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HomeMy WebLinkAboutRes 0592 - Financial Advisory Services on Sale of a Bond for New City HallWashington, resolve as follows: Approved as to Form: City Attorney I f CITY OF UKW WASHINGTON RESOLUTION NO. 592 A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH FOSTER AND MARSHALL, INC. FOR FINANCIAL ADVISORY SERVICES CONCERNING THE SALE OF A BOND ISSUE FOR CONSTRUCTION OF A NEW CITY HALL. COUNCIL ACTIONI MEIYPE ETING I DATE I AGENITi UR ACTION 1 NOW, THEREFORE, the City Council of the City of Tukwila, That the Mayor of the City of Tukwila is hereby authorized to execute an agreement with Foster and Marshall, Inc. for financial advisory services concerning the sale of a bond issue for construction of a new city hall. Agreement attached as reference. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a regular meeting thereof this 5th day of July 1977 Mayor I✓ ATTEST: MEMBERS NEW YORK STOCK EXCHANGE, INC. AMERICAN STOCK EXCHANGE. INC. PACIFIC STOCK EXCHANGE. INC. MIDWEST STOCK EXCHANGE. INC. CHICAGO BOARD OPTIONS EXCHANGE Financial Advisory Services COUNCIL ACTON( IAEECBGI A,E°d I_d T(PE DA if I ACI:C 1 R FOSTER MARSHALL INC. INVESTMENT BANKERS AND BROKERS 208 COLUMBIA STREET SEATTLE, WASHINGTON 98104 (206) 344 3500 June 20, 1977 Mayor and Members of The City Council City of Tukwila 14475 59th Avenue South Tukwila, Washington 98168 RE: Agreement for Financial Advisory Services; Limited Tax General Obligation Bonds, 1977 Estimated $1,250,000 tc CA) q 71 ti 7 S, RIV 1 /51gcI p I 1 OF 1 1 IN THE1 PRINCI I PAL CITIES OF HE PACIFI NORT4WEST AND ALA4KA i f I I Dear Mayor Bauch and Members of the Council: We are pleased to present this proposal to serve as financial consultants to the City of Tukwila and in that capacity, to assist you in the marketing of the $1,250,000 bond issue (or such other amount as may be decided upon) now proposed to be approved by the City Council for construction of a new City Hall. Members of the City Council, after careful consideration of the City's requirements with regard to the proposed $1,250,000 Limited Tax General Obligation bond issue, find it desirable to obtain advisory assistance on the preparation of information for the sale of bonds. The Council seeks to obtain the services of competent persons skilled in municipal financing to advise the Council in financial matters and has, therefore, acted to obtain such advisory services. In accordance with this, and taking into consideration the stated qualifications of our firm, we hereby propose to serve as financial advisors to the City of Tukwila and are willing to under- take and perform services which will include, but are not limited to, the following: 1. Assistance to the Mayor, City Council, City Treasurer, staff, local attorney, bond attorney, and all other consultants with regard to: a. Review of bond issue proposition to insure that, if approved by the City Council, bonds can be issued. Mayor and Members of City Council City of Tukwila June 20, 1977 Page Two b. Providing accurate information to the City concerning the financing plans of the City, required tax levies, and such other information as requested. 2. Assuming the proposed bond issue is approved by the City Council, we will then assume responsibility for obtaining the authorized funds at the lowest possible interest cost to the City, which will include: a. The selection of a bond sale date, taking into considera- tion the current market conditions, the need for funds, the construction schedule and other factors pertinent to the sale of bonds. b. Provide your bond attorney with all necessary financial information to be included in the Bond Resolution and Notice of Bond Sale which is to include dating of bonds, maturity schedules, call provisions, etc. c. Accumulation of all necessary financial information and economic statistics to be included in the bond offering prospectus. d. Transmission of complete information to both bond rating services (Standard Poor's and Moody's Investors Service) to be used as a rating for the District's bonds should the City find it desirable. Any rating service fee would be paid by the City. e. Prior to the bond sale date (approximately two weeks), we will distribute a professionally printed bond offering prospectus. In addition to sending copies to investment bankers and commercial banks who bid on the bonds, we would distribute copies to institutional buyers such as pension funds, trust funds, fire and casualty companies, life insurance companies and others who are the ultimate holders of such securities. This is done to develop the greatest possible pre -sale interest inthe bond offering, which will have a favorable effect on the interest rate at the time of sale. f. Attend the bond sale and review the bonds received and make recommendations to the City as to the most favorable bid. Mayor and Members of City Council City of Tukwila June 20, 1977 Page Three RCM /mv g. Once bonds are sold, we will provide assistance in the printing of bonds and assist with arrangements for the bond delivery. h. At the request of the City Treasurer, we will provide recommendations for the investment of bond proceeds which will maximize interest return, taking into consideration the construction pay -out schedule established. Fee For Services We hereby propose to serve as financial consultants on the proposed $1,250,000 Limited Tax General Obligation bond issue, and will provide such services as detailed above and will be entitled to a fee of $2,100.00. Any fee for rating services, prospectus printing, bond printing, attorney's fees and publication of Notice of Sale, however, will be paid by the City. Foster F, Marshall Inc:. maintains the right to bid on the proposed bond issue /s sold at such advertised sale. Foster Marshall Inc., as financial advisors to the City of Tukwila on the proposed $1,250,000 bond issue, agrees to commence performance of the above described services immediately upon acceptance of this agreement. Respectfully submitted, FQS SEALL INC Roland C. McLaughlin Vice President Public Finance Department ACCEPTED this 45 day of By: ev hi Qit/ A� •gaee Mayor CITY OF TUKWILA 1977.