Res 1259 1/18/1972RESOLUTION NO. /
d?
BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF
WICHITA FALLS, TEXAS, THAT:
That certain financial advisory contract, a copy of which
is attached hereto, dated December 21, 1971, between the City of
Wichita Falls and First Southwest Company, with reference to the
issuance of approximately $2, 500,000.00 in water and sewer system
revenue bonds, is hereby approved, and the Mayor is authorized to
execute the same for the City of Wichita Falls.
PASSED AND APPROVED THIS the 18th day of January, 1972.
M A Y O R
ATTEST:
City Clerk
e -`
FINANCIAL ADVISORY CONTRACT
Revenue Bonds)
M.A.C. Form C-S. Standard Form of Agreement between Municipal Subdivision and
Municipal Bond Dealer Covering REVENUE BONDS.Form Approved by Municipal Ad-visory Council for Use of Members Only.)
Date December 21, 1971
To: Honorable Mayor and City Council
City of Wichita Falls
Wichita Falls, Texas
Gentlemen:
1. We understand that you contemplate ordering an election within your City
at which there will be submitted to its qualified voters the proposition(s) of authorizing the is-
suance of certain bonds in the following amount(s) and for the purpose(s) indicated:
Approximately $2,500,000 Water and Sewer System Revenue Bonds
and that in connection with the authorization, issuance, sale and delivery of such bonds you desire
this proposal from us to perform professional services in the capacity of Financial Advisors for
your City
2. By this proposal we offer our professional services and our facilities as Financial Advisors
and agree to perform the following duties normally performed by such advisors, and to perform
such other duties as, in our judgment, may be necessary or advisable:
a. To make a study of the operating results of your Water and Sewer
System(s) and, after taking into account any outstanding obligations which
are payable from the net revenues thereof, additional net revenues to arise from pro-
posed rate increases, if any, and additional net revenues as projected by your consulting
engineers, to devise and recommend for your approval a plan of financing to cover the
proposed bonds. Such plan shall include a maturity schedule and other terms and con-
ditions, such as options of prior payment, retention of the right to issue additional
bonds and the like, as will, in our opinion, result in the issuance of the bonds under
terms and conditions most advantageous to your City
consistent with a minimum effective interest rate.
b. We understand that you have retained or expect to retain McCal 1 , Parkhurst andHorton, Dal as, Texas, , a firm of recognized muncipal bond attorneys, who will
prepare the proceedings and advise the steps necessary to be taken in the bond election,
the legal issuance of the bonds and the final delivery of the bonds and who will issue an
opinion approving the legality of the bonds. All financial services rendered pursuant to
this contract will be performed in such manner, and will include assembling and ac-
cumulating such financial facts, information and data, as will be necessary or appropri-
ate to obtain the unqualified approving legal opinion of said attorneys. The fee of said
attorneys will be paid by tic
c. To advise you of current bond market conditions, forthcoming bond issues and other
general information and economic data which might normally be expected to influence
interest rates or bidding conditions so that the date for the sale of the bonds can be
set at a time which, in our opinion, will be favorable.
d. To compile from your official records for submission to and approval by your governing
body an Official Statement or Prospectus, if required, containing official data and other
information of the nature and to the extent ordinarily required in bidding on bonds of
this type, all of which we are to furnish in a sufficient number of copies to permit mail-
ing to prospective bidders, a list of which we agree to provide.
e. To attend to and pay for the printing of bonds.
f. To pay the necessary expenses in obtaining the approving opinion of the Attorney Gen-
eral of the State of Texas and the registration of the bonds by the Comptroller of Public
Accounts, and the delivery of the bonds to the purchaser at a bank in Austin, Texas.
f
3. We agree to direct and coordinate the entire program of financing herein contemplatedandtoassumeandpaytheexpensesaboveenumerated. It is specifically understood and agreed,however, that this obligation on our part shall not cover any local election expenses except electionsupplies; nor shall it cover publication costs, or the expenses of any litigation.
4. As consideration for the services rendered by us and as reimbursement for the expenseswhichwearetoincur, it is understood and agreed that your Citytopayandwearetoacceptacashfeetobecomputedasfollows:
s
The minimum fee shown under Section VI "Financial Advisory Services forMunicipalities" (copy attached) as adopted by Municipal Advisory CouncilofTexas, with revision of April 1 , 1970.
Such fee shall become due and payable simultaneously with the delivery of the bonds to the pur-chaser.
5. In the event the bond election contemplated by this proposal should fail, then the fee due usshallbe -0- however, should the same or similar
submitted at an election held within 24
proposition(s) again be
months from date hereof, then at our optiontheagreementcoveredbythisproposalshallapplytoanybondsauthorizedatsuchelection.
6. It is further understood and agreed that we reserve the right to submit a bid for the bondswhenofferedforsale.
7. This agreement shall be terminated by the delivery to the purchaser of the bonds coveredhereby, or by the elapse of 36 months from date of your acceptance hereof, whichevershallfirstoccur; however, if the bonds have not been so delivered within the period specified, thisagreementmaybeextendedbymutualconsent.
8. This proposal is submitted in duplicate originals. When accepted by you it will consti-tute the entire agreement between your City and the undersigned for the pur-pose and considerations herein specified. Your acceptance will be indicated by the signature ofyourMayorattestedbyyourCityClerkonbothcopiesandreturningoneexecutedcopytous.
Respectfully submitted,
FIRST SOUTHWEST COMPANY
DALLAS, TEXAS
By
Authorized Representative
ACCEPTANCE
ACCEPTED pursuant to resolution adopted by the City Council
of City of Wichita Falls, Texas on this the ay
of 192Z)
Title Mayor
ATTEST:
Title Ci ty Cl erk
SEAL)
M.A.C. Form C-2.
Rev.Apr. 1968