HomeMy WebLinkAboutResolution-1974-0323
Introduced by Alderman
Hulsey
RESOLUTION NO. 323
Series of 1974
WHEREAS, it has been determined that it is essential to
the betterment and safety of the City of Wheat Ridge that certain
expenditures such as reconstruction of streets and storm drainaqe
improvements be supported by a general obligation bond issue, and
WHEREAS, it is necessary and desirable for the City to
have the advice and assistance of expert counsel thoroughly experi-
enced and knowledgeable in financial and investment matters in the
area of municipal bond issues, and
WHEREAS, Walter F. Imhoff, of Hanifen, Imhoff and Samford,
Inc., is so experienced and expert in the said field of municipal
bond issues,
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Wheat Ridge, that:
Section 1. Walter F, Imhoff be and is hereby appointed
and retained as special advisor to provide financial and investment
services to the City of Wheat Ridge and to furnish such advice,
assistance and guidance as may be required by the City of Wheat
Ridge in connection with the forthcoming proposed bond issue,
Section 2. As to Walter F. Imhoff, remuneration for all
such services shall be in accordance with the attached schedule of
fees to be paid by the City upon presentation of a proper billing
statement submitted by Hanifen, Imhoff and Samford, Inc.
DONE AND RESOLVED this 11th day of
1974, by a vote of 5 to 1
July
, A. D.,
..............~~4. ~~'" --
Pau~. Abramson, Ph,D.
Mayor
ATTEST:
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ise Brough
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Clerk
Attachment to
(j/~;n, ~~ tfr dfZ/7/ltP7ci cY:u.
Resolution No, ~J
Page 2
1624 TRErv10NT PLACE DENvER C-OLOHADO 80202' \:'031 534- :)2,-'1
120 BROADWAY NEW YORK CITY, NEW YQR"r\ 10005 (212) 233-7570
MEMBER:
NEW YORK STOCK EXCHAhJGE, INC
pACI~IC STOCK ExCHANGE. INC
Honorable Mayor and City Council
City of Wheat Ridge
7470 W. 38th Avenue
Wheat Ridge, Colorado 80033
Dear Ladies and Gentlenlen:
We are pleased to submit a proposal to act as financial advisor in connection
with general obligation bond issues which you anticipate subrnitting to the
electorate in the near future. The company, acting as principal, with cornplete
investment services to n,unicipalities, is prepared to offer our services to the
City on the various financial matters, our services to include the following:
1. We would investigate the present financial structure of the City
and prepare a study for your consideration which outlines the
various means of incurring debt obligations.
2. We would rnake reconnnendations to the City for the repaynlent
of the newly proposed bonded indebtedness which study would
include the income available to the City to n'leet such obliga-
tions.
3. We would cooperate with the city officials in furnishing
inforn,ation to the Federal Governn,ent and other agencies In
order to obtain the greatest possible anlOunt of federal
assistance under existing federal statutes, if available.
4. We will assist the City in drafting and passing legislation,
if needed, to accor:nplish the goals of the City in financing
these in,provements.
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Ur/UlpW, (Y;lh;{r' u ,-jr'!'//P.7{/' ( y;c
Attachment to Resolution No. ~~3
Pag~ '
5. We will make recommendations to the City in the preparation
of bond covenants which will adequately protect the investors but
more nnportantly protect the City in providing a means to
finance future debt obligations when necessary.
6. We will assist the City in preparing documentation and inforn,a-
tion to voters in order to obtain a successful vote at the election.
7. We will constantly keep you advised as to the prevailing and
projected local, regional and national bond market conditions
and proposed offerings of Dmnicipal bonds in order to determine
the best time to market your debt obligations.
8. At the time the City desires to issue bonds, we will rnake a
con,plete analysis of the ;;ources of income available to retire the
indebtedness and prepare a prospectus directed to our obtaining
the greatest nunlber of bids possible and the lowest interest rate
available for your bonds should this means of sale be to the best
advantage of the City.
9. In connection with bonds issued by the City, we will:
A. Cooperate with the municipal bond attorneys of your
choice in drafting the necessary legal proceedings
required to authorize the indebtedness by working as
liaison between the City Attorney and the bond attorneys
to effect the best possible debt instrument. The fee of
said bond attorneys will be paid by the City.
B. We will prepare cornprehensive maturity schedules
designed to fit the incon,e available for the repayment
of the indebtedness to obtain the lowest possible interest
cost on the bonds, provide optin'UlTI marketability, and
to obtain the highest possible rating for the obligations.
C. We will Dlake recommendations concerning the bonds
which will consider the issuance of additional bonds,
prior redeDlption provisions to retire or refllild the
indebtedness, and allow the lowest possible annual tax
levies and/or charge against other revenue sources of
the City.
D.
We will arrange for the printing of bonds on stock with
steel engraved borders ready for execution by the proper
city officials. The cost of said bonds will be paid by the
City.
~
Attachment to Resolution No, 'no
(/;{'/IIW, C///IArif""7!. Ol///f-/'(/' (~;C Page ..-
10. We will assist the City in obtaining a rating from Moody's Investors
Service, Inc. and Standard 8" Poor's Corporation as an aid to
obtaining lower interest rates. Docwnentation for the bond ratings
and fonnal presentation will be accOlnplished by the undersigned.
It is agreed that we will be available at all tinles to answer questions of a
financial nature proposed by city officials. In consideration of the services,
the City agrees to retain the firm~ to handle the bonds rnentioned above and issued
for and on behalf of the City of Wheat Ridge at a charge as established by the
attached schedule showing the recollllnended fees to be charged by the Colorado
Municipal Bond Dealers Association or as an~ended at the time the bonds are
issued, The fees would be payable frOln the proceeds of bonds issued and deli-
vered by the City. As n~entioned in this schedule, it is agreed that the City shall
pay any out-of-pocket expenses, except local travel and COlll1l1unication expenses,
in connection with the authorization and issuance of bonds; however, no expenditure
will be incurred by the firn~ unless previously authorized by the city councilor
your designated representative.
In the event of an "lillsuccessful bond election our fee for services provided to
that date shall be $250.00 plus reimbursernent for all approved out-of-pocket
expenses, including generally, but not exclusively, charges for legal services,
ballot and affidavit preparation, disselnination of voter inforrr1ation, and legal
publication, if such charges are advanced by us. In the event the required
election shall fail to carry, it is agreed that we shall be given the opportunity
of assisting the City through a second election on the same terrns and condi-
tions as mentioned above.
It is recognized that n~arket conditions, as experienced over the past five
years, have indicated that negotiation under certain conditions achieve the
best results for the issuer. Nothing in tbis agreement would preclude a future
agreernent between Hanifen, Imhoff & Sam.ford, Inc. and the City Council, if,
in the opinion of both parties, the taxpayer could be best served by marketing of
the bonds through negotiation between the two parties. In the event any bonds as
conten~plated in this agreement are n~arketed by the undersigned through exclusive
negotiation, we agree to waive the above mentioned fee on bonds so placed, and,
in addition, agree to pay the fee of the n~unicipal bond attorney, bond printing
expenses, and all other expenses relating to the issuance of those bonds.
It would be a pleasure representing the City of Wbeat Ridge in this rnaj or financing
effort.
~
Attachment to Resolution No, ~~3
(/(;/11'/1, (Y//vfrji?; (j"'j/y:./d~ rY;c. Page 5
If the above agreem~ent is satisfactory, please so indicate by signing below.
Respectfully submitted,
HANIFEN, llvlHOFF &: SAMFORD, INC.
By
Walter F. Imhoff
President
WFI:jb
Att.
The above proposal, after due consideration, is hereby accepted this
of , 1974, by the undersigned, acting for and on behalf
City of Wheat Ridge, Colorado.
day
of the
Mayor
ATTEST:
(-"~fu~J
Clerk
(SEAL)
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COLORADO ~lilIJN[C[JPAJL ]BOND
DEALERS ASSOCRATION, liNe.
Attachment to Re,_ Jtion 1\10.
Page 6
323
RECOMMENDED MINIMUM FEES
FOR FINANCIAL ADVISORY OR FISCAL AGENCY SERVICES
It is recommended that financial advi SOt or fiscal agency proposals presented to Colorado municipalities (defined to include
all political subdivisions) be computed in accordance with the schedule of fees listed below It shall be noted that the fees
suggested hereunder are minimum fees and apply to the "average" bond issue. Depending on the complexity of the bond issue
involved, the fee schedule hereunder m"y ne cess"rily be higher
All expenses of the financing program of every kind and character shall be paid by the municipality except that local travel
and communication expenses of all employees of the financial advisor shall be paid by the advisor In the event of an unsuc.
cessful bond election the recommended fee for services provided to that date shall be $250 00 plus reimbursement for all
approved out-of-pocket expenses, inc hiding generally, but not exclusively, charges for legal services ballot and affidavit
preparation, dissemination of voter information, and legal publication, if such charges are advanced by the advisor
BASIC SCHEDULE
Amount of Issue
And Not
More Th"n More Than
$ -0- $ 150,000
150,000 250,000
250,000 350,000
350,000 500,000
500,000 700,000
700,000 1,000,000
1,000,000 1,500,000
1,500,000 5,000,000
5,000,000 10,000,000
10,000,000 20,000,000
20,000,000 No Limit
Recommended
Minimum Fee Schedule
$ 1,725
1,725 plus $8.65 per $1,000
for ,,11 over $150,000
2,590 plus $4.60 per $1.000
for all over $250,000
3,050 plus $2 30 per $1,000
for "II over $350,000
3,395 plus $2.07 per $1,000
for all over $500,000
3,809 plus $1.72 per $1,000
for ,,11 over $700,000
4,325 plus $1.15 per $1,000
for all over $1,000,000
4,900 plus $0 80 per $1.000
for all over $1,500,000
7,700 plus $0,58 per $1,000
for "II over $5,000,000
10,600 plus $0,43 per $1,000
for all over $10,000,000
14,900 plus $0.29 per $1,000
for all over $20,000,000
Supplemental Fees for Various Conditions (In calculating supplemental fees the total supplemental fee shall not exceed the
recommended minimum basic schedule by more than 50%)
A. Revenue Bonds, Special Assessments and or Advance Refunding Bonds
The recommended minimum fee for bonds in this category, issued in a single installment, shall be
the amount as computed from the Basic Schedule plus 25%.
B. Multiple Installments
When an authorized bond issue is sold in multiple installments the recommended fee shall be 80%
of the basic schedule applied on each installment as if each were a separate bond issue
~
I ReVised as
C
Federal or State Subsidies, Loans or Guarantees
Whenever an application for a loan, subsidy or guarantee is prepared by the advisor, the fee shall
be 150~~ of the basic schedule
of 5-10-73,