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Item N1 .nr .. .. The PFM Group , Public FInancI.. MMIlgemenI. Inc. PFM AIIet Management LLC PFM AdvIIors Two Logan Square Sule 1 eoo 1 a* & Arch StI'Hts Philadelphia, PA 19103-2770 215587-8100 215587-4180 fax www.pfm.com September 16, 2009 Monroe County Board of Commissioners 1100 Simonton Street Key West, FL 33040 RE: Procurement of an Interest Rate Cap Dear Commissioners, The purpose of this letter is to confirm our agreement that PFM Asset Management LLC, (UPFMAM"), will serve the Monroe County (the "County") as Investment Advisor in conjunction with the structuring of an interest rate cap (the "Cap"). As Investment Advisor with respect to the Cap, PFMAM will make available qualified professionals to deliver the services described in this paragraph. PFMAM will analyze and model alternative cap structures, review and comment on all cap documentation and business terms, assist in developing terms for a request for bids, review competitive bids and make a recommendation for award, and coordinate the closing of the transaction. Additionally, PFMAM will provide the County with a memorandum that summarizes the results of our engagement. The services under this engagement are additional to those services included in the Agreement entered April 21, 2004, as amended and extended, between the County and our affiliate, Public Financial Management, Inc. This engagement is expected to be completed prior to November 30, 2009. At the completion of this engagement, as evidenced by the settlement of the Cap, PFMAM will have no further responsibility related to the Cap, unless otherwise agreed to under separate contract. Upon the successful conclusion of this engagement, you agree to pay us a fee of $15,000. All fee arrangements will be fully disclosed in writing. PFMAM is an investment advisor, registered under the Investment Advisers Act of 1940. PFMAM agrees that it will not deal with itself or with any other affiliated company or individual in making purchases or sales of the Cap or any securities pursuant to this engagement, nor will we take a long or short position in securities subject to purchase or sale in connection with the Cap. We confirm that we have no interest in the purchase or sale of the Cap other than as described in this letter agreement and except for any financial advisory agreement between the County and our affiliate, Public Financial Management, Inc. PFMAM warrants that it has delivered to the County, at least 48 hours prior to the execution of this letter agreement, PFMAM's current Securities and Exchange Commission Form ADV, Part n (pFMAM's disclosure statement). The County acknowledges receipt of such disclosure statement at least 48 hours prior to the execution of this letter agreement. You may terminate this agreement in the event of any material breach immediately upon written notice to PFMAM. N ~FM" ~ Monroe COlin!} S eptell/her 15, 2009 Pagt 2 Our obligations and responsibilities as described in this letter agreement are not assignable without prior written consent of the County. Please have an authorized official of the County sign a copy of this letter and return it to us to acknowledge the terms of this engagement Sincerely, PFM ASSET MANAGEMENT LLC ~~K~1~J( Managing Director cc: Sergio Masvidal, Public Financial Management, Inc. Accepted by: MONROE COUNTY, FLORIDA Authorized Signature Name Title Date .IV The PFM Group " .." Public Financial Management. Inc. PFM Asset Management LLC PFM Advisors Two Logan Square Suite 1600 18" & Arch Streets Philadelphia. P A 19103.2770 215567-6100 215567-4180 fax www.pfm.com September 15, 2009 Marva Green Assistant Clerk Monroe Cou Clerk of Courts 500 White ead Street BOLC- Key W t, FL 33040 m n @monroe-clerk.com RE: Procurement of an Interest Rate Cap Dear Marva, The purpose of this letter is to confirm our agreement that PFM Asset Management [,LC, (UPFMAM"), will serve the Monroe County (the "County") as Investment Advisor in conjunction with the structuring of an interest rate cap (the "Cap"). As Investment Advisor with respect to the Cap, PFMAM will make available qualified professionals to deliver the services described in this paragraph. PFMAM will analyze and model alternative cap structures, review and comment on all cap documentation and business terms, assist in developing terms for a request for bids, review competitive bids and make a recommendation for award, and coordinate the closing of the transaction. Additionally, PFMAM will provide the County with a memorandum that summarizes the results of our engagement. This engagement is expected to be completed prior to November 30, 2009. At the completion of this engagement, as evidenced by the settlement of the Cap, PFMAM will have no further responsibility related to the Cap, unless otherwise agreed to under separate contract. Upon the successful conclusion of this engagement, you agree to pay us a fee of $15,000. All fee arrangements will be fully disclosed in writing. PFMAM is an investment advisor, registered under the Investment Advisers Act of 1940. PFMAM agrees that it will not deal with itself or with any other affiliated company or individual in making purchases or sales of the Cap or any securities pursuant to this engagement, nor will we take a long or short position in securities subject to purchase or sale in connection with the Cap. We confirm that we have no interest in the purchase or sale of the Cap other than as described in this letter agreement and except for any financial advisory agreement between the County and our affiliate, Public Financial Management, Inc. PFMAM warrants that it has delivered to the County, at least 48 hours prior to the execution of this letter agreement, PFMAM's current Securities and Exchange Commission Form ADV, Part II (pFMAM's disclosure statement). The County acknowledges receipt of such disclosure statement at least 48 hours prior to the execution of this letter agreement. You may terminate this agreement in the event of any material breach immediately upon written notice to PFMAM. M"",., c...g S"..., 16, 2009 P." 2 Our obligations and responsibilities as described in this letter agreement are not assignable without prior written consent of the County. Please have an authorized official of the County sign a copy of this letter and return it to us to acknowledge the terms of this engagement. Sincerely, PFM ASSET MANAGEMENT LLC cc: Sergio Masvidal, Public Financial Management, Inc. Accepted by: MONROE COUNTY, FLORIDA Authorized Signature Name Title Date