HomeMy WebLinkAboutContracts & Agreements_238-2025FIRST AMENDMENT TO AGREEMENT TO PERFORM PROFESSIONAL SERVICES
This first amendment ("First Amendment") to the agreement for professional services
("Agreement"), dated April 20, 2021, by and between the City of Redlands, a municipal
corporation and a general law city ("City"), and KNN Public Finance, LLC, a California limited
liability company ("Consultant"), is made and entered into this 16th day of December, 2025.
RECITALS
WHEREAS, the City and Consultant entered into the Agreement on April 20, 2021,
under which Consultant provides municipal and financial advisory services related to the City's
capital financing, debt management and related financial advisory needs; and
WHEREAS, the Agreement is currently set to expire in April 2026; and
WHEREAS, the City anticipates the issuance of Certificates of Participation (COPS) to
finance the construction of the City's Safety Hall and Fire Station No. 264, with an estimated
financing amount ranging from $70 million to $105 million; and
WHEREAS, to ensure continuity of service through completion of the financing
transaction, closing process, post -issuance work and procurement of future advisory services, the
City desires to extend the Agreement by eighteen (18) months, through October 2027; and
WHEREAS, the City and Consultant further desire to amend the Agreement to update the
compensation terns with a revised fee schedule reflecting updated hourly and fixed -transaction
fees, and to add reference to the fixed -transaction fee within the Compensation Article of the
Agreement.
NOW, THEREFORE, in consideration of the mutual covenants contained herein and for
other good and valuable consideration, the sufficiency of which is hereby acknowledged, the
parties agree as follows:
AGREEMENT
Section 1. Article 4 ("Performance of Services") subsection 4.1 of the Agreement, is
hereby amended to read as follows:
"4.1 Consultant shall perform and complete the Services in a prompt and diligent manner.
The initial tern of this agreement shall be for a period of three (3) years from the Effective Date
of this Agreement (the "Initial Term"). The City shall have the option to extend the Initial Tern
of this Agreement by two (2), additional, one-year terms and one (1) additional 18-month term
(each, an "Extended Term") on the same terms and conditions hereof, by providing written notice
to Consultant at least thirty (30) days prior to the expiration of the Initial Term or any Extended
Term. The Initial Term and any Extended Terms are collectively defined to herein as the "Term"
of this Agreement."
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Section 2. The "Fee Schedule" set forth in Exhibit "B" of the Agreement is hereby
amended as set forth in Attachment "1," which is attached hereto and incorporated herein by this
reference.
Section 3. All other provisions of the Agreement shall remain unchanged by this First
Amendment and in effect.
IN WITNESS WHEREOF, the parties have executed this First Amendment, to be effective
as of December 16, 2025.
CITY OF REDLANDS KNN PUBLIC FINANCE, LLC
By:
'!
y f
Mario Saucedo, Mayor Mark T. Young, Managing Director
ATTEST:
rpAne Donaldson, City Clerk
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ATTACHMENT "I"
EXHIBIT 'B"
FEESCHEDULE
Consultant's fees for such Services will be based upon the following hourly rates schedule:
Title
Hourly Fee*
Managing Director
$395
Director
$375
Vice President
$350
Assistant Vice President
$325
Associate
$300
Analyst
$275
*Subject to annual increases not -to -exceed 3% a year with
written approval from the Ci .
Hourly compensation will be capped annually at $50,000.
The following fixed transactions fees for debt offerings are separate from the hourly
compensation and will be billed in the event the City requires these services. Fixed transaction
fees, including reimbursement of out-of-pocket expenses, are contingent on the closing of a
transaction. Contingent fee structures do raise a potential conflict of interest, which is addressed
in our MSRB G-42 disclosure statement attached.
Transaction Type
. Fee Range
General Obligation Bonds
$35,000 - $60,000
Lease Revenue Bonds or COPS
$35,000 - $80,000
Enterprise Revenue Bonds
$35,000 - $60,000
Refunding Tax Allocation Bonds
$40,000 - $65,000
Special Assessment Bonds
$45,000 - $70,000
Mello -Roos Bonds
$45,000 - $70,000
Pension Obligation Bonds
$45,000 - $80,000
Reimbursement for a limited number of out-of-pocket expenses, such as conference call services,
color copying and statistical data obtained from outside sources, as well as air travel and hotels if
necessary, will be capped at $2,500 per transaction / debt offering.
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