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Nederland trustees approve extension of municipal-advisory agreement with Stifel, Nicholas & Company
Summary
The Board of Trustees approved an extension of the town's municipal-advisory agreement with Stifel, Nicholas & Company through June 30, 2027; the contract includes a $325,000 advisory fee contingent on a bond sale tied to the Eldora acquisition. Trustees directed staff to publish a Q&A responding to resident questions about prior costs and the town's exposure if the bond does not close.
Nederland's Board of Trustees on July 7 approved a one-year extension of the town's municipal-advisory services agreement with Stifel, Nicholas & Company to remain the town's municipal advisor through June 30, 2027.
Town manager John Kane introduced the item and told trustees the extension "would allow them to remain the town's municipal advisor in terms of financing bond deal, from today through 06/30/2027," and that the agreement includes an advisory amount of "$325,000, that's contingent upon the sale of the bond." Kane said the extension creates no new, immediate costs to the town unless the bond sale closes.
Resident Phil Reno raised questions about an article he had seen that cited roughly $830,000 in town expenditures to date and asked whether the $325,000 figure was in addition to that amount and how the town would be exposed if the bond sale does not occur. "What if it doesn't happen? How are we exposed? How much is this town on the hook for?" Reno asked. Mayor Sterling and staff said the newspaper article "was not exactly representative of all the information" and that staff would capture questions and publish clarifying answers to the community within about a week.
Trustee Donahue moved to approve the municipal-advisory services agreement extension and authorize the town manager to execute it subject to non-substantive revisions by the town attorney; the motion was seconded and approved by roll call. Present and recorded as voting Yes were Trustee Jocelyn, Trustee Kennedy, Mayor Sterling, Mayor Pro Tem Miller, Trustee Donahue and Trustee Giblin; the chair declared the motion approved.
The board instructed staff to assemble and distribute a public Q&A addressing the community's questions about prior costs, what charges are contingent on bond proceeds, and the town's potential liabilities if a bond sale fails to close. Staff said they expected to publish that information within about a week.
Next steps: staff will finalize and execute the agreement per the board's direction and release the public Q&A; no additional board action on the extension was scheduled at the meeting.
