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FIN AN CIAL AD VISa R Y CONTRACT (M.A.C. Form C-l Revised. Standard Form of A.qreement between Political Subdivision and Financial Advisor Covering Issuance of Securities. Form approved by the Municipal Advisory Council for Use of Members Only.) 50 Date July 24, 1984 To: Mayor and City Council City of San Marcos San Marcos, Texas Gentlemen: 1. We understand that you are contemplating the issuance of securities of the kinds, in the amounts, and for the purposes indicated as foHows: An undetermined amount of bonds and/or Certificates of Obligation and that in connection with the issuance of these securities you desire this proposal from us to perform professional services in the capacity of Financial Advisor for "your Cl ty (hereinafter called "Issuer"). 2. By this proposal we offer our professional services and our facilities as Financial Advisor for the issuance and sale of the above-described securities, and in that capacity we agree to perform the following duties, and to perform such other duties, as, in our judgment, may be necessary or advisable: a. We will make a survey of the financial resources of the Issuer to determine the extent of its borrowing capacity. This survey will include an analysis of the existing debt structure as com- pared to existing and projected sources of income which may be pledged to secure payment of debt service, and where appropriate, will include a study of the trend of the assessed valuation of the Issuer, the Issuer's taxing power, and the present and estimated future taxing requirements. If the revenues of a system or facility are to be pledged to repayment of the securities in ques- tion, the survey will take into account any outstanding obJigations which are payable from the net revenues thereof, additional net revenues to arise from any proposed rate increase, and the additional net revenues as projected by your consu]ting engineers as a resu]t of the improve- ments to be financed by the securities in question. We wi11 a]so take into account your future financing needs and operations as projected by your staff and/or your consulting engineers and other experts. b. On the basis of the information developed by the survey described in the above and foregoing paragraph, and on the basis of other information and experience availab]e to us, we will submit our written recommendations on the financing in question. Our pIan wíl1 inc]ude recommenda- tions as to the date of issue, interest payment dates, schedu]e of principa] maturities, options cf prior payment, and any other necessary additiona] security provisions designed to make the is- sue more attractive to investors. AU recommendations will be based on our best professional judgment, with the goal of designing securities which can be sold under terms most advan- tageous to Issuer, and at the ]owest interest cost consistent with aU other considerations. c. We will advise you of current bond market conditions, forthcoming bond issues, and other gen- eral information and economic data which might norma]]y be expected to inf]uence the interest rates or bidding conditions, so that the date for the sa]e of the securities can be set a time, which, in our opinion, wiII be favorable. d. If it is necessary to hold an election to authorize the securities, we will, under the direction of the bond attorneys, assist in coordinating the assembly and transmittal to the bond attorneys of such data as may be required for the preparation of the necessary petitions, orders, resolutions, notices and certificates in connection with the ejection. e. We will coordinate the preparation and submission of the Officia] Notice of Sale, the Official Statement or Offering Statement, and such other market documents which you may require. We will a]so supervise preparation of the uniform bid form, containing provisions recognized by the municipal securities industry as being consistent with the securities offered for sale. We will submit to you a11 such offering documents, inc]uding the Official Statement, for your proper examination, approva] and certification. After such examination, approval and certification we will furnish you with a supply of such documents and shall mail a set of the same to a ,list of prospective bidders, a copy of which list shall be submitted to you upon request. We will also supply sufficient copies of the Official Statement or Offering Statement to the purchaser of the securities in accordance with the terms of the Notice of Sale.