91-0509_BANKERS TRUST COMPANY OF CA_Bond Anticipation NoteSan Juan Capistrano
Community
Redevelopment
Agency
May 9, 1991
0
Bankers Trust Company of
California, N.A.
Corporate Trust and Agency Group West
50 Fremont Street, 10th Floor
San Francisco, California 94105
Re Fiscal Agency - $6,250,000 Bond Anticipation Note
Gentlemen:
11
At their meeting of May 7, 1991, the San Juan Capistrano Community
Redevelopment Agency Board of Directors appointed the Bankers Trust Company
of California, N.A. as the Fiscal Agent for the proposed $6,250,000 Tax Allocation
Bonds. The Finance Officer, David Bentz, was authorized to execute the
necessary documents for your services.
Thank you for your interest in this matter.
Very truly yours,
Cheryl Johnson
City Clerk
cc: Finance Officer
32400 Pasco Adelanto
San Juan Capistrano
California 92675
714 - 493-1171
AGENDAITEM:
TO: Stephen B. Julian, Executive Director
Community Redevelopment Agency
FROM: David P. Bentz, Finance Officer
Community Redevelopment Agency
May 7, 1991
SUBJECT: Fiscal Agent - Tax Allocation Bonds - $6,250,000
SITUATION:
In August 1986, the Redevelopment Agency issued a Tax Allocation Note for
$6,250,000. This note becomes due on August 1, 1991 and will be paid from the new
refunding bond proceeds that are scheduled for sale in late June or early July of 1991.
The sale of these twenty-five (25) year bonds requires the selection of a Fiscal Agent
(Paying Agent) and I have obtained Fiscal Agent Proposals from the following banks:
Acceptance
Annual
Fee
Fee
Bankers Trust $1,000
$2,500
Security Bank $2,500
$2,500
Bank of America $1,000
$2,500
In addition to the above fees there are other charges for wire transfers, investment of
idle funds and out-of-pocket expenses.
The proposal from Bankers Trust for other charges is approximately one-half the fees of
the other banks, therefore the recommendation for award is to them.
Acceptance Fee
The acceptance fee is for the examination, preparation and/or execution of legal and
formal documents in connection with the issuance and delivery of the Bonds; the
inspection and authentication of the Bonds; the receipt, disbursement and allocation of
the proceeds in accordance with the applicable provisions of the authorizing document
and the establishment of the administrative records. This is a one-time fee and is
payable upon closing.
Annual Fee
This annual administration fee is for the maintenance of records necessary to the proper
discharge of Bankers Trust responsibilities; examination of statements, certificates and
documents filed with the bank to determine compliance with the provisions of the
governing instrument; correspondence required in the normal administration of the
account; preparation and distribution of statement for each of the accounting funds
established by the governing instrument; maintenance of the bondholder records; transfer
of bonds; payment of interest and principal; required tax reporting; routine bondholder
inquiries and security replacement.
FOR CITY COUNCIL ".'4
32,
AGENDA ITEM
-2-
U
COMMISSION/BOARD REVIEW, RECOMMENDATION:
N/A
FINANCIAL CONSIDERATIONS:
The initial acceptance fee will be paid from Bond Proceeds and the
charges and out-of-pocket expenses will be paid from any other i
Redevelopment Agency over the twenty five (25) year life of the bonds.
NOTIFICATION:
Bankers Trust Company of California, N.A.
Corporate Trust and Agency Group West
50 Fremont Street, 10th Floor
San Francisco, CA 94105
ALTERNATE ACTIONS:
1. Approve the recommendation of the Finance Officer.
2. Request additional information.
3.
Do not approve the recommendation but provide alternative Counc.. ..
------------------------------------------------------------------------------
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RECOMMENDATION:
By motion, appoint Bankers Trust Company of California, N.A. Fiscal Agent for the
proposed $6,250,000 Tax Allocation Bonds and authorize the Finance Of ficer of the
Agency to sign the necessary documents engaging their services.
------------------------------------------------------------------------------
-----------------------------------------------------------------------------
Respectfully submitted,
David P
DPB:ja
San Juan Capistrano
Community
Redevelopment
Agency
April 23, 1991
0
Mr. Marshall F. Linn, President
Urban Futures, Inc.
801 East Chapman Avenue, Suite 106
Fullerton, California 92631
Re: Financial Advisory Services - '_
Redevelopment Agency Tax Allocat
Dear Mr. Linn:
At their meeting of April 16, 1991, the San Juan Capistrano Community
Redevelopment Agency Board of Directors approved your proposal to act as the
Redevelopment Agency Financial Advisor for the proposed Tax Allocation Bond
sale. Payment of fees in the amount of $28,500 for this service was authorized
from the bond proceeds.
Thank you for your assistance in this matter.
Very truly yours,
Cheryl Johnson
City Clerk
cc: Director of Administrative Services
32400 Paseo Adelanto
San Juan Capistrano
California 92675
714 - 493-1171
•
AGENDA ITEM:
TO: Stephen B. Julian, Executive Director
Community Redevelopment Agency
FROM: David P. Bentz, Finance Officer
Community Redevelopment Agency
is
April 16, 1991
SUBJECT: Financial Advisory Services - Proposed $6,250,000 Tax Allocation Bonds
SITUATION:
In August 1991 the Redevelopment Agency is required to retire a $6,250,000 Tax
Allocation Note that was issued August 1, 1986, at an interest rate of 5.7%. In order to
retire this note I am proposing that the Redevelopment Agency issue 25 year Tax
Allocation Bonds with an anticipated sale date of sometime in May 1991. In order to
complete this transaction it is necessary to use a financial advisor to structure the terms
and conditions of the bonds and in handling the terms of the sale.
A copy of Urban Futures, Inc. proposal is attached. This firm acted as the financial
advisor for the original issue of 1986.
COMMISSION/BOARD REVIEW, RECOMMENDATION:
None
FINANCIAL CONSIDERATIONS:
The following fees were proposed:
Fieldman, Rolapp & Associates
Urban Futures, Inc.
$28,900
$28,500
In addition to the above, I received two other proposals; one from Stone & Youngberg,
and Miller & Schroeder Financial, Inc. for underwriter services, which include some of
the services offered by Fieldman, Rolapp & Associates and Urban Futures, Inc.
I am not prepared to recommend an underwriter at this time and will return at a future
date with a recommendation regarding the use of underwriter services. The firm of
Stradling, Yocca, Carlson & Rauth and Urban Futures, Inc, will assist me in evaluating
and determining the recommendation as to the use of underwriters.
In addition to the above proposed fees the Redevelopment Agency will be responsible for
miscellaneous out-of-pocket expenses. All fees and costs will be paid from bond
proceeds
NOTIFICATION:
Urban Futures, [nc.n� ^��
FOR CRY COUNCIL AGEN(q ... /�J
!J
0 0
AGENDA ITEM -2- April 16, 1991
ALTERNATE ACTIONS:
1. Approve the recommendation of the Finance Officer.
2. Request additional information.
3. Do not approve the recommendation but provide alternative Council direction.
RECOMMENDATION:
Approve the employment of Urban Futures, Inc. as the Redevelopment Agency Financial
Advisor for the proposed Tax Allocation Bond sale and approve the payment of costs
from bond proceeds.
Respectfully submitted,
a�
David P. Bentz
DPB:ja
Attachment
0 0
Urban Futures Inc.
March 22, 1991
Mr. Dave Bentz
Director of Administrative Services
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, California 92675
Dear Mr. Bentz:
Pursuant to our telephone conversation, attached is our proposal to provide financial
advisory services to the San Juan Capistrano Redevelopment Agency.
As I discussed with you, an independent Financial Advisor as a member of your
financing team, can play an integral role in insuring a successful and cost-effective bond
financing program. You had previously indicated that the Agency is proposing to issue
between $6,500,000 and $12,000,000 in tax allocation bonds to both refund the
outstanding 1986 Notes and possibly provide new bond proceeds for Agency projects and
debt repayment.
For your information and review, I have enclosed our proposed Scope of Services as
Financial Advisor for the Agency, a proposed fee schedule and our Statement of
Qualifications.
Urban Futures, Inc. feels well qualified to participate in this engagement. Incorporated
in 1972, Urban Futures has existed in its present form since 1974. Located in Fullerton,
California, Urban Futures is a multi -discipline consulting firm offering services in public
finance, redevelopment planning and implementation, urban planning and bond
administration.
Urban Futures, Inc, has served as financial advisor and/or bond administrator to over
55 counties, cities and redevelopment agencies. The cumulative value of issues for which
we have served approaches close to $2,000,000,000.00. A list of representative bond
issuers and client references is enclosed in our Statement of Qualifications. In addition,
major foreign banks have issued Letters of Credit to a significant number of California
Redevelopment Agencies based on their confidence in our work product.
For the engagement, Urban Futures will assign Marshall Linn, Richard Oakley and
Douglas Anderson, which will bring the engagement over 40 years of "hands-on" public
finance experience.
801 E. Chapman Ave., Suite 106, Fullerton, CA 92631 714/738-4277 Telecopy: 738.3767 Redevelopment/Finance/City Planning/Implementation
0 0
Mr Dave Bentz
March 22, 1991
Page Two
We look forward to serving as your Financial Advisor for your proposed financing and
working closely together with you to complete this financing in a way which best serves
the Agency.
Please feel free to call any of the client references as to our "track record".
If you have any questions, please give me a call.
Sincerely,
URBAN FUTURES, INC.
Marshall F. Linn
President
u
n
L.
PROPOSED SCOPE OF SERVICES
RELATED TO FINANCIAL ADVISOR SERVICES FOR
SAN JUAN CAPISTRANO REDEVELOPMENT AGENCY
The Financial Advisor shall perform in a diligent manner the following services:
1. When the San Juan Capistrano Redevelopment Agency ("Client') has
approved a specific project or projects for implementation, the estimated cost and method
of financing of which have been sufficiently well established to permit the preparation of a
final financing program, the Financial Advisor, at the direction of Client, shall prepare such
plan containing, in addition to other information, the following:
A. A description of the project or projects including the purpose, benefits,
estimated costs and other pertinent information.
B. Details relating to the proposed method of financing, including tentative bond
amortization schedules, call features, sources and amounts of funds to be used
in amortizing the costs and other related data.
C. Illustrations and examples of the financial effects of the financing program on
Client and its primary users.
D. Recommendations as to further procedures.
2. If bonds or other evidences of indebtedness to finance all or part of the costs
of the proposed improvements is authorized to be issued by Client or Client in conjunction
with another public agency such as the City of San Juan Capistrano, or a Joint Powers
Authority, the Financial Advisor shall:
A. Make recommendations as to exact terms and conditions under which bonds
are to be issued and sold, including timing and method of sale, final
amortization or repayment schedules, call and redemption features, and other
details.
B. Assist bond counsel in drafting the necessary resolution of issuance and notice
of sale.
3. Upon approval by Client of final financing details and upon direction by Client
to do so, prepare the text and other material for an official statement or bond prospectus
describing the improvements, the bonds, their security, and the economic and financial
background of Client.
0 0
4. Arrange for printing and distribution of the official statement and other
related material to a comprehensive list of prospective bond bidders.
5. Make such trips and schedule such conferences, in financial centers throughout
the United States as are necessary or proper to generate maximum interest in, and
acceptance of, the proposed bonds, notes or obligations among both underwriters and
ultimate investors.
6. The Financial Advisor shall be available at reasonable times by telephone or
at the offices of Client to discuss on a continuing basis the results of studies and analyses
and generate such additional information as desired or requested and consult with Client
as to the financial aspects of any specific project then being considered.
0
11
PROPOSED FINANCIAL ADVISORY FEE
The cost for the services requested by the Agency for Financial Advisor shall be based on
the following fee schedule and other considerations:
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)
12)
13)
14)
15)
16)
17)
18)
19)
20)
$13,500 up to and
$15,500 up to and
$18,500 up to and
$21,500 up to and
$24,500 up to and
$26,500 up to and
$28,500 up to and
$30,500 up to and
$32,500 up to and
$34,500 up to and
$35,500 up to and
$36,500 up to and
$37,500 up to and
$38,500 up to and
$39,500 up to and
$40,500 up to and
$41,500 up to and
$42,500 up to and
$43,500 up to and
$44,500 up to and
including $ 1,000,000
including $ 2,000,000
including $ 3,000,000
including $ 4,000,000
including $ 5,000,000
including $ 6,000,000
including $ 7,000,000
including $ 8,000,000
including $ 9,000,000
including $10,000,000
including $11,000,000
including $12,000,000
including $13,000,000
including $14,000,000
including $15,000,000
including $16,000,000
including $17,000,000
including $18,000,000
including $19,000,000
including $20,000,000
For any single issue in excess of $20,000,000, the
financial advisor fee will be negotiated with the
Agency on an issue by issue basis.
For purposes of computing such compensation, the principal shall be cumulative only if two
or more series of obligations are to be sold simultaneously. Such sums shall become
payable only upon delivery by the Agency (or the legal entity or entities issuing such bonds,
notes or obligations) of such bonds. In addition, the Financial Advisor shall be reimbursed
for direct out-of-pocket expenses out of the proceeds from the financing.
1. The Financial Advisor is employed hereunder to render professional services as the
Agency's financing advisor and any payments made to it are compensation solely for
such service and advice. The Financial Advisor is not responsible for and shall not
be held liable for any other expense or expenditure in connection with the financing
program. The Agency or legal entity or entities issuing bonds, notes, or obligations
shall bear the cost of printing, mailing and distributing any official statement, any
notice of sale, any printing of documents and securities, publication, bond counsel
fees and rating fees.
2. The Agency agrees that it's officers and employees will be requested and directed to
cooperate with and assist representatives of the Financial Advisor to the end that the
Financial Advisor may secure all information and data required to perform the
services herein provided.
3. The term of this Agreement shall be on-going from the date hereof, but may be
canceled without any cause by either party, by giving the other party thirty (30) days
written notice of such cancellation.
4. In addition to the Financial Advisor's participation related to specific financings, the
Agency may wish to engage the Financial Advisor on specific assignments of a more
general nature. In these instances, the staff of Urban Futures, Inc. will be available
on an hourly fee basis. Urban Futures, Inc. hourly compensation rate is as follows:
Principals $125.00
Senior Staff $100.00
Associate Staff $ 90.00
Assistant Level $ 60.00
1.
0
NOES: / None
ABSENT: None
41
Friess, Hausdorfer, Jones,
and Chairman Buchheim
It --was moved by Director Hausdorfer, seconded by Director
Jones, unanimously carried to approve the List of Demands
dated May 2, 1991, in the total amount of $1,527,490.48.
--- 2. SELECTION OF FISCAL AGENT (PAYING REGARDING
/1
DL+T.TILTTTITI. && l a I n ^. ^mTl.1T 1TATL1 / l_ n n
3.
Written Communication: '
Report dated May 7, 1991, from the Finance Officer, regarding
the Agency Tax Allocation Note in the amount of $6,250,000
that is due on August 1, 1991. The Report recommended that
Bankers Trust be retained as the Agency's Fiscal Agent
(Paying Agent) to manage the sale of 25 -year bonds to pay off
the Tax Allocation Note.
Appointment of Fiscal Agent:
It was moved by Director Friess, seconded by Director
Hausdorfer, and unanimously carried that Bankers Trust
Company of California, N.A. be appointed as the Agency's
Fiscal Agent (Paying Agent) to manage the sale of the
proposed $6,250,000 Tax Allocation Bonds. The Finance
Officer was authorized to execute the necessary documents.
wrizcen commu icari.on:
Reportated May 7, 1991, from the Finance Officer, regarding
the ne d for the Agency to make an initial deposit of $75,000
for s artup costs and s flow purposes to manage and
operat Kinoshita Fa s, wh' h was purchased by the Agency
in Marc 1991.
Mr. Julian m ral presentation, noting that the funds
would be placed in a revolving account to allow for the
purchase of agricultural items, e.g. seeds, etc., for the
farming operation. An expected return on investments will
repay this initial deposit.
5/7/91