HomeMy WebLinkAboutFinancial Study - Stone & Youngberg - 1964 III Finance Consultant - Stone & Youngberg
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Stone 6 Tomgberg
1U 4 ftos Building
Ban Fmneisca 4, California
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Gentlemen:
faelosed is the executed copy of tka Agreement for
a financial study of the City of Cupertino.
You will note "hat there has been the words "or„
and "acquisition" added to the fourth and firth line
following the "Witnesaseth", on the first page. Lee _
Mitchell and the Mayor of Cupertino have initialled
this addition.
On page 3 under sub-paragraph "b", theme has been
an insertion. "If there is no financing achieved by
either of the foregoing method for any reason, consul-
tant's fee shall be limited to 8a above". This has
also been initialled by Lee Mitchell and the Mayor of
Cupertino.
These inasertione were made at the recommendation of
the City Attorney. A copy of his letter is enclosed.
When Lee was here yesterday, tie stated that work would
start on this program Immediately. Inasmucn as time is
of the essence we are anxious to have the report as quickly
as possible.
i/e ry truly y ours,
CITY OF CUP MTII#O
PWB:hh Phillp W. Storm
Anclosure City Manager
} cc: City Attorney
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% CONTMACT EMPLOYING FINANCING CONSULTANT
z. THIS AGREEMENT, made this�day of (LL&`t , 1964, by and
r: between the CITY OF CUPERTINO, Santa Clara County, California, a City
duly organized render the laws of the State of California (hereinafter called
"City"), ply of the first part, and STONE & YOUNGBERG, Russ Building,
San Francisco 4, Calif:�rnia, a partnership (hereinafter called "Consultant"),
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party of the second part:
WITNESSETH :
WHEREAS, City proposes to construct a City Hall and park and rec-
reation facilities; and
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WHEREAS, City desires to develop a feasible, economical, and
equitable plan of procedure in carrying through to completion the financing, e.J•
0-1 or acquisitier.
and/construction of said public improvements; and
WHEREAS, the preparation of such a plan and its execution require
certain studies, analyses, and recommendations to be made by persons
qualified by training and experience to do so; and
WHEREAS, City, after due investigation and deliberation, has de-
termined that Consultant is qualified by training and experience to perform
said services;
NOW, THEREFORE, it is mutually agreed as follows, to wit:
City hereby employs Consultant and Consultant hereby accepts such
employment to perform the services, upon the terms, subject to the condi-
tions, and in consideration of payments as hereinafter set forth:
Services to be Performed by Consultant:
Consultant shall perform in a diligent manner the following serv-
ices:
s 1. Assemble, review, and analyze all available financial,
architectural, engineering, legal and economic data and
information which may have a bearing on a program for financ-
ing the construction of the proposed public improvements.
2. Based on the foregoing ammalysis, prepare and sulmnik to
City, at ConsultarO s expense, a written report contain-
ing, in addition to other information, the following:
(ed) A general review and description of the proposed im-
'.-`: provements, their purpose and benefits, their esti-
mated capital costs, and other pertinent information based
primarily on data and information to be supplied by City,
its engineers and architects.
W A discussion as to possible methods of financing such
improvements, the advantages and disadvantages of
each method, and the general legal and practical require-
ments or restrictions applicable to each method.
(c) A discussion as to possible sources of revenues which
might be used to amortize the indebtedness to be in-
curred for the capital costs of the improvements.
(d) Tentative debt amortization schedules, estimated in-
terest rates, call and redemption features (if any),
and other pertinent details relating to the indebtedness to
be incurred.
(e) Illustrations and examples of the financial effects of
the financing program on typical property owners, tax-
payers, or beneficiaries of the improvements.
(f) Recommendations as to further procedural steps to be
taken and timing of actions.
3. Discuss the contents of the foregoing report with City and
make necessary revisions if required.
4. If the issuance of bonds or other evidences of indebtedness
to finance all or part of the costs of the proposed improve-
ments is authorized at an election or otherwise, make recorr,-
menaations as to e;.act terms and conditions under which bonds
are to be issued and sold, including timing and method of sale,
final amortization or repayment schedules, call and redemption
features, sinking fund requirements, application of revenues
and other details, and cooperate with City°s bond counsel in
drafting the necessary resolution of issuance and notice of
sale.
5. Upon approval by City of final financing details, and upon
direction by City to do so, prepare the text and other ma-
terial for an official statement or bond prospectus describing
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the improvements, the bonds, their security, and the economic
and financial background of the City, which may be duplicated
or printed and availed at City's expense, together witl copies
of the official notice of sale to prospevtive bond biddersi a com-
prehensive list of whom shall be supplied by Consultant. Con-
sultant shall also contact national bond rating agencies and take
such other steps as appear advisable to encourage strong cow-
petitive bidding for the bonds.
&. After reciMpt and study of the report referred to in Paragraph
2, should the City advise Consultant that it desires to fi-
nance a portion of the facilities by means of a lease-option
method of financing, Consultant shall use its best efforts to ob-
tain a bona fide lease-option proposal for construction, financing,
k' and leasing of such facilities. Upon study and approval of the
lease-option agreement by City, Consultant shall make recommenda-
tions as to procedure and serve as coordinator in orde! to expedite
and consummate such financing.
7. During the entire course of employment hereunder Consultant
shall be available at reasonable times for consultation and
advice relating to the financial aspects of the contemplated im-
provement program.
Payment for Services:
8. For the services to be rendered hereunder City shall pay Con-
sultant the following fees at the times a:-id subject to the con-
ditions specified:
(a) The sum of $1,500 to become payable upon submission of
the report referred to in Paragraph 2 above.
(b) A further sum equal to One Per Cunt (1%) of financing
achieved by the issuance of general obligation bonds
Two Per Cent (2%) of financ ng achieved by lease-option fi-j._/
nancing to become payable from and subject to receipt of �"
funds to finance all or pa:rl. of the proposed project(s). if th4re J.L--
no financing achieved by either of tie foregoing methods for any reason, -
suitants ' fees �&Jj (:�onsjlt WWAjoqls o 8`a) above. �+
9. Consultant is employed hereunder to render a professional
service within the scope of its training and experience as a
municipal financing consultant and any payments made to it are
compensation solely for Zach service and advice. Outside of
its normal office overhead and traveling costs to and from its
San Francisco office and City to perform the services contracted
for, Consultant is not responsible for and shall not be held liable
for any other expense or expenditure of any kind, including the
following:
(a) Any and all legal or engineering expense of any kind
whatever.
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ij Any and all expense in connection with hearings, pro-
ceedings, and due issuance of bands.
(c) Any Pit-"s advertising, publicity# etc. , of such Ma-
terial -,r data as City may w1sh to have PreWed in
connection with Consuftanes rem or services herein pro-
vided for, except those specifically excluded herein.
10. Nothing herein contained shall prevent Consultant from
carrying on its usual business acWivities, including the per-
formance of other additional services for City, should it so de-
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sire such additional services, nor from performirIg similar serv-
ices for other cities, districts, or public entities.
11. City agrees that its officials and employees will be re-
quested and directed to cooperate with and assist repre-
sentatives of Consultant in every reasonable way to the end
that Consultant may secure all information and data required to
perform the services herein provided for.
k IN WITNEaS WHEREOF, said City, party of the first part, has caused
these presents to be executed by its duly authorized officials, and said STONE
& YOUNGBERG, party of the second part, has caused these presents to be ex-
ecuted by one of its partners, as of the date hereinabove sat forth.
CITY OF CUPERTINO
C' ,- C 1 e rk
Bar
STONE & YOUNGBERG
ATTEST:
C� woo.
Approved as :o form this By �•C
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1 day of VA 1964
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