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HomeMy WebLinkAboutReso 82-148 - Approving Agreement for Financial Consulting Services - Upper Churn Creek Sewer Assessment District No. 1980-7 • • • RESOLUTION NO. S..2-y t/8' RESOLUTION APPROVING AGREEMENT FOR FINANCIAL CONSULTING SERVICES UPPER CHURN CREEK SEWER ASSESSMENT DISTRICT NO . 1980-7 The City Council of the City of Redding resolves : As a part of the proceedings for improvements in Upper Churn Creek Sewer Assessment District No. 1980-7 , this Council approves that certain agreement between the City of Redding and John Vande Pol and Associates , effective September 7 , 1982 , and attached to this resolution . The Mayor is authorized to sign the agreement and the City Clerk is authorized to attest its execution . I HEREBY CERTIFY that the foregoing resolution was duly and regularly adopted by the City Council of the City of Redding , Shasta County , California , at a regular meeting thereof , held on the 7th day of September , 1982 . AYES: Councilmembers Demsher- Fu] fnr_ Kirkpatrirk, and Gard NOES : Councilmembers None ABSENT : Councilmembers Pugh ETHEL A . NICHOLS , City Clerk , City of Redding , Shasta County , California ti 1DRO1O%A - 411- AGREEMENT FOR FINANCIAL CONSULTING SERVICES RECITALS: A. The parties to this agreement are the City of Redding, a California general law city (hereafter called the "City" ) , and John Vande Pol and Associates , Municipal Financing Consultants (hereafter called "Vande Pol" ) . B. The effective date of this agreement shall be the date of approval by resolution of the City Council of the City. C . In connection with the Upper Churn Creek Sewer Assessment District No. 1980-7 , the City requires the services of a qualifed financial consultant to determine an. appropriate reserve fund and bond dis- count and to prepare an appropriate Notice of Sale and an appropriate Official Statement to facilitate sale of the proposed issue of 1915 Act improvement bonds , and vande Pol is qualified to provide such financial consulting services . D . In mutual consideration of the agreements and provisions states , the parties agree as follows : AGREEMENT : 1. The following terms shall have the meanings specified in this agreement. a . "Improvement bonds" shall mean improvement bonds issued under the Improvement Bond Act of 1915 (Sections 8500 and following , California Streets and Highways Code) . b . "Official Statement" shall mean a disclosure document to be prepared in conformity with acceptable standards in the muni- cipal bond industry for presentation of the proposed bond • issue to the bond underwriting community , including though not • • limited to ,Se Disclosure Guidelines fi State and Local , Governments , established and published by the Municipal Finance Officers Association. c . "Notice of Sale" shall mean a notice specifying the terms and conditions of the proposed bond issue and the procedure for submission of competitive bids for the purchase of the proposed improvement bonds . d. "Date of Sale" shall mean Monday , December 6 , 1982 . e . "Bond Counsel" shall mean Sturgis , Ness , Brunsell & Sperry a professional corporation , Emeryville , California. 2 . Vande Pol agrees to provide the City with his recommendation respecting each of the following for the proposed bond issue : a . .the amount of a reasonably required reserve fund; and b. the maximum amount of bond discount which bidders may specify . Vande Pol shall provide his recommendation on these matters in a timely manner so as to enable the City , acting through its Engineer of Work for the assessment proceedings , to incorporate the recommendations in the amended engineer ' s report which will be filed with and considered by the City at a public hearing , presently scheduled for October 18 , 1982 . The deadline for receipt of • the amended engineer ' s report by Bond Counsel is October 8 . Accordingly , Vande Pol ' s recommendation should be available to the Engineer of Work on or before October 4 . 3 . Vande Pol further agrees to prepare a Notice of Sale and an Official Statement with respect to the improvement bonds for submission to and approval of the City Council of the City at its regular meeting on November 15 , 1982 . 2- Ill In addition to such other information as Vande Pol determines td be necessary .or appropriate, Vande Pol shall obtain and present . the following information : a . ad valorem property tax payment/delinquency status for each parcel in the assessment district upon which the City levies a special assessment in these proceedings ; and b. any prior special assessment liens on any such parcel , including the unpaid amount of such prior assessment lien and payment/ delinquency status . 4 . The parties acknowledge that Xerox reproduction and distribution of both the Notice of Sale and the Official Statement to prospective bond purchasers shall be the responsibility of Bond Counsel , to whom Vande Pol shall provide the Notice of Sale and the Official Statement in a final form suitable for Xerox. reproduction not later than 12 : 00 noon on November 5 , 1982 . 5 . Since the final amount of unpaid assessments will be determined after November 5 , Vande Pol is to prepare a preliminary maturity schedule on the basis of the full amount of assessments levied by the City Council on or after October 18 . As soon as possible after determination of the amount of unpaid assessments , Vande Pol shall prepare a final maturity schedule , to be distributed by Bond Counsel to prospective bond purchasers . The final maturity schedule shall be the basis for comparison of bids received and for deter- mining the best bid received for the improvement bonds . 6 . As compensation for Vande Pol ' s services , the City shall pay Vande Pol a fee equal to one percent (1%) of the principal amount of the -3- improvement bonds . Payment shall be expressly contingent upon receipt of bond sale proceeds , and the City shall not be obligated to pay said fee from any other source except bond sale proceeds . CITY OF REDDING, a California general law city • • Mayor ATTEST: ETHEL A . NICHOLS , City Clerk City of Redding, Shasta County California JOHN VANDE POL AND ASSOCIATES • • -4-