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HomeMy WebLinkAboutResolution - 032670I - Financial Advisory Contract - First Southwest Co - Airport GO Bonds - 03_26_1970RESOLUTION IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and 7ected to execute for and on behalf of the City of Lubbock a FINANCIAL ADVISOR )NTRACT between the City of Lubbock and First Southwest Company covering rvices in connection with $14, 000, 000 AirportlGeneral Obligation Bonds attached rewith which shall be spread upon the minutes of the Council and as spread upon s minutes of' this Council shall constitute and be a part of this Resolution as if .ly copied herein in detail. ed by the City Council this 26th da TTEST : Lowe, City Secretary - enter, Jr., P ?o -? FINANCIAL ADVISORY CONTRACT (General Obligation Bonds) (M.A.C. Form 0-1. Standard Form of Agreement between Municipal Subdivision and Municipal Bond Dealer Covering GENERAL OBLIGATION BONDS. Form Approved by the Municipal Advisory Council for Use of Members Only.) Date March 26, 1970 To: The Honorable Mayor and City Council City of Lubbock, Texas Gentlemen: 1. We understand that you contemplate ordering an election within your City at which there will be submitted to its qualified voters the proposition(h) of authorizing the issu- ance of certain bonds in the following amount() and for the purpose() indicated: $14,000,000 Airport General Obligation Bonds, and that in connection with the authorization, issuance, sale and delivery of such bonds you desire this proposal from us to perform professional services in the capacity of Financial Advisors for your City 2. By this proposal we offer our professional services and our facilities as Financial Advisors and agree to perform the following duties normally performed by such advisors, and to perform such other duties as, in our judgment, may be necessary or advisable: a. To make a study of the debt structure of your ri ty , the trend of its assessed valuation, its taxing power and the present and estimated future taxing re- quirements, and on the basis of such study to devise and recommend for your approval a plan of financing to cover the proposed bonds. Such plan shall include a maturity schedule and other terms and conditions, such as options of prior payment and the like, as will, in our opinion, result in the issuance of the bonds under terms and conditions most advantageous to your rity consistent with a minimum ef- fective interest rate. b. We understand that you have retained or expect to retain (to be Patxh1 i ahPrl bar the city , a firm of recognized municipal bond attorneys, who will prepare the proceedings and advise the steps necessary to be taken in the bond election, the legal issuance of the bonds and the final delivery of the bonds and who will issue an opinion approving the legality of the bonds. All financial services rendered pursuant to this contract will be performed in such manner, and will include assembling and ac- cumulating such financial facts, information and data, as will be necessary or appropri- ate to obtain the unqualified approving legal opinion of said attorneys. The fee of said attorneys will be paid by us c. At such time as it shall be decided to order a bond election, we will assemble and trans- mit to the bond attorneys such data as may be required in the preparation of the neces- sary petitions, orders, resolutions, notices and certificates; and will assist your govern- ing body in the expeditious handling thereof. d. We will procure and deliver to such official as you may designate such sets of election supplies, including ballots (but excluding voting machines and voting booths) as are required for each polling place. e. To advise you of current bond market conditions, forthcoming bond issues and other general information and economic data which might normally be expected to influence interest rates or bidding conditions so that the date for the sale of the bonds can be set at a time which, in our opinion, will be favorable. f. To compile from your official records for submission to and approval by your governing body an Official Statement or Prospectus, if required, containing official data and other information of the nature and to the extent ordinarily required in bidding on bonds of this type, all of which we are to furnish in a sufficient number of copies to permit mail- ing to prospective bidders, a list of which we agree to provide. g. To attend to and pay for the printing of the bonds. h. To pay the necessary expenses in obtaining the approving opinion of the Attorney Gen- eral of the State of Texas and the registration of the bonds by the Comptroller of Public Accounts, and the delivery of the bonds to the purchaser at a bank in Austin, Texas. i. If the bonds are eligible under Texas laws for purchase by the- State Board of Educa- tion, to assist in the preparation and timely submission of an Application for Waiver to s id B ard. J. See Bottom of next page.) 8. We agree to direct and coordinate the entire program of financing herein contemplated and to assume and pay the expenses above enumerated. It is specifically understood and agreed, however, that this obligation on our part shall not cover payment of any local election expenses (except that we will furnish election supplies to the extent hereinabove provided); nor shall it cover the cost of publication of notices in newspapers, or other publication costs, or the expenses of any litigation. 4. As consideration for the services rendered by us and as reimbursement for the expenses which we are to incur, it is understood and agreed that your City is to pay and we are to accept a cash fee to be computed as follows: the recommended minimum fee of the Municipal Advisory Council of Texas; Part VI, pages 10-12, "Financial Advisory Services for Municipalities", April 1, 1968, attached. Such fee shall become due and payable simultaneously with delivery of the bonds to the purchaser. b. In the event the bond election contemplated by this proposal should fail, then the fee due us shall be nothing ; however, should the same or similar proposition(s) again be submitted at an election held within 16 months from date hereof, then at our option the agreement covered by this proposal shall apply to any bonds authorized at such election. 6. It is further understood and agreed that we reserve the right to submit a bid for the bonds when offered for sale. 7. This agreement shall be terminated by the delivery to the purchaser of the bonds covered hereby, or by the elapse of sixty (60) months from date of your acceptance hereof, whichever shall first occur; however, if the bonds have not been so delivered within the period specified, this agreement may be extended by mutual consent. 8. This proposal is submitted in duplicate originals. When accepted by you it will consti- tute the entire agreement between your City and the undersigned for the purpose and considerations herein specified. Your acceptance will be indicated by the signature of your Mayor , attested by your City Secretary , on both copies and returning one executed copy to us. Respectfully submitted, First Southwest Company 4�1. ACCEPTANCE Representative ACCEP,TED pursuant to--!!atign- adopted by the City Council Of of March 19 70. on this the 26th day Title Mayor, City of Mock, Uxas ATTEST: C_ Title City Secretary, City of Lubbock, Texas (SEAL) 3, To accompany, if requested, members of the City Council or other City officials to New York, New York, to present KA.c.Form G1. financial and economic data necessary to obtain a rating from Rev. Apr. 1968 Moody's Investors Service and/or Standard h Poor's Corporation on any proposed issue of these bonds. Expenses incurred by us in this instance will be assumed by us,