any such claim,
authorize the Indemnifying Party to settle or defend such claim, provide
the Indemnifying Party control of the defense of such claim, and assist
such defense (at the Indemnifying Party's reasonable expense) upon
request of the Indemnifying Party.
Section 12 Insurance.
12.01 Consultant and the City hereby agree that each shall maintain workers'
compensation and comprehensive general liability insurance[and errors
and omissions liability insurance] during the term of this Agreement.
12.02 Each party shall, at its own expense, obtain and maintain insurance at all
times during the term of this Agreement.
12.03 Insurance coverages shall not be less than the following:
A. Workers' Compensation
1. State worker's compensation statutory benefits
2. Employer's Liability - policy limits of not less than $1,000,000
B. Comprehensive General Liability coverage with policy limits of not
less than $1,000,000 combined single limit for bodily injury and
property damage and including coverage for the following:
1. Premises operations
2. Contractual liability
3. Products
4. Completed operation
C. Errors and omissions insurance coverage with policy limits of
2,000,000.
12.04 If requested, certificates of insurance naming the requesting party as an
additional insured for general liability and worker's compensation
coverage shall be submitted to the requesting party evidencing the
required coverages, limits and locations of operations to which the
insurance applies, and the policies of insurance shall contain a minimum
thirty(30) day notice of cancellation or non-renewal.
Section 13 Permits/Licenses.
The Consultant shall obtain any permits or licenses, as may be required
for it to complete the Services required under this Agreement.
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Section 14 Binding Effect.
14.01 A waiver or indulgence by the City of a breach of any provision of this
Agreement by the Consultant shall not operate or be construed as a
waiver of any subsequent breach by the Consultant.
14.02 All agreements contained herein are severable and in the event any of
them shall be held to be invalid by any competent court, this Agreement
shall be interpreted as if such invalid agreements or covenants were not
contained herein, and the remaining provisions of this Agreement shall
not be affected by such determination and shall remain in full force and
effect. This Agreement shall not fail because any part or any clause
hereof shall be held indefinite or invalid.
14.03 Each party hereto represents and warrants that this Agreement has been
duly authorized and executed by it and constitutes its valid and binding
agreement, and that any governmental approvals necessary for the
performance of this Agreement have been obtained.
Section 15 Choice of Law.
15.01 The validity, interpretation and construction of this Agreement and of
each part hereof shall be governed by the laws of the State of California.
Venue for any action concerning this Agreement is Orange County,
California.
15.02 Any dispute, claim, or controversy arising out of or relating to this
Agreement or the breach, termination, enforcement, interpretation, or
validity thereof, including the determination of the scope or applicability
of this agreement to arbitrate, with a value or damages claim in excess of
5,000, shall be determined by arbitration in Orange County, California
before one arbitrator. The arbitration shall be administered by Judicial
Arbitration and Mediation Services, Inc. ("JAMS") pursuant to its
Comprehensive Arbitration Rules and Procedures. The arbitrator's
decision shall be final and binding on all parties, and judgment may be
entered in any court of competent jurisdiction. The arbitrator shall award
to the prevailing party, if any, the costs and attorneys' fees reasonably
incurred by the prevailing party in connection with the arbitration.
Section 16 Conflict of Interest and Other Required Disclosures.
Consultant covenants and agrees to provide to the City disclosures of
material conflicts of interest and certain legal or disciplinary events
required by Municipal Securities Rulemaking Board Rule G-42 (the
Disclosures"). The Disclosures, and each delivery thereof, as provided
from time to time, shall be incorporated by reference as of the date
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thereof into this Agreement to the same extent as if set forth herein. The
initial Disclosures are as set forth in Exhibit C to this Agreement.
Section 17 Limitation of Liability.
IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR
ANY CONSEQUENTIAL, INDIRECT, INCIDENTAL, SPECIAL,
EXEMPLARY, OR PUNITIVE DAMAGES, WHETHER ARISING OUT OF A
BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), OR
OTHERWISE, REGARDLESS OF WHETHER SUCH DAMAGES WERE
FORESEEABLE AND THE OTHER PARTY HAD BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES. EXCEPT AS MAY ARISE OUT OF A
PARTY'S INDEMNIFICATION OBLIGATIONS, THE AGGREGATE
LIABILITY FOR EITHER PARTY TO THE OTHER FOR ANY AND ALL
CLAIMS OR DAMAGES ARISING OUT OF OR RELATED TO THIS
AGREEMENT SHALL NOT EXCEED THE TOTAL AMOUNT PAID BY THE
City TO CONSULTANT HEREUNDER FOR THE SERVICES PROVIDED
UNDER THIS AGREEMENT DURING THE SIX (6) MONTH PERIOD
IMMEDIATELY PRECEDING THE EVENT GIVING RISE TO THE CLAIM.
IN WITNESS Whereof,the parties have duly executed this Agreement as of the day and
year first above set forth.
CITY OF ORANGE
300 E. Chapman Ave.
Orange, CA 92866
r—sp••a nr:
By:
E2.1111denbrand, City Manager
ATTEST: APPROVED AS TO FORM:
sio!.•e nr ooeosgnw by:
PatiltIcr deman, City Clerk iattialleAAtIourian, City Attorney
FIELDMAN, ROLAPP &ASSOCIATES, INC.
19900 MacArthur Boulevard, Suite 1100
Irvine, CA 92612
Initlal
By: 6% .X'Ira'ed LQ ; Principal
Anna V. Sarabia
Date: February 13, 2026
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EXHIBIT A
TO
PROFESSIONAL SERVICES AGREEMENT FOR MUNICIPAL ADVISOR
BY AND BETWEEN
THE CITY OF ORANGE
AND
FIELDMAN, ROLAPP &ASSOCIATES, INC.
Scope of Services
A. General Services.
The Consultant shall perform all the duties and services described in Section 1 of this
Agreement and shall provide such other services as it deems necessary or advisable to
accomplish the Project, consistent with the standards and practice of professional
municipal advisors prevailing at the time such services are rendered to the City.
The City may, with the concurrence of Consultant, expand this Agreement to include
Additional Services not specifically identified within the terms of this Agreement. Any
Additional Services may be described in an addendum to this Exhibit A and are subject
to compensation described in Exhibit B to this Agreement.
B. Transaction Services.
The Consultant shall assume primary responsibility for assisting the City in coordinating
the planning and execution of each debt issue relating to the Project. Insofar as the
Consultant is providing Services which are rendered only to the City, the overall
coordination of the financing shall be such as to minimize the costs of the transaction
coincident with maximizing the City's financing flexibility and capital market access. The
Consultant's proposed debt issuance Services may include the following:
Develop the Financing Schedule
Monitor the Transaction Process
Review the Official Statement, both preliminary and final
Procure and Coordinate Additional Service Providers
Provide Financial Advice to the City Related to Financing
Documents
Compute Sizing and Design Structure of the Debt Issue
Conduct Market Analysis and Evaluate Timing of Market Entry
Recommend Award of Debt Issuance
Provide Pre-Closing and Closing Assistance
CITY OF ORANGE/FIELDMAN, ROLAPP&ASSOCIATES, INC. Exhibit A, Page 1
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Specifically, Consultant will:
1. Develop the Financing Timetable.
The Consultant shall take the lead role in preparing a schedule and detailed
description of the interconnected responsibilities of each team member and
update this schedule, with refinements, as necessary, as the work progresses.
2. Monitor the Transaction Process.
The Consultant shall have primary responsibility for the successful
implementation of the financing strategy and timetable that is adopted for each
debt issue relating to the Project. The Consultant shall coordinate (and assist,
where appropriate) in the preparation of the legal and disclosure documents
and shall monitor the progress of all activities leading to the sale of debt. The
Consultant shall prepare the timetables and work schedules necessary to
achieve this end in a timely, efficient and cost-effective manner and will
coordinate and monitor the activities of all parties engaged in the financing
transaction.
3. Review the Official Statement.
The Consultant shall review the official statement for each debt issue relating to
the Project to ensure that the City's official statement is compiled in a manner
consistent with industry standards. Consultant does not undertake any
responsibility to review disclosure documents on behalf of owners or beneficial
owners of bonds or debt which may arise from the Consultant's work hereunder.
4. Procure and Coordinate Additional Service Providers.
The Consultant may act as City's representative in procuring the services of
financial printers for the official statement and related documents. In addition,
the Consultant may act as the City's representative in procuring the services of
trustees, paying agents, fiscal agents, feasibility consultants, redevelopment
consultants, or escrow verification agents or other professionals, if the City
directs.
5. Provide Financial Advice to the City Relating to Financing Documents.
The Consultant shall assist the managing underwriters, bond counsel and/or
other legal advisors in the review of the respective financing resolutions, notices
and other legal documents. In this regard, the Consultant shall monitor
document preparation for a consistent and accurate presentation of the
recommended business terms and financing structure of each debt issue
relating to the Project, it being specifically understood however that the
Consultant's services shall in no manner be construed as the Consultant
engaging in the practice of law.
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6. Compute Sizing and Design Structure of Debt Issue.
The Consultant shall work with the City's staff bond counsel and other
professionals of the City to design a financing structure for each debt issue
relating to the Project that is consistent with the City's objectives, that
coordinates each transaction with outstanding issues and that reflects current
conditions in the capital markets.
7. Conduct Market Analysis and Evaluate Timing of Market Entry.
The Consultant shall provide summaries of current municipal market conditions,
trends in the market and how these may favorably or unfavorably affect the City's
proposed financing.
The Consultant shall perform an evaluation of market conditions preceding the
negotiation of the terms of the sale of debt and will assist the City with the
negotiation of final issue structure, interest rates, interest cost, reoffering terms
and gross underwriting spread and provide a recommendation on acceptance
or rejection of the offer to purchase the debt. This assistance and evaluation will
focus on the following areas as determinants of interest cost:
Size of financing
Sources and uses of funds
Terms and maturities of the debt issue
Review of the rating in pricing of the debt issue
Investment of debt issue proceeds
Distribution mix among institutional and retail purchasers
Interest rate, reoffering terms and underwriting discount with
comparable issues
Redemption provisions
8. Recommend Award of Debt Issuance.
The Consultant will recommend accepting or rejecting offers to purchase the
debt issue. If the City elects to award the debt issue, the Consultant will
instruct all parties and help facilitate the actions required to formally
consummate the award.
9. Provide Pre-Closing and Closing Activities.
The Consultant shall assist in arranging for the closing of each financing. The
Consultant shall assist counsel in assuming responsibility for such
arrangements as they are required, including arranging for or monitoring
the progress of bond printing, qualification of issues for book-entry status,
signing and final delivery of the securities and settlement of the costs of
issuance.
CITY OF ORANGE/FIELDMAN, ROLAPP&ASSOCIATES, INC. Exhibit A, Page 3
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EXHIBIT B
TO
PROFESSIONAL SERVICES AGREEMENT FOR MUNICIPAL ADVISOR
BY AND BETWEEN
THE CITY OF ORANGE
AND
FIELDMAN, ROLAPP &ASSOCIATES, INC.
Compensation and Expenses
Part 1 Transaction Based Compensation
For Services referenced in Section 1 of this Agreement, including Services performed
after the adoption by the City Council of the Resolution of Issuance, the Consultant will
be compensated a fee of$57,000 plus expenses.
For transactions that include multiple series of bonds issued under the same official
statement, the full transaction fee will not be charged for each additional series of
bonds. For any series in excess of one a fee of not to exceed twenty thousand dollars
20,000) per each additional series will be added to the transaction fee above.
The fees listed above shall increase each January 1st beginning January 1, 2027 by
three percent(3.00%).
Payment of compensation earned by Consultant pursuant to this Part 1 shall be
contingent on, and payable at the closing of the debt issue(s) undertaken to finance the
Project.
Part 2 Hourly Compensation
For Services and Additional Services referenced in Section 1 and Section 2 of this
Agreement, including Services performed prior to the adoption by City Council, the
Consultant will be compensated at the then current hourly rates. The table below
reflects the rates in effect as of the date of execution of this Agreement.
Personnel Hourly Rate
Executive Officer 440.00
Principal 430.00
Executive/ Senior Vice President 418.00
Vice President 356.00
Assistant Vice President 329.00
Senior Associate 296.00
Associate 262.00
Analyst 145.00
Administrative Assistant 106.00
CITY OF ORANGE/FIELDMAN, ROLAPP&ASSOCIATES, INC. Exhibit B, Page 1
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Hourly Compensation will be billed on a monthly basis and are due thirty(30)days from
the invoice date. Invoices not paid within sixty (60) days are subject to a two percent
2.00%) late fee for every month payment is late.
Hourly Rates identified above shall increase each January 1st beginning January 1,
2027 by three percent(3.00%).
Expenses
Expenses will be billed for separately and will cover, among other things, travel,
lodging, subsistence, overnight courier, conference calls, and computer charges.
Advances made on behalf of the City for costs of preparing, printing or distributing
disclosure materials or related matter whether by postal services or electronic means,
may also be billed through to the City upon prior authorization. Additionally, a
surcharge of six percent(6.00%)of the compensation amount is added to verifiable out-
of-pocket costs for recovery of costs such as telephone, postage, document
reproduction and the like.
Limiting Terms and Conditions
The above compensation is based on completion of work orders within six months of
the City's authorization to proceed, and assumes that the City will provide all necessary
information in a timely manner.
The fee referenced in Part 1 above, presumes attendance at up to 6 meetings in the
City's offices or such other location within a 25-mile radius of the City place of business
as the City may designate. Preparation for, and attendance at City Council meetings on
any basis other than "by appointment" may be charged at our normal hourly rates
referenced in Part 2 above.
Abandonment
If, once commenced, the services of the Consultant are terminated prior to completion
of our final report for any reason, the Consultant will be compensated for professional
services and reimbursed for expenses incurred through the time of receive notification
of such termination at the standard hourly rates shown above.
CITY OF ORANGE/FIELDMAN, ROLAPP&ASSOCIATES, INC. Exhibit B, Page 2
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EXHIBIT C
TO
PROFESSIONAL SERVICES AGREEMENT FOR MUNICIPAL ADVISOR
BY AND BETWEEN
THE CITY OF ORANGE
AND
FIELDMAN, ROLAPP &ASSOCIATES, INC.
MSRB Rule G-42 requires that municipal advisors provide to their clients disclosures
relating to all material conflicts of interest, including certain categories of potential
conflicts of interest identified in Rule G-42, if applicable. With respect to all aspects of
the relationship between Consultant and the City, Consultant adheres to its fiduciary
duty to the City, which includes a duty of loyalty to the City in performing all municipal
advisory activities for the City. The duty of loyalty obligates Consultant to deal honestly
and with the utmost good faith with the City and to act in the City's best interest without
regard to any interest Consultant has or may have. Consultant has a wide range of
clients so our success and profitability are not dependent on maximizing short-term
revenue generated from individual recommendations to our clients but is instead
dependent on long-term profitability based on a foundation of integrity, quality and
adherence to our fiduciary duty. Furthermore, Consultant's supervisory structure
provides strong safeguards against individual representatives of Consultant violating
their duty due to personal interests.
Consultant makes the following representations to the City with regard to the Services:
A. Other than the compensation described in the Agreement, we have no other
interest, direct or indirect, that would interfere with or impair in any matter or
degree the performance of our obligations. During our work on the Services,
we do not intend to acquire or obtain any such interest, direct or indirect. If any
such interest is acquired or obtained, we will immediately advise the City.
B. We have not provided any gift or consideration to any officer, employee or
agent of the City to either obtain the Agreement or any assignment from the
City, including the Services. Neither our firm, nor its officers or employees will
provide any such gift or consideration to any officer, employee or agent of the
City to influence decisions with regard the Services or our obligations under the
Agreement.
C. Our compensation for the Services and is contingent on the completion of the
Project. While this form of compensation is customary in the market for financial
services to municipal entities, this may present conflict of interest as we would
have an incentive to recommend to the City the Project even if it is unnecessary
or provides insufficient benefit or advise the City to increase the size of the
Project. This potential conflict is mitigated by Consultant's fiduciary duty to the
City.
D. The City has employed and may employ Consultant through its d/b/a Applied
Best Practices ("ABP"), with regard to the performance of its continuing
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disclosure obligations. This relationship has the potential to result in a conflict
of interest by creating an incentive for Consultant to recommend to the City a
course of action that would increase the City's business activity with ABP or
conversely that would discourage a course of action that would decrease the
City's business activity with ABP. The conflict is mitigated by Consultant's
fiduciary duty to the City. Moreover, if Consultant makes a recommendation that
could influence the level of business with ABP, Consultant will consider
alternatives to the recommendation, which will be disclosed to the City.
Information Regarding Legal Events and Disciplinary Actions
MSRB Rule G-42 requires that municipal advisors provide their clients disclosures of
legal or disciplinary events material to the evaluation of the municipal advisor or the
integrity of the municipal advisor's management or advisory personnel. Consultant sets
out required disclosures and related information below:
A. In 2023, the U.S. Securities and Exchange Commission (the "SEC") accepted
offers of settlement from Fieldman and a principal (the "Settlement"). Neither
the firm nor the principal admitted or denied the findings described in the
Settlement. For more information about the Settlement, please review the
Regulatory Action Disclosure included in Fieldman's Form MA and Form MA-I
for the principal (which is cross-referenced in Form MA). There are no other
legal or disciplinary events material to the Client's evaluation of Fieldman or the
integrity of Fieldman's management or advisory personnel disclosed, or that
should be disclosed, on any Form MA or Form MA-I with the SEC. There has
been no other material change or addition to the legal or disciplinary event
disclosures on any Form MA or MA-I filed with the SEC.
Consultant's most recent Form MA and each most recent Form MA-I filed with the SEC
are available on the SEC's EDGAR system at http://www.sec.gov/cgi-bin/browse-
edgar?action=getcompany&CIK=0001612429
Contents of Client Brochure
The MSRB requires us to provide you with the following information: Consultant is
registered as a "Municipal Advisor" pursuant to Section 15B of the Securities Exchange
Act and rules and regulations adopted by the SEC and the MSRB.
The MSRB has made available on its website(www.msrb.org)a municipal advisory client
brochure that describes the protections that may be provided by MSRB rules and how
to file a complaint with the appropriate regulatory authority.
CITY OF ORANGE/FIELDMAN, ROLAPP&ASSOCIATES, INC. Exhibit C, Page 2
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