HomeMy WebLinkAboutContracts & Agreements_32-1971CONTRACT EMPLOYING FINANCING CONSULTANT
THIS AGREEMENT, made this 12-th day of November
, 1971, by
and between CITY OF REDLANDS, San Bernardino County, California, a
city duly organized under the laws of the State of California (hereinafter
called "City"), party of the first part, and STONE & YOU NGBERG Municipal
Financing Consultants, Inc. , One California Street, San Francisco, California,
a corporation (hereinafter called "Consultant") , party of the second part:
WITNESSETH:
WHEREAS, City is considering undertaking a program to improve and con-
struct sewage treatment facilities estimated to cost $2,700, 000; and
WHEREAS, City desires to develop a feasible, economical and equitable
plan of procedure in carrying through to completion the financing of said public
improvements; 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 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 employ-
ment 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:
_I_
1. Assemble, review and analyze available data and information
which may have a bearing on a program for financing construc-
tion of the proposed public improvements.
2. Based on the foregoing analysis, prepare and submit to City at
Consultant's expense a written report containing, in addition to
other information, the following:
(a) A general review and description of the proposed improve-
ments, their purpose and benefits, their estimated capital
and annual maintenance and operation costs and other pertinent
information based primarily on data and information supplied by
City and its engineers.
(b) A discussion as to applicable methods of financing such
improvements, the advantages and disadvantages of each
method and the general financing requirements or restrictions ap-
plicable to each method.
(c) A discussion as to available sources of revenues 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, their sufficiencies and recom-
mendations as to alterations that appear to be desirable.
(d) Recommendations as to a specific method of financing or
alternates thereto if applicable, including tentative debt
amortization schedules, estimated interest rates, application
of revenues and other pertinent details relating to the indebted-
ness to be incurred.
(e) Illustrations and examples of the financial effects of the fi-
nancing program on typical property owners, taxpayers or
beneficiaries of the improvements.
(f) Recommendations as to further procedural steps to be taken
and timing of actions.
3. Provide financing information and data which may be required in con-
nection with any aids or grants which may be available to assist in
the financing of the proposed public improvement project. Provide as-
sistance in evaluating the financial and implementation aspects of State
Water Resources Control Board Bulletin of July 1971 and the Revenue
Program Guidelines of August 1971 regarding revenue flows and cash
availability requirements.
4. If the issuance of bonds or other evidences of indebtedness to fi-
nance all or part of the costs of the proposed improvements is
authorized at an election or otherwise, recommend 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
-2-
and redemption features, sinking fund requirements, application of
revenues and other details.
5. Assist bond counsel in drafting the necessary resolution of is-
suance and notice of sale.
6. Upon approval by City of final financing details and upon direc-
tion 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.
7. Arrange for printing and distribution of the bond prospectus and
other related material to a comprehensive list of prospective bond
bidders. City shall reimburse Consultant for costs of printing and dis-
tributing the official statement and related material.
8. Effect direct personal contact with dealers and investors to stimulate
interest in any bonds issued and advise on technical questions con-
cerning financing.
9. 'Fake such other steps as appear advisable to encourage strong com-
petitive bidding for the bonds. Any charges by bond rating agencies
and any charges for preparation of debt statement shall be borne by City.
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.
Payment for Services:
11. 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) A sum in an amount equal to $250.00 per manday for those serv-
ices to be performed under Paragraphs 1, 2 and 3 hereof.
ip
• A.M. y _ . _ , _ _ _ - G • r
III z
Other Considerations:
12. Consultant is employed hereunder to render a professional service within
the scope of its training and experience as a municipal financing con-
sultant 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, including the following:
- 3--
(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 pri nting , 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
specifically excluded herein.
13. 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 per-
forming similar services for other cities, districts or public entities,
14. City agrees that its officials and employees will be requested and di-
rected 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 STONE & YOUNGBERG Municipal Fi-
nancing Consultants, Inc, , 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 REDLANDS
XV
By
(R. P. Merritt, Jr.), City Manager
STONE & YOUNGBERG --i
Municipal Financing Consultants, Inc.
Y
Vice President
IM
AMENDMENT TO STONE & YOUNGBERG
CONTRACT EMPLOYING FINANCING
CONSULTANT
BY THE
CITY OF REDLANDS
November 11, 1971
Page 3 - Paragraph 11. (b) as herein stated:
"A further sum in an amount equal to one percent (1%)
of the total amount of financing, to become payable
upon and subject to receipt by City of funds to
finance all or a part of the proposed public improve-
ments. The minimum fee for bond sales or other
evidences of indebtedness per bond sale shall be
$7, 500.
has been deleted and the following substituted:
"A further sum in an amount equal to one percent (1%)
of the total amount of financing achieved through
the sale of bonds, to become payable upon and subject
to receipt by City of funds to finance all or a part
of the proposed public improvements. The minimum fee
for bond sales shall be $7,500."
CITY OF REDLANDS
t
By
R. P. Merritt,,Jr., City Manager
STONE & YOUNGBERG
Municipal Financing Consultants Inc.
R. G. Bulot, Vice President