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Home My WebLink About1966-07-12 MinutesIl he Board of Directors of the city of Fayetteville, Arkansas, met in special session on Tuesday, Special Meeting July 12, 1966, in the Board of Directors Room in the City Administration Building at 12;00 o'clock Poon CST. Present: City Manager Gerald G. Fox, City Attorney Hugh Kincaid, City Controller Albert J. Jones, ' and Board Members: James T. Kerlin, Sylvia Swartz, Joe HcFerran, Garland Melton, Jr., Arnold. Christie, (Don Trumbo, and Dale Dunn. Absent: City Clerk George J. Davis, ,The Mayor reported that the purpose of the meeting was to discuss a proposed Bond Contract with Purpose of Meeting. Republic National Bank, Dallas, Texas, for the issuance of bonds for the general purpose of extending hand improving your &dsting sewer system and the purchase of right-of-way and Pape costs related Ito the improvement of the water supply and other improvements and additions to the water system, and that all members of the Board of Directora, as well as a representative of the Northwest Arkansas Times Newspaper, had been notified personally by the Mayor, but.City Clerk George J. Davis was out of the city on vacation and could not attend. Judy Malone Acting City Clerk Director Helton moved that, in the absence of City Clerk George J. Davis, Judy Malone be named to act as City.Clerk. IThe motion was seconded by Director Kerlin and passed unanimously. The City Manager presented the proposed contract from Republic National Bank, Dallas, Tbkas, for the issuance of Lmprovement Bonds to be issued for the general purpose of extending and improving Authorized Contract your existing sewer system and the purchase of right-of-wag.and.pipe costs related to the improvement with Republic National 'of the water supply and other improvements and additions to the water system. Bank lifter a long discussiost Director Kerlin moved to accept the proposal and that the Mayor and City (Clerk be, and they are hereby, authorized to eaebute the Contract. seconded by Director Swartz and passed unanimously. The motion was IThe Contract and the acceptance thereof were spread on the minutes as a permanent record and reads As follows: I I .. 1 il July 12, 1966 norable Mayor and and of Directors ty of Fayetteville,AArkaneas is our understanding that your City is contemplating the issuance in installments of approximately ,000,000 of Improvement Bonds. Such bonds to be special obligations of your City payable from and cured by a first lien on and pledge of the revenues of the City's Water and Sever System, after duction of seasonable expenses of operation and maintanance and are to be issued for the general rpose of extending and improbingyour existing sewer system and the purchase of right-of-way and pe costs related to the improvement of the water supply and other improvements and additions to a water system. This contemplated financing will require several years to complete and in order provide the City with greater flexibility -in its future financing we offer the following proposal. regard to the first installment: 1) We will buy from you and you will sell to us your legally issued bonds at par plus accrued Brest an issue of $4#300,000 Water and Sewer Syster Revenue Improvement Bonds which will rank on equal parity with the presently outstanding water and vewer revenue bonds as provided for in olution 7-63 of April 8, 1963, as substantuated by an independent Certified Public Accountants tificate on file with your City Clerk that the net revenues for the system in the immediately ceeding fiscal year exceed 133 1/3% of the maxith m annual debt service requirements of the outstanding ds and this proposed issue. Such bonds are to bear interest payable semi-annually at the rates as forth below; All bonds will bear interest at the rate of 4.10% from 6-146 to 6-140, 4J% thereafter. bonds will not be subject to conversion. 2) The bonds will be callable in inverse numerical order at par plus accrued interest from xcess funds in the construction account on any interest payment date; callable, in whole, from unds from any source at par plus accrued interest on any interest payment date on or between 2-148 and 12-1-70; callable in part at par plus accrued interest on any interest payment date rom excess revenues; and callable in whole at 101 plus accrued interest on any interest payment ate on or after 6-1-71. 3) The City hereby agrees to designate the Republic National Bank of Dallas, Texas as the g agent on this issue so long as any of these bonds or the contemplated refunding bonds remain andina. 4) The City hereby agrees that contemporaneously with the issuance of and payment for the her, osed issue it will purchase or cause to be purchased withtthe proceeds of the issue a series of ificates of Deposit from the Republic National Bank of Dallas, Texas that will bear interest at rate of 5% per annum and be issued in the amounts and mature on the dates as set forth below. Maturity Date Amount 1-147 $300,000 4-147 300,000 7-1-67 750,000 10-1_67 750,000 1-148. 100000000 4-148 1,0000000 each maturity date the funds from the matured Certificate of Deposit will be deposited in an account th the Republic National Bank of Dallas, Texas to be designated "City of Fayetteville, Arkansas, ter and Sewer Revenue Improvement Issue, Construction Account". It is understood that the atove turity schedule is tenative. If extra funds are available in the construction account, they shall reinvested in Certificates of Deposit in account with Republic National Bank or direct obligations the government upon approval of Republic National Bank of Dallas, Texas. act 5) The City agrees that contemporaneously with the issuance of and payment for the proposed issue .) it'will cause to be deposited*with the Republic National Bank of.Dallas, Texas as Paying Agent from the proceeds thereof into a Reserve Fund the sum of $200,000. No additional deposits need be made in this Reserve Fund unless it be reduced below'this required amount. The Reserve Fund may be invested and re -invested by the City from time. to time in accordance with'law.' Income generated from investments may be deposited in any City water or sewer accounts as determined by the City. The Republic National Bank, a national banking institution, will secure funds on deposit -with it in full compliance with Section 9.10 of Regulation 9 of the Comptroller of the Currency of the United States Treasury. 6) We agree to pay all expenses incident to the legal issuance of these bonds including the follo A. Printing of the Bonds Be Attorney's Fee C. Travel and Communication It is expressl# understood that the City id to pay ariy necessary publication and any litigation costs. 7) This offer is subject to the unqualified approving legal opinion of Messrs. Dumas, Huguenin and Boothman, Attornety, Dallas, Texas and Messrs. Smith, Williams, Friday and Bowen, Attorneys, Little Rock, Arkansas. 8) As reimbursement for expenses incurred, the City agrees to pay us upon delivery of the bonds cash fee in.the amount of $19,325. This contract contemplates the issuance of additional installments of parity bonds in excess of the hereinbefore described installment. At such time as the revenues generated by the water and sewer system will legally support, as set forth in Resolution 7-63, the issuance of additional parity debt, the City is obligated to notigy us in writing of their intent to issue additional bonds and we shall have the opportunity to submit a proposal substantially in conformance with the above. Respectfully submitted, (S) John M. Lewis John N vias Authorized Representative ACCEPTANCE ,ed by the Board of Directors of the City of FAyetteville, Arkansas as this the 12th day of July, 1 MAYOR (/ AC NG CIT CLERK e being no further business, Director Christie moved to adjourn. motion was seconded by Director'Dunn and passed unanimously, whereupon the Mayor declaredthemeeting urned. ST: APPROVED: Don Trumbo, Mayor Judyg^lonesdWbting City Clerk J 11