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Home My WebLink About09154 ORD - 12/04/19680 JKH:12 -4 -68 AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE, FOR AND ON BEHALF OF THE CITY, A CONTRACT WITH M. E. ALLISON & CO., INC., OF SAN ANTONIO, TEXAS, A TEXAS CORPORATION, FOR THE SERVICES OF SAID COMPANY AND M. E. ALLISON AS FINANCIAL ADVISORS FOR THE CITY IN CONNECTION WITH THE SALE OF ADDITIONAL WATERWORKS REVENUE BONDS, A COPY OF WHICH AGREEMENT IS ATTACHED HERETO AND MADE A PART HEREOF; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. THAT THE CITY MANAGER BE, AND HE IS HEREBY, AUTHORIZED AND DIRECTED, FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI, TO ENTER INTO AN AGREEMENT WITH M. E. ALLISON & CO., INC., A TEXAS CORPORATION, FOR THE SERVICES OF SAID COMPANY AND M. E. ALLISON AS FINANCIAL ADVISORS FOR THE CITY IN CONNECTION WITH THE SALE OF ADDI- TIONAL WATERWORKS REVENUE BONDS, A COPY OF WHICH AGREEMENT 15 ATTACHED HERETO AND MADE A PART HEREOF. SECTION 2, THE NECESSITY TO IMMEDIATELY ENTER INTO AN AGREEMENT WITH M. E. ALLISON & CO., INC., AS SET FORTH HEREINABOVE CREATES A PUBLIC EMERGENCY AND AN IMPERATIVE PUBLIC NECESSITY REQUIRING THE SUSPENSION OF THE CHARTER RULE THAT NO ORDINANCE OR RESOLUTION SHALL BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION AND THAT SUCH ORDI- NANCE OR RESOLUTION SHALL BE READ AT THREE SEVERAL MEETINGS OF THE CITY COUNCIL, AND THE MAYOR HAVING DECLARED THAT SUCH EMERGENCY AND NECESSITY EXIST, AND HAVING REQUESTED THAT SUCH CHARTER RULE BE SUSPENDED, AND THAT THIS ORDINANCE BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION AND TAKE EFFECT AND BE IN FULL FORCE AND EFFECT FROM AND AFTER ITS PASSAGE, IT IS ACCORDINGLY SO ORDAINED, THIS rHE oar of DE CE BER, 1968. ATTEST: ° CITY SE RETARY MAYOR PRT Iem THE CITY OF CO y CHRISTI, TEXAS _DAY OF DECEMBER, 1968: CITY ATT RNEY 91'r-_14 Corpus Christi, Texas 1968 Honorable Mayor and City Commissioners City of Corpus Christi, Texas Gentlemen: By this proposal we offer our professional services and our fa- cilities as Financial Advisors and agree to perform the following duties normally performed by such advisors and to perform such other duties as in our judgment may be necessary, advisable, helpful, and reasonably pro- per for your City in connection with the marketing of your City's Water Re- venue Bonds during the period of this agreement or any extention and amend- ment thereto. We agree: a) To make a study of the operating results of all of your utility systems and a study in special detail of the water system a- gainst which revenue bonds are proposed to be sold and after taking into account any outstanding obligations which are paya- ble from net revenues thereof, additional net revenues to arise from proposed rate increases, if any, and additional revenues as projected by your Consulting Engineers; to devise and re- commend for your consideration a plan of financing to cover the proposed revenue bonds. Such plan shall include a maturity schedule and other items and conditions such as options of prior payment, retention of the right to issue Additional Bonds and the like, as will in our opinion result in the issuance and sale of the bonds under terms and conditions most advantageous to your City. b) We understand you have retained Messrs. McCall, Parkhurst & Horton, a firm of recognized municipal bond attorneys, who will prepare the proceedings and advise the steps necessary to be taken for the legal issuance of the bonds and the final de- livery of the bonds and who will issue their approving opinion as to the legality of the bonds. All financial services rendered -1- pursuant to this contract will be performed in such manner and will include assembling and accumulating such financial facts, information and data as will be necessary or appropriate to ob- tain the unqualified approving legal opinion of said attorneys. The fees of said attorneys will be paid by the City. C) To advise you of current Municipal Bond market conditions, forthcoming bond issues and other general information and eco- nomic data which might normally be expected to influence the interest, rates or bidding conditions so that the date for the sale of the bonds can be set at a time which will in our opinion be ad- visable. d) To attend to the printing of the bonds: 1, To compile from your official records for submission and approval by your governing body of an Official Notice of Sale and Official Statement containing official data and other infor- mation of the nature and to the extent ordinarily required in bidding on bonds of the type being offered, all of which we will furnish in a sufficient number of copies to permit mailing to prospective bidders, a list of which we agree to provide. 2. To prepare the Official Bid Form to be approved by Messrs McCall, Parkhurst & Horton, containing provisions recognized as standard by the municipal securities industry. L. To notify the City's Director of Finance at least one day in advance of the day on which delivery of the bonds is expected to be made at a bank in Austin, Texas. 4. We agree to direct and coordinate the entire program of financing herein contemplated. It is understood that all expenses of the program of every kind and character shall be paid by the City. Travel within the State of Texas and communication ex- penses of all officers and employees of the Financial Advisor and reproduction costs of Notices of Sale and printed matter in its own office shall be paid by Financial Advisor. As reim- bursement for travel and communication expenses and as rea- - 2 - compensation for professional services rendered the City is to pay and the Financial Advisor is to accept a cash fee to be com- puted on the fee schedule currently recommended by the Muni- cipal Advisory Council of Texas as the recommended minimum fees for professional services only, as follows: And Not More Than: More Than Fee is: $150,000 $1,500 150,000 250,000 $1, 500 plus $7.50 per $1, 000 for all over $150,000 250,000 350,000 $2, 250 plus $4.00 per $1, 000 for all over $250,000 350,000 500,000 $2, 650 plus $2.00 per $1, 000 for all over $350,000 500,000 700,000 $2, 950 plus $1.30 per $1, 000 for all over $500,000 700,000 1,000,000 $3,310 plus $1.50 per $1, 000 for all over $700,000 1,000,000 1,500,000 $3, 760 plus $1.00 per $1, 000 for all over $1, 000, 00 1,500,000 5,000,000 $4, 260 plus $0.70 per $1•, 000 for all over $1,500,000 5,000,000 10, 000, 000 $6,710 plus $0.50 per $1, 000 for all over $5,000,000 10, 000, 000 20, 000, 000 $9, 210 plus $0.375 per $1, 000 for all over $10,000,000 20,000,000- No Limit 12, 960 plus $0.25 per $1, 000 for all over $20,000,000 , The recommended minimum fee for Revenue Bonds issued in a single installment shall be the amount as computed from the basic schedule set out above plus 25%. Should M. E. Allison become unable to personally render the services required under this agreement, the City may terminate it without liability for fees for unissued bonds. It is understood and agreed that the officials of your City will cooperate with us and the heretofore bond attorneys in the passage of all necessary orders or resolutions and in the completion of all certificates to be required in the issuance of the bonds. This agreement shall be terminated on but may be extended by mutual consent. This proposal is submitted in duplicate originals and when ac- cepted by you it will constitute the entire agreement between your City and - 3 - the undersigned for the purpose and considerations herein specified. Your acceptance will be indicated by the signature of your City Manager, attest- ed by your City Secretary on both copies and returning one executed copy to us. Respectfully submitted, M. E. ALLISON & CO., INC. ACCEPTED: BY: CITY OF CORPUS CHRISTI BY R. MARVIN TOWNSEND CITY MANAGER ATTEST: APPROVED: DAY OF DECEMBER, 1968: CITY SECRETARY CITY ATTORNEY DIRECTOR OF FINANCE ADDENDUM TO BOOKLET, "FINANCIAL ADVISORY SERVICES FOR MUNICIPALITIES— STANDARDS OF PFRFORMANCE AND RECOMMENDED MINIMUM FEES ", AS REVISED AND ADOPTED BY MUNICIPAL ADVISORY COUNCIL OF TEXAS, JUNE I, 1965. X. RECOMMENDED MINIMUM FEES FOR PROFESSIONAL SERVICES ONLY In those instances where a municipality may desire to pay the expenses Of a financing program direct, the financial advisory contract shall in no wise reduce the extent of the services to be performed by the finan- cial advisor as enumerated in the booklet of which this addendum is a par.. Such contracts shall provide that all expenses of the financing program Of every kind and character shall be paid by the municipality except that travel and communication expenses of all cmployces of the financial advisor and reproduction costs of notices of sale and related matter printed in his own office shall he paid by him. As reimbursement for travel and Communication expenses and as reasonable compensation for [hc professional services rendered, the Municipal Advisor• Council of Texas recommends that financial advisory contracts observe the follow- ing basic fee schedule which shall he modified as indicated whcrC revenue bonds are involved. A. BASIC SCHEDULE If [lie Arnou+tt of Bonds De- Ih•ererl ru the Purchaser is: More And Nor Than Alore Than The Rern+mnemled .11inimum Fee I., S —0— 5 150,000 51,5(10 150.000 250,000 $1,500 plus $7.50 per 51.000 for 250,000 350,000 all over S150,000 $2.250 plus $4.00 per 51,000 for i 350,000 500,000 all over S250,000 S2,550 plus $2.00 per $1,000 for 500,000 700,000 all over $350.000 $2,951) plus $1.80 per $1,000 for 700,000 1,000,000 all over $500,000 $3,310 plus $1.50 per S1,000 for 1,000,000 1,500,000 all over $700.000 $3,760 plus 51.00 per $1,000 for 1,500,000 5.000,000 all over $1,000,000 $4,260 plus $0.70 per $1.000 for 5,000,000 10,000.000 all over S 1,500,000 S6,710 plus $0.50 per $1,000 for 10,000,000 20,000,000 all over per $ 00 $9,210 plus $0.375 per $],, 000 for • 20,000,000 No Limit all over $10,000,000 $12,960 plus $0.25 per $1,000 for all over $20,000,000 B. GENERAL OBLIGATION BONDS The recommended minimum fee for General Obligation bonds is- sued in a single installment shall be the net amount as computed from the Basic Schedule above. C. REVENUE BONDS The recommended minimum fee for Revenue Bonds issued in I single installment shall be the amount as computed from the Basic Schedule plus 25%. D. MULTIPLE INSTALLMENTS When bonds (General Obligation or Revenue) are issued in mul. tiple installments, the recommended fee for each installment shall be computed as 125!: of the pro rata part of the total fee which would otherwise be due upon issuance of all bonds covered by the contract in a single installment; except that Inv installment which is less than 331 /,rl /, of the total amount of bonds covered by the financial ad- visory contract shall be treated as a separate issue and the fee shall he computed directly from the Basic Schedule above. ( For example, the fee for $5,000.000 General Obligation Bonds issued in two installments of $3,000,000 and S2,000.000 would he $5,032.50 and S3,355.00, respectively; whereas, the fee for the same bonds issued in three installments of $2,500,000, $2.000,000 and $500,0(10 would be $4,193.75, $3,355.00 and $2.950.00, respectively.) Reprint July, 1967 CORPUS CHRISTI, TEXAS DAY OF �® TO THE MEMBERS OF THE CITY COUNCIL CORPUS CHRISTI, TEXAS FOR THE REASONS SET FORTH IN THE EMERGENCY CLAUSE OF THE FOREGOING ORDINANCE, A PUBLIC EMERGENCY AND IMPERATIVE NECESSITY EXIST FOR THE SUSPEN- SION OF THE CHARTER RULE OR REQUIREMENT THAT NO ORDINANCE OR RESOLUTION SHALL BE PASSED FINALLY ON THE DATE IT IS INTRODUCED AND THAT SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT THREE MEETINGS OF THE CITY COUNCILS I, THEREFORE, REQUEST THAT YOU SUSPEND SAID CHARTER RULE OR REQUIREMENT AND PASS THIS ORDI- NANCE FINALLY ON THE DATE IT IS INTRODUCED, OR AT THE PRESENT MEETING OF THE CITY COUNCIL. RESPECTFULLY, MAYOR PIo• IPfil THE CITY OF C P CHRISTI, TEXAS THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE: JACK R. BLACKMON RONNIE SIZEMORE V. A. "DICK" BRADLEY, JR. P. JIMENEZ, JR., M.D. GABE LOZANO, SR. KEN MCDANIEL W. J. "WRANGLER" ROBERTS THE ABOVE ORDINANCE WAS PASSED BY THE FOLLOWING VOTE: JACK R. BLACKMON RONNIE SIZEMORE V. A. "DICK" BRADLEY, JR. P. JIMENEZ, JR., M.D. GABE LOZANO, SR. KEN MCDANIEL W. J. "WRANGLER" R05ERTS