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HomeMy WebLinkAbout10742 ORD - 03/15/1972Ir R , 4y 3/7/72:vmp AN ORDINANCE AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREE- MENT WITH M. E. ALLISON & CO., INC., A TEXAS CORPORATION, FOR SERVICES OF SAID COMPANY AND M. E. ALLISON AS FINANCIAL ADVISORS FOR THE CITY•OF CORPUS CHRISTI IN CONNECTION WITH THE SALE OF REVENUE AND GENERAL OBLIGATION BONDS FOR A PERIOD OF FIVE YEARS, ALL AS MORE FULLY SET FORTH IN THE AGREEMENT, A COPY OF WHICH IS ATTACHED HERETO, MARKED EXHIBIT "A ", 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 to enter into an agreement with M. E. Allison & Co., Inc., a Texas corporation, for services of said company and M. E. Allison as Financial Advisors for the City of Corpus Christi in connection with the sale of revenue and general obligation bonds for a period of five years, all as more fully set forth in the agreement, a copy of which is attached hereto, marked Exhibit "A ", and made a part hereof. SECTION 2. The necessity to immediately authorize exe- cution of the aforesaid agreement in order that plans for the bond sale may proceed without delay 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 ordinance 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 the suspension of the Charter rule 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 the �.1, 7AJ day of 1972. /"� 17 O THE CITY OF gOREJUS CHRISTI, TEXAS 10742 Corpus Christi., Texas Honorable Mayor and City Carmissioners City of Corpus Christi, Texas 1Gentlemen: 1972 By this proposal we offer our professional services and our faci- lities as Financial Advisors and agree to perform the following duties, nor - Emally performed by such advisors and to perform such other duties as in our i judgment may be necessary, advisable, helpful and reasonably proper for your City in connection with the marketing of your City's bonds, including General ' Obligation Bonds, Revenue Bonds and Refunding Bonds, Allison & Co. to act as bogd !Financial Advisor for City for five years except as to any lan& sale that the City may decide to sell using only City staff personnel to handle all aspects ,of the land sale during the period of this agreement or any extension and I Iamendment thereto. As to Revenue. Bonds, we agree: Th make a study of the operating results of all of your utility sys- tems and a study in special detail of the system against which re- venue bonds are proposed to be sold, and after taking into account any outstanding obligations which are payable fran the net revenues thereof, additional net revenues'to arise fran proposed rate in- creases, if any, and additional revenues as projected by your Con- sulting Fhgineers; to devise and recc amend 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 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. As to General Obligation Bonds, we agree: To make a study of the debt structure of your City, the trend of its assessed valuation, its taxing power and the present and estimated future taxing req ire-ents, and.on the basis of such study to de- vise and reecauend for your approval a plan of financing to cover the proposed bonds. Such plan shall include a maturity schedule —1— and other terms and conditions such as options of prior payment and the like, as will in our opinion result in the issuance of the bonds under terms and conditions most advantageous to your City consis�- tent with a minimum effective interest rate. 1. 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 delivery of the bonds and who will issue their approving opinion as to the legality of the bonds. All financial services rendered 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 obtain the unqualified approving opinion of said attorneys. The fees of said attorneys will be paid by the City. 2. To advise you of current Municipal Bond market conditions, forth- coming bond issues and other general information and economic 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 advisable. 3. To attend to the printing of the bonds. To prepare and submit to Standard & Poors Corporation, Moody's Investors Service, Inc. , Dun and Bradstreet, Inc. and the Municipal Advisory Council of Texas all information required by the rating agencies to assign a rating on the Bonds. Fees charged by the rating agencies will be paid by City. 4. 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 information of the na- ture 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. We agree to assist you in compiling -2- 5 t financial and related information to be submitted with applications for loans, grants or other assistance from State and Federal source for which the City may be eligible. 5. To prepare the Official Bid Form to be approved by Messrs. McCall, Parkhurst & Horton, containing provisions recognized as standard by the municipal securities industry. : 6. 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. We will compute and advise the Director of Finance, the amount due City for payment of the Bonds. 7. 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 expenses 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 reimbursement for travel and communication expenses and as reimbursement for professional services rendered, the City is to pay and the Financial Advisor is to accept a cash fee to be computed on the recommended fee sche- dule of the Municipal Advisory Council of Texas as the recommends minimum fee for professional services only. A copy of the re- commended fee schedule dated April 1, 1970 is attached hereto and made a part hereof. It is understood and agreed that the officials of your City will co- operate with us and the heretofore bond attorneys in. the passage of all neces- sary orders or resolutions and in the completion of all certificates to be re- quired in the issuance of the bonds. This agreement shall be terminated on /�f 2rcLi /S', but may be extended by mutual consent. 3 - This proposal is submitted in duplicate originals and when accept- ed by you it will constitute the entire agreement between your City and the undersigned for the purpose and considerations herein specified. 'Your ac- ceptance will be indicated by the signature of your City Manager, attested by your City Secretary on both copies and returning one executed copy to us. Respectfully submitted, M. E. ALLISON & CO., INC. By: ACCEPTED: CITY OF CORPUS CHRISTI, TEXAS BY: ATTEST: -4•• . •j5% 5.. - .. ADDENDUM TO BOOKLET, " FMANCIAL ADVISORY SER. _ _cS FOR M1IIJNICII'ALl't'II :s -- STANDARDS OF PERFORMANCE AND RCOM1DD MINNIUM1 ITGS AS REVISED AND ADOPTED BY MUNICIPAL ADVISORY COUNCIL OF 'TEXAS, APRIL I, 1970. X. RECOMMENDED MINIMUM FEES FOR PROFESSIONAL SERVfcls ONLY In those instances where a municipality may desire to pay the expenses of a lnancing 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 part. 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 employees of the financial advisor and reproduction costs of notices of sale and related matter printed in his own office shall be paid by him. As reimbursement for travcl and communication expenses and as reasonable compensation for the professional services rendered, the Municipal Advisory Council of x 4 Texas recommends that financial advisory contracts observe the follow- ing basic fee schedule which shall be modified as indicated where revenue bonds arc involved. A. BASIC SCHEDULE If the Amount of Bonds De- livered to the Purchaser is: More And Not Than More Than The Recommended Minimum Fee Is $ -0- $ 250,000 $2,500 plus $10.00 per $1,000 for all over $150,000 250,000 350,000 $3,500 plus $5.50 per $1,000 for all over $250,000 350,000 500,000 $4,050 plus $3.00 per $1,000 for all over $350,000 500,000 700,000 $4,500 plus $2.90 per $1,000 for all over $500,000 700,000 1,000,000 $5,080 plus $2.80 per $1,000 for all over $700,000 1,000,000 1,500,000 $5,920 plus $2.70 per $1,000 for all over $1,000,000 1,500,000 5,000,000 $7,270 plus $1.40 per $1,000 for all over $1,500,000 5,000,000 10,000,000 $12,170 plus $0.95 per $1,000 for all over 10,000,000 20,000,000 $16,920 plus $0.60 $5,, 10,000,000 for all over $10,000,000 20,000,000 No Limit $22,920 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 front the Basic Schedule above. •- C. REVENUE BONDS The recommended minimum fee for Revenue Bonds issued in a single installment shall be the amount as computed from the Basic Schedule plus 25 %. i 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 12517o 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 any installment which is less than 33 113 %, of the total amount of bonds covered by the financial ad- visory contract shall be treated as a separate issue and the fee shall be 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 $2,000,000 would be $9,127.50 and $6,085.00, respectively; whereas, the fee for the same bonds issued in three installments of $2,500,000, $2.000,000 and $500,000 would be $7,606.25, $6,085.00 and $4,500.00, respec- tively.) • p l Reprint April 1, 1970 I ; :1 CORPUS CHRISTI, TEXAS 1-45-M) DAY O , 19 Z 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 COUNCIL; 11 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. L J. / O / /_ THE CITY OF CORDICS/CHRISTI, TEXAS THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE: RONNIE SIZEMORE CHARLES A. BONNIWELL ROBERTO BOSQUEZ, M.D. REV. HAROLD T. BRANCH THOMAS V. GONZALES ' GABE LOZANO, SR. J. HOWARD STARK THE ABOVE ORDINANCE WAS PASSED BY THE FOLLOW] VOTE: RONNIE SIZEMORE CHARLES A. BONNIWELL ROBERTO BOSQUEZ, M.D. REV. HAROLD T. BRANCH THOMAS V. GONZALES GABE LOZANO, SR. J. HOWARD STARK i