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BCRUA_R-16-07-20-7B RESOLUTION NO. R-16-07-20-713 WHEREAS, the Brushy Creek Regional Utility Authority, Inc. (BCRUA) desires to retain professional municipal advisory services; and WHEREAS, Specialized Public Finance, Inc. has submitted an engagement letter to provide said services; and WHEREAS, the BCRUA wishes to enter into an engagement letter with Specialized Public Finance, Inc., Now Therefore BE IT RESOLVED BY THE BRUSHY CREEK REGIONAL UTILITY AUTHORITY, That the Board President is hereby authorized and directed to execute on behalf of the BCRUA an engagement letter with Specialized Public Finance, Inc., a copy of same being attached hereto as Exhibit "A"and incorporated herein for all purposes. The Board hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. RESOLVED this 20th day of July, 2016. JON LUX;15residen't Brushy Creek Regional Utility Authority ATTEST: ,7/,/Z/& bruzzes , :cr C'.llsmlmadamsUAppdata'Local%NlicrosnflSWindows-Temporary Inlemel FLIC tXQntent ONlook',VWCYN'NV \Rd DCRUA-Enpiemcnt Icttcr w-Specialized Public finance(G036038"NAOSF13)dac ENGAGEMENT LETTER FOR MUNICIPAL ADVISORY SERVICES Specialized Public Finance,Inc.("SPFI"or"Municipal Advisor")has been engaged to serve as the Municipal Advisor to the Brushy Creek Regional Utility Authority, Inc. ("Issuer"). This document is our written engagement and sets forth the duties and responsibilities of the Municipal Advisor in connection with the issuance of City of Round Rock or City of Cedar Park Contract Revenue Bonds or similar instruments by the Issuer. Any City of Leander Contract Revenue Bonds or similar instruments issued by Issuer are specifically excluded from this engagement. Section I: Municipal Advisor Role. The Municipal Advisor is engaged as a recognized independent expert whose primary responsibility is to give objective advice on the structure and issuance of municipal securities. In our capacity as Municipal Advisor to the Issuer,we will provide the following services:(])Evaluate alternatives and options related to the Issuer's objective of reducing financing costs related to previously issued bonds; (2) Prepare preliminary financing schedules for review and consideration by the Issuer;(3)Provide advice on the structure and suitability of municipal securities relative to the financial resources of the Issuer for new projects;(4)Work with Bond Counsel and the Issuer to prepare the offering documents necessary for the sale of municipal securities;and(5)Provide assistance in coordinating with underwriters,bond rating agencies,the Texas Water Development Board,and other professionals, as needed,related to the proper structuring and final issuance of municipal securities. Section 2: Disclosure of Conflicts of Interest. Rules established by the Municipal Securities Rulemaking Board and the Securities and Exchange Commission require the registered Municipal Advisor to provide a written description of any material conflicts of interest,including any plans to mitigate any such conflicts of interest. Federal law imposes an explicit fiduciary duty on the Municipal Advisor to act in the best interest of the Issuer. This means several important things:(1)SPFI has a duty to exercise due care in performing municipal advisory activities;(2)SPFI has a duty of loyalty,requiring advice to be rendered in the best interest of the Issuer,without regard to the financial interests of SPFI;(3)SPFI must have the knowledge and expertise needed to provide the Issuer with informed advice;(4)SPFI has a duty to understand the Issuer's specific financial circumstances so that any advice may be deemed suitable to the Issuer's situation;and(5)SPFI has a duty to discuss material risks and benefits with the Issuer so as to best serve the Issuer's needs. Specific conflicts of interest will be disclosed in detail in a separate letter provided by SPFI before the date of execution of this engagement. Section 3: Term of Engagement. The term of this engagement shall extend from the date of execution of this Engagement Letter for a period of(3)years from such date. Unless SPFI or Issuer shall notify the other party in writing at least(30)days in advance of the applicable anniversary date that this engagement will not be renewed,this engagement will be automatically renewed on the third anniversary of the date hereof for successive(1)year periods. Section 4: Fees and Expenses. The Issuer agrees to pay to SPFI for the services described in Section 1),above,the amount of 0.225070 of the par amount of municipal securities issued and delivered relating to Phase 1 Improvements and 0.175%of the paramount of municipal securities issued and delivered for other projects. The foregoing charges shall be multiplied by 1.25 times for the issuance of refunding bonds, reflecting the additional services required. Additionally,the Issuer agrees to reimburse SPFI for any transaction-related costs advanced by SPFI in the normal course of issuance of the municipal securities covered by this engagement, including but not limited to paying agent fees,rating agency fees(including any ratings-related travel expenses,at the specific instruction ofthe Issuer),CUSIP registration fees,escrow agent fees,verification agent fees,and any fees related to the bidding of escrow securities to the extent they are beneficial to the transaction or required due to the inability to subscribe to State and Local Government Securities or SLGS. This engagement shall take effect upon action by a duly authorized representative of the Issuer to approve this engagement. Representative of the Issuer: Date: Representative of the Municipal Advisor: Date: �6 �9 DISCLOSURE STATEMENT OF SPECIALIZED PUBLIC FINANCE,INC. This Disclosure Statement is provided by SPECIALIZED PUBLIC FINANCE, INC. ("Specialized Public Finance, Inc." or "the Advisor') to Brushy Creek Regional Utility Authority, Inc. (the "Client") in connection with our existing Financial Advisory Services Agreement or similar instrument (the "Agreement"). This Disclosure Statement provides information regarding conflicts of interest and legal or disciplinary events of Specialized Public Finance, Inc. required to be disclosed to Client pursuant to Municipal Securities Rulemaking Board ("MSRB") Rule G-42(b) and (c)(H), which took effect on June 23, 2016. PART A—Disclosures of Conflicts of Interest Newly adopted MSRB Rule G-42 requires that Specialized Public Finance, Inc. provide disclosures relating to any actual or potential material conflicts of interest, including certain categories of potential conflicts of interest identified in Rule G-42, if applicable. if no such material conflicts of interest are known to exist based on the exercise of reasonable diligence, Specialized Public Finance, Inc. is required to provide a written statement to that effect. Material Conflicts of Interest— Specialized Public Finance, Inc. makes the disclosures set forth below with respect to material conflicts of interest in connection with the Agreement, together with explanations of how the Advisor addresses or intends to manage or mitigate each conflict. General Mitigations—With respect to all of the conflicts disclosed below, Specialized Public Finance, Inc. mitigates such conflicts through its adherence to its fiduciary duty to Client,which includes a duty of loyalty to Client in performing all advisory activities for Client. This duty of loyalty obligates Specialized Public Finance, Inc.to deal honestly and with the utmost good faith with Client and to act in Client's best interests without regard to Specialized Public Finance, Inc.'s financial or other interests. Furthermore, Specialized Public Finance, Inc.'s supervisory structure provides strong safeguards against individual representatives of Specialized Public Finance, Inc. potentially departing from their regulatory duties due to personal interests. The disclosures below describe, as applicable, any additional mitigations that may be relevant with respect to any specific conflict disclosed below. Compensation-Based Conflicts. The fees due under the Agreement will be based on the size of the financing and the payment of such fees shall be contingent upon closing of the financing transaction.While this form of compensation is customary in the municipal securities market, this may present a conflict because it could create an incentive for the Advisor to recommend unnecessary financings or financings that are disadvantageous to Client, or to advise Client to increase the size of the issue. This conflict of interest is mitigated by the general mitigations described above. Specialized Public Finance, Inc. Also Advising Wholesale Utility Customers of Client. In addition to serving as Advisor to Client, Specialized Public Finance, Inc. serves as Advisor to certain wholesale utility customers of Client. Client and the wholesale utility customers may have conflicting interests with regard to fees,terms of the issuance,and other matters. Such conflict is mitigated by the fact that no wholesale utility customer transactions are originated by Specialized Public Finance, Inc.and all work done on behalf of the Client is undertaken at the specific request of the Client. Additionally, as it relates to the primary goals of any such financing transaction, achieving the lowest possible debt service and bond issuance costs are common to both the Client and the wholesale utility customers. Specialized Public Finance. Inc., as an independent municipal advisory firm, is not affiliated with any broker-dealer. As such S ecialized Public Finance Inc. has NONE of the following otential conflicts of interest unique to municipal advisors ani Wed with a broker-dealer. THE FOLLOWING CONFLICTS OF INTEREST DO NOT APPLY TO SPECIALIZED PUBLIC FINANCE, INC. Affiliate Conflict. The Affiliate's business with Client could create an incentive for the municipal advisor to recommend to Client a course of action designed to increase the level of Client's business activities with the Affiliate or to recommend against a course of action that would reduce or eliminate Client's business activities with the Affiliate. Solicitor Payments to Be Retained. Such payments could create an incentive for the Solicitor to make a biased recommendation to Client in conflict with the fiduciary duty of the municipal advisor. Payments From Third Parties for Recommendations. Such payments could create an incentive for the municipal advisor to make a biased recommendation of the Recommended Third-Party to Client. Fee-Splitting Arrangements. Such fee-splitting arrangements could result in divided loyalties of the municipal advisor and the Third-Party besides Client. Underwriting Relationships. Broker dealer municipal advisors serve a wide variety of other clients that may from time to time have interests that could have a direct or indirect impact on the interests of Client. These other clients may, from time to time and depending on the specific circumstances, have competing interests, such as accessing the new issue market with the most advantageous timing and with limited competition at the time of the offering. In acting in the interests of its various clients, the broker-dealer municipal advisor could potentially face a conflict of interest arising from these competing client interests. In other cases, as a broker-dealer that engages in underwritings of new issuances of municipal securities by other municipal entities,the interests of the broker-dealer municipal advisor to achieve a successful and profitable underwriting for its municipal entity underwriting clients could potentially constitute a conflict of interest. Broker-Dealer and Investment Advisory Business.Such securities-related activities,which may include but are not limited to the buying and selling of new issue and outstanding securities and investment advice in connection with such securities, including securities of Client, may be undertaken on behalf of, or as counterparty to, Client, personnel of Client, and current or potential investors in the securities of Client. These other clients may, from time to time and depending on the specific circumstances, have interests in conflict with those of Client,such as when their buying or selling of Client's securities may have an adverse effect on the market for Client's securities, and the interests of such other clients could create the incentive for the broker-dealer and investment advisor affiliated municipal advisor to make recommendations to Client that could result in more advantageous pricing for the other clients. Secondary Market Transactions in Client's Securities. The broker-dealer municipal advisor, in connection with its sales and trading activities, may take a principal position in securities, including securities of Client, and therefore could have interests in conflict with those of Client with respect to the value of Client's securities while held in inventory and the levels of mark-up or mark-down that may be available in connection with purchases and sales thereof. In particular,the broker-dealer municipal advisor or its affiliates may submit orders for and acquire Client's securities issued in an Issue under the Agreement from members of the underwriting syndicate,either for its own account or for the accounts of its customers. This activity may result in a conflict of interest with Client in that it could create the incentive for the broker- dealer municipal advisor to make recommendations to Client that could result in more advantageous pricing of Client's bond in the marketplace. PART B—Disclosures of Information Regarding Legal Events and Disciplinary History Newly adopted MSRB Rule G-42 requires that Specialized Public Finance, Inc. provide certain disclosures of legal or disciplinary events material to its client's evaluation of the Advisor or the integrity of the Advisor's management or advisory personnel. Accordingly, Specialized Public Finance, Inc. sets out below required disclosures and related information in connection with such disclosures. There are NO legal or disciplinary events of disclosure relating to Specialized Public Finance, Inc. or the integrity of Specialized Public Finance, Inc.'s management or advisory personnel disclosed, or that should be disclosed, on any Form MA or Form MA-I filed with the SEC. How to Access Form MA and Form MA-I Filings. Specialized Public Finance, Inc.'s most recent Form MA and each most recent Form MA-1 tiled with the SEC are available on the SEC's EDGAR system at hfp://www.sec.gov. The SEC permits certain items of information required on Form MA or MA-1 to be provided by reference to such required information already filed by Specialized Public Finance, Inc, in its capacity as a state-registered investment adviser.Specialized Public Finance,Inc.'s most recent Form ADV is publicly accessible at the Investment Adviser Public Disclosure website at hfp:llwww.adviserinfo.sec.gov. For purposes of accessing Form ADV, Specialized Public Finance, Inc.'s CRD number is 148951. The SEC municipal advisor registration number for Specialized Public Finance, Inc. is 866-00363-00. PART C—Future Suoalemental Disclosures As required by newly adopted MSRB Rule G-42, this Disclosure Statement may be supplemented or amended, from time to time as needed, to reflect changed circumstances resulting in new conflicts of interest or changes in the conflicts of interest described above,or to provide updated information with regard to any legal or disciplinary events of Specialized Public Finance, Inc. Specialized Public Finance, Inc. will provide Client with any such supplement or amendment as it becomes available throughout the term of the Agreement. Dated:June 14,2016 Specialized Public Finance, Inc. Disclosure language adapted from Securities Industry and Financial Markets Association("SIFMAJ suggested municipal advisory conflicts of Interest disclosure dated June 1,2016. 3 DATE: July 1S, 2016 SUBJECT: BCRUA Board Meeting—July 20,2016 ITEM: 7B. Consider a resolution authorizing the President to execute an Engagement Letter with Specialized Public Finance, Inc.for Municipal Advisory Services. PRESENTER: Tom Gallier,General Manager BACKGROUND INFO: As of May 12t1 of this year,the rating agency, Standard & Poor's Global Ratings, has increased BCRUA's Municipal Bonds from AA to AA+. This rating increase, combined with recent market reductions in municipal bond interest rates, has created an opportunity for all three member cities to refinance the debt that BCRUA has issued on their behalf,and recognize significant long term cost savings. In order to initiate this process for the cities of Round Rock and Cedar Park, a Board Resolution must be passed,which will authorize the Board President to execute an engagement letter with Specialized Public Finance,Inc.,for municipal advisory services.SPFI currently serves as the financial advisor for both Round Rock and Cedar Park. This item relates to Agenda Item 7H, which authorizes the issuance of Cedar Park's Contract Revenue Refunding Bonds, and also to Agenda Item 71, which authorizes the issuance of Round Rock's Contract Revenue Refunding Bonds. City staff, and representatives of SPFI will be present and available to answer any Board questions. Staff recommends approval of this resolution. ENGAGEMENT LETTER FOR MUNICIPAL ADVISORY SERVICES Specialized Public Finance,Inc.("SPFI"or"Municipal Advisor")has been engaged to serve as the Municipal Advisor to the Brushy Creek Regional Utility Authority, Inc. ("Issuer"). This document is our written engagement and sets forth the duties and responsibilities of the Municipal Advisor in connection with the issuance of City of Round Rock or City of Cedar Park Contract Revenue Bonds or similar instruments by the Issuer. Any City of Leander Contract Revenue Bonds or similar instruments issued by Issuer are specifically excluded from this engagement. Section 1: Municipal Advisor Role. The Municipal Advisor is engaged as a recognized independent expert whose primary responsibility is to give objective advice on the structure and issuance of municipal securities. In our capacity as Municipal Advisor to the Issuer,we will provide the following services:(I)Evaluate alternatives and options related to the Issuer's objective of reducing financing costs related to previously issued bonds; (2) Prepare preliminary financing schedules for review and consideration by the Issuer;(3)Provide advice on the structure and suitability of municipal securities relative to the financial resources of the Issuer for new projects;(4)Work with Bond Counsel and the Issuer to prepare the offering documents necessary for the sale of municipal securities;and(5)Provide assistance in coordinating with underwriters,bond rating agencies,the Texas Water Development Board,and other professionals, as needed,related to the proper structuring and final issuance of municipal securities. Section 2: Disclosure of Conflicts of Interest. Rules established by the Municipal Securities Rulemaking Board and the Securities and Exchange Commission require the registered Municipal Advisor to provide a written description of any material conflicts of interest,including any plans to mitigate any such conflicts of interest. Federal law imposes an explicit fiduciary duty on the Municipal Advisor to act in the best interest of the Issuer. This means several important things:(I)SPFI has a duty to exercise due care in performing municipal advisory activities;(2)SPFI has a duty of loyalty,requiring advice to be rendered in the best interest ofthe Issuer,without regard to the financial interests of SPFI;(3)SPFI must have the knowledge and expertise needed to provide the Issuer with informed advice;(4)SPFI has a duty to understand the Issuer's specific financial circumstances so that any advice may be deemed suitable to the Issuer's situation;and(5)SPFI has a duty to discuss material risks and benefits with the Issuer so as to best serve the Issuer's needs. Specific conflicts of interest will be disclosed in detail in a separate letter provided by SPFI before the date of execution of this engagement. Section 3: Term of Engagement. The term of this engagement shall extend from the date of execution of this Engagement Letter for a period of(3) years from such date. Unless SPFI or Issuer shall notify the other party in writing at least(30)days in advance of the applicable anniversary date that this engagement will not be renewed,this engagement will be automatically renewed on the third anniversary of the date hereof for successive(1)year periods. Section 4: Fees and Expenses. The Issuer agrees to pay to SPFI for the services described in Section 1),above,the amount of 0.225%of the par amount of municipal securities issued and delivered relating to Phase I Improvements and 0.175%of the par amount of municipal securities issued and delivered for other projects. The foregoing charges shall be multiplied by 1.25 times for the issuance of refunding bonds, reflecting the additional services required. Additionally,the Issuer agrees to reimburse SPFI for any transaction-related costs advanced by SPFI in the normal course of issuance of the municipal securities covered by this engagement, including but not limited to paying agent fees,rating agency fees(including any ratings-related travel expenses,at the specific instruction of the Issuer),CUSIP registration fees,escrow agent fees,verification agent fees,and any fees related to the bidding of escrow securities to the extent they are beneficial to the transaction or required due to the inability to subscribe to State and Local Government Securities or SLGS. This engagement shall take effect upon action by a duly authorize representative of the Issuer to approve this engagement. Rep�es ntativothe Isssetr: . Date: -7-2-0-A, Za ` /b Representative of the Municipal Advi / Date: DISCLOSURE STATEMENT OF SPECIALIZED PUBLIC FINANCE, INC. This Disclosure Statement is provided by SPECIALIZED PUBLIC FINANCE, INC. ("Specialized Public Finance, Inc." or "the Advisor") to Brushy Creek Regional Utility Authority, Inc. (the "Client") in connection with our existing Financial Advisory Services Agreement or similar instrument (the "Agreement"). This Disclosure Statement provides information regarding conflicts of interest and legal or disciplinary events of Specialized Public Finance, Inc. required to be disclosed to Client pursuant to Municipal Securities Rulemaking Board ("MSRB") Rule G-42(b) and (c)(ii), which took effect on June 23, 2016. PART A—Disclosures of Conflicts of Interest Newly adopted MSRB Rule G-42 requires that Specialized Public Finance, Inc. provide disclosures relating to any actual or potential material conflicts of interest, including certain categories of potential conflicts of interest identified in Rule G-42, if applicable. If no such material conflicts of interest are known to exist based on the exercise of reasonable diligence, Specialized Public Finance, Inc. is required to provide a written statement to that effect. Material Conflicts of Interest— Specialized Public Finance, Inc. makes the disclosures set forth below with respect to material conflicts of interest in connection with the Agreement, together with explanations of how the Advisor addresses or intends to manage or mitigate each conflict. General Mitigations—With respect to all of the conflicts disclosed below, Specialized Public Finance, Inc. mitigates such conflicts through its adherence to its fiduciary duty to Client, which includes a duty of loyalty to Client in performing all advisory activities for Client. This duty of loyalty obligates Specialized Public Finance, Inc. to deal honestly and with the utmost good faith with Client and to act in Client's best interests without regard to Specialized Public Finance, Inc.'s financial or other interests. Furthermore, Specialized Public Finance, Inc.'s supervisory structure provides strong safeguards against individual representatives of Specialized Public Finance, Inc. potentially departing from their regulatory duties due to personal interests. The disclosures below describe, as applicable, any additional mitigations that may be relevant with respect to any specific conflict disclosed below. Compensation-Based Conflicts. The fees due under the Agreement will be based on the size of the financing and the payment of such fees shall be contingent upon closing of the financing transaction.While this form of compensation is customary in the municipal securities market, this may present a conflict because it could create an incentive for the Advisor to recommend unnecessary financings or financings that are disadvantageous to Client, or to advise Client to increase the size of the issue. This conflict of interest is mitigated by the general mitigations described above. Specialized Public Finance, Inc. Also Advising Wholesale Utility Customers of Client. In addition to serving as Advisor to Client, Specialized Public Finance, Inc. serves as Advisor to certain wholesale utility customers of Client. Client and the wholesale utility customers may have conflicting interests with regard to fees,terms of the issuance, and other matters. Such conflict is mitigated by the fact that no wholesale utility customer transactions are originated by Specialized Public Finance, Inc. and all work done on behalf of the Client is undertaken at the specific request of the Client. Additionally, as it relates to the primary goals of any such financing transaction, achieving the lowest possible debt service and bond issuance costs are common to both the Client and the wholesale utility customers. Specialized Public Finance Inc. as an independent municipal advisory firm is not affiliated with any broker-dealer. As such Specialized Public Finance Inc. has NONE of the followin otentlal conflicts of interest unique to municipal advisors affiliated with a broker-dealer. THE FOLLOWING CONFLICTS OF INTEREST DO NOT APPLY TO SPECIALIZED PUBLIC FINANCE INC. Affiliate Conflict. The Affiliate's business with Client could create an incentive for the municipal advisor to recommend to Client a course of action designed to increase the level of Client's business activities with the Affiliate or to recommend against a course of action that would reduce or eliminate Client's business activities with the Affiliate. Solicitor Payments to Be Retained. Such payments could create an incentive for the Solicitor to make a biased recommendation to Client in conflict with the fiduciary duty of the municipal advisor. Payments From Third Parties for Recommendations. Such payments could create an incentive for the municipal advisor to make a biased recommendation of the Recommended Third-Party to Client. Fee-Splitting Arrangements. Such fee-splitting arrangements could result in divided loyalties of the municipal advisor and the Third-Party besides Client. Underwriting Relationships. Broker dealer municipal advisors serve a wide variety of other clients that may from time to time have interests that could have a direct or indirect impact on the interests of Client. These other clients may, from time to time and depending on the specific circumstances, have competing interests, such as accessing the new issue market with the most advantageous timing and with limited competition at the time of the offering. In acting in the interests of its various clients, the broker-dealer municipal advisor could potentially face a conflict of interest arising from these competing client interests. In other cases, as a broker-dealer that engages in underwritings of new issuances of municipal securities by other municipal entities, the interests of the broker-dealer municipal advisor to achieve a successful and profitable underwriting for its municipal entity underwriting clients could potentially constitute a conflict of interest. Broker-Dealer and Investment Advisory Business.Such securities-related activities,which may include but are not limited to the buying and selling of new issue and outstanding securities and investment advice in connection with such securities, including securities of Client, may be undertaken on behalf of, or as counterparty to, Client, personnel of Client, and current or potential investors in the securities of Client. These other clients may, from time to time and depending on the specific circumstances, have interests in conflict with those of Client, such as when their buying or selling of Client's securities may have an adverse effect on the market for Client's securities, and the interests of such other clients could create the incentive for the broker-dealer and investment advisor affiliated municipal advisor to make recommendations to Client that could result in more advantageous pricing for the other clients. Secondary Market Transactions in Client's Securities. The broker-dealer municipal advisor, in connection with its sales and trading activities, may take a principal position in securities, including securities of Client, and therefore could have interests in conflict with those of Client with respect to the value of Client's securities while held in inventory and the levels of mark-up or mark-down that may be available in connection with purchases and sales thereof_ In particular, the broker-dealer municipal advisor or its affiliates may submit orders for and acquire Client's securities issued in an Issue under the Agreement from members of the underwriting syndicate, either for its own account or for the accounts of its customers. This activity may result in a conflict of interest with Client in that it could create the incentive for the broker- dealer municipal advisor to make recommendations to Client that could result in more advantageous pricing of Client's bond in the marketplace. 2 PART B—Disclosures of Information Regarding Legal Events and Disciplinary History Newly adopted MSRB Rule G42 requires that Specialized Public Finance, Inc. provide certain disclosures of legal or disciplinary events material to its client's evaluation of the Advisor or the integrity of the Advisor's management or advisory personnel. Accordingly, Specialized Public Finance, Inc. sets out below required disclosures and related information in connection with such disclosures. There are NO legal or disciplinary events of disclosure relating to Specialized Public Finance, Inc. or the integrity of Specialized Public Finance, Inc.'s management or advisory personnel disclosed, or that should be disclosed,on any Form MA or f=orm MA-1 filed with the SEC. How to Access For_m MA and Form MA-I Filings. Specialized Public Finance, Inc.'s most recent Form MA and each most recent Form MA-1 filed with the SEC are available on the SEC's EDGAR system at http://www.sec.gov. The SEC permits certain items of information required on Form MA or MA-1 to be provided by reference to such required information already filed by Specialized Public Finance, Inc. in its capacity as a state-registered investment adviser. Specialized Public Finance, Inc.'s most recent Form ADV is publicly accessible at the Investment Adviser Public Disclosure website at http:/Iwww.adviserinfo.sec.gov. For purposes of accessing Form ADV, Specialized Public Finance, Inc.'s CRD number is 148951. The SEC municipal advisor registration number for Specialized Public Finance, Inc. is 866-00363-00. PART C—Future Supplemental Disclosures As required by newly adopted MSRB Rule G-42, this Disclosure Statement may be supplemented or amended, from time to time as needed, to reflect changed circumstances resulting in new conflicts of interest or changes in the conflicts of interest described above,or to provide updated information with regard to any legal or disciplinary events of Specialized Public Finance, Inc. Specialized Public Finance, Inc. will provide Client with any such supplement or amendment as it becomes available throughout the term of the Agreement. Dated:June 14, 2016 Specialized Public Finance, Inc. Disclosure language adapted from Securities Industry and Financial Markets Association{'SIFMA") suggested municipal advisory conflicts of interest disclosure dated June 1,2016. 3 CERTIFICATE OF INTERESTED PARTIES FORM 1295 1 0f 1 Complete Nos.1-A and 6 if there are interested parties. OFFICE USE ONLY Complete Nos.1,2,3,5,and 6 if there are no interested parties. CER'T'IFICATION OF FILING I Name of business entity filing form,and the city,state and country of the business entity's place Certificate Number: of business. 2016-64303 Specialized Public Finance Inc. Austin,TX United States Date Filed: 2 Name of governmental entity or state agency that is a party tot the contract for which the forms 07/13/2016 being filed. Brushy Creek Regional Utility Authority, Inc. Date Acknowledged: 3 Provide the identification number used by the governmental entity or state agency to track or identify the contract,and provide a description of the services,goods,or other property to be provided under the contract. BCRUA Fin Srvs Financial Advisory Services 4 Nature of Interest Name of Interested Party City,State,Country(place of business) (check applicable) Controlling Intermediary Jasin,Paul Dallas,TX United States X Viaille,Vince Dallas,TX United States X Adams, Steven Dallas,TX United States X Douglas,Jennifer Austin,TX United States X Garland,Jeffrey Austin,TX United States X Wegmiller,Daniel Austin,TX United States X Kimball,Garry Austin,TX United States X 5 Check only if there is NO Interested Party. ❑ fi [FFIDAVff I swear,or affirm,under penalty of perjury,that the above disclosure is true and correct. %��.,, MONICA A. MELVIN Notary Public,State of Texas ftz C Expires 20 heup Notary D13055951$ Signatur4 of authorized agent of contracting business entity AFFIX NOTARY STAMP/SEAL ABOVE /�/� Sworn to and subscribed before me,by the said (I t"r /1To ee"aa this the day of 20J ,to certify which,witness my hand and seal of Ace. Signature of officer administ ring oath Printed name of officer administering oath Title of p c administering oath Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.1021 CERTIFICATE OF INTERESTED PARTIES FORM 3.295 loll Complete Nos.1-4 and 6 if there are interested parties. OFFICE USE ONLY Complete Nos,1,2,3,5,and 6 if there are no interested parties. CERTIFICATION OF FILING 1 Name of business entity filing form,and the city,state and country of the business entity's place Certificate Number: of business. 2016-64303 Specialized Public Finance Inc. Austin,TX United States Date Filed: 2 Name of governmental entity or state agency that is a party to the contract for which the form is 07/1312016 being filed. Brushy Creek Regional Utility Authority, Inc. Date Acknowledged: 07/14/2016 3 Provide the identification number used by the governmental entity or state agency to track or identify the contract,and provide a description of the services,goods,or other property to be provided under the contract. BCRUA Fin Srvs Financial Advisory Services 4 Nature of interest Name of Interested Party City,State,Country(place of business) (check applicable) Controlling Intermediary Jasin,Paul Dallas,TX United States X Viaille,Vince Dallas,TX United States X Adams, Steven Dallas,TX United States X Douglas,Jennifer Austin,TX United States X Garland,Jeffrey Austin,TX United Slates X Wegmiller, Daniel Austin,TX United States X Kimball, Garry Austin,TX United States X 5 Check only if there is NO Interested Party. ❑ 6 AFFIDAVIT I swear,or affirm,under penalty of perjury,that the above disclosure is true and correct. Signature of authorized agent of contracting business entity AFFIX NOTARY STAMP I SEAL ABOVE Sworn to and subscribed before me,by the said this the day of 20 ,to certify which,witness my hand and seal of office. Signature of officer administering oath Printed name of officer administering oath Title of officer administering oath Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.1021