The Park Ridge Committee of the Whole met Sept. 12 to review volunteer report.
Here are the meeting's minutes, as provided by the committee:
COMMITTEE OF THE WHOLE MEETING OF THE PARK RIDGE CITY COUNCIL FINANCE, PUBLIC WORKS AND PUBLIC SAFETY
CITY HALL COUNCIL CHAMBERS 505 BUTLER PLACE PARK RIDGE, IL 60068
Monday, September 12, 2016 at 7:00 p.m.
I. Roll Call
Alderman Knight called the meeting to order at 7:00 p.m.
Roll call was read and the following Elected Officials indicated their presence at the meeting: Aldermen Moran, Milissis, Van Roeyen, Shubert, Knight, and Mazzuca. There was a quorum.
II. Citizens Who Wish to be Heard on a Non-Agenda Item
John Prochoska, 2017 Glenview, stated that he has asked the City to trim a parkway tree at 725 Forestview as a branch overhangs his daughter’s house. He also recommended experimenting with staggered stop bars at the intersection of Oakton and Dee to allow for a clear field of vision.
III. Public Safety
A. Action Items – Police None.
B. Discussion Items – Police None.
C. Department Head Report - Police 1. Monthly Report – August 2016 Chief Kaminski stated that the Mental Health Grant was winding down and summarized the summer events. He noted that the Department, in conjunction with Mariano’s, would be helping out local food pantries in October.
2. Complimentary Letters – August 2016 Alderman Milissis commended Commander Kampwirth, Detectives McEwen, Hahn, Stopka and King, Sergeant Anderson, and Officer Faso for their work with the ICAC Task Force.
3. Red Speed Monthly Reports – July and August 2016 None.
4. Citizen Corps Volunteer Report – August 2016 Alderman Milissis summarized volunteer hours for CERT, Citizens Patrol, Parent Patrol, and Police Explorers at 544 hours for August and 3,573 hours’ year to date.
Chief Kaminski stated that the Department had been monitoring valet parking on South Prospect and overall things were going okay.
D. Action Items - Fire 1. Approve a grant award in the amount of $500,000.00 from the FEMA Assistance to Firefighters Grant Program
Motion by Alderman Milissis, seconded by Alderman Moran
Executive Officer Lisowski stated that the City has been notified by FEMA that it was a recipient of an Assistance to Firefighters Grant for the purchase a new fire engine for Fire Station 35. The old engine, a 1995 model, will be disposed of. As FEMA has very specific rules for disposal, it will most likely be sold for scrap value, as they will not allow it to be used by any other fire department. The estimated cost of this new engine is $550,000, with the City share at $50,000. If the Council approves the grant, the City share will be included in the FY18 budget, as that is when delivery is anticipated. Once the Council approves the purchase, the grant will be formally accepted and staff would go out to bid for this purchase.
Motion carried, 6/0, by roll call vote.
2. Approve a Purchase Order for the purchase of a 2017 Ford Utility Interceptor AWD to Currie Motors, 9423 West Lincoln, Highway, Frankfort, Illinois 60423 in the amount of $28,177.00
Motion by Alderman Milissis, seconded by Alderman Knight
Chief Sorensen stated that vehicle F20, a 2007 Ford Explorer with approximately 128,500 miles and currently deployed as the Fire Chief’s vehicle, is due for replacement. The Northwest Municipal Conference Suburban Purchasing Cooperative (SPC), through its competitive bid process, selected Currie Motors of Frankfort, Illinois as being the lowest responsive and responsible bidder for the 2017 Ford Utility Interceptor AWD for a total cost of $28,177.00 with the SPC awarded contract #152 effective through November 8, 2016. After the vehicle is delivered, the vehicle will require additional equipment that is not available through the factory. This vehicle ‘upfitting’ for emergency lighting, etc. will cost approximately $4,000, bringing the total cost under the FY17 budget of $35,000. The retired vehicle will be sold through a forward auction.
Motion carried, 6/0, by roll call vote.
3. Approve a resolution authorizing the Village of Niles for mutual aid ambulance billing and approve the intergovernmental agreement with the Village of Niles for mutual aid ambulance billing
Motion by Alderman Mazzuca, seconded by Alderman Moran
Executive Officer Lisowski stated that the City relies on mutual aid agreements to provide additional assistance to the Fire Department when larger incidents occur or there are not enough ambulances available for service due to concurrent emergency incidents occurring in the City. The Niles Fire Department has responded to aid our residents for many years.
Currently, if a resident is transported to the hospital in a mutual aid Niles Fire Department ambulance, that resident will receive a bill from Niles. The billed amount would be at the higher “non-resident” rate and our resident would also be responsible for the balance of any amount that is not covered by Medicare or their health insurance. The proposed agreement would eliminate that discrepancy and allow Park Ridge residents the lower resident rate with no out of pocket cost if they are transported by a Niles ambulance. The City would then also reciprocate this benefit to the residents of the Village of Niles. Over the past five years, on average, PRFD has sent an ambulance to Niles approximately seventeen (17) times per year and Niles has sent an ambulance into Park Ridge approximately seventeen (17) times per year. While it is difficult to estimate the revenue loss from this agreement, it should not be significant. Minutes for Committee of the Whole Meeting of the Park Ridge City Council (Cont.) September 12, 2016
Motion carried, 6/0, by roll call vote.
E. Discussion Items – Fire None.
F. Department Head Report – Fire Chief Sorensen thanked the community for their support for the 911 Memorial ceremony.
IV. Finance
A. Action Items 1. Approve the contract for a parking study of the Uptown area to Gewalt Hamilton
Associates Inc. in the amount of $16,204.00
Motion by Alderman Knight, seconded by Alderman Moran
Motion carried, 6/0, by roll call vote.
2. Approve a budget amendment to increase Parking Fund General Contractual Services 501-3027-948500 by $16,204.00 from $36,000.00 to $52,204.00
Motion by Alderman Knight, seconded by Alderman Moran
Motion carried, 6/0, by roll call vote.
Acting City Manager Gilmore stated that staff searched for a qualified firm to provide the City with a Parking Study for the Uptown area. The scope of work includes a parking needs (both current and future) assessment and recommendations for the entire Uptown area and also includes an assessment of an automated parking meter strategy for the area and the need for a parking structure on the City-owned Summit lot. Quotes were obtained from four (4) parking consulting firms, ranging from $14,500 to $31,500. Gewalt Hamilton Associates Inc. was selected as they provide a high level of technical expertise, substantial experience providing municipal studies, and are familiar with our project area.
Acting City Manager Gilmore stated that a kick off meeting would be held to detail specifics for the study and confirmed that all items were on the table. He noted that stakeholders (elected officials, staff, businesses, residents and commuters) would be included in the process in some manner.
Lauren Boulhais, 1434 South Clifton, noted that she would like to comment for the parking study on commuter issues.
B. Discussion 1. Discuss 2006A Bond Refunding Options Acting City Manager Gilmore stated that the City has the opportunity to refund the outstanding Series 2006A Bonds for savings. These Bonds were originally issued to pay for TIF improvements and are callable on December 1, 2016. Once the Council’s questions have been answered, and the preferred option is determined, Bond Counsel will be directed to prepare a refunding bond ordinance. The ordinance will be reviewed at the Council’s September and October meetings with approval at its October 17th meeting. The intent is to sell or place the bonds prior to the Presidential election and close the issue in November, prior to the call date.
Ms. Hennessy detailed the methods of sale, public versus private, and recommended a private sale.
Alderman Mazzuca asked for data on public versus private sales.
Acting City Manager Gilmore stated that the plan was to bring this back for Action at the September 26, 2016 Finance Committee meeting.
All Aldermen commented that at this time they were in favor of Option 1 – Level Payments, but several were undecided about a public versus private sale.
V. Public Works
A. Action Items 1. Approve a Purchase Order Increase for the Elm Tree Injection Program to Robert Kinnucan
Tree Experts and Landscaping Company in the amount of $1,591.75
Motion by Alderman Shubert, seconded by Alderman Moran
Director Zingsheim stated that the City Council approved a contract and purchase order for the 2016-17 Elm Tree Injection Program in the amount of $40,000 on May 16, 2016. During routine Dutch Elm Disease (DED) inspections, staff identified 5 additional mature elm trees in excellent condition that were ideal candidates for treatment. This brought the total to 110 elm trees treated during this year’s program. To date this year, 50 elm trees have been removed due to DED. At this time, staff is requesting approval to increase the purchase order to Robert Kinnucan Tree Experts by $1,591.75, for a total purchase order amount of $41,591.75. A corresponding Budget Transfer for this amount will be done from Forestry, Tree Removal to cover this overage.
Motion carried, 6/0, by voice vote.
2. Approve a Purchase Order to Upgrade the Main SCADA PLC at the Central Pump Station to
Automatic Control Services in the amount of $10,025.00
Motion by Alderman Shubert, seconded by Alderman Moran
Director Zingsheim stated that the City recently upgraded its SCADA system (Supervisory Control and Data Acquisition) to state of the art. As contractors were brought thru on that project, staff was told that the CPU (Central Processing Unit) along with the I/O cards (Input/Output) were at the end of their lifespan. The CPU actually failed several weeks later, with a used component being utilized in its place as a fallback measure for the time being. The CPU is the ‘brain’ of the operation that processes all of the information and runs the entire system. The CPU and I/O cards are eleven years old and run with Windows XP, which is no longer supported by Microsoft. Staff received three quotes for this upgrade ranging with the low quote being from Automatic Control Services of Naperville, Illinois.
Motion carried, 6/0, by voice vote.
3. Approve the contract for Aggregate Materials Purchase and Spoils Disposal, PW-FY17-12,
to K.L.F. Enterprises Inc. in the amount of $139,629.90
Motion by Alderman Shubert, seconded by Alderman Moran
Director Zingsheim stated that staff issued an Invitation to Bid for Aggregate Materials Purchase and Spoils Disposal, PW-FY17-12, on August 4, 2016 in the Pioneer Press. Ten (10) firms registered via the City web site. At the public bid opening on August 30, 2016, three (3) bids were opened and read aloud.
4. Approve the Contract for the 2016 Street Resurfacing Program, 17-00000-1-GM, with
Schroeder Asphalt Services Inc. in the amount of $950,088.11
Motion by Alderman Shubert, seconded by Alderman Moran
Director Zingsheim stated that staff issued an Invitation to Bid for 2016 Street Resurfacing Program, 17- 00000-01-GM, on August 18, 2016 in the Pioneer Press. The project was also advertised in the IDOT Notice to Contractors Bulletin on August 18 and August 25, 2016. An email Invitation to Bid was sent to all contractors on the IDOT List of Prequalified Firms. Fifteen (15) firms registered via the City web site. The bid package was available on the website and at City Hall. At the public bid opening on August 30, 2016, five (5) bids were opened and read aloud. This contract is for the rehabilitation of approximately 3.7 miles of roadway. The FY17 budget amount is $900,000 and is paid out of the Motor Fuel Tax Fund (MFT). The additional funds will be taken from the MFT Fund with a Budget Amendment being brought to a future Finance Committee meeting.
Motion carried, 6/0, by roll call vote.
5. Approve the contract for Backhoe Purchase, PW-FY17-14 to McCann Industries Inc. in the amount of $99,275.00
Motion by Alderman Shubert, seconded by Alderman Mazzuca
Director Zingsheim stated that staff issued an Invitation to Bid for a Backhoe Purchase, PW-FY17-14, on August 18, 2016 in the Pioneer Press. Nine (9) firms registered via the City web site. At the public bid opening on August 30, 2016, four (4) bids were opened and read aloud. This contract is for a firm to supply a backhoe that will replace #49, a 1994 Case 590 Turbo Backhoe with 8,075 hours of use. The bid from Casey Equipment Company Inc. of Arlington Heights, Illinois was deemed non-responsive since the submittal did not meet the operating weight and extended warranty requirements that were identified in the City bid specification. McCann Industries proposed a Case model 590 Super N Tractor Backhoe that meets the City bid specification. The total price is $99,275 and includes the 3 year / 3000-hour extended warranty. An add-on ‘breaker’, for use with this backhoe, will be purchased separately later time this fiscal year at an approximate cost of $20,000.00.
Vehicle Supervisor McGrath confirmed that the scorecard included the trade in.
Motion carried, 6/0, by voice vote.
B. Discussion Items 1. 15 Minute Loading Zone on Fairview Avenue
Director Zingsheim stated that at the September 6, 2016 Council meeting, representatives from 26 and 28 South Fairview requested that a Loading Zone be designated in front of their building. The Municipal Code allows for a 15-minute Loading Zone under Chapter 15, Limited Time Parking. In the past, the City has been very conservative in designating such areas as businesses and parking patterns change over the years. There is also the concern that they might become the norm for every business and thus would be taking away valued parking spaces.
Angie Karlson, building owner at 26 and 28 South Fairview, spoke in favor of a 15-Minute Loading Zone in front of this property.
Alderman Knight advocated for two spots at this location.
Alderman Mazzuca stated that he was not opposed to Loading Zones, however there should be fees attached to them.
Consensus was reached to move forward for Action for two 15-Minute Loading Zone spaces at 26-28 South Fairview Avenue.
Staff was directed to investigate fees and maintenance responsibilities for loading zones.
C. Department Head Report 1. Parking Meter Update Director Zingsheim stated that currently half of the meters have had the rates changed. Staff is now waiting for the equipment used to make the change to be repaired and then the other half will be done. Staff will try to post signage in the areas when these meters have their rates changed.
2. Bike Task Force Alderman Shubert gave an update on the Bike Task Force, noting that Jim O’Donnell will be chairing the Task Force with a kick off meeting scheduled for September 14. Currently, they are looking at doing a walking and biking audit of Park Ridge and hope to work with the Consortium of North Shore Environmental Groups (CONSEG).
VI. Other City Business
1. Alderman Moran asked that Director Testin be at the next meeting to discuss the zoning and subdivision issues at 800 Devon. Acting City Manager Gilmore stated that he was not sure if Director Testin would be at the meeting but would get a report from him detailing a timeline of submittals, reviews, approvals, etc.
VII. New Business
VIII. Adjournment
The meeting was adjourned at 8:45 p.m. September 12, 2016
City of Park Ridge,
Financing Update
Illinois
Table of Contents
Section Market I
Update
Section Current II
Outstanding Debt
Section Refunding III
Options
Section Method III
of Sale
Section Financing VI
Schedule
09/13/2016
1
Market Update
Historical AAA MMD Interest Rates
AAA Municipal Market Data (“MMD”) During the Past Five Years
(%) 6.0
5.5
5.0
4.5
4.0
3.5
2.02%
1.45%
Note: Reflects market conditions as of September 2, 2016 Source: Thomson Financial
20-Yr AAA MMD 3.0
2.5
2.0
10-Yr 1.5
AAA MMD
1.0
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Current Outstanding Debt
Current Outstanding Principal
Park Ridge General Obligation Bond Principal
GO-P KRG
Bond Year Series Series Series Series Series Series Total Ending 2015A 2015B 2014A 2012A 2012B 2006A Principal
06/30/17 1,895,000 595,000 310,000 270,000 100,000 3,170,000 06/30/18 2,350,000 610,000 320,000 280,000 100,000 3,660,000 06/30/19 265,000 1,940,000 635,000 325,000 300,000 385,000 3,850,000 06/30/20 275,000 655,000 335,000 315,000 2,990,000 4,570,000 06/30/21 735,000 680,000 345,000 3,135,000 4,895,000 06/30/22 955,000 700,000 360,000 3,520,000 5,535,000 06/30/23 980,000 725,000 370,000 2,075,000 06/30/24 1,360,000 750,000 380,000 2,490,000 06/30/25 1,705,000 770,000 390,000 2,865,000 06/30/26 875,000 405,000 1,280,000 06/30/27 415,000 415,000 06/30/28 425,000 425,000 06/30/29 435,000 435,000
Total 6,275,000 6,185,000 6,995,000 4,815,000 1,165,000 10,230,000 35,665,000
Issue Dated 03/17/15 03/17/15 08/19/14 02/01/12 02/01/12 06/01/06 Tax Status Taxable Taxable
Refunded 2005A Refunded 2006B Water/Sewer Water/Sewer ERI and IMRF TIF Bonds
TIF Bonds TIF Bonds (Abated Annually) (Abated Annually)
Call Date: Non?Callable Non?Callable 12/1/2024 12/1/2021 Non?Callable 12/1/2016
William Blair & Company LLC
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Current Outstanding Debt Service By Fiscal Year
Park Ridge General Obligation Debt Service
GO-PKRG
Bond Year Series Series Series Series Series Series Total Ending 2015A 2015B 2014A 2012A 2012B 2006A Debt Service
06/30/17 188,250 1,973,675 800,300 449,800 293,438 608,625 4,314,088 06/30/18 188,250 2,401,575 797,225 450,350 298,338 604,000 4,739,738 06/30/19 449,275 1,956,975 803,550 445,675 311,873 876,875 4,844,223 06/30/20 451,175 804,200 445,775 319,174 3,397,500 5,417,824 06/30/21 896,025 809,175 445,575 3,389,375 5,540,150 06/30/22 1,090,675 808,475 450,000 3,608,000 5,957,150 06/30/23 1,086,650 812,100 449,050 2,347,800 06/30/24 1,431,550 814,975 447,800 2,694,325 06/30/25 1,730,575 812,175 446,250 2,989,000 06/30/26 890,313 449,325 1,339,638 06/30/27 447,025 447,025 06/30/28 444,425 444,425 06/30/29 441,525 441,525
Total 7,512,425 6,332,225 8,152,488 5,812,575 1,222,821 12,484,375 41,516,909
Issue Dated 03/17/15 03/17/15 08/19/14 02/01/12 02/01/12 06/01/06 Tax Status Taxable Taxable
William Blair & Company LLC
*Series 2014A and 2012A are abated annually
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Currently Outstanding Debt Service by Levy Year
Park Ridge General Obligation Bond Debt Service (Does not include debt service on the 2012A and 2014A that is abated annually) GO-PKRG
Bond Year Series Series Series Series Total Ending 2015A 2015B 2012B 2006A Debt Service
2015 12/01/16 188,250 1,983,150 295,598 610,750 3,077,748 2016 12/01/17 188,250 2,419,200 301,278 606,500 3,515,228 2017 12/01/18 453,250 1,973,950 315,398 886,500 3,629,098 2018 12/01/19 455,300 323,348 3,472,250 4,250,898 2019 12/01/20 907,050 3,467,750 4,374,800 2020 12/01/21 1,105,000 3,696,000 4,801,000 2021 12/01/22 1,101,350 1,101,350 2022 12/01/23 1,451,950 1,451,950 2023 12/01/24 1,756,150 1,756,150 2024 12/01/25 ? 2025 12/01/26 ? 2026 12/01/27 ? 2027 12/01/28 ?
Total 7,606,550 6,376,300 1,235,620 12,739,750 27,958,220
William Blair & Company LLC
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Current Outstanding Debt Service
Series on Tax Levy
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Refunding Options
09/13/2016
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Refunding Options
• The Series 2006A Bonds are callable on December 1, 2016
• These bonds may be refunded for savings
• The District’s current debt service increases each year then drops by almost $3.7M in 2021
• Option I –Level Payments ? shows the refunding of the Series 2006A Bonds where the new bonds create overall level payment
• Option II – Optimal Savings – shows the refunding of the Series 2006A Bonds where the new bonds are paid off as soon as possible within the current debt structure
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Series 2016A Refunding
Option 1: Level Payments
City of Park Ridge, IL Series 2016A Refunding (Option I)
Level Payments Option I: 2016A Bond Year Levy Yea r Series Series Series Series Total Less: Plus: Total Ending Ending 2006A 2012B 2015A 2015B Outstanding D/S Refunded D/S Series 2016A Proposed D/S
12/01/16 2015 610,750 295,598 188,250 1,983,150 3,077,748 0 3,077,748 12/01/17 2016 606,500 301,278 188,250 2,419,200 3,515,228 (606,500) 399,100 3,307,828 12/01/18 2017 886,500 315,398 453,250 1,973,950 3,629,098 (886,500) 368,400 3,110,998 12/01/19 2018 3,472,250 323,348 455,300 4,250,898 (3,472,250) 2,138,400 2,917,048 12/01/20 2019 3,467,750 907,050 4,374,800 (3,467,750) 2,012,600 2,919,650 12/01/21 2020 3,696,000 1,105,000 4,801,000 (3,696,000) 1,814,000 2,919,000 12/01/22 2021 1,101,350 1,101,350 1,815,600 2,916,950 12/01/23 2022 1,451,950 1,451,950 1,469,600 2,921,550 12/01/24 2023 1,756,150 1,756,150 1,164,800 2,920,950 12/01/25 2024 12/01/26 2025 12/01/27 2026 12/01/28 2027
Total
12,739,750 1,235,620 7,606,550 6,376,300 27,958,220 (12,129,000) 11,182,500 27,011,720
CF Savings 946,500 PV Savings 1,102,636 PV Savings % 10.885%
William Blair & Company, LLC 9/8/2016
*Based on market conditions as of July 14, 2016 *Preliminary, subject to change
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Series 2016A Refunding
Option I: Level Payments
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Series 2016A Refunding
Option 2: Optimal Savings
City of Park Ridge, IL Series 2016A Refunding (Option 2)
Optimal Savings Option 2: 2016A Bond Year Levy Yea r Series Series Series Series Total Less: Plus: Total Ending Endi ng 2006A 2012B 2015A 2015B Outstanding D/S Refunded D/S Series 2016A Proposed D/S
12/01/16 2015 610,750 295,598 188,250 1,983,150 3,077,748 0 3,077,748 12/01/17 2016 606,500 301,278 188,250 2,419,200 3,515,228 (606,500) 601,683 3,510,411 12/01/18 2017 886,500 315,398 453,250 1,973,950 3,629,098 (886,500) 882,600 3,625,198 12/01/19 2018 3,472,250 323,348 455,300 4,250,898 (3,472,250) 3,472,000 4,250,648 12/01/20 2019 3,467,750 907,050 4,374,800 (3,467,750) 3,467,000 4,374,050 12/01/21 2020 3,696,000 1,105,000 4,801,000 (3,696,000) 2,397,200 3,502,200 12/01/22 2021 1,101,350 1,101,350 0 1,101,350 12/01/23 2022 1,451,950 1,451,950 0 1,451,950 12/01/24 2023 1,756,150 1,756,150 0 1,756,150 12/01/25 2024 12/01/26 2025 12/01/27 2026 12/01/28 2027
Total
12,739,750 1,235,620 7,606,550 6,376,300 27,958,220 (12,129,000) 10,820,483 26,649,703
CF Savings 1,308,517 PV Savings 1,219,457 PV Savings % 12.038%
William Blair & Company, LLC 9/8/2016
*Based on market conditions as of July 14, 2016 *Preliminary, subject to change
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Series 2016A Refunding
Case 2: Optimal Savings
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Summary of Options and Impact on Homeowner
City of Park Ridge, IL Summary of Options and Impact on Homeowner
Total Debt Total Total Debt Total Total Debt Total Service Levies Debt Payments Service Levies Debt Payments Service Levies Debt Payments Bond Year Levy Yea r Current $400,000 MV Home Option I $400,000 MV Home Option 2 $400,000 MV Home Ending Endi ng Situation Level Payment Level Payment Level Payment Optimal Savings Optimal Savings
12/01/17 2016 3,515,228 272 3,307,828 256 3,510,411 272 12/01/18 2017 3,629,098 281 3,110,998 241 3,625,198 281 12/01/19 2018 4,250,898 329 2,917,048 226 4,250,648 329 12/01/20 2019 4,374,800 339 2,919,650 226 4,374,050 338 12/01/21 2020 4,801,000 372 2,919,000 226 3,502,200 271 12/01/22 2021 1,101,350 85 2,916,950 226 1,101,350 85 12/01/23 2022 1,451,950 112 2,921,550 226 1,451,950 112 12/01/24 2023 1,756,150 136 2,920,950 226 1,756,150 136 12/01/25 2024 0 0 0 12/01/26 2025 0 0 0 12/01/27 2026 0 0 0 12/01/28 2027 0 0 0
Total
24,880,473 1,925 23,933,973 1,852 23,571,956 1,824
Based on market conditions as of July 12, 2016
According to Zillow, the median home value in Park Ridget is $393,500 as of July 14, 2016
Preliminary, subject to change
William Blair & Company, LLC
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Method of Sale
Public Sale Versus Private Sale
• A public bond sale works well when the bond issue is large (over $10M), long in maturity and can amortize the costs of issuance over time with multiple investors participating
• When a bond issue is smaller and/or has a shorter maturity, it may be more cost effective to privately place the bond with a sophisticated bank investor
• The proposed refunding of the Series 2006A Bonds is approximately $10.3M and matures in 8 years (2024), therefore, one bank investor may be interested
• Blair can prepare a term sheet and run a competitive process between interested local banks as well as state?wide banks
• The advantage to this approach is that it saves on costs of issuance because the bonds are not rated and a term sheet is used to sell the bonds to sophisticated investors versus a full preliminary official statement
• Assuming competitive interest rates are attained from the bidding banks, the cost of capital can be lowered and savings enhanced
• If competitive bids are not attainable versus a public sale with full costs of issuance, we can pursue a public sale
• The fees for both sale methods are shown on the next page
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Public Sale Versus Private Sale Costs of Issuance
City of Park Ridge, Illinois $9.9M General Obligation Refunding Bonds, Series 2016 (Bank Qualified) $400k General Obligation Refunding Bonds, Series 2017 (Bank Qualified) Estimated Costs of Issuance
Refunding Bonds
Public Sale Private Placement
Bond Counsel, Katten Muchin Rosemann $22,000 $22,000 Disclosure Counsel, Katten Muchin Rosemann 5,000 0 Registrar/Paying Agent, Wells Fargo 2,000 2,000 Escrow Agent, Wells Fargo 2,500 2,500 Rating Agency, Moody's Investor Services 16,000 0 Preliminary and Final Official Statement Printing 2,500 0 Contingency and Other 1,000 1,000 $51,000 $27,500
Estimated Underwriter's Discount: (5.00 per $1,000) (1) $24,050 0 Financial Advisor Fee, William Blair $18,500 $18,500 Total Costs of Issuance $93,550 $46,000
Savings on Costs of Issuance $47,550
(1) Will be determined in competitive sale
Note: interest rate may be higher in private placement than public sale; Blair will provide a comparison of the total cost of a each method of sale once the bids received
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Bank Qualified Versus Non?Bank Qualified
• The new refunding bond issue is just over $10M ? $10.3M to be exact
• If a bond issue is under $10M and the City issues less than $10M in a calendar year, then the bonds may be issued as bank qualified under Section 265(b)(3) of the Internal Revenue Code of 1986, as amended
• Bonds that are bank qualified afford bank purchasers an additional tax deduction; this savings is passed onto the issuer in the form of lower interest rates
• Depending on market conditions, bank qualified bonds have yields that are between.05% and.15% lower than non?bank qualified bonds
• Because the City is just over the bank qualified threshold for 2016, it can sell approximately $9M in calendar 2016 and the remaining $400,000 in the next calendar year (January 2017) thereby achieving bank qualification on the entire issue
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Financing Schedule
Proposed Financing Schedule
City of Park Ridge, Illinois General Obligation Refunding Bonds, Series 2016
July August September October November M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S
1 2 3 1 2 3 4 5 6 7 1 2 3 4 1 2 1 2 3 4 5 6 4 5 6 7 8 9 10 8 9 10 11 12 13 14 5 6 7 8 9 10 11 3 4 5 6 7 8 9 7 8 9 10 11 12 13 11 12 13 14 15 16 17 15 16 17 18 19 20 21 12 13 14 15 16 17 18 10 11 12 13 14 15 16 14 15 16 17 18 19 20 18 19 20 21 22 23 27 22 23 24 25 26 27 28 19 20 21 22 23 24 25 17 18 19 20 21 22 23 21 22 23 24 25 26 27 25 26 27 28 29 30 31 29 30 31 26 27 28 29 30 24 25 26 27 28 29 30 28 29 30
Monday, September 12, 2016
Regular Meeting COW-Review Refunding Options; Approve Consideration of Ordinance Financial Advisor, Issuer
Monday, September 19, 2016
Regular Meeting -Further Option Review if Needed Financial Advisor, Issuer
Monday, September 26, 2016
Regular Meeting COW-Authorize First Reading of Ordinance at October 3 Meeting Financial Advisor, Issuer
Tuesday, September 27, 2016
Distribute draft of Preliminary Official Statement/Term Sheet Financial Advisor/Disclosure Counsel
Monday, October 03, 2016
Regular Meeting -First Reading of Refunding Ordinance All Parties
Tuesday, October 04, 2016
Comments due on draft of Preliminary Official Statmeent/Term Sheet All Parties
Tuesday, October 04, 2016
Bond Rating Rehearsal, if necessary Financial Advisor, Issuer
Friday, October 07, 2016
Bond ratings presentation, if necessary Financial Advisor, Issuer
Friday, October 14, 2016
Comments due on final draft of Preliminary Official Statement, Term Sheet All Parties
Monday, October 17, 2016
Regular Meeting-Approve Final Reading of Parameters Refunding Ordinance Financial Advisor, Issuer
Monday, October 17, 2016
Receive bond rating, if necessary Financial Advisor, Issuer
Monday, October 17, 2016
Due diligence call Financial Advisor, Issuer, Disclosure Counsel
Tuesday, October 18, 2016
Mail Preliminary Official Statement, Term Sheet to investors Underwriter
TBD
Price Series 2016 bonds assuming appropriate market conditions Financial Advisor, Issuer, Underwriter
Ongoing
Process documentation Bond Counsel
Monday, November 07, 2016
Regular Meeting Issuer
TBD
Closing of the Series 2016 Bonds All Parties
Working Group
Issuer = The City of Park Ridge, Illinois Financial Advisor = William Blair & Company, LLC
Underwriter = TBD Competitive Sale Bond Counsel/Disclosure Counsel = Katten Muchin/Katten Muchin
Rating Agency = Moody's Investor Service
Paying Agent = TBD
William Blair & Company
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Notice and Disclaimer
William Blair & Company 222 West Adams Chicago, IL 60606 www.williamblair.com
Contact Information:
Elizabeth M. Hennessy Managing Director ehennessy@williamblair.com Phone: (312) 364?8955
The accompanying information was obtained from sources which William Blair & Company, L.L.C. believes to be reliable but does not guarantee its accuracy and completeness.
The material has been prepared solely for informational purposes and is not a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. Historical data is not an indication of future results.
The opinions expressed are our own unless otherwise stated.
Additional information is available upon request.
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