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