HomeMy WebLinkAboutO-1997-2211
e ORDINANCE NO. 97-2211 eaR I GiN l
AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE CITY OF LA
PORTE AND MORONEY, BEISSNER & CO. INC., FOR THE PROVISION OF FINANCIAL
ADVISORY SERVICES; APPROPRIATING $1,000.00 TO FUND SAID CONTRACT; MAKING
VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT, FINDING COMPLIANCE
WITH THE OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
Section 1 The City Council hereby approves and authorizes the contract, agreement, or other
undertaking described in the title of this ordinance, in substantially the form as shown in the
document which is attached hereto and incorporated herein by this reference. The City Manager is
hereby authorized to execute such document and all related documents on behalf of the City of La
Porte. The City SecretBlry is hereby authorized to attest to all such signatures and to affix the seal
of the City to all such documents. City Council appropriates the sum of $1,000 from the General
Fund to fund said contract. Further funding will be appropriated during bond sale transactions.
Section 2 The City Council officially finds, determines, recites and declares that a sufficient written
notice of the date, hour, place and subject of this meeting of the City Council was posted at a place
convenient to the public at the City Hall of the City for the time required by law preceding this
meeting, as required by the Open Meetings Law, Chapter 551, Texas Govemment Code; and that
this meeting has been open to the public as required by law at all times during which this Ordinance
and the subject matter thereof has been discussed, considered and formally acted upon. The City
Council further ratifies, approves and confirms such written notice and the contents and posting
thereof.
Section 3 This Ordinance shall be in effect from and after its passage and approval.
PASSED AND APPROVED this the 22nd day of December, 1997.
ATTEST:
Honorable Mayor and Ci1i...Council
City of La Porte .
La Porte, Texas
~~V
Gentlemen:
We agree to perform Financial Advisory Services for the City and in such capacity will
provide the following services:
1. Advise with the City Council, Administration and any official committee to establish future
requirements so that additional funds borrowed can be arranged to fit into an overall long
range program.
2. Prepare projections of bond sales, assessed valuations and resultant estimated tax rates. In
the case of Water & Sewer Revenue Bonds, we will prepare projections of required net
revenues sufficient to amortize required debt and meet the necessary reserves and coverage
requirements. Also we include cash flow projections of investment earnings on bond proceeds
during construction and year end fund balanc~s.
3. Coordinate with the City Council, Administration and bond counsel for the proper calling
and notice of bond election and canvassing the results thereof. .
4. When the City Council and Administration detennine to issue bonds we prepare detailed
information on each separate issue recommending maturity schedules, optional provisions,
interest rate variations allowable, date and time of sale and other terms and conditions to be
contained in the bonds.
5. Prepare drafts of the Official Notice of Sale and Official Statement containing complete
and thorough financial information, demographic and economic data describing the City.
These documents will be presented for approval by the City Council and Administration. The
Official Statement always includes extensive, current aerial photographs of the City's principal
commercial and industrial establishments, residential developments and City facilities.
6. With approval of the City Council, we will take the Mayor, City Manager and Assistant
City Manager/Finance for rating conferences with Moody's Investors Service, Inc. and
Standard & Poor's Rating Group. Approximately 7 to 10 days prior to the rating interviews,
we will furnish the agencies drafts of the Official Statement and Official Notice of Sale
together with audits and budgets and other financial data describing the City and the bonds
being offered.
7. Publish the Official Notice of Sale in the appropriate financial journals. Printed Notices of
Sale and Official Statements are then mailed to all investment bankers, banks, and other
investment houses dealing in municipal bonds throughout the United States,
8. Make submissions to all the insurance consortiums that msure Municipal Bonds for
qualifications of the bonds for insurance.
9. Disseminate the rating announcements to all prospective bidders through direct mail and
. .
Wire services.
10. As we act solely as the City's agent, most bids will be delivered to our offices on the date
of sale prior to the evening City Council meeting. We will deliver the bids for opening and
review at the appointed time and place.
11. Tabulate and ariletiCallY verify the accuracy of all bid~d make recommendation to
the City Council as the best bid received, commenting .ts co~~tiy-e v~~ in the
current market pl~ce.. ' ~ @[J2)W
12. After bonds are awarded, gather the reoffering terms from the winning syndicate and
prepare yield calculations to assist the City in avoiding arbitrage violations in the investment
of the bond proceeds,
13, Coordinate the printing of the bonds with a nationally recognized financial printer.
14. Coordinate with bond counsel submission of the bonds to the Attorney General for
approval and submission to the Comptroller for registration.
15. Arrange for and coordinate the place and time for the delivery of the bonds to the
purchaser and the receipt of the funds by the City.
16. Provide the City and the paying agent/registrar with the appropriate principal and interest
payment schedule for the bonds as they were sold, furnishing final copies of the Official
Statement in connection therewith.
17. Assist the City in the investment of the bond proceeds during the period of construction
commensurate with the projected need for the funds, and the applicable arbitrage regulations.
18 . We will furnish an arbitrage rebate calculation program and work with the proper
administrative personnel to install the software on the City's computer system. This will
enable the City to have inhouse control and knowledge of the ongoing liability, if any, of
possible rebate accural.
19. We will pay the travel, meal, and hotel expenses for our representative participating in the
New York bond rating trip.
20. The City agrees to pay the expenses of their representatives participating in the New York
trip and the following expenses related to a bond sale:
a) Printing of Official Notice of Sale and Official Statement;
b) Aerial photography for Official Statement, if any;
c) Mailing costs for Official Notice of Sale and Official Statement;
d) Bond Rating Fees charged by Moody's Investors' Service, Inc.
and Standard & Poor's Rating Group;
e) Cost of printing bond forms;
f) Bond and Tax Counsel fees;
g) Attorney General's fee;
h) Paying AgentlRegistrar fees.
21. We agree to be available at all reasonable times for consultation on any subject relating to
the City's financial condition; i.e. tax rates, water & sewer rates, fund balances, depository
contracts, collateral requirements, investment of bond proceeds or other City funds, and etc.
F or services rendered and expenses incurred, the City agrees to pay us an annual retainer
of$I,OOO each January 1 and a fee on each bond issue from the proceeds of the bonds as follows:
2% on thet $100,000 of bonds;
3/4 of 1% on th~ next S200,OOO of bonds;
5/8 of 1% on the next S700,000 of bonds;
.
(Q;@[J2;l~f
1/2 of 1 % on the next SI, 000,000 of bonds;
3/8 of 1% on the next SI,OOO,OOO of bonds;
1/4 of 1% on the next S2,OOO,OOO of bonds;
1/8 ofl% on the next S15,OOO,OOO of bonds;
1/16 of 1% of all bonds over S20,OOO,OOO.
It is agreed and understood that so long as this contract is in force and effect, Moroney,
Beissner & Co., Inc. shall not be permitted to purchase any Bonds from the City nor have any
interest directly or indirectly in the purchase or sale of any securities by the City, except as agent.
for the City.
This contract shall remain in full force and effect, subject to cancellation by either party
upon 30 days notice, for a period offive years from its date,
Respectfully submitted,
MORONEY, BEISSNER & CO,. INC.
~1il:J
R. David etzer;President
111." ~,
Mos K. Fetzer, ce residdtt
ACCEPTANCE:
ACCEPTED on this ~ day of W<c.4t........ ~c.~
, 19 ~., .
~~ "T. \\~
City Manager