Loading...
HomeMy WebLinkAboutIV.B. NSI Service Agreement for City of Hastings 30NOV2021Financial Advisory Services Agreement (City of Hastings, MN) Page 1 FINANCIAL ADVISORY SERVICES AGREEMENT BY AND BETWEEN THE CITY OF HASTINGS, MINNESOTA HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY AND NORTHLAND SECURITIES, INC. This Agreement made and entered into by and between the City of Hastings, Minnesota and the Hastings Economic Development and Redevelopment Authority (hereinafter, “City") and Northland Securities, Inc., of Minneapolis, Minnesota (hereinafter, "NSI"). WITNESSETH WHEREAS, the City desires to use the services of NSI for Financial Advisory Services. WHEREAS, NSI desires to furnish services to the City as hereinafter described. NOW, THEREFORE, it is agreed by and between the parties as follows: SERVICES TO BE PROVIDED BY NSI The scope of work to be provided under this Agreement includes the following: 1. Assist the City with debt issuance and monitoring. 2. Assist the City with financial compliance and financial planning strategies. 3. Assist the City with economic development financial analysis, program development and financial reporting. 4. Attend meetings, deliver presentations, and submit products. 5. Advise the City on best practices and the development of policies and procedures. NSI will provide the City with a separate written agreement, including scope of work, compensation to be paid to NSI, among other disclosures, for each debt issuance or project engagement that is consistent with this Agreement. From time to time, the City may at its discretion, and consistent with this Agreement, authorize NSI to undertake a project without a separate written agreement. Nothing in this Agreement limits the ability of the City to separately engage NSI as underwriter for the issuance of bonds on which NSI has not previously provided advice regarding the structure, timing, terms, and other similar matters. The City may decide to use NSI for any or all offered services by NSI at its sole discretion. Financial Advisory Services Agreement (City of Hastings, MN) Page 2 COMPENSATION Debt Issuance Fees for debt issuance is based on the par amount of bonds issued and are as follows: Par Amount Fee Amount $0 to $500,000 $9,000 $500,001 to $1,000,000 $13,500 $1,000,001 to $2,000,000 $17,850 $2,000,001 to $10,000,000 $17,850 plus $2.00/$1,000 $10,000,000 to $20,000,000 $33,850 plus $1.00/$1,000 1. Fee schedule applies to the aggregate amount of debt issued that day. NSI will not charge extra for multiple purposes or series in a single offering. 2. Revenue Bonds will be billed at 1.25 times the above fee schedule. 3. There will be no extra fees for meetings transcript, travel, copying, mail/shipping, and official statement preparation and distribution. 4. Fee amounts listed above will increase each January 1, beginning with January 1, 2023, by a percentage equal to any increase in the Consumer Price Index for All Urban Consumers (the “CPI”) as published by the United States Department of Labor during the preceding twelve months. Continuing Disclosure NSI will serve as Dissemination Agent for compliance with continuing disclosure obligations pursuant to the terms of a separate written Continuing Disclosure agreement between the City and NSI. Advisory Services for Consulting Projects NSI will establish fair and manageable arrangements for consulting projects billed on an hourly basis. For every project, NSI will provide the City with a written description of work to be performed and a not to exceed compensation amount (the “Budget”). NSI will not bill the City more than the Budget unless the City requests and agrees in writing to a revised scope of work and Budget. Compensation for advisory services provided under this Agreement will be based on the rate of $220 per hour. NSI will bill the City monthly for services performed and actual reimbursable expenses (publication of notices, printing, and mailing). Invoices will detail the work performed, requested compensation for the period and show amounts previously billed and amount remaining under the approved project budget. The advisory service rate per hour will increase each January 1, beginning with January 1, 2023, by a percentage equal to any increase in the CPI during the preceding twelve months. Financial Advisory Services Agreement (City of Hastings, MN) Page 3 SUCCESSORS OR ASSIGNS The terms and provisions of this Agreement are binding upon and inure to the benefit of the City and NSI and their successors or assigns. DISCLAIMER In performing service under this Agreement, NSI is relying on the accuracy of information provided by the City and the services provided by NSI are based on current State Law. The parties agree that the Minnesota property tax system and other laws may change and may affect the accuracy and validity of services provided by NSI. NSI will perform its work using the best available information. The City recognizes and accepts that future property values, tax levies and tax rates, among other factors, may vary from the assumptions used by NSI and such changes may affect the work product produced and provided by NSI. TERM OF THIS AGREEMENT This Agreement may be terminated by thirty (30) days written notice by either the City or NSI. In the event of early termination by the City, NSI shall provide the City with an itemized hourly statement of services already provided. All billable hours by NSI shall be billed at the stated hourly rates should early termination occur. Dated this ___ day of ______________, 2021. Northland Securities, Inc. By: _____________________________ Tammy Omdal Managing Director City of Hastings, Minnesota By: _____________________________ Title _____________________________ Hastings Economic Development and Redevelopment Authority By: _____________________________ Title _____________________________