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Best Best & Krieger LLP Response to Request for Qualifications Land-Secured Financing Services City of La Quinta March 5, 2025 Best Best & Krieger LLP Mrunal M. Shah mrunal.shah@bbklaw.com bbklaw.com COVER LETTER ................................................................................................................................................. 2 BACKGROUND, QUALIFICATIONS AND EXPERIENCE ...................................................................................... 4 (A) SPECIFIC SERVICES PROVIDED .......................................................................................................................................... 4 (B) NUMBER OF YEARS IN BUSINESS ....................................................................................................................................... 4 (C) NUMBER OF YEARS PERFORMING SERVICES ...................................................................................................................... 4 (D) QUALIFICATIONS OF PROJECT MANAGER AND KEY PERSONNEL ........................................................................................... 5 Mrunal Shah .................................................................................................................................................................................... 5 Kim Byrens ...................................................................................................................................................................................... 5 (E) FIRM OWNERSHIP ............................................................................................................................................................ 6 (F) SUBSIDIARY INFORMATION ............................................................................................................................................... 7 (G) QUALIFICATIONS ............................................................................................................................................................. 7 Recent Projects ............................................................................................................................................................................... 7 REFERENCES OF CALIFORNIA GOVERNMENT AGENCIES ............................................................................... 8 FEE SCHEDULE ............................................................................................................................................... 10 HOURLY RATES ................................................................................................................................................................... 10 COST REIMBURSEMENT ........................................................................................................................................................ 11 REQUESTED EXCEPTION TO THE CITY’S AGREEMENT FOR CONTRACT SERVICES ........................................................................ 11 LIST OF COMPLEMENTARY SERVICES OFFERED ............................................................................................ 11 STAFFING AND PROJECT ORGANIZATION ..................................................................................................... 12 MRUNAL SHAH .................................................................................................................................................................... 12 KIM BYRENS ........................................................................................................................................................................ 13 JENNIFER BRADLEE .............................................................................................................................................................. 14 JOHN ROTTSCHAEFER .......................................................................................................................................................... 15 SUBCONTRACTING SERVICES ....................................................................................................................... 15 DISCLOSURES ................................................................................................................................................ 15 CONFLICTS OF INTEREST STATEMENT ................................................................................................................................... 16 EXPLANATION OF METHODOLOGY .................................................................................................................17 SERVICES RELATED TO THE ESTABLISHMENT OF COMMUNITY FACILITIES DISTRICTS ................................................................ 17 SERVICES RELATED TO THE COMMUNITY FACILITIES DISTRICTS BOND ISSUANCE ..................................................................... 17 DISCLOSURE COUNSEL SERVICES ......................................................................................................................................... 18 NON-COLLUSION AFFIDAVIT ......................................................................................................................... 19 TABLE OF CONTENTS bbklaw.com 2 CITY OF LA QUINTA COVER LETTER March 5, 2025 VIA EMAIL City of La Quinta Rosemary Hallick, Principal Management Analyst 78495 Calle Tampico La Quinta, California 92253 rhallick@laquintaca.gov Re: Request for Qualifications for Land-Secured Financing Services Dear Rosemary, On behalf of Best Best & Krieger LLP (BBK), I am pleased to enclose this proposal to provide land- secured financing services, specifically bond counsel and disclosure counsel services, to the City of La Quinta (City). Our experience serving as bond counsel, disclosure counsel and special counsel for Community Facilities Districts (CFD) and Assessment Districts (AD) makes BBK ideal to assist the City connection with the potential issuance of bonds, and we are prepared to assist immediately. Our Public Finance team can handle every detail relating to the authorization, sale and delivery of public securities. Whether for transportation, schools, public recreation, housing or water supply, our attorneys have extensive experience in all types of financing structures, including short-term and long-term borrowing, fixed- or variable-rate obligations and derivatives. BBK’s main office is the office that we will primarily service this project from and is listed below: BBK Riverside 3390 University Ave., 5th Floor Riverside, CA 92501 Phone: (951) 686-1450 Fax: (951) 686-3083 Additionally, BBK maintains an office in Indian Wells, located at 74-760 Highway 111, Suite 100, Indian Wells, CA 92210, located fewer than 7 miles away La Quinta City Hall. bbklaw.com 3 CITY OF LA QUINTA I, Mrunal M. Shah, will be the primary contact person for this engagement, and am authorized to bind the firm to the terms of this proposal. My contact information is as follows: Mrunal M. Shah Partner 3390 University Ave., 5th Floor Riverside, CA 92501 Phone: (951) 826-8259 Email: mrunal.shah@bbklaw.com All information and pricing provided in our presentation is valid for at least ninety (90) days following the City’s submittal deadline of March 5, 2025. Any individual who will perform work for the City is free of any conflict of interest. I appreciate your consideration of BBK’s proposal and look forward to the opportunity to discuss our qualifications and other relevant information with you in more detail. In the interim, if there is any additional information or background material that you require, please do not hesitate to contact me. Sincerely, Mrunal M. Shah of BEST BEST & KRIEGER LLP bbklaw.com 4 CITY OF LA QUINTA BACKGROUND, QUALIFICATIONS AND EXPERIENCE (a) Specific Services provided BBK is a law firm with full-service capabilities and an interconnected network of practices that allow us to assist our public agency, business and private clients with their complex, multidisciplinary issues. Our experienced attorneys and legal staff share their knowledge and resources to help clients navigate the ever-changing legal complexities and regulatory challenges. With proactive and strategic counsel and representation, we enable clients to focus on their businesses while we help them plan for the future. In response to the specific services sought by the City as part of its RFQ, BBK proposes to provide bond counsel and disclosure counsel services related to land-secured financing. With more than 40 years of experience, BBK’s nationally recognized Public Finance practice group has acted as bond, disclosure and underwriter’s counsel in financings for public agencies throughout California and was recognized by Chambers USA in 2024 for California: Public Finance. We are bond counsel, disclosure counsel and underwriter’s counsel on billions in par value of municipal bonds and are renowned for creative public finance solutions for construction projects, acquiring new public infrastructure and land-secured financings. We are also highly regarded for our success in restructuring troubled debt, enabling underperforming assets to achieve value and pay debt service. (b) Number of Years In Business Formed in 1891, BBK is proud to say that we have been entrusted to serve our clients for more than 130 years. (c) Number of Years Performing Services BBK has maintained an active public finance practice since 1975 and is one of the leading bond counsel firms in California We are bond counsel and disclosure counsel on billions in par value of municipal bonds. bbklaw.com 5 CITY OF LA QUINTA (d) Qualifications of Project Manager and Key Personnel BBK proposes to staff the CFD projects with partners Mrunal Shah and Kim Byrens , as well as Of Counsel Jennifer Bradlee, in the Public Finance practice group. The attorneys will be supported by our paralegal team of Anne McClure and Priscilla Anderson. We have additional staff in public finance, Kenneth Burgess and Juan Zaragoza, who will assist with the preparation of legal documents and processing the formation of the CFD from the application of the developer, the conduct of the hearing and the election and the levy of the special taxes. Any bond issuance will be additionally staffed with partner John Rottschaefer, who focuses his practice on the federal taxation of municipal bonds. Mrunal Shah and Kim Byrens will be the key personnel who will be responsible for performance if any agreement results from the City’s RFQ. The team proposed to you has unmatched depth of experience in the formation of CFDs, the issuance of bonds of CFDs, the annual administration of CFDs, and the restructuring of defaulted CFDs. MRUNAL SHAH Mrunal Shah serves as bond counsel for numerous CFD formations and bond issuances for public agencies throughout California since 2002. Her experiences includes CFD formations by both landowner vote and registered voter elections for residential, commercial and industrial development which finance public services and infrastructure. Mrunal has served as bond and disclosure counsel for the City of Rancho Cucamonga and Riverside Unified School District. With each CFD, Mrunal works with staff to understand the goals and priorities of the public agency and uses these to successfully negotiate funding agreements with developers. Additionally, Mrunal is well versed in the negotiation of joint community facilities agreement that allow for the financing of improvements of other public agencies. Additionally, Mrunal has served as disclosure counsel for several clients in public offerings for several CFD financings, assisting clients in the preparation of Official Statements and advising on applicable federal securities laws. Mrunal also regularly provides disclosure training to inform staff and the governing board of their obligations and duties under applicable federal securities laws. Mrunal also serves as bond and/or disclosure counsel in connection with CFD and assessment district financing for the following clients: City of Azusa City of Colton City of Laguna Beach City of Ontario City of San Marcos City of San Bernardino City of Upland Southgate Recreation and Park District Valley Center Municipal Water District KIM BYRENS Kim Byrens has participated in the development of standards for increasing the awareness of public agencies of the credit risks involved when issuing bonds for CFDs since 1990. She acts as bond counsel bbklaw.com 6 CITY OF LA QUINTA for cities throughout the state and advises cities with respect to the facilities financed, the manner of conducting the proceedings, the conduct of the election, the levy of the special taxes, the issuance of bonds, and the administration of the bond funds. Kim helps cities use CFDs as a tool for the City to obtain premium capital facilities, as well as a mechanism to maintain those facilities. She encourages the preparation of a funding agreement at the time of formation of a CFD, so that the parameters of the CFD are understood. She works with developers to create joint community facilities arrangements with other public agencies. Her negotiating skills and foresight helps cities navigate the development of public facility programs through CFDs. Specifically, Kim has helped Jurupa Community Services District negotiate the payment of premium park improvements (via a per home fee) through CFDs to develop a nationally recognized park program in the Eastvale service area. Kim has worked as work out bond counsel on several defaulted CFDs (BBK was not counsel on the original deal), where she had to navigate the negotiation of agreements with existing bond owners, the conduct of foreclosure proceedings and credit bids at foreclosure sale, the formation of an overlapping CFD, the preservation of the existing CFD for any current homeowners, the restructure of defaulted bonds and the issuance of new CFD bonds. Kim’s disclosure counsel experience includes public offerings, limited offerings and private placements for CFDs, and she has helped develop increased disclosure standards for new development. She works as disclosure counsel in many different market environments, which can alter the story of the development, such as recent times when the need for housing in California is immediate and homes sell rapidly, and during the great recession when home sales were impeded by hard economic times and high foreclosure rates. In addition to the clients described above, Kim has served as bond and/or disclosure counsel for CFD and assessment district financings for the following clients: City of Corona City of Encinitas City of Galt City of Paso Robles Elsinore Valley Municipal Water District Resumes for the proposed attorney team can be found later in our proposal within the Staffing and Project Organization section. (e) Firm Ownership As a California Limited Liability Partnership, BBK is owned by a number of the firm’s partners who have an equity stake in the firm. BBK is governed by a five-member Executive Committee, chaired by Managing Partner Eric Garner, and elected by the partners. Additional firm leadership includes practice group leaders, office managing partners and a professional management team. bbklaw.com 7 CITY OF LA QUINTA (f) Subsidiary Information BBK is not a subsidiary of a parent company. (g) Qualifications We have assembled a very experienced team for the City: Kim Byrens has more than 34 years of experience as bond counsel for CFDs; Mrunal Shah has more than 20 years of experience as bond counsel for CFDs; Jennifer Bradlee has been a bond practitioner for more than 10 years; and John Rottschaefer has practiced in the federal tax area for more than 40 years. Our paralegals have been with BBK for 23 and 18 years and have more than 10 years as public finance paralegals for the formation of CFDs and assessment districts. BBK has served as bond counsel assisting in the development and implementation of prolific CFD programs, such as the City’s, throughout the Inland Empire which have assisted public agencies ensure that both their facilities and services needs are met. Such CFD Programs include: Client Name CFD Programs City of Corona 20 CFDs Jurupa Community Services District 61 CFDs City of Rancho Cucamonga 12 CFDs Riverside Unified School District 41 CFDs These CFDs have been critical to the development of the Inland Empire and expansion of economic opportunities. The CFDs have provided financing for, among other things, critical water and sewer improvements, flood control improvements, roads, the establishment and maintenance of an award- winning park program, premium student housing, police and fire services and the maintenance of landscaping, street lighting and other public improvements. RECENT PROJECTS Role of the firm: Bond Counsel for the City of Corona CFD 2018-1 (Improvement Area No. 2) Dollar value of the services: $26,000,000 Dollar value of the fee: $105,000 Description of services: Proceedings amending the boundaries of improvement areas and special taxes, preparation of revisions to funding agreement and joint community facilities agreement, attendance at all meetings and calls in which project is discussed, review of facilities to be reimbursed and advice regarding Mello-Roos Act and Federal Tax Law, preparation of all legislative approvals, preparation of all legal documents, review of all disclosure documents including Official Statement, preparation of all closing documents, management of execution and delivery of all closing documentation, certificates, instructions and opinions. Relationship to client: Bond Counsel bbklaw.com 8 CITY OF LA QUINTA Role of the firm: Bond Counsel for the Jurupa Community Services District Public Financing Authority Dollar value of the services: $66,365,000 Dollar value of the fee: $161,500 Description of services: Preparation of legislative approvals for the refunding of thirteen CFDS and the issuance of their bonds together with the issuance of bonds by the Public Financing Authority (PFA), preparation of all legal documents of each CFD and the PFA. Federal tax law review of expenditures of all of the CFDs and PFA. Attendance at all meetings and calls in which project is discussed. Review of all disclosure documents including Official Statement, preparation of all closing documents, management of execution and delivery of all closing documentation, certificates, instructions and opinions. Relationship to client: Bond Counsel Role of the firm: Bond Counsel and Disclosure Counsel for Riverside Unified School District CFD No. 21 Improvement Area No. 1 Dollar value of the services: $5,435,000 Dollar value of the fee: $77,000 Description of services: Preparation of all legislative approvals required for formation of CFD, change proceedings and issuance of bonds, negotiation of agreements with developer and parties to joint community facilities agreements, attendance at all meetings and calls in which project is discussed, preparation of all legal documents, preparation of all disclosure documents including Official Statement, City disclosure certificate and developer disclosure certificate, preparation of all closing documents, federal tax review and advice, management of execution and delivery of all closing documentation, certificates, instructions and opinions. Relationship to client: Bond Counsel and Disclosure Counsel REFERENCES OF CALIFORNIA GOVERNMENT AGENCIES Please do not hesitate to contact any of the following references for a more in-depth discussion of our ability to provide bond and disclosure counsel services for the City. Reference Project Description City of Corona Kim Sitton, Finance Director (951) 279-3532 kim.sitton@cononaca.gov Bond Counsel – Corona CFD No. 2018-1 (Bedford) – Establishment of capital facilities funding plan for development and the negotiation of acquisition, construction and funding agreement. Conduct the formation and amendment proceedings, and bond issuance. Assist the City with administrative matters relating to disclosure and special tax levies. Advice on federal tax issues. Project Dates: Ongoing, primary services: June - September 2024 Staff assigned: Kim Byrens, Jennifer Bradlee, Anne McClure Final outcome: Bonds issued 2018, 2020 and 2024 bbklaw.com 9 CITY OF LA QUINTA Reference Project Description Jurupa Community Service District Steve Popelar, Director of Administrative Services and Finance (951) 685-7434 spoppelar@jcsd.us Bond Counsel – Currently CFD No. 60. Establishment of capital facilities funding plan for development throughout the District and the negotiation of acquisition, construction and funding agreements. We are currently on CFD No. 60 within the District. We conduct the formation, amendments, and administration of the CFDs. Advice on federal tax issues. We have acted as bond counsel on all of the CFDs within the District. Project Dates: Ongoing, primary services: March - June 2024 Staff assigned: Kim Byrens, Jennifer Bradlee, Anne McClure Final outcome: In process City of Paso Robles Ryan Cornell, Finance Director (805) 237-3999 ext. 6650 rcornell@prcity.com Bond Counsel and Disclosure Counsel – CFD No. 2022-1 (Olsen Ranch) – Establishment of capital facilities funding plan for development and the negotiation of acquisition, construction and funding agreement. Conduct the formation and amendment proceedings. Assist City with continuing negotiations with developer Working on amendments and other administrative matters toward bond issuance. Project Dates: Ongoing , primary services: March –July 2022 Staff assigned: Kim Byrens and Jennifer Bradlee Final outcome: Formation completed, amendments continuing due to changes in development plan. City of Galt Michael Selling, Public Works Director (209) 366-7265 mselling@cityofgalt.org Bond and Disclosure Counsel – CFD No. 2020-2 (Liberty Ranch) – Establishment of capital facilities funding plan for development and the negotiation of acquisition, construction and funding agreement. Conduct formation proceedings and bond issuance and administrative matters relating to tax levies and continuing disclosure. Advice on federal tax issues. Project Dates: March 2020 - Present Staff assigned: Kim Byrens and Jennifer Bradlee Final outcome: Bonds issued in 2023, new issue pending. Riverside Unified School District Erin Power, Assistant Superintendent, Business Services (951) 788-7135 epower@riversideunified.org Bond and Disclosure Counsel – Establishment of premium fees through CFDs for School Facilities. Serve as bond and disclosure counsel, administrative counsel for disclosure issues and special tax levies. Advice on federal tax issues Project Dates: Ongoing, primary services: September 2005 - Present Staff assigned: Kim Byrens, Mrunal Shah, Jennifer Bradlee, Anne McClure Final outcome: Multiple new money and refunding CFD financings issued; 2024 Refunding Bonds, CFD No. 21 IA No. 1 2025 Special Tax Bonds, two new bond issues pending. bbklaw.com 10 CITY OF LA QUINTA FEE SCHEDULE As a leading public law firm in California, BBK has a longstanding commitment to efficient and cost- effective delivery of legal services. We are able to address complex legal issues with creativity, speed, efficiency and accuracy at a fair and reasonable cost. Our services for the formation of the CFD and the negotiation of agreements with the developer and any other public agencies will be charged on an hourly basis at our special counsel rates. Such fees will be paid from the deposit to be made by the developer and held by the City, and are anticipated to be $40,000. We generally structure our fees on a fixed basis based upon the size and complexity of the transaction. Based on our current understanding of the issuance of the CFD Bonds and the involvement of BBK attorneys in drafting documents relating to the issuance of the CFD Bonds and delivering our legal opinion, our Bond Counsel fee, including reimbursement for costs, would be a minimum of $35,000 for a small issue of $5,000,000. However, such fees will increase based upon several variable factors relating to the bond issue and the time of the attorneys involved. Our Disclosure Counsel fee will be a minimum amount of $30,000 and a maximum amount of $65,000 depending upon the ultimate size and disclosure requirements of the residential development securing the CFD Bonds. If we are awarded the roles of both bond and disclosure counsel we would reduce our fees by $5,000. Our fee proposal is a firm offer, valid for 90 days following the deadline for submittal to the City. Hourly Rates For services performed apart from a bond transaction, our team’s hourly rates are: Personnel Hourly Rate Mrunal Shah, Partner $605 Kimberly Byrens, Partner $655 Jennifer Bradlee, Of Counsel $500 John Rottschaefer, Partner $690 Such hourly rates shall increase by three percent each year on July 1, commencing with July 1, 2026. bbklaw.com 11 CITY OF LA QUINTA Cost Reimbursement Our fees include all routine word processing, secretarial costs, and office costs associated with the provision of legal services, including facsimile transmittals and telephone charges. Reimbursement of costs advanced by us on behalf of the client, as well as other expenses, will be billed in addition to the amount billed for fees. These currently include, but are not limited to, extraordinary photocopy charges at $0.25/page; producing or reproducing photographs, documents and other items necessary for legal representation; and computer research. Additionally, costs include the preparation of transcript books for each transaction; such costs shall not exceed $2,000. The amount of reimbursable expenses does not include travel expenses relating to any rating trip or meeting with bond issuance companies. If the City plans travel, we will attend scheduled meetings and expect to be compensated for our travel-related expenses. Requested Exception to the City’s Agreement for Contract Services We request that the following modification be made to the City’s Agreement for Contract Services: Exhibit F.1.b. Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Contracting Party shall indemnify, defend (with counsel selected by City), and hold harmless the Indemnified Parties from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses) incurred in connection therewith and costs of investigation, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the negligent performance of this Agreement by Contracting Party or by any individual or entity for which Contracting Party is legally liable, including but not limited to officers, agents, employees, or subcontractors of Contracting Party. LIST OF COMPLEMENTARY SERVICES OFFERED In addition to the preparation and publication of the disclosure document, BBK can provide ongoing training and counsel for the purpose of ensuring that the City complies with its initial and ongoing disclosure obligations. We can also provide any services with respect to SEC enforcement actions, should the City ever require such services. Pricing for such trainings or complementary services is available upon request depending on the type of service needed. bbklaw.com 12 CITY OF LA QUINTA STAFFING AND PROJECT ORGANIZATION BBK proposes to staff the CFD projects with partners Mrunal Shah and Kim Byrens , as well as Of Counsel Jennifer Bradlee, in the Public Finance practice group. Any bond issuance will be additionally staffed with partner John Rottschaefer, who focuses his practice on the federal taxation of municipal bonds. Mrunal Shah Mrunal M. Shah | Partner mrunal.shah@bbklaw.com | Biography Mrunal Mehta Shah serves as bond, special and disclosure counsel for a variety of transactions representing public agencies throughout the State of California. She has the distinction of being lead bond counsel for the WRCOG HERO and PACE Programs as well as the CEDA Bond Program. Mrunal’s experience includes the financing and refinancing of Mello-Roos Bonds, assessment district bonds, certificates of participation, lease revenue bonds, enterprise revenue bonds, general obligation bonds, tax allocation bonds, pension obligation bonds and property assessed clean energy bonds. Additionally, she is a leader in the field of “green” financings. Her CFD clients include the Cities of Upland, Laguna Beach, San Marcos, Azusa, and San Bernardino, and include other special districts such as Southgate Recreation and Park District, Valley Center Municipal Water District. Mrunal earned a bachelor’s degree from the University of California, San Diego And she received her law degree from Tulane University. Mrunal is the practice group leader of the firm’s Public Finance practice and serves as a co-chair on the firm's Diversity, Equity & Inclusion Committee. bbklaw.com 13 CITY OF LA QUINTA Kim Byrens Kimberly A. Byrens | Partner kim.byrens@bbklaw.com | Biography Kim Byrens works on a broad variety of transactions as bond, underwriter’s or disclosure counsel. Such financings include Mello-Roos Bonds (CFDs), sales tax revenue bonds, Marks-Roos Joint Financing Authority lease or enterprise revenue bonds, revenue bonds, tax allocation bonds, and certificates of participation. She has participated in many competitive and negotiated financings. Kim serves as bond counsel to municipal clients all over the State of California. She has assisted development as bond counsel for Community Finance Districts, including very large CFDs in suburban communities experiencing rapid growth and requiring new infrastructure. Her CFD clients include the City of Chula Vista, the City of Azusa, Jurupa Community Services District, Riverside Unified School District, the City of Corona, Elsinore Valley Municipal Water District, the City of Paso Robles, the City of Galt, and the City of Palm Springs. She has also served as bond counsel for several complex special tax bond restructures, which required creativity to revive development. Kim has assisted all of her clients with the establishment and maintenance of a debt program and regulatory compliance with federal tax law for tax- exempt bonds and 15c2-12 continuing disclosure compliance. She has worked on many structured financings, including variable rate demand obligations, commercial paper notes and the restructuring of these types of variable rate obligations. bbklaw.com 14 CITY OF LA QUINTA Jennifer Bradlee Jennifer Bradlee | Of Counsel jennifer.bradlee@bbklaw.com | Biography Jennifer Bradlee advises clients on a wide range of public projects from start to finish, or at various points as needed during project progress. Jennifer serves as bond, special, disclosure and underwriter’s counsel in financings for public agencies throughout California. She has comprehensive experience in public finance, taxation, facilities and business, and local government issues. Jennifer advises clients on a variety of matters, including facilities funding, public agency bonds, bond elections, public contracts, Mello-Roos community facilities districts, lease financings, taxation and other transactions. Jennifer earned a bachelor’s degree from Saint Mary’s College of California. She received her law degree from Santa Clara University School of Law and earned a LL.M. in taxation from the University of San Francisco School of Law. bbklaw.com 15 CITY OF LA QUINTA John Rottschaefer SUBCONTRACTING SERVICES At this time, BBK does not anticipate utilizing any subcontractors for any part of the scope of services included within the City’s RFQ. DISCLOSURES Like other large law firms, BBK has been sued occasionally by clients alleging malpractice. None of the attorneys listed in this proposal have been named in any lawsuits or complaints in the past five years. There have been no actions against matters relating to the Public Finance department in the last five years. Lawrence Jay Jacobson; Darlene Anne Bolivar v. Lavine & Associates CPA, Inc., a California corporation; Jon M. Lavine, an individual; Lois W. Williams, an individual; Bruce G. Holden, an individual; Best, Best & Krieger, LLP, a California Limited Liability Partnership; Gordon Rees Scully Mansukhani, LLP, a California Limited Liability Partnership; Nexus Development Corporation, a Delaware corporation; NDC, Long Beach, LLC, a dissolved Delaware Limited Liability Corporation; Curtis r. Olson, an individual; Matthew B. John R. Rottschaefer | Partner john.rottschaefer@bbklaw.com | Biography John Rottschaefer handles federal tax matters with respect to municipal bonds and enjoys a well-established reputation throughout California in this highly distinct field. He is a partner in the Public Finance practice group of BBK. John provides technical advice with respect to many derivative products, forward purchases, swaps, sales-of-call rights and other unique financing methods. He actively participates in structuring transactions and the various tax, legal and policy considerations involved. John has been engaged throughout his practice to assist agencies with compliance of federal tax-exempt requirements, restructures of defeasance escrows and has help guide clients through IRS audits of tax-exempt bonds. bbklaw.com 16 CITY OF LA QUINTA Kaufman, an individual; Larry D. Vince, an individual; Scott R. Magee, an individual; Sandra J. Hartness, an individual; Asset Investments, Inc., a dissolved California corporation. Orange County Superior Court Case No. 30-2022-01269337-CU-RI-WJC. The plaintiffs are beneficiaries of a family trust. BBK attorney Bruce Holden represented the trustee of the family trust in administering the trust. Mr. Holden left BBK to join a different law firm over 10 years ago. The plaintiffs allege that Mr. Holden conspired with the trustee to misuse trust assets. The plaintiffs sued BBK as well as Mr. Holden’s new law firm. BBK denies the allegations and intends to vigorously defend itself in the lawsuit. Daniel Horwath, individually and as trustee of the Daniel & Rosa Horwath Family Trust Dated September 1, 2000, and as liquidating member of Violet Street Properties, LLC v. S&H Packing & Sales Co., Inc., a California corporation; Robert Underwood, an individual; Vido Artukovich, an individual; Buchalter, a professional corporation; Hill, Farrer & Burrill, LLP; Peter Knepper, an individual; BuxBaum HCS, LLC, a California limited liability company; Best Best & Krieger LLP; and Does 1-100, inclusive. Los Angeles County Superior Court case number 22STCV37042. This lawsuit is part of an intra-family corporate governance dispute. The Plaintiff sued BBK and two other large law firms, along with multiple individuals associated with a corporation. The lawsuit alleges that the individuals improperly paid significant legal fees to the three law firms, and that the law firms conspired with the corporate directors to do so. BBK’s position is that it performed appropriate legal services to earn the fees paid. BBK intends to defend the case vigorously. In re Matter of Susan S. Irving, v. Best Best & Krieger LLP, a business entity, form unknown; Donald F. Zimmer, an individual employed or formerly employed at Best, Best & Krieger; Christopher L. Carpenter, an individual employee or formerly employed at Best, Best & Krieger; and Does 1-10, inclusive. San Bernardino County Superior Court, Case No. CIVSB2409448, March 20, 2024. This is a complaint for damages for an alleged malpractice stemming from an estate planning that occurred in 2010. On June 18, 2024, Mr. Donald Zimmer and Mr. Christopher Carpenter were dismissed from the matter with prejudice. BBK intends to vigorously defend the matter. Conflicts of Interest Statement BBK maintains a detailed database of client information. Before proposing to represent a new client, the database is accessed to determine whether any conflicts of interest exist. Additionally, each attorney is emailed a description of the proposed representation and asked to comment on any potential conflicts. This database is overseen and managed by our firm’s Billing and Client Information Department. After checking the database and consulting our attorneys, we have concluded that BBK does not have any actual conflict of interest that would disqualify us from serving as legal counsel for the City of La Quinta. However, BBK does represent other clients on matters where there is the potential for a future conflict to arise with the City of La Quinta. First, BBK represents its longtime client Coachella Valley Association of Governments on the CV Link Project that could possibly involve the City of La Quinta. Second, BBK represents various clients on water matters that could possibly involve the City of La Quinta. For these reasons, we will need the City of La Quinta to provide an advance waiver to represent its other clients should a conflict arise in the future. bbklaw.com 17 CITY OF LA QUINTA EXPLANATION OF METHODOLOGY Services Related to the Establishment of Community Facilities Districts Our services for forming a CFD start with meeting the client and its Municipal Advisor. The purpose is to set goals of the City for the essential needs from the development in addition to the funding of basic public improvements or additional services. Following that meeting, services will include:  Working with the City team and the developer team to ensure that there is a good understanding of the timing and scope of the public facilities to be funded through the CFD. All of this will be at the timeframe dictated by the City’s team.  Reviewing the special tax formula to be prepared for each CFD and consulting with the City, the Municipal Advisor and the Special Tax Consultant to ensure the goals of the City are met. We will attend all meetings at which the special tax is discussed as well as all meetings at which the facilities to be financed are discussed.  Preparing all legislative approvals and notices for the formation of the CFD. We will prepare any scripts for the Mayor to conduct the hearing and election. We will also assist City staff with the preparation of reports and presentations to Council and assist the City Clerk with the conduct of the election. We will prepare all resolutions, ordinances and other documentation for the submission of the levy of special taxes to the County Treasurer-Tax Collector. This will be deliverable at the times set out in a calendar of events which we will assist the Municipal Advisor in preparing. For each action to be taken in the formation of the CFD by the Council, a BBK attorney will attend.  Preparing the funding agreements necessitated by the development and the formation of the CFD. If any other public agency is going to receive proceeds of the bonds, we will prepare the joint communities facilities agreement between the City, the developer and the other public agency. Services Related to the Community Facilities Districts Bond Issuance Our services related to the CFD bond issuance will include:  Working with the City and the financing team to set the goals and prepare the approving resolution and financing documents for review by the entire team. Upon establishing the basic terms of the bonds and the not-to-exceed parameters of the borrowing, we will present items to the Council for approval. Deliverable items during this stage of the process will include the fiscal agent agreement/indenture, approving resolution of the city council, bond purchase agreement and the Official Statement.  Prior to bringing the financing to Council for review, assisting the City team with the preparation of any presentations or reports to Council and will attend all meetings at which the financing is discussed.  Upon the successful sale of the securities by the underwriter, finalizing the bond terms in the fiscal agent agreement/indenture; prepare and circulate the closing certificates and opinions to be delivered by the various participants in the transaction. After comments have been received by bbklaw.com 18 CITY OF LA QUINTA the participants, we will circulate all documents and certificates for signature by the relevant parties.  Conducting a pre-closing meeting the day prior to the delivery of the bonds at our offices, and delivering the pre-closing materials virtually to all participants in the transaction. We will also deliver our final opinion as bond counsel, any additional or supplemental opinions requested by the underwriter. Upon successful delivery of the bonds, we will finalize the transcript and deliver it to the financing participant in a digital closing binder. we will provide the City with additional transcripts in the format of its choice, and will always make ourselves available to discuss ongoing administrative issues with respect to the bonds. Disclosure Counsel Services We understand the City is seeking disclosure counsel services that include, but are not limited to conferring with the City and other financing team members, including the developer, appraiser, market absorption consultant and the City Municipal Advisor, regarding the financing and the scope of due diligence inquiry to be conducted; preparing the drafts of a Preliminary Official Statement relating to the sale of the CFD bonds and advising the City as to the scope of disclosure, the sources of all information, and its compliance with applicable securities laws; attending administrative or financing team meetings at which the financing is discussed when requested to attend or when attendance is deemed necessary; facilitating the printing of the Preliminary and Final Official Statements; any additional support or documentation related to the role of Disclosure Counsel and required for closing and ongoing advice on continuing disclosure requirements and prepare certificates and agreements to comply with applicable securities laws. As part of our disclosure counsel services, we will provide training to the City’s finance and administration staff for initial and continuing disclosure compliance. Our role as disclosure counsel will include the following:  Assemble and prepare preliminary and final official statement; undertake such independent inquiry as may be necessary at the time of initial offering to render an appropriate disclosure opinion. This includes review, for disclosure purposes, reports of the appraiser and market absorption consultant and developer, together with any intended investment arrangement for the proceeds of the proposed bonds.  Review legal documents and approving resolutions prepared by bond counsel for disclosure purposes and in particular review compliance with the disclosure of Rule 15c2-12.  Review materials to be distributed at any investor presentations.  Render an appropriate disclosure counsel opinion which will describe the nature of our review and inquiries and indicate that the issuer has appropriately disclosed all material information with respect to the financing in the disclosure document.  Provide, as required, legal advice with respect to an “event” disclosure under Rule 15c2-12  Review the City’s process for approval of the Official Statement and make such recommendations, if necessary, to comply with the anti-fraud provisions of the 1933 Act, in light of recent actions against tax-exempt issuers by the Securities Exchange Commission. bbklaw.com 19 CITY OF LA QUINTA NON-COLLUSION AFFIDAVIT Please find on the following page an executed Non-Collusion Affidavit, executed by an official authorized to bind the firm. Page 7 of 7 ATTACHMENT 1 NON-COLLUSION AFFIDAVIT FORM Must be executed by submitter and submitted with the presentation I, ________________________________________ (name) hereby declare as follows: I am _________________________________ of ______________________________, (Title) (Company) the party making the foregoing presentation, that the presentation is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the presentation is genuine and not collusive or sham; that the submitter has not directly or indirectly induced or solicited any other submitter to put in a false or sham presentation, and has not directly or indirectly colluded, conspired, connived, or agreed with any submitter or anyone else to put in a sham presentation, or that anyone shall refrain from proposing; that the submitter has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the presentation price of the submitter or any other submitter, or to fix any overhead, profit, or cost element of the presentation price, or of that of any other submitter, or to secure any advantage against the public body awarding the agreement of anyone interested in the proposed agreement; that all statements contained in the presentation are true; and, further, that the submitter has not, directly or indirectly, submitted his or her presentation price or any breakdown thereof, or the contents thereof, or divulged information or data relative hereto, or paid, and will not pay, any fee to any corporation, partnership, company, association, organization, presentation depository, or to any member or agent thereof to effectuate a collusive or sham presentation. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Submitter Signature: __________________________________________________ Submitter Name: __________________________________________________ Submitter Title: __________________________________________________ Company Name: __________________________________________________ Address: __________________________________________________ 䵲畮慬⁍⸠卨慨 偡牴湥爠 䵲畮慬⁍⸠卨慨 ㌳㤰⁕湩癥牳楴礠䅶攮Ⱐ㕴栠䙬潯爬⁒楶敲獩摥Ⱐ䍁‹㈵〱 Best Best & Krieger LLP