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Home My WebLink About4.09 Bid for Trustee Bank CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: February 8, 1988 SUBJECT : Award of Bid for Trustee Bank EXHIBITS ATTACHED : Letter of Agreement for Services with Bank of . lifornia RECOMMENDATION Award Bid to the Bank of California and Authorize Staff to Sign All Necessary Agreement Documents FINANCIAL STATEMENT: One Time Costs Annual Fees Acceptance $3, 000 Legal 2 , 500 • Administrative $3, 000 Escrow 1 , 000 Arbitrage Calcs 2 ,000 Total $5 , 500 $6, 000* *Plus Additional Costs Per Item: Issuing Certificates $1 . 65/Certificate Terminating Certificates $3.50/Certificate Maintaining Accounts $3. 75/Holder Transferring Certificates $1 .65/Holder Investment Fund $35.00/Transaction Wire Transfers $25 .00/Transaction Tax Form Filing $2. 00/Holder Amount due upon closing : Acceptance Fee $3 , 000. 00 Legal Fees 2 , 500. 00 _ Administrative First Annual 3 , 000. 00 Total Due at Closing $8, 500. 00 Amount due at closing will be included as a cost of issuance. Annual costs will have to be budgeted in future years . DESCRIPTION As part of the refinancing of the 1985 Certificates of Participation, the City is required to contract with a Trustee to perform the functions of escrow agent , trustee , registrar , custodian, and paying agent in the refinancing and new issue of the Civic Center Certificates of Participation. In addition to these services, the City will also need to contract for the calculation of the arbitrage earnings . A report must be prepared each year for the Internal Revenue Service , which determines whether the City has exceeded its legal earnings limit on certain money from this financing. The excess amount , which is known as arbitrage, would need to be returned to the Federal Government. The estimated costs of having a law firm prepare this report is $2 ,000 per year and is included in the annual costs shown above . COPIES TO: ITEM NO. '°91 Q Rauscher Pierce Refsnes., Inc . and City Staff solicited bids from financial institutions for the purpose of performing the above services. The nine bids which are listed below: 1 . Bank of America 2. Bank of California 3. Bankers Trust Company of California - 4. First InterState 5. Chemical Bank Securities and Trust Services 6. Dai-Icihi Kangyo Bank 7 . Security Pacific National Bank 8. Seafirst 9. Wall Street Trust California Based upon present value calculations , there are three companies that are extremely competitive when compared to the others: 1 . Wall Street Trust California 2 . Bank of California 3. Bank of America After clarifying certain charges and checking references, Staff recommends that the City Council award the bid for trustee services , etc. , to The Bank of California. • FEB 04 '88 09:54 BANK OF CALIFORNIA SAN FRANCISCO P.2 I BAN-KCAL TEE BANK OF CALIFORNIA February 4, 1988 Phillip Molina Finance Director City of Dublin 6500 Dublin Blvd. , Suite 101 Dublin, CA 94568 . Subject: Approximately $17,000,000 Principal Amount Certificates of Participation. Set forth below is our proposal to act as Trustee, Paying Agent and Registrar in connection with the above issue. This Proposal supersedes any previous Proposals. The proposal is being made prior to our review of documents, and is contingent upon our final acceptance. ., TRUSTEE INITIAL FEE: $3,000.00 For administrative and legal review of documentation. (The fees of outside counsel, if any, are in addition to the above acceptance fee. The fee will not exceed $2,500.00) . B$USTEE ANNUAL ADMIXTATRATION FEB: $3,000.00 To insure that the requirements of the Trust Indenture or Agreement are complied with on a daily basis. AUTOMATIC CASH MANAGEMENT SERVICE: NO CHARGE Our automatic cash management service maximizes the earnings of accounts by ensuring cash balances are always invested. The following, is a brief summary, of the funds available: The HighMark Group U.S. Treasury Obligations Fund - Invested in short term instruments which are direct obligations of U.S. Treasury. The HighMark Group Government Obligations Fund - Invested in short term instruments issued and guaranteed by the U.S. Government or its agencies. The HighMark Group Diversified Fund -- Invested in high quality money market instruments such as certificates of deposit, commercial paper, banker's acceptances, short term Treasury securities, and repurchase agreements. . . 400 CALIFORNIA STREET•P.0.AOX 15000•SAN A k I.M:A.ra,ieroMtA eiva.lm *eew�nn rr./r..(/.e.J 3wJ:•1LI:J I:L'::Wa.fIN/l.tsl/IMMr.we+...w'..;wl.w..n.../fl #.w.*..s2l rrx...J...l....s.✓.r.0«.r..... . ... ...s/...w...w.r..wlr/..+r`n......+YIr.....AIY iY'i.va.v.J1.=/K"..':r_..1=e w..r -. — FEB 04 '88 09:55 BANK Cam' ^ALIFORNIA SAN FRANCISCO P.3 Mr. Phillip Molina February 4, 1988 Page Two INVESTMENT OF FUNDS: (if applicable) For the placement, safekeeping, collection of interest, and costs of redemption for each purchase or sale. (Some institutions may have a per transaction fee as well. ) Each directed investment: $ 35.00 CONSTRUCTION FUND: (if applicable) $1,000.00 Annual administration fee, during the construction - period. (Pro-Rated for actual number of months of construction period) . - WIRE TRANSFERS: (if applicable) For each directed wire transfer: $ 25.00 OPERATIONAL CHARGES: Registration, Issuance or Transfer. - each piece $ 1. 65 For each certificate retired - $ .50 Annual maintenance of accounts, per registered holder: $ 3 .75 (Includes the payment of semi-annual registered interest, correspondence and research, documentary transfers, replacement of lost or missing checks and reconcilement of issued checks. ) $375.00 minimum charge per year - Replacement of Certificates (lost, stolen or destroyed) each transaction $ . 25. 00 Payment of Certificates upon maturity or call each certificate $ 3.00 TAX REPQRTING: (if applicable) Filing of tax forms. - each registered holder - $ 1.75 Solicitation of tax identification numbers. - each $ .25 SINKING FUND AND REDEMPTION: (if applicable) Selection of certificates and preparation of notice of redemption - each redemption $ 500.00 ESCROW AGENT: $1,000.00 Annual fee for services as Escrow Agent in conjunction with defeasance of 1985 Certificates of Participation. • - FEB 04 '88 09:56 BANK OF CALIFORNIA SAN FRANCISCO `. P.4 Mr. Phillip Molina February 3, 1988 Page Three AA $rE REBATE CALCULATION 1�,ND REPORTING: (if applicable) Arbitrage rebate calculations and reporting will be done by Jones Hall Hill & White. The annual cost for this service will be $2, 000.00 The fee includes the issuance of a legal opinion yearly, as to the tax free status of the bond issue. " ADDITIONTAL SERVICES: The above fees are in connection with services mentioned. Should additional services be required, not set forth above, or services during default, a reasonable charge for those services will be made. DuT OF POCKET EXPENSES: Out of pocket expenses, such as (but not limited to) ; postage, disbursements and advances incurred or made pursuant to the performance of duties, outside counsel fees, co-agent fees (if any) , costs of printing, publication, and the microfilming and returning of cancelled certificates, are in addition to the above fees. Fees are subject to adjustment by providing at least ninety (90) days advance written notice. Please acknowledge acceptance of this proposal by: - Notifying us as soon as possible. - Having an authorized person sign and return a copy of this proposal. We appreciate the opportunity to submit this proposal and look c forward to be of service to you. sincerely, y Jeremi Vice President (415) 765-2446 City of Dublin . MAYOR OR CITY MANAGER