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HomeMy WebLinkAbout79-082KLG:ar 5/16/79 RESOLUTION NO. 7942 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING EXECUTION OF AN AGREEMENT WITH STONE & YOUNGBERG MUNICIPAL FINANCING CON- SULTANTS, INC. FOR SERVICES IN CONNECTION WITH PROPOSED SPECIAL ASSESSMENT PROCEEDINGS. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA: That the Mayor is hereby authorized and directed to execute, on behalf of the City of Santa Ana, that certain "Contract Employing Financing Consultant," wherein Stone & Youngberg Municipal Financing Consultants, Inc., a cor- poration, agrees to perform certain services in connection with a proposed special assessment proceeding to be under- taken by the city in return for certain consideration specified in said agreement. A copy of said agreement is on file in the office of the Clerk of the Council and reference thereto is hereby made for full particulars. ADOPTED this 4th day of the following vote: June , 1979, by AYES: COUNCILMEN: Bricken, Griset~ Ward NOES: COUNCILMEN: Markel~ Yamamoto ABSENT: COUNCILMEN: None Luxembourger, Serrato, ATTEST APPROVED AS TO FORM: KEITH L. GOW CITY ATTORNEY CONTRACT EMPLOYING FINANCING CONSULTANT THIS AGREEMENT, made this ~'~ day of .~ ~%~%1~'_ , 191~, by and be- tween CITY OF SANTA ANA, a City duly organized under the laws of the State of Calif- ornia (hereinaffer called "City"), party of the first part, and STONE & YOUNGBERG MUNICIPAL FINANCING CONSULTANTS, INC., One California Street, San Francisco, q.~,j., California, a Corporation (hereinafter called "Consultant"), party of the second part: WITNESSETH: WHEREAS, City is considering undertaking a long-term capital improvement program to construct parking facilities utilizing special assessment proceedings and bonds over a period of years; and WHEREAS, City desires to develop a feasible, economical and equitable plan of procedure in carrying through to completion the financing of said parking facilities~ and WHEREAS, the preparation of such a plan and its execution require certain studies, analyses and recommendations to be made by persons qualified by training and experl- ence ~ do so; and WHEREAS, City, after due investigation and deliberation, has determined that Consultant is qualified by training and experience to perform said services; NOW, THEREFORE, it is mutually agreed as follows, to wit: City hereby employs Consultant and Consultant hereby accepts such employment to perform the services, upon the terms, subject to the conditions and in consideration of payments as hereinafter set forth: Services to be Performed by Consultant: Consultant shall perform in a diligent manner the following services: 1. Assemble, review and analyze available data and information which may have a bearing on a program for financing the construction of the pro- posed public improvements. Provide advice, consultation and recommendations, as requested, on the following: An opinion as to financial feasibility and advisability of the project undertaken. -1- b. Applicable methods of financing the proposed improvements, the advantages and disadvantages of each method and the general financing requirements or restrictions applicable to each method, including the application of State and Federal loans or grants. c. Available sources of revenues which might be used to amor- tize the indebtedness to be incurred for the capital costs of the improvements and to pay their annual maintenance and opera- tion costs. d. The financial effects of the financing program on typical propertyowners, taxpayers or beneficiaries of the im- provements. e. Procedural steps to be taken and timing of actions. 3. Appear at a reasonable number of public meetings to explain the financial aspects of the program and provide factual information regarding the project and the financial program. 4. If the issuance of bonds or other evidences of indebtedness to finance all or part of the costs of the proposed improvements is authorized, recom- mend to City the exact terms and conditions under which bonds are to be issued and sold, including timing and method of sale, final amortization or repayment schedules, call and redemption features, sinking fund requirements, application of revenues and other details. Assist bond counsel in drafting the necessary resolution of issuance and notice of sale. 6. Upon approval by City of final financing details and upon direction by City to do so, prepare the text and other material for an official statement or bond prospectus describing the improvements, the bonds and their security, the economic and financial background of City, and following items concerning the assessment district: a. A copy of the notice of sale. A copy of the assessment diagram showing parcels within the assessment district. c. A discussion of the method used in spreading the assessment. d. A list showing the amount of each individual assessment, the assessed valuation of land and improvements and the lien ratio (the ratio of assessment to full cash value) for each parcel of land. e. Economic and financial background of the assessment district. 7. Arrange for printing and distribution of the bond prospectus and other related material to a comprehensive list of prospective bond underwriters. City shall reimburse Consultant for costs of printing and distributing the official statement and related material. 8. Effect direct personal contact with dealers and investors to stimulate in- terest in any bonds issued and advise on technical questions concerning financing. -2- o Take such other steps as appear advisable to encourage strong competi- tive bidding for the bonds. 10. During the entire course of employment hereunder, Consultant shall be available at reasonable times for consultation and advice relating to the financial aspects of the contemplated improvement program. 11. Assist and coordinate with City's staff and affected departments, in- cluding data processing, in formulating procedures and in the preparation of a manual describing such procedures to be followed in administering assess- ments and servicing assessment bonds. Payment for Services: 12. For the services to be rendered hereunder City agrees to pay Consultant the following fees at the times and subject to the conditions specified: a. For each sale of bonds, a sum equal to one and one-half percent (1½%) of the first $1,000,000 of the acquisition and construction costs, plus one percent (1%) of the second $1,000,000 of acquisition and construction costs and one-half percent (½%) of the balance of the acquisition and construction costs over $2,000,000. b. It is agreed and understood that the acquisition and construc- tion costs referred to in Paragraph 12a, above, shall be as defined in the final engineer's report. c. Fees becoming due under Paragraph 12a, above, are payable only upon, and subject to, receipt by City of the proceeds from sale of securities. Other Considerations: 13. Consultant is employed hereunder to render a professional service within the scope of its training and experience as a municipal financing consult- ant and any payments made to it are compensation solely for such service and advice. Outside of its normal office overhead and traveling costs to and from its San Francisco and Los Angeles offices and City to perform the serv- ices contracted for, Consultant is not responsible for and shall not be held liable for any other expense or expenditure of any kind, including the follow- ing: Any and all legal or engineering expense of any kind what- ever. bo Any and all expense in connection with hearings, proceed- ings and due issuance of bonds. c. Any printing, advertising, publicity, etc., of such material or data as City may wish to have prepared in connec- tion with Consultant's services herein provided for, except those specifically excluded herein. 14. Nothing herein contained shall prevent Consultant from carrying on its usual business activities, including the performance of other additional services for City, should it so desire such additional serv- ices, nor from performing similar services for other cities, districts or pub- lic entitles. 15. City agrees that its officials and employees will be requested and directed to cooperate with and assist representatives of Consultant in every reasonable way to the end that Consultant may secure all information and data required to perform the services herein provided for. IN WITNESS WHEREOF, said City, party of the first part, has caused these presents to be properly executed, and said Consultant, party of the second part, has caused these presents to be executed by one of its officers, as of the date hereinabove set forth. CITY OF SANTA ANA STONE & YOUNGBERG MUNICIPAL FINANCING CONSULTANTS, INC. Robert G. Bulot, Senior Vice President -4-