HomeMy WebLinkAbout1974-08 CRA
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RESOLUTION NO.
74-8
A RESOLUTION OF THE COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF SANTA ANA APPROVING AND
AUTHORIZING EXECUTION OF AN AGREEMENT WITH STONE
AND YOUNGBERG, MUNICIPAL FINANCING CONSULTANTS,
FOR THE REDEVELOPMENT PROJECT AREA
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WHEREAS, the Community Redevelopment Agency of the City
of Santa Ana (hereinafter referred to as "Agency") has under-
taken activities to provide a sound financial plan for the
Project Area unQer the provisions of the California Community
Redevelopment Law and pursuant to the Redevelopment Plan for
the Project; and
WHEREAS, the Agency desires to retain the services of a
consultant to prepare a general financial feasibility study
on the Redevelopment Project, specifically within the boundaries
of the Project Area; and
WHEREAS, the Agency has solicited proposals requesting
financial consulting services for the Redevelopment Project
Area; and
WHEREAS, Stone and Youngberg, Municipal Financing Consul-
tants, Inc, represent that they are authorized and qualified to
provide such services for the Agency;
NOW, THEREFORE, BE IT RESOLVED that the Community Redevelop-
ment Agency of the City of Santa Ana hereby approves the Agreement
for the financial consulting services of Stone and Youngberg
which agreement is attached hereto and referred to as Exhibit "A"
and authorizes the Chairman of the Agency to execute said Agree-
ment on behalf of the Agency,
APPROVED AND ADOPTED this 3rd day of June, 1974.
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,Patterson, halrman
APPROVED AS TO LEGAL FORM:
I hereby certify that the foregoing resolution was duly
adopted by the Community Redevelopment Agency of the City of
Santa Ana, California, at a regular meeting thereof, held on the
3rd day of June, 1974, by the following vote, to wit:
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AYES,
NOES,
Members:
Garthe, Yamamoto, Patterson, Griset
Members:
None
ABSENT,
ATTEST:
Members:
Director
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~orence I. Ma one, Recording Secretary
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FINANCIAL CONSULTANT AGREEMENT
THIS AGREEMENT, made this 3rd day of
June
, 1974,
by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY
OF SANTA ANA, Orange County, California, a community redevelop-
ment agency duly organized under the laws of the State of Calif-
ornia (hereinafter called "Agency"), and STONE & YOUNGBERG Municipal
Financing Consultants, Inc., One California Street, San Francisco,
California, a California corporation (hereinafter called "Consul-
tant") :
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WHEREAS, Agency has heretofore initiated a redevelopment
project within the City of Santa Ana (hereinafter called "Project");
and
WHEREAS, Agency expects that said Project will be developed
in increments or stages over a period of years; and
WHEREAS, Agency requires assistance in the development of
the framework for a sound, equitable and practical financing plan
to implement the Project by taking into consideration sources of
capital funds and cash flow requirements, annual costs, the allo-
cation of these costs, statutory requirements and restrictions, and
alternate methods of financing, if applicable; and
WHEREAS, the preparation of such a plan requires certain
studies, analyses and recommendations to be made by persons qua-
1 ified by training and experience to do so; and
EXHIBIT. A
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WHEREAS, Agency, after due investigation and deliberation,
has determined that Consultant is qualified by training and ex-
perience to perform said services;
NOW, THEREFORE, it is mutually agreed as follows:
Agency hereby employes Consultant and Consultant hereby
accepts such employment as an independent contractor to perform
the services, upon the terms, subject to the conditions, and
in consideration of payments as hereinafter set forth:
Servjces to be Performed by Consultant:
Consultant shall perform in a diligent manner the following services:
1.
Assemble, review and analyze available financial, architec-
tural. engineering, legal and economic data and information
which may have a bearing on a program for financing the Pro-
ject, or essential public facilities of benefit thereto,
including such information as:
(a)
Agency proceedings for adoption of the redevelopment
plan and boundary description of the Redevelopment
Project.
Present and proposed land uses within Project area.
(b)
(c)
Parcel-by-parcel analysis of County Assessor's records
for all taxable and non-taxable property within the
Project area as of the base year.
State Board of Equalization records regarding project
boundaries, tax code area designations and base year
public utility assessed valuations.
(d)
(e)
Confirm frozen base assessed valuation of the Project
(land, improvements and personal property on the local
secured, unsecured and public utility rolls.)
Determine assessed valuation of taxable property that
has been or will be permanently removed from the tax
rolls because of transfer to public ownership following
adoption of the Project redevelopment plan.
(f)
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Based on the foregoing analysis, prepare and submit to the
Agency periodic written information containing, but not
limited to, the following:
2.
(a)
(b)
(c)
(d)
(e)
A general review of the financing requirements of the
Project and the proposed public sector improvements,
their purpose and benefits, their estimated capital
and annual maintenance and operation costs, and other
pertinent information based primarily on data and in-
formation to be supplied by Agency and its consultants,
Consultant shall also assist in the development and/or
review of a detailed Project expenditures budget, timing
of Agency fund requirements and estimated Project devel-
opment schedule.
A discussion of the possible methods of financing Project
costs and/or public improvements, the advantages and
disadvantages of each method as applied to the Project,
the general legal and practical requirements or restric-
tions applicable to 'each method and their attendant costs,
including specific references to such methods as use of
current funds, redevelopment procedures, general tax
bonds, revenue bonds, lease-purchase arrangements,
assessment financing, state or federal grants and
loans, and combinations of the foregoing, status of
the funding and their applicability to the Project or
Projects and their subareas.
A discussion of the possible sources of revenues, such as
property taxes (including tax increment income), sales
taxes, utility revenues, rental income, user charges,
proceeds from contract payments and annual subventions
or grants which might be used to amortize the indebtedness
to be incurred for the capital costs of the Project and re-
lated public improvements and to pay their annual mainte-
nance and operation costs,
Estimates of the future trends of such revenues and their
application towards financing the improvement program
(specifically including tax increment income and the
tax base which provides such income).
A discussion (as applicable) relating to possible costs
or variations in benefits to be received by different
properties, taxpayers or taxing areas and the correlation
of the same to the discussions under items (a), (b), (c)
and (d) above.
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(f)
Recommendations as to the most appropriate method of
financing alternates or supplements thereto, as applied
to the Project,
Illustrations and examples of the financial effects of
the financing program on typical property owners, taxpayers,
overlapping taxing agencies, or beneficiaries of the
program.
(g)
(h)
If required by the Agency, advice and consultation con-
cerning any interim financing which may be necessary or
desirable to assist in the ultimate completion of the
Project.
Recommendations as to further procedural steps to be taken
and timing of actions.
( i )
3,
Discuss on a continuing basis the results of Consultant's
studies and analyses and generate such additional information
as desired or requested,
As may be reasonably required or requested, consult with Agency,
its staff and other public agencies as to the financial aspects
of the Project, to include presentation before the County Board
of Supervisors and the City of Santa Ana Community Redevelopment
Agency,
4.
5.
Assist Agency in establishing a plan of procedure to assure
prompt and accurate reporting and payment of tax increment
income generated by the Project to Agency by the County of
Orange, including efforts towards obtaining assurances that
the Agency will receive such income from State reimbursement
to local taxing agencies for the home owner's and business
inventories exemptions,
6.
Consultant would agree that its services will be performed as
directed by the Agency, and will present its analyses and
findings by phases or increments as established by the Agency.'
If the issuance of bonds or other evidences of indebtedness
by Agency to finance all or a part of the costs of the Project
and related improvements is authorized at an election or
otherwise:
7.
(a)
Make recommendations as to exact terms and conditions
under which bonds are to be issued and sold, including
timing and method of sale, final amortization or repay-
ment schedules, call and redemption features and other
detail s.
(b)
Confirm all data having a bearing on the marketability
and security for the bonds to the extent possible,
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(c)
Assist bond counsel in drafting the necessary resolu-
tion of issuance and notice of sale.
8.
Upon approval by the Agency of final financing details and
upon direction by the Agency to do so, prepare the text and
other material for an official statement or bond prospectus
describing the improvements, the bonds, their security and
the economic and financial background of the Community.
Arrange for printing and distribution of the official statement
and oth~r related material to a comprehensive list of prospec-
tive bond bidders. The Agency shall reimburse Consultant for
costs of printing and distributing the official statement and
related material.
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9.
Effect direct personal contact with dealers and investors to
stimulate interest in bonds issued and advise on technical
questions concerning financing,
Take such other steps as appear advisable to encourage strong
competitive bidding for the bonds. Any charges by bond rating
agencies and any charges for debt statement shall be borne by
the Agency.
Calculate bids for the bonds, select the lowest bid at the sale
and advise as to the award of the bonds,
Advise as to the selection of the bond printer and paying
agents whose services would be of greatest benefit to the
Agency.
Arrange the bond closing and advise concerning investment of
proceeds of bonds pending their expenditure.
During the entire course of employment, Consultant shall make
himself available at reasonable times for consultation and
advice relating to the financial aspects of the contemplated
redevelopment program. During such course of employment, Con-
sultant shall advise Agency of pending State and Federal
legislation of which Consultant has knowledge, pertaining
to redevelopment and/or applicable financing activities. As
necessary, Consultant shall also revise and update the findings
and information prepared under Paragraphs 1, 2 and 3 above,
The letter proposal dated April 18,1974, addressed to the
Executive Director of the Community Redevelopment Agency by
Consultant is attached hereto and incorporated by reference
and made a part of this Agreement and referred to as Exhibit I.
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Payment for Services:
17.
For the services to be performed. the Agency would agree
to pay Consultant the following fees at the times and
subject to the conditions as specified:
(b)
(c)
(d)
(a)
For those services to be performed under Paragraphs 1
through 6 hereof, the sum of Thirty Five ($35.00)
Dollars per hour for consultants' time actually expended
on consulting services provided to the Agency (including
travel time between Consultant's San Francisco or Los
Angeles offices and Agency), to become due and payable
upon submission by Consultant of an invoice not more
often than once each calendar month, nor no less often
than once each six (6) calendar months, Consultant's
aggregate fee under this Paragraph 17(a) shall not
exceed the sum of Seven Thousand ($7,000.00) Dollars
unless authorized in writing by Agency. Any fees paid
Consultant under this Paragraph 17(a) shall be deducted
from any fees due Consultant under Paragraph 17(b) below.
For those services to be performed under Paragraphs 5
through 16 hereof, a fee in an amount equal to:
(1)
The sum in an amount equal to one percent (1%)
of the first One Million ($1,000,000.00) Dollars
of financing achieved, plus
The sum in an amount equal to one-half percent
(1/2%) of the next One Million ($1,000,000.00)
Dollars of financing achieved, plus
(11 )
(ii1)
The sum in an amount equal to one~quarter of one
percent (1/4%) of all financing in excess of
Two Million ($2,000,000.00) Dollars
It is understood and agreed that the fee scheduled speci-
fied under Pa~agraph 17(b) shall be applied cumulatively
to the aggregate amount of indebtedness incurred by Agency
regardless of the number of separate issues of securities,
provided that the minimum fee due Consultant for each
individual sale of securities shall be Twelve Thousand
Five Hundred ($12,500.00) Dollars. '.
It would be further. understood and agreed that Consultant's
fees under Paragraph 17(b) will become due and payable
only when and if the necessary financing is obtained and
accepted by the Agency.
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Other Considerations:
18.
19.
20.
21.
22.
Consultant is employed hereunder to render a professional
service within the scope of its training and experience
as a municipal financing consultant 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 office and Agency to perform
the services contracted for, Consultant is not responsible
for and shall not be held liable for any other expense or
expenditure of any kind, including the following:
(a)
Any and all legal or engineering expense of any kind
whatever.
(b)
Any and all expense in connection with hearings, pro-
ceedings and due issuance of bonds.
Any printing, advertising, publicity, etc., of such
material or data as Agency may wish to have prepared
in connection with Consultant's services herein pro-
vided for, except those specifically excluded herein,
(c)
Nothing herein contained shall prevent Consultant from carrying
on its usual business activities, including the performance
of other additional services for Agency, should it so desire
such additional services, nor from performing similar services
for other agencies, cities, districts or public entities,
provided no apparent conflict of interest arises. Such an
occasion shall require full disclosure by the Consultant prior
to continuation of this Agreement,
Agency 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.
All reports, data, plans, material and documents submitted
to fulfill this agreement are the sole and exclusive property
of the Agency and as such shall not be shown or used by the
Consultant without the written consent of the Agency,
Neither this Agreement nor duties or obligations hereunder
shall be assignable by the Consultant without the written con-
sent of the Agency,
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It is the intention of the parties that Consultant is
an independent contractor and not an employee of the
Agency under this Agreement, Therefore, Consultant further
indemnifies and holds Agency harmless from any and all
claims arising from the performance of his duties under
this Agreement.
The reports, investigations, materials and documents prepared
or acquired by the Consultant pursuant to this Agreement
(including any duplicate copies kept by the Consultant) shall
not be shown to any other public or private person or entity
except as authorized in writing by the Agency. The Consultant
shall not disclose to any other public or private person or
entity any information regarding the activities of the Agency,
except as authorized in writing by the Agency,
During the performance of this Agreement, the Consultant
agrees as follows:
(a)
The Consultant will not discriminate against any employee
or applicant for employment because of race, color, religion,
sex, or national origin. The Consultant will take affirma-
tive action to insure that applicants are employed, and that
employees are treated during their employment, without regard
to their race, color, religion, sex or national origin.
Such action shall include, but not be limited to the follow-
ing: employment, upgrading. demotion or transfer; recruit-
ment or recruitment advertising; layoff or termination;
rates of payor other forms of compensation; and selection
for training, including apprenticeship. The Consultant
agrees to post in conspicuous places, available to employees
and applicants for employment, notices to be provided by the
Agency setting forth the provisions of this non-discrimination
clause.
(b)
The Consultant will, in all solicitations or advertisements
for employees placed by or on behalf of Consultant, state
that all qualified applicants will receive consideration
for employment without regard to race, color, religion,
sex or national origin,
The Consultant is encouraged by the Agency to employ qualified
people, when available, from the project area to assist in pro-
viding the services contracted for in this A"greement,
In accordance with generally accepted accounting principles,
the Consultant shall maintain full and complete records of the
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cost of services performed under this Agreement. Such records
shall be open to the inspection of the Agency and its employees
at all reasonable times,
This Agreement may be terminated by either party on thirty (30)
day written notice to the other. The effective date of can-
cellation being the thirtieth day of said written notice with
no further action by either party.
If any action at law or in equity is brought to enforce or
interpret the provisions of this Agreement, the prevailing
party shall be entitled to reasonable attorney's fees and
costs in addition to any other relief to which he may be
entitled.
This Agreement supercedes any and all other agreements either
oral or in writing between the parties. No inducements, re-
presentations or promises were made that are not embodied
in this Agreement. Any modification of this Agreement will
only be effective by written execution signed by both parties.
This Agreement shall be governed by the laws of the State of
California.
Notices to the parties shall, unless otherwise requested in
writing, be sent to the Agency at 20 Civic Center Plaza,
Santa Ana, California, 92701, and to Consultant at Suite 2750,
One California Street, San Francisco, California, 94111.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement in duplicate on the day and year first above written,
ATTEST:
AGENCY OF
ATTEST:
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APPROVED AS TO FORM:
(Corporate Seal)
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STONE & YOUNGBERG, Municipal
Financing Consultants, Inc.
By
By
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STONE & YOUNGBERG
MUNICIPAL FINANCING CONSULTANTS. INC.
April 18. 1974
Mr. Richard E. Goblirsch
Executive Director
Community Redevelopment Agency
of the City of Santa Ana
20 Civic Center Plaza
Santa Ana. California 92701
Dear Mr. Goblirsch:
We are pleased to respond to your letter of April 10. 1974. re-
questing a specific outline of financial consulting services in con-
nection with the enumerated task areas which have a bearing on
the Agency's redevelopment financing program. This reply should
be considered as an addenda to our original proposal of April 2, 1974,
since the general scope of services to be performed and proposed fee
schedule are contained therein.
It has consistently been our position that virtually any municipal fi-
nancing program merits a comprehensive analysis of costs, sources
of revenues and other pertinent factors, so that our clients and po-
tential bond purchasers will be in full possession of aU relevant par-
ticulars surrounding a given financing program prior to the incurrence
of indebtedness, In this connection, the impartial analysis can pro-
vide the grounds for broad policy decisions by administration, and
provide material assistance in the explanation of these decisions to
the public and other interested governmental entities. Consequently,
we welcome the opportunity to describe the specific services we pro-
pose to perform for the Agency in the following identified work areas.
TASK 1: Review and confirm Project frozen base assessed valuation,
includinq possible revisions. reductions. increments and
procedures for payments to the Aqency.
SERVICES:
(a) Review Agency proceedings for adoption of the re-
development plan and boundary description of the
redevelopment project,
(b)
Consult with Agency regarding present and proposed
land uses within project area.
Exhibit I
SUITE ""0 ' ONE CALIFORNIA STREET, SAN FRANCISCO. CALIFORNIA 04111 ' (AIS) 989"300
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Mr. Richard E. Goblirsch
Community Redevelopment Agency
of the City of Santa Ana
April 18, 1974
Page 2
(c) Conduct independent parcel-by-parcel analysis
of County Assessor's reçords for all taxable and
non-taxable property within the project area as of the
base year.
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(d) Contact State Board of Equalization as necessary
regarding project boundaries, tax code area desig-
nations and base year public utility assessed valuations.
(e) Confirm frozen base assessed valuation of the pro-
ject (land. improvements and personal property on
the local secured, unsecured and public utility roUs).
(f) Determine assessed valuation of taxable property
that has been or will be permanently removed from
the tax rolls because of. transfer to public ownership
following adoption of the project redevelopment plan.
(g) Advise and consult with Agency and its other ad-
visors and consultants as to any discrepancies
between Consultant's and County's determination of
base year assessed valuation. and any re-computation
of current tax increment income, if any, resulting there-
from,
(h) At the request of Agency, attend meetings between
Agency and County to reconcile any such discrep-
ancies discussed under Subparagraph l(g),above, and/or
to effect reduction in the frozen base assessed valu-
ation resulting from permanent removal of property from
the tax rolls,
(i) Assist Agency in establishing a plan of procedure
to assure prompt and accurate reporting and payment
of tax increment income by the County to the Agency
through creation and identification of separate tax code
areas and other appropriate measures, specifically in-
cluding efforts towards obtaining assurances that Agency
will receive such income from State reimbursements to
local taxing agencies for the homeowner's and business
inventories exemptions as well as property taxes that
are levied and collected by the County.
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Mr. Richard E. Goblirsch
Community Redevelopment Agency
of the City of Santa Ana
April 18, 1974
Page 3
We estimate the time requirements for Task 1 to be five working days
for work to be performed at the Agency and County offices, two work-
ing days for work to be performed at the offices of the State Board of
Equalization, and three working days for preparation of Consultant's
findings and recommendations, Time required for attendance at meet-
ings to discuss or implement Consultant's findings and recommenda-
tions would be in addition to the above estimates, and would be at
the direction of the Agency.
As stated in Paragraph 15 (a) of our April 2 proposal to the Agency, fees
for performance of the foregoing services would be charged at the rate
of $35 per hour (including travel time), and would be billed as the
work is performed. The estimated maximum charge for Task 1 is $2,800
(exclusive of time involved in attendance at meetings) . Consultant
will be responsible for all expenses of travel, meals and lodging.
TASK 2: Assist in preparation of overall financing plan for imple-
. mentation of the redevelopment program.
SERVICES:
(a) In cooperation with Agency and its other advisors and
consultants, develop and/or review a detailed project
expenditures budget, timing of Agency fund requirements,
and proposed project development schedule. Also assist
in preparation of cost estimates of public improvements
or facilities that are to be provided by the Agency or other
public entities as part of the project.
(b) Assist in the preparation of a year-by-year incre-
mental assessed valuation projection of the project,
considering separately possible reductions of the frozen
. base assessed valuation, and new development that is
completed, in progres s, planned and anticipated during
the period covered by the projection.
(c) On the basis of (a) and (b) above, prepare or assist
in the preparation of a year-by-year projection of
tax increment income that may be expected to be derived
from the project.
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Mr. Richard E. Goblirsch
Community Redevelopment Agency
of the City of Santa Ana
April 18,1974
Page 4
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(d) Investigate and report on available methods of fi-
nancing project expenditures and public facilities
incidental or essential to the project. Specifically
included, as applicable, would be tax allocation bonds.
revenue bonds, parking authority and other lease-rev-
enue bonds, community appropriations, revolving fund
use of tax increment income, and other legally avail-
able sources of funds.
(e) Recommend specific method or methods of finan-
cing, and recommend financing schedule based
on the findings discussed under (a), (b) and (c), above.
(f) Prepare estimates of total initial capital costs and
annual financing costs for the various methods of
financing under consideration, including any reserves.
capitalized interest, costs of bond issuance, and re-
lated costs incidental to the particular financing method.
(g) In addition to the preparation of the projection of
tax increment income, prepare or assist in the prepara-
tion of .revenue estimates from such sources as parking
charges, subventions or grants, user charges, rental or
conces sion income, and sales taxes that may be pledged
or applied to the payment of annual financing costs.
(h) Present our findings and recommendations to Agency
and, 1£ any financing is to be provided by another
public entity, to the administrative staff and governing
board of such entity. Assist Agency in obtaining approval
of any proposed financial participation by another public
entity or entities.
We believe that our services in connection with Task 2 can be accom-
plished in 15 days working time or less, including allowances for
time spent with Agency developing and coordinating preparation of the
fiscal plan, development of independent data and information, draft- -
ing time in our offices. and one day for joint presentation to the
Agency. An additional two days should be allowed for review and pre-
sentation 1£ other public entities are to be involved.
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Our fees for Task 2 would also be charged at the rate of $35 per hour, ~
and would be billed during the course of the worle. Assuming a IS-day
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Mr. Richard E. Goblirsch
Community Redevelopment Agency
of the City of Santa Ana
April 18. 1974
Page 5
work period, the total fee for Task 2 will amount to $4.200, How-
ever, we feel that some savings may be effected since a portion of
the Task 2 work can be accomplished within the Task 1 time-frame.
TASK 3:
Sale of tax allocation bonds.
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SERVICES:
(a) Apply the findings under Tasks 1 and 2, as appro-
priate, to the first sale of project tax allocation
bonds. Portions of the work areas specified under Task
1 and 2 may be accelerated to provide necessary data
and information on which to base the first bond issue
and meet the Agency's financing schedule.
(b) Develop financial provisions. terms and conditions
for incorporation in Resolution of the Agency pro-
viding for issuance oJ the bonds, including bond security
language, liberal provisions for the issuance of addi-
tional bonds which will permit the Agency to incur addi-
tional indebtedness without compromising the position
of holders of outstanding bonds, bond amortization sched-
ule, and specific covenants to be adopted by the Agency
for the protection of the bondholders. .
(c) Present and discuss such financial provisions with
Agency, and work with bond counsel in the prepar-
ation of the Resolution of Issuance to the extent that the
suggested provisions are incorporated therein.
(d) Confirm the incremental assessed valuation of the
project existing in the fiscal year in which the
bonds are to be sold, through examination of the County
records, and, if necessary, State records.
(e) Confirm assessed valuation of new development that
is in progress or may otherwise be considered as se-
curity for a forthcoming bond is sue, but which is not yet
fully reflected on the tax rolls.
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(f) Prepare the text of an Official Statement of the
Agency offering the bonds for sale, which will in-
clude a description of the bonds and their terms of
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Mr. Richard E. Goblirsch
Community Redevelopment Agency
of the City of Santa Ana
April 18, 1974
Page 6
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of is suance, a description of the Agency and its re-
development activities, specific information as to the
project (its current stage of development, anticipated
development, present and anticipated assessed val-
uations, tax rates, and such other relevant information
as will assist potential bond purchasers in reaching
a decision as to the investment merits of thè bond
offering). The Official Statement will also contain
pertinent economic and financial data normally expec-
ted by bond purchasers.
(g) Upon approval of the Official Statement by Agency,
arrange for printing and distribution to a compre-
hensive list of bond purchasers supplied by Consultant.
(h) Effect direct personal contact with bond dealers and
investors to stimulate interest in the bond offering,
and advise on any technical questions concerning the
financing program.
(i)
If deemed advisable, obtain ratings on the bonds
from nationally recognized rating agencies.
(j) Attend bond sale, calculate bond bids, confirm
low bid, and recommend award of bonds to best
bidder.
(k) Arrange and participate in bond delivery, and ad-
vise Agency as to investment of unused bond pro-
ceeds, prepare computation and distribution of bond
proceeds due at delivery and prepare schedule of actual
bond service on basis of the winning bid.
(1) Provide continual information to Agency regarding
status of State and Federal legislation pertaining
to redevelopment and/or financing activities.
(m) As necessary, revise and update findings and
recommendations originally prepared under Task
1 and 2.
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8
8
Mr. Richard E. Goblirsch
Community Redevelopment Agency
of the City of Santa Ana
April 18, 1974
Page 7
(n) If authorized, provide assistance in obtain-
ing any supplemental or alternate financing
through another public entity or entities.
(0) Meet with Agency or its other advisors and con-
sultants at reasonable times on any of the above.
.
For the services proposed under Task 3, we have proposed a fee sched-
ule of one percent (1%) of the first $1 million of financing achieved,
plus on-half percent (1/2%) of the next $1 million of financing, plus
one-quarter percent (1/4%) of all financing in excess of $2 million. It
should be noted that these fees are cumulative, so that once the Agen-
cy's financing exceeds $2 million, subsequent fees will not exceed
one-quarter percent of such financing (subject to the minimum fee of
$12,500 for anyone sale of bonds), regardless of the number of series
in which bonds are is sued. Moreover, any fees paid to Consultant
under Task 1 and 2 will be deducted from the first fee due under Task 3
(following the first sale of bonds for the Agency, no additional fees
would be charged for the type of services contemplated under Task 1
and 2). At present, we are not aware of the magnitude of financing in-
volved in the overall project, but when such estimates are available
the foregoing percentages may be readily applied to determine the
cost of our services, Any fees for Task 3 services are payable only
from, and subject to receipt of, bond proceeds. As specified in our
April 2 proposal to the Agency, costs incurred in connection with the
preparation and distribution of the Official Statement are to be borne
by the Agency.
Normally, the time required to accomplish the sale and delivezy of an
authorized issue of bonds will range from 60 to 90 days, and we
would expect to be able to accomplish the first sale of tax allocation
bonds under Task 3 within this period of time. Some consolidation
of time. may be pos sible. because parts of the Task 1 and 2 work are
integral with Task 3.
The foregoing should not be considered as limiting the scope of ser-
vices enumerated in our original proposal of April 2, 1974. but is in-
tended to provide additional detail and elaboration in the areas des-
cribed in your letter of April 10. As financing consultants, we feel
obligated to achieve the most economical and practical financing
for a client, and will provide necessary service to accomplish this
objective regardless of apparent contractual limitations.
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Mr. Richard E. Goblirsch
Community Redevelopment Agency
of the City of Santa Ana
April 18, 1974
Page 8
It is hoped that this addenda will assist the Agency in its evaluation
and selection of a municipal financing consultant. Should you desire
additional information, elaboration or personal attendance at a meet-
ing of the Agency. please feel free to contact us at your convenience.
Very truly yours,
STONE & YOUNGBERG
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Tere~ _~~ca:;:::¡
Assistant Vice President
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