HomeMy WebLinkAboutContract 18475 ^ '
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zwvoo FORT WORTH,TFXtS 76101
Ureh 19, 1991
CITY SECRETARY
-4 _ I CO.NTRAQZ
%%I-ity Of Foort Worth N%4z
1000 Throckmorton Street
Fort Worth, Texas 76102
Re so City of Fort Worth, Texas
Certificates of Obilgation or Boridz
Dear Mr. Ivory:
This letter i' s submitted to state ouz fees and describe the
legal services of the undersigned law f.L.rmz ( "bond counse.1") :tn
performing tne dut.'es of bond couno.�al for the City of Fort Worth
(the "City" ) wi`A.-h reference to issuance of the City's Pro,41
Generally,, we -will per-tc>
0.. usaal and necessary Aegal
services as bond counsel ALTI C;+.-.ion with the aut.horization,
issuance, and delivery of the Certificates of Obligation or Bonds.
and perform the other necessary legal services wi."C.h refer*:-nice to
thie! authorization, issudncic-1.1, and delivery of the- Certificates of
1. Preparc,* all resolutions , ordinances , and other
instru ts pursuant to which the Certificates of
Obligat...,,�n or Bonds will be authorizad, vot-cad, it
necessary, issued, delivered, and secured,, In
cooperation and upon consultation with the City
Council ,, their consultant-a and other legal and
financial advisors, and consultants of the City,
2 ,, Attend meetings of the City Council with reference
to the authorization and issuanc-.n! of the
Certificates of Obl-'...9atlon or Sonds to the extent
rt.qui.red or requested..
3 . O.'_'*.00perate with the City Council and all other
interested parties in tv.-.he .5-ale L,)f the Certi.-Eicates
of ObI igation or Bonds to -the purchasers .
4 , Supervise the execution of the Certificates of
Obligation or Bonds and the delivery tlneripof to
the purchasers .
OFFIML I- ECORG I
UJIT UCRUARY
'40ATH, TEX*
COontInued, Page 2
March 19f 1991
Mr. David Ivory, City Mar.ag<*r
Fort Worth, Texas 76102
'tom w
5 It When so delivered, give our ap,proving apt.a.lon
covering the validity of the Certificates of
Y .4-
Obligation or Bonds and the exemption *f Interest
_
thereon from federal incoine taxes , i A. being under-
stood th-at the approvin inion 'virill be fully
acceptable nationally in -regular con,,merci,,:tI invest-"
ment banking bond marketing ezrhannels.
The fees coverivig the lagal. zervi._-,.9s of bond counsel for the
C."'ertificates of ObliVation o Bonds shall be calculated as fol.-
There wiII be a minimum fee of $10,000 per J_ssue.., of
Certit':1
le-att es of Obligation or Bonds* for Certificatrzs
or
of Obliga .on Bconds delivered in an aggregate
principal amount in exce-.%s of $10, 000, 010, the fee
shall be calculated at a rate of $1 00 per $1,000 of
the princl'pal. amount of CertiflLcates of Obi Lgation or
Bonds delivered.
Legal fe,.-s for refund-ings,, if any, shall btj,� negotiated with the
Clity in reference to "the additi<,rial legal work inc urra...d- in
sstructuri'.ng the transaction to comply with federal and tate law.
Gur firms would share 'in tha aforesaid legal fees on a 50-5Co
We would expect to be r,I*..tmbxxrs9d for onr actual out-of.
pocket expenses reasonably and necsssaril,.y incurred iri connection
with the author,,L zat ion, issuance, and delivery of such
Cartlfi-.,ate s of Obligation or Bonds, i .e, traval outsida, t1j.-te Fort
Veforth,-Dallas area, photocopies, courier, Form 8038-G filing fee
and httorney General rs filing fee,
V)e foregc. nc ludo
legal services as bona counsel do nut I
any direct reopc.... :_bility for the "di aQlos-urt-, obligations " cwe'd
to -the investing public under the federal securi..-ties Iaws ar.d the
n
3rious statc% securrities laws and th.,Is is to stat%p that oiir
ei,.gaga,riiant .i.s not that broad. W+-,, wi-1-1. not b(,.-4 for the
preparation of any Off icial Sta-'6t.-_emeln1t dnd ca-ill not assume any
responsibility with respect theret'-.o nor undertane independently
to verify any of the information therein, t�xcept til-tat, in our
capacl' ,,ty as bond counsel,. we vJ.11 veview rar.icus s-tatements in
any Official Statement to verify that such statements conform to
tl,,N,e Provi' sio-r-s. of the iega.]. instruments and document therein
described.
Our feeas and expenses will be payable at the tize of the
c1eEiLvery of and payment for such of Obligation or
Bonds, with our fees being wholly contingent upon actual delivermyr
of such Certificates of ObUiLgatIa-i or Bonds . oLr feets
manse of bond counsel services fo-z- "on of" J-3suers of the
Ci.ty (e. g. , housing finance->.. or -irtidustrALal d-.avelopment corpora-UP
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those s and. / r ,tions) F Ai T i M TMe y •
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We understand that tha term of t .I s arkan eme,nt
.r_ �
ref l e .ted be l ow, and may be renewed t erase-Ater 'n. a y0arboto
basis. ► a agreement the parties. � �S ax-a II
be cancelled at any time by any of the parties uport thin
uT itte =
'
{f for such cancellation,
if the arrangement proposed hexein is satxs f act#r-f
indicate acceptance hereof by signing the ae.% ta-ncq -laws low.:
and return one copy of this letter to each of the uncle rs.A.Agn d• II
:4. The fees discussed horein do not ap.p.-ly to. litigation ;work in II
reference to the Certificates of Obligation of Zonds. '1i fps II
in respect to litigation shall be agreed upon Between the City, II
and the undersigned. .
Respectfuily s�.�bmit•ted� II
M CAL l PARKHURST HORTON F'E1Jx I• HART -kL �LM II
f .fr II
Byz
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ACCEPTED CEPTED H I S THE DAY or „,, ._, . ......_...., ....r �
ATTEST: CITY OF I"OR rWORTH II
M -000 By 3 � �
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City Secretary p,,,-s+C1tv a gee
APPROVED AS TO 'FORK LEGALITY
OF
Deputy City Attorney
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t A 9 i
Mayor and Col.Anct
1 _P _-0jaw A&jAVW1a- ................
DAT f REPPRENCE SUBJECT., CONTRACT R BOND COUNSEL t�- `'
3-26-91 .* CAL L ARMURS
C-12784
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REo0Mt END t ION:
i s recor vended thet the City Council authorize the 0i-._y Manager to ex-c -..ute
the attact-ed agreement providing for the performance of the duties of uo d
coonsel by the law firs of Mc Call , Parkhurst Horton and Kelly, -art
Halloran with reference to the issuance of Botts or Cortificat.es of ObUgaflonf
en:ever debt instr urnents are issued by the City of Fort Worth, the leqal
complexities of such transactions require outside legal co n e-l: Aio•h
specializes in these matters. Since 1961 the City has recurringly engaged t.-ate
firm of Mc Call , Parkhurst 8 florto*t to Rerf orm thi,. service on a. per debt
issuance basis, In recognition of the regy l a r and rt� i n-oi ng need for le a•1
advice and service, the staff believes it is in the hest interest of the City
to enter i nflo a contract for the provision of this service can• an on ovag basis
and' th-at the s•ery i oc, be performed under a co-bond counsel agreement with t-he
firs of He Ca l i r ark.hurst & Horton and Kelly, Hart & Hallman (coflectively
referred to as `°b ad counsel") , Professional s�ry 1 Ces such as bond coun-se l are .
exempt from the stag: statutes requi ri r,9 %o mpeti tive bidding.
Attached is a copy of the proposed agreement 1wh i ch provides for fjond co•u-n-sol
services as they relate to t he issuarce of Bonds and Cer-t i f i cater of
Obligations by the City of Fore.: Worth. Bond 1_-.ounsel services. for "on betvalf
of" issuers of the C t;; (e.g., hous i i riance or i ndus t i i a 1 deve."opine r t
corporationsi will be s rured on a case—by-case basis. Under the proposer
agreement, fees paid by the City �*111 bt. shared by the two firs on a 50-50
basis. The foe structure is as fol loaf;iAr
There will be a ot•i mimum fee of $10,000 per i ssuw of '� rti fi sates of
Obligations or go-ids q, for .Cent i f i c:a tes of b l i ga.t i oll or Soo:"ds
delivered in an aggregate pri nci a.1 amount on excess of $10,000,000
the fee shall calculated t rate ..�f $1 .00 e r $1,000 of tct a b� al ul a d t a � p R t
pri nc i pa 1 amount of Certificates of Ob l i gat i on or Bonds deli vex d.
Fees dre pald only when an issue of deft occurs and are payable out of the
• proceeds of the sale of debt. The ag eevend is for a period of five years with
prov i s l on for subsequ-ent one-ypa•r renewals upon agreement by the par-ties, an4
is r.ance l abl a by any of the parties on thi ;y days written notice, with flo
pent 1ty clause. �
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