Loading...
HomeMy WebLinkAbout1143 ResolutionRESOLUTION NO. 1143 WHEREAS, the City of Pasco from time to time is in need of retaining financial consultants with expertise in the field of municipal financing, and WHEREAS, the City of Pasco has in the past retained Foster & Marshall, Inc., as its financial consultant, and WHEREAS, Foster & Marshall, Inc., has represented to the City of Pasco of its qualifications to act as a municipal financial consultant to the City of Pasco and is desirable of doing so on an agreement basis; NOW, THEREFORE, BE IT'RESOLVED BY THE COUNCIL OF THE CITY OF PASCO: That the City Manager be and he is hereby authorized to execute on behalf of the City of Pasco a letter agreement with Foster & Marshall, Inc., in the form of the letter dated January 25, 1978, by this reference incorporated herein as though fully set forth, for the purpose of retaining Foster & Marshall, Inc., as the municipal financial consultant to the City of Pasco. PASSED by the Council of the City of Pasco this 6 day of February 1978. Chet Bailie, Mayor gyE-v-e-1--n T: s,Deputy City Clerk APIPPOVED AS TO O Michael E. Cooper, C ty Attorney MEMBERS NEW YORK STOCK EXCHANGE, INC. AMERICAN STOCK EXCHANGE, INC. PACIFIC STOCK EXCHANGE, INC. MIDWEST STOCK EXCHANGE, INC. CHICAGO BOARD OPTIONS EXCHANGE FOSTER & MARSHALL INC. INVESTMENT BANKERS AND BROKERS 607 E. YAKIMA AVE. POST OFFICE BOX 18 YAKIMA, WASHINGTON 98907 (509) 575-1212 January 25, 1978 The Honorable Mayor and Members of the City Council City of Pasco 412 W. Clark Pasco, WA 99301 RE: Financial advisory Services Dear Council Members: OFFICES IN THE PRINCIPAL CITIES OF THE PACIFIC NORTHWEST AND ALASKA We hereby propose to serve as financial consultants to the City of Pasco in connection with issuance and sale of General Obligation Bonds, Revenue Bonds and such Local Improvement Bonds as the.City may offer for public sale. As expert consultants in available to the City to the financing of capital Background and Experience the field of municipal advise and assist you improvement projects. financing, we would be on matters.pertaining to Foster & Marshall Inc. is the largest locally headquartered investment banking firm in the Pacific Northwest. We have 33 offices located throughout Washington, Oregon, Alaska, Idaho and Utah, and are active members of the nation's major Exchanges including the New York, American, Pacific Coast and Mid -6 -lest. As the dominant municipal consulting firm in the area, we serve more municipal clients than any other Northwest firm. Our firm is recognized nationally as a well-managed, diversified regional investment banking firm that participates daily in national syndicates that bid for or negotiate on most of the major corporate or municipal bond issues that come to market. We maintain an excellent relationship with other members of the investment banking community, both locally and nationally. This enables us to keep abreast of constantly changing bond market conditions and the requirements of buyers who purchase your type of bonds. Our technical experience and staff capabilities in regard to originating bond issues and preparing Official Statements for our municipal clients is unequaled in the Pacific Northwest. The Honorable Mayor and Members of the City Council January 25, 1978 page 2 Services of Financial Consultant Our services include the following: I. Meet with your staff members and consulting engineer so as to coordinate the timing of the financing of the proposed improvements with the engineer's construction schedule so that funds will be available in a timely manner. 2. Establish bond issue details such as maturity schedule, redemption provisions,.re.serve accounts, and other bond covenants so as to make the issue attractive to potential investors and maintain flexibility for the City to do additional financing in the future. 3. Make a representative available to meet with the Staff and/or Council as necessary to develop the financing, including alternate methods as may be appropriate. 4. Assist in obtaining any Federal or State grants for the proposed project that may be available. 5. When required, prepare and distribute an attractive, printed bond offering prospectus which will set forth all necessary information on the bond issue including utility system operations when appropriate, economic data and other statistical information necessary to adequately inform prospective bidders on the bonds. These prospectus would be distributed nationally to investment dealers and institutions at our expense. 6. Secure an unqualified approving legal opinion from the City's bond counsel for each bond issue as necessary. The expense of the legal opinion and related services to be billed to the City by the bond counsel. 7. Assist in obtaining a rating from a nationally recognized rating service if appropriate. 8. Assist at the bond sale in analyzing bids and provide assistance with the bond delivery arrangements. . The Honorable Mayor and Members of the City Council Fees for Services January 25, 1978 page 3 In the event bonds are to be sold at public sale, our fee is as follows: L.I.D. Bonds General Obligation Bonds - Revenue Bonds 1/2 of 1% of amount of bonds, with a minimum of _$2,000 1/10 of 1% of amount of bonds, with a minimum of $3,000 1/2 of 1% of amount of bonds, with a minimum of $5,000 Fees are due and payable at the time bonds are delivered, but in the event there is no bond issue, then there is no fee due us. In the event the City determines that a negotiated sale of the bonds is more advantageous, then we would submit a proposal for the purchase of the bonds on a negotiated basis, and if bonds are sold to us at such private sale, there would be no fee due us for such bonds. We retain the right to submit a bid for any of the City's bonds sold at public sale, and in the event we are the successful bidder at such public sale, we would still receive a fee described hereinabove for services performed. Our fees include all professional services and costs of preparing and distributing the prospectus and other out-of-pocket expense incurred by us, but do not include bond attorney's fees, prospectus, and bond printing costs, rating service fees, or other expenses of the City in connection with a bond issue. This agreement may be terminated at any time upon 30 days written notice. We appreciate the opportunity to continue our long relationship of acting as your financial advisor. CM: pr ACCEPTED: Respectfully submitted, FOSTER & MARSHALL INC. Crai chicken Mun' pal Consultant