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HomeMy WebLinkAboutResolution #5428 - letter of enagegment with Ice MillerRESOLUTION NO. 5428 A RESOLUTION APPROVING A LETTER OF ENGAGEMENT OF ICE MILLER LLP RE: CITY OF CANTON, FULTON COUNTY, ILLINOIS, HEALTH CARE FACILITIES REVENUE BOND, SERIES 2023 (GRAHAM HOSPITAL ASSOCIATION PROJECT) NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF CANTON, ILLINOIS, AS FOLLOWS: 1. That the Letter of Engagement of Ice Miller LLP Re: City of Canton, Fulton County, Illinois, Health Care Facilities Revenue Bond, Series 2023 (Graham Hospital Project) ("Agreement"), by and between the City of Canton, Ice Miller LLP and Graham Hospital Association, substantially in form attached hereto as "Exhibit A," is hereby APPROVED. 2. That the Mayor, or his designee, is hereby authorized and directed to execute the Agreement, substantially in form attached hereto as "Exhibit A," upon finalizing its remaining terms and conditions. 3. That this Resolution shall be in full force and effect immediately upon its passage by the City Council of the City of Canton, Illinois and approval by the Mayor thereof. PASSED by the City Council of the City of Canton, Illinois at a regular meeting this 16th day of May, 2023, upon a roll call vote as follows: AYES: Alderpersons Grimm Nelson Lovell Hale GossettKetchum Lingenfelter NAYS: None ABSENT: Alderperson Chamberlin AP OVED: Li �-M ent cDowell, M ATTEST: ndrea J. Sinith-Walters, City Clerk EXHIBIT A IceMiller LEGAL COUNSEL 200 W. Madison Street Suite 3500 Chicago, IL 60606-3417 Bu: (312) 726-7127 February 20, 2023 W�`°tSDi o,ER Ax:(312)726-26% EMAIL: Jamea.Snydef@icemiRa.com CONFIDENTIAL ATTORNEY/CLIENT PRIVILEGED COMMUNICATION Kent A. McDowell, Mayor Mr. Robert Senneff, Chief Executive Officer City of Canton, Illinois Graham Hospital Association 2 N. Main Street 210 W. Walnut Street Canton, Illinois 60520 Canton, Illinois 60520 RE: Letter of Engagement of Ice Miller LLP Re: City of Canton, Fulton County, Illinois, Health Care Facilities Revenue Bond, Series 2023 (Graham Hospital Association Project) Gentlemen: We want to thank you for asking Ice Miller LLP (the "Firm") to serve as bond counsel in connection with the above -captioned matter. We also want to take this opportunity to confirm our engagement as such, give you some detailed sense of what that role entails, and confirm the terms of our employment. While this engagement is to serve as bond counsel to the City of Canton, Fulton County, Illinois, as issuer of the bonds (the "Issuer") we are sending this letter to you as the representative of Graham Hospital Association (the "Borrower"), and it is our understanding that the Borrower will be responsible for paying our fee, either from the proceeds of the bonds or from its own funds. We do not expect that our fees will be paid by the Issuer from its own funds. Scope of Relationship and Billing In this transaction, our job as bond counsel to the Issuer is principally to render an approving opinion on behalf of the Issuer regarding enforceability of the bonds under and compliance with applicable law. As bond counsel, we will be drafting and/or reviewing the documentation for the issuance of the bonds and development of the financing of the Project, participating in discussions regarding structure and generally supervising the proceedings as they move toward closing. With respect to the financing, the Issuer is our client and our primary responsibility is to the Issuer. We will not be representing the Borrower in connection with the bonds and understand that Borrower has retained separate counsel. We will deliver accurate, objective and independent opinions. Ice Miller LLP C\1414911.1 icemillercom February 20, 2023 Page Two We estimate that our bond counsel fee for this financing would not exceed $60,000, assuming a closing before December 31, 2023. We would record our time at our normal hourly rates. We understand that we will be paid at closing or within 30 days of our invoice, whichever is earlier. Client Responsibilities We understand that the Borrower agrees to be candid and cooperative with us and keep us informed with complete and accurate information, documents and other communications relevant to the subject matter of our representation or otherwise requested by us. We can provide your counsel with a form of a legal opinion that is satisfactory to us as bond counsel. This engagement letter will also serve to give express written notice to the Borrower that (a) from time to time we represent in a variety of capacities and consult with most underwriters, investment bankers, financial advisors and other persons active in the applicable public finance market on a wide range of issues, and (b) prior to your execution of this engagement letter we may have consulted with a number of such firms regarding the Bonds. Your acceptance of our services and execution of the enclosed copy of this letter to evidence our agreement constitutes your consent to these other engagements with the underwriter. Neither our representation of the Issuer nor such additional relationships or prior consultations will affect, however, our responsibility to render an objective opinion. Document Retention When this representation concludes, papers and property that the Borrower or Issuer has provided to us will, upon request, be returned. Copies of papers and electronic documents and records we have retained that were created or obtained for the Borrower or Issuer likewise will be made available upon request. Our drafts and work product will belong to us. We reserve the right, subject to any applicable laws or rules or professional responsibility to the contrary, to apply records retention policies and procedures to these items and also to destroy within a reasonable time any items described in this paragraph that are retained by us. Response to Audit Inquiries If the Borrower or the Issuer asks us to assist in connection with the issuance of an auditor's report on financial statements, the Firm may be requested to respond to an inquiry from auditors based upon accounting standards that require auditors to make inquiry of lawyers as to their knowledge of certain "loss contingencies." Upon receipt of an audit inquiry we will, among other things, search our data bases to identify lawyers devoting time to Borrower or the Issuer matters, make inquiry of those lawyers as to their knowledge of any reportable matters and prepare a written response to auditors and to the Borrower or the Issuer. Absent special circumstances, our current fee structure for the preparation of these letters is a minimum of $200 and a maximum of $500, depending on the extent and number of any matters reported. However, under limited circumstances, the fee may exceed $500 if the letter requires extensive substantive attention to 01414911.1 February 20, 2023 Page Two disclosure or other related issues. This charge will appear as a line item for "Services rendered in connection with preparation of response to audit inquiry." To assist us in responding timely to auditors, please direct all audit inquiries to: Audit Letter Coordinator Accounting Department Ice Miller LLP One American Square, Suite 3100 Indianapolis, Indiana 46282-0200 If there are any questions presented by the audit inquiry letter, our Audit Letter Clerk will contact the Borrower. Our internal audit letter procedures are designed to provide a timely response within the parameters established by the Statement of Policy Regarding Lawyers' Responses to Auditors' Requests for Information of the American Bar Association which, absent special circumstances, is within ten (10) business days after the date specified in the request letter as the "effective date" of our response. In addition, please be sure that the letter clearly identifies the names of all affiliates to be included if applicable (client and matter numbers also would be helpful). In the event of emergencies (SEC filings, etc.), we will make every reasonable effort to meet the timetable. Termination or Withdrawal The Issuer, the Borrower or the Firm has the right to terminate this engagement at any time after providing reasonable advanced written notice, and the Firm's withdrawal is further subject to applicable rules of professional responsibility. In the event we withdraw from the representation, appropriate measures to the extent required by these rules will be taken to confirm protection of the Borrower's interests to prevent any materially adverse affect. If the withdrawal occurs prior to completion of the matter, any unpaid fees and charges incurred prior to such termination shall be paid by the Borrower to the Firm. Otherwise, this representation is intended to be an ongoing representation of the Issuer during the term of the financing. This representation will not terminate until the specific services covered within the scope of the representation have been completed. Any obligation to the Issuer to provide advice or other legal services concerning this representation ends upon termination of the representation. The fact that we may inform the Issuer or Borrower from time to time of issues or developments in the law, by newsletter or otherwise, should not be understood as a revival or creation of an attorney—client relationship. After completion of the matter, changes may occur in the applicable laws or regulations that could have an impact upon future rights and liabilities. Even though we may send the Issuer or Borrower newsletters or the like, no responsibility exists on our part to provide the Issuer or Borrower with updates or advice concerning any changes in the law C\1414911.1 February 20, 2023 Page Two or regulations or future lega_ developments on this matter, unless a new engagement agreement is undertaken to provide this service. Certain Limitations Any opinions we express about the outcome of a legal matter are only our best professional estimates; they are necessarily limited by our knowledge of facts at the time opinions are expressed and the law then in effect. Nothing in our engagement and nothing in our statements to the Issuer or Borrower are to be construed as a promise or guarantee about the outcome of the financing to the Issuer or Borrower. The Firm is being engaged to provide legal services in connection with specific matters. If the terms of this engagement letter are consistent with your understanding of our engagement and are acceptable to you, please have the acceptance clause at the end hereof executed and return the executed copy to me for our file. C11414911.1 February 20, 2023 Page Two We look forward to assisting you in this transaction and to providing timely legal service of the highest quality and value to the transaction. If you have any questions or comments, please do not hesitate to contact me. Very truly yours, ICE MILLER LLP 1 / James M. Snyder Accepted by and on behalf of the City of Canton, Fulton County, Illinois this eday of 2023. CITY OF CANTON, FULTON COUNTY, ILLINOIS By: Authorized Representative/ TN Accepted by and on behalf of Graham Hospital Association this __yday of 2023. GRAHAMHOSPITAL SSOCL4TION By: I Authorized Representative C\1414911.1 ICE MILLER LLP Terms and Conditions of Engagements for Legal Services Ice Miller LLP has prepared this statement of the terms and conditions that are generally applicable to its legal services representations of its clients, in the ansence of an express agreement specifically to the contrary. These terms and conditions, together with the letter or other docu=nt that references them, are the Terms and Conditions applicable to our engagement by you. When used in this document, "we" or "us" or "our' and similar terms refer to Ice Miller I,LP, a limited liability partnership, and "you" or "your" and similar terms refer to the person or persons specifically identified in this statement as the client or clients of Ice Miller LLP. Our Responsibilities We are responsible to provide legal services to you in accordance with these Terms and Conditions and with our express understandings with you concerning the nature and scope of our representation. Your Responsibilities You are responsible for paying our statements for services and expenses. You also are responsible for being candid and cooperative with us and for keeping us informed with complete and accurate information, documents and other communications relevant to the su3ject matter of our representation or otherwise requested by us. Because it is important that we be able to contact our clients at all times in order to consult with them regardirg our representation, we expect that you will inform us, in writing, of any changes in the name, address, telephone number, contact person, e-mail address, state of incorporation or other relevant changes regarding you and your business or affairs. If you affiliate with, acquire or your compa-iy is acquired by or merged with another company, you will provide us with sufficient notice to permit us to withdraw as your attorneys if we determine that such an affiliation, acquisition or merger creates a conflict of interest between any of our clients and the other party to such affiliation, acquisition or merger, or if we determine that it is not in the best interests of the Firm with respect to the resulting association with the new entity. Your failure to communicate and cooperate with us in these respects could have an adverse effect on our ability to effectively and efficiently represent your interests in this matter and may require that we suspend the rendition of further services in respect of or entirely withdraw from this engagement. Client(s) Represented The client or clients for this engagement are as specifically identified in the engagement letter. Our client(s) do not include natural persons or entities that E -re not identified as a client in the engagement letter. For clients that are companies, unless otherwise specified or agreed, this does not include individuals or persons wbo are shareholders, partners, members or owners of the company, or its officers, directors, managers or other representatives, or family members, nor does it include affiliates of the company. Our representation of you for the matter described in the engagement letter does not give rise to a lawyer -client 1.\141 IfVI i.i relationship with any such other individual, person or affiliate. Accordingly our representation of you will not give rise to a conflict of interest in the event other clients of ours are or become adverse to any such other individual, person or affiliate. For clients that are trade associations or other group -type organizations, our clients would not include their members or other constituents. How We Will Work For You We provide services to you through our attorneys and other professionals. We will designate a mutually agreeable partner whom you may contact should you have any questions or concerns at any time about our representation of you or your interests. You will keep us advised of the name(s) and contact information of the person(s) who are authorized to instruct us as to the performance of our legal services for you. Our engagement is for legal services. While from time to time we may share with you as part of our legal advice information and insights based on our experience with respect to certain market, industry or business practices, structures, or the like, it is understood that you will be solely responsible for determining the extent to which other professional services and advice are obtained and for making all decisions concerning business, investment and accounting matters. In addition, it is understood that we will not have any responsibility to investigate the character or credit of any person with whom you may be dealing in connection with any matter directly or indirectly related to our engagement. How We May Communicate With You Unless you instruct otherwise in writing, we may communicate with you using unencrypted e-mail, facsimile transmission and cellular telephone with the understanding that these methods carry an inherent risk of interception. About Our Fees We will charge you fees based upon the time expended and other factors applicable to legal fees that are specified by applicable professional rules and standards. Unless otherwise specifically agreed, our tees are based on our hourly rates as applied to the amount of time that we expend in providing services. Our base hourly rates for work performed by our attorneys, absent special engagements or circumstances, are established effective January 1 of each calendar year. Hourly rates may change periodically without prior notice to clients, typically after the end of each calendar year, but a current schedule for anyone working on your engagement is available at any time u3on request. Payment of our fees and other charges is in no way contingent on the outcome of any mztter, unless and to the extent that there is a mutual written agreement to the contrary. Other Charges and Expenses Our charges for ancillary services and expenses, such as photocopying, computer research, electronic data discovery services, mileage, travel expenses anc other similar charges are pursuant to a schedule of charges and expenses, as the same is revised from time to time, a copy of which is available to you upon request. Estimates The total amount of fees and costs relating to this matter are difficult to predict. Accordingly, we have made no commitment to you concerning the m"imum fees and costs that will be necessary to resolve or complete this matter. If requested to provide an estimate of our fees for a given matter, we will endeavor in good faith to provide our best estimate, but unless there is a mutual written agreement to a fixed fee, the actual fees incurred on any project will likely differ from the estimate. Billing Procedures Unless we agree to an alternative billing arrangement, you will receive a statement on a montf ly basis for services rendered, and for costs and other charges posted to your account, in the prior month. Payment is due upon receipt of our billing statement or within 30 days thereafter. If your account becomes more than 30 days past due, our Billing and Collection Committee will decide whether additional legal work will be performed while the acccunt remains past due, taking into account obligations we owe to you under applicable professional conduct rules. While we typically do not charge interest on past due amounts, we reserve the right to charge interest on any amount invoiced that remains unpaid after 30 days at the rate of 1% per month until paid in full, plus all costs of collection (including reasonable attorneys' fees). Any questions or disagreements should be brought to our attention in writing within 60 days of the billing date. Retainers As a matter of standard practice for new clients and/or new matters, we typically request a retain: r deposit before we begin work, and we may request retainers or additional retainers from time to time with respect to existing clients and existing matters. Unless there is a mutual written agreement to the contrary, we will holt any such retainers in 1EDE M our firm's agency account until disbursed in accordance with these terms and conditions or other mutual written agreement. We may apply funds held as retainers to any past due account balance of your account. We will return any unapplied excess of your retainers to you within a reasonable period of time following the conclusion of the related engagement. Unless we determine in our discretion to apply all or a portion of the retainers sooner, we will apply the retainers to the final invoice for the related engagement. If we determine for any client or matter to initially waive the required retainer deposit, we nonetheless reserve the right at a later date to require a retainer deposit if conditions concerning either the extent or nature of the matter in our discretion so warrant, or should our statements not be timely paid as expected. Your Consent to Future Conflicts of Interest You are aware that the Firm has grown geographically and represents many other entities and individuals. Thus, during the time that we are representing you, some of our present or future clients may have disputes or transactions with you or other interests that may be adverse to yours. As part of this engagement, you agree that we may undertake in the future to represent existing or new clients in any matter that is not substantially related to any matter as to which we have represented or advised you, even if the interests of such clients in those other matters are directly or indirectly adverse to yours, and you agree not to disqualify our Film for those conflicting representations. Of course, we agree that we will keep confidential any information of a nonpublic nature provided to us as a result of our representation of you. You acknowledge that we may obtain confidential information as a result of our representation of other clients that might be of interest to you but for the same reasons cannot be shared with you. Document Retention Unless you indicate otherwise to us in writing, we will assume that all papers and property that you provide to us are duplicates and that you retain all originals, so that we do not need to return them to you. When the representation concludes, we will (if you request) return any papers and property that you have provided to us (or that we have obtained for you and that belong to you) if we have them in our possession. Our drafts and work product that we create in relation to our work for you, however, belong to us. We reserve the right, subject to any applicable laws or rules of professional responsibility to the contrary, to apply records retention policies and procedures to these items and also to destroy within a reasonable time any items described in this paragraph that are retained by us. Personal Data from the European Economic Area If you will be providing the Firm with the personal data of individuals in the European Economic Area during the course of the engagement, then it is your responsibility to obtain all appropriate consents, make any necessary disclosures, and take all other required steps to comply with any applicable data privacy and protection laws and regulations in connection with your use of the Firm's services. As used herein, "personal data" means any information relating to an identified or identifiable natural person, to the extent that such personal data are associated with individuals in the European Economic Area or are otherwise within the scope of the General Data Protection Regulation (EU) 2016/679. Response to Audit Inquiries If you ask that we do so, we will respond to your auditors concerning certain "loss contingencies" as defined by accounting standards by preparing a letter to your auditors. To assist us in responding timely to your auditors, please direct all audit inquiries to: Audit Letter Coordinator Ice Miller LLP One American Square, Suite 2900 Indianapolis, Indiana 46282-0200. If there are any questions presented by your audit inquiry letter, our Audit Letter Coordinator will contact you. Absent special circumstances, our current fee structure for the preparation of these letters is a minimum of $300 and a maximum of $700, depending on the extent and number of any matters reported. However, the fee may exceed $700 if there are many matters to be reported upon, or if the letter requires extensive substantive attention to disclosure or other related issues. This charge will appear on your statement as a line item for "Services rendered in connection with preparation of response to audit inquiry." Termination or Withdrawal Both you and we have the right to terminate any engagement at any time after providing reasonable advance written notice, and our withdrawal or termination is further subject to applicable rules of professional responsibility. In the event that we terminate the engagement, we will, subject to the terms hereof, take such steps as are reasonably practicable to protect your interests in the above matter and, if you so request, we will suggest to you possible successor counsel and provide that counsel with whatever papers you have provided to us. If permission for ( 1111 1911 1 withdrawal is required by a court, we will promptly apply for such permission, and you agree to engage successor counsel to represent you. Otherwise, this representation will terminate (a) once the specific services covered within the scope of the representation have been completed and we have sent you our final statement for services rendered in this matter, or (b) if the engagement is open-ended without any specific services being described, when more than six months have elapsed from the last time you requested and we furnished legal services to you. We are not obligated to provide advice or other legal services concerning this representation to you after our representation of you is completed, or has terminated. After completion of a matter in which we have represented you, changes may occur in the applicable laws or regulations that could have an impact upon your future rights and liabilities. Even though we may send you newsletters or the like after the date of termination of our engagement, we will have no responsibility to provide you with updates or advice concerning any changes in the law or regulations or future legal developments on any matter, including those matters that may have been the subject of a prior representation, unless you and we have expressly agreed that we will provide this service. Certain Limitations Any opinions or views, formal or informal, that we may express to you or to third parties about the outcome of a legal matter are only our best professional estimates. Those opinions or views are necessarily limited by our knowledge of facts at the time that we express them and the law and regulations that are then in effect. You understand and agree that we cannot — and will not — promise to you, or guarantee to you, that any particular outcome will result from your legal matters. Identification of Relationship We are pleased that you have chosen Ice Miller LLP as your legal advisor and would like to have your permission to share this with others. By signing the acknowledgement, you hereby grant us the authority to use your name and logo in connection with Ice Miller LLP's marketing activities, including, without limitation, identification of you as a client of Ice Miller LLP on its website and other printed marketing materials and publications issued by Ice Miller LLP. You may revoke the consent granted in this paragraph at any time by contacting our marketing department at ene%esn icemiller.cum. Revised: July 2018