HomeMy WebLinkAboutStone and Youngberg - 1973-01-15 AMh
CONTRACT E14PLOYING FINANCING CONSULTANT
THIS AGREEMENT, made this „j�_ day o 19 Z by and
between the City of Huntington Beach, a city duly organized under the laws
of the State of California (hereinafter called "City"), party of the first part,
and STONE & YOUNGBERG Municipal Financing Consultants, Inc. , One
California Street, San Francisco, California, a corporation (hereinafter
called. "Consultant"), party of the second part:
"A"I T N E S S E T H:
WHEREAS, City is considering :undertaking a program to acquire, improve
and construct a public golf course and other recreational facilities, presently
estimated ;`o cost $3,200,000; and
WHEREAS, City desires to develop a feasible, economical and equitable
plan of procedure in carrying through to completion the financing of said public
improvements,. and
WHEREAS, the preparation of such a plan and its execution require cer-
tain studies, analyses and recommendations to be made by persons qualified.
by training and experience to do so, and
WHERL``�S, City, after due investigation and deliberation, has determined
that Consultant is qualified by training and experience to perform said ser-
vices;
NOW, THEREFORE, it is mutually agreed as follows, to wit:
City here by employs Consultant and Consultant hereby accepts such
employment to perform the services, upon the terms, subject to the conditions
and in of payments as hereinafter set forth
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Services to be Performed by Consultant:
Consultant shall perform in a diligent manner the following services:
1. Assemble, review and analyze available data and information
which may have_a nearing on a program for financing construc-
tion of the proposed public improvements,
2. Based on the foregoing analysis, prepare and submit to City at
Consultant's e',<pense, a written report containing, in addition
to other information, the following:
a. A general review and description of the proposed improve-
ments, their pr"pose and benefits, their estimated capital
and annual mai-`_enance and operation, costs and other pertinent
information based primarily on data and information to be sup-
plied by City.
b.- A discussion as to applicable methods of financing such
improvements, the advantages and disadvantages of each
method and the general financing requirements or restrictions
applicable to each method.
c. A discussion as to available sources of revenues which
might be used to amortize the indebtedness to be incurred
for the capital costs of the improvements and to pay their an-
nual maintenance and operation costs, their sufficiencies and
recommendations as to alternates that appear to be desirable.
IIL d. Recommendations as to a specific method of financing or
alternates thereto if applicable, including tentative debt
amortizo.tion schedules, estimated interest rates, application
of revenues and other pertinent details relating to the indebt-
edness to be incurred.'
e. Illustrations and examples of the financial effects of the
financing program on typical property owners, taxpayers
and beneficiaries or users_of the improvements
f. Recommendations as to further procedural steps to be
taken and timing of actions.
3. Provide financing information and data which may be required in ocn
nection with any governmental aids or grants which may be available
to assist in the financing of the proposed public improvement project.
4. Prior to an election for the authorization of bonds to finance the pro-
posed improvements, appear at a 'reasonable number of public meetings
that maybe held by interested civic groups to explain the financial aspects
of the program and provide factual information regarding tha project and the
financing Program.
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5. If the issuance of bonds or other evidences of indebtedness to finance
all or part of the costs of the proposed improvements is authorized at
an election or otherwise, recommend to City the exact 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.
6. Assist bond counsel in drafting the necessary resolution of issuance
and notice of sale.
7. Upon approval by City of final financing details and upon direction by
City to do so, prepare the text and other me,terialfor an official state-
ment or bond prospectus describing the improvements, the bonds, their se-
curity and the economic and financial background of the City.
8. Arrange for printing and distribution of the bond prospectus and other
related material to a comprehensive list of prospective bond bidders.
City shall reimburse Consultant for costs of printing and distributing the
official statement and related material.
9. Effect direct personal contact with dealers and investors to stimulate
interest in any bonds issued and advise on technical questions con-
cerning financing.
10. Take such other steps as appear advisable toencourage strong com-
petitive bidding for the bonds. Any charges by bond rating agencies
and any charges for preparation of a debt statement shall be borne by City.
11. 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 improvement program
Payment for Services:
12.- For the services to be rendered hereunder City agrees to pay Consul-
tant the following fees at the times and subject to the conditions
specified
a. A sum in an amount equal to $250 per manday for those ser-
vices to be performed under Paragraphs 1, 2 and 3 hereof,
provided, however, that the maximum fee due Consultant under
this Paragraph 12(a) shall be $3,500
b. A further sum in an amount equal to one-half of one percent
(1/2 of 1%) of the total amount of financing, to become-pay-
able upon and subject to ,receipt by City of funds to finance all
or a part of the proposed public imprm :ments. It is agreed and
understood that any fees paid Consultant under Paragraph 12(a)
above shall be deducted from those fees payable Consultant under
this Paragraph 12(b) . It is further agreed and understood that such
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total amount of financing shall not include the amounts of any
governmental aids or grants obtained to assist in the financing
of the proposed improvements unless Consultant is requested
in writing by City to assist in obtaining such aids or grants.
Other Considerations:
13, Consultant is employed hereunder to render a protessiona.l service within
the scope of its training and experience as a municipal financing con-
sultant and any payments made to it are compensation solely for such 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.
b. Any and all expense in connection with hearings, proceedings
and due issuance of bonds.
c. Any printing, advertising, publicity, etc. , of such material
or data as City may wish to have prepared in connection
with Consultant's report or services herein provided for, except
those specifically excluded herein.
14. Nothing herein contained shall prevent Consultant from carrying on its
usual business activities, including the performances of other additional
services for City, should it so desire such additional services, nor from per-
forming similar services for other cities, districts or public entities.
15 City agrees that its officials and employees will be requested and di-
rented to cooperate with and assist representatives 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.
IN WITNESS WHEREOF, said City, party of the first part, has caused
these presents to be properly executed, and said STONE & YOUNGBERG Muni-
cipal Financing Consultants, Inc. , party of the second part, has caused these
presents to be executed by one of its officers, as of the date hereinabove set
forth,
CITY OF HUNTINGTON BEACH, CALIFORNIA
By ti
Mayor
ATTEST. STONE & YOUNGBERG
Municipal Financing Consultants, Inc.-
By �, wt-Z
ss , taut Vice P mt
STONE & YOUNGBERG
MUNICIPAL FINANCING CONSULTANTS, INC.
November 19 1973
The Honorable Mayor and City Council
City of Huntington Beach
City Hall
Huntington Beach, California
Gentlemen:
Following completion of our report pertaining to the financing of the
proposed Phas,- III Huntington Central Park Acquisition and Improve-
ment Program, it was learned that the City might elect to ,proceed
with a smaller project (115 acres), and/or contribute 2.0 acres of
City-owned land to the project without seeking reimbursement from
bond. p-roceeds
Consequently, we wish to supplement our report of November 8,
1973 with the foi'owing information relative to the estimated bond
issues and annur x lease payments that would be required to finance
the alternate pro), cts as indicated, The basic criteria employed in
the calculations are, the same as used in our financing report, ,with
he further assumption that the value of any land deleted from the
project reduces basic proj=ct costs by about $25,000 per acre, plus
corresponding reductions in incidental costs.
1. Project of 150 acres, less cost of 20 acres contributed by City.
Total Bond Issue $5,625,000
Annual Lease Payment $ 456,000
2. Same as No. 1,_ less cost of construction (financed by others)
Total Bond Issue $4,575,000
Annual Lease Payment $ 370,000
3. Project of 115 acres.
Total Bond Issue $5,210,000'
Annual Lea ;e Payment $ 337,000
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SUITE 2760 1 ONE CALIFORNIA STREET•5'AN FRANCISCO.CAI-i,ORNIA 9AIU +.(a'S)
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The Honorable Mayor and City Council November 19, 1973
Huntington Beach, California Page Z
4. Same as No. 3, less cos: of construction.
Total Bond Issue $4,160,000
Annual Lease Payment $ 423,000
5. Project of 115 acres, less cost of 20 acres contributed by City.
Total Bond Issue $4,665;,000
Annual Lease Payment $ 378,000
6. Same as No. 5, less cost of construction.
Total bond Issue $3,615,000
Annual Lease Payment $ 293,000
As mentioned in the letter of transmittal accompanying our financing
report, it is our intention to' supplement the infor'maticn contained
therein as needed. It is hoped that the foregoing data will present the
Council with a broader choice of alternatives than heretofore existed .
We will be pleased to discuss any point concerning the proposed proect
financing with the Council at the meeting of November 19, 1973.
Very truly yours,
STONE & YOUNGBERG
Municipal Financing Consultants, Inc.
R
^
Terence j. McCarty. -, .
Assistant Vice President
TJMcC:bd
mull
[fl IT OF HUNTING ON BEACH CA 73-04
COUNCIL_- ADMINISTRATOR COMMUNICATION
HUNTINGTON.BEACH
To The Honorable Mayor and from City Administrator
City Council Members
Subject FINANCING FEASIBILITY STUDY Date Ja opkrl' t0 L rrx COUNCIL
HUNTINGTON CENTRAL PARK
PHASE III . f�_1911
REVIEW --....._.
.....ci r r CLi;Mc
In recent weeks, the acquisition and development of Phase III has
become of more interest to citizen groups and to the Council in
its evaluation of revenue sharing proposals . The City has acquired
10 acres of Phase IIT property on Edwards Street and is negotiating
for an additional 10 acres west of Goldenwest. Several encyc7 ,-
pedia lots have also been picked upas they become available at tax
sales .
During December, staff 'met with Stone & Youngberg, municipal financing
consultant for the City on the Central Park, Civic Center and Library,
-to discuss the preparation of a comprehensive financing report
pertaining to the proposed project. Such an objective report would
examine the feasibility and applicability of the several methods
available for financing acquisition of the Phase III property for use
as a golf course and related recreational uses . The second purpose
would be to examine the tangible and intangible benefits t, the
general public. A.;report as described above could certainly serge to
obtain financing for the project.
The cost of the study is estimated not to exceed $3,500 based on the
standard fee schedule for these services . The fee is further predi-
cated on a cumulative schedule taking into account all previous work
done by Stone '& Youngberg for the City. Services to be performed
by the Consultant for this fee are explicitly outlined is the contract
reviewed as to .form and contEnt by the City Attorney. The Recreation
and Parks Commission has recommended the following action at their
regular meeting of December 22, '1972
RECOMMENDATION
Authorize the City Administrator to retain the firm of Stone r, Youngberg
to perform the financing feasibility study for Central Park Phase III.
Respectfully submitte
David D. Rowlands
City Administrator
DDR:eh
cc Recreation and Parks Commission