HomeMy WebLinkAbout1989-017
..
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
RESOLUTION NO.
89-17
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF THE AGREEMENT FOR UNDERWRITING SERVICES WITH EHRLICH
BOBER & CO., INC., INITIATING PROCEEDINGS FOR DEVELOPMENT OF A
FIFTY (50) UNIT SENIOR CITIZEN HOUSING PROJECT IN THE CITY OF SAN
BERNARDINO.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AS FOLLOWS:
The Mayor is hereby authorized to enter into and execute on
behalf of the City of San Bernardino the Agreement for
Underwriting Services attached hereto marked Exhibit "A" and
incorporated herein by this reference, to initiate proceedings
for development of a fifty (50) unit senior citizen housing
project in the City of San Bernardino.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino, at a
regular
meeting held on the 17th day
of
January
, 19~, by the following vote, to wit:
AYES:
Council Members
Estrada, Reilly, Flores, Maudsley,
Minor, Pope-Ludlam
NAYS:
None.
ABSENT:
Council Member Miller
~dL//l{b:~/J,/;
Ci ty ./Clerk
JFW:ss
January 6, 1989
1
1 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXEUCTION OF THE AGREEMENT FOR UNDERWRITING SERVICES WITH EHRLICH
2 BOBER & CO., INC., INITIATING PROCEEDINGS FOR DEVELOPMENT OF A
FIFTY (50) UNIT SENIOR CITIZEN HOUSING PROJECT IN THE CITY OF SAN
3 BERNARDINO.
4
5
The foregoing resolution is hereby approved this /f~~
6
day of
January
7
8
9
Approved as to form and
10 legal content:
11
JAMES
. PENMAN, City Attorney
~T~
12
BY:
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
JFW:ss
January 6, 1989
2
r'-. ..] ... .." /1
I" /' ()~. J r ~/;:;~ ~".t~ '
/ ~
tJ-w &,~ ~ T7
~ iu--~p j2~ ~~7
, d-f, -JJ ~
~Z~~ /ZiL tA,tu-dj
II -' /
it~Q(.!z0 ~-0. ,.~h-~.-f./
" "
C"'} l 'U (;/~ ~,_~ .40 Ci'jllb-.
~~/~.~~\
AGREEMENT FOR UNDERWRITING SERVICES
THIS AGREEMENT,
made this day of
19 by and between the City of San
Bernardino, California (hereinafter called the "City"), and
EHRLICH BOBER & CO., INC.
(hereinafter called the "Underwriter"):
WITNESSETH:
WHEREAS, the City proposes to initiate proceedings for
development of a fifty (50) unit senior citizen housing project
in the City of San Bernardino; and,
WHEREAS, the City requires assistance in the
development of a sound, equitable and practical financing plan to
implement the Project by taking into consideration those matters
set forth in the "Suggested Scope of Services" attached and
labeled Attachment "1" to the "Request for Proposals for
Financial Advisory and/or Underwriting Services" bearing date of
7-21-88, a copy of which is attached hereto as Exhibit "A" and by
this reference made a part hereof; and,
WHEREAS, the City requires the services of a
professional underwriter experienced in financial consulting for
and underwriting the obligations of cities to assist in such
financial planning and to coordinate the sale and distribution of
the City's obligations; and,
WHEREAS, the Underwriter asserts that it is qualified
by training and experience to perform said services;
/ / /
JFW/dys
January 6, 1989
1
NOW, THEREFORE, it is mutually agreed as follows, to
wit:
The City hereby employs the Underwriter and the
Underwriter hereby accepts such employment to perform the
services, upon the terms, subject to the conditions, and in
consideration of payments as hereinafter set forth:
I. Scope of Services to be performed by the Underwriter.
A. Structuring the Financing:
1. Underwriter will work with City in
developing the scope of the
financial feasibility and assessing
the marketability of the project.
2. Underwriter will work with the
City's bond counsel recommending
specific terms and conditions
affecting the basic security of the
Bonds.
3. Underwriter will prepare the text
of an Official Statement for sale
of the securities. Said Official
Statement will include a
description of the Bonds and their
security, and pertinent financial
and economic data. In preparation
of the Official Statements,
underwriter will exercise due
diligence in the ascertainment of
all material facts and
circumstances regarding the project
and their disclosure in the
prospectus.
4. Underwriter will be present at any
necessary information meeting or
meetings.
5. If the City so requests,
Underwriter will assist in
arranging the selection of a paying
agent.
6. Other services are as set forth in
Section 6 of Underwriter's
"Proposal for Underwriting
JFWjdys
January 6, 1989
2
Services. ." dated September 9,
1988, a copy of which is attached
hereto as Exhibit "B" and by this
reference made a part hereof.
B. Marketing the Bonds.
1. The Underwriters' earnings from
the discounting and sale of the
bonds shall be its sole
compensation under this agreement,
except as otherwise specifically
set forth herein. The
Underwriter's discount is
contingent upon the bond sale.
2. Underwriter will submit an offer to
the City to purchase the bonds
subject to pertinent resolutions,
the Official statement, and all
other necessary documents,
approvals, and proceedings
governing such Bonds having been
determined by bond counsel, the
City, and the Underwriter to be
satisfactory in all respects for
financing purposes. If after
negotiations with Underwriter, in
good faith, the City and
Underwriter fail to agree on terms
of sale of the Bonds, the City may
terminate this agreement, then
offer the bonds for sale to others.
II. General Provisions Relating to the City and the Investment
Banker:
A. The City agrees to cooperate with Underwriter
by making available copies of economic and
financial reports, agreements, contracts,
resolutions, and other relevant documents
pertaining to the project, the City or the
Bonds as reasonably may be required from time
to time for prompt and efficient performance
by Underwriter of their obligations
hereunder.
B. Underwriter shall pay its own out-of-pocket
and other expenses, the cost of the
preparation of the Official Statement,
Underwriter's Counsel, Blue Sky and
Investment Memoranda used by the Underwriter.
JFWjdys
January 6, 1989
3
/ / /
/ / /
C. The City shall pay from the proceeds of the
Bonds or other funds of the City all costs
and expenses customarily paid therefrom,
including the cost of printing the Bonds, the
Official statement and other documents, the
fees and expenses of its legal counsel, bond
counsel, consultants, accountants, and of any
other experts retained by the City in
connection with the financing. Such expenses
may include those costs set forth in the
"Costs of Issuance", a copy of which is
attached hereto as Exhibit "c" and by this
reference made a part hereof as though fully
set out at this point. The parties hereby
acknowledge that the specific fees set forth
therein are estimates only.
D. It is expressly understood and agreed and the
City hereby recognizes that in performing its
activities pursuant to a negotiated sale that
Underwriter is acting solely on its own
behalf and plans to submit to the City a
proposal to purchase the Bonds for resale.
Nothing herein shall be construed to make the
Underwriter an employee or agent of the City,
and Underwriter shall be at all times an
independent contractor.
E. The term of this agreement shall extend to
the date of sale of the Bonds as contemplated
herein, as determined by the date upon which
the formal Bond Purchase Contract is executed
by the City and Underwriter, or the term of
this Agreement shall be two (2) years from
the date hereof, whichever is longer. This
Agreement may be cancelled without cause by
either party by giving the other party thirty
(30) days written notice of such
cancellation. Said notice shall be sent to
the party by certified mail at the fOllowing
addresses:
CITY OF SAN BERNARDINO
EHRLICH BOBER & CO.,
INC.
Director of Community
Development
300 North "0" Street
San Bernardino, CA
92418
401 Wilshire Boulevard
Suite 1250
Santa Monica, CA 90401
JFW/dys
January 6, 1989
4
F. The City may terminate this Agreement if,
after negotiations in good faith, the City
and Underwriter fail to agree on mutually
acceptable terms of sale of the Bonds. Upon
termination of this Agreement, the City shall
be under no further obligation to the
Underwriter hereunder, except that the City
is obligated to pay to the Underwriter any
expenses incurred on behalf of the City
pursuant to Paragraph II B of this Agreement
should the City not sell the Bonds to the
underwriter pursuant to Section I (B) of this
Agreement.
III. THIS AGREEMENT shall not be amended except upon the
express written Agreement of the parties hereto to such
amendment.
IV.
THIS AGREEMENT and any documents or instruments
attached hereto or referred to herein integrate or terms and
conditions mentioned herein or incidental hereto, and supersede
all negotiations and prior writing in respect to the subject
matter hereof.
In the event of conflict between the terms, conditions
or provisions of this Agreement, and any such document or
instrument, the terms and conditions of this Agreement shall
prevail.
IN WITNESS WHEREOF, said City has caused these
presents to be properly executed, and said Underwriter has caused
these presents to be executed by one of its officers, as of the
/ / /
/ / /
/ / /
/ / /
/ / /
JFW/dys
January 6, 1989
5
date hereinabove set forth.
ATTEST:
CITY OF SAN BERNARDINO
City Clerk
BY:
Evlyn Wilcox, Mayor
City of San Bernardino
EHRLICH BOBER & CO., INC.
BY:
Dawn Vincent
Approved as to form and
legal content:
JAMES F. PENMAN, City Attorney
BY: L J'~
d--
JFWjdys
January 6, 1989
6
t . \
....j
l.':
. .
.. .
Cl'1Y ~ SAN ~DI)
CXJKJNI'IY [EVE[D9IN1' EEPARIJea'
REQDT Ita HaaWS
Fat Fnw<<:IAL ~ AND/CR tKflHU'1'IlrJ SERVICD
~
'1be Camunity Cevelcpnent Department of the city of San Bemard1no desires
to retain a finaB::ia1 advisor or uOOer<<riter to assist in the anticipated
issua.ra! of b:ni finarc~ rot. to exceed two millim dollars ($2,000,000)
fex the PJll)OS8 of finarc~ the devel~.t of . fifty (50) \Nt senior
hcus~ project in the City of San Bemard1no. .
'1he total cost of the project. is estimated at ~tely three milliem
dollars ($3,000,000). '!he project is an apartment CXIIplex for senior
citizens em fixed iJxxmes (pr:bnari1y SSI am SSA recipients) and wcWd
inclme a DUltip.u:pose facilty for leisure, educatiooal am,tor avocatimal
activities. '!be project will be located em ax:proximate1y two point five
(2.5) acres at the future comer of nores am. 17th streets. '1b8 project
will require the constructioo of both Flores am 17th streets and
installatioo of certain offsite iDpravements related to the oazplet1em of
said streets.
'Jbe project. will be finarx:ed as a joint venture ~ the City of San
Bemardino, the Hcus~ Authority of the Coonty of san Bemard1no ard
Arrowbead Health Care System, Inc., the parent CXII'paJ1y of Sari Bemard1no
O:mrI.1nity Hospital. ~ Health ~ System, Inc., will lease the
lan:l to the Hoos~ Authorj,ty for thirty (30) years with two (2) ten (10)
year cpt!CIlS or thirty five (35) years with three (3) five (5) J8U' cptiaw
for ale dollar ($1.00) per year for the lIfe of tlle lease an! affected
cptia1S. '!he Hals~ Authority am the City will share in fJ.nanCin) the
ocst of the project described abaYe. '11le Hoos~ Authority will own ani
<:prate the project. '!he Authority will pay for ard1it.ecb.n-al and
eDJi.neer~ services am awroximately me-balf (1/2) of the project cost
(estimated at ale point five millioo dollars ($1,500,000)) with its am
reverA.1eS.
'Jbe city propoces to pay its share of the project cost (estimated at
awroximately ale point five million dollars ($1,500,000)) l1.i use of
O\arter City Notes. '!be city .inten1s to issue a Limited CbligatiCll loan
Ag1.elt:::uent Revenue Bond in an annmt not to exceed two millim dollars
($2,000,000), am City will retire the b:I1d by pledging a portion of its
b.1enty peroent (2M) hc:usirg set-aside turrls generated frail soooeestul
redevelcpuent project areas.
Recent City of San Eemardi.no Redevelqment Agercy tax i..oc:rement
projections irdicate tl)at in fiscal year 1987/1988 three (3) of its eleven
(11) project areas produced $245,548 in twenty percent (2M) halsi.rg set
aside furrls since June, 1987. '!he total set-aside turds al dep:sit as of
March 31, 1988 was rep:>rted at $381,476. Hcnsirg set-aside itxxrne fran the
Northwest, Tri~ity an:) South Valle project areas has been increasirg
fifteen percent (15%) to twenty percent (20%) annually.
7/21/88
1
EXHlBiT A
. .
. .
. , . -. I. ",'
. ': #. ,
far pnposes of th1a project, the City has Mlected as1xnS ccuwe1 tM
firm of M.d;Je Ja;e Qrthrle Alexarder an:! Fe1'da1.
H1DjJuI-
'1he City seeJaI a fInancial cxnsultant or ~ter 1Ib) will play a
leadership rol. ~ the plOO8S8, provide calt.iru1ty of perscn18l,
am advi8e the City J:egal"dinJ the D:8t awrqriate ant cost-effective ~
to stnJCture the Ixn! finaoo~ package to meet the needs of the City, the
Iblsirq Authority, an! the Arrort.bead Health Care Syst8, Inc. RespcnJents
to this RFP DUSt have a full setVioe office in SQJt.hem Califomia am be
able to deD:nstrate their ~teooe am cxmnitment to the suooesstul .
finaooir9 of similarly sized i$Sl,".' 'Ibe City wishes to minimize the tJme
and effort required of its staff an:! other ccnsultants to ~lish a
suooesstul finarcin). (Attachment "1" provides a detailed descriptiQ'l of
the services required.)
Prtp:sal Contents
'!be City requests the resporrlents to this'RFP provide, at a minhrum, the
items irdicated belCN:
1. 0",1 ificatlaw
'Ibis sectia1 of the proposal shoold in:1icate breadth of experieooe of
yoor fim in variQ,lS types of bcn:l financed projects un:1ertaken by
cities an:) redevelcpnent ageroies. Incl\XJe descript.1ms of ya.Jr fim'.
involvement in &t.tucturir9 am develq>~ innovative finaoo1n:J plans am
tedmiques involv~ the# sale of bcnB to the DID'licipal bcni market am
providirq the sezvices listed in Attachment "1-.
Please inclme at least three (3) references of clients for Vlcm ya.Jr
firm has performed reomt advisory services (within the last three (3)
years). Also describe the stroct:ure of yoor firm, J'UIbar of Ellplajeea,
locatial of offices an:! its capital base. If possible, in::luie a recent
a\Xlited finarcial statement.
Pl~ls fran finns that do not meet the req.lil"PmPJ"Ih: outlined aboYe
will not be oa1Sidered.
2. ~ of Services
Attad1ment "l" provides a list of the services the City will expect to
be provided D.i the selected finaooia1 advisor/urrlel:writer. '!he"5Cq)8
of services" sectial of the proposal shculd identify arrj JOOdifications,
deletioos or acHitions to the listed services, as well as a descripticn
of the nature am extent of services beirq prtp:)SEd.
.Add! tionally, the proposal shculd (a) ootline the pre1iminaIy finarcirq
structure prcp::sed; (b) state whether credit ~t tNOOld be
necessazy; (c) state anticipated debt service coverage requirements;
am, Cd) subnit a list of procedural step; involved tcqether with a
prtp:)SEd timetable.
3. Financing Costs am Carpensation
7/21/88
2
(.."j
'f. ;....
(~)
. .
.. .
'lbI pt<paeal 8ho.11d inc1\de an estJmate of finaooir9 CDIt8 inc1~
fees am eJCpenses associated with tM 1asuanoe of thI Jx:n! ard 1rd1cate
~ these costs will be CXI1tin:Jent ~ clceq of tM Ale of tM
bc:Im.
4. Refpa~ibl. Persa1ne1
Please ttsrcrlbe the plopo;ed persa1n81 traa yQIr fim ~ will haw
direct am primLuy respasibility for the pravisicn of 88l'Vices and 1ft)
will \IOrk with the City to arraJ'Jl8 the p1~ financq. Pl_
provide l"eSl~ am otJler informatlC1'l rega1'd1nJ their aper1ence in
similar financin;Js an:) financial advisoxy work. in general. Jm)
selectim. pm;amel Jtay not be substituted without advance writtsQ
~Wroval ~ the City.
selectim Criterio
O:nsultants shall be selected thrcu:]h review of the subdtted p~18,
usiRJ the followiD) criteria:
1. Demonstratial of specific current aM extensive exper!mx:e am track
reoom in structurin;J am coordlnatin;J lxni financin3s as pemitted
UI'O!r California law.
2. Respcnsiveness of the subnissicn to the pxovisims and criteria of this
RFP.
3. nexibility in tailoriRJ the ~ of financin3s (e.g.,
aDk)rt!zatial, coverage ard reseIVe aspects) to the specific needs of the
City.
4. Experieooe, CJW.ificaticns, CXXltirW.ty aM availability of staff
assigned to the provisicn of tne advisor,turderwritiJ9 services.
5. Fees am ~.
A limited I"J\.1I'OOer of finns may be invited to oral inteJ:vi.ews prior to the
awan! of a contract for sexvices.
selectioo Sd1edu1e
Five (5) cx:pies of sutmissions in respalS4a to this RFP DUSt be received by
the City no later than 4:00 p.m., PDl', August 31, 1988, at the followiD)
addl:: e&s:
City of San Bernardino
Carmmity Develcpnent. Deparbnent
300 North "0" street, 5th Floor
San Bernardino, CA 92418
Attn: Maurice Oliva, HaJsin;J Deve10prent Specialist
Nothin;J in this RFP shall be deemed to ccmnit the City to eJ'X3Clge arrJ
financial consultant an:1,Ior lD"rlena-iter or to ploceed with the sale of any
Jx:n3s. No prcp:lSal costs will be reinbJrsed.
7/21/88
3
I .
. .
~...
I,": .
\ 4.
. .
. .
cuw1deratlm of the subldsslcrw vUl ocxur as 80CIt .. ....!hl. to11~
the abaYe deadline ard rima selected for oral 1nteJ:viM v1l1 be ccnt.acte4
bmediate1y after th8 preliminary eva1uatlcn 18 CXIIplete4.
I.rrt cpsticna reganU.nJ this RFP rray be directed to Mr. Oliva at 714/384--'
5065.
7/21/88
4
(:'-:::"
'''; ....'
~..
. .
..
AttactIDent -1-
Cl'1Y or SAN BEJfi\RDIlC
a:HUmY IEYEIDIMfM' ~
mxJDT RR IR)FaWB
FCR FINANCIAL ~ AND/CR tlNIENU'I'nG smvICD
~ Scq)e of Services
nte sezvices liSted below are those an-rent.ly identified to be provided by
tbe selected fJ.naooial advisor;urderwriter. Arrf sucnestiaw far
1DtX!ificaticn; to these services should be In::lu:Sed in the pl~
subnitt.ed .in respa sa to this RFP.
m general, the selected financial advisor/UrdeIWriter t.1OOld be required to
advise City staff am ot:hexwise ooonlinate the pI'qX)Sed financinJ.
~ initial services ~ will be to cxnsult with city staff
ngtU."ding the ptiic financinJ qlt!alS available for the px~
f1nen::in;J, am prcNide advice, oamsel ard ~icns as to feasibl.
altcnatives llhichlllalld aoocI1pl1sh the goals of the City in . tmely mS
CXBt-effective fashicm. 'Ihe advisor;urderwrlter lllalld then be asked to
finalize the fJ.naooinJ plan am provide the followirg services:
1. Prepare am recuw.erxi cmmtizatioo schedules' for the ptqa;ed
financinJ .
,
2. Arran3e am hplement procedural steps for the financinJ.
3. Make rE:CulweOOat1cns regard.inJ the financial ocntent of
resolutions, notices of sale, an::! other documents.
4. Prepare am rflNise, as requested by City staff am c:xnsul tants,
the Official statements ani other documentation for the
financilq .
5. Coordinate'the reproductiCl'l, mailinJ am distribJticn of the
notices of sale, Official statEmmts, am other documents, if
any, to un:lerwriters am institutia'lal blyers located
throoghoot the 0CU1b:y to ~ the best <nrpetitive
bidd.i.rg for the financinJ.
6. Assist in dJta.ining bard rati1xJs fran Kxdys am,tor Starrlard
ani Poors, if awrcpriate.
7. Assist in dJta.ining nunicipal bord insurance or other credit
enhancement, if awrcpriate.
8. With due regard for the needs ani requirements of the City,
make recCluluerrlations regard.inJ timirg of the financiIq to take
~:i1tun advantage of market oorxtitions.
7/21/88
5
J \. ".:~.
. .
.' 9. Advise dty .taft.. to the MlectJ.cn of the bcnS Irinten,
fiscal ~ and pay1n; agents, 1nc1~ cbta1n1i9
OCItlA'Utiw bids, ~ IIPtp'1ate.
10. It plblic1y bid, ca1aJ1ate bids for the bc:ms, identity the
lowest bid and advise the City ~ award of tM
fJnanc1n;.
11. Arran;Je the closirq of the fJnanc1n; am advise City staff .
~ investment of fJnancirq Pro..~, it any, pending
their ~ture t7.i the City. SUd1 advice shcWd inc1u:te CIlly
V8rf sea.1l'e and insured investments 89 that the City ~C!911nA9 DO
risk ~t.soever regarding ~ty of prilx:iPal am guaranteed
retmm CI1 investmei1t.
lab/lOS1
7/21/88
7/21/88
6
I""JC
.
.
Ehrlich Bober & Co., Inc.
SECTION 6
SCOPE OF SERVICES
I
~I
I
.
"
I
-.
.
.
",-,,','.
~
;1
I
C\..
~.
'11,.,',.'
~
Listed below are the suggested scope of services that were provided by the City in its
request for proposals. Because we are proposing to serve the City as an underwriter, we
have deleted any services in connection with financial advisory services for a competitively
bid financing. However, we have added to this list several other services that Ehrlich
Bober would provide as underwriter for the City's proposed bond issue. These additions
are in boldface type.
1 . Identify the advantages and disadvantages of alternative financing
structures including fixed rate and variable rate financing alternatives.
2 . Advise the City on the appropriate financial structure of the issue,
including principal amount, maturity dates, coverage requirements,
interest payment dates and early redemption provisions.
3. Prepare and recommend amortization schedules for the proposed fmancing.
4. Arrange and implement procedural steps for the financing.
5. Make recommendations regarding the financial content of resolutions, and other
documents.
6. Prepare and revise, as requested by City staff and consultants, the Official Statements
and other documentation for the financing.
7. Assist in obtaining bond ratings from Moody's and/or Standard and Poors, if
appropriate.
8. Assist in obtaining municipal bond insurance or other credit enhancement, if
appropriate.
9. With due regard for the needs and requirements of the City, make recommendations
regarding timing of the financing to take optimum advantage of market conditions.
10. Advise City staff as to the selection of the bond printers, fiscal agents and paying
agents, including obtaining competitive bids, where appropriate.
11. Provide trade publications, including the Bond Buyer, with
information regarding the salient features and proposed sale date of the
transaction.
,~,'.
,
12. Analyze the market in the period prior to the sale of the issue to
determine the best method for marketing the securities, given
prevailing market conditions.
II
I
.
13. Develop an expected pricing scale, terms of offering and strategy for
the sale.
EXHIBIT
B
-.
:-
-
III
III
..
..
..
..
..
..
~..
...
,..
.-.
Ehrlich Bober & Co., Inc.
14. Arrange the closing of the financing and advise City staff concerning investment of
financing proceeds, if any, pending their expenditure by the City. Such advice
should include only very secure and insured investments so that the City assumes no
risk whatsoever regarding security of principal and guaranteed return on investment.
15. Compile a complete bond record for the City which will include all
details regarding the securities, their sale and the resulting payments
required for principal and interest, along with the respective dates of
such payments.
16. Compile a pricing report which compares the pricing and underwriter's
discount of the City issue to other similar issues on the market at that
time.
17. Supply any other information requested by the City w'ith regard to the
issue, market information, operational consideration or other topics or
18. Continued monitoring of the City's unexpended bond proceeds so the
City can realize capital appreciation on its investment portfolio,
thereby eliminating any negative arbitrage that may have been present
upon purchase of the initial portfolio. By using computer software
expressly designed for such "reoptimization," Ehrlich Bober will
structure the City investment portfolio subject to expenditure
requirements and market yields.
'..
.
1"-
III
..
..
..
..
II
.
.
.
.
.
II
II
II
II
II
.
.
.
Ehrlich Bober & Co.. Inc.
COSTS OF ISSUANCE
The following is a list of the estimated costs of issuance assuming a $2,000,000 revenue
bond financing. These are the items that would not typically be payable from the
underwriter's discount. We do not include the City's bond counsel fees as that is subject to
the City's selection and negotiation.
TrusteelRegistrarlPaying Agent
Bond Printing
Preliminary & Official Statement Printing
Rating Fee (if applicable)
Miscellaneous Expenses (2)
$5,000( 1)
2,000
4,000
7,500
5,000(1)
Bond Insurance (if applicable)
.60-.90% x total debt service(l)
Annual Letter of Credit Fee (if applicable)
.75% x total outstanding principal(1)
plus 210 days of interest
.1 % x total outstanding principal(1)
plus 210 days of interest
Upfront Letter of Credit Fee (if applicable)
(1) These costs would be contingent on the bond sale.
(2) This would include the underwriter's out-of-state travel expenses and various
out-of-pocket expenses incurred by the issuer.
EXH'BlT
c