HomeMy WebLinkAbout10742 ORD - 03/15/1972Ir R ,
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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
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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
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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
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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
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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:
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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.
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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 %.
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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.)
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Reprint
April 1, 1970
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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