HomeMy WebLinkAboutRes 13-87 04/08/1987
RESOLUTION NOe
13-87
A RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT
BETWEEN THE VILLAGE OF MOUNT PROSPECT AND
R. V. NORENE & ASSOCIATES
WHEREAS, the corporate authorities of the Village of Mount Prospect
has determined that a new Public Works Facility shall be constructed;
and
WHEREAS, the corporate authorities of the Village of Mount Prospect
have determined that in order to finance the construction of a new
Public Works Facility bonds will be issued in the amount of
$4,000,000; and
WHEREAS, the corporate authorities of the Village of Mount Prospect
have determined that it would be in the best interest of the Village
to retain the firm of R. V. Norene & Associates as financial
consultants relative to the sale of bonds as stated.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF
THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS:
SECTION ONE: That the Mayor is hereby authorized to sign and the
Village Clerk authorized to attest her signature on the Agreement
between the Village of Mount Prospect and Re V. Norene & Associates
as financial consultants relative to the financing in connection with
the new Public Works Facility, which Agreement is attached hereto as
Exhibit "An.
SECTION TWO: That this Resolution shall be in full force and effect
from and after its passage and approval in the manner provided by
law.
AYES: Arthur, Farley, Floros, Murauskis, Van Gean, Wattenberg
NAYS: None
ABSENT:
None
PASSED and APPROVED this
8th
day of
Apri 1
, 1987.
ATTEST:
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CarolynðH. Krause
Mayor
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Carol Ae Fields
Village Clerk
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R. V. NORENE & Associates, Inc.
FINANCIAL ADVISORY SERVICES PROPOSAL
FOR THE
VILLAGE OF MOUNT PROSPECT~ ILLINOIS
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MARCH 9# 198ï
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Lake & Waukegan Office Center, Suite 215 . 1701 Lake Avenue. Glenview, IL 60025.312-998-9848
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R. V. NORENE & Associates, Inc.
March 9, 1987
President and Board of
Trustees
Village of Mount Prospect
Village Hall
100 South Emerson Street
Mount Prospect, Illinois
60056
Ladies and Gentlemen:
We understand that you propose to issue referendum approved bonds
to pay the cost of a new publ ic 1r1Orks f aci 1 i ty, We are pleased to
offer our financial advisory services to establish a financing program
and successfully market and deliver the necessary bonds. An outline of
the steps we feel will be necessary in connection with each sale
follows but, in any event, our services will be complete and will be
designed to reduce the financing costs of the project and to enhance
the Village's standing in the financial community,
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1.
We wi 11 immediatel y famil iari ze oursel \les with the pro jeet
through meetings with your staff and your attorneys and based
thereon establish a tentative financing timetable so that
close coordination will be ensured in the legal and financial
aspects of the financing.
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We wi 11 submi test imates to you of the annua 1 debt service
cost and wi 11 make recommendations regarding the financial
plan including traditional financing vehicles and, where
appl icable, the use of bond ant icipat ion fi nanci ng, variable
rate bonds, etc, These recommendations will be based upon our
review of the projected tax increment available for debt
service, your existing indebtedness and their authorizing
ordinances, your future bonding needs and the municipal bond
market.
3.
We will submit recommended debt retirement schedules for your
approval. Based upon the agreed upon financing plan, we will
meet with civic groups as you request to explain the financing
impact.
4.
We will review the existing reports of your other consultants
and, where applicable, make recommendations regarding changes
therein to ensure financial feasibility.
50
We will specify financial provisions including prior redemp-
tion rights, the flow-or-funds, and the issuance of additional
debt, to be included in the legal proceedings for a most
Lake & Waukegan Office Center, Suite 215 . 1701 Lake Avenue. Glenview, IL 60025 e 312-998-9848
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R.V. NORENE & Associates, Inc.
attractive and successful financing. These provisions will be
designed to assure the Village of its ability to complete the
financing of all of its future needs,
6,
\ve will research the financial information and economic data
bearing upon you as an issuer and the successful marketing of
the bonds and will assemble same, together with the details of
the bonds, into an attractive Official Statement which will
allow you to satisfy the market's current requirements for
full disclosure, Each Official Statement will be submitted to
you for approval prior to its distribution.
7.
We ~"ill advise you of the marketing procedures and
specifically recommend the time, place and method of
conducting the bid opening and sale of the bonds.
8.
When
a bond bid opening date has been established, we will:
a. arrange for the publication of the notice(s) of
sale in the national financial press,
b. make a recommendation relative to the advisability or
obtaining an investment rating and, if you elect to
request one, we shall make application on your behalf
including preparation of the necessary information.
c. recommend whether you should make application for
municipal bond insurance and~ if it is decided to
make such application, we shall submit the necessary
information.
d. distribute the Official Statement to a broad list of
prospective bidders, investment advisors and
investing institutions.
e, solicit additional bidders by contacting prospective
bidders in advance of the sale to ensure that there
are no unanswered questions regarding the issue.
9.
We will attend the bid opening where we will conduct the sale,
check the bids for accuracy and advise you of the accepta-
bility of the best bid received,
10< We wil] assist in and coordinate all details leading up to the
delivery of the bonds, including the printing of the bonds and
calculating the amount due at delivery.
11, Upon completion of the delivery of your bonds, we shall
compute a record of payments of principal and interest and
provide you with a convenient reference summary of the
financing.
r,¡c shan have no inteY'est in the puY'c:hase or Y'esaLe or yow"
obLigations nor shaLL we engage in any other activity which may
constitute a confLic:t of interest with perfoY'mance of our services for
you< rle /1JiU not obLigate you for any expenses except 11)1:th youP
appY'ova L.
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R. V. NOREN E & Associates, Inc.
You will be responsible for the fees of your attorneys! bond
counsel, engineers/architects/planners and are to pay all of your
ordinary expenses including advertising, printing and distribution of
Official Statements, the purchase (if applicable) of a rating for the
bonds, the purchase (if applicable) of municipal bond insurance, bond
registrar/paying agent fees and printing and delivery of the bonds, We
will assist you by arranging for the advertisement of the sale in the
national financial press and, where applicable, will obtain competitive
bids on the necessary printing.
For our services we are to be paid a fee which shall include our
own ordinary expenses, our necessary travel expenses between Mount
Prospect/Glenview/Chicago and our services in full which, in addition
to those outlined in this Agreement, shall include all necessary and
usual functions to complete each financing. In the event it is deemed
necessary to travel to New York City in connect ion wi th the Vi llage' s
application for an investment rating, we are to be reimbursed for our
out-of-pocket expenses and travel costs.
Our fee is to be based upon the par amount of bonds delivered and
calculated as follows: A minimum fee for each bond sale of $4,500 plus
$2.75 per $1,000 par amount. for all bonds delivered in excess of
$1,000,000. In determining the "par" amount of zero coupon bonds, par
shall be considered the proceeds to the Village and not the maturity
value.
Our fee is to be due at the time of the award of the low bond bid
and payable upon receipt of the proceeds of the issue. If for any
reason no bond avmrd is made, we shaìl only be due the previously
agreed upon fee of $1,500 applicable to our services in preparing the
financing for the April 7, 1987 referendum. While this Agreement is
intended to expire upon the completion of the last financing for the
presently contemplated project, the Village is given the option of
extending the terms hereof to any general obi igation financing that
occurs within 18 months of the last sale contemplated herein.
Respectfully submitted,
~. ~, ~ President
R. V. Norene & Associates, Inc.
RVN/lo
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The above proposal accepted this
You are instructed to proceed.
'611-
day of
p..PR.\ L
1987,
MJ~
ViLLage C7.-eY¡K
VILLAGE OF MOUNT PROSPECT, IL
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