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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 o o 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