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HomeMy WebLinkAbout1994-006 Water Wells New Production CITY OF CHUBBUCK RESOLUTION NO. 6-94 A RESOLUTION OF THE CITY OF CHUBBUCK, IDAHO, AUTHORIZING THE MAYOR TO ENTER INTO AN AGREEMENT TO SECURE THE SERVICES OF A FINANCIAL ADVISOR TO THE CITY FOR THE PURPOSE OF SELLING REVENUE BONDS TO DEFRAY COSTS OF NEW PRODUCTION WATER WELLS. WHEREAS, in April 1993 the City of Chubbuck was informed by the Idaho Division of Environmental Quality that water from two production wells was and still is contaminated with tetrachloroethylene in excess of maximum contaminant levels allowed by USEPA. WHEREAS, the City must proceed diligently and quickly to replace the lost production capability of the contaminated wells. WHEREAS, the City has contracted with CH2M Hill, Boise, Idaho to perform engineering services related to drilling test holes and production water wells. NOW THEREFORE, be it resolved by the City Council of the City of Chubbuck that the Mayor is authorized to enter into an agreement with First Security Bank to perform services as financial advisor to the City of Chubbuck. Services offered by First Security Bank as financial advisor are enumerated in their letter dated February 22, 1994. As compensation for the services described in said proposal letter the City will pay a financial advisory fee of $4,750.00, which fee is due and payable at closing for all bonds sold, Fees for bond council and judicial confirmation are separate and are not included under this agreement. PASSED APPROVED BY THE MAYOR AND COUNCIL OF THE CITY OF CHUBBUCK, THIS 22ND. DAY OF ~4ARCH , 1994. ATTEST: Clerk etc3 ! 7, res CITY OF CHUBBUCK RESOLUTION #6-94 February 22, 1994 City of Chubbuck P.O. Box 5604 Chubbuck, Idaho 83202 You have advised us, First Security Bank of Idaho, N.A., (the 'Bank') that the City of Chubbuck, Idaho, (the "City') would like to construct additions and improvements to the City's water facilities; and that there is a need for financial consulting services. The details and the nature of the additions and improvements contemplated, the financial consulting that might be necessary, and the extent and t)~)e of financing have not yet been finalized; but you would like us to assist the City in connection with the contemplated project and in arranging appropriate financing therefore including the marketing of any bonds that may be issued to finance construction of the proposed project. We offer to assist you in a financial advisory capacity by utilizing and making available to you the research, statistical, and underwriting staff of our organization to such extent as may be necessary and helpful. Our services, among others, will include the following: 1. We will study the existing financial structure of the City as it affects the financing of the facilities contemplated and will outline suggested courses of action to accomplish the necessary financing. 2. We will assist in preparing a time and responsibility schedule and will help you in complying with the requirements of Idaho Law to avoid delays in issuance and to ensure that legal steps are properly accomplished. 3. We will attend meetings of the City, consultants to the City and the general public to discuss and formulate plans for the project. 4. Upon your request, we will attend community meetings to assist in making information about the project available to patrons, the press, citizen committees, civic groups and other interested parties. 5. We will work with the City's engineers concerning financing nee~ and the timing for those needs. We will also prepare repons and other information that may be required by government agencies, etc. 6. We will work with a firm of bond attorneys who will issue their opinion as to the legality of the bonds and the proceedings authorizing their issuance. The bond attorneys will be paid by _ you; however, such costs will be capitalized in the bond proceed..The~e attorneys may be hired at a later date following your review of the finandal plan. m City of Chubbuck February 22, 1994 ?. If the City decides Io issue Bonds to finance the project, the Bank will undertake the following: a. Under your direction, we will prepare an OFFICIAL STATEMENT, private placement memorandum, or other disclosure materials describing the bonds to be sold and containing information about the City and its service area. The disclosure materials will be sent to those who might have an interest in purchasing the bonds, including bond dealers, banks, institutional investors, and others. All expenses involving the designing, drafting, editing, and mailing of the OFFICIAL STATEMENT or other disclosure materials will be paid by the City. b. We will have a representative present at a 'Due Diligence' meeting prior to printing and distributing the OFFICIAL STATEMENT or other disclosure materials for the purpose of verifying the accuracy of information which could be considered 'material' to any purchaser of bonds. Please understand that as a condition of marketing bonds, it will be necessary to authorize and direc~ appropriate officers and directors to execute a certificate for insertion in the OFFICIAL STATEMENT or disclosure materials and closing documents confirming the truth and accuracy of all information. c. We will prepare information necessary for the sale of bonds and will pay for running an informatory advertisement in THE BOND BUYER, if nec. essary, for regional and national sale exposure. (The complete notice of sale will be incorporated in the OF'FICIAL w STATEMENT.) We will make available to financial publications a copy of the OFFICIAL STATEMENT or other disclosure materials and requesting them to notify subscribers composed ot bond buyers, banks, etc., of the impending sale e. We will consult with you as to the timing of the sale of the bonds. f. We will prepare necessary materials for letters of credit, bond Insurance or other forms of credit enhancement. g. We will verify all issuance expenses and interest rates. The Bank will have a representative present at the sale of the bonds to assist in verifying the net interest amount submitted for the purchase of the bonds. 8. Should a rating on the bonds be deemed advisable, you will contract directly with the rating services for such rating and will make available the necessary information for the rating services. The Bank will advise and assist in compiling the required information and financial data necessary for the presentation to the rating services. 9. We will arrange for the printing of bonds that will be made available for your examination. The cost of printing the bonds will be paid by the City. 10. We will supervise the necessary escrow arrangements in scheduling delivery of the bonds to the purchaser from the City as Issuer and receipt of funds to the City. 11. We will, upon written request, provide an analysis of investment alternatives in writing and will assist with the reinvestment of bond proceeds in appropriate securities. City of Chubbuck February 22, 1994 12. We will make available the Trustee, Registrar, and Paying Agent services of the Bank As compensation for the above-described services, the City will pay a financial advisory fee of $4,750  at closing for all bonds sold. The Bank will be given the right to submit a competitive bid for the negotiated sale of any advanced or current refunding bonds issued pursuant to this Bond issue. It ts understood that the Bank's fee will not be payable until the bonds are actually approved, issued, and sold and the proceeds available for your disposition. It is understood that in no event are or will you, the City, be under obligation to issue any bonds or note~ whatever.  It is further agreed that, if legally permiss~lc, the Bank may, alone or in association with others, submit a bid for the purchase of the bonds when they are offered for sale. Our services consist solely in providing expert and experienced assistance as investment bankers and financial advisors. We do not render any legal, accounting, or actuarial advice.  Respectfully submitted, FIRST SECURITY BANK OF IDAHO, N.A. The foregoing is hereby accepted for and on behalf of the City Council, of the City of Chubbuck '~11 ~IAYOR CLERK