HomeMy WebLinkAboutC2011-289 - 8/30/2011 - ApprovedTELEPHONE
AREA CODE 210
030 -4000
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INVESTMENT BANKERS
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Jai,t s4A .9"Was 9'8,009- 9839
August 5, 2011
City of Corpus Christi, Texas
1201 Leopard
Corpus Christi, TX 78401
Re: Approximately $55,000,000 City of Corpus Christi, Texas Utility System
Revenue Improvement Bonds, Series 2011
In regard to serving as the City's financial advisor and consultant, we submit the
following proposal or agreement for your approval and acceptance.
1. Term This Agreement shall be terminated by the delivery to the Purchaser of
all the securities described above, whether delivered all at one time or in installments. It
may be extended for an additional period by mutual agreement in writing. This
agreement may be terminated at any time by either of us by giving thirty (30) days
written notice to the other party.
2. Duties The duties and responsibilities to be performed under this agreement
include consulting and advising the City in the development and implementation of a
financing plan for the issuance and sale of approximately $55,000,000 Utility System
Revenue Improvement Bonds, Series 2011.
3. Compensation The fee will be based on the size of the issue, and computed on
the attached schedule, Exhibit A. The fee will be due and payable from the proceeds of
the Revenue Refunding Bonds. We would expect to be reimbursed for actual out -of-
pocket expenses for telephone, photocopies, facsimile transmissions, printing, computer,
if any, and travel incurred in connection with ratings, municipal bond insurance or
Closing of such fmancing(s).
4. Special Conditions. In addition to the terms and obligations herein contained,
this proposal and agreement is subject to the following special conditions:
a) M. E. Allison & Co., Inc. will incur and pay on behalf of the City the
approved expenses in relation to the issuance of the Bonds and will submit said
expenses for reimbursement at Closing. Approved expenses will include, but
not be limited to, printing, shipping and posting of Official Statement, printing
of Bonds, and travel expenses in relation thereto, Bond sale advertisements,
municipal bond insurance premiums, Attorney General's fees, etc.
M. E. Allison & C%
(b) The City will pay Bond Attorney, Rating Agency fees and Paying
Agent/Registrar directly or will direct M. E. Allison & Co., Inc. to pay these
2011 -289 on behalf of the City from the cost of issuance proceeds subsequent to the
M2011 -190 ag of the bond transaction.
08/30
Continued ...
TELECOPIER
AREA CODE 210
030 -4001
INDEXED
1�
INVESTMENT BANKERS
August 5, 2011
City of Corpus Christi, Texas
1201 Leopard
Re: Approximately $55,000,000 City of Corpus Christi, Texas Utility System
Revenue Refunding Bonds, Series 2011
Page 2
(c) The City will at all times remain responsible for all fees incurred on
behalf of the City in relation to the proposed bond issue. In the event the
contemplated issue is not completed, the City will not owe the financial advisory
fee to M. E. Allison & Co., Inc., but the City will remain responsible for all
expenses incurred by the Firm on behalf of the City as well as all direct
expenses of the City including Bond Attorney and Rating Agency fees.
5. This proposal is submitted in duplicate originals. When accepted by the City, it
will constitute the entire agreement between the City and the undersigned for the purpose
and considerations herein specified. Your acceptance will be indicated by proper
signatures of your authorized officers or representatives on both copies and the returning
of one executed copy to us.
Respectfully submitted,
AC EPTED on
2011.
ATTEST:
City Secretary
Approved as to form:
M. E. ALLISON & CO., INC.
B
Au prized Representative
behalf of the City of Corpus Christi,
City of
the 30 day of
Christi, Texas
rVO- I- ( q AUTO
caurlcll ...og
1 0-Y
Lisa Aguii r
Assistant City Attorney
For City Attorney
A l i
INVESTMENT BANKERS
EXHIBIT A
FINANCIAL ADVISORY FEE SCHEDULE
GENERAL OBLIGATION BONDS
And Not
More than More than
$ $ 250,000
250,000
350,000
500,000
700,000
1,000,000
1,500,000
5,000,000
10,000,000
20,000,000
350,000
500,000
700,000
1,000,000
1,500,000
5,000,000
10,000,000
20,000,000
No Limit
$7,500 plus $20.00 per $1,000 for all over $150,000
$9,500 plus $10.00 per $1,000 for all over $250,000
$10,500 plus $8.00 per $1,000 for all over $350,000
$11,700 plus $7.00 per $1,000 for all over $500,000
$13,100 plus $6.00 per $1,000 for all over $700,000
$14,900 plus $5.00 per $1,000 for all over $1,000,000
$17,400 plus $3.00 per $1,000 for all over $1,500,000
$27,900 plus $1.65 per $1,000 for all over $5,000,000
$36,150 plus $1.00 per $1,000 for all over $10,000,000
$46,150 plus $0.85 per $1,000 for all over $20,000,000
REVENUE BONDS AND COMBINATION TAX & REVENUE CERTIFICATES OF
OBLIGATION
In the event the Bonds to be issued are Revenue Bonds or Combination Tax and Revenue
Certificates of Obligation, Refunding, Direct Pay Subsidy or Lease Purchase Obligations, the fee
shall be the amount computed from the above schedule, plus 25 %.