HomeMy WebLinkAboutSTRADLING, YOCCA, CARLSON & RAUTH - 1985-03-04 CITE OF HUNTINGTONH
2000 MAIN STREET CALIFORNIA 92648
OFFICE OF THE CITY CLERK
April 29, 2985
Stradling, Yocca, Carlson h Rauth
660 Newport Centr Drive
Newport Beach CA c '660-6401
The City Ccuncil of the City of Huntington Beach at its regular meeting
held Monday March a, 1985 approved agreement with your firm for bond
counsel, services in connection with multi-family financing and bond
proceedings.
Enclosed is a duly executed copy of said agreement together with a ccpy
of the Certificate if Insurance which you submitted,
Alicia M. Wentworth
City Clerk
AMIW:CB:js
Enr_I inure
ITelephone:71453"2V)
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r e ISSUE DATE(MMIDDfY)
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PRODUCER THIS CERTIFICATE iS ISSL'-z'D AS A M'.CTFR OF INFORMATION ONLY AND CONFERS
NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AMEND,
Egloff Insurance Agency EXTEND OR ALTER THE COVERAGE AFfORJED BY THE POLICIES BELOW.
9720 Wilshire Blvd. , Suite 504 - COMPANIES AFFORDING COVERAGEBeverly Hills, CA 90212 _
COMPANY
LETTER Pacific Employers Insurance Co.
t—
�,_ COMFAN�
INSURED LETTER
Stradling, Yocca, Carlson
Rauth LETTER
660 Newport Center Dr,
LETTER
Newport Beach, CA 92660-6401
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THIS€S YO CERTIFY THAT POLICIES CF INSURANCE LiS r_C BE!0*HAVE i..-F_N lS3UE Tr•_INSURED v:'-D A6,)V'E FOR'N:E POLICY PERIODINDICA IEC
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BE ISSUED OR MAY PERTAIN.THE INSLIFANCE.AFPC,•.-F-,,rY 744F,r.J1_ICi'__1 .:_L THE TERMG.EXCLUSIONS,AND CONDI-
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3ESCRFTiJN+ F�;PE�A
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SHOULD ANY OF 7H4 ABOVE DESCRIBED'POLICIES BE CANt c."L V('EFOR[.THE EX-
City of Huntington Beach , PIRATiON, DATE THE,IEOF, THE ISSUING 'C-WPANY WILL ENDEAVOR TO
2000 Main Street MAIL NIA DA ;,t W;;!TTEN 4flT(CE TO THE CCF,,%FFCRTE HOLDER NAMED TO THE
LEFT,BUT FAA URE TC MAIL SU NOTrCE SFiAS,4*AMSE NO CB!IFaATION OR I.IAB(L.IIY
Huntington Beach, CA 92648 nF AN`:'KINF .rPON TtiF v Klfrs 409NTS UR REPRESENTIJIVES.
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FRODUCER THIS CERTIFICATE ISlSSUED AS"A F.'IATTER'OV INFO MATION ONLYpND CONFERS
Nn RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AMEND,
Egloff Insurance Agency E, 'END OR ALTEO THE COVtRAGS AFFORDED BY THE POLICIES BELOW
9720 Wilshire-Blvd. , Suite 50- ---
Beverly Hills, CA 90212 COMPANIES AFFORDING COVERAGE
COMPANY
LETTER _Pacific Employers Insu
"OMPAN"
INSURED L6:tER
Stradling, Yocca, Carlson & 'DMPANY
Rauth LETTER
660 Newport Center Dr. COMPANY
Newport Beach, CA 92660-6401 LETTER
�t THIS rS*70 CERTIFY 7HA E r i = -! rr NAM�,A 2 ),,7HE POLICY PERIOD INDICATED.
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City of Huntington Beach MAfAT1°NppD.DAYS WRITTEN FNOT CE TO YHE CER THE ISSUINC. COMPANY
HOLDER NAMED TO THE
2000 Main Street LEFT,�UT FAILURE TO MAILS H NOTICE SHA OSE NO OPLIGATION OR LIABILITY
Huntington Beach, CA 926•,:8 OF ANY KIND UPON TH P 1TS TS OR REPRESENTATIVES
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PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY-APID CONFERS
NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AMEND,
sgloff Ynsurance Agency EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
9720 Wilshire Blvd., Suite 504 {
Beverly Gills, CA 30212 i COMPANIES AFFORDING COVERAGE
`J�TEp"Y A Pacific Employers Insurance Co.
COMPANY
INSURED - --- - LETTER -
Strad".ing, Yocca, Carlson & I COMPANY
Rauth LETTER --- --- —
660 Newport Center Dr. COMPANY
Newport Beach, CA 92660-6401 LETTER
THIS IS TCt i-Ttfr 'i?A Pt tC'z .:' � T - t: 11 �NAME-- +517^r FOR''Mt'POLICY PERIOD INn..ATFD.
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SHOW 0 ANY 07 TH2 ABOVE DESCR!DED POLICIES DE CANCELLED BEFORE THE EA-
Cit of Htingtoneac Beach PPRATION D! � THEREOF. THE ISSUING COMPANY WILL ENDEAVOR TO
y Huntington P%Ail .AYS Vgll rfEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE
2000 Main Street Lt Ff,BLTI AtLUn TO MAG.WW NOTICE Sw.ALLWPOSE NO Of MAraON Ola UAS. ITY
Huntinqton Beach, CA 92645 OF ANY KUND UM4 T!fa fC . AW,ITS,AdtNTS OR REPRESENTATIVES.
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AUTHORIZED REPPE ENTATWE ��
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Afth
AN AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH
AND STRADLING, YOCCA, CARLSON & RAUTH
A PROFESSIONAL LAW CORPORATION, FOR BOND COUNSEL SERVICES
IN CONNECTION WITH MULTIFAMILY FINANCING BOND PROCEEDINGS
+
THIS AGREEMENT is made and entered into this _i day
of _A __, 1985, by and between the CITY OF HUNTINGTON
BEACH, (hereinafter referred to as "CITY" ) , and "RADLING, YOCCP.
CARLSON AND RAUTH, a professional law corporation, (hereinafter
referred tc as "ATTORNEYS" ) .
WHEREAS, the CITY proposes to }provide financing :for
multifamily residential housing projects; and
In order to finance said projects (hereinafter referred tc
as "PROJECT(S)" ) the CITY requires the advice and assistance of
bond counsel; and
The CITY has deterhtined that ATTORNEYS are qualified by
training and experience to perform the services of bond counsel,
and ATTORNEYS are willing to provide such services; and
The public interest, economv and general welfare will be
served by this Agreement;
NOW, THEREFORE, it is agreed by CITY and ATTORNEYS zs
follows;
1.
AMIL
;'.. DUTIES OF ATTORNEYT
ATTORNEYS shall do, carry out and perform all of the
following services as are necessary for the issuance of bonds or
other obligation of the CITY for multifamily PROJECTS;
A. Consultaticn and cooperation with the CITY
attornefs, financing consultants and other consultants,
underwriters, staff and employees of t7_e CITY and
officers, employees and consultants of any private
part' receiving financial assistance for such PROJECTS,
and assisting such consultants, ur• write-s, staff and
employees in the f_ormul ,tion of a )rdinated financial
and legal PROJECTS.
B. Preparation of all legal proceedin��s for the
authorization, issuance and delivery of bonds of the
CITY for such PROJECTS; including preparation of
required loan agreements, origination agreements,
servicing agreements, Bond Resoiutions or Indentures of
Trust authorizing the issuance of such bonds, fixing
the date, denominations, numbers, maturity and interest.
rates, providing the form of the bond., and authorizing
their execution, authentication and registration;
certifying the terms and conditions, upon which the same
are to be issued; providing for the setting up of
special funds for the disposition of proceeds of the
?.
sale of the bonds, including creation of a reserve
fund, if any, and such other funds as may be advisable,
and providing all other details in connection
therewith, including special covenants and clauses L�r
the protection of the interests of the b-Dndholders;
preparation of the resolution selling all or any part
of the authorized bond issue; preparation of all
documents required for bond delivery, and supervising
such delivery; preparation of all other proceedings
incidental or in connection with the issuance, sale and
delivery of bonds for such PROJECTS.
C. Application for any Internal Revenue Service or
other rulings necessary to assure tax-exempt s`atus of
the bonds, or as required by the purchaser of the bonds.
D. Determination of the need for obtaining a permit
to issue bonds under the Securities Lr state or
federal) or no-action letters from tl ities
Exchange Commission and California Corr � ,ons
Commission.
E. Upon completion of proceedings -+, .isfaction
of ATTORNEYS, providing a legal opt. :qualifiedly
approving in all regards the legality of all
proceedings for the authorization, issuance and
delivery of bonds and all other tra.nsactione relating
3.
Ask
to such PROJECT;, and stating that interest on the
bonds is exempt from federal and state personal income
taxation (subject to certain required qua'-ifications
which are customary with respect to the concerned
financing) . which opinion shall inure to the banefit of
the - •-- ' ssers of the bonds.
z.nu all legal consultation requested by the
CITY concerning the bonds or the financing of any
PROJECT at any time aft•:tr delivery of the bonds.
G. Such oth, r and further services as :are normally
performed by bond counsel.
H. ATTORNEYS will not be responsible for the
preparation or content of the official statement
prepared by the underwriter or consultant to the
CITY other than to examine said official statement as
concerns description of bonds and matters within
ATTORNEYS' knowledge, and to participate in customary
due diligence inquiry Wit?-t CITY officials, staff,
underwriters and other consultants.
2. COMPENSATION
For the services of ATTORNEYS listed in Sect .on 1, the
CITY will pay ATTORNEYS a fee equal to the following:
4-
Total Principal
Amount of Bonds Sold Fee
$1, 000,000 or less $10,000
$1,000,001 to $5,000,000 $10,000 plus 0.375% of the
excess over $1,000,000
$5,000,001 or more $25,000 plus o.25% of the
excess over $5,000,000
In addition, for such PROJECTS the CITY shall pay to
ATTORNEYS all direct out-of-pocket expenses for travel, messenger
and delivery service and other services incurred in connection
with the services rendered by ATTORNEYS hereunder with respect to
such PROJECTS. Payment of said fees and expenses to ATTORNEYS
shall be due upon the issuance of bonds and the delivery of the
proreads thereof to the CITY, and said fees and expenses shall be
payable solely from the proceeds of the bonds and from no ocher
funds of the CITY OF HUNTINGTON BEACH.
3. RESPONSIBILITIES OF CITY
The CITY shall cooperate with ATTORNEYS and shall
furnish ATTORNEYS with certified copies of all proceedings taken
by the CITY, or other deemed necessary by ATTORNEYS to render an
opinion upon the validity of such proceedings. All costs and
expenses incurred incidental to the actual issuance and delivery
of bonds, including the cost and Expense of preparing certified
copies of proceedings required by ATTORNEYS in connection with the
issuance of the bonds, the cost u: preparing the bonds for
execution and delivery, all printing costs and publication costs,
and any other expenses incurred in connection with the issuance of
5.
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bonds, shall be paid from bond proceeds.
4. TERMINATION OF AGREEMENT
This Agreement may be terminated by the CITY at any
time by giving written notice to ATTORNEYS with or without cause.
In the event of terminaticn, all finished and unfinished
documencs, exhibits, project data, reports, and evidence shall at
the option of CITY, become its property and shall be delivered to
it by ATTORNEYS.
5. PRIOR AUTHORIZATION
Prior to incurring out-of-pocket expenses under Section
2 which exceed fifty dollars (t50) for any cost item, ATTORNEYS
will obtain prior approval from CITY as a condition of
reimbursement. In performing legal services under this Agreement,
ATTORNEYS shall work under the direction, and control of the City
Attorney and shall not render additional legal services other than
those specified in this Agreement without the advance concurrence
of the City Attorney.
6. SUBSEQUENT OPINIONS
T,n the event that the legal opinion to be provided
r
pursuant to Section 1 , subsection E, of this Agreement is deemed
not sufficient or not adequate by any underwrites of the revenue
bonds to be issued, any costs or fees attributable to obtaining a
collateral or additional opinion shall be borne by ATTOP' --YS and
deducted from the compensation otherwise due ',TTORNEZS under this
6.
Agreement.
7. NONDISCRIMINATION
ATTORNEYS agree that in the performance of the terms of
this Agreement, they will not engage in, nor permit their agents
to engage in, discrimination in employment of persons because of
4 race, religious creed, color, naticnal origin, ancestry, physical
handicap, medical condition, marital status, or sex of such
persons, except as provided in Labor Code §1420. Violation of
this provision may result in the impozition of penalties referred.
to in Division 2, Part 7, Chapter 1 of the California Labor Code.
8. INDEMNIFICATION, DEFENSE, HOLD HARMLESS
ATTORNEYS shall defend, indemnify and hold harmless
CITY, its officers, agents and employees, from and against any and
all liability, judgments, damages, cos*.s, losses, claims,
including Workers' Compensation claims, and expenses resulting
from or connected with ATTORNEYS` negligence or other tortious
conduct in the performance of this Agreement.
9. WORKERS' COMPENSATION
ATTORNEYS shall comply with all of the provisions of
the Workers' Compensation Insurance and Safety Acts of the State
of Ca_ '.Eornia, the applicable provisions of Divisions 4 and 5 of
the California Labor Code and all amendments thereto; and all
si:ailar state or federal acts or laws applicable; and shall
indemnify, defend and hold harmless CITY from and against all
7.
claims, demands, payments, suits, actions, proceedings and
judgments of every nature and description, including attorneys'
fees and costs, presented, brought or recovered against CITY, for
or on account of any liability under any of said acts which may be
incurred by reason of any work to be performed by ATTORNEYS under
this Agreement.
10, INDEPENDENT CONTRACTOR
It is further understood and agreed that ATTORNEYS are,
and shall be, acting at all times as independent contractors
herein and not as employees of CITY. ATTORNEYS shall secure at
their expense, and be responsible for any and all payment of
incoma tax, social. security, state disability insurance
compensation, unemployment compensation and payroll deductions for
ATTORNEYS and their officers, agents and employees and all
business licenses, if any, in connection with the services to be
performed hereunder.
I 11. ATTORNEYS shall be insured against errors and omissions
in the amount of five million dollars ($5,000,000) aggregate
I
coverage, shall keep such policy in force during the term of this
Agreement, and shall provide AGENCY with a certificate of
(Rest of page not used)
8.
AML
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insurance evidencing current coverage.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by and through their authorized officers
the day, month and year first above written.
ATTORNEYS: STRADLING, YOCCA, CITY OF HUNTINGTON BEACH
CARLSON AND RAUTH,
A professional corporation
By
O fic Mayor
By v /
Sec tar
ATTEST. APPROVED AS TO FORM:
62"5�' A,<N
City Clerk %P 5 City ttorn
REVIE AID APPROVED: :JITIATED AND APPROV�,J:
City Administratt6r Deputy Director of
Redevelonmpnt
AJF:mf
1/9/85
9.
REQUE4 FOR CITY COUNCI C fION � -�-
RH 85-6
Date February 20, 1985
Submitted to: Honorable Mayor and City Council
Submitted by: Charles W. Thompson, City Administr o , GQt3 1�
Prepared by: Douglas N. La Belle, Deputy Director of Redeye
A 9 AA^
Subject: BOND COUNSEL CONTRACT STRADLING, YOCCA, CARLS 1N &
Consistent with Council Policy? k] Yes [ ] New Policy or Excepti n ~'
Statement of Issue, Recommendation,Analvsis. Funding Source,Alternative A ions,Attachments:'.
STATEMENT OF ISSUE:
I,1 formulating the tax-exempt financing for three apartment projects, it
is recommended that the law firm of Stradling, Yocca, Carlson & Rauth
provide the Bond Counsel services. Pursuant to this recommendation,
attached is a contract between the City of Huntington Beach and Stradling,
Yocca, Carlson & Rauth for the Council's consideration.
RECOMMENDATION:
Approve and authorize the City Clerk to execute the attached contract for
Bond Counsel services to be provided by Stradling, Yocca, Carlson & Rauth.
ANALYSIS:
As the City's efforts to provide tax-exempt financing continue and the
scheduling of iszues overlap, it may be necessary from time to time to
employ the services of more than one Bond Counsel firm. Staff has
reviewed the previous Bond Counsel experience of Stradling, Yocca, Carlson
& Rauth and, in consultation with the developers and investment banker,
has come to the conclusion that for this transaction the firm whose
services most nearly fit the needs of the project is St-adling, Yocca,
Carlson & Rauth. (Stradling, Yocca, Carlson & Rauth already serves as
Special Counsel to the Redevelopment Agency.) Thezefore, the attached
contract is ~ecommended for approval.
FUNDING SOURCE:
Costs paid from bond proceeds. Fine-half of one percent City issuance fee
will be assessed.
ALTERNATIVE ACTION:
Do not approve contract.
:kTTACHMENT:
Contract
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