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HomeMy WebLinkAbout90-0912 Bond series 1989-A qo-d9Ia RESOLUTION ACCEPTING THE PROPOSAL OF CHAPMAN AND CUTLER FOR ARBITRAGE CALCULATIONS FOR $2,500,000 GENERAL OBLIGATION BONDS, SERIES 1989-A BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Larry L. Rice, City Manager, be and is hereby authorized and directed to accept the proposal on behalf of the City of Elgin of Chapman and Cutler to calculate and report arbitrage earnings on $2,500,000 General Obligation Bonds Series, 1989-A, a copy of which is attached hereto and made a part hereof by reference. George VanDeVoorde, Mayor Presented: September 12, 1990 Adopted: Vote: Yeas Nays Recorded: Attest: Dolonna Mecum, City Clerk L Law Offices of CHAPMAN AND CUTLER Theodore S. Chapman 111 West Monroe Street, Chicago, Illinois 60603 2 North Central Avenue -1943 TWX 910-221-2103 Telex 206281 Phoenix,Arizona 85004 iry E.Cutler FAX (312)701-2361 (602)256-4060 Telephone (312) 845-3000 100 Peachtree Street, N.W. Atlanta, Georgia 30303 (404)420-1420 August 14, 1990 , 50 South Main Street Salt Lake Cite, Utah 94144 (801)533-0066 City of Elgin 150 Dexter Court Elgin, Illinois 60120 Re: $2, 500 ,000 General Obligation Bonds, Series 1989-A Dear Sirs : Pursuant to the terms of this letter agreement it is agreed that Chapman and Cutler will provide rebate calculation services as described herein in connection with the $2, 500,000 General Obligation Bonds, Series 1989-A (the "Bonds" ) issued by the City of Elgin, Kane and Cook Counties, Illinois (the "Issuer" ) . Scope of Services We will provide on an annual basis a calculation of the amount, if any, subject to rebate under §148 ( f) of the Internal Revenue Code of 1986 (the "Code" ) . We will also provide to you an opinion of Chapman and Cutler that such calculations have been performed in accordance with §148 (f) of the Code and the regula- tions promulgated thereunder . Such calculations and opinion will be based on information to be supplied to us by the Issuer . As required by §148(f) of the Code, the calculations will determine the excess of the amount earned on all non-purpose investments, over the amount which would have been earned if such non-purpose investments were invested at a rate equal to the yield on the Bonds ( the "Excess" ) plus any income attributable to the Excess. The initial calculations hereunder will be provided on the later of the first anniversary of the issuance of the Bonds or 30 days from the date on which we receive all of the data from the Issuer necessary to make such calculations. We will provide subsequent annual calculations to you within thirty days of the date on which we receive the related data. We will supply to you forms detailing the data to be supplied. La�Offices of CHAPMAN AND CUTLER August 14 , 1990 Page 2 You should be aware that our services under this agree- ment will not include an opinion as to the tax-exempt status of the Bonds or as to compliance with the terms of the covenants and documents under which the Bonds were issued. The rebate calcula- tion services described here involve only the calculation of the rebate amount described above, in accordance with applicable law, based solely on the information supplied to us . Should you desire that we make a review of the Bond documents or otherwise provide advice or interpretation with respect to the Bond issue we would be willing to do so on an hourly charge basis . Chapman and Cutler ' s calculation and opinion services under this agree- ment are provided solely to the party or parties hereto; the owners of the Bonds are not third party beneficiaries of such services and neither they nor other third parties may rely on such services . The software and all other products and mate- rials , other than the data supplied by the Issuer , shall remain the exclusive property of Chapman and Cutler . Fees It is agreed that for providing the calculation ser- vices under this agreement you shall pay Chapman and Cutler an acceptance fee of $500 and an annual calculation fee of $3 , 000 . The acceptance fee, which covers set-up costs, will be due at the execution of this agreement; the calculation fee will be due upon receipt of the rebate report and opinion letter . Termination You may terminate our services at any time for cause by providing to us written notice 30 days in advance of such termi- nation. You may not terminate our services without cause prior to the date on which we provide the calculations required in connection with the initial anniversary of the issuance of the Bonds ; thereafter you may terminate our services without cause at any time upon 120 days ' written notice to us . • La.Offices of CHAPMAN AND CUTLER August 14, 1990 Page 3 We may not resign our duties to perform calculation services prior to providing the calculations required in connec- tion with the initial anniversary of the issuance of the Bonds; thereafter we may resign upon 120 days ' written notice to the Issuer . Sincerely, CHAPMAN AND CUTLER By Colleen C. Collins Arbitrage Rebate Manager Accepted by: City of Elgin Kane and Cook Counties, Illinois Authorized Officer • Law Offices of CHAPMAN AND CUTLER Theodore S. Chapman 111 West Monroe Street, Chicago, Illinois 60603 2 North Central Avenue 1877-1943 TWX 910-221-2103 Telex 206281 Phoenix, Arizona 85004 Henry E. Cutler FAX(312) 701-2361 (602)256-4060 1879-1959 Telephone (312) 845-3000 100 Peachtree Street, N.W. Atlanta, Georgia 30303 (404)420-1420 August 14, 1990 50 South Main Street Salt Lake City, Utah 84144 (801)533-0066 City of Elgin 150 Dexter Court Elgin, Illinois 60120 Re: $2, 500 , 000 General Obligation Bonds, Series 1989-A Dear Sirs : Pursuant to the terms of this letter agreement it is agreed that Chapman and Cutler will provide rebate calculation services as described herein in connection with the $2, 500, 000 General Obligation Bonds, Series 1989-A ( the "Bonds" ) issued by the City of Elgin, Kane and Cook Counties, Illinois ( the "Issuer" ) . Scope of Services We will provide on an annual basis a calculation of the amount, if any, subject to rebate under §148 ( f) of the Internal Revenue Code of 1986 ( the "Code" ) . We will also provide to you an opinion of Chapman and Cutler that such calculations have been performed in accordance with §148 ( f) of the Code and the regula- tions promulgated thereunder . Such calculations and opinion will be based on information to be supplied to us by the Issuer . As required by §148 (f) of the Code, the calculations will determine the excess of the amount earned on all non-purpose investments, over the amount which would have been earned if such non-purpose investments were invested at a rate equal to the yield on the Bonds ( the "Excess" ) plus any income attributable to the Excess . The initial calculations hereunder will be provided on the later of the first anniversary of the issuance of the Bonds or 30 days from the date on which we receive all of the data from the Issuer necessary to make such calculations. We will provide subsequent annual calculations to you within thirty days of the date on which we receive the related data. We will supply to you forms detailing the data to be supplied. Law Offices of CHAPMAN AND CUTLER August 14, 1990 Page 2 You should be aware that our services under this agree- ment will not include an opinion as to the tax-exempt status of the Bonds or as to compliance with the terms of the covenants and documents under which the Bonds were issued. The rebate calcula- tion services described here involve only the calculation of the rebate amount described above, in accordance with applicable law, based solely on the information supplied to us. Should you desire that we make a review of the Bond documents or otherwise provide advice or interpretation with respect to the Bond issue we would be willing to do so on an hourly charge basis . Chapman and Cutler ' s calculation and opinion services under this agree- ment are provided solely to the party or parties hereto; the owners of the Bonds are not third party beneficiaries of such services and neither they nor other third parties may rely on such services. The software and all other products and mate- rials , other than the data supplied by the Issuer , shall remain the exclusive property of Chapman and Cutler . Fees It is agreed that for providing the calculation ser- vices under this agreement you shall pay Chapman and Cutler an acceptance fee of $500 and an annual calculation fee of $3,000 . The acceptance fee, which covers set-up costs, will be due at the execution of this agreement; the calculation fee will be due upon receipt of the rebate report and opinion letter . Termination You may terminate our services at any time for cause by providing to us written notice 30 days in advance of such termi- nation. You may not terminate our services without cause prior to the date on which we provide the calculations required in connection with the initial anniversary of the issuance of the Bonds; thereafter you may terminate our services without cause at any time upon 120 days ' written notice to us . Law Offices of CHAPMAN AND CUTLER August 14, 1990 Page 3 We may not resign our duties to perform calculation services prior to providing the calculations required in connec- tion with the initial anniversary of the issuance of the Bonds; thereafter we may resign upon 120 days ' written notice to the Issuer . Sincerely, CHAPMAN AND CUTLER By Colleen C. Collins Arbitrage Rebate Manager Accepted by: City of Elgin and Cook Counties, Illinois Aut ed Officer