HomeMy WebLinkAboutReso 95-1982RESOLUTION NO. 95-82
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION RETAINING THE FIRM OF
BARTLE WELLS ASSOCIATES AS FINANCIAL
ADVISORS IN CONNECTION WITH THE SALE
OF ASSESSMENT BONDS FOR THE GATEWAY'
PROJECT
that.
BE IT RESOLVED by the City Council of the City of South San Francisco
1. The firm of Battle Wells Associates be and is hereby retained to
act as financial advisor to the City of South San Francisco in connection with
the planning and sale of assessment bonds related to the Gateway Project upon
the terms and conditions set forth in the document entitled, "Proposal to City
of South San Francisco, Bartle Wells Associates, Municipal Financing Consul-
tants,'' which proposal is attached hereto as Exhibit "A" and incorporated here-
in by reference as though set forth verbatim.
I hereby certify that the foregoing resolution was regularly introduced
and adopted by the City Council of the City of South San Francisco at a regular
meeting held on the 4th day of August , 1982, by the following vote:
AYES: Councilmembers Ronald G. Acosta, Mark N. Addiego, FmanuelP N. Damonte,
Gus Nicolopulos; and Roberta Cerri Teglia
None
None
NOES-
ABSENT.
Foundry pattern for reverse side
of 45-inch manhole cover.
Bartle Wells Collection
Bartle Wells Associates maintains
a rotating collection of restored
foundry patterns in its offices in
San Francisco. These hand-
crafted, wooden shapes were
used to make sand molds from
which metal castings were
formed. The patterns originated in
various projects of the West's
development. We think it is fitting
that these symbols of public
works, often financed through our
efforts, should accompany the
materials which describe our firm.
'111 '1 ;I]
'[July,., '~ 1982
Battle Wells Associates
Municipal Finan¢in~
1636 Bush Stree~
San Francisco .o4109
415 775-3113
ity of Sguth San Francisco
.30 Grand Avenue
South San Francisco CA 94080
Attention: Mr. C. Waiter Birkelo, City Manager
Subject' Assessment Bond Financing
We are pleased to submit this proposal to the City of South San Francisco to
provide financial consulting services in connection with redevelopment agency
t[inancing and a proposed sale of assessment bonds. Our proposal includes:
(1) scope of work, (2) availability and fees, (3) experience and references, and
(4) personnel qualifications.
To work with yqu we propose to assign Thomas E. Gaffney and Lora J. Stovall,
both partners of Battle Wells Associates. Other members of our firm will assis{
as needed. Su_n>maries of our consultants' qualifications are included in the
"Staff" section ol- this proposal. We are prepared to berlin work upon acceptance
of this proposal. We anticipate a sale of assesement bonds about September 1982.
Battle Wells Associates is owned and managed entirely'by its own staff. We are
engaged exclusively in providing municipal financing consulting services for public
agencies. Because we are not connected with any bond sales organization or'
uneterwriter, we can exercise completely independent judgment and make objective
--ecommendations with respect to ]financing pIans and the marketing of securities.
lartle Wells Associates has national recognition and leadership in professional.
municipal financing, consulting. The firm's expertise and experien, ce includes
developing and implementing Virtually every type of municipal capital improvement
project: airports, electric power, flood control, parks, parking; ports, public
buildings, reclaimed water, schools, sewerage, solid waste, streets and highways,
water supply, water system acquisition, and urban renewal. Our overall objective
will be to create a viable financing plan to implement the capital improvement
needs and desires of the city.
We believe most issuing agencies will now seek the highest quality o.fficial state-
ment preparation to protect the individual public officer certifying the accuracy
of the information and to meet bond undem~riters' full-disclosure requirements.
Ou_r task is to assist the issuer !n providing relevant, compre, hensive financing
information, and to obtain the lo, est possible interest rate on the notes or bonds
being offered. The services we provide consistently meet these objectives.
We sincerelv appreciate vour invitation to submit this proposal, and hope that it'
will provid~ a 'sidtable b~sis for our selection. We will submit a draft consulting
services aqreement suitable for review by the city's legal advisor. We will begin
work upon-written authorization from an appropriate city official.
Yours very truly,
BARTLE WELLS ASSOCIATES
Thomas g. Gaffney
President
TEG'mt 3K
Sale and Delivery of the Bonds- We will analyze all quotes and bids receiv.e_d
in detail, select the lowest bid at the sale, conduct further negotiations
necessary, make recommendations to the city as to award of the bonds, and
assist counsel in preparing the resolution of award. We will act as a~qent fOr
the city. if further negotiations are required. We will furnish a schedule of
annual interest and. principal pa. Tfments required on the basis of the coupon
rates specified in tlue winning bid.
ADDITIONAL SERVICES
We will be ~available to provide additional financing .consulting services, whether
before or after the. sale of notes, as requested by the city.
AVAILABILITY AND FEES
1. We are prepared to begin work for the city upon acceptance of this proposal.
2. During the project development period, we will be available at all reasonable
times and on reasonable notice tor meetings and for consultation with the
city cquncil, its staff, consulting engineers, bond dealers, rating analysts,
aha others as necessary.
3. "All. work will be performed by Battle Wells Associates and those special con-
sultants with whom we are regularly associated..One of our principals will
be placed in charge of the work and will devote his time and effort to the
project as needed.
4. Our fee for the services described in this proposal is as follows:
a. For all services related to this sale of notes, commencing 120 days before
the estimated date of sale and continuing for up to 60 days following
the sale, the fee is $15,000, plus direct expenses. Progress payments,
plus direct expenses, are payable a.s the work proceeds as provided in
our billing rate schedule 161~{. Eighty percent of the fee, plus direct
expenses, is payable as provided in schedule 16M upon completion
the official statement, wfth the balance due upon sale of the notes.
b. Any additional services not included above, as authorized, will be pay-
able as provided in our billing rate schedule then in effect.
5. Employment under this proposal is limited to a maximum of 8 months from
thi dhte of authorization tb proceed, or until. April 30, 1983, if earlier.
Services provided thereafter will be billed at the then-prevailing billing rate
schedule. Any fees or fee limitations for work remaining will be propor-
tionately adjusted. .
6. We will not requ.ire a formal contract of employment and will consider a letter
from an approprmte official as sufficient authority to proceed.
Thomas E. Gaffney
President
~[uly 2, 1982
Enclosures
PROPOSi~J~ TO
CITY OF SOUTH SAN FRANCISCO
BARTLE ~q~LLS ASSOCIATES
Municipal Financing Consultants
Battle Wells Associates will perform the following services in connection with the
planning and sale of.assessnient bonds fpr the City of South San Francisco, work-
ing at all times in close cooperation with the city staff and its other cons.u!tan.ts
anal advisorS, We under?tend that assessment proceedings have been initiated
pursuant to the Municipal Improvement Act of 191_3, and _that improvement bonds
shall be issued pursuant to the Improvement Bond Act of 1915.
NOTE SALE SERVICES
1. Preparation for Sale - We will assemble, review, and analyze pertinent data
thai has a bearing'on the_financing program. This ~ill include review of
available new information that serves as a basis for making the best pre-
sentation to the rating agencies and underwriters. Based on our refriew
and analysis we will recommend the terms and conditions for sale of the
bonds, including the maturity schedule, date and methods of sale, provisions
fqr call and redemption and other conditions designed to improve the salability
', of the bonds, and provlde.flexibili. . ty in repayment.. We will work with .the ci~
staff and its consultants m revmwmg the financing program, and w~th legal
counsel in preparing the necessary notice of sale and resolution of issuance.
2~
Rating Services - If rating services seem advisable, we will provide infor-
mation to ~e rating agencies in s. uch form and at such times as to obtain a
favorable rating on the bonds prior to their actual sale. Potential bidders
will be .n, otified of such ratings prior to the sale. We will advise the city
on possible methods of enhancing the bond ~ratings, such as municipal bo, nd
insurance and/or other features, e.g., a letter of credit or contractual
support from outside entities.
3,
Invitation for Bids - We willprepare the text for the official statement describ-
ing' the bonds, the ciW anci its project, the financial resources of the city
and the p, roiect, and the economy and resources of the area. The completed
drafts will be revi.e~,ved by the ciW staff. We will then print at least 100
cop!.e.s of .the official statement and send it, along, with copies of the notice
inwtmg bids, to dealers, investqrs, rating agencies, and others inter, eared
i~n the project or the bonds. At least 20 copies will be furni_shed to_the city
ior its use. We will prepare announcements for insertion in the Bond Buyer
and other publications.
Dealer Contact - We will contact directly major assessment bond dealers in
order to stimulate co~petition in biddin~l and will prepare special announce-
ments for dealers and for .financial pu_b]ications. We will answer inquiries
and re uests for further reformation from prospective purchasers of the
bonds and take other appropriate steps to ]~ami[larlze dealers vnth the clt7
and the bonds.
Preliminary Quotes -'We will request quote from qualified assessment bond
dealers Ul5 to a fixed time, .to be established. Based on the preliminary
~uote that is in the sole o' nnion .of the city, most favorable, we will select
i~e bond un~fer~Titer. At this time we will advise as to whether further
negotations would benefit the city, and will conduct any such negotiations.
BARTLE WELLS ASSOCIATES
BILLING RATE SCHEDULE 16M
1980/81 AND 1981/82
PROFESSIONAL SERVICES
1. Fees for professional services are based on hourly rates for pro-
fessional level personnel as follows:
Research Consultant
Staff Consultant
Consultant
Senior Consultant
Principal Consultant
$36
48
60
75
90
Travel time between 7 AM and 6 PM is not charged when the total
time spent on the job that date exceeds 8 hours.
2. The billing rates for professional'services, based on professional
personnel time only, include all consultant, administrative, and
secretarial salaries~ and overhead and indirect costs as follows:
property and income taxes
routine postage and delivery
library maintenance costs
accounting and legal services
liability and casualty insurance
state disability and workers' comp.
memberships and subscriptions
health, disability & pension premiums
rent and supplies
local telephone
office machine costs
social security
professional development
business license fees
unemployment insurance
sick leave and vacation
DIRECT EXPENSES
Direct expenses, not included in the billing rates for professional
services, are separately billable as incurred at cost plus ten percent
and include: air and surface transportation, subsistence, telephone
toll charges, printing and binding, statistical services, computer
charges, word processing, photography and illustrations, graphic
design, legal services, postage and mailing, bond rating services,
and advertisements.
PAYMENT
Billings will be made monthly as professional services are rendered
and direct expenses are incurred. Bills are payable within 20 days
of the bflting date.
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· ~";", ~'.nonprofit corporation lease-revenue '" Bartle Wells Assocmtes .... · MWD of Orange Coun't~'- ".:' '~: ....
· ' bond issues. "" ' ' : .... ' Bond Marketing Clients
,.., . :. ,' .~. ~ '.. .., ·
A financing consultant's j~b is to . - Alameda County ~"
· facilitate the financing of public works Alameda CWD · "
..... projects by, local governments.. A client . Antelope Valley-East Kern WA -'.
.:".. uses a financing consultant· to C.o. nvert .
State
Highway
Commission
its project concept into a reality/at a "Bear Valley Community Hosp. Dist.. '.
?'.. favorable borrowing cost.: The consul- Belridge WSD
':"r!'2.'~'tant can help the issuer ac~6mplish this '''!''''''~' Cit of Bend, ore on
· .?~!~objective by working closely..with the .'?":~t'~'i City of Benicia
(i;~.~.'agency staff and bond counsel,' by '?:.:i:ii. Berrenda Mesa WD
..'.i:-':'~'developing rating agency ~nd bond i '"':":" Big Bear Area Regional WA
..'~dealer confidence through the distrib'u~' i." Big Bear City CSD
",:~i;~..,.ition of carefully prepared official state-".' Butte County '
i.:'~'a:nents, and through information meet-· ' '~. City of Carlsbad
' ;~.~(-~'?i~ngs for underwriters-,' ". "" ..': .-- ' i....:::~;.Ca~taic Lake Wa' '
~':'-.'~.,.. . · ..... '.'..'.. -: .... ..' ':'"":' ter Agency
'.'t:~.,:..~'.":"Following is a list of representative "City of Chico
'!~:'bond sales.. ' ........ "'"' ' .....
. ,,~Y-:';;~'~i-,,r.'j'3"-,,;?.."~_:'~'..'~' :'. .., .
. ,:-..-k':... ::.':i .-..x:~,:,'.'. ;. ,~t.,~.,:;~'~ ..... '..... .. ' . Chino Basin MWD
· .-~:;"- · Clackamas County, Oregon
.z~.city of Carlsbad ' $ 3,035,000
: Clackamas CSD No. 1, Or. 6,095,000
..... City of Eugene, Oregon 28,565,000
Fairbanks NSB, Alaska .32,500,000
!'-': Lane County, Oregon, - 5,950,000
.. School District No. 4J
Los Angeles County SE 22,500,000
..'..- General Hosp. Authority
'" Monterey Regional PCA 18,000,000
·
MWD of Orange County .79,400,000
State of Oregon, " 125,000,000
· Dept. of Veterans' Affairs
City of Palo Alto .... . 6,450,000
· Phoenix Civic Plaza 19,000,000
Building Corporation
City of Redwood City ' 11,800,000
Richmond Redevelop- 1,475,000
ment Agency
Riverside County 24,000,000
FC&WCD
Sacramento-Yolo Port Dist. 28,225,000
Santa Clara County
Building Authority
Solano County
Tahoe-Truckee SA
Travis Wastewater Auth.
Ven tu ra County .PFC
19,400,000
6,900,000
4,500,000
7,165,000
58,500,000
City of Coalinga
Contra Cqsta Junior College District
City of Cottage Grove, Oregon
Crockett-Valona SD
Cucamonga CWD
City of Cypress
City of Eugene, Oregon
City of Fairfield
Fairbanks North Star Borough, Alaska
Fairfield-Suisun SD
City of Fresno
City of Fort Bragg
Humboldt County
City of Indian Wells
City of La Palma
City of Lake Oswego, Oregon
Lane County, Oregon
Lane County School District No. 4J
City of Larkspur
City of Lincoln City, Oregon
Los Angeles County
Marin County SD No. 6
City of Martinez
City of Modesto
Montecito SD
Morrow County School District No. 1
Mountain View SD
Oak View SD ~.,,'.,.,:~-",': :-
· ~,.'. :.'~,%:. ,~:
Orange County "'/.,'"'iki":':': '
Orange County SD No. 7.'
State of Oregon: ' .--' ~'~: '~:!". · ..':
:."L" .f" .' ·
--Dept. of Environmental
--Dept. of Higher Education
.,-Dept. of Veterans' Affairs
City of Oroville
City of Palo Alto
City of Phoenix, ArizSh'~ :"i. ' ::':'
City of Pleasanton ' .'-.:.~','.'::'~;-:..'.
Rancho California wD
City of Red Bluff ...... -, c~.: ......
,.. '~,~ ,...'.. ~, ..
City of Redwood City · .........
Richmond Redevelopment Agency
Riverside County FD & WCD
. .
City of Roseville -' . ....
.. ...
Sacramento-Yolo Port District
San Bernardino Valley MWD
City of San Clemente . .
City of San Diego
San Francisco Bay Area RTD
City of San Juan Capistrano
Santa Clara County
Santa Margarita WD
City of Saratoga
Seaside CSD
Selma-Kingsburg-Fowler CSD "~
Sewerage Agency of Southern Marin
Solano County
Sonoma Valley CSD :.·-:
City of South San Francisco '
City of Springfield, Oregon
Tahoe-Truckee Sanitation Agency
Travis Wastewater Authority
Triunfo CSD
Tulare Lake Basin WSD
City of Tustin
United WCD
City of Veneta, Oregon
Ventura County
Washington County, Oregon
West San Bernardino C-3ND
MUNICIPAL FINANCING SERVICES. '~..::i~ii ~i) i! '
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Skilled Fin~cing Consulters · ~. of an expe6enced financing consultant/t~:'~:~: the offer and sale of their secu~fies.
Can Save You Money
Battle Wells Associates is an indepen-
dent financing consulting firm, formed
in 1964. Since then our organization
has completed over 200 bond market-
ing assignments for more than 100
public agencies, involving the sale 0f~f
over S1 billion in municipal bonds.
Clients served have ranged from smail
districts in unincorporated areas to
major metropolitan governments,
cities, counties, and state agencies, as
well as special regional agencies includ-
ing up to 25 separate entities.
Bringing a bond issue to market so as
lo attract vigorous competitive bidding
involves a combination of technical
knc~vledge, communication skill, and
.g experience. Bartle Wells
t\ssociates' bond marketing experts are
ready to assist any type of public
agency in the sale of municipal bonds.
Our services include:
· Briefing public information for bond
elections
· Preparing tax rate statements and
ballot arguments
· Drafting bond terms, conditions, and
covenants
· Assisting legal counsel in conducting
formal bond proceedings
· Preparing and distributing official
statements, press releases and
advertisements
· l~resenting financial data for bond
rating agencies
· Encouraging competitive bidding
th rough underwriter contac ts
· Conducting bond dealer 'tours and
information meetings
· Analyzing bids, awarding bonds,
and assisting with delivery
To obtain a low interest cost the
public agency should use the services
Each year billions of dollars of munici,.':::'! ': .The task of the financing consultant is
pal bonds compete for the attention of .~. to assist the issuer in Providing relevant,
underwriters, banks, and dealers. ::.~. _::i. ~: comprehensive financial information.
Sound planning, 'reliable information .... ~..:~/..~ Bartle Wells Associates is known to
and carefully coordinated promotional i'~ ...~'the underwriting profession as an
efforts encourage favorable bond i~'~!!'I~!': independent financing Consulting firm,
ratings and lower interest rates. /~.'.-?-;~;~'i owned entirely by its.employees. We
"-~ A lower interest rate means saving~'i:~i~d,i, do not trade in securities. Because of
to the issuing agency. For example, quality of our official ~ta. tements,
each 1/10 of 1 percent interest rate and because we have no conflict of
reduction results in a savings of over ::ii'~i?interest, we enjoy ii'high level of credi-
$11,000 for a $1 million bond issue with ~ bility among underwriters and dealers.
a 15-year term at 11 percent interest. As :":':i - A technical paper;:,YPreparation of
the amount or term increases, the ' ?~'?i;i-?:~:- Official Statements, 'Prepared for the
potential dollar savings are much '~??"?.:. Municipal Finance Officers Associa-
greater. The financing consultant's
services, tailored to the client's needs,
can be highly cost-effective. :-
Importance of
the Official Statement
One of the outstanding functions per-
formed by Bartle Wells Associates is the
production of substantive, understand-
able official statements. An official
statement must describe the bonds, the
project being financed, and the finan-
cial condition of the agency and its sur-
rounding community, to indicate the
quality of local financial management
and the economic strength of the
issuer. A thorough official statement
enables prospective buyers to rely on a
single document in making their judg-
ment on the issue.
We have complete in-house
resources for providing up-to-date
financial data--including a govern-
mental research library for communi-
ties in California, Oregon, and other
western states, with a continuous flow
of current statistical data from state,
federal, and other agencies.
Municipal issuers are responsible for
providing full financial disclosure in
tion, is available upon request.
Diverse Bond -:-~:.'.:-:~..'
Marketing Experience
Bartle Wells Associates has extensive
experience in the marketing of all types
of securities for public agencies,
inclUding: . ~..
·
· General obligation bonds
· Revenue bonds . -
· Assessment bonds
· Bancroft bonds (Oregon)
· Joint powers authority lease-rental
revenue bonds
· Nonprofit corporation lease-rental
revenue bonds
· Notes and warrants
· Tax allocation bonds
Since its founding in 1964, Bartle
Wells Associates has been a leader in
the use of competitive public bidding
procedures, and in establishing high
standards for official statements. We
were the first consultants to recom-
mend competitive public sale for non-
profit corporation lease-rental revenue
bonds, now required by law in some
states. Clients of Bartle Wells Associ-
ates have competitively sold the largest
·
-.. r
/--~. . ~-~BARTLE WELLS ASSOCIATES
. ~- ~~ FINANCING INNOVATIONS
Battle Wells Associates has extensive experience in the design and
marketing of municipal bonds and in financing public works improve-
ments. We are well-known for our ability to analyze governmental
financial needs and develop innovative financing techniques to serve
our clients. Some of our innovations are described below.
o Bond Marketing. Communication - Upon founding the firm in 1964,
we retained James R. Stockton as graphics consultant to redesign
the entire format of official statement presentation. Each issue is
separately designed to impress the reader with the quality of the
product in the best advertising sense. We back that concept with
thorough technical work so that the combination of presentation
design and technical competence sell our clients' products. We have
set industry standards for quality graphics and presentation.
o General-Communication - We regularly employ Even Peters, a public
relations specialist, to help provide better communication of our
financing recommendations on the local level. The purpose here is
to ensure that local agencies understand and use the most effective
financing methods. In the thirteen years before Proposition 13,
we never lost a California general obligation sewer bond election
requiring a two-thirds majority.
o
o Maturity Schedule Design - To help our clients sell bonds at favor-
able interest rates during the difficult bond markets of the early
1970's, we developed the "hogback" maturity schedule. Under this
design, substantial bonds mature in years 7 through 12, which is
productive for the underwriter' and results in lower total costs for
the issuer. This design derives from the observation, that curves
of constant dollar production are nearly parallel to the usual bond
yield curve within that period, permitting the earlier amortization
of long bonds, which have higher cost.
o Interest Rate Constraints - Beginning in 1970, we developed bidding
constraints to-reduce the present value of the interest costs to our
clients without complicating the evaluation of competitive bids. In
'1974, our use of nondescending-order coupons was studied and
subsequently adopted as a reasonable standard by the Center for
Capital Market Research at the University of Oregon.
o New York Marketing Trip - We have developed a highly effective
marketing tool for our west coast issuers. It consists of direct
15-minute presentations (by appointment) to between 25 and 60
New York bond analysts. We use 8~ x 11 chart handouts and other
visual aids. These materials are expanded for presentations to
the rating agencies and bond dealers. Our competent, effective
presentation has earned us the respect and attention of many New
York analysts, as demonstrated by heavier-than-usual East Coast
interest on issues for which we have made New York trips.
· . ·
FINANCING INNOVATIONS, continued
. . ..7-~
o Revenue Bonds - Battle Wells Associates has developed a number
of innovative techniques for revenue bond cash flow, to protect
the interest of the bondholders while maintaining flexibility for
the issuer. One technique is using the bond reserve fund to
provide the deductible portion of casualty insurance on revenue
and lease rental bonds.
o Nonprofit Corporation Bonds - Bartle Wells Associates has been a
leader in the design and marketing of nonprofit corporation bond
issues in California since 1966. According to Donald Hodgman of
O'Melveny & Myers, Battle Wells Associates was the first firm to
market California nonprofit corporation bonds through competitive
bidding at public sale. Ca~ornia law now requires competitive
sale of such bonds to protect the public interest and better ensure
lower financing costs. We are the first consultants to successfully
design and market nonprofit bonds under a phased-bidding proce-
dure and multi-purpose pro~ects involving several issues. Outside
of the public building field, we marketed the largest issue of non-
profit corporation leasehold mortgage bonds in the nation ($79.4
million) to finance a project.to deliver water to 'ten regional agencies
using subleases.
o Escalating Connection charges - We developed the use of escalating
connection charges as a revenue source to provide sewer and water
capacity for growth. Such charges have not discouraged develop-
ment, and have since become widespread in the western states.
We have successfully marketed revenue bonds paid substantially
from such connection charges.
o Advance Refunding- Competitive Sales - We developed the tech-
nical approach to Competitive sale of advance-refunding issues and
successfully marketed the first such issue in California. We also
advised the Oregon Legislature and State Treasurer, and helped
establish guidelines for approval of advance-refunding issues by
the State Treasurer.
'1 ill
BARTLE WELLS ASSOCIATES
PROFESSIONAL STAFF
Battle Wells Associates is an organization of individual specialists,
offering a unique mix of academic training, experience, and
expertise in municipal finance.
Edwin A. Wells has been a municipal financing consultant in public
works financial planning and bonding methods for over 20 years.
In years of full-time service as a financing consultant to public
agencies, he is the West Coast's senior consultant. Widely recog-
nized as an expert on water supply, water system valuation and
acquisition, sewerage, and public building financing, he is known
also as a principal innovator in the development of lease revenue
financing techniques, including joint powers authority and non-
profit corporation procedures. He has extensive background in
bond marketing techniques, interagency contract negotiations,
and evaluation of publicly financed projects.
Prior to forming Battle Wells Associates, Ed was a general partner
in an investment securities firm. He has an engineering background
with advanced degrees in water supply, sanitary engineering,
and engineering economics. Ed is a registered civil engineer in
California, and served as Treasurer of the Town of Portola Valley
for 12 years.
Thomas E. Gaffney is the firm's president and managing consultant,
and has over fourteen years of consulting experience. He has
directed or participated in water and sewerage financing and insti-
tutional programs, utility rate studies, and bond marketing-programs
involving more than 150 separate agencies in California, Oregon,
and Washington. He has considerable experience with interagency
agreements for regional programs and developing financing plans
and revenue programs for regional projects. He has managed
sales of general obligation, revenue, lease revenue, assessment,
and refunding bonds.
Before joining Battle Wells Associates, Tom served as project
engineer with a major engineering consulting firm where he per-
formed economic analysis and feasibility studies on more than 20
large-scale engineering projects. He has a degree in civil engi-
neering, a graduate degree in finance, and a business management
certificate. He is a registered civil engineer in California.
PROFESSIONAL STAFF, continued
Lora J. Stovall has managed financing plans and institutional
studies in a wide variety of areas, such as sewer and water,
public buildings, flood control, solid waste, recreation, and port
improvements. A financing consultant since 1969, she has directed
the sale of general obligation, revenue, and assessment bonds,
including nonprofit corporation and joint powers authority financing.
She has degrees in journalism and business administration.
William A. Sinsky is a civil engineering graduate of the University
of Santa Clara, where he served as president of the American
Society of Civil Engineers Student Chapter. 'He began working
with Bartie Wells Associates in early 1979. He has participated in
capital improvement programs in California, Oregon, and Washington.
He has been involved as project consultant on over 15 financing
and institutional plans and sewerage revenue programs, and has
assisted in the management of several bond sales. Bill is an
associate member of the A.S.C.E., and holds a current E.I.T.
certificate.
Edwin P. Ricci joined Battle Wells Associates after Serving with
the U.S. Environmental Protection Agency in Washington, D.C.,
for five years as an attorney and senior policy analyst. He has
extensive experience in developing federal regulatory programs
and in working with state and local governments concerning their
involvement with such programs. He has been directly responsible
for the technical, economic, and legal analysis associated with
numerous environmental regulations, and most recently has been
involved in overseeing the planning and implementation of the
national Hazardous Solid Waste Management Program under the
Resource Conservation and Recovery Act. Before joining-the EPA
he worked as a design engineer with two major corporations. He
has a bachelor of science degree in mechanical engineering and
the degree of ]uris Doctor, and is a member of the Pennsylvania
Bar.
Audrey Sherlock is controller of Bartle Wells Associates and is
responsible for the supervision of contract terms with all clients.
She has served as consultant on many bond sales, including school,
water, sewer, port, and public building revenue, lease revenue,
and general obligation bonds. She has over 10 years of experience
in municipal finance based on a background in accounting, business
law, and administration.
_-- ~ BARTLE WELLS ASSOCIATES
REFERENCES
CALIFORNIA
Otto H. W. Bluma, Director of Utilities, City of Thousand Oaks
Arthur T. Cooke, Ir., Bank of America NT&SA, San Francisco
Carlo Fowler, Orrick, Herrington, Rowley & Sutcliffe, San Francisco
Donald R. Hodgman, O'Melveny & Myers, Los Angeles
Robert G. Hutchison, City Manager, City of Roseville
Charles A. Joseph, Manager, Novato Sanitary District, Novato
John A. Lambie, Manager, Ventura Regional CSD, Ventura
H. Ronald Lampson, Manager, Berrenda Mesa Water District, Bakersfield
Charles A. Long, Chief of Redevelopment Services, City of Fairfield
· Dennis E. MacLain, Manager, Municipal Water District of Orange Co., Santa Aha
Richard A. Milbrodt, City Manager, City of South Lake Tahoe
Herbert E. Nelson, City Manager, City of Red Bluff
Melvin Shore, Port Director, Port of Sacramento
William M. Siegel, County Executive, Santa Clara County
Wallace Spinarski, Antelope ValleY-East Kern Water Agency, Lancaster
Fritz Stradling, Stradling, Yocca, Carlson & Rauth, Ne~eport Beach
John A..Tresch, Merrill, Lynch, Pierce, Fenner & Smith Inc., Los Angeles
Everett Williams, Stone & Youngberg Investment Securities, San Francisco
B. Gale Wilson, City l~ianager, City of Fairfield
OREGON
David J. Abraham, Utilities Director, Clackamas County
Norman Bradley, U.S. National Bank of Oregon, Portland
Robert J. Elfers, Director, State Bar Association
(formerly Chief Administrative Officer, Lane County)
Arthur R. Johnson, City Manager, City of Bend
Fred Matthias, Director of Finance, City of Lake Oswego
William K. McGuire, Finance Director, City of' Eugene
Robert McWilliams, City Manager, City of Redmond '
Daniel O. Potter, City Manager, City of Wilsonville
Howard Rankin, Rankin, McMurry, VavRosky & Doherty, Portland
Richard D. Roberts, Ragen, Roberts, O'Scannlain, Robertson & Neil, Portland
Vernon W. Smith, Asst. Superintendent, School District No. 42[, Eugene.
James E. Todd, Director of Finance, City of Springfield
William H. Young, Director, State Department of Environmental Quality
ALASKA
John A. Carlson, Mayor, Fairbanks North Star Borough
NEW YORK
Freda Ackerman, Moody's Investors Service, Inc.
Robert Margolies, Standard & Poor's Corporation
Alan N. Weeden, Weeden & Company, Inc.
· , .
~' BARTLE WELLS ASSOCIATES
-- ~x~ SERVICES OFFERED
FINANCING CONSULTING
Feasibility studies
Alternative project financing analyses and capital programming
Governmental research studies
''Long-range planning, programming, budgeting
MultiPle-agency financing programs
Computer-based financial management and forecasting
Utility rate studies
Public information, plan implementation
Public acquisition of privately owned utilities
Bond refunding program
INSTITUTIONAL STUDIES
Statutory authority of existing local agencies
Statutory authority of alternative general law agencies
Governmental consolidation alternatives
Creation of special enabling legislation
Local agency cooperation through joint powers agreements
Nonprofit corporation techniques
Lease-purchase programs
MUNICIPAL BOND MARKETING
Terms and conditions for sale
Recommendation of covenants for revenue bonds
Cooperation with legal counsel on formal bond proceedings
Preparation and distribution of official statements
Direct dealer contact
Development of competitive bidding
Assistance to rating agencies '
Bid analysis, bond award and delivery
TYPES OF PRO~[ECTS
Electrical power generation and distribution systems
Flood control and water conservation
Hospitals
Industrial liquid waste management
Parks and recreation
Planned communities
Ports and airports
Public buildings
Sewerage
Solid waste resource recovery/management
Transit and transportation
Utility system acquisition
Water supply and reclaimed water
Battle Wells Associates
Who We Are, What We Do
Bartle Wells Associates was established in 1964 expressly to
provide professional assistance to state and local govern-
ments in financing capital improvements and selling bonds.
The firm provides a strong combination of experience, inde-
pendence, and versatility. Its consultants are thoroughly
familiar with governmental organization, financing proce-
dures, and federal and state aid programs.
The firm is wholly owned and controlled by its employees.
Because Bartle Wells Associates is not connected with any
bond sales organizations Or underwriter, its recommenda-
tions are independent of any desire to provide the ultimate
financing. The firm's role is one of agency representative in
offering bonds to the widest possible market. About half of
its business volume derives from consulting without the
prospect of any bond sale.
Bartle Wells Associates has national recognition and
leadership in professional municipal financing consulting.
The firm and its principal consultants are well known by New
York bond underwriters, banks, and rating agencies because
of the quality of work and many years experience in direct
market contacts in New York and other major markets for
western clients.
- - Bartle Wells Associates combines specialized public financ-
ing expertise with engineering economics, general econom-
ics, public administration, bond marketing techniques, and
business journalism. Aside from providing general
consulting services for public agencies, the firm's principal
products are financing feasibility reports and official state-
ments relating to bond sales.
Bartle Wells Associates can serve all types of governmental~.
units. The staff has worked with state agencies, cities,
counties, and many different types of districts in California,
Oregon, Washington, Nevada, and Alaska. The firm teams
with engineering consultants to develop financing programs?:
to support construction of public works projects of all types.
Areas of experience include water, sewerage, water system~
acquisition, solid waste/resource recovery, flood control, irri-~
gation and drainage, parking facilities, ports, schools, streets
and highways, mass transit, electric power, natural gas, parks, i:
hospitals, redevelopment, and public buildings. Financing ·
has been accomplished by sale of general obligation, revenue,;
and assessment bonds; by nonprofit corporation and public
authority revenue bonds; and through state and federal loans
and grants. The firm has been retained many times to create
pay-as-you-go financing plans and to perform rate and
revenue studies related to capital financing plans.
il
Whel
L'..,., a c
,..,in rat
I
I
en To Use a Financing Consultant?
a consultant for complex financial problems, especially
~s¢ of a nonrecurring nature. The staffs of most agencies
rarely meet these requirements. If they do, the agency
v ':,e incurring excessively high overhead costs for main-
an expensive staff on a standby basis, or using it on
~worthy assignments. On the other hand, anything less
m ',he very highest-quality assistance on these major
problems is dearly false economy.
consulting organization must provide its clients superior
ff capabilities more cheaply than they can provide it them-
yes. A well-balanced consulting finn can provide uncom-
high-grade talent in the correct proportions (normally
ite an expensive product), yet incur only a moderate cost to
mt for the work done.
a consultant for:
Maior policy questions for which the agency must rethink
itt assumptions and convictions about financial objectives
a~',3 means.
Po!itical]v sensitive problems where the agency's interests
and '-'"'lic perception seem to differ. Rates and charges
ard. ital formation are characteristic of this type.
Fact- -ting analytical evaluations where extensive
re search and analysis are required into complex situations
u sing specialized techniques and concepts.
Bond sales. The agency must design bond issues so as to
m~.et its capital needs and secure the lowest possible
re:crest rate while remaining attractive to the capital
marketplace.
e o,..~tside consultant has the advantages of:
Seeing the same type of problem in many situations. He
h~:, a body of experience built up from frequent exposure
t~, ~ituations which agency staff encounters only rarely.
Fr,'edom from the assumptions and convictions every
a,:,.ncv develops about itself and its services. The consul-
ta ~: has a major advantage in objectivity because he is not
a ?, :?.ternal career employee.
M::~:'~taining a load factor in his use of time that the inter-
n~:i -taft cannot maintain except on repetitive activities.
I!'= refore the consultant is both more economical and
b~ ::.:r equipped to handle the major non-recurring prob-
k"::: ~r task.
Why Select Bartle Wells Associates?
A financing consultant shOuld be selected on the basis of
qualifications and ability to serve. Good advice from a muni-
cipal financing consultant can be invaluable to the client. The
Bartle Wells organization has special qualifications.
· We are experienced. We have managed the sale of over $1
billion of tax-exempt bonds; and completed 700 financial
studies and bond ma.rketing assignments for more than
250 clients.
· We are aggressive. The savings involved in obtaining the
lowest possible interest rate can amount to thousands of
dollars. We pursue that savings. We do it by digging a
little deeper into all the financing possibilities, by present-
ing the data to the underwriting market a little more
persuasively, or by developing entirely new methods of
raising needed funds.
· We are small enough to provide personal service to every
client. Our consultants can work with every project "in
the shop" long enough to grasp its uniqueness and apply
their experience on similar problems to its solution.
· We are large enough to serve major projects. That means a
staff large enough to handle all the specialized aspects of
the study or the bond issue, and diversified enough to
provide a complete range of services.
· We have an exceptionally qualified, well-educated, and
experienced staff. The principal consultants of Bartle
Wells Associates have more than 60 years combined
experience in all fields of municipal finance.
· We are innovative. We were the first firm to sell nonprofit
corporation bonds at competitive public sale, now re-
quired in some states to reduce interest cost. We were first
to use nonprofit corporation financing for staged, or
"fast-track" construction--avoiding large increases in
construction cost. We marketed the three largest nonprofit
corporation iS~sues in public building finance and the
largest nonprofit corporation issue to provide wholesale
water to ten local agencies.
· We do not deal in securities, and we do not underwrite,
buy, or trade in any of the bonds our clients issue. Thus,
we can be completely independent and unbiased in our
approach to a bond sale.
Bartle Wells Associates
1636 Bush Street
San Francisco 94109
(415) 775-3113
Portland
(503) 228-0608
Front Cover:
Official statement cover graphics
by book designer James Stockton
have provided a quality market-
ing image for over two hundred
new bond issues. The impact of
attractive graphics with creative
research has established Bartle
Wells Associates' consistent
ability to represent each of our
clients effectively in the financial
corr~munity.