HomeMy WebLinkAboutR-1993-180 t •
RESOLUTION NO. 1 20-9 3
A RESOLUTION OF THE CITY OF DANIA, FLORIDA, APPROVING
AND ACCEPTING FIRST MUNICIPAL LOAN COUNCIL'S CAPITAL
FINANCING ASSISTANCE PROGRAM TO PROVIDE THE FINANCING
FOR THE CONSTRUCTION OF THE CITY FISHING PIER WHICH
INCLUDES THE PROPOSAL OF WILLIAM R. HOUGH & CO. TO
SERVE AS INVESTMENT BANKER TO THE CITY AND THE
PROPOSAL OF FOLEY & LARDNER TO SERVE AS BOND i
COUNSEL; AND PROVIDING FOR AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA,
FLORIDA:
S "typ tio�1. That First Municipal Loan Counsel's Capital Financing Assistance
Program to provide the financing for the construction of the city fishing pier which
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includes the proposal of William R Hough 8 Co. to serve as investment banker to the city
erve as bond c
and the proposal of Foley & Lardner to s ounsel, all as set forth in
composite Exhibit "A" attached hereto and made a part hereof, is hereby approved and
accepted and the appropriate city officials are hereby authorized and directed to execute
all agree
ments and other documents necessary to finalize the acceptance of said
proposals.
lion 2• That this resolution shall be in force and take effect immediately
upon its passage and adoption.
PASSED and ADOPTED this 2 6 t h day of October 1993•
AYOR - COMMISSI N R
ATTEST:
CITY CLERK - AUDITOR
APPROVED AS TO FORM AND CORRECTNESS
BY: �k
Frank C. Adler, City Attorney
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_ -irst Municipal Loan Council " '
- -- CAPITAL FINANCING ASSISTANCE PROGRAM
j September 23. 1993
Air. Robert F. Flatley, City Manager
City of Dania
1 P. O. Box 1708
! Dania, FL 33(X)4
! Re: Acceptance of Proposed Financial Terms and Conditions
for the Capital Financing Assistance Program
Dear Mr. Flatlet'.
The purpose of this letter is to set forth the terms and conditions which the First Municipal man Coo the I
Capital Financing Assistance Program (the 'Program') propose to offer the City of Dania uthe issuance cost% to finance
ices related to the issuance of tax exempt debt not to exceed a amount of a application
p
the ryconstruction of the City Fishing Pier (the 'Project") as described in the application on fide with the Florida
League of Cities, Inc. (the "Program Administrator').
The Applicant's acceptance of the financing proposal is based solely on the written terms and conditions
stated herein and specifically referenced by attachment.
Inc, is recommended for
The proposal as presented and attached hereto from William R. Hough & Co.,
consideration by the Applicant following the submission of competitive proposals from the members of the CFAP
lin:otcing consortium and the analysis and recomHaydeatr& Co.ons of hashe psatisfi d their obligationsrogram's independent et ode the„termsoofntheir '
I l:Nlelt & Co., as attached hereto. Accordingly, ;' •
1 amtract with the Program Administrator. No fee is due for this basic service. Further, there is no application,
origination, administrative, or other Program fees or expenses except as Provided herein or as may be authorized by
the Applicant as additional services to be provided in the financing.
With respect to legal fees, the Applicant shall be responsible for the payment of its legal fees, including acceptance
the
program's bond counsel fees in accordance with the enclosed schedule of ices and expenses. Upon youry
of this proposal, we will instruct Foley & Lardner to prepare a letter of engagement for the CitYs resolutions,consideration.
and (.
FAP Bond Counsel to pre
This engagement letter will authorize the C pare all necessaryagreements
documents for dosing the transactions.
I Assuming a AAA - rated and insured financing, issuance costs will include the following:
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Bond Counsel Feu/Expenses' S 4,O00.00
Paying Agent and Registrar' S 1,000.00
Rating Agency(2)' S 11,000.00
Bond Printing'
�!! Total Cos[ of Issuance S 19,000.00
I S
Bond Insurance Premium'
� ...�__ -,. ..._._..�— -- ..- '__ - "-ac-^aR��!3p tivn^:rJ-�++';v!'.-.. � •yam .
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UndcrATitcr's Discount
{ (Including the Preparation of Official Statement and such other expense as identified in the attached proposal if any)
Total S 54,932SO
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• Indicates Estimated
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The above fees and expenses do not include those of the Applicant's attorney and any staff time or other applicant
expenses associated with this financing. -
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If the Applicant decides to abandon the financing after the acceptance of this proposal, only the actual
expenses incurred by bond counsel or other parties shall be reimbursable by the Applicant.
If these terms and conditions are acceptable, please so indicate by rcturoing the enclosed copy of this
acceptance letter signed by the appropriate authorized representative retaining the original for your files.
iThis proposal will expire unless accepted on or before October 22, 1993.
Should you have any questions regarding this proposal, please contact any of the parties listed on the
auachcd distribution list. We appreciate the opportunity to be of service to the City of Dania through this Program.
I �
' PAL N7CUNCIL
B
Aut d Representative
Accepted and Approved:
CITY OF DANIA, FLORIDA
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BY
Title:
Date:
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Enclosures f�
cc Attached Distribution List t
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DISTRIBUTION LIST - CITY OF DANIA V
FIRST SIUNICIPAL LOAN COUNCIL CAPITAL FINANCING ASSISTANCE PROGRAM
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APPLICANT S
Mr. Robert F. Flaticy, City Manager• 305/921.8700
( tv of Dania
P.O. Box 1708
Dania, FL 33004
Fax: .10.5/921.2604
t, M•.. Maric Jabalee, Finance Director 305/921.8700
n:
r: C'ity of Dania
_t.
'r P.O. Box 1708
Dania, FL 33(In4
Fax: 3)5/921.260.1
ISSUER'S COUNSEL _
('1'o be provided)
j BOND COUNSEI,
Ms, Grace E. Dunlap, Esquire* 813/229-2300
Foley &- Lardner
im North Tampa Street, Suite 2700
Post Office Box 3391
Tampa, Florida 33601-3391 _t
FAX: 813/221-4210 -
BANK/UNDERWRITER
Mr. Christopher S. Youmans* 813/895.8880
Vice President, William R. Hough 8c Co., Inc
IW Second Avenue South, Suite 800 Si. Petersburg, FL 33701
Fax: 813/895-8802
CAPITAL FINANCING ASSISTANCE PROGRAM
%fr. Richard C. Dowdy' 904/222A684
Florida Lcaguc of Cities, Inc.
201 West Park Avenue -
Post Office Box 1757
Tallahassee, Florida
FAX: 904/222.3806
f.
CFAP FINANCIAL ADVISOR
Mr. John Haylett, President* 813/951-2900 ;
John Haylctt Sc Co., Inc
IS(XI Second Street, Suite 711
Sarasota, FL 34236
FAX: 813/954-7578
iw/o enclosures
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Wifliam RHough & Ca.
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FAX ,s•L E516a2
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September 1, 1993 i
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Mr. Dick Dowdy
Florida League of Cities, Inc.
201 West park Avenue
Tallahassee, Florida 32302
j RE: PROPOSAL TO SERVE AS WNTSTMENT BAINXER
i TO THE CITY OF DAA7A, FLORIDA
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Deer Mr. Dowdy:
William R. Hough & Co. is pleased to submit a proposal to serve as investment banker for the
City of Dania. we are confident that our firm is well-quallfied to serve the City for Its proposed
financing for the reconstruction of the City Pier.
Based upon the request for proposal, we have provided herein interest rate scales and gross spread
informatton for a non-rated. A-rated and AAA-rated financing as of Friday, August 20, 1993. Each
alternative assumes the bonds are issued on a bank-qualified basis.
Should you need additional information or clarification of our proposal, please feel free to contact
one of us at any time.
Sincerely,
WILLIAM R. HOUGH & CO. WILLIAM R. HOUGH & CO.
Christopher S. Youmans JoaII L. Forney
Vice President Vice President
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SATE.COUNTY ANC MUNICIPA'_SONGS�� `
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listed below are the throe scales requestr�. Each scale is based upon market conditions as of f
Friday, August 27, 1993. and assumes the issue is bank-qualified' {
Aaa InSur�__ A-Rated__ _hqn-Rated `�
Coupon Col p{n%) B� Coupon
nturity Rate M)
�- % Yk� w
10/Il94 2.60 2.60 2.75 2.75 3.00 3.00
10/1/95 3.20 3.20 3.35 3.35 3.70 3.70
10/I/96 3.50 3.50 3.65 3.65 4.00 4.00
10/1l97 3.60 3.70 3.75 3.95 4.125 4.25
i 3.75 3.95 4.00 4.00 4.40 4.50
10/1/98 1 4.125 4.25 4.625 4.75 10/1/99 4.00 4.10
10/1/00 4.10 4.20 4.20 4.30 5.00 5.00
10/1/01 4.20 4.30 4.30 4.40 5.00 5.10
10/1/02 4.30 4.40
4.40 4.50 5.00 5.20
10/1/03 4.40 4.50 4,50 4.65 5.10 5.30
1011104 4.60 4.65 4.70 4.90 5.20 5.40
10/1/05 4.625 4.75 4.80 4.90 5.30 5.50
J 10/1/06 4.W 4.90 5.00 5.05 5.40 5.60
10/1107 5.00 5.05 5.10 5.20 5.50 5.70
1011/08 5.10 5.15 5.20 5.30 5.60 5.80
10/1/13 5.25 5.36 5.25 5.45 5.75 6.00
10/1/18 5.25 5.39 5.25 5.50 5.75 6.125
William R. Hough a Co.'s proposed fees for the City's financing program are as follows
(S/S1.000 Bond):
i
i inrk�'r6llns $Prod & TIC
Tnml A-Rated Non Ratod
Management Fee $2.00 $2.00 $2.00 F
Underwriter's Risk 0.00 0.00 0.00 u
5.82 5.82 7.80
Average Takedown 4 5S2 4�
Expenses �
TOTAL $L-U SLU S v
TIC w 5.219587% 5.33676891, 5.956858% `
t TIC calculated Including underwriters discount but excluding Insurance premium if applicable. Sri
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PSA, MSRB, Cush' 0.24 ;
Fed funds and Day Loan 4�:4
Closing, "rravei and Out-of-pocket
$0.50
TOTAL
Gg William R. Hough i
Assuming Bond Counsel to the City is in outothe�use of un&rrwriterpsncounsel, thereby saving
.Sr Co. is willing to conduct the City's financing
thn City the expense of each. We have oonducted may similro b'0 ouls c nteamuof public finance
inance
underwtiter s counsel and are confident that the level of expense P in that no underwriters counsel -
professionals will enable us to do the same for the City of oasir the bond ssue is held joeally.Assuming William R. Hough do
is used for this trartsacdoo, and that the
frng fo
et and expense. indicted above. Tim avenge takedowv and
Co. is willing to commit to the mating however, vary slightly depending on market
underwriter's risk component of the ttaderu titiag spread may. to rein underwriters counsel, the
conditions at the time the bonds are sold. Io the event it is necessary
enses not to exceed
cost of such services will be approximately S7.500.00 plus reasonable expe 0 an
William R. Nougb Co. will negotiate all fees to the satisfaction of the City. the Logue an
its
Financial Advisor at the time of pricing.
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*CLCCOP:Co 0�3: 229-6202 ANNAPOLIS NAar LAND
Re: Schedule of Fees for Services Rendered as Bond Counsel for the First Municipal
i Loan Council's Capital Financing Assistance Ptograrrs
A. 14WW money r we or Currant BILlI ine
53,OOW is
L Lora than S1,000.000 -
2. S1,000,000 thna 510,000,000 $1.00 pat thousand in addition to S3,000(to, With a maximum
of 36,OOP A.
Negotiable
�f 7. over510.000,000
1 8. Advance RdVmdlnt
1. Lan than 31.000.000 tTatlo' i .
,,CID
2. SI,000,000 thru$10,000,000 SO.75 per thousand in addition to Si3,0oo fOaN -
3, Over$10.000,000 NQotiable -
11. seewPPal Feet U avdkahlf
A. Yy¢Jic OUlas
$1,000
1 Included in Use Fee
a. Ratine Antxv Onlr
1I C. r•,.dtr I nancem I .
1. Lase than S1.000.000- $1.000
2. $1,000,000 hru $10,000.000 $0.50 per thousand in addition to the $1.000 fee to A maximum
of$!.sty)
D• fie.tt.v,lr Fb.v Retinntioe S500
E. s,,gmoetitive Bid Selection and Award S21500 -
Hourly rates not to exceed$3.000(excluding appeal)
F. nT„;,t•.Wt Vdidation
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An equitable adjustment to the fees will be undertaken where unusual structuring, tax problems, complex
revenue pledge, etc. result in a significant increase in attorney time or responsibility. All adjustments shall be by
mutual consent of bond counsel, the issuer, and the program administrator. 4:,
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Fee includes up to S500 in expenses. Expenses and disbursements which exceed S500 will be billed additionally at
closing.
nlap at (S13) 2=5-3106.
For more information, contact Grace Du
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