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HomeMy WebLinkAboutRESOLUTION - 3-60 - 4/11/1960 - EMPLOY PAUL D SPEERRESOLUTION NO. 3-60 RESOLUTION EMPLOYING PAUL D. SPEER WHEREAS, the President and the Board of Trustees of the Village of Elk Grove Village, Cook County, Illinois, believe it is to the best in- terest of the Village to employ a municipal finance consultant for the pur- pose of advising them and promoting bond issues now in contemplation; and WHEREAS) Paul D. Speer, a municipal finance consultant, has of- fered his employment to said Village on terms specified in letters directed to the President and Board of Trustees dated January 5, 1960 and March 30, 1960 (the letter of March 30) 1960 amending the letter of January 5, 1960 in certain respects as indicated therein); and WHEREAS, said letters have been filed with the Village Clerk of the Village of Elk Grove Village and are hereby incorporated by reference; NOW, THEREFORE, BE IT RESOLVED by the President and the Board c.f Trustees of the Village of Elk Grove Village that Paul D. Speer be and is hereby employed as Municipal Finance Consultant for the duties and on the terms and for the period specified in his letters of communication dated January 59 1960 and March 30, 1960. AND BE IT FURTHER RESOLVED that this resolution shall be in full force and effect from and after its adoption and approval according to law. Vote: Ayes 6 Naso -0-, Absent -0- ADOPTED this 11th day of April, 1960 APPROVED this 11th day of April, 1960 ATTEST., 2%' Dolores L. Oberg Acting Village Clerk /s/ Charles A. Hodlmair President THE FOLLOWING IS THETEXT OF THE LETTERS CF JANUARY 5, 1960 and MARCH 30, 1963 referred to above: January 5, 1964 PAUL D. SPEER Municipal Finance Consultant 33 S. Clark Street Chicago 3, illinois We understand that you contemplate a series of permanent capital improvement projects in your Village including the acquisition of the existing privately owned sewerage system, acquisition of Fire Department equipment and housing therefor, possible construction of other public buildings and various improve- ments not listed herein. As independent and professional municipal finance consultants, we hereby offer you our services to be rendered from time to time in connection with all maters pertaining to the financing of any such improvements. In order to maintain an independent, objective and professional viewpoint we refrain as a matter of firm policy from any purchase or sale of any bonds at any time for our own account. Since we never act as underwriters we are -1- Res. #3-60 never in competition with other underwriters and thus are able to attract bids from all members of that industry nationally and locally. Our services are to commence immediately upon notification by you of our employment. These services are in part outlined herein, but in any event, are to be adequate to carry out all necessary steps of financing. This proposal is not an offer to furnish any services of others such as engineers, accountants or attorneys, nor to furnish any material such as printing, advertising or election material. We will, at your request and only upon your authorization, recommend competent persons in each of those fields as your needs may indicate and if desired will negotiate with any of them for you. We will also procure such materials and services as you direct us to do in order to take advantage of our experience in securing same. In any event, all expenses so incurred shall be the direct expenses of your Village payable in such manner as each specific procurement may provide and will not be billed to or through us and no profit will be se- cured by us therefrom. Our first step upon being employed will be to meet with your officers and committees and your appointed officials in order to familiarize ourselves with the steps already taken in connection with each of these projects and your desires as to which projects are to be accomplished and in what order. Based upon such studies we will recommend methods of financing the ac- complishment::of each such project and any alternate methods thereof and will discuss such methods and alternates with you and your officers and advisers in such detail as necessary in order to secure your decisions thereon after clear understanding. To the extent requested we will assist you in negotiations for the acquisi- tion of any of these projects and such negotiations as may be indicated with other public agencies. We will advise you in connection with such acquisi- tions as to our opinion regarding the impact on rates or taxes and the limitations thereby imposed on such projects as to the extent or cost thereof* When satisfactory agreements have been reach respecting the acquisition or construction of such projects, we will present for your consideration final financing plans separately or in combination, which plans will include re- commended protective provisions covering adquisition, construction, improve- ments, extensions and reserves, plus the recommended schedules for repayment, maximum interest rates and other features. Wu will also recommend the time or times and manner of offering such financing in the markets. When the final financing program has been agreed upon we will prepare the specifica- tions therefor and submit same to your attorneys and your bond counsel and will confer with them as often as necessary during their drafting of the ordinances necessary therefor. We will alsr confer with your engineers in order that they may prepare their opinions regarding such studies and esti- mates as in our opinion may be necessary for successful financing and Hilly informing your citizens regarding each project. When the necessary ordinances have been adopted and become final we will assemble all of the data into a final form of official statement and, upon your approval thereof, will have same prepared and will circulate it to as wide a list of investment bankers, investing institutions, rating services and others who may be interested, as we believe will produce the best re- sults for your Village. This official statement will be prepared in as at- tractive a manner as possible and will set forth, in such detail as we believe indicated, facts concerning your Village, the particular projects and all financial data bearing thereon, engineering data with projections of revenues and expenses, and a summary of the ordinances pertaining to any of the bonds or related materials. We will by personal contact and meetings, if necessary, endeavor to secure the widest possible acceptance of the bonds so that the bids at the sale may reflect the lowest interest terms to you. We will at the sale recommend which bid or bids, if any, should be accepted and will asist you in the final preparation and delivery of the bonds. The foregoing is not meant to exclude any steps which we feel may be neces- sary in order to adequately prepare and successfully conclude the financing. Our services at all times will be complete and will be rendered on behalf of the Village only and with no view to profit except our clearly stated fees outlined herein. Your Village will pay all of its own expenses, including those which we may incur on your behalf, but only when authorized by you, and in addition will pay, from the proceeds of the bonds and at the time of their issuance, our fees as follows: -2- Res. #f3 -6L 1. For all revenue bonds issued in connection with any of the projects, a sum equal to $3.50 for each $1,000 par value of such bonds. 2. For all general obligation bonds issued in connection with any of the projects a sum equal to X2.50 for each 4v1,600 par value of such bonds. 3. In the event of the issuance of any special assessment bonds, a sum equal to $10.00 for each 61,000 of cost of the project. 4. The minimum fee in connection with any bond issue shall be 41,000. provided that where one or more issues of the same type are offered forsale at the same time the mini- mum fee shall apply to the issuance of all bonds of such type as a unit. 5. No fees are to be due or payable for any of the projects which are abandoned or not completed whether by decision of the Village or failure of referendum. 6. This contract is to be in full force and effect for a period of two years from the date of its acceptance and for as much longer as may be necessary to complete the issu- ance of any bonds for which proceedings have theretofore b been adopted by the Village Board, and further provided that the Village shall have the right to extend the agree- ment from time to time for an additional period not ex- ceeding one year. This proposal is offered for your consideration and acceptance within a rea- sonable length of time. Respectfully submitted, /s/ Paul D. Speer The above proposal as modified per letter of March 30, 1960 accepted by resolution of the President and Board of Trustees this 11th day of Apri1,1960. Village of Elk Grove Village Attest: /s/ Dolores L.Oberg by Isl Charles A. Hodlmair, President Clerk March 30, 1960 I underutand that the Board of Trustees at its meeting on Monday, March 28, approved our proposal as financial consultants to the Village subject to modification of certain provisions therein. The undersigned has discussel the modifications with your attorney and submits this letter as a modifica- tion of our proposal of January 51 1960 as set forth herein. 1. Under the heading of fees, Item 3 respecting special assessment bonds is to be eliminated. 2. Item It is to be modified by adding the following sentence: "In connection with any general obligation bond issue or combination of issues, totaling $400,000 or less, sold at one time, the difference between this minimum fee and the fee specified in Item 2 or $500., whichever difference is smaller, shall be credited against our fee in connection with any sub- sequent general obligation bond issue." 3. In connection with Item 6, the intent was and is that we shall earn our fee in connection with any bond issue necessary to complete the project undertaken with our services regardless of whether the date of completion was within the time limit of the contract or not. Since bur fees are payable from the proceeds of the bonds we do not believe that their pay- ment would require previous budgeting. With that understanding the expiration period of two years in Item 6 should be changed to May 1, 1961. At the time of executing the acceptance of our proposal of January 5, 1960 there should also be executed an acceptance of this modification. Respectfully submitted, Isl Paul D. Speer The above modifications of proposal dated January 5, 1960, accepted by resolution of the President and Board of Trustees this 11 day of April, 1960. ATTEST: Dolores L. Oberg VILLAGE OF ELK GROVE by Charles A. Hodlmdir Clerk -3- President #3..60