HomeMy WebLinkAbout1988-09-20; City Council; Resolution 88-339~ '. 1
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RESOLUTION N!3. 88-339
A RESOLU'TIO3 OF THE: CITY COUNCIL OF TEE *CITY OF
CAXLSBAG., CALIFCRNIA, AUTHORIZING THE CITY ?TANAGER
TO ENTER IKTC AGREEXEWT FOR AXBITRkGE REEATE
CALCULATIOK SERVICES WITH JONES BALL BILL AND ItXITE
AICD APPROPRIATIXG FZWDS
'VBEREAS. the Tax Reform kt of 1986 established certain c
the City's ability zo earn axxi retain arbitrage earnings; and
"" wr,&EAS, these rules established by the federal governiner
by the IBS 2re extremely ccrqlex and require the services of an ex1
field of arbitrage calculations to guarastee ihat the City r'.d.iy cc
the IRS rules; and
!\%EREAS, tke City Council has determined that it is in ti
best kterest to sbtaln the cervices of an expert in the fleid i;f :
caiculaticns to help f,he City safegaard the tax exempt status cf e:
is sues ; azrd
hXEREAS s the City staff hac revieweri the services cr'fere!
agencies and finds those offered by jenes Hall Bill and iu'hite to b
quality;
XOW, THEREFORE, BE IT RESOLVET) by the City ZoznzF1 of ti11
Carlsbzd, Califorcia, that the ZiLy Manager is hereby authortzeci t'
the attached agreemer,t (Exhibits A) for arbitrage rebzte calcuiati,
with the firm of Sones 'rial1 iiill an6 Khite.
BE IT FLTTHER RESOLVED that: 1) the ~IXGW~ of $3 ,OCG is
appropriated from the City Council' s Contingency FzrLd, 2) tk axoz
is hereby appropriated from the Xedevelop~ent Fund balance for the
an6 3) City staff is hereby directed to iaclude the cost ~f the f i
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arbitrage rebate calculation services in the issue costs €or the Pal
Airport Ro26 Assessmect District.
PASSED, APPROVED. AND ADOFED at a regular meeting of the
City- Council held on the 20th day of September; 1958, by the €011~
to wit:
AYES: Council Members Lewis, Kulchin, Pettine, Mamaux an
NOES: None
ABSENT : None
"
ATTEST :
ALETHA LLeQ.AL L. FL46ENg*k\ /
(SEAL)
~
., '5 e 0 rr
AFTER EXECUTION PLEASE RETURN TO:
Jones Hall Hill & White,
A Professional Law Corporation
Four Embarcadero Center, Suite 1950 San Francisco, CA 94111 Attention: Ms. Janice S. Mazyck
AGREEMENT FOR REBATE CALCULATION SERVICES
THIS AGREEMENT, is made and entered into this-ay of -19E
and between the CITY OF CARLSBAD (herein called "City"), +he-GW3?%F%pdtbl
~~~-B~~~~P-~~~Y-~ker-.~.in-cal~-f~g~n~~'f) and J(
HALL HILL & WHITE, A PROFESSIONAL LAW CORPORATION, San Frar
California herein called "Attorneys");
WITNESSETH: - - - - - - - - - -
WHEREAS, the City&&eAgmey have issued and propose to issue obligs;
the interest on which is excludable from gross income (the "Bonds");
WHEREAS, in order to assure that interest on the Bonds is excludable from
income, it is necessary that the City -smd-&s-~ assure compliance
requirements relating to rebate of certain investment earnings to the United States;
WHEREAS, the City ad-Agenq-have determined that Attorneys are qualif
training and experience to perform the services required to assist the City 8s
Ageftey in complying with such requirements;
NOW, THEREFORE, the City anel-&-Agemy employ Attorneys, and Attc
accept such employment, upon the following terms and conditions:
ARTICLE I
DUTIES OF ATTORNEYS
Attorneys shall perform and render the following services to the extent nec
to provide for compliance with applicable provisions of the Internal Revenue Code o
and the Internal Revenue Code of 1986 in connection with the Bonds:
A. Perform rebate calculations required by applicable statutes and regulatio:
B. Provide instructions to the City anel-kke-Agewy concerning cornplianc
rebate requirements of applicable statutes and regulations.
C. Consult and cooperate with the City,-"e-Agemy, the trustees and :
agents for the Bonds and the consultants to, and employees of the City adthe-9
I. a* e e’
as necessary to provide for compliance by the City &*4geasy with the r(
requirements for the Bonds.
D. Upon the request of the City a~&&-Age~ey following any rebate calculz
and assuming compliance with rebate instructions provided by Attorneys, provide a
opinion stating that the exclusion from gross income of interest on the Bonds for fe
income tax purposes has not been adversely affected by reason of failure to comply
applicable provisions relating to the rebate requirement.
E. Provide periodic memoranda summarizing newly issued regulations, rn
and court decisions regarding the rebate requirement and describing their applicati
the Bonds and suggest modifications (if any) of legal documents and procedures re1
to the Bonds as may be necessary to conform to such regulations, rulings and
decisions.
ARTICLE I1
COMPENSATION AND COSTS
For the services of Attorneys set forth in Article I, and following the notificatj
the City d4bAgemy to Attorneys that the services set forth in this contract are
performed with respect to’ an identified issue of Bonds, the City ad&e+gertey sha
Attorneys an initial acceptance fee of $1,000 payable upon delivery of such issue of 1
or upon the date of such notification, if later, and an annual service fee of $2,000 pel
payable at the end of each bond year following performance of duties requir
Attorneys for such bond year.
In addition to the compensation set forth in the preceding paragraph, the Cit
tke-A- shall reimburse Attorneys for direct out-of-pocket expenses for Ft
Express or other courier, messenger or delivery services, photocopying and (upon rc
by the City and the Agency for the same) expenses for travel outside of the St
California in connection with the services rendered by Attorneys hereunder.
ARTICLE I11
RESPONSIBILITIES OF CITY ANQ”ENGY
The City a~d-&e-Age~ey shall cooperate with Attorneys in the performa
their services under Article I, shall provide Attorneys with information request
Attorneys regarding investments made by the City arrd-MZe- with proceeds
Bonds and amounts to be used for payment of the Bonds and shall assist Attorn
obtaining information regarding investments made by the trustee for the Bond!
proceeds of the Bonds and amounts to be used for payment of the Bonds.
e rl) 0.
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IN WITNESS WHEREOF, the City, +ke-..gempr and Attorneys have causec
Agreement to be executed, in duplicate, in their respective corporate names, by o
their respective duly authorized offkers, all as of the day and year first above writte~
W6126
CITY OF CARLSBAD
' ,I 5%
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BY l, /4L$, ,I ! "' I( - ;!; 'I ' ; z
i
.' //- , .; -/ ! ,x; , _.
'k? c 1.
Titld: %LAUDE A!' LEWIS,- Mayor
JONES HALL HILL & WHITE,
A Professional Law Corporation
/' //,/&E// /
BY &,fl&,& 1. Sharon Stahton White