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MUNICIPAL FINANCING CONSULTANTS, INC.
February 27, 1973
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City of Redlands
212 Brookside Avenue
Redlands, California 92373
Attention: R. P. Merritt, Jr.
City Manager
Gentlemen:
In accordance with the terms of our contract of employment
dated June 7, 1960, we enclose our statement of financing
consulting services rendered and expenses incurred in con-
nection with the sale of $250,000 1962 Sewer Bonds,
Series B.
Would you kindly approve this claim for payment at such time
as bond sale proceeds become available to you.
Thank you.
Yours very truly,
STONE & YOUNGBERG
Municipal Financing Consultants, Inc.
Herman B. Zelle
Vice President
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SUITE 2750 • ONE CALIFORNIA STREET • SAN FRANCISCO. CALIFOFt NIA 94111 - (415)
STONE & YOUNNGB E R,G
MUNICIPAL FINANCING CONSULTANTS, INC.
December 8, 1972
Mr. R . P . Merritt, Jr.
City Manager
City of Redlands
P.O. Box 280
Redlands, Calif. 92373
Dear Pete:
In reply to your letter of December 6, 1972, this is to confirm that we will
perform financing consultant services in connection with the forthcoming
sale of $250, 000 of City of Redlands 1962 Sewer Bonds, Series B, under
terms of that agreement between the City and Stone & Youngberg dated
June 7, 1960.
Thank you for the opportunity to participate in this project.
Very truly yours,
STONE & YOUNGBERG MUNICIPAL
FFNANCING CONSULTANTS, INC.
Edw id J . Hyland
Vice k esident
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1541 WILSHIRE 6OULEVARD • LOS ANGELES. CALIFORNIA 90017 • (213) 483-1643
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December 6, 1972
Stone & Youngberg
Municipal Financing Consultants, Inc.
1541 Wilshire Boulevard
Los Angeles, California 90017
Attention: Mr. Edward J. Hyland
Vice President
Dear Ed:
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Reference is made to our recent conversation
regarding the sale of the $250,000 of authorized,
but unsold, General Obligation Bonds of the City of
Redlands (Sewer Bonds) .
This letter will confirm that the charges
your organization will make to the city for this service
will be in accordance with the schedule set forth in
paragraph 10, c, of the agreement dated June 7, 1960,
which provides a charge of 11z/ for any or all of the
first $250, 000 of each sale of General Obligation Bonds.
If you have any questions regarding this matter
please contact me.
Cordially,
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R."P. Merritt, Jr.
City Manager
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STONE & YOUNGBE G
MUNICIPAL FINANCING CONSULTANTS, INC.
July 14, 1971
Mr. Ralph P. Merritt, Jr.
City Manager -- City of Redlands
Post Office Box 280
Redlands, California 92373
Dear Mr. Merritt:
The July 6, 1971 Water Revenue Bond sale was conducted under
the fee schedule as shown in our contract dated June 30, 1960.
Because this contract has passed its termination date, may we
have an authorization by the City to sell these bonds at a fee
equal to one-half of one percent of the principal amount of the
sale as set forth in the June 30, 1966 contract.
This authorization would be most helpful for our internal audit-
ing.
Very truly yours,
STONE & YOUNGBERG MUNICIPAL
FINANCING CONSULTANTS, INC.
Robert G. Bulot
Vice President y'✓ti
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DANIEL STONE
BENJAMIN J. BAUM
DON M. DAVIS
RICHARD P. GRoss
STONE & YOUNGBERG
MUNICIPAL FINANCING CONSULTANTS
1314 RUSS BUILDING
SAN FRANCISCO 94104
YUKON 1-1314
October 14, 1965
City of Redlands
City Hall
Redlands, California
Attention of Mr. Ralph P. Merritt, Jr.
Gentlemen:
EDWARD W. BURNETT
DAVID E. HARTLEY
BARRY M.NEWMAN
EVERETT D. WILLIAMS
EDWARD C. KERN
._TAMES S.SAFFRAN
RICHARD A. SmRi RD
In accordance with your discussions with Mr. Robert Bulot of
our firm, please be advised that we would be pleased to update our
report of January 1961 entitled "General Financing Report, Financing
Public Works Improvements".
This supplemental report would contain all of the necessary
facts and figures having a bearing on the current situation but would
not be as complete as the 1961 report insofar as some of the background
information is concerned.
We would be willing to undertake this assignment for the sum of
$1,500 to become payable upon submission of the report.
Should necessary financing be authorized, the services, fees,
and other conditions stipulated in Paragraphs 7, 8, 9, 10 (c) , 11, 12,
and 13 as set forth in our agreement of June 7, 1960 would apply.
If this proposal is acceptable to the city, kindly advise us, or
if desired, a formal agreement covering the same can be prepared.
We are looking forward to again being of service to you.
Yours very truly,
STONE & YOUNGBERG
wviov
Edward Burnett
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Encl.
cc: Mr. Robert G. Bulot
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CONTRACT EMPLOYING FINANCING CONSULTANT
THIS AGREEMENT, made this day of , 1960, by
and between CITY OF REDLANDS, San Bernardino County, California,
a City duly organized under the laws of the State of California (herein-
after called "City"), party of the first part, and STONE & YOUNGBERG,
Russ Building, San Francisco 4, California, a partnership (hereinafter
called "Consultant"), party of the second part;
WITNESSETH
WHEREAS, City recognizes the need within the near future of a
comprehensive public works program including among others, improvements
to its water, sewerage, police and fire department facilities, and pos-
sible acquisitions of additional lands and water facilities for public pur-
poses; and
WHEREAS, City desires to develop a feasible, economical, and
equitable plan of financing the acquisition or construction of said pub-
lic improvements; and
WHEREAS, the preparation of such a plan and its execution re-
quires certain studies, analyses, and recommendations to be made by
persons qualified by training and experience to 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:
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vices:
Services. to be Performed by Consultant:
Consultant shall perform in a diligent manner the following ser-
1. o Assemble, review, and analyze all available financial,
engineering, legal and economic data and information,
which may have a bearing on a program for financing the ac-
quisition or construction of the proposed public improvements.
2. Based on the foregoing analysis, prepare and submit to
City fifty (50) copies of a written report containing, in
addition to other information, the following,
(a) A general review and description of the proposed
improvements, their purpose and benefits.. their
estimated capital and annual maintenance and opera-
tion costs, and other pertinent information based pri-
marily on data and information to be supplied by City
or its engineers or architects.
(b) A detailed discussion as to possible methods of
financing such improvements, the advantages and
disadvantages of each method as applied to a given type
of project,., the general legal and practical requirements
or restrictions applicable to each method, including
specific references to such methods as use of current
funds, general obligation bonds, revenue bonds, special
assessment proceedings, lease -purchase arrangements,
State or Federal grants or loans,, and donations whenever
applicable to the proposed improvements and to combina-
tions of the foregoing,
(c) A detailed discussion as to possible sources of
revenues, such as property taxes, sales taxes,
utility revenues, service or connection charges, rental
income, 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 improvements and to pay their annual maintenance
and operation costs
(d) Estimates of the future trends of such revenues and
their application toward a possible improvement
program.
(e) A discussion relating to possible variations in
benefits to be received by different properties,
taxpayers,, or areas and the correlation of the same
to the discussions under items (a) , (b) , and (c) r and
(d) above.
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(f) Recommendations as to the most appropriate
method of financing, or alternates thereto, as
applied to each type of improvement.
(g) illustrations and examples of the financial
effects of the financing program on typical prop-
erty owners, taxpayers, or beneficiaries of the im-
provements.
(h) Recommendations as to further procedural steps
to be taken and timing of actions.
3. Discuss the contents of the foregoing report with City
and make necessary revisions if required prior to its
final publication.
4. From time to time as may reasonably be required, con-
sult with City as to the financial aspects of any spe-
cific project then being considered.
S. When City has approved a specific project (or proj-
ects), the estimated costs and method of financing
of which have been sufficiently well established to permit
the preparation of a financing report relating specifically
to the project (or projects), Consultant shall at the direc-
tion of the City prepare such a report containing in addition
to other information the following:
(a) A general description of the project (or projects),
its purpose, benefits, the estimated costs, and
other pertinent information.
(b) Details relating to the proposed method of financing,
including tentative bond amortization schedules,
call features, sources and amounts of funds to be used
in amortizing the costs, and other related data.
(c) illustrations and examples of the financial effects
of the financing program on typical property owners,
taxpayers, or beneficiaries of the project.
(d) Recommendations as to further procedures. The
foregoing report will be designed to answer sub-
stantially all of the important questions which might
arise in connection with the particular project (or proj-
ects) and will contain the latest figures as to estimated
costs and other details.
6. It a bond election is required in connection with the ap-
proved method of financing, prepare the text of a con-
densed factual statement describing the improvements, ex-
plaining why they are needed, the benefits to be derived,
their costs, and the effect on typical taxpayers or others
who may be affected, which statement may be reproduced
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and distributed by City or others to voters in advance of
the election. Also make other recommendations relating
to methods of informing voters as to the merits of the pro-
posed improvements and their costs
7. If the issuance of bonds or other evidences of indebted-
ness to finance all or part. of the costs of the proposed
improvements is authorized at an election or otherwise,.
make recommendations as to exact terms and conditions un-
der which bonds are to be issued and sold,, including timing
and method of sale, final, amortization or repayment sched-
ules, call and redemption features, sinking fund require-
ments, application of revenues and other details, and co-
operate with City's bond counsel in drafting the necessary
resolution of issuance and notice of sale.,
8. 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, their security, and
the economic and financial background of the City, which may
be duplicated or printed and mailed at City's expense together
with copies of the official notice of sale to prospective bond
bidders, a comprehensive list of whom shall be supplied by
Consultant. Consultant shall also contact national bond
rating agencies and take such other steps as appear advis-
able to encourage strong competitive bidding for the bonds.
9, During the: entire course of employment hereunder, Con-
sultant shall be available at reasonable times for con-
sultation and advice relating to the financial aspects of the
contemplated improvement program.
Payment for Services.-
10. For the services to be rendered hereunder City shall.
pay Consultant the following fees at the times and sub-
ject to the conditions specified:
(a) The sum of $3, 500 to become payable upon sub-
mission of the report referred to in paragraph 2
above.
(b) The further sum of $1,500 each time City directs
Consultant to prepare reports on specific pro-
jects as provided in paragraph 5 above..
(c) A further sum equal to the following percentages
of bonds sold to become payable upon and subject
to receipt by City of the proceeds of each such sale.
Type of Bonds.
General. Revenue
Obli ag tion or Other
Any part or all of first $250,000 of each sale 1-1./2°! 2 %
Any part or all of next $250,000 of each sale 3/4% 1 %
All over $500,000 of each sale 1/2% 1/2%
Other Considerations:
11. 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 City 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.
City specifically agrees (but without limitation) to pay
or cause to be paid at its own expense the following:
(a) Any and all legal or engineering expense of any
kind whatever.
(b) Any and all expense in connection with hearings,.
proceedings, and due issuance of bonds.
(c) Any printing, advertising., publicity, etc., of
such material or data as City may wish to have
prepared in connection with Consultant's report or
services herein provided for, except those specific-
ally excluded herein.
provided, however, that no such costs or expense as above
stated shall be incurred without prior consent of City.
12. 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 services, nor from performing simi-
lar services for other cities,, districts, or public entities.
13. City agrees that its officials and employees will be re-
quested and directed to cooperate with and assist rep-
resentatives 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.
Termination;
14. This agreement shall terminate three years from the
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date hereof or upon completion of the services and payment
of the fees provided herein, whichever shall first occur.
IN WITNESS WHEREOF, said City, party of the first part,. has
caused these presents to be executed by its Mayor and its City Clerk,
thereunto duly authorized by its City Council, and said Stone & Young-
berg, party of the second part, has caused these presents to be executed
by one of its partners, as of the date hereinabove set forth.
ATTEST:
Approved as to form this
day of , I960
City At orney
CITY OF REDLANDS
By
Mayor
BygRIty Clerk
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STONE & YOUNGBERG
ByLIV�,064�
Partner
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