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HomeMy WebLinkAboutOrdinance 4936 ORDINANCE NO. 4936 AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF THE CITY' S SALES AND USE TAX CAPITAL IMPROVEMENT BONDS, SERIES 2006A, FOR THE PURPOSE OF FINANCING A PORTION OF THE COSTS OF ( 1 ) CERTAIN IMPROVEMENTS TO THE CITY' S WASTEWATER TREATMENT PLANTS, SEWERAGE AND RELATED FACILITIES, (2) CERTAIN STREET IMPROVEMENTS, AND (3) CERTAIN TRAIL SYSTEM IMPROVEMENTS; AUTHORIZING THE EXECUTION AND DELIVERY OF A TRUST INDENTURE PURSUANT TO WHICH THE BONDS WILL BE ISSUED AND SECURED; AUTHORIZING THE EXECUTION AND DELIVERY OF AN OFFICIAL STATEMENT PURSUANT TO WHICH THE BONDS WILL BE OFFERED; AUTHORIZING THE EXECUTION AND DELIVERY OF A BOND PURCHASE AGREEMENT PROVIDING FOR THE SALE OF THE BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF A CONTINUING DISCLOSURE AGREEMENT; AND PRESCRIBING OTHER MATTERS RELATING THERETO. WHEREAS, the City Council of the City of Fayetteville, Arkansas (the "City") has previously determined that there is a great need for a source of revenue to finance the costs of (1 ) the acquisition, construction, reconstruction, extension, improving and equipping of certain improvements to the City's wastewater treatment plants, sewerage and related facilities (the "Wastewater Project"), (2) the acquisition, construction, reconstruction, repair, straightening and widening of certain City streets and related improvements (the "Street Project"), and (3) the acquisition, construction and equipping of certain City trail system improvements (the "Trail Project"); and WHEREAS, the City is authorized and empowered under the provisions of the Constitution and laws of the State of Arkansas, including particularly Amendment 62 to the Constitution of the State of Arkansas ("Amendment 62") and Arkansas Code Annotated ( 1998 Repl. & 2005 Supp.) Sections 14- 164-301 et seq. (as from time to time amended, the "Local Government Bond Act"), to issue and sell its capital improvement bonds to finance the costs of various capital improvements such as those comprising the Wastewater Project, the Street Project and the Trail Project, which capital improvement bonds may be secured by and payable from the receipts of the special city-wide sales and use tax authorized by the Local Government Bond Act; and WHEREAS, pursuant to the provisions of Ordinance No. 4891 of the City, adopted and approved on June 20, 2006 (the "Election Ordinance"), there was submitted to the qualified electors of the City four questions regarding the issuance of an aggregate of not to exceed $ 110,000,000 in principal amount of capital improvement bonds pursuant to Amendment 62 and the Local Government Bond Act to finance the capital improvements described in the Election Ordinance, said bonds to be secured by a pledge of and lien upon (i) all of the receipts of a special city-wide sales and use tax levied at the rate of one-quarter of one percent (0.25%) pursuant to the Local Government Bond Act (the "0.25% Sales and Use Tax") and (ii) all of the receipts of a special city-wide sales and use tax levied at the rate of three-quarters of one percent (0.75%) pursuant to the Local Government Bond Act (the "0.75% Sales and Use Tax"); and WHEREAS, at a special election held September 12, 2006, a majority of the qualified electors of the City voting on the questions approved the issuance of capital improvement bonds in the principal amounts and for each of the specific purposes set forth on the ballot (and the corresponding levy of the 0.25% Sales and Use Tax and the 0.75% Sales and Use Tax, and the pledge of the receipts thereof to the payment of the capital improvement bonds); and WHEREAS, as authorized under the provisions of Amendment 62 and the Local Government Bond Act and as approved by the qualified electors of the City, the City has now determined to issue and sell its Sales and Use Tax Capital Improvement Bonds, Series 2006A, in the aggregate principal amount of not to exceed $50,000,000 (the "Bonds"), in order to provide for the funding of a portion of the costs of the Wastewater Project, the Street Project and the Trail Project; and WHEREAS, as authorized by the provisions of the Election Ordinance, the City has previously made arrangements for the sale of the Bonds to Stephens Inc., Fayetteville, Arkansas (the "Underwriter"), pursuant to the terms of a Bond Purchase Agreement between the City and the Underwriter (the "Bond Purchase Agreement") in substantially the form presented to and before this meeting; NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Fayetteville, Arkansas that: Section 1 : Under the authority of the Constitution and laws of the State of Arkansas, including particularly Amendment 62 to the Constitution of the State of Arkansas and the Local Government Bond Act, there is hereby authorized the issuance of bonds of the City to be designated as "Sales and Use Tax Capital Improvement Bonds, Series 2006A" (the "Bonds"). The Bonds shall be issued in the original aggregate principal amount of not to exceed Fifty Million Dollars ($50,000,000) and shall mature not later than November 1 , 2023, in the principal amounts and bearing interest at the rates specified in the Bond Purchase Agreement. Of the $50,000,000 aggregate principal amount of Bonds hereby authorized, $25,000,000 shall be deemed to apply to the Wastewater Project (Question 1 on the ballot), $24,200,000 shall be deemed to apply to the Street Project (Question 3 on the ballot), and $800,000 shall be deemed to apply to the Trail Project (Question 4 on the ballot), and the proceeds of the Bonds shall be allocated accordingly. The average yield on the Bonds as a whole shall not exceed 4.50% per annum, and the yield on no single Bond shall exceed 4.70%. The proceeds of the Bonds will be utilized to finance a portion of the costs of the Wastewater Project, the Street Project and the Trail Project, to establish a debt service reserve for the Bonds or to purchase a surety bond for reserve purposes, to pay a premium for bond insurance, if deemed economically beneficial, and to pay printing, underwriting, legal and other expenses incidental to the issuance of the Bonds. The Bonds shall be issued in the forms and denominations, shall be dated, shall be numbered, shall mature, shall be subject to redemption prior to maturity, and shall contain such other terms, covenants and conditions, all as set forth in the Trust Indenture submitted to this meeting. The Mayor is hereby authorized and directed to execute and deliver the Bonds in one or more series, each series to be in substantially the form thereof contained in the Trust Indenture submitted to this meeting, and the City Clerk is hereby authorized and directed to execute and deliver the Bonds and to affix the seal of the City thereto, and the Mayor and City Clerk are hereby authorized and directed to cause the Bonds to be accepted and authenticated by the Trustee. The Mayor is hereby authorized to confer with the Trustee, the Underwriter and Kutak Rock LLP, Little Rock, Arkansas ("Bond Counsel'), in order to complete the Bonds in substantially the form contained in the Trust Indenture submitted to this meeting, with such changes as shall be approved by such persons executing the Bonds, their execution to constitute conclusive evidence of such approval. Section 2: In order to pay the principal of and interest on the Bonds as they mature or are called for redemption prior to maturity, there is hereby pledged all of the receipts of the 0.25% Sales and Use Tax and the 0.75% Sales and Use Tax levied by the Election Ordinance. The levy and collection of the 0.25% Sales and Use Tax and the 0.75% Sales and Use Tax shall commence on the dates provided in the Local Government Bond Act and shall continue until such time as the Bonds are no longer outstanding or sufficient funds are on deposit with the Trustee under the Trust Indenture to redeem the Bonds in full. The City covenants and agrees that all receipts from the 0.25% Sales and Use Tax and the 0.75% Sales and Use Tax will be accounted for separately as special funds on the books of the City, and receipts of said 0.25% Sales and Use Tax and 0.75% Sales and Use Tax will be deposited and will be used solely as provided in the Trust Indenture. Section 3 : To prescribe the terms and conditions upon which the Bonds are to be executed, authenticated, issued, accepted, held and secured, the Mayor is hereby authorized and directed to execute and acknowledge a Trust Indenture (the "Trust Indenture"), by and between the City and Simmons First Trust Company, N.A., Pine Bluff, Arkansas (the "Trustee"), and the City Clerk is hereby authorized and directed to execute and acknowledge the Trust Indenture and to affix the seal of the City thereto, and the Mayor and the City Clerk are hereby authorized and directed to cause the Trust Indenture to be accepted, executed and acknowledged by the Trustee. The Trust Indenture is hereby approved in substantially the form submitted to this meeting, including, without limitation, the provisions thereof pertaining to the pledge of 0.25% Sales and Use Tax receipts and 0.75% Sales and Use Tax receipts and the terms of the Bonds. The Mayor is hereby authorized to confer with the Trustee, the Underwriter and Bond Counsel in order to complete the Trust Indenture in substantially the form submitted to this meeting, with such changes as shall be approved by such persons executing the Trust Indenture, their execution to constitute conclusive evidence of such approval. (Advice is given that a copy of the Trust Indenture in substantially the form authorized to be executed is on file with the City Clerk and is available for inspection by any interested person.) Section 4: There is hereby authorized and approved a Preliminary Official Statement of the City, including the cover page and appendices attached thereto, relating to the Bonds. The Preliminary Official Statement is hereby "deemed final" by the City within the meaning of U.S. Securities and Exchange Commission Rule 15c2- 12. The distribution of the Preliminary Official Statement is hereby approved. The Preliminary Official Statement, as amended to conform to the terms of the Bond Purchase Agreement, including Exhibit A thereto, and with such other changes and amendments as are mutually agreed to by the City and the Underwriter, is herein referred to as the "Official Statement," and the Mayor is hereby authorized to execute the Official Statement for and on behalf of the City. The Official Statement is hereby approved in substantially the form of the Preliminary Official Statement submitted to this meeting, and the Mayor is hereby authorized to confer with the Trustee, the Underwriter and Bond Counsel in order to complete the Official Statement in substantially the form of the Preliminary Official Statement submitted to this meeting, with such changes as shall be approved by such persons, the Mayor's execution to constitute conclusive evidence of such approval. (Advice is given that a copy of the Preliminary Official Statement is on file with the City Clerk and is available for inspection by any interested person.) Section 5 : In order to prescribe the terms and conditions upon which the Bonds are to be sold to the Underwriter, the Mayor is hereby authorized and directed to execute a Bond Purchase Agreement on behalf of the City, to be dated as of the date of its execution (the "Bond Purchase Agreement"), by and between the City and the Underwriter, and the Bond Purchase Agreement is hereby approved in substantially the form submitted to this meeting, and the Mayor is hereby authorized to confer with the Underwriter and Bond Counsel in order to complete the Bond Purchase Agreement in substantially the form submitted to this meeting, with such changes as shall be approved by such persons executing the Bond Purchase Agreement, their execution to constitute conclusive evidence of such approval. (Advice is given that a copy of the Bond Purchase Agreement in substantially the form authorized to be executed is on file with the City Clerk and is available for inspection by any interested person.) Section 6: In order to provide for continuing disclosure of certain financial and operating information with respect to the 0.25% Sales and Use Tax, the 0.75% Sales and Use Tax and the City in compliance with the provisions of Rule 15c2- 12 of the U. S. Securities and Exchange Commission, the Mayor is hereby authorized and directed to execute a Continuing Disclosure Agreement to be dated as of the date of its execution (the "Continuing Disclosure Agreement"), by and between the City and the Trustee, and the Mayor is hereby authorized and directed to cause the Continuing Disclosure Agreement to be executed by the Trustee. The Continuing Disclosure Agreement is hereby approved in substantially the form submitted to this meeting, and the Mayor is hereby authorized to confer with the Trustee, the Underwriter and Bond Counsel in order to complete the Continuing Disclosure Agreement in substantially the form submitted to this meeting, with such changes as shall be approved by such persons executing the Continuing Disclosure Agreement, their execution to constitute conclusive evidence of such approval. (Advice is given that a copy of the Continuing Disclosure Agreement in substantially the form authorized to be executed is on file with the City Clerk and is available for inspection by any interested person.) Section 7: In order to secure lower interest rates on the Bonds, the Underwriter has proposed that the City consider the purchase of a policy of bond insurance with a portion of the proceeds of the Bonds, which policy would guarantee the payment of the principal of and interest on the Bonds when due. If deemed economically advantageous by the Mayor, upon the advice of the Underwriter, the Mayor is hereby authorized to execute an insurance commitment and to do any and all things necessary to accomplish the delivery of a bond insurance policy with respect to the Bonds. Section 8 : The Mayor and City Clerk, for and on behalf of the City, are hereby authorized and directed to do any and all things necessary to effect the issuance, sale, execution and delivery of the Bonds and to effect the execution and delivery of the Trust Indenture, the Bond Purchase Agreement, the Official Statement, the Continuing Disclosure Agreement and a Tax Regulatory Agreement relating to the tax exemption of interest on the Bonds, and to perform all of the obligations of the City under and pursuant thereto. The Mayor and the City Clerk are further authorized and directed, for and on behalf of the City, to execute all papers, documents, certificates and other instruments that may be required for the carrying out of such authority or to evidence the exercise thereof. Section 9: As previously provided in the Election Ordinance, Kutak Rock LLP, Little Rock, Arkansas, is hereby confirmed as Bond Counsel on behalf of the City in connection with the issuance and sale of the Bonds. Section 10: The provisions of this Ordinance are hereby declared to be severable, and if any section, phrase or provision shall for any reason be declared to be illegal or invalid, such declaration shall not affect the validity of the remainder of the sections, phrases or provisions of this Ordinance. Section 11 : All ordinances, resolutions and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. PASSED and APPROVED this 3rd day of October, 2006. =h�cWQ&SYpF SGS;, FAYETTEVILLE ; 3 APPROVE ATTEST: :. �` .,yd .04 9,QKANSP.J�' 3 0jjGTON By: By: A Q DAN COODY, Mayor SONDRA SMITH, City Clerk i d Arkansas Democrat 7005azette . . Northwest Arkansas Times Benton County Daily Record P. O. BOX 1607 FAYETTEVILLE, AR 72702 PHONE : 479-571 -6415 AFFIDAVIT OF PUBLICATION I , Karen Caler, do solemnly swear that I am Legal Clerk of the Arkansas Democrat Gazette newspaper. Printed and published in Benton County Arkansas, (Lowell) and that from my own personal knowledge and reference to the files of said publication , the advertisement of: Ordinance 4936 Was inserted in the Regular Editions: October 13, 2006 Publication Charge : $528 . 89 Subscribed and sworn to before me This ( q day of QNC&1(j , 2006. Notary Public W"'D. My Commission Expires: Sharlene D. Williams RECEIVED Notary Public State of Arkansas OCT 2 3 2006 Sion E My Commision xpires October io Exp CITY OFFAYETrEVILLE CITY CLERKS OFFICE R #MD OCtef 2990,1006 CrrVCrrY OF FAYE-, «MLLE tri ti e" CLERKS CFFICE ORDINANCE NO. 4OU AN ORDINANCE E CITYS ZINGSAL THE ISSUANCE e evl le AND SALE OF THE E CITYS SALES AND USE TAX CAPITAL IMPROVEMENT BONDS, SERIES FOR THE PURPOSE OF FINANCING A PORTIONON OF OF THE COSTS OF (1) CERTAIN IMPROVEMENTS TO THE CITY'S WASTEWATER TREATMENT PLANE, ARKANSAS SEWERAGE AND RELATED FACILITIES, (2)CERTAIN TAIN STREET IMPROVEMENTS, AND (3) CERTAIN TRAIL SYSTEM IMPROVEMENTS; HHE BNAUTHORIZING THE EXECUTION AND DELIVERY : A A TRUST INDENTURE PURSUANT D DELIVERY THE BONDS WILL BE ISSUED AND SECURED; HIGH THE ING THE EXECUTION AND DELIVERY OF AN OFFICIAL STATEMENT PURSUANT TO WHICH THE BONDS WILL BE OFFERED; AUTHORIZING THE EXECUTION AND DELIVERY OF A BOND RIR- CHASE AGREEMENT PROVIDING FOR THE SALE OF THE BONDS . AND PRESCRIBING THE EXECU- TION AND DELIVERY THERETO.A ETO.CONTINUING DISCLOSURE AGREEMENT. AND PRESCRIBING OTHFA MATTERS RELATING THERETO. WHEREAS, the City Council of the City Of Fayetteville, Arkansas (the -City-) has previously dear- mined that mere is a great need for a Source of revenue to finance the costs of (1) the acquisition. cerlsbucten, reconstruction. extension, Improving and equipping of certain improvements to he City's wastewater baefixnt plants, sewerage and related facilities(the 'Wastewater Project'), (2) the Salutation. cansbuchon, reconstruction, repair, straightening and widening of certain City streets ane related imprwemento (the 'Sbeet Project'),.and (3) me acquisition, construction and equipping of cenalm City bail system improvements (the 'Trail Project'): and WNEREAS, the City is authorized and empowered under the provisions of the Consabtion and laws of the State OI Arkansas, including particularly Amendment 62 to the Constitution of the State of Arkansas ('Miendment 62') and Arkenssa Cede Annotated (1998 Repl. 8 2005 Supp.) Sections 14-164.301 at seq. (ae from time to titre amended, the -Local Government Bao Act-), to issue and sal its capital improvement bonds o finance the costs of various capita unprovemens such be apse comprising the Wastewater Project, the Street Project and the Trail Project. who capital Improvement bands my be secured by and payable from the receipts of the special city-wide sales and use tax authorized by the Local Government Bond Act; and WHMUAsr pursuant to the provislan5 of Ordinance No. 4891 of the City, adopted and approved an June 20, 2006 (Me 'Eloction Ordinance'), them was submitted to me qualified electors of the City four questions regarding We issuance of an aggregate of not to exceed $110,000,000 in principal amount of Capital I n trommenl bonds pursuant to Amendment 62 and the Local Government Band Act to finarlce ere capital imWovemems described in me Election Ordinance, said bonds to be I secured by a pledge of and Han upon (I) all of the receipts of a special city-wide sales and use tax loved at the rate of one-quarter of one percent (0.25%) pursuant to the Local Government Bond Act (the *0.25% Solea and Use Tax') and (If) all of the receipts of a special cily-wide Saes and use lax levied at the rate of threaquarters of one percent (0.75%) pursuant to the Local Government Bond Act (the T.75% Sales and Use Tax'): and WHEREASs at a special efec" had September 12, 2016. a majority of the qualified electors of Me City voting an the questions approved the Issuance of capital improvement bonds in the pninc: pal amounts and for each of ere specific purposes set forth on the ballot (and the corespanding levy of the 0.25% Sales and Use Tax end the 0.75% Sales and Use Tax, and Ne pledge of the receipts thereof to me payment of the Capitol Improvement bonds); and WHEREAS.as authorized under the provisions of Amendment 62 and the Local Government Bond " Act and as approved by the qualified electors of the City. the City has now determined to issue and sell Its Sales antl Use Tax Capital Improvement Bonds, Series 2006A, in Ne aggregate principal amount of not to exceed $50,000,ODO (the 'Bonds'), in order to provide far the funding of a portion of the costa of the Wastewater Project, the Street Project and the Trail Project; and WNEREASr as authorized by One provisions of Ne Election Ordinance, the City has previously made arrangements for the Sale of the Bonds to Stephens Inc., Fayetteville. Arkansas (the 'Underwriter'), pursuant to the terms of a Bond Purchase Agreement between the City and the Underwriter (Me 'Bond Purchase Agreement-) in substantially the farm presented to and before this meeting; NOW. THEREFORE, EE IT ORDAINED by the City Council of the City of Fayetteville, Arkansas Net: Section 1: Under the authority of the Constitution and laws of Ne State of Arkansas, including par- ticulany Amendment 62 to Ne Constitution of the State of Arkansas and the Local Government Bontl Act, there is hereby authorized the Issuance of bonds Of the City to be designated as 'Sales and Use Tar Capital Improvement Bonds, Series 2006A' (the 'Bards'). The Bonds shall be issued In the orig- inal aggregate principal amount of not to exceed Rtty Million Dollars (550.000,000) and shall mature rat later than November 1, 2023, in the principal amounts and bearing interest at the rales specified In the Bond Purchase Agreement. Of the $50,000,000 aggregate principal amount of Bonds here. by authorized, 525,000,000 Shall be deemed to apply to the Wastewater Project (Question 1 an the balo ), $24,200,000 shall be deemed to apply to the Street Project (Question 3 on the ballot), and 5000,1100 shall be deemed to apply to the Trail Project (Question 4 On the ballot), and the proceeds of the Bonds shall be allocated accordingly. The average yield on the Bonds as a whole shall not exceed 4.50% per annum, and the paid On as singo Bond shall exceed 4.70%. The proceeds of the Bonds will be utilized to finance a portion of the costs of the Wastewater Project the Street Project and the Trail Project, to establish a debt saw- ice reserve fa the Bonds or to purchase a surety bond for reserve purposes, to pay a premium for Oond Insurance. If deemed economically beneficial, and to pay printing, underwriting, legal and I other expanses Incidental to the issuance Of the Bonds. The Bonds shall be issued in the forms and I denominations, shall be dated, shall be numbered Shall mature, shall be subject to redemption prior 0 maturity, and shall Contain such other terms, covenants and conditions, all as set forth in the Trust Indenture submitted t0 this meeting. The Maya is hereby authorized and directed to execute and deliver the Boitls in one a more Series, each Soles to be In Substantially the farm Hereof contained in the Trust Indenture submitted to this mating, and the City Clerk Is hereby authorized and directed to execute and tleliver the Bonds and as affix the seal of Ne City thereto, and the Mayor and City Clerk are hereby authorized and direct. so to cause me Bonds to be accepted and authenticated by me Trustee. The Maya is hereby authorized o confer with the fimae, the Underwriter and Kutak Rock LLP, Little Rock, AAansas ('Band COureel'), in order to complete the Bonds in substantially the farm contained in the Trust Ndert yre Submitted to NIS meeting, with such changes as Shall be approved by such persons exe- cuting the Bands, their execution to Constitute conclusive evidence Of such approval. Section 2: In order to pay the principal of and interest an the Bonds as they mature or are called for redemption prior lo maturity, there is hereby pledged all of he receipts of the 0.25% Saes and Use Tax and the 0.75% Sales and Use Tax levieo by me Election Ordinance. The levy and collection of the 0.25% Bass and Use Tax and the 0.75% Sales and Use Tax shall Commence an the dates Ca vioed in the Local Government Bond Act and shall continue until Such time as the Barrs are his longer outstanding or sufficient funds are an deposit with the Trustee under the Trust Indenture to redeem the Bonds In full. The City covenants and agrees Nat all receipts fan the 0.25% Sales and Use Tax and the 0.75% Saes and Use Tax will be accented for separately as special funds an are books of the City, and naeipts of sad 0.25% Saes and Use Tax aro 0.75% Sales and Use Tax will be deposited and will be used solely as provided In the Trust Indenture. Section 3: To prescribe the terms aro conditions upon which Ne Boos are to be executed, authen- ticated. Issued, accepted, held and secured, the Mayo is hereby authorized and directed to exe- Me and acknowledge a Trust Indenture (the -Trust Indenture-), by and between the City and Somans First Trost Company, N.A., Pine Bluff, Arkansas (Me 'rrustee), and the City Clerk is her- by Sustained and directed to execute and acknowledge the Trust Indenture and to affix the seal Of Ne City thereto, and the Mayor and the City Clark are hereby authorized and directed to cause the Trust Indenture to be accepted. executed and acknowledged by the Trustee. The Trust Indenture is hereby approved in Substantelly the fora submitted to this meeting, including, without limtation, the provisions thereof Construing o the pledge of 0.25% Sales and Use Tax receipts and 0.75% Sales and Use Tax recaps and me temp of the Bods. The Mayor is hereby au0ortzed o confer with the Trustee, the Underwriter and Bond Counsel in order to Complete the Trust Indenture in substantially Ne form subrritted o this meeting. with such changes as shat be approved by such persons exe- ortug the Tmsi Indenture, their execution to constants conclusive evidaae of Such approval. (Advice Is gi that a copy of the Trust Indenture in Substantially the farm authorized to be execut- SO Is an file with the City Clerk and Is available for Inspection by any Intereste0 person.) Section 4: There U hereby authorized and approved a Preliminary Official Statement of the City. - . Including the cover page aro appendices attached thereto, relating to If Bands. The Prelirrisary Official Statement is hereby -deemed lirel' by the City within the meaang of U.S. Securities and Exchange Co mussim Rule 15c2.12. The distribution of the Preliminary Official Statement is here- by approved. The Pralwartary Official Stater ent, as amended to conform to the terms of the Band Purchase Agreement Including Exhibit A thereto, and with Such other changes and amendments as are mutuety agreed to by the City and me Underwriter, Is herein referred o as the 'Official Slaement; and the Maya Is hereby authorized to execute the Official Sstement la and an behalf of the City. The Official Statement Is hereby approved in substantially the form of the PreluNrary Official Statement submitted to this meeting, end the Mayor is hereby authorized to confer with the Trustee, the Underwriter and Bond Counsel in order to complete the Official Statement in substan- Iialy aro farm of the Preliranary Official Statement submitted to Ws meeting, with such changes as Shall be approved by such persons, the Mayas execution to consliwe conclusive evidence of such approval. (Advice Is given that a Copy of the Preliminary Official Statement Is on file with the City Clerk and is available for Inspection by any Interested person.) Section 5: In order to prescribe the terms and conditions upon which the Bands are to be sold t0 the Underwriter, the Maya Is hereby authorized and directed to execute a Bond Purchase Agreement an behaf of the Ciry, to be dated as of the date of its execution (the -Bond Purchase Agreement'), by and between the City and the Underwriter, and the Bond Purchase Agreement is hereby approved In substantially the form submitted to this meeting, and the Mayo is hereby authorized to confer with the Underwriter and Bond Counsel in order to complete the Bond Purchase Agreement In substantially the lam submitted to this meeting, with such changes as shall be approved by such means executing me Bond Purchase Agreement. their execution to Constitute conclusive evidence of such approval, (Advice Is given Nal a copy of the Bond Purchase Agreement in substantially the farm authorized to be executed Is on file Win the City Clerk and is available for inspection by any interested person.) Section 6:In order to a6vide or continuing disclosure of certain financial and operating information with respect 10 the 0.25% Sales and Use Tax, the 0.75% Sales and Use Tax and the City in compli- ence with the provisions of Rule 15c2 12 Of the U. S. Securities and Exchange COrlvgission, the Maya is hereby authorized and directed to execute a Continuing Disclosure Agreement to be dated as of the date of its execution (the -Continuing Disclosure Agreement'), by and between the City and Me Trustee. and me Mayo Is hereby authorized and directed to cause the Continuing Disclosure Agreement to be executed by the Trustee. The Continuing Disclosure Agreement is hereby appini In Substantially the form submitted to this meeting, and the Maya is hereby authorized to confer with Me Trustee, the Underwriter and Bond Counsel in order to complete the Continuing Disclosure Agreement in substantially the lam submitted to his meeting, with Such changes as snail be approved by won persona executing the Continuing Disclosure Agreement, their execution to constitute conclusive evidence of such approval. (Advice is given het a copy of the Continuing Disclosure Agreement in substantially the ram auRa- Ized to be executed Is on file with the City Clerk and is available for Inspection by any interested per- son.) Sectign 7: In order to secure lower Interest rates on he Sands, the Und iter has proposed that Me City consider he purchase of a policy of bond insurance with a portion Of the proceeds of the Bonds, which polity would guarantee the payment of the principal Of and interest an he Bonds when due. If deemed economically advantageous by the Mayor, upon the advice of Ne Underwriter, the Maya is hereby authorized to execute an insurance couniu enl and to do any and all things nec- Sasary to accomplish the delivery of a bond Insurance policy with respect to the Bonds. Section 8: The Maya and Ciry Clerk, far and an behalf of the City, are hereby authorized and direct- ad to do my and all things necessary to effect the issuance, sale, execution and delivery of the Banco and to effect the execution and delivery of the Twat Indenture, me Bond Purchase Agreement Ne Official Statement. me Continuing Disclosure Agreement and a Tax Regulatory Agreement relating to the lar exemption of interest an Ne Bands, and to perform an of he obliga- tions of me City under and pursuant Unrest. The Mayor and rap City Clank are further authorized and directed. fa and an babel of the City, to execute all papers, documents, certificates and Other instruments that may be required far the Carrying out of such gutta ny or to evidence the exercise thereof. Section 9: As previously provided in the Election Ordimrice, Kutak Rack LLP, Little Rock, Arkansas, N hereby confirmed as Bond Counsel an behalf of the City In Connection with the Issuance and sale of the Bads. Section 10: The provisions of this Ordinance we hereby declared is be severable, and if any sec- tion, phrase ar provelm shall for any reason be declared to be illegal a invalid, such declaration stall rot affect the validity of the remainder of the Sections, phrases or provisions of the Ordinance. Section 11: All ordinances, resolutions and parts thereof in Conflict herewith are hereby repealed to Me expert of such Conflict. PANED bus APPROVED rids 3rd day of October. 2006. APPROVED: ATTEST. W. By. DAN COODVr Wyer SONORA SMITH, City Chore ne A /a /3/oG City of Fayetteville 5� 93G Staff Review Form City Council Agenda Items or rtds� G 1 P/ Contracts 5x0t,L1,5 e 10/3/2006 City Council Meeting Date Paul A. Becker Finance Finance Submitted By Division Department Action Required: Approval of a bond ordinance authorizing the issuance of Sales and Use Tax Capital Improvement Bonds Series 2006 not to exceed $50 million. Debt to be funded by dedicated sales $ taxes presuant to the special election Category / Project Budget Program Category / Project Name Account Number Funds Used to Date Program / Project Category Name Project Number Remaining Balance Fund Name Budgeted Item Budget Adjustment Attached Previous Ordinance or Resolution # Department Director Date Original Contract Date: Original Contract Number: q - 2b -d6 Cita rney Date Received in City Clerk's Office Q Q ' x6 - z0o6 Finance and Internal Service Director Date Received in Mayor's Office Mayor Date Comments: City of Fayetteville Staff Review Form City Council Agenda Items or Contracts 10/3/2006 City Council Meeting Date Paul A Becker Finance Finance Department Submitted By Division Department Action Required: Approval of a Bond Ordinace Authorizing the Issuance of Sales and Use Tax Capital Improvement Bonds Series 2006 not to exceed $4000,000.00. — , 4 $ eae oar rtrn Cost of this request Category / Projir � ime $ I o1�\C_ p'Irl u�J r,j,�7r(�K., Account Number Funds Used L rme - $ ' . . ., Project Number Remaining E Protopi Budgeted Item Budget Adjustment , c (tHrOIImOS) Ointment Previous Ordinance or Resolution # a, zoo t Department Director Date Original Contract Date: Original Contract Number: City Attorney Date Received in City Clerk's Office Finance and Internal Service Director- Date Received in Mayor's Office Mayor Date Comments: i Sondra Smith - agenda item Page 1 From: Marsha Farthing To: Becker, Paul Date: 9118106 7:54AM Subject: agenda item Good morning Paul, Dennis left me a message late Friday asking that we change the language of the agenda item to not to exceed $50,000,000 to give us some flexibility to get more bonds in this issue for water and sewer if possible. I am copying Sondra so she can change the amount. Marsha CC: Smith, Sondra i Faye I le APKA NSAS THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE To: Mayor Dan Coody and Fayetteville City Council From: Paul Becker, Finance Director Date: September 28, 2006 Subject: Bond Ordinance-Approval of Bond Ordinance Authorizing the Issuance of Sales and Use Tax Capital Improvement Bonds Series 2006 Recommendation Staff recommends approval of the ordinance to move forward with the bond issue to fund the needed programs. Discussion Approval of the ordinance will authorize the Mayor to execute necessary documents to issue bonds to be repaid by dedicated sales taxes pursuant to the Special Election. This would be Phase One of the program providing funds for the WSIP Project, Transportation and Trails. The maximum amount authorized in the ordinance would be $50 million but the actual amount issued would probably be less depending on market conditions. THE CITY OF FAYETTEVILLE, ARKANSAS KIT WILLIAMS, CITY ATTORNEY DAVID WHUAKER, ASST. CITY ATTORNEY DEPARTMENTAL CORRESPONDENCE LEGAL DEPARTMENT TO: Dan Coody, Mayor I City Council FROM: Kit Williams, City Attorney I DATE : September 26, 2006 1 RE : Bond Ordinance Gordon Wilbourn of Kutak Rock has drafted the attached Bond Ordinance which I will read at the October 3`d meeting. Dennis Hunt of Stephens, Inc. (our underwriter) plans to issue the bonds on November 7`I' with the bond closing scheduled for November 16`h. This rapid schedule was planned because the City needs to secure prompt funding for the remaining contracts to finish the Wastewater Systems Improvement Project. I would like to thank Gordon and Dennis, as well as Marsha Farthing and Paul Becker for getting the necessary documents (Bond Ordinance, Bond Purchase Agreement, Trust Indenture, Continuing Disclosure Agreement and Preliminary Official Statement) drafted, reviewed and finalized prior to the October 3 , 2006, City Council meeting. I i i