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HomeMy WebLinkAboutContract 37197-A1 CITY SECRETARY ICONTRACT NO. FIRST AMENDMENT TO CITY SECRETARY CONTRACT NUMBER 37197 FINANCIAL ADVISORY AGREEMENT This FIRST AMENDMENT TO CITY SECRETARY CONTRACT NO. 37197 ("First Amendment") is made and entered into by and between the City of Fort Worth, a home-rule municipal corporation of the State of Texas (the "City" or "Issuer"), acting by and through its duly authorized Assistant City Manager, and First Southwest Company ("FSC"), a Delaware corporation, acting by and through its duly authorized Chairman and Chief Executive Officer. WHEREAS, the City and FSC are parties to an agreement for professional independent financial advisor services associated with the authorization, sale, issuance and delivery of indebtedness by the Issuer, the same being City of Fort Worth City Secretary Contract No. 37197 ("Contract); and WHEREAS, the Contract provides for an initial three-year term and two, one- year renewal options; and WHEREAS, the second renewal option of the Contract expires on July 31, 2012; and WHEREAS, the parties wish to amend the Contract and extend the agreement for a third one-year renewal period to afford the City adequate opportunity to issue a new Request for Qualifications, assess responses, and secure a new long-term agreement. NOW, THEREFORE, City and FSC do mutually covenant and agree as follows: I. That Fort Worth City Secretary Contract No. 37197 is amended to add a new Section IIA to be titled"Third Renewal of Agreement" and to read as follows: OFFICIAL RECORD SECTION IIA CITY SECRETARY THIRD RENEWAL OF AGREEMENT FT. WORTH, TX Notwithstanding anything herein to the contrary, Issuer and FSC hereby agree to renew and extend this Agreement (also known as Fort First Amendment to CSC 37197 Page 1 of 2 00-10-12 PO4 : 06 IN Worth City Secretary Contract 37197) for a Third Renewal Period of one (1) year, beginning on August 1, 2012, and ending July 31, 2013, unless terminated earlier in accordance with Section III. II. All other terms and provisions of City Secretary Contract 37197 shall remain in full force and effect throughout the Third Renewal Period unless specifically amended herein. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment in Fort Worth, Tarrant County, Texas, this --day of , 2012. CITY OF FORT WORTH FIRST SOUTHWEST COMPANY l I1111 A. Feinberg ssistant City Manager Chairman and CEO APPROVED AS TO FORM D G 71TY De Ws C. c lroy Assistant City Attorney M&C Q^2�w a� %:On a ATTEST: p' 0O0000 0600 'SA° ¢00 Mary J. Ka r o�"� City Secret �� ° o o d o o p �°�000000 �.qd aan���Q 5°4 OFFICIAL RECORD CITY SECRETARY FT',WORTH,TX First Amendment to CSC 37197 Page 2 of 2 M&C Review Page 1 of 2 Official site of*he Citv of Fort Voith, Texas FORTN ORTII CITY COUNCILAGENDA ».r»m�„-��a::n ._ z;._,:.r, .,,�+M:s ,., .«�.;...,�„�.;, , .,:,s _,„ „„; ,..,awm y..�.,,. x.;a�.�v..::� r_r=�sra:•.., e, ,._�v.,. ,w�..r,i,.�,, r,e:eem COUNCIL ACTION: Approved on 7/24/2012 DATE: 7/24/2012 REFERENCE NO.: **C-25750 LOG NAME: 1312ADVISORY CODE: C TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: Authorize Execution of Amendments to City Secretary Contract Nos. 37196, 37197, 37198, and 37239 with First Southwest Asset Management, Inc., First Southwest Company, and Estrada Hinojosa & Company, Inc., to Provide for Additional One-Year Renewals (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council authorize the execution of amendments to City Secretary Contract Nos. 37196, 37197, 37198, and 37239 with First Southwest Asset Management, Inc., First Southwest Company, and Estrada Hinojosa & Company, Inc., to provide for additional one-year renewals. DISCUSSION: On July 24, 2007, the City Council approved M&C C-22260, which authorized execution of necessary and related Agreements for financial advisory, continuing disclosure, and arbitrage services, with each Agreement having an initial three-year term and two, one-year renewal options. In accordance with that authority, the City entered into City Secretary Contract Nos. 37196 (with First Southwest Asset Management, Inc.) 37197 (with First Southwest Company), 37198 (with FSC Disclosure Services, a division of First Southwest Company), and 37239 (with Estrada Hinojosa & Company, Inc). The second renewal period for each of those Agreements will expire July 31, 2012. Approval of this Mayor and Council Communication would authorize the City Manager to amend those Agreements to provide for an additional one-year renewal of each contract. Renewing the Agreements for an additional year will ensure continuity as the City enters its traditional debt-issuance season. Staff will use this additional year to put these services out for bid and return to Council at a later date for approval of new Agreements. These companies have satisfactorily served as the City's co-financial advisors for well over a decade. Staff is recommending that the City continue its relationships with First Southwest Company as its lead financial advisor and Estrada Hinojosa, a M/WBE firm, as co-financial advisor and with First Southwest's disclosure subsidiary and arbitrage affiliate. During the renewal period all other contractual terms, including the fee structure, would remain the same as they are in the existing Agreements. FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that funds required to pay financial advisory fees will be available from proceeds of bond sales, appropriate debt service funds, and/or appropriate operating funds. http://apps.cfwnet.org/council_packet/mc_review.asp?ID=17122&councildate=7/24/2012 8/10/2012 M&C Review Page 2 of 2 TO Fund/Account/Centers FROM Fund/Account/Centers Submitted for City Manager's Office by: Susan Alanis (8180) Originating Department Head: Lena Ellis (8517) Additional Information Contact: ,Janes Mauldin (2438) ATTACHMENTS http://apps.cfwnet.org/council_packet/mc—review.asp?ID=l 7122&councildate=7/24/2012 8/10/2012