Resolution 1992-90
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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.
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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
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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.
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(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.
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(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:
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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
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