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Jones Hall - Agreement for 2013 Refunding Lease Revenue BondsAGREEMENT BETWEEN THE GILROY PUBLIC FACILITIES FINANCING AUTHORITY AND JONES HALL, A PROFESSIONAL LAW CORPORATION, FOR BOND COUNSEL AND DISCLOSURE COUNSEL SERVICES IN CONNECTION WITH 2013 REFUNDING LEASE REVENUE BONDS This AGREEMENT is entered into as of July 1, 2013, between the GILROY PUBLIC FACILITIES FINANCING AUTHORITY (the "Authority ") and JONES HALL, A PROFESSIONAL LAW CORPORATION, San Francisco, California ( "Attorneys "). BACKGROUND: 1. The Authority and the City of Gilroy (the "City ") have previously authorized the issuance of Gilroy Public Facilities Financing Authority Refunding Bond Anticipation Notes, Series 2010, in the aggregate principal amount of $22,840,000 (the "2010 Notes "), in order to refinance obligations originally issued for the construction of a police station, a fire station, a corporation yard and a playfield sports complex. 2. The Authority is proceeding to issue its Gilroy Public Facilities Financing Authority Refunding Lease Revenue Bonds, Series 2013 (the "Refunding Bonds ") for the purpose of providing funds to refinance the 2010 Notes. 3. The Authority requires the assistance of bond counsel and disclosure counsel in connection with the issuance of the Refunding Bonds, and Attorneys have agreed to provide such services. AGREEMENT: In consideration of the foregoing and the mutual covenants contained in this Agreement, the Authority and Attorneys agree as follows: Section 1. Identification of Client. Attorneys shall represent the Authority and the City in connection with the proceedings for the authorization, issuance and sale of the Refunding Bonds. Attorneys shall not represent, and shall owe no duties to, any other party than the Authority and the City, including but not limited to the financial advisor, trustee and underwriter of the Refunding Bonds. Section 2. Duties of Attorneys as Bond Counsel. Attorneys shall perform all of the following services as bond counsel to the Authority and the City in connection with the issuance and sale of the Refunding Bonds: Consultation and cooperation with the Authority and City members, staff and counsel, with any financial consultant, underwriter and other professional firms engaged by the Authority or the City with respect to the issuance of the Refunding Bonds, and assisting such persons in the formulation of a coordinated financial and legal financing from the proceeds of the Refunding Bonds. Preparation of all legal proceedings deemed necessary or advisable by Attorneys for the authorization, issuance and delivery of the Refunding Bonds; including preparation of (i) any documentation required for the issuance of the Refunding Bonds by the Authority and the refunding of the 2010 Notes, including a Trust Agreement authorizing the issuance of the Refunding Bonds, resolutions authorizing the issuance and sale of the Refunding Bonds and approving related documents, all documentation required to be executed by the Authority in connection with the delivery of the Refunding Bonds to the underwriter, and any agreements providing collateral security for the Refunding Bonds except as may be within the scope of responsibility of other attorneys on the transaction, (ii) all necessary filings with the California Debt and Investment Advisory Commission, (iii) all certificates, requisitions, receipts and other documents required in connection with the delivery of the Refunding Bonds to the original purchaser thereof, and (iv) all other proceedings of the Authority and the City incidental to or in connection with the issuance, sale and delivery of the Refunding Bonds. Upon the completion of proceedings to the satisfaction of Attorneys, providing a legal opinion (i) unqualifiedly approving in all respects the legality of all proceedings of the Authority for the authorization, issuance and delivery of the Refunding Bonds and approving the legality of the related leases and other agreements to which the Authority or the City is a party, and (ii) stating that interest on the Refunding Bonds is exempt from federal and State of California personal income taxation. This opinion will be addressed to the Authority, the underwriter and other parties may be permitted to rely upon this opinion by Attorneys. • Attending all meetings deemed necessary by Attorneys in the performance of the services hereunder, or requested by Authority or City staff. • Any and all legal consultation requested by the Authority or the City concerning the issuance of the Refunding Bonds, the lease agreement, and any resolutions, certificates, agreements and other documents relating to the authorization, issuance and delivery of the Refunding Bonds. • Such other and further services as are customarily performed by bond counsel on similar tax - exempt financings. Section 3. Duties of Attorneys as Disclosure Counsel. Attorneys shall perform all of the following services as disclosure counsel to the Authority and the City in connection with the issuance and sale of the Refunding Bonds: • Participating in the preparation of the Official Statement by consulting with representatives of the Authority, the City, the underwriter, the financial advisor and others, gathering information for disclosure in the Official Statement, and assisting in drafting the Official Statement. -2- Drafting a continuing disclosure certificate of the Authority and the City and a purchase contract among the Authority, the City and the underwriter for the sale of the Refunding Bonds. Rendering an opinion to the Authority, the City and the underwriter stating that based upon Attorneys' participation in the preparation of the Official Statement, nothing has come to their attention to lead them to believe that the Official Statement (except for any financial statements and the financial and statistical data or forecasts, numbers, charts, estimates, projections, assumptions or expressions of opinion included therein, and The Depository Trust Company and its book -entry system and information in the Appendices, as to which no view need be expressed) as of the date of the Official Statement or the date thereof contains any untrue statement of a material fact or omits to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. Section 4. Compensation. For the Bond Counsel services of Attorneys listed in Section 2 in connection with the Refunding Bonds, the Authority will pay Attorneys a fee equal to the sum of the following (expressed as a percentage of the principal amount of the Refunding Bonds and any original issue premium on the sale thereof): 1 % of the first $1 aggregate million principal amount, plus 1/4% of the next $5 million aggregate principal amount, plus 1/8% of the remaining principal amount. For the Disclosure Counsel services of Attorneys listed in Section 3 in connection with the Refunding Bonds, the Authority will pay Attorneys a flat fee equal to $35,000. In addition, the Authority shall reimburse Attorneys for all out -of pocket costs and expenses incurred by Attorneys in connection with their services hereunder for messenger and delivery services, photocopying, legal publication, travel and the cost of preparing transcripts of the proceedings for closing purposes. Payment of said compensation is entirely contingent upon the successful issuance of the Refunding Bonds, and shall be payable solely from the proceeds of the Refunding Bonds, and from no other funds of the Authority or the City. Section 5. Responsibilities of Authority. The Authority shall cooperate with Attorneys and shall furnish Attorneys with certified copies of all proceedings taken by the Authority and deemed necessary by Attorneys to render an opinion on the validity of the Refunding Bonds. Attorneys shall not be liable to pay any costs and expenses incurred incidental to the actual issuance and delivery of the Refunding Bonds, including the cost and expense of preparing certified copies of proceedings required by Attorneys in connection with the issuance of the Refunding Bonds, the cost of rating agencies, all printing and publication costs, fees and expenses of parties other than Attorneys, costs and expenses of legal advertising and all other expenses incurred in connection with the issuance of the Refunding Bonds, which shall be paid by the Authority from the proceeds of the Refunding Bonds. -3- Section 6. Independent Contractor. Attorneys will act as an independent contractor in performing the services required under this Agreement, and under no circumstances will Attorneys be considered an agent, partner, or employee of the Authority or the City. Section 7. Liability Insurance. Attorneys shall maintain at their own expense at all times during the term of this Agreement policies of insurance, acceptable to the Authority and the City, covering its workers' compensation injuries, public liability and professional liability. Section 8. Termination of Agreement. This Agreement may be terminated at any time by the Authority with or without cause upon written notice to Attorneys. In the event of such termination, all finished and unfinished documents shall at the option of the Authority become its property and shall be delivered to the Authority by Attorneys. IN WITNESS WHEREOF, the Authority and Attorneys have executed this Agreement as of the date first above written. GILROY PUBLIC FACILITIES FINANCING THORITY Approved as to Form: Executive Director Gilroy City Attomoy's Office By: Attorney, JONES HALL, A PROFESSIONAL LAW CORPORATION _d_ Presidefit L _ p® CERTIFICATE OF LIABILITY INSURANCE 6/25/2013 DATE ) PRODUCER (415) 978 -3800 FAX: (415) 978 -3825 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION Calendar - Robinson Company, Inc. ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR PB0267063 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. 300 Montgomery St., Suite 888 San Francisco CA 94104 INSURERS AFFORDING COVERAGE NAIC # INSURED INSURER X- Sentinel Insurance Co., LTD 11000 JONES HALL, A PROFESSIONAL LAW CORPORATION INSURER B: Republic Indemnity Co of America 650 CALIFORNIA STREET, #1800 INSURER 0. INSURER D: SAN F CISCO CA 94108 INSURER E: vv v a.nr+aa �v THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OFSUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. I R I TR DD'L POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION n, TYPE OF INSURANCE LIMITS GENERAL LIABILITY EACH OCCURRENCE S 2,000,000 DAMAGE TO RENTED PREMISES Me occurrewel $ 11000,000 X COMMERCIAL GENERAL LIABILITY MEDEXP (Any one person) $ 1(),000 A j CLAIMS MADE XX OCCUR157SBANK7611 110/1/2012 10/1/2013 PERSONAL& ADV INJURY $ 2,0 00 000 GENERAL AGGREGATE S 4,000 000 PRODUCTS - COMPIOPAGG $ 4,000,000 GENL AGGREGATE LIMIT APPLIES PER: i X POLICY P O LOO AUTOMOBILE LIABILITY i ANY AUTO I COMBINED SINGLE LIMIT (Eaacc Weng $ 2, 000, 000 BODILY INJURY i$ leer person} A ALLOWNEDAUTOS 57915MK7611 10/1/2012 1 10/1/2013 SCHEDULED AUTOS i HIRED AUTOS 1 NON -OWNED AUTOS i i BODILY INJURY I (Perms [dent) $ X PROPERTY DAMAGE (Pet sodden!) S I I H GARAGELIABILITY AUTO ONLY -EA ACCIDENT $ i OTHER THAN EA ACC ! AUTO ONLY: AGG $ ANY AUTO $ EXCESS/ UMBRELLA LIABILITY OCCUR CLAIMS MADE i EACH OCCURRENCE j$ 1,000,000.. AGGREGATE S 1,000,000 �$ A ! DEDUCTIBLE 7SBANK7611 10/1/2012 10/1/2013 Hx $ $ RETENTION $ 30,000 B WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETORIPARTNEPJEXECUTIVE�'I I OFFICER/MEMBER EXCLUDED? (Mandatory In NH) 168749 -08 ; 4/1/2013 1 4/1/2014 X WC STATU- OTH- CRY E.L. EACH ACCIDENT $ 1,000,000 E,L.DISEASE - EA EMPLOYEE $ 1,000,000 E.L. DISEASE - POLICYLIAIIT 5 1 000 000 II es, describe under SPECIAL PROVISIONS below A OTHEREMPLOYEE BENEFITS 157SBANK763.1 10/1/2012 1 10/1/2013 1EACH CLAIM $2,000,000 BUSINESS PERSONAL I I AGGREGATE $4,000,000 PROPERTY T.TMTT $2,758,200 DESCRIPTION OF OPERATIONS/LOCATIONS I VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT/ SPECIAL PROVISIONS City of Gilroy, its officers, officials and employees are named as additional insureds on the general liability policy but only with respect to liability arising out of the named insured's operations or premises owned by or rented to the named insured with respect to formation of a landscape maintenance community facilities district. Note: 10 day notice of cancellation applies for non - payment of premium CE SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL K*$"XO(MAIL 3 0 DAYS WRITTEN City of Gilroy NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT,KKy,%)QXX0WXX%)W Attn: Teresa Mackx� 7351 Rosanna Street Gilroy, CA 95020 AUTHORIZEDREPRESENTATI back its. ACORD 25 (2009/01) t 01988 -2009 ACORD CORPORATION, All rights INS025 (googol).ol The ACORD name and logo are egiatered marks of ACORD _._ ... _., .... ___ ... . .... ___ ACORD CERTIFICATE OF INSURANCE July Z9, 2013 -_. THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO PRODUCER RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Herbert L. Jamison & Co., L.L.C. COMPANIES AFFORDING COVERAGE 100 Executive Drive West Orange, NJ 07052 COMPANY LETTER A Underwriters at Lloyd's of London Phone No. 973- 731 -0806 COMPANY � Fax No. 973 - 731 -3035 LETTER B COMPANY INSURED LETTER C Jones Hall, PC c0M PAN Y 650 California Street, 181p Floor LETTER D San Francisco, CA 94108 C ._. __..__ OMPANY LETTER E COVERAGES THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. "". POLICY ...POLICY LTH TYPE OF INSURANCE POLICY NUMBER EFFECTIVE EXPIRATION LIMITS :..... _.. ,,,....,_,T ..._ .._..____........_ ...,....__.... __ GENERAL LIABILITY PRODUCTS- COMPIOP AGG. rr F...._ COMMERCIAL GENERAL LIABILITY PERSONAL & ADV. INJURY CLAIMS MADE ❑OCCUR. EACH OCCURRENCE 3 ❑ OWNER'S & CONTRACTOR'S FIRE DAMAGE (Any one Fire) MED. EXPENSE (Any one person) $ PROT AUTOMOBILE LIABILITY COMBINED SINGLE ❑LIMIT ANY AUTO ❑ ALL OWNED AUTOS BODILY INJURY ❑ SCHEDULED AUTOS {Par Person }) � F-1 HIRED AUTOS BODILY INJURY ❑ NON -OWNED AUTOS (F'er Amident) $ ❑PROPERTY GARAGE LIABILITY DAMAGE _ ».__...,e. EXCESS LIABILITY -6 �u.,�._ ... EACH OCCURRENCE S $ ❑AGGREGATE UMBRELLA FORM ❑ OTHER THAN UMBRELLA FORM WORKER'S COMPENSATI ON STATUTORY LIMITS $ AND EACH ACCIDENT EMPLOYERS LIABILITY DISEASE- POLICY LIMIT DISEASE -EACH EMPLOYEE _. OTHER $250,000 deductible w/ Lawyers Professional Liability Y0052420a 2/25/13 2125/14 Limits of Liability of X Insurance $7,500,000!$7,500,000 DESCRIPTION OF OPERATIONS /LOCATIONSNEHICLES /SPECIAL ITEMS GERTIFICATI~ HOLDER CANCELLATION SHOI,LD ANY OF THP ABOVE DESCRIBED POLICIES BE CANCELLED OF OR[ THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO 'City of Gilroy MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO ,7351 Rosanna Street THE LEFT, BUT I=A E TO MAIL SUCH NOTICE OBLIGATION OR Lt I OF ANY KIND UPON THE COMPANY, SHALL IMPOSE NQ ITS AGENTS OR Gilroy, CA 95020 REPRESENTATIVE 4 Attn: Teresa Mack /,71/1 POLICY NUMBER: 57SBANK7611 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - DESIGNATED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name of Person or Organization: City of Gilroy, its officers, officials and employees (If no entry appears above, infonnation required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown in the Schedule as an insured but only with respect to liability arising out of your operations or premises owned by or rented to you. Copyright, Insurance Services Office, Inc. 1984