GM-16-08-15-066 7000 N. Mopac Expressway, Suite 2102, Austin, TX 78731
Tel: (512) 514-6430
Piper Jaffray & Co. Since 1895. Member SIPC and NYSE.
August 12, 2016
Tom Gallier, General Manager
Brushy Creek Regional Utility Authority, Inc.
City of Round Rock, Texas
221 East Main Street
Round Rock, TX 78664
Re: Disclosure Required For Issuing Bonds
Brushy Creek Regional Utility Authority, Inc., City of Round Rock, Texas
Contract Revenue Refunding Bonds
(Brushy Creek Regional Water Treatment and Distribution Project) Series 2016
Dear Mr. Gallier:
Thank you for engaging Piper Jaffray & Co. to serve as your co-managing underwriter. We are
writing to provide you with certain disclosures relating to the captioned bond issue (the Bonds),
as required by the Municipal Securities Rulemaking Board (MSRB) Rule G-17 in accordance
with MSRB Notice 2012-25 (May 7, 2012)1. Under new federal regulations, co-managing
underwriters are now required to send certain disclosures to you (as the Issuer of the Bonds) in
connection with potential or actual conflicts of interest that may arise in connection with our
participation in this underwriting. Additional disclosures have been or will be sent by the senior
book running manager for the underwriting.
Piper Jaffray intends to serve as an underwriter respecting the Bonds and not as a financial
advisor or municipal advisor to you. As part of our services as an underwriter, Piper Jaffray
may provide advice concerning the structure, timing, terms, and other similar matters
concerning an issue of municipal securities that Piper Jaffray is underwriting or placing.
Conflicts of Interest:
Piper Jaffray & Co. has entered into a separate agreement with Charles Schwab & Co., Inc.
that enables Charles Schwab & Co., Inc. to distribute certain new issue municipal securities
underwritten by or allocated to Piper Jaffray & Co., which could include the Bonds. Under that
agreement, Piper Jaffray & Co. will share with Charles Schwab & Co., a portion of the fee or
commission paid to Piper Jaffray & Co.
If you have any questions or concerns about these disclosures, please make those questions
or concerns known immediately to me. In addition, you should consult with your own financial,
legal, accounting, tax and other advisors, as applicable, to the extent you deem appropriate.
1 Interpretive Notice Concerning the Application of MSRB Rule G-17 to Underwriters of Municipal Securities
(effective August 2, 2012).
2
It is our understanding that you are authorized or are expected to be authorized to bind the
issuer by contract. If our understanding is incorrect, please notify the undersigned immediately.
Under MSRB Rules, we are required to seek your acknowledgement that you have received
this letter. Accordingly, please send me an email to that effect, or sign and return the enclosed
copy of this letter to me.
Thank you.
Sincerely,
Kim Edwards
Senior Vice President
Piper Jaffray & Co.
Acknowledgement:
Tom Gallier, General Manager
Brushy Creek Regional Utility Authority, Inc.
Date:
08/15/2016