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HomeMy WebLinkAboutOrdinance No. 152 ORDINANCE NO. /'~ d;~ AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT FOR FINANCIAL ADVISORY SERVICES WITH THE FIRM OF RAUSCHER PIERCE REFSNES, INC.; ATTACHING THE APPROVED FORM OF THE CONTRACT AS EXHIBIT "A"; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. That the City Manager of the City of The Colony, Texas, is hereby authorized to execute on behalf of the City a contract for financial advisory services with the firm of Rauscher Pierce Refsnes, Inc. for the next 36 months. The approved form of such contract is attached hereto as Exhibit "A", and made a part for such purposes. SECTION 2. This Ordinance shall take effect immediately from and after its passage and publication of caption in official newspaper. READ AND PASSED ON FIRST READING ON THE ~ DAY OF READ AND PASSED ON SECOND READING ON THE ~ DAY OF APPROVED: M~YOR / / DULY RECORDED: C IT~ECRETARY APPROVED AS TO LEGALITY OF THE FORM: CITY ATTORNEY Dallas, Texas Date: Honorable Mayor and City Council City of The Colony 5576 North Colony Boulevard The Colony, Texas 75056 Dear Mayor and City Council: 1. We understand that you contemplate ordering one or more elections within your City at which there will be submitted to its qualified voters the proposition of authorizing the issuance of General Obligation Bonds for various amounts and purposes to be determined, and that in connection with the authorization, issuance, sale and delivery of such bonds you desire this proposal from us to perform professional services in the capacity of Financial Advisors for your City. 2. By this proposal we offer our professional services and our facilities 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 or advisable: a. We will 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 power and the present and estimated future taxing requirements. If the revenues of a system or facility are to be pledged to repayment of the securities in question, the study will take into account any outstanding obligations which are payable from the net revenues thereof, additional net revenues to arise from any proposed rate increase, and the additional net revenues as projected by your consulting engineers as a result of the improvements to be financed by the securities in question, and on the basis of such study to devise and recommend for your approval a plan of financing to cover the proposed bonds. Such plan shall include a maturity schedule 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 consistent with a minimum effective interest rate. b. We understand that you have retained or expect to retain McCall, Parkhurst & Horton, a firm of recognized municipal bond attorneys, who will prepare the proceedings and advise the steps necessary to be taken in the bond election, the legal issuance of the bonds and the final delivery of the bonds and who will issue an opinion approving the legality of the bonds. All financial services ren- dered 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 legal opinion of said attorneys. The fee of said attorneys will be paid by us. The City of The Colony Page Two c. At such time as it shall be decided to order a bond election, we will assemble and transmit to the bond attorneys such data as may be required in the preparation of the necessary petitions, orders, resolutions, notices and certificates~ and will assist your govern- ing body in the expeditious handling thereof. d. We will arrange for the delivery to such official as you may desig- nate such sets of election supplies, including ballots, as are required for each polling place. The cost of such supplies is to be paid by the City. e. We will advise you of current bond market conditions, forthcoming bond issues and other general information and economic data which might normally be expected to influence interest rates or bidding conditions so that the date for the sale of the bonds can be set at a time which, in our opinion, will be favorable. f. We agree to assist in the preparation of an Official Statement or Prospectus, containing official data and other information of the nature and to the extent ordinarily required in bidding on bonds of this type, all of which we are to furnish in a sufficient number of copies to permit mailing to prospective bidders, a list of which we agree to provide. g. We will arrange for the printing of the bonds, with the cost to be paid by us. 3. We will consult with you on the matter of bond ratings for the proposed issue and when so instructed, will direct the preparation of such information as in our opinion is required for submission to the bond rating agencies. In case it is considered advisable for personal presentation of information to the bond rating agencies, we will be available to accompany those representing the City of The Colony to New York for such presentation. All costs of any such presentation, including any fees or charges of the rating agencies and the cost of travel by our representative shall be at your expense. 4. We agree to direct and coordinate the entire program of financing herein contemplated and to assume and pay our own travel, communication and out-of-pocket expenses incurred. It is specifically understood and agreed, however, that this obligation on our part shall not cover payment of any local election expenses; nor shall it cover the cost of publication of notices in newspapers, or other publica- tion costs, or the expenses of any litigation. 5. As consideration for the services rendered by us and as reimbursement for the expenses which we are to incur, it is understood and agreed that your City is to pay and we are to accept a cash fee to be computed in accordance with the fee schedule, attached hereto and made a part hereof. Such fee shall become due and payable simultaneously with delivery of the bonds to the purchaser. The City of The Colony Page Three 6. In the event the bond elections contemplated by this proposal should fail then the fee due us shall be nothing; however, should the same or similar propositions again be submitted at an election held within thirty-six (36) months from date hereof, then at our option the agreement covered by this proposal shall apply to any bonds authorized at such elections. 7. It is further understood and agreed that we reserve the right to submit a bid for the bonds when offered for sale. 8. This agreement shall be terminated by the delivery to the purchaser of the bonds covered hereby, or by the elapse of thirty-six (36) months from date of your acceptance hereof, whichever shall last occur. 9. This proposal is submitted in duplicate and when accepted by you it will constitute the entire agreement between your City and the undersigned for the purpose and considerations herein specified. Your acceptance will be indicated by the signature of your Mayor, attested by your City Secretary, on both copies and returning one executed copy to us. Respectfully submitted, RAUSCHER PIERCE REFSNES, INC. Dan A. Almon, Vice President ACCEPTANCE ACCEPTED pursuant to resolution adopted by the City Council of the City of The Colony, Texas on this the__ day of , 19 Mayo~ ATTEST: City Secretary FEE SCHEDULE IF THE AMOUNT OF BONDS ISSUED IS: MORE AND NOT THAN MORE THAN THE FEE IS $ -0- $ 250,000 $ 4,800 plus $16.00 per $1,000 for all over $150,000 ......... ~,000 350,000 6,400 plus $9.50 per $1,000 for all over $250,000 350,000 500,000 7,350 plus $8.30 per $1,000 for all over $350,000 500,000 700,000 8,595 plus $7.25 per $1,000 for all over $500,000 700,000 1,000,000 10,045 plus $6.85 per $1,000 for all over $700,000 1,000,000 1,500,000 12,100 plus $6.15 per $1,000 for all over $1,000,000 1,500,000 2,500,000 15,175 plus $4.20 per $1,000 for all over $1,500,000 2,500,000 5,000,000 19,375 plus $2.85 per $1,000 for all over $2,500,000 5,000,000 10,000,000 26,500 plus $2.45 per $1,000 for all over $5,000,000 10,000,000 20,000,000 38,750 plus $2.10 per $1,000 for all over $10,000,000 20,000,000 No Limit 59,750 plus $1.50 per $1,000 for all over $20,000,000 Fee For Revenue Bond Issues shall be the amount computed from the above schedule plus 25%. When bonds are issued in multiple installments, the fee for each installment shall be the net amount as computed from the above schedule. 97513