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HomeMy WebLinkAboutReso 180-1984RESOLUTION NO. 180-84 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 SECOND PHASE OF THE GATEWAY PROJECT BE IT RESOLVED by the City Council of the City of South San Francisco that: 1. The firm of Bartle 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 second phase of 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 Consultants," which proposal is attached hereto as Exhibit "A" and incorporated herein 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 an adjourned regular meeting held on the 9th day of November , 1984, by the following vote. AYES' NOES: Councilmembers Mark N. Addiego, Emanuele N. Damonte, Richard A. Haffey, Gus Nicolopulos; and Roberta Cerri Teglia None ABSENT- None EXHIBIT "A" TO RESOLUTION NO. 180-84 PROPOSAL TO CITY OF SOUTH SAN FRANCISCO BARTLE WELLS ASSOCIATES Municipal Financing Consultants Battle Wells Associates will perform the following services in connection with the financial planning and sale of assessment bonds for the City of South San Francisco Gateway Assessment District, working at all times in close cooperation with the city's staff and its other consultants and advisors. BOND SALE SERVICES 1. Preparation for Sale - Assemble, review, and analyze pertinent data that has a bearing on the financing program. This will include review of available new information that serves as a basis for making the best pre- sentation to the rating agencies and bond underwriters. Based on this review and analysis, recommend terms and conditions for sale of the bonds, including the maturity schedule, date and methods of sale, provisions for call and redemption, and other conditions designed to improve the salability of the bonds and provide flexibility in repayment. Work with the city staff and its consultants in reviewing the financing program, and with bond counsel in preparing the necessary notice of sale and resolution of issuance. 2. Bond Ratinc[ Services - If bond rating services seem advisable, provide information to bond rating agencies in such form and at such times as to obtain a favorable rating on the bonds prior to their actual sale. Notify potential bidders of such ratings prior to the sale. Also at this time advise the city on whether or not to prequalify the bonds for municipal bond insurance. 3. Invitation for Bids - Prepare the text for the official statement describing the bonds, city, the assessment district and its projects, the financial resources of the city and district and the projects, and the economy and resources of the area. After city staff reviews the completed drafts, print at least 300 copies of the official statement and send it, along with copies of the notice inviting bids, to bond dealers, investors, rating agencies, and others interested in the projects or the bonds. Furnish at least 20 copies to the city for its use. Prepare announcements for insertion in the Bond Buyer and other publications. 4. Dealer Contact- Contact major assessment bond dealers directly to stimulate competition in bidding. Prepare special announcements for dealers and for financial pUblications. Answer inquiries and requests for further information from prospective purchasers .of the bonds and take other appropriate steps to familiarize dealers with the bonds, the city, and the assessment district. · Sale ..a~d Deliver~ of the Bonds - Attend the bid opening, analyze in detail all bids received, select the lowest bid at the sale, make recommendations to the city as to award of the bonds, and assist bond counsel in preparing the resolution of award. Act as agent for the city ff any negotiations are required. If requested, supply a list of bond printers and paying agents to assist the city in selecting these firms competitively. Furnish a schedule of annual interest and principa! .l~,yments required on the basis of the interest rates specified in the winning bid. ADDITIONAL SERVICES We will be available to provide additional financing consulting services, whether before or after the sale of bonds, as requested by the city. AVAILABILITY AND FEES 1. We are prepared to begin work upon your written acceptance of this proposal. 2. During the project development period, we will be available at all reasonable times and on reasonable notice for meetings and for consultation with the city council, its staff, attorneys, consulting engineers, bond dealers, rating analysts, and 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 bonds, commencing 120 days before the estimated date of sale and continuing for up to 60 days following the sale, the fee is $12,500 plus one-quarter of 1 percent of the principal amount of bonds sold, but not less than $20,000, plus direct expenses. Progress payments, plus direct expenses, are payable as the work proceeds as provided in our billing rate schedule 20A. In the event the bonds are not sold, our fee will not exceed $12,500 plus direct expenses, payable as provided in schedule 20A. b. Any additional services not included above, as authorized, will be payable as provided in our billing rate schedule then in effect. 5. Employment under this proposal is limited to a maximum of 12 months from the date of this proposal. To the extent the project development period exceeds the time limit covered under this proposal, services provided there- after will be billed according to the then-prevailing billing rate schedule. Any fees or fee limitations for work remaining will be adjusted. Thomas E. Gaffney President October 31, 1984 Enclosures BARTLE WELLS ASSOCIATES BILLING RATE SCHF, D~E 20A 1984/85 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 Limited Assignment $ 40/hr. 55/hr. ?O/hr. 90/hr. I10/hr. 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- properW, payroll & income taxes .routine postage in-house computer costs accounting and legal services liability and casualty insurance state disability insurance memberships and subscriptions health and disability rent local telephone office machine costs social security professional development workers' compensation 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, typography and printing, photocopying and binding, statistical services, contract computer charges, word processing, photography and illustrations, graphic design, legal services, courier and delivery charges, mailing service charges, 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 billing date. October 31, 1984 Bartle Wells Associates Municipal Financing Consultants 1636 Bush Street San Francisco 94109 415 775-3113 City of South San Francisco 400 Grand Avenue South San Francisco CA 94080 Attention- C. Walter Birkelo, City Manager Subject: Financing Consulting Services Gateway Assessment Bonds As independent municipal financing consultants we have carefully prepared and submit for your consideration this proposal to act as financing consultant for the City of South San Francisco in connection with the Gateway Assessment District. Our proposal describes the services our firm will provide, designates individuals who will be assigned, and sets the fees for such services. To work with you we propose to assign Thomas E. Gaffney, and Lora J. Stovall. Both Lora and Tom are partners of Battle Wells Associates and assisted the city with the Series A issue in 1983. Other members of our firm will assist as needed. Bartle Wells Associates is uniquely well qualified to serve the city without con- flict of interest of any kind. Our firm is owned and managed entirely by its own staff. We do not buy, retail, or trade in municipal bonds. We would act as the city's representative in offering its bonds to the widest possible market. Bartle Wells Associates is uniquely prepared to serve the city without conflict of interest of any kind. Our firm was established in 1964 expressly to provide unbiased, professional advice to public agencies on the organizing and financing of improvement projects. We have completed over 700 project assignments and supervised the sale of over $1 billion of municipal bonds with this successful format. Bartle Wells Associates has had extensive, directly applicable experience in the competitive marketing of assessment bonds, having sold over $60 million of assessment bonds in the past two years using competitive-basis marketing. In addition to our experience with conventional competitive bidding for assess- ment bonds, our firm has developed a new competitive method for placing assessment bonds among a limited number of preselected underwriters. This competitive placement method offers special benefits to the issuer in certain projects. We sincerely appreciate your invitation to submit this proposal, and hope that it will provide a suitable basis for our selection. We do not require a formal contract and will begin work upon written authorization from an appropriate city official. Very truly yours, BARTLE ~LLS ASSOCIATES Thomas E. Gaffney, President TEG:mt ?14-J