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Resolution 1992-90 . ..... -" . . RESOLUTION NO. 92 - 90 RESOLUTION APPROVING AGREEMENT FOR LEGAL SERVICES NORTH FOREST STREET ASSESSMENT DISTRICT CITY OF GILROY The city Council of the city of Gilroy resolves: This City Council approves that certain agreement between the CITY OF GILROY, and STURGIS, NESS, BRUNS ELL & SPERRY a professional corporation, for services of that firm as Special Bond Counsel for North Forest Street Assessment District, City of Gilroy, county of Santa Clara, State of California, dated December 21, 1992, and attached to this resolution. The Mayor is authorized to sign the agreement and the city Clerk is authorized to attest its execution. * * * I HEREBY CERTIFY THAT the foregoing resolution was duly and regularly adopted and passed by the City Council of the city of Gilroy, California, at a regular meeting thereof held on the 21st day of December, 1992, by the following vote of the members thereof: AYES, and in favor, thereof, Councilmembers: GILROY, HALE, KLOECKER, NELSON, VALDEZ and GAGE. NOES, Councilmembers: None ABSENT, councilmembers: ROWLISON AP~ll Jp Mayor RESOLUTION NO. 92 - 90 .-.-....--- . .. . ",. - . AGREEMENT FOR LEGAL SERVICES NORTH FOREST STREET ASSESSMENT DISTRICT CITY OF GILROY This is an agreement for legal services between the CITY OF GILROY, a municipal corporation of the State of California, referred to as Client, and STURGIS, NESS, BRUNSELL & SPERRY a professional corporation, Attorneys at Law, Emeryville, California, referred to as Bond Counsel. 1. Client retains Bond Counsel as special counsel to perform the following legal services relating to the North Forest Street Assessment District, City of Gilroy, County of Santa Clara, State of California. (a) Preparation of all forms of resolutions, notices, affidavits, and other documents required by the Municipal Improvement Act of 1913, including the legal format of the engineer's report required by Section 10204. (b) The preparation of written instructions to Client's Clerk and other staff members concerning the performance of legally required duties. (c) Review of documents prepared by Client's engineering staff or consulting engineers, including boundary map, assessment diagram, assessment roll, and the general provisions of construction specifications. (d) Attendance at the public hearing on the engineer's report (including continuances of the hearing, if any). (e) Attendance at all other public meetings of Client at which matters relating to the assessment district are considered, except routine matters. (f) Attendance at staff meetings or meetings of property owners, upon the request of the Client, after reasonable notice. (g) Telephone consultation with staff members and property owners to answer legal questions about the assessment proceedings. (h) Preparation of the notice inviting bids and construction contract, if required, and review of contract bonds and insurance documents. (i) Arrangements for the printing of improvement bonds to represent unpaid assessments, including, if required, the printing of a bond register and assessment installment notices. (j) The preparation of a record of assessment installments for the use of the County AUditor, if required. .~. '- -. . . (k) Arrangements for the sale of improvement bonds either by negotiation or by public bid, at the option of Client, including a review of financial disclosure requirements and, if required, the preparation of the notice inviting bond bids. (1) The preparation of bond delivery documents. (m) The rendition of a legal opinion on the validity of the improvement bonds and the proceedings leading to their issuance. (n) Preparation of a transcript of the legal proceedings in loose-leaf form fur the use of the Client. (0) Preparation of the required reports to the California Debt Advisory Commission (pursuant to Section 8855 et seq. of the Government Code) and to the Internal Revenue Service (pursuant to section 149 of the Internal Revenue Code of 1986) . 2. The services of Bond Counsel under this agreement shall not include the following: (a) Legal services in connection with the acquisition of interests in real property, either through negotiation or through exercise of the power of eminent domain. (b) Legal services in connection with litigation. The performance by Bond Counsel of services excluded by this paragraph, if required by Client, shall be under separate oral or written agreement. 3. In consideration of the services set forth in paragraph 1, Client shall pay to Bond Counsel the following fee and costs: (a) The legal fee of Bond Counsel shall be a scaled percentage of the amount assessed as set forth in the engineer'S report as finally approved under Section 10312 of the Streets and Highways Code. (b) The legal fee shall be an amount equal to two and one-half percent (2 1/2%) of that portion of the amount assessed not exceeding $1 million, plus one percent (1%) of that portion of the amount assessed exceeding $1 million, but not exceeding $10 million, plus one-half of one percent (1/2%) of that portion assessed exceeding $10 million, but not exceeding $20 million, plus one-fourth of one percent (1/4%) of all amounts assessed exceeding $20 million. The fee shall be not less than $10,000. 2 (c) In addition to the legal fee specified in paragraph (b) above, if bonds representing unpaid assessments. are issued in more than one issue, the legal fee shall include $5,000 for each issue after the first. (d) Costs shall be reimbursed to Bond Counsel as follows: ~- - . . 1) Filing and recording fees and publication costs advanced on behalf of Client. 2) The cost of preparing auditor's record, if required: 7 cents per assessment for each year of the bond issue, with a minimum of $30.00. 3) Costs of Federal Express or similar delivery service. 4) Cost of preparation of notices to property owners. The cost of other services for which Bond Counsel makes arrangements under this agreement (such as bond printing costs) shall be billed to the Client and shall be paid by Client directly to the payee. (e) Payment by Client of the legal fee is contingent upon the levy of assessments and the sale and delivery of improvement bonds representing unpaid assessments in the assessment district. If for any reason, assessments are not confirmed and bonds delivered, Bond Counsel shall be paid no legal fee. (f) Both the legal fee and costs are payable upon delivery of the bonds. If bonds are issued in more than one issue, the cumulative amount payable after each delivery shall be calculated under subparagraph (b) by reducing the amount of the assessment by the par value of bonds authorized but not issued; the amount payable after each delivery shall be the cumulative amount payable less amounts previously paid. 4. Bond Counsel certifies that it has no interest, either direct or contingent, in any property or contract arising from or affected by the assessment district, except as Bond Counsel under this agreement. Bond Counsel does not represent any owner of property within the proposed boundaries of this assessment district, and has not received a fee from any source for services connected with the project. DATED: December 21, 1992 CITY OF GILROY, a municipal ::rpory~/q:Of Mayol1'l California By STURGIS, NESS, BRUNS ELL & SPERRY a professional corporation By ~- 0.0 ~ g l~ ilip D. AS(Jaf 3