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City of Missoula, Montana Item to be Referred to City Council Committee Committee: Administration & Finance Item: Approve final bond resolution setting the form and details for the city's Limited Tax General Obligation Bonds, Series 2010C (not to exceed $1,075,000) Date: November 1, 2010 Prepared by: Brentt Ramharter Initiated by: Brentt Ramharter Action Required: Approve final bond resolution ratifying and confirming the form and details of the city's Limited Tax General Obligation Bonds, Series 2010C priced November 8, 2010 by DA Davidson. Recommended Motion: I move the City Council approve final bond resolution ratifying and confirming the form and details for the city's Limited Tax General Obligation Bonds, Series 2010C. Timeline: Referral to committee: November 1, 2010 Committee discussion: November 8, 2010 at 6:45 PM – prior to council meeting Council acts to set hearing: Not needed. Public Hearing: Not needed. Background and Alternatives Explored: Previously last month the following components of Resolution No. 7574 (the “Parameters Resolution”) were approved to accomplish a negotiated sale with a selected underwriter (DA Davidson was chosen) to provide financing for the select energy conservation projects at the city: The Mayor, the City Finance Director/Treasurer, and a representative from Springsted (the “Pricing Committee”) were authorized to consider proposals from DA Davidson with respect to the Series 2010C Bonds and to take any other appropriate action with respect to the issuance and sale of the Series 2010C Bonds providing that the aggregate principal amount of the Series 2010C Bonds would not exceed $1,075,000, the final maturity of the Series 2010C Bonds would not be later than the date that is twenty (20) years from the date of issuance of the Series 2010C Bonds, and the true interest cost of the Series 2010C Bonds would not exceed 4.0%. The ratification of the final terms of the Series 2010C Bonds are to be approved in the resolution of the City Council to be adopted after the sale of the Series 2010C Bonds. Upon the determination by the Pricing Committee that the Series 2010C Bonds were sold within the parameters set forth in the Parameters Resolution, the Mayor, the City ---PAGE BREAK--- Finance/Director Treasurer, and the City Clerk will execute and deliver a bond purchase agreement with DA Davidson, with the details of the Series 2010C Bonds to be ratified and confirmed by the resolution to be considered on November 8. The sale of the Series 2010C Bonds and the adoption of the ratifying resolution will occur on the same day. The resolution is a ratification of the terms of the Series 2010C Bonds because the bond sale was previously authorized pursuant to the Parameters Resolution. Financial Implications: See discussion above: These bond proceeds are needed to complete the financing package developed by the City Council to construct and install the energy conservation improvements in a contract with Johnson Controls. The resulting debt service is projected to be less than the present operating/energy costs that will be reduced and thus will be neutral to the budgets involved. Attachments: Resolution Bond Purchase Agreement Certificate of Pricing Recommendation General Fund Energy Spreadsheet