I. RECOMMENDATION:
Financial Services Director recommends the City Council adopt Council Resolution No. 4027 authorizing the commencement of proceedings in connection with the financing of a fire truck and the retaining of the financing team.
II. BACKGROUND:
At the May 6, 2021 meeting of the City Council, the Council approved the purchase of Fire Equipment including a 2019 Spartan/Smeal 110’ Rear Mount Ladder Truck (the “Fire Truck Project”). The Council approved the purchase of the Fire Truck Project payable from General Fund monies with the intent that the General Fund would be reimbursed for such purchase at a later time from the proceeds of a future financing secured by the Fire Truck Project.
Resolution No. 4027 commences proceedings in connection with the anticipated financing noted above.
III. DISCUSSION:
Adoption of this resolution gives the City the ability to reimburse its General Fund for the Fire Truck Project purchase with proceeds from a related financing so long as such payment was made in the 60 days prior to the passing of this resolution.
Additionally, adoption of this resolution approves retaining Wulff, Hansen & Co. as municipal advisor, Brandis Tallman, A Division of Oppenheimer & Co. as Placement Agent, and Quint & Thimmig LLP as Bond Counsel. The professional services agreements for these service providers are subject to approval by the Financial Services Director. Adoption of this resolution allows the financing team to begin drafting of necessary documents in connection with the financing of the Fire Truck Project.
IV. ALTERNATIVES:
Council could decline to adopt the Resolution.
V. FISCAL IMPACT:
Adopting the resolution allows the City to reimburse its general fund for funds expended in purchasing the Fire Truck Project.
The City has worked with this financing team in the past and their compensation for services are anticipated to be contingent on the successful closing of the Fire Truck Project financing. |