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. '. ' . 0 One No. 14.40-50 AlJY
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL'~TION
From:
ROGER G. HARDGRAVE, Di rmil!l. -ADHIH.SIl6/ilct:
Public Works/Engineering 1989 JUt 14 AM 8 32
July 11, 1989
Authorization to Execute Agree-
ment for Bond Counsel Services --
Cajon and June Acquisition Dis-
trict, Assessment District No.
977 -- Brown & Diven
Dept:
Date:
Synopsis of Previous Council action:
05-15-89 ---- Authorization granted to proceed on Assessment Districts No. 977.
Recommended motion:
Adopt Resolution.
cc:
Marshall Julian, City Administrator
Andrew Green, Finance Director
Jim Penman, City Attorney
Jim Richardson, Asst. City Adm. Dev.
W-
Supporting data attached:
Verne Nadeau
Staff Report,
Agreement & Resolution
Phone:
384-50~6
Contact person:
Ward:
6
FUNDING REQUIREMENTS:
Amount: $18.420
Source: 18-cct. No.)
251-651-53925
(Acct. Descriotion)
Caion and 'l~.it;nn n;d..;r~
Finance: p,..,.....
Council Notes:
75-0262
Agenda Item No.
.#-'1
Ilb
CiTY "OF SAN BERQRDINO - RI!QUEST .oR COUNCIL ACTION
I
STAFF REPORT
Request for proposal s for bond counsel services, on the Cajon and June
Acquisition District, were sent by letter dated 05-22-89 to the following firms:
* 1. Best, Best & Krieger
* 2. Brown & Diven
* 3. Hawkins, Delafield & Wood
* 4. Orrick, Herrington & Sutcliffe
5. Sturgis - Ness - Brunsell - Sperry
6. Wilson - Morton - Adams
Proposals were received from only those firms indicated by an asterisk.
These proposals were reviewed on 06-27-89 by an interview panel comprised of
the following:
1. Lorraine Velarde, Executive Assistant to Mayor
2. Dennis Barlow, Sr. Assistant City Attorney
3. Fred Wilson, Assistant to the City Administrator
4. Gene Klatt, Assistant City Engineer
5. Verne Nadeau, Real Property Supervisor
Councilwoman Valerie Pope Ludlam was invited, however she was unavailable.
After carefully reviewing the qualifications and experience of these firms,
Brown & Di van was selected as bei ng the best qua li fi ed to provi de the necessary
bOn<! counsel services at this ti me.
The proposed agreement provides, in general, that Brown & Diven will provide
normal bond counsel services for a fee of $18,420 or a percentage of the face
value of the bonds, whichever is greater. This fee will be paid from the bond
proceeds.
In the event that bonds are not sold, a mutually agreed upon reasonable
fee, not to exceed.$18,420 shall be paid. This amount would have to be provided
from monies advanced by the Developer, if the district is not established and
bonds so 1 d.
The total preli minary construction cost is $1,680,000. This amount could
change upon preparation of. plans. Incidentals and other expenses increase the
total estimated project cost to $2,184,000.
At a percentage rate as stated in the agreement, the estimated bond counsel
fee wi 11 be $18,420.
Since the services of an bond counseler are needed for this assessment
district to proceed, we recommend that the Agreement for Bond Counsel Services be
approved.
75-0264
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1
RESOLUTION NO.
2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN AGREEMENT WITH BROWN & DIVEN RELATING TO
3 PROVIDING BOND COUNSEL SERVICES FOR THE CAJON AND JUNE
4 ACQUISITION DISTRICT, ASSESSMENT DISTRICT NO. 977.
BE IT RESOLVED BV THE MAYOR AND COMMON COUNCIL OF THE CITY
5 OF SAN BERNARDINO AS FOLLOWS:
6 SECTION 1. The Mayor is hereby authorized and di rected to
execute on behalf of said City an Agreement for Legal Services
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with Brown & Diven for providing bond counsel services for the
Cajon and June Acquisition District, Assessment District No.
977, a copy of which is attached hereto marked Exhibit "A," and
incorporated herein by reference as fully as though set forth
at length.
SECTION 2. This resolution is rescinded if the parties to
the Agreement for Legal Services fail to execute it within
sixty (60) days of the passage of this resolution.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a
meeti ng thereof, hel d
, 1989, by the
day of
n the
ollowing vote, to wit:
AYES: Council Members
NAYS:
ABSENT:
City Clerk
1
2
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':.sE I..t:..R,ESQ,/,;HD.lYTHE MAYO.R .AND COMMON COUNCIL OF THE CITY
5 :F:$.\* ~"'ARDI1to. 'AS FOLLOWS: .
;; ".,_.. .. ,',- ,- .. /f.._~...' ....... .. .', '\
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6 . SECTION 1. The Mayor is he,..by uthor1%ed and directed to
7 .x.c.~~teOI1 'behalf Of' said Ci ~y an Agreement for Legal Servi ces
i;'-,' -: .. .. .... .
8 'wftn.llrown & Dive.n for providing bond counsel services for the
9 t~j~~ and June Acquisition District, Assessment District No.
1097Y,:~" coPY of<,i,lli.c1l 'Is attachl/d hereto marked Exhibit "A," and
_,i;_~lf~:""...... ~.' ,',.. ........ .. :,
. 11 411,~rip..'''lted~ere,tll b,Yreference as ful.ly as though set forth
};~;~( ~ i'.J2 .~~~r'::t?":il\~'. .. ..~i .. ".
,,"-.,,' W."'" ,..",l.,~i~'., . ..,'.. ....
:~ri" i' ~.)'.~~ ~'::,?i:3'~,_\~i,:,~t:;N::t:~!~,,~:~,,\.,~,~;;,-_::~,i. ':~;' ;,-,': .~.. .1<:{:-.,:t~,\':)__.!' ' .. :,'.. .. ''/';i.> .... .. .. ..
1('~."~~:'i'> "iXn,!:~~HQ~~.r~,~,r.eSOh!'~10," J' rescinded if the parties to
~~i.;'~;~,~~!j;: ~41:';i~~~.e.~ent for~ Legal Services fail to execute it within
i:ltt:,{ 15 sixt)':l6Q) (ja.'ys of, the passage of th~s resolution.
.~ <:'J';" '._' :_,,' .. ,,_ .' " "
t, 16:'1~R,,;R~BY CERTIFY that the foregoing re.solut10n was duly
17 <lp.'p'~eclbY the lCayo.r and Common Council of the Ci ty of San
.~ ~.. .. ,-:,
1.8eJ',n,r~fI.\0 a t. a
,
19 ":":~II
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20 olJow.1ng votf!. to wit:
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RESOI.UnOKNO. .
',;Col'
'JlESOLUTIONOF 1I1ECITY lJ.r SAN BERNARDINO AUTHORIZING THE
EXE.c.itTION OF MI:AGREEMENT WITH BROWN & DIVEN RElATING TO
P;~!l'~lDUG BOND, COUNSEL SERVICES FOR THE CAJON AND JUNE
ACQUISITION DISTRICT, ASSESSMENT DISTRICT NO. 977.
muting thereof, held
<1.1 of
, 1989, by the
:~:\:.E,$:; COltnci ,. "''l....bers
,'",,';
j.'C:. '.
.
..NAYS:
ABSENT:
City Clerk
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RESO: AUTHOQING EXECUTION OF AGREEMEO WITH BROWN & DIVEN
RELATING TO BOND COUNSEL SERVICES FOR ASSESSMENT
DISTRICT NO. 977
1 The foregoi ng resol uti on is hereby approved thi s
2
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day of
, 1989.
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9 Approved as to form
and legal content:
10 James F. Penman
11 City Attorney
"r 1 f ""----
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W. R. "Bob" Holcomb, Mayor
City of San Bernardino
o
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AGREEMENT FOR LEGAL SERVICES
THIS AGREEMENT is made and entered into this
day of
.
19____, by and between the CITY OF SAN BERNARDINO, a municipal corporation,
hereinafter called "City", and BROWN & DIVEN, hereinafter called "Attorneys".
1. EMPLOYMENT. The City employs the Attorneys as special counsel to the
City to assist it in conducting proceedings pursuant to the Municipal Improvement
Act of 1913, Division 12 of the Streets and Highways Code, and the Improvement
Bond Act of 1915, Division 10 of said Code, for the purpose of establishing an
assessment district, including portions of the City which will benefit from the
acquisition and construction of certain public improvements, and as bond counsel,
with respect to the issuance of bonds pursuant to the said Improvement Bond .ct
of 1915, for the purpose of financing the design, acquisition and/or construction
of said public improvements and expenses incidental thereto.
2. SERVICES. The Attorneys will advise the City Attorney's Office in
regard to the proceedings for the establishment of said assessment district and
wi 11 prepare all ordi nances, resol uti ons, noti ces, bond forms, and other
documents requi red in the proceedi ngs. They will exami ne all proceedi ngs, step-
by-step as taken, and when the bonds are issued, will issue their opinion or
opinions upon the validity thereof. They will also attend any meeting in which
substantive action in connection with the proceedings is to be taken. The
services to be rendered by the Attorneys will not incl ude any services in
connection with validation or condemnation suits, if such suits be filed to
validate any proceedings or for the acquisition of any property or easement
proposed to be taken. The services of the Attorneys also do not include
7-10-89 EXHIBIT A
1
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any services or opinions in connection with the writing of case contracts, any
services or opinions in connection with any proceeding subsequent to the sale of
bonds, or any services or opinions in connection with any litigation.
3. COMPENSATION. For preparation and supervision of the proceedings,
examination of each step as taken, and the issuance of their approving opinion on
the bonds to be issued, the Attorneys will be paid the greater of $18,420 or an
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amount determined in accordance with the following schedule. The amount to which
the following schedule percentages are applied is the aggregate amount of the
face value of bonds issued to finance the improvements within the proposed
assessment district as contemplated by this agreement.
AMOUNT
$0.00
PERCENTAGE
$1,500,001.
$7,500,001.
Over $15,000,000.
- $1,500,000.
- $7,500,000.
- $15,000,000.
IS
1/2S
1/4:
1/8S
The Attorney's fee will be payable upon the issuance of bonds. If other
services are requested by the City which are not within the scope of those
provided for herein, they will be performed by the Attorneys on a time-basis at
the hourly rates of the Attorneys involved. In the event the bonds are not
issued, the Attorneys will be paid a reasonable fee, to be mutually agreed upon,
based upon applicable hourly rates of the Attorneys undertaking the work prior to
abandonment but in no event shall such sum exceed $18,420.
4. REIMBURSEMENT.QE EXPENSES In addition to the fees provided for above,
the Attorneys will be reimbursed by the City upon monthly statements for any out-
of-pocket expenses incurred by them in the course of thei r employment, such as
7-10-89
EXHIBIT A
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o 0
long distance telephone calls, telegrams, messenger and courier services, travel
at the request of City officials, duplicating, computer time, and the like. The
Attorneys will order the printing of the bonds for the account of the City. The
bills for such printing will come directly to the City and will be paid from bond
proceed s.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as
of the date first above written~
BY
CITY (f' SAN BERNARDINO
a minicipal corporation
BY
Mayor
ATTEST:
Ci ty Clerk
APPROVED AS TO FORM
and LEGAL CONTENT:
James F. Penman
Ci ty Attorney
.u. 7. ~*___
7-10-89
EXHIBIT A
3