HomeMy WebLinkAboutResolution - 989 - Financial Advisory Contract - First SW Company - General Obligation Bonds - 12/10/1981DGV:da
DL'CAT TTTTATT
RESOLUTION 989 - 12/10/81
BE 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
directed to execute for and on behalf of the City of Lubbock a Financial
Advisory Contract between the City of Lubbock and First Southwest Company
for the issuance of securities in the amount of $41,627,000 for General
Obligation Bonds, attached herewith which shall be spread upon the minutes of
the Council and as spread upon the minutes of this Council shall constitute
and be a part of this Resolution as if fully copied herein in detail.
Passed by the City Council this 10th day of.
LL McALISTER, MAYOR
ATTEST:
Evelyn.Gaf ga, City ec a -Treasurer
1APPROVED AS TO FORM:
December ,1981.
Do ald G. Vandiver, First Asst. City Attorney
RESOLUTION 989 — 12/10/81
FINANCIAL ADVISORY CONTRACT
(M.A.C. Form C-1 Revised. Standard Form of Agreement between Political Subdivision
_ and ;Financial Advisor Covering Issuance of:Securities. Form approved by the Municipal
ry, for Use_o Members O y.)
Advisory, Council �' jd
Date December 2, 1981
To: Thee Honorable: Kayor,.(and ;.
ounc
C i ty',of -LObbpck•
u it i,: Texas'
Gentlemen:
1. We understand that you are contemplating the issuance of securities of the kinds, in the amounts,
and for the ;pure indicated as follows:
oses.�n .
}
$41`.6.27,000- GO_heral 'Obl,igat1pn 'Bpnds
and that in connection with the issuance of these securities you desire this proposal from us to perform
professional services. in the,capacity;of Financial Advisor for, the City o Lub , f bock, Texas
_
(liereinafter `called "Issuer") .
2. By this proposal we offer our professional services and our facilities as Financial Advisor for the
issuance and sale of the above-described securities, and in that capacity we agree to perform the following
duties, and to perform such other duties, as, in our judgment, may be necessary or advisable:
a. We will make a survey of the financial resources of the Issuer to determine the extent of its
borrowing capacity. This survey will include an analysis of the existing debt structure as com-
pared to existing and projected sources of income which may be pledged to secure payment of
debt service, and where appropriate, will include a study of the trend of the assessed valuation of
the Issuer, the Issuer's taxing power, and the present and estimated future taxing requirements.
If the revenues of a system or facility are to be pledged to repayment of the securities in ques-
tion, the survey will take into account any outstanding obligations which are payable from the
net revenues thereof, additional net revenues to arise from any proposed rate increase, and the
additional net revenues as projected by your consulting engineers as a result ^of the improve-
ments to be financed, by the securities in question. We will also take into account your future
financing needs and operations as projected by your staff and/or your consulting, engineers and
other experts.
b. On the basis of the information developed by the survey described in the above and foregoing
paragraph, and on the basis of other information and experience available to us, we will submit
our written recommendations on the financing in question. Our plan will include recommenda-'
tions as to the date of issue, interest payment dates, schedule of principal maturities, options of
prior payment, and any other necessary additional security provisions designed to make the is-
sue more attractive to investors. All recommendations will be based on our best professional
judgment, with the goal of designing securities which can be sold under terms most advan-
tageous to Issuer, and at the lowest interest cost consistent with all other considerations.
--
c. We will advise you of current bond market conditions, forthcoming bond issues, and other gen-
eral information and economic data which might normally be expected to influence the interest
rates or bidding conditions, so that the date for the sale of the securities can be set a time,
which, in our opinion, will be favorable.
d. If it is necessary to hold an election to authorize the securities, we will, under the direction of the
bond attorneys, assist in coordinating the assembly and transmittal to the bond attorneys of
such data as may be required for the preparation of the necessary petitions, orders, resolutions,
notices and certificates in connection with the election.
e. We will coordinate the preparation and submission of the Official Notice of Sale, the Official
Statement or Offering Statement, and such other market documents which you may require. We
will also supervise preparation of the uniform bid form, containing provisions recognized by the
municipal securities industry as being consistent with the securities offered for sale. We will
submit to you all such offering documents, including the Official Statement, for your proper
examination, approval and certification. After such examination, approval and certification we
will furnish you with- a supply of such documents and shall mail a set of the same to a list of
prospective bidders, a copy of which list shall be submitted to you upon request. We will also
supply sufficient copies of the Official Statement or Offering Statement to the purchaser of the
securities in accordance with the terms of the Notice of Sale.
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Our fee and reimbursable expenses shall become due and payable simultaneously with the delivery of
the securities to the purchaser.
5. In the event any bond election be necessary, if such election shall fail, the fee due us shall be
noth i ng ; however, should the same or similar propositions again be submitted
to election held within 24 months from date hereof, then at our option the agreement covered
by this proposal shall apply to any such securities.
6. It is further understood and agreed that we reserve the right to submit a bid for the securities
when offered for sale.
7. This agreement shall be terminated by the delivery to the purchaser of all the securities covered
hereby, whether delivered all at one time, or in installments.
8. Special Conditions. In addition to the terms and obligations herein contained, this proposal and
agreement is subject to the following special conditions:
The City agrees to pay the cost of bond ratings from Moody's Investors
Service, Inc., New York, N. Y., and Standard 6 Poor's Corporation,
New York, N. Y., and the expenses of travel of City officials to New
York.
9. This proposal is submitted in duplicate originals. When accepted by Issuer it will constitute the
entire agreement between Issuer and the undersigned for the purpose and considerations herein specified.
Your acceptance will be indicated by proper signatures of your authorized officers or representatives on
both copies and the returning of one executed copy to us:
Respectfully submitted,
Firm: First 3attfhwest Company ,
AC
ACCEPTED pursuant to a mot i
By
Authorized Representative
KANCE
adopted by the Cl ty Counci 1
of the. City of Lubbock, Texas
on this i nt-h of $eee 'Te '19 81
Title Mayor, City of Lubbock, Texas
ATTEST:
Tit1� City Secretar Cit of Lubbock Texas
(SEAL)
M.A.C. Form C•1
Rev. September, 1976