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. CITY OF SAN BERti '.ADINO ~ AI!QUEST
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File No. 14.40-80
"~R COUNCIL ACTION
From: ROGER G. HARDGRAVE, Director
REC'D. s8t;l~.
Oept:
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,.....-..-\i 1.'"\, L.. ,] j :
. on t~~utent
cl.'!toun~S\itvices. '.. .
e~t ~ M$I'lo-Ro
un\ty ~~ilittes Di~ric~r Distr
995 ,~'ORRICK.HERRINGTON &
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Date: March It.
Synopsis of Previous Council action:
02-19-90
Urgency Ordinance MC-707 adopted requiring an Infrastructure Fee for
the Verdemont Area.
Authorization granted to proceed with Mello-Roosl District,
District No. 995.
Resolution No. 90-103 adopted accepting petition and designating Bond
Counsel, Underwriter and Special Tax Consultant.
03-19-90
02-21-99
Recommended motion:
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Adopt Resolution.
cc:
Marshall anl ian, City Administrator
Andrew Green, Finance Director
aim Penman, City Attorney
Jim Richardson, Asst. City Adm. Dev.
(j!/
Contact person:
\igrRQ ~;ild.'.~a'l
Phone:
20(1 SO:2C
Supporting data attached: jit~ff R8P9rf ,.'.greeRlent i. lirs8 htOlJfI Ward:
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FUNDING REQUIREMENTS:
Amount:
NO~JI
Source: (Acct. No.)
25 ~ 67'J 5:_F)2::
(Acct. DescriPtion)
Ve.I::..Lffidnt A[[.o. Ca~"l"clllit} Ll~~l ~t~L_!..
Di3lr id.
Finance:
Council Notes:
75-0262
Agenda Item NO~
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CITY OF SAN _RN! '1DINO - RI!QUEST Fr':l COUNCIL ACTION
STAFF REPORT
On 12-04""
Infrast
establishing
,~ency Ordinance No. MC-690 was adopted levying an
,', the Verdemont Area and Resolution No. 89-486 was adopted
'imt of the fee.
On 01-08-90, the hearing on the ordinance was closed and added Section 15.73 to
the Municipal Code requiring the levy of the Infrastructure Fee for a specific
period and on 02-19-90 Urgency Ordinance No. MC-706 was adopted extending the
effective date and final reading was given to MC-707 requiring the fee.
Subsequently, some of the major property owners/developers in the Verdemont Area
have submitted a proposal to allow a Mello-Roos~ Community Facilities District to
be established for collection of the fees and ~o include the School Fees. On 03-
19-90, Resolution No. 90-103 was adopted accepting the petition and designating
Orrick, Herrington & Sutcliffe as Bond Counsel, David Taussig and Assoc. Inc. as
Special Tax Consultant and Prudential-Bache as Underwriter for the proposed
District .
The attached Resolution authorizes execution of the Agreement with ORRICK,
HERRINGTON & SUTCLIFFE, as Bond Counsel for the District.
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The proposed agreement provides, in general, that Orrick, Herrington &
Sutcl iffe will provide normal bond counse I services for a fee of $30,000 phIS
.15% of the bond issue amount. 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 $15,000 shall be paid. This amount would have to be provided from
City funds or moneys advanced by the Developer, if the district is not
established and bonds sold.
The District will co 11 ect the Infras tr'ucture Fee of $7,350 per dwell ing unit plus
approximately $3,500 per unit for School Fees. As it stands today, the average
tax per dwe il ing unit will be approximate ly S I, 500 per year. There are some
legal questions which still need to be resolved regarding the School Fees and if
they are determined not to be a part of the District, trlE' annual tax per dwelling
unit will go down.
Since the services ot an bond counse tor- dce needed fot' this assessment district
to proceed, we recommend thdt tlte Agreement for Bond Counsel Services be
approved.
U3-27-90
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75-0264
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RESOLUTION NO.
ION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION
WITH ORRICK. HERRINGTON & SUTCLIFFE RELATING TO PROVIDING
SERVICES FOR THE VERDEMONT AREA COMMUNITY FACILITIES DISTRICT,
DISTRICT NO. 995.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AS FOLLOWS:
SECTION 1. The Mayor is hereby authorized and directed to execute
on behalf of said City an Agreement for Legal Services with Orrich,
Herrington & Sutcliffe for providing bond counsel services for the Verdemont
Community Facilities District, Assessment District No. 995. a copy of which
is attached hereto marked Exhibit "A," and incorporated herein by reference
as fully as though set forth at length.
SEcn ON 2.
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This resolution is rescinded if the parties cJ:o the
Agreement for Legal Services fail to execute it within sixty (60) days of
the passage of this resolution.
[ HEREBY CERTIFY that the foregoin, ['esolution was duly adopted by
17 the Mayor rind l'IJmmOn COllnei 1 of the ~~ i t} of San Bernardino at d
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meet Lllg
theceo f ,
he'Lll O!]
the
clay of
1 ~\H). !J\ tilt:' 1I,];;'W;('_ ,r-,j,~. t,) wit:
~:t:): \_'-":~"-l. \''''IIlL'~'~''-;
\.\YS:
\BSl-\ T ;
I"ld"
, i (~
28 03-28-91)
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RESO: AUTHORIZING EXECUTION OF AGllEEMElIT WITH ORRICE, HERRINGTON &
SUTCLIFFE RELATT" . TO BOND COUNSEL SERVICES FOR A' ".SSI'lEIl'l' DISTll.ICT NO. 995.
day
The foregoing resolution is hereby approved this
, 1990.
Approved as to form
and legal content:
James F. Penman
Ci ty Attorney
By: (k~? ~
(J
28 03-28-90
w. R. "Bob" Holcomb, Mayor
Ci ty of San Bernardino
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CITY 01" SAN BERNARDINO
COMMUNITY FACILITIES DISTRICT NO. 995
(VERDEMONT AREA)
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AGREEMENT
FOR
BOND COUNSEL SERVICES
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THIS AGREEMENT is made and entered into this day
of , 1990, by and between the CITY OF SAN
BERNARDINO, State of California, a municipal corporation and
public agency, hereinafter called "City", and ORRICK,
HERRINGTON & SUTCLIFFE, attorneys at law, Los Angeles,
California, hereinafter called "Counsel".
REC.l:IAIt&
WHEREAS, City desires to employ Counsel to provide legal
services incident to the formation of a community facilities
district (the "District"), pursuant to the Mello-Roos CommuQity
Facilities Act of 1982 (the "Act"), being Chapter 2.5 of Title
5 (commencing with Section 53311) of the California Government
Code, with bonds to be issued secured by a special tax, for the
acquisition and/or construction of certain public facilities,
including appurtenant work and incidental expenses; and
WHEREAS, Counsel is prepared and able to provide all legal
services required and necessary incident to formation of the
District and issuance and sale of the bonds.
CQY:EHAHT&
NOW, THEREFORE, it is mutually agreed by the parties hereto
as follows:
Section 1. AGREEMENT FOR SERVICES.
to render and Counsel agrees to render
to the District as follows:
City employs Counsel
legal services incident
(a) Review of the tax formulation and structure, the rate
and method of apportionment, the map of the District,
the extent and description of the facilities and
services, the proceedings engineer's public report,
the bonds, and providing instruction and advice in
connection therewith.
(b) preparation of all petitions, resolutions, notices,
certificates, contracts, bond forms, and other papers
and documents required in the proceedings.
(c) Validation proceedings to establish the legality of
certain issues and actions in connection with the
.t:formation of the District, the tax structure, the
- 0 lection and the sale of bonds.
( _> amination of the proceedings, step by step, as taken.
(e) Attendance at meetings of City staff and the City
Council, as needed.
(f) Issuance of Counsel's legal opinion as to the validity
of the proceedings, contracts and documents, validity
of the special tax and the tax-exempt status of the
bonds.
Section 2. LEGAL FEES. For the services described in
Section 1, City agrees to pay Counsel a fee based upon a
percentage of the bonds issued in the proceedings as follows:
First bond series:
Proceedings Fee of $30,000
plus lS/lOOths percent (.15\)
of the bond issue amount;
All subsequent bond
series under the first
authorization:
Proceedings Fee of $10,000
plus lS/lOOths percent (.%5\)
of the bond issue amount;-
The foregoing fee shall be paid from the proceeds of the sale
of bonds, within a reasonable time after sale and delivery of
bonds to a bona fide purchaser.
Section 3. COSTS. This Agreement contemplates that
Counsel shall pay its normal office expenses, but not including
any long-distance telephone, publication fees, filing fees,
messenger and express mail charges and the costs of printing
which shall be paid by City out of proceeds of the bonds: if
travel outside Southern California or other extraordinary
expenditures are authorized by City, then City shall payor
reimburse Counsel for the costs and expenses of such travel and
for such other extraordinary expenses.
Section 4. ABANDONMENT. If the District proceedings are
abandoned prior to sale and delivery of bonds, then City shall
pay Counsel a fee based upon the reasonable value of services
rendered from commencement of the proceedings to date of
abandonment: provided that such fee shall not exceed $15,000.
Such fee is to be paid from moneys deposited with the City by
the property owners and is not otherwise an obligation of the
City.
Section 5. LITIGATION. The fees specified in Section 2 do
not include services in connection with the acquisition, by
contract or condemnation, of any easements or other property
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necessary for the proposed facilities. Services in connection
with the validation of the proceedings are included within the
scope o~ ~his Agreement: provided, however, that any other
servic~rtaining to litigation not arising out of the
perfo~ of this Agreement are not included within the scope
hereof .~
Section 6. INFORMATION PROVIDED BY CITY. City agrees to
furnish Counsel such maps, records, title searches and other
documents and proceedings, or certified copies thereof, as may
be required by Counsel in the performance of its services
hereunder.
Section 7. ENTIRE AGREEMENT. This Agreement is the entire
agreement between the parties relating to the matters covered
herein.
Section 8. AMENDMENT. Any amendment to this Agreement
shall be of no force and effect unless in writing and signed by
both parties hereto.
IN WITNESS WHEREOF, the parties hereof have executed this
Agreement in the City of San Bernardino, State of California,
on the date and year first above written. .
CITY OF SAN BERNARDINO
Mayor
ATTEST:
City Clerk
[SEAL]
ORRICK, HERRINGTON & SUTCLIFFE
Approved as to form
and legal content:
James F. Penman,
City Attorney
~w~~ j
George W. McFarlin
By:
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