HomeMy WebLinkAbout1974-15 CRA
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RESOLUTION NO. 74-15
A RESOLUTION OF THE COMMUNITY REDEVELOP}ŒNT
AGENCY OF THE CITY OF SANTA ANA APPROVING AN
AGREEMENT OF EMPLOYMENT WITH THE LAW FIRM OF
€):"Me.I¥ehÿ & MYERS TO PROVIDE BOND COUNSEL
SERVICES FOR THE COMMUNITY REDEVELOPMENT AGENCY
WHEREAS, the Community Redevelopment Agency of the
City of Santa Ana (hereinafter referred to as "Agency")
requires the service of bond counsel for the purpose of
drafting documents, rendering legal advice, legal opinions
and examining all proceedings in the process of the issu-
ance of tax allocation bonds for the Redevelopment Agency
to carry out the Redevelopment Project; and
WHEREAS, the "Agency" desires to retain the services
of the law firm of O'Melveny & Myers to render bond counsel
services to the "Agency"; and
WHEREAS, O'Melveny & Myers represent that they are
authorized and qualified to provide such services for the
"Agency".
NOW, THEREFORE, BE IT RESOLVED that the Community Redev-
elopment Agency of the City of Santa Ana hereby approves the
Agreement of Employment of O'Melveny & Myers for bond counsel
services which agreement is attached hereto and referred to
as Exhibit "A" and authorizes the chairman of the Agency to
execute said Agreement on behalf of the "Agency".
APPROVED AND ADOPTED this .1!.Þ day of
ATTEST:
October
, 1974.
~. ...~ ~ lU.~
, Florence I. Ma one,
. Recording Secretary
APPRQVED AS TO LEGAL FORM:
I hereby certify that the foregoing Resolution was duly
adopted by the Community Redevelopment Agency of the City of
Santa Ana, California, at a meeting thereof, held on the
9th day of October , 1974, by the following vote,
to wit:
AYES,
MEMBERS:
Yamamoto, Garthe, Patterson, Evans
NOES,
MEMBERS:
None
ABSENT,
MEMBE4~~7
Richard Gob11rsch, Executive Director
-~~A( ~-~
Florence I. Ma one, Record1ng Secretary
ATTEST:
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AGREEMENT OF EMPLOYMENT
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THIS AGREEMENT is made this ~ day of
October
, 1974, by and between the COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, a public
corporation (hereinafter sometimes called the "Agency"),
.and O'MELVENY &MYEn$, a co-partnership, of Los Angeles,
California (hereinafter sometimes called the "AttOrneys").
The parties mutually agree as follows:
1.
In connection with the proposed issuance
of tax allocation bonds by the Agency (the term "bonds"
as used herein shall include notes and other evidences of
indebtedness of the Agency) for the financing of all or
a portion of the cost of the Santa Ana Re~evelopment
Project, the Agency hereby employs the Attorneys to
furnish, and the Attorneys hereby agree to furnish,
legal services in connection with the issuance and sale
EXHIBI'X' "A"
of such bonds consisting of the following:
(a)
Drafting the resolution of the Agency
providing for the issuance of the bonds, the notice
inviting bids and the appropriate closing documents;
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(b)
Advice and instructions regarding the
authorization, sale and delivery of the bonds;
(c)
Examination of all proceedings (a transcript
of which is to be furnished to the Attorneys by the Agency)
related to the sale and delivery of the bonds;
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Issuance of the Attorneys' customary
legal opinion on the bonds to the Agency and to the
purchaser of the bonds.
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2.
For the services rendered under Section 1,
the Agency agrees to pay the Attorneys a fee determined
by applying the following rates to the total principal
amoUnt of the bonds issued and sold:
Amount
Rate
$150,000 to $1,000,000
$1,500 plus $2.50 per thousand
on excess over $150,000
$1,000,000 to $5,000,000
$3,625 plus $1.50 per thousand
on excess over $1,000,000
$5øOOO,000 to $10,000,000
$9,625 plus 75Ø per thousand
on excess over $5,000,000
Such fee is payable following the delivery of
the bonds to the purchaser thereof and the issuance of
the Attorneys' approving opinion thereon.
In the event
that the Attorneys, a~ the request of the Agency, commence
services and for any reason the bonds are not issued within
one year after such commencement, or if the proceedings
are abandoned, the Attorneys shall be paid a reasonable
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fee for any services performed hereunder, the amount of
such fee to be suggested by the 'Attorneys but to be subject
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to the approval and concurrence of the Agency.
In the
event the bonds a,re thereafter issued, the amount of such
fee will be credited against the fee due following such
issuance computed under the foregoing schedule.
3. 'In addition to the fee provided in Section
2, the Attorneys shall be paid a reasonable fee based on
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the time spent in the preparation and filing of any request
for revenue rulings with the Commissioner of Internal
Revenue, in the event that such services become necessary
in order to issue a tax opinion to the Agency and the
purchaser of the bonds.
4.
The Attorneys shall also be reimbursed by
the Agency on periodic statements for any out-of-pocket
expenses incurred by them in the course of such employment,
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including long distance telephone calls, travel at the
Agency's request and similar items, but excluding overhead.
5.
The scope of services to be provided is
only to act as Bond Counsel and does not include litiga-
tion or the rendering of other services or advice not
connected with the issuance and sale of the bonds.
6.
It is understood that you have employed
Stone & Youngberg Municipal Financing Consultants, Inc.
as financial consultants, who will prepare the Official
statement in connection with the issuance and sale of
the bonds and will give advice concerning those terms
of the bond issue and of the sale thereof which, apart
from legality, may affect the marketability of the bonds
at a favorable interest rate.
The Attorneys are to have
no duties regarding any such Official Statement except
to check it in advance of use as to the description of
the bonds and the statements of law pertaining thereto.
7.
It is recognized that the Attorneys may
have clients which may from time to time have interests
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adverse to the Agency or to the City of Santa 'Ana and
that the Attorneys reserve the right .to represent such
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clients in matters not connected with the project or the
issuance and sale of the bonds.
8.
This contract shall be binding upon and
inure to the benefit of said firm of O'Melveny & Myers
as presently constituted or as hereafter reorganized,
provided that the opinion of the successor firm upon
municipal bonds, whether under the same name or other-
wise, is accepted by bond dealers and bond buyers as
readily as the opinion of the firm as presently constituted.
IN WITNESS WHEREOF, as of the date first herein-
above written, the Agency has caused this instrument to
be executed on its behalf and in its name by its duly
authorized officer ~nd attested by its Secretary and
O'Melveny & Myers has caused this instrument to be
executed on its behalf.
COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF SANTA ANA
ATTEST:
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