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