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HomeMy WebLinkAboutC-2394• • ca3�� PROFESSIONAL SERVICES AGREEMENT FOR FINANCIAL ADVISOR This agreement has been entered into this and day of, 2008 by and between the City of Arcadia Redevelopment Agency, California (the "Agency ") and Fieldman, Rolapp & Associates, (herein, the "Consultant "). WHEREAS, the Agency desires independent financial advisory services to be performed in connection with Funding of Redevelopment Projects (herein, the "Project "); and WHEREAS, the Agency desires to retain the professional and technical services of the Consultant for the purpose of debt issuance and refunding of debt, (herein, the "Services "); WHEREAS, the Consultant is well qualified to provide professional financial advice to public entities such as the Agency; NOW, THEREFORE, in consideration of the above recitals and the mutual covenants and conditions hereinafter set forth, it is agreed as follows: Section I Financial Advisory Services. As directed by the Agency, Consultant will provide services in connection with the Funding of Redevelopment Projects as such Services are fully described in Exhibit A attached to this Agreement. Consultant is engaged in an expert financial advisory capacity to the Agency only.. It is expressly understood that the Services rendered hereunder are rendered solely to the City of Arcadia Redevelopment Agency. Consultant does not undertake any responsibility to review disclosure documents on behalf of owners or beneficial owners of bonds or debt which may arise from the Consultant's work hereunder. Section 2 Additional Services. Services performed for the Agency by Consultant that are not otherwise specifically identified in Exhibit A to this Agreement, shall be additional services. Additional services include, but are not limited to, the following: 2.01 Assisting the Agency in obtaining enabling legislation or conducting referendum elections. 2.02 Extraordinary services and extensive computer analysis in the structuring or planning of any debt issue or financing program. 2.03 The repeat of any element of a service described in Exhibit A to this Agreement which is made necessary through no fault of Consultant. 2.04 Financial management services, including development of financial policies, capital improvement plans, economic development planning, credit analysis or review and such other services that are not ordinarily considered within the scope of services described in Exhibit A to this Agreement. City of Arcadia Redevelopment/Fieldman, Rolapp & Associates Page 1 Project No. 08104 FRA l 03310.doc 2.05 Services rendered in connection with any undertaking of the Agency relating to a continuing disclosure agreement entered into in order to comply with Securities and Exchange Commission Rule 15c2 -12 or other similar rules. 2.06 Services rendered to the Agency in connection with calculations or determination of any arbitrage rebate liability to the United States of America arising from investment activities associated with debt issued to fund the Project. Section 3 Compensation. 3.01 For Consultant's performance of Services as described in Section 1 of this Agreement the Consultant's compensation will be as provided in Part 1 of Exhibit B attached to this Agreement, plus Consultant's expenses incurred in rendering such Services. Consultant's expenses may include, but are not limited to travel, telephone /conference calls, postage, courier, database access services, and printing. 3.02 For Consultant's performance of additional services as described in Section 2 of this Agreement, the Consultant's compensation will be as provided in Part 2 of Exhibit B attached to this agreement, plus Consultant's expenses incurred in rendering such services. Consultant's expenses may include, but are not limited to travel, telephone /conference calls, postage, courier, database access services and printing. 3.03 Payment for Consultant's Services rendered pursuant to Section 1 of this Agreement shall be as provided for in Exhibit B to this Agreement, unless specified to the contrary elsewhere in this Agreement. The Consultant may submit monthly invoices for payment for services provided pursuant to Section 2 of this Agreement unless an alternate date or dates have been specifically agreed to in writing. Unless otherwise specified, payment of Consultant's compensation and expenses is due thirty (30) days after submission of Consultant's invoice for services. 3.04 In the event the Services of the Consultant are abandoned prior to completion of Consultant's work, Consultant shall be compensated for Services performed to the point of abandonment as if such Services were an additional service pursuant to Section 2 of this Agreement. An act of abandonment shall be deemed to have occurred when no action has been taken by the Agency relative to the services of the Consultant for a period of three (3) months from the date of the initial performance of a service, or there has been a written notification to the Consultant of an abandonment of the Project by the Agency. 3.05 Consultant fees set forth in this Agreement and Exhibits are guaranteed by Consultant for a period of twelve (12) months from the date of this Agreement. Section 4 Personnel. Consultant has, or will secure, all personnel required to perform the services under this Agreement. Consultant shall make available other qualified personnel of the firm as may be required to complete Consultant's services. The Agency has the right to approve or disapprove any proposed changes in Consultant's staff City of Arcadia Redevelopment/Fieldman, Rolapp & Associates Page 2 Project No. 08104 FRA103310.doc E providing service to the Agency. The Agency and Consultant agree that such personnel are employees only of Consultant and shall not be considered to be employees of the Agency in any way whatsoever. Section 5 Term of Agreement. This Agreement shall continue in full force and effect for a period of thirty-six (36) months from the date hereof unless terminated by either party by not less than thirty (30) days written notice to the other party except that the Agreement shall continue in full force and effect until completion of Consultant's services or until an abandonment shall have occurred as described in Section 3.04 hereof. This Agreement may be extended from time to time as agreed by the Agency and the Consultant. Section 6 Modification. This Agreement contains the entire agreement of the parties. It may be amended in whole or in part from time to time by mutual consent of the parties. This shall not prohibit the Agency and Consultant from entering into separate agreements for other services. Section 7 Assignment. The rights and obligations of the Agency under this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of the Agency. This agreement may not be assigned by the Consultant without the consent of the Agency except for compensation due Consultant. Section 8 Disclosure. Consultant does not assume the responsibilities of the Agency, nor the responsibilities of the other professionals and vendors representing the Agency, in the provision of services and the preparation of the financing documents, including initial and secondary market disclosure, for financings undertaken by the Agency. Information obtained by Consultant and included in any disclosure documents is, by reason of experience, believed to be accurate; however, such information is not guaranteed by Consultant. Section 9 Confidentiality. The Consultant agrees that all financial, statistical, personal, technical and other data and information designated by the Agency as confidential shall be protected by the Consultant from unauthorized use or disclosure. Section 10 Indemnification. The Agency and Consultant shall each indemnify and hold harmless the other from and against any and all losses, claims, damages, expenses, including legal fees for defense, or liabilities, collectively, damages, to which either may be subjected by reason of the other's acts, errors or omissions, except however, neither will indemnify the other from or against damages by reason of changed City of Arcadia Redevelopment/Fieldman, Rolapp & Associates Page 3 Project No. 08104 FRA103310.doc events and conditions beyond the control of either or errors of judgment reasonably made. Section 11 Insurance. 11.01 Consultant shall maintain workers' compensation and employer's liability insurance during the term of this Agreement. 11.02 Consultant, at its own expense, shall obtain and maintain insurance at all times during the prosecution of this contract. Such insurance must be written with a Best Guide "A" -rated or higher insurance carrier admitted to write insurance in the state where the work is located. 11.03 Certificates of insurance naming the Agency as an additional insured shall be submitted to the Agency evidencing the required coverages, limits and locations of operations to which the insurance applies, and the policies of insurance shall contain a 30 day notice of cancellation or non - renewal. 11.04 Insurance coverages shall not be less than the following: A. Workers' Compensation 1. State worker's compensation statutory benefits 2. Employer's Liability -policy limits of not less than $1,000,000. B. Comprehensive General Liability coverage with policy limits of not less than $1,000,000 combined single limit for bodily injury and property damage and including coverage for the following: 1. Premises operations 2. Contractual liability 3. Products 4. Completed operation C. Errors and omissions with policy limits of $1,000,000. Section 12 Permits/Licenses. The Consultant shall obtain any permits or licenses, as may be required for it to complete the services required under this Agreement. Section 13 Binding Effect. 13.01 A waiver or indulgence by the Agency of a breach of any provision of this Agreement by the Consultant shall not operate or be construed as a waiver of any subsequent breach by the Consultant. 13.02 All agreements and covenants contained herein are severable and in the event any of them shall be held to be invalid by any competent court, this Agreement shall be interpreted as if such invalid agreements or covenants were not contained City of Arcadia Redevelopment /Fieldman, Rolapp & Associates Page 4 Project No. 08104 FRA103310.doc 0 herein, and the remaining provisions of this Agreement shall not be affected by such determination and shall remain in full force and effect. This Agreement shall not fail because any part or any clause hereof shall be held indefinite or invalid. 13.03 Each party hereto represents and warrants that this Agreement has been duly authorized and executed by it and constitutes its valid and binding agreement, and that any governmental approvals necessary for the performance of this Agreement have been obtained. 13.04 The validity, interpretation and construction of this Agreement and of each part hereof shall be governed by the laws of the State of California. Venue for any lawsuit concerning this agreement is 6rekge County, California. Gay AnWe5 IN WITNESS Whereof, the parties have duly executed this Agreement as of the day and year first above set forth. CITY OF ARCADIA REDEVELOPMENT AGENCY By: Title: Executive Director Date: a1 aj 0'> HELDMAN, ROLAPP & ASSOCIATES 19900 MacArthur Boulevard, Suite 1100 Irvine, CA 92612 By: 6a D 7/7/07' AS TO FORM: Stephe<i�ch�\�?� /� Agency Counsel Title: ( /' /nJc'/O 4- C City of Arcadia Redevelopment/Fieldman, Rolapp & Associates Page 5 Project No. 08104 FRA103310.doc EXHIBIT A TO PROFESSIONAL SERVICES AGREEMENT FOR FINANCIAL ADVISOR BY AND BETWEEN THE CITY OF ARCADIA REDEVELOPMENT AND FIELDMAN, ROLAPP & ASSOCIATES Scope of Services A. General Services. The Consultant shall perform all the duties and services specifically set forth herein and shall provide such other services as it deems necessary or advisable, or are reasonable and necessary to accomplish the intent of this Agreement in a manner consistent with the standards and practice of professional financial advisors prevailing at the time such services are rendered to the Agency. The Agency may, with the concurrence of Consultant, expand this Agreement to include any additional services not specifically identified within the terms of this Agreement. Any additional services may be described in an addendum to this Exhibit A and are subject to fees described in Exhibit B to this Agreement. B. Debt Issuance Services. The Consultant shall assume primary responsibility for assisting the Agency in coordinating the planning and execution of each debt issue relating to the Project. Insofar as the Consultant is providing Services which are rendered only to the Agency, the overall coordination of the financing shall be such as to minimize the costs of the transaction coincident with maximizing the Agency's financing flexibility and capital market access. The Consultant's proposed debt issuance Services may include, but shall not be limited to, the following: • Establish the Financing Objectives • Develop the Financing Schedule • Monitor the Transaction Process • Review the Official Statement, both preliminary and final • Procure and Coordinate Additional Service Providers • Provide Financial Advice to the Agency Relating to Financing Documents • Compute Sizing and Design Structure of the Debt Issue • Plan and Schedule Rating Agency Presentation and Investor Briefings • Conduct Credit Enhancement Procurement and Evaluation • Conduct Market Analysis and Evaluate Timing of Market Entry • Recommend Award of Debt Issuance • Provide Pre - Closing and Closing Assistance City of Arcadia Redevelopment/Fieldman, Rolapp & Associates Exhibit A, Page 1 Project No. 08104 FRA 103310. doc 0 9 Specifically, Consultant will: 1. Establish the Financing Objectives. At the onset of the financing transaction process for the Project, the Consultant shall review the Agency's financing needs and in conjunction with the Agency's management, outline the objectives of the financing transaction to be undertaken and its proposed form. Unless previously determined, Consultant shall recommend the method of sale of debt and outline the steps required to achieve efficient market access. 2. Develop the Financing Timetable. The Consultant shall take the lead role in preparing a schedule and detailed description of the interconnected responsibilities of each team member and update this schedule, with refinements, as necessary, as the work progresses. 3. Monitor the Transaction Process. The Consultant shall have primary responsibility for the successful implementation of the financing strategy and timetable that is adopted for each debt issue relating to the Project. The Consultant shall coordinate (and assist, where appropriate) in the preparation of the legal and disclosure documents and shall monitor the progress of all activities leading to the sale of debt. The Consultant shall prepare the timetables and work schedules necessary to achieve this end in a timely, efficient and cost - effective manner and will coordinate and monitor the activities of all parties engaged in the financing transaction. 4. Review the Official Statement. a. Generally, SEC, MSRB, and GFOA guidelines encourage full disclosure so that potential investors have sufficient data to analyze each proposed financing. Upon direction of the Agency, the Consultant shall take the lead in review of the official statement for each debt issue relating to the Project to insure that the Agency's official statement is compiled in a manner consistent with industry standards, typically including the following matters: • Legal Authority for the Financing • Security for the Financing • Restrictions on Additional Financings • Purpose and Funds for which the Financing is Being Issued • Governmental System • Financial Management System • Revenue Sources: Historic, Current and Projected • Outstanding Financings • Planned Future Financings • Labor Relations and Retirement Systems • Economic Base • Annual Financial Statements • Legal Opinions Regarding Tax Exemption • Such Other Matters as the Context May Require. City of Arcadia Redevelopment/Fieldman, Rolapp & Associates Exhibit A, Page 2 Project No. 08104 FRA103310.doc b. The Consultant shall maintain and update the official statement on its word processing system until such time as it is near final and suitable for transfer to the financial printer, in order to minimize the costs of revisions made by the printer. 5. Procure and Coordinate Additional Service Providers. Should the Agency desire, the Consultant may act as Agency's representative in procuring the services of financial printers for the official statement and related documents, and for the printing of any securities. In addition, the Consultant may act as the Agency's representative in procuring the services of trustees, paying agents, fiscal agents, feasibility consultants, redevelopment consultants, or escrow verification agents or other professionals, if the Agency directs. 6. Provide Financial Advice to the Agency Relating to Financing Documents. Simultaneous with assisting in the preparation of official statements for each debt issue relating to the Project, the Consultant shall assist the managing underwriters, bond counsel and /or other legal advisors in the drafting of the respective financing resolutions, notices and other legal documents. In this regard, the Consultant shall monitor document preparation for a consistent and accurate presentation of the recommended business terms and financing structure of each debt issue relating to the Project, it being specifically understood however that the Consultant's services shall in no manner be construed as the Consultant engaging in the practice of law. 7. Compute Sizing and Design Structure of Debt Issue. The Consultant shall work with the Agency's staff to design a financing structure for each debt issue relating to the Project that is consistent with the Agency's objectives, that coordinates each transaction with outstanding issues and that reflects current conditions in the capital markets. S. Plan and Schedule Rating Agency Presentation and Investor Briefings. The Consultant shall develop a plan for presenting the financing program to the rating agencies and the investor community. The Consultant shall schedule rating agency visits, if appropriate, to assure the appropriate and most knowledgeable rating agency personnel are available for the presentation and will develop presentation materials and assist the Agency officials in preparing for the presentations. 9. Conduct Credit Enhancement Evaluation and Procurement. Upon the Agency's direction, the Consultant will initiate discussions with bond insurers, letter of credit providers and vendors of other forms of credit enhancements to determine the availability of and cost benefit of securing financing credit support. City of Arcadia Redevelopment/Fieldman, Rolapp & Associates Exhibit A, Page 3 Project No. 08104 FRA103310.doc 11 • 10. Conduct Market Analysis and Evaluate Timing of Market Entry. The Consultant shall provide regular summaries of current municipal market conditions, trends in the market and how these may favorably or unfavorably affect the Agency's proposed financing. a. Competitive Sales. For all types of competitive sale of debt, the Consultant shall undertake such activities as are generally required for sale of securities by competitive bid including, but not limited to the following: • Review and comment on terms of Notice of Sale Inviting Bids • Provide advice on debt sale scheduling • Provide advice on the use of electronic bidding systems • Coordinate bid opening with the Agency officials • Verify bids received and make recommendations for acceptance • Provide confirmation of issue sizing, based upon actual bids received, where appropriate • Coordinate closing arrangements with the successful bidder(s) b. Negotiated Sales. In the case of a negotiated sale of debt, the Consultant shall perform a thorough evaluation of market conditions preceding the negotiation of the terms of the sale of debt and will assist the Agency with the negotiation of final issue structure, interest rates, interest cost, reoffering terms and gross underwriting spread and provide a recommendation on acceptance or rejection of the offer to purchase the debt. This assistance and evaluation will focus on the following areas as determinants of interest cost: • Size of financing • Sources and uses of funds • Terms and maturities of the debt issue • Review of the rating in pricing of the debt issue • Investment of debt issue proceeds • Distribution mix among institutional and retail purchasers • Interest rate, reoffering terms and underwriting discount with comparable issues • Redemption provisions 11. Recommend Award of Debt Issuance. Based upon activities outlined in Task 10(a) and 10(b) above, the Consultant will recommend accepting or rejecting offers to purchase the debt issue. If the Agency elects to award the debt issue, the Consultant will instruct all parties and help facilitate the actions required to formally consummate the award. City of Arcadia Redevelopment/Fieldman, Rolapp & Associates Exhibit A, Page 4 Project No. 08104 FRA103310.doc 12. Provide Pre - Closing and Closing Activities. The Consultant shall assist in arranging for the closing of each financing. The Consultant shall assist counsel in assuming responsibility for such arrangements as they are required, including arranging for or monitoring the progress of bond printing, qualification of issues for book -entry status, signing and final delivery of the securities and settlement of the costs of issuance. City of Arcadia Redevelopment/Fieldman, Rolapp & Associates Exhibit A, Page 5 Project No. 08104 FRA1033I O.doc 0 0 EXHIBIT B TO FINANCIAL ADVISORY SERVICES AGREEMENT BY AND BETWEEN CITY OF ARCADIA REDEVELOPMENT AND FIELDMAN, ROLAPP & ASSOCIATES Fees and Expenses Part 1: Fee for Services Financial Advisory Services performed pursuant to Section 1 of this Agreement, and as more fully described in the Scope of Services set forth in Exhibit A, will be billed for at the amounts set forth below: Transaction Size Fees $1 to $20,000,000 $45,500 $20,000,001 to $50,000,000 $55,500 $50,000,001 and above to be negotiated Payment of fees earned by Consultant pursuant to this Part 1 shall be contingent on, and payable at the closing of the debt issue(s) undertaken to finance the Project. If the Agency elects to issue Housing Set Aside Bonds, an additional $9,500 will be added to the fee amounts listed above. Part 2: Other Services Unless agreed to otherwise, financial advisory services performed pursuant to Section 2 of this Agreement will be billed at the then current hourly rates. The table below reflects the rates in effect as of the date of execution of this Agreement. Personnel Hourly Rate Executive Officers ............................. ............................... $300.00 Principals........................................... ............................... $290.00 Senior Vice President ........................ ............................... $275.00 Vice Presidents .................................. ............................... $225.00 Assistant Vice President .................... ............................... $195.00 Senior Associate ................................ ............................... $150.00 Associate............................................ ............................... $125.00 Analyst................................................. ............................... $85.00 Administrative Assistants .................... ............................... $65.00 Clerical................................................. ............................... $35.00 City of Arcadia Redevelopment/Fieldman, Rolapp & Associates Exhibit B, Page 1 Project No. 08104 FRA103310.doc Expenses Expenses will be billed for separately and will cover, among other things, travel, lodging, subsistence, overnight courier, computer, internet posting and fax transmission charges. Advances made on behalf of the Agency for costs of preparing, printing or distributing disclosure materials or related matter whether by postal services or electronic means, may also be billed through to the Agency upon prior authorization. Additionally, a surcharge of 6% of the net fee amount is added to verifiable out -of- pocket costs for recovery of costs such as telephone, postage, document reproduction and the like. Limiting Terms and Conditions The above fee is based on completion of work orders within six months of the Agency's authorization to proceed, and assumes that the Agency will provide all necessary information in a timely manner. The fee shown above in Part 1 presumes attendance at up to 8 meetings in the Agency's offices or such other location within a 25 -mile radius of the Agency place of business as the Agency may designate. Preparation for, and attendance at Board of Directors meetings on any basis other than "by appointment" may be charged at our normal hourly rates as shown in Part 2, above. Abandonment If, once commenced, the services of the Consultant are terminated prior to completion of our final report for any reason, we are to be reimbursed for professional services and direct expenses incurred up to the time we receive notification of such termination at the standard hourly rates shown in Part 2. City of Arcadia Redevelopment/Fieldman, Rolapp & Associates Exhibit B, Page 2 Project No. 08104 FRA103310.doc