HomeMy WebLinkAboutR05-Redevelopment Agency
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, RECVELOPMENT AGENCY -It)lUEST FOR OMMISSION/COUNCIL AOoN
. From: Glenda Saul, Executive Director
Subject:
Contract for Bond Counsel Services
- Single Family Mortgage Revenue
Bond 1985
,t: Redevelopment Agency
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Date: October 1, 1985
Synopsis of Previous Commission/Council action:
12-17-85 Resolution 84-552 authorized the submission of an application to the
Mortgage Bond Allocation Committee for an allocation for Single Family
Bonds, 1985
Recommended motion:
(Mayor and Common Council)
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RESOLUTION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE EXECUTION OF AN
AGREEMENT WITH SABO & GONDEK, A PROFESSIONAL CORPORATION, TO SERVE AS BOND COUNSEL TO
THE CITY OF SAN BERNARDINO IN CONNECTION WITH THE 1985 SINGLE FAMILY MORTGAGE REVENUE
BOND ISSUE OF THE CITY OF SAN BERNARDINO
.~dM
Signature
Contact person:
GLENDA SAUL
Phone:
383-5081
N/A
N/A
Supporting data attached:
YES
Ward:
FUNDING REQUIREMENTS:
Amount: $
87,750
Project:
No adverse Impact on City:
Date:
October 7, 1985
~ncil Notes:
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1421J/EB
Agenda Item No. ~5
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RESOLUTION NO.
RESOLUTION OF THE CITY OF SAN BERNARDINO, CALIFORNIA,
AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH SABO & GONDEK, A
PROFESSIONAL CORPORATION, TO SERVE AS BOND COUNSEL TO THE CITY OF
SAN BERNARDINO IN CONNECTION WITH THE 1985 SINGLE FAMILY MORTGAGE
REVENUE BOND ISSUE OF THE CITY OF SAN BERNARDINO.
WHEREAS, the Mayor and Common Council of the City of San
6 Bernardino (the "City") desire to engage the services of Bond
7 Counsel for the proposed 1985 Single Family Mortgage Revenue Bond
8 Issue of the City of San Bernardino (the "Bonds")~ and
9 WHEREAS, Sabo & Gondek, a Professional Corporation, has
10 submitted a proposal to render certain bond counsel services to
11 the City in connection with the issuance and delivery of the
12 Bonds in accordance with terms as stated in a certain proposal
13 for bond counsel services as submitted to the City (the "Letter
<::_ 14 Proposal") and as attached hereto as part of Exhibit "I" and
15 incorporated herein by this reference.
16 NOW THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE
17 MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS
18 FOLLOWS:
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19 SECTION 1. The Contract and Letter Proposal as attached
20 hereto as Exhibit "I" are hereby approved. The Mayor is hereby
21 authorized and directed to accept and execute said Contract and
22 Letter Proposal.
23 SECTION 2. The fee for services of bond counsel to the City
24 in connection with the issuance and delivery of the Bonds as
25 stated in the Contract and Letter Proposal, shall be payable as
26 part of the costs of issuance of the Bonds.
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SECTION 3. This Resolution shall take effect upon adoption.
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CI'C' OF SAN BERNARDrc:o - REQUIOT FOR COUNCIL AC.":':>>N
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75-0264
STAFF REPORT
The Resolution before you authorizes the execution of a contract for Bond Counsel
services for the 1985 Single Family Mortgage Revenue Bond issue with Sabo & Gondek.
The bond counsel must prepare all documents, attend all meetings to supervise
proceedings, consult with members of the City staff and underwrite and prepare
agreements.
The attached letter details all of the functions to be performed by the bond counsel.
The City has received an allocation of $36,000,000. The fee for services would be
$87,750.00. This fee would be reduced if the amount of the issue is reduced. The fee
for out-of-pocket expenses would not exceed $5,000.00.
The bond issue must close by December 31, 1985. It is important to retain counsel as
soon as possible.
Mr. Sabo will be available to answer any questions you may have.
l42lJ/EB
10-07-85
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I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a
meeting thereof, held on
, 1985, by the
the
day of
following vote, to wit:
AYES:
NAYS:
ABSENT:
City Clerk
The foregoing resolution is hereby approved this
day
of
, 1985.
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18 Approved as to form:
Mayor of the City of San Bernardino
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City Attorney
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l.020-79/0985S/rg
09/26/85
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CONTRACT FOR PROFESSIONAL SERVICES
(SABO & GONDEK. A PROFESSIONAL CORPORATION - BOND COUNSEL)
THIS CONTRACT is entered into this
day of
1985. by and between the CITY OF SAN BERNARDINO.
CALIFORNIA (hereinafter called the "City") and SABO & GONDEK. a
Professional Corporation (hereinafter called the "Bond Counsel").
R E C I TAL S:
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This Contract is made with reference to the following:
A. The City has determined it necessary to engage the
services of Bond Counsel for its upcoming 1985 Single Family
Mortgage Revenue Bond Issue (the "Bonds").
B.
Sabo & Gondek.
a Professional Corporation.
has
submitted a proposal to represent the interest of the City while
serving as Bond Counsel and rendering the requisite opinion or
opinions to the purchaser of the Bonds which may hereafter be issued
by the City.
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EXHIBIT I,
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NOW, THEREFORE, the parties hereto do mutually agree as
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follows:
l. SCOPE OF SERVICES: The Scope of Services shall be as
contained in the Bond Counsel proposal letter dated September 26,
1985, attached hereto as Exhibit "A" and made a part hereof.
2.
TIME OF PERFORMANCE:
Services of Bond Counsel shall
commence upon execution of this Contract and shall be completed in a
timely fashion to allow for Bond closing by December 31, 1985.
3.
COMPENSATION AND METHOD OF PAYMENT:
The City sha 11
pay to Bond Counsel for services rendered in accordance with the
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Bond Counsel proposal
letter dated September 26,
1985,
attached
hereto as Exhibit "A".
It is understood that compensation to the
Bond Counsel shall be subject to the receipt of a requisition from
the Bond Counsel specifying the performance of work under said Bond
Counsel proposal letter and that Bond Counsel is entitled to receive
the amount requisitioned.
Payment(s) under said Bond Counsel
proposal letter shall be made solely from the Costs of Issuance of
the Bonds and such payment is contingent upon the successful sale
and delivery of the Bonds.
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IN WITNESS WHEREOF, the City and the Bond Counsel have
executed this Contract as of the date first above written.
SABO & GONDEK,
a Professional Corporation
BY:'~~
CITY OF SAN BERNARDINO,
CALIFORNIA
Mayor
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City Clerk
Approved as to Legal Form:
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City Attorney
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SABO & GONDEK
A PROFESSIONAL CORPORATION
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; (818) 7Q4.{)195
'-' TElECOPIER: (S18) 704-4729
ATTORNEYS AT LAN
SUITE 100
5855 TOPANGA CANYON BOULEVARD
WOODLAND HillS, CALIFORNIA 91367
SUITE 207
440 WEST COURT STREET
SAN BERNARDINO. CALIFORNIA 512401
(714) 884-2960
(714) 824-7302
September 26, 1985
Honorable Mayor and Common Council
of the City of San Bernardino
300 North "D" Street
San Bernardino, California 92418
Honorable Mayor and Council Members:
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This proposal, is being submitted for your consideration in
connection with the issuance by the City of San Bernardino, California
(the "City"), of its 1985 single family mortgage revenue bonds (the
"Bonds") pursuant to the laws of the State of California for the
financing of various single family residential projects within the City.
Such projects may be financed pursuant to the provisions of applicable
State laws with regard to the issuance of the Bonds by the City pursuant
to the appropriate authority under State law. The role of this Firm in
such financing would be to represent the interests of the City while
serving as Bond Counsel to the City and rendering the requisite opinion
or opinions to the purchaser of the tax-exempt obligations to be issued
by the City as to legality for issuance under the laws of the State of
California and the exemption of interest on such obligations from
applicable federal and State income taxation.
As stated above, this Firm shall serve as Bond Counsel to the
City for the financing of the single family residential projects, and, in
connection therewith, the services of Bond Counsel would he to prepare
all legal documents and filings necessary to implement the financing for
the projects, to attend such meeting or meetings of the Council at which
action on such projects would be taken at your request, to supervise the
proceedings step-by-step as taken to be certain that all necessary
procedures are conducted in the proper manner and at the proper times, to
consult with members of the City Staff and with the City Attorney and the
Underwriter in the preparation of documents and in the scheduling of
actions in connection with the financing for the projects, preparation of
the necessary agreements and resolutions for approval and adoption by the
City, including, but not limited to, the Resolution of Issuance, the
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Trust Indenture, the Mortgage Sale and Service Agreement, the Developer
Agreements and all closing documents, and to supervise the delivery of
the Bonds, conduct the closing thereof and provide the approving opinion
or opinions at the time relating to legality and exemptions from taxation.
For these services, the total fees for Bond Counsel services
would be $12,000 for the first one million dollars ($1,000,000) of the
principal amount of Bonds; for the principal amount of Bonds from
$1,000,000 to $5,000,000, $12,000 plus three-tenths percent (.3%) of
amounts in excess of $1,000,000; for the principal amount of Bonds in
excess of $5,000,000, $24,000 plus one-quarter percent (1/4%) of amounts
in excess of $5,000,000 to and including $25,000,000 plus one-eighth
percent (1/8%) of amounts in excess of $25,000,000 for each series or
issuance of tax-exempt obligations so issued from time-to-time by the
City plus out-of-pocket expenses to the extent provided below. It is
expressly understood and agreed that this employment letter with regard
to said percentage fee for Bond Counsel services and out-of-pocket
expenditures of Bond Counsel are contingent upon the successful sale and
delivery of the tax-exempt obligations in each series or separate
financing as contemplated hereunder. This Firm shall be compensated in
an amount not to exceed $5,000 for out-of-pocket expenses incurred as
Bond Counsel solely upon the delivery of the Bonds from the proceeds
thereof. Out-of-pocket expenses include such items as travel,
long-distance telephone calls, messenger services, telecopying,
photocopying, secretarial overtime and word processing charges and other
similar expenses related to such issuance of Bonds if and when Bonds are
actually issued and delivered. Such out-of-pocket expenses shall be in
addition to the Bond Counsel fee if Bonds in one or more series are in
fact issued.
If the terms as outlined herein are satisfactory, please
indicate acceptance hereof by the City through the execution of the
acceptance in the form provided below thereby employing this Firm as Bond
Counsel to the City upon the terms stated herein, and return an executed
copy of this letter.
Respectfully yours,
SABO & GONDEK
A PROFESSIONAL CORPORATION
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TJS:cmh
Enclosure
/0984S
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ACCEPTANCE
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The law firm of SABO & GONDEK, A PROFESSIONAL CORPORATION, is
~ hereby employed as Bond Counsel to the City of San Bernardino,
\... California, in accordance with the terms of the foregoing letter.
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Dated:
, 1985
(SEAL)
ATTEST:
City Clerk of the City of
San Bernardino, California
Mayor of the City of San Bernardino,
California
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