CCR1970026RESOLUTION # 26-70
RESOLUTION AUTHORIZING CONTINUED SERVICE OF
EHLERS AND ASSOCIATES, INC, - PART Ill OF PROPOSAL
a WHEREAS, Ehlers and Associates, Inc. submitted a four-part * proposal to the City for providing financial planning and services to the
City, Part I and I I of which have been authorized; and
WHEREAS, Part Ill of said proposal provides as follows:
Part 111 - Execution of Project Financing
I. Consult with attorneys of your choice relative to minutes, reso-
lutions and proceedings necessary for the issuance of obligations.
2. Consult with Federal, State or other officials in connection with
any grants or loans for the project.
3. Assist in the preparation of applications for Federal, State, or
other grants or loans.
4. Research, author, print and distribute a thorough, accurate and
attractive prospectus for the sale of the obligations.
5. Advertise the sale as required and in such other financial publi-
cations as will assure most competitive bidding for your obligations.
6. Where required or desirable, and in lieu of services specified in
Sections 4 and 5 above (prospectus, advertising), negotiate on behalf
of the government with interested purchasers for the sale of obligations
to obtain the best possible terms thereon for the community.
7. If required or advisable, prepare and forward financial material to
rating services to secure a satisfactory rating for the community's
obligations.
8. Attend the sale of the obligations, compute bids and advise you as
to their acceptability in the light of bond market conditions.
9. Supervise the printing and execution of the obligations.
IO. Coordinate our efforts with those of local counsel and recognized
bond approving attorneys of your choice to assure a valid approving
opinion as to the legality of the obligations.
r- II. Deliver the obligations, close the financial transaction and supe
vise delivery of the proceedsto the government.
12. As independent consultants having no financial interest in the
transaction, assist in the investment of the sale proceeds at the highest
possible yield to you consistent with safety and the money needs of the
commun i ty .
13. Provide a record book and al I necessary data for the use of the
government and its administrators through the maturity of the issue.
14. Maintain copies of all proceedings until the final maturity.
15. Periodically review the issue for possible advantages of refunding.
16. Refrain from any dealer or investor interest in obligations of
the community and receive no compensation in connection with the pro-
ject financing, either directly or indirectly, from any source other
than the compensation and reimbursement paid us by the community and
its government under the terms of this proposal.
In return for the services provided under Part I I I above in connect ion
with the financing of a project and for each issue or series of obliga-
tions we shall be entitled to an additional fee, due and payable upon
priate State or Federal agency of a grant or loan for the project,
as follows:
* the successfu I sale of the ob1 igat ions or comm ittment from the appro-
$8.00 per $1,000 (.80%) of the first $300,000 principal amount;
$4.00 per $1,000 (;40%) of the next $500,000 principal amount;
$2.50 per $1,000 (.25%) of the next $1,200,000 principal amount;
$1.25 per $1,000 (.125%) of any amount over $2,000,000.
From said fee we are to pay the costs of computer services furnished
or ordered by us, advertising the sale, preparation and distribution
of the sale prospectus, printing of the obligations and all travel
and overhead expense. All legal fees shall be paid by the government.
It is further agreed that you reserve the right to reject all bids
secured for the obligations without obligation to us for any fee
under this Part Ill except that if a bond sale is postponed or re-
tising each subsequent sale (including the cost of distributing
addenda to the prospectus) shall be reimbursed to the company by the
government at actual cost.
@ scheduled after having been advertised, the added expense of adver-
WHEREAS, the City determines it advisable to continue the
services of said consulting firm in accordance with Part Ill of said
proposa I .
BE IT RESOLVED that the City does hereby authorize Ehlers and
Associates, Inc. to continue as financial consultants to the City in
accordance with Part Ill of said proposal as above written, and in
accordance with the terms therein specified.
Passed this /G day of Yd , 1970.
/
Approved this day of I 1970.
& Mayor
ATTEST:
()F City Clerk v