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HomeMy WebLinkAboutResolutions 84-129 N.C.S. 06/18/1984I~eSOIUtlOr1 NO. 84-129 .~: ~. S: of the City of Petaluma,, California. APPOINT MANAGING UNDERWRITER CONSENT TO NEGOTIATED PURCHASE OF ASSESSMENT DISTRICT #14 BONDS WHEREAS, this Council proposes to undertake proceedings pursuant to appropriate special assessment and assessment bond acts for the acquisition, construction and financing of public improvements in said City; and, WHEREAS, the public interest .and general welfare will be served by appointing managing underwriter for the purchase of bonds to be issued to represent the unpaid assessments therein: NOW, THEREFORE, BE IT RESOLVED: 1. The City Council hereby appoints Wulff, Hansen & Co. , San Francisco, California, as Managing Underwriter, to structure, coordinate, investigate, prepare a bond statement, and to submit to this Council a proposal to purchase all of the improvement bonds to be issued in the above referenced assessment district. 2. The City Council makes this appointment with the understanding that the Managing Underwriter must commit considerable time and expense to prepare this bond issue for public offering on a fully contingent basis and therefore, the Managing Underwriter requires assurances that said time and expense may be recovered in the process of underwriting the bond issue. Reso. 84-129 NCS Page 1 of 2 3. The City Council recognizes,` additionally,. that the Managing Underwriter accepts as a condition of award of sale of the bonds (at the 'appropriate time) full responsibility for due diligence, investigation and disclosure relative to this bond issue. 4. Should the City Council be advised by staff and a majority of the property owners- within the assessment district that the Managing Underwriter is not satisfactorily fulfilling the above listed responsibilities and/or that a satisfactory purchase proposal cannot be developed, the City Council may discontinue the services of Wulff, Hansen & Go. , as Managing Underwriter. 5. This appointment is conditioned upon the successful consummation of the assessment district proceedings and should said proceedings for any reason fail to be successfully consummated, there shall be no obligation on the part of the City to Wulff, Hansen & Co. PAT Under the power and authority conferred upon this Council by the Charter of said City. I hereby certify the foregoing Resolution was introduced and adopted by the A v to i Council of the City of Petaluma at a (Regular) (~~of~Efl~XQf~i~~l{1 meeting on the ............... 18th ---._.._. day ofJ'.une.-------•------------------------------------------- 1s.8~., by the ` following vote: .. .. ..:::...........::. AYES: Battaglia., Bond, Cavanagh, Bal haw, Vice Mayor Harberson,~yor Mattei NOES: None ABSENT: P ,. ATTEST ~ City Clerk 404-02 Mayor _. -_ Council File.. ...... . 84-129'~~NCS Pa e 2 o:f 2+ Exhi bi t o Form.GA,2 7/81 Res. No ................................. g c', Jvu ~ s r~q . IO f3 ~UL~F, FANS E'N ~c G0. ESTABLI9MED 1931• 1'NV.ESTMENT SECU.RtT,IES 20:1 SANSOM;E ~ST,REET,'7TN FLOOR SAN f=RANGISC;O 94104 ~4f5~ 42.1-8900. iKay 8, 1984 Municipal Financing Special .Assessment and Revenue Bonds County City Special district GommerCial Industrial Residential Hospital Public Street opening sewer water Landscaping .Sidewalks c~ros cutters Ughting Drainag® Traffic control Parking Meters Pedestrlal, malls Paiks Playground Recreation Refinancing Reriovador- .Dredging. Reclamation ~Ir°. John L: Scharer City Manager City of Pe'tal,uma Post: ;and. ;Englsh Streets Petalluma,. 'California 9495`2 . Re:: Poss-b a conflict of: ~nter.est disclosure and totlal r,emuner•aton disclosure. F'inanciaTConsultant change t'o Manag.ing Under-writer/Purchaser of Parking Assessment B`onds., City,-.,of Petaluma Parking Assessment Bonds, ~~ y _'~ - ' Z ~ ~~ Dear John c ~ ' '~ j' ~'~t 1. r 4 ~~ As per Section ~86~~.,;~of ~,t Wulff`, Hansen & Co<. ~.s; regtr~:-~;1 Petal:um:a. of- a possiti;le~ care created when t'he capac'it~ c5~;~' changed from f i~nanc i al eon~ul above referenced 'bont3s -to pure he Government Code, 'd 'to notify the City of l.ic$ of interest being w~ r;~~ H'a-n e n & C o, i s ~~~ ~gt~~~,,the. City on the. y~a~:fir c~~~-'~ame., • ~' ~ti' T `~.. Further, we are required, Ito n_otif'y~ ~ e ~ity of the- source and. anticipated amount..° of al,~emun~eration to Wulff.,. 'H°a'nsen _& C;o.; wit'h r`es,~pect~. t`'o our. cap.aci~t'i'es as ;consultant, and as~ purchaser 'o:f-`ahe bonds. We expect to :negota a our consultant- fee,, downward to _~®®~ o;f •the .pr°oject co t as def i.ned in our agreement accepted November 2~4, 1.98:0, 'payable from and cont.inge`nt upon s.a1e of she bonds. Addition- .ally, we antc;i.pate a. bona discount' of 5~ which will be the total und'e:rwrter''.s sparead -between cost of bonds. and sale price to rives:to'r,s .before expenses.. Expemses ;;nc;lude, but are not limited 'to, commissions to sa e,'s~perso,n:net, un.derwrter's council fees, st,ru~cturng, coordinating, investigating, and prep°aring a bond statement, and submission to the Courtc~l oaf. a 'p:urchase proposal to pure a e all. of the asses meat,bonds to beissued in the above referenced assessment district. NEA~RLX HALF A CENTURY HELPING GALIFORNfANS E~XiI'lbl't .A t;0 84:-;129 ,N CS :'~ ~ . ,,. - J . S'char~er City of- Petaluma May 8', 1984 _ Page Two Wulff., Hansen & Co. will. acce:ga full. r`esp:onsiblit.y for the d`ue dil.ge:nce nv':es~tgation ;a.nd `asc,l"o~s~ure liability relative to this bond; issue a'nd ,.all c'ompen~sa.ton to Wulff, Hansen i`s contingen.t~.upon sale of. ~tYe bonds. As. per Section 536:91 a~;~the Goyer;nmen't Code, we acre required to gain the City s;. co~~en-wand acknowledgement of the above disclosures Sho_ ul$:~'~h~' above ,me:e;t w~i th your approval , please so signify wY`fih,: your ~:~ndorsement '.below, and' return an or ig i na1 copy to us . ~~ ~ '~' •~ :, F,~ '-, -< `, :~ ~ S;ncer~ely, ,. ` ~ i ~.~ ," ll~~?~G~r~.. y ~ ,. 1~~rk~ ssman ~.:. Vice.-~'i~:.~' den t. ~, ~„ ~~~, MP/p t ~~.: 0 n b e h a-1 f o.f t h e~ C ty .o-f. P°e t a;l u`m a °,.~, 3 have read , a n.d acknowledge receipt of the. above- d'isclosure~s~-e Dated John Scharer, City, Mana9;er i / -. M ~ i ~ ~ _~ ~ ~ ~ ~ s ' i , f , { F ~ ~ . -' i j t ~ i ~ ~ ~ ~ ~ ~ I 6 Exhibit A to 84=-12:9 NGS