HomeMy WebLinkAboutReso 55-1987 RESOLUTION NO. 55-87
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION AUTHORIZING APPOINTMENT OF FINANCIAL ADVISOR
(ORANGE MEMORIAL PARK EXPANSION AND IMPROVEMENT)
WHEREAS, the City Council of the City of South San Francisco is interested
in expanding and improving Orange Memorial Park; and
WHEREAS, such expansion and improvement would need to be financed through
the issuance of bonds; and
WHEREAS, the City desires to obtain financial advisory services in connec-
tion with the issuance of bonds;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South
San Francisco that the City Manager is authorized to execute on behalf of the
City a Letter Agreement dated April 15, 1987 between the City of South San
Francisco and Stone & Youngberg.
as Exhibit "1".
A copy of the Letter Agreement is attached
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 13th day of May , 198 7 , by
the following vote:
AYES:
NOES:
ABSENT:
Councilmembers John "Jack" Draqo, Richard A. Haffey, Gus Nicolopulos,
Roberta Cerri Teglia. and Mark N. Addieqo
_ None
None
~ATTEST :~:~i~ -~
EXHIBIT I TO RESOLUTION NO. 55-87
STONE & YOUNGBERG
MEMBERS: PACIFIC STOCK EXCHANGE
April 15, 1987
City Council
City of South San Francisco
400 Grand Avenue
South San Francisco, CA 94080
Attn: Mark Lewis, Deputy City Manager
Subject' Financial Advisory Contract for General Obligation Bonds
Dear Mark:
Thank you for the Opportunity to submit a contract for financial advisory
services regarding the City's proposed general obligation bond financing.
SERVICES
The following is a list of financial advisory services Stone & Youngberg
will provide upon designation as the City's financial advisor. This list is
not all inclusive and only represents typical services required to consummate
a financing. As financial advisor to the City, Stone & Youngberg will commit
its full resources and energies toward a successful financing.
As financial adviser to the City, Stone & Youngberg will work with staff
and other project participants in reviewing and applying economic
information and cash flow projections in structuring the financing.
Stone & Youngberg will work with the City's Bond Counsel, Jones Hall Hill
& White, and staff in recommending specific terms and conditions affecting
the basic security, of the bond issue.
3. Stone & Youngberg will assist the City in selecting and in preparing a
list of services required of the Bank Trustee.
Stone & Youngberg will conduct a cash flow analysis that determines the
optimum maturity structure based on market conditions and security
provisions.
Stone & Youngberg will prepare the text of a bond prospectus for sale of
the securities. The prospectus will include a description of the
securities, the project, and pertinent financial and economic data. In
the preparation of such prospectus, we will assist the City in the
ONE CALIFORNIA STREET ' SAN FRANCISCO, CALIFORNIA 94111 ' (415) 981-1314
'1 II T
City Council
City of South San Francisco
April 15, 1987
Page 2
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ascertainment of all material facts and circumstances regarding the
project and ~n.their disclosure in the prospectus. The prospectus will
be printed and mailed, together w~th copies of the official notice of
sale and basic legal documents, to a comprehensive list of prospective
bidders.
At the d~rection of the City, Stone & Youngberg will contact one or more
bond insurance companies and/or rating agencies and provide them with
sufficient information to obtain the h~ghest possible rating on the
securities prior to their sale.
Stone & Youngberg will represent the City at information meetings in New
York, San Francisco or Los Angeles, if such meetings are necessary or
desirable.
Stone & Youngberg will represent the C~ty at the bid opening for a
public sale and will analyze the bids, ~dentify the most favorable bid
for the City, and make a recommendation as to award of the bid. Ne w~ll
act as the City's agent ~f bid negotiations are required. After the bid
is awarded, we will prepare for the City an actual debt service table
based on accepted interest rates.
COMPENSATION
Stone & Youngberg is prepared to begin work at once on behalf of the
City based on a compensation schedule which would be due and payable only upon
the successful closing of the financing.
It is understood that the contingent fee for the General Obligation Bond
issue will be $20,000. If the authorized amount of general obligation bonds
is sold in two or more series pursuant to a General Resolution, the financial
advisory fees would be $15,000 per sale.
In addition to the above compensation schedule, Stone & Youngberg will
be reimbursed by the City for any out-of-state travel made in connection with
the f~nancing and approved by the City, any printing expenses for the
securities and Official Statements, any mailing and shipping costs associated
with the Official Statements incurred on behalf of the City, any third party
computer charges incurred, and any charges made by the rating agencies, bond
insurers, and California Municipal Statistics Inc. Such charges will be the
responsibility of the City and independent of the sale and delivery of the
bonds.
gtty Council
City of South San Francisco
Aprtl 15, 1987
Page 3
CITY APPROVAL REQUIRED FOR STONE & YOUNGBERG TO BID SECURITIES
It is expressly understood and agreed between the Ctty and Stone &
Youngberg, that Stone & Youngberg may only submit a bid to purchase all or
some portion of the City's securities sold through a competitive public sale,
upon receiving specific approval from the City. This contract is deemed to
constitute such specific approval.
CONCLUSION
Stone & Youngberg appreciates the opportunity to serve as financial
adviser for the City. As a representative of Stone & Youngberg, I look
forward to working with you in meeting your financing objectives.
This contract, when countersigned below, will constitute and agreement
between Stone & Youngberg and the City regarding financial advisory services.
Sincerely,
STONE &fNG/SE//RG J//
Partner
City of South San Franci'sco
SCS:cn
(0081C)
cc: Don McVey