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HomeMy WebLinkAbout79-084KLG:ar 5/30/79 RESOLUTION NO. 79- 84 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING EXECUTION OF AN AGREEMENT FOR BOND COUNSEL SERVICE IN CONNECTION WITH THE PROPOSED ISSUANCE AND SALE OF MORTGAGE AND REVENUE BONDS PURSUANT TO THE MARKS-FORAN RESIDENTIAL REHABILITATION ACT OF 1974. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA: That the Mayor is hereby authorized and directed to execute, on behalf of said City, that certain "Agreement re Bond Counsel Services" form dated 5/30/79, a copy of which is on file in the office of the Clerk of the Council, to which copy reference is hereby made for full particulars. ADOPTED this vote: 4th day of June, 1979, by the following AYES: COUNCILMEN: Bricken, Griset, Luxembourger, Serrato~ Ward NOES: COUNCILMEN: Markel, Yamamoto ABSENT: COUNCILMEN: None ACT~G CLERK OF THE COUNCIL ~ % %~_,/ APPROVED AS TO FORM: KEITH L. GOW CITY ATTORNEY KLG:ar 5/30/79 AGREEMENT RE BOND COUNSEL SERVICES THIS AGREEMENT is made and entered into this ~-~C~ day of June, 1979, by and between THE CITY OF SANTA ANA, a municipal corporation of the State of California, (herein "City") and STRADLING, YOCCA, CARLSON & RAUTH, a profes- sional corporation (herein "Bond Counsel"). RECITALS A. City is considering the possible issuance and sale of mortgage revenue bonds pursuant to the Marks-Foran Resi- dential Rehabilitation Act of 1974 to finance residential rehabilitation as authorized by said act, and, in connection therewith, will require the services of attorneys qualified to act as bond counsel. B. Bond Counsel represents that it is ready, willing and able to provide the legal services which will be re- quired by City in connection with the issuance of such mortgage revenue bonds. AGREEMENT NOW, THEREFORE, the parties mutually agree as follows: Section 1. City hereby employs Bond Counsel, and Bond Counsel hereby accepts such employment, to represent City in connection with the authorization, issuance, and sale of bonds of City to finance residential rehabilitation under the Marks-Foran Residential Rehabilitation Act of 1974. Section 2. Such representation by Bond Counsel shall include, but shall not be limited to, general advice to and consultation with City, its attorney, staff, consultants, underwriter, underwriter's counsel, and financial institu- tions; drafting of all resolutions, notices, and other doc- uments required: (a) for the establishment of the City's residential rehabilitation program, (b) for the authoriza- tion and issuance of the bonds; and (c) for the implementa- tion of the City's residential rehabilitation program; examination of the transcript of the proceedings and of the official statement; and issuance of a legal approving opinion to the purchasers of the bonds. Section 3. Bond Counsel's fee for the aforesaid legal services will be based upon the amount of bonds authorized and sold in accordance with the Total Amount of Bonds Authorized $10 million or less In excess of $10 million following schedule: Fee .4 of 1%, but in no event less than $20,000 $40,000 plus .2 of 1% of the excess over $10 million Said fee shall be payable from the proceeds of the bond sale. In the event that bonds are not issued Bond Counsel will be paid a reasonable fee, to be mutually agreed upon, based upon the hourly rates of the attorneys in the firm undertaking the work prior to abandonment. In addition to the above fees, Bond Counsel will be reimbursed for all out- of-pocket expenses incurred in connection with long distance telephone calls, telegrams, outside messenger service, travel at the request of the City outside of Southern Cal- ifornia, and similar items. In the event that the under- writer or successful bidder for the bond requests that a supplemental legal approving opinion be provided by the City (except underwriter's counsel), the aforesaid fee will be reduced by an amount equivalent to one-third thereof. Section 4. It is understood that the aforesaid fee -2- does not include representation of the City in connection with litigation. However, Bond Counsel will represent City, at the request of City, be mutually agreed upon. IN WITNESS WHEREOF, agreement written. in any such litigation at a fee to the parties hereto have caused this to be executed as of the date and year first above THE CITY OF SANTA ANA, a municipal corporation of the State of California ATTEST: STRADLING, YOCCA, CARLSON & RAUTH, a professional corporation APPROVED AS TO FORM: KEITH L. GOW CITY ATTORNEY -3-