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17-1017_BEST BEST & KRIEGER_Letter Agreement Indian Wells I;_i Sacramento (760)566-2611 (916)325-4000 Irvine BEST BEST &KRIEGER San Diego (949)263-2600 ATTORNEYS AT LAW (619)525-1300 Los Angeles Walnut Creek (213)617-8100 (925)977-3300 Ontario 3390 University Avenue,5th Floor,P.O.Box 1028,Riverside,CA 92502 Washington,DC (909)989-8564 Phone:(951)686-1450 I Fax:(951)686-3083 I www.bbklaw,com (202)785-0600 Kim A.Byrens (951)826-8273 kim.byrens@bbklaw.com October 17,2017 Ben Siegel City Manager City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Re: Bond Counsel Services to City of San Juan Capistrano 2017 Water Revenue Refunding—Private Placement Dear Ben: We are pleased to submit this letter to you in connection with our services as bond counsel to the City of San Juan Capistrano (the "City") relating to the proposed issuance of the City's above-captioned (the "Obligations") which will refinance outstanding Certificates of Participation originally issued in 2009 to finance the acquisition of improvements to the water enterprise of the City. The firm of Best Best & Krieger LLP will serve as bond counsel counsel on this matter and proposes to perform the following services on the basis set forth in this letter. • As bond counsel we will confer and consult with City staff on all matters relating to the financing. We will assist the City in identifying the most advantageous method of financing based upon our experience and we will attend all meetings of the City's staff, consultants and financial advisor at which financing methods are to be discussed and analyzed for successful completion of the financing. With respect to the Obligations, our services will include the preparation of all agreements, resolutions, notices, bond forms and all other legal documents required by California law for the execution, sale and delivery of the Obligations. We will attend all meetings in which the Obligations will be discussed or any action in connection with the proceedings is to be taken. Subject to completion of the financing to our satisfaction, Best Best & Krieger LLP will issue its approving legal opinion to the purchaser of the Obligations to the effect that all proceedings have been legally undertaken for the authorization, execution, sale and delivery of the Obligations, or other transactions relating to the financing and that interest paid with respect to the Obligations is exempt from State of California personal income tax and gross income for federal tax purposes. We will also issue appropriate supplemental opinions and certificates as may he necessary or appropriate. 09960.00000\30198126.1 lack BEST BEST&KRIEGER ATTORNEYS AT LAW Ben Siegel October 17, 2017 Page 2 Subject to completion of the financing to our satisfaction, Best Best & Krieger LLP will issue its legal opinion with respect to the matters discussed in the official statement. Based on our current understanding of the issuance of the Obligations and the involvement of Best Best & Krieger LLP attorneys in drafting documents relating to the issuance of the Obligations and delivering our legal opinion, our fees, including reimbursement for costs, would be $30,000 for bond counsel. If the transaction is not completed or our involvement differs significantly from our expectations, we would expect to be paid a fee the we mutually agree would reflect reasonable compensation for legal services rendered considering the risk undertaken and the level of expertise required to undertake such legal service based upon the hourly rates of the attorneys involved. By your signature and return of this letter, you agree to pay our fees and expenses as set forth in this paragraph. Additionally, we will charge the City for out-of-pocket expenses which would include, the costs of duplicating and mailing, transportation, long distance telephone calls, messenger and courier service and the preparation of transcripts of the financing. This expense is not expected to exceed $1,500. If this arrangement is satisfactory to you, please authorize our employment according to the terms of this letter by having this letter executed by you or your agent. We look forward to working with you and the staff of the City of San Juan Capistrano in order to bring this matter to a successful conclusion. Sincerely, Kim A. Byrens of BEST BEST&KRIEGER LLP TERMS OF PAYMENT OF FEES AND EXPENSES OF BOND COUNSEL APPROVED THIS p'1I DAY OF 2017. ✓ a t'orize Vl. atory 0996000000\30198126.1