HomeMy WebLinkAboutR-2001-068 Seattle-Northwest Securities Agreement (agreement extension)RESOLUTION NO. R-2001- 68
A RESOLUTION authorizing and directing the City Manager of the City of Yakima
to execute a bond managing underwriter's agreement with Seattle -
Northwest Securities Corporation.
WHEREAS, the City anticipates the sale of bonds, including but not limited to
Unlimited Tax General Obligation Bonds, Limited Tax General Obligation Bonds, Local
Improvement District Bonds, and Revenue Bonds; and
WHEREAS, the City requires underwriting service concerning said bonds; and
WHEREAS, Seattle -Northwest Securities Corporation has provided these bond
underwriting services pursuant to a contract executed with the City in September 1995
but which contract has now expired; and
WHEREAS, Seattle -Northwest Securities Corporation is willing to continue to
provide said bond underwriting services to the City in accordance with the same
general terms and conditions as the previous contract with the City, a copy of which is
attached hereto for your reference; and
WHEREAS, the City Council deems it to be in the best interest of the City of
Yakima to enter into a new bond managing underwriter's agreement with Seattle -
Northwest Securities Corporation; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager of the City of Yakima is hereby authorized and directed to
execute a bond managing underwriter's agreement with Seattle -Northwest Securities
Corporation. The City Attorney shall approve the final form of the bond managing
underwriter's agreement.
ADOPTED BY THE CITY COUNCIL this 17th day of April, 2001.
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y Place, Mayor
ATTEST:
City Clerk
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ITEM TITLE:
SUBMITTED BY:
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 1
For Meeting of April 17, 2001
Resolution Authorizing Excecution of a Managing Underwriter's
Agreement with Seattle Northwest Securities
Department of Finance & Budget
CONTACT PERSON/TELEPHONE: Timothy J Tinance De.artment 576-6639
Cindy Epperson, Accoun
anager 575-6070
SUMMARY EXPLANATION:
This Resolution authorizes execution of the attached Managing Underwriter's Agreement with
Seattle Northwest Securities (SNC) to underwrite bonds. The former contract has expired,
however, it contained an extension clause. The City has enjoyed an excellent working
relationship with Seattle Northwest Securities, and they have an historical perspective
regarding the City's debt issuances.
There is not a fixed payment schedule for a bond issuance. The underwriter "shall receive
compensation solely from the difference between the price at which the Bonds are to be resold
to investors and the price paid to the City for each issue of the Bonds by the underwriter."
Because Seattle Northwest Securities is the largest municipal bond underwriter in the region,
they have achieved an economy of scale that keeps their charge per issue reasonable.
The City has some complex financing arrangements in various stages of planning (i.e. the
Convention Center Expansion, and others), and Seattle Northwest Securities has already been
heavily involved in these plans. To maintain continuity and avoid the unnecessary delay of
processing the Finance Department's workload if this were to be bid, staff is respectfully
requesting that we extend the Managing Underwriter's Agreement with SNC.
Resolution X Ordinance Contract X Other (Specify)
Funding Source:
APPROVED FOR SUBMITTAL:
City Manager
STAFF RECOMMENDATION: Adopt Resolution
11
BOARD/COMMISSION RECOMMENDATION:
COUNCIL ACTION: Resolution adopted. RESOLUTION NO. R-2001-68