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HomeMy WebLinkAbout2000-10-24 - Agendas - Final FAYETTEV?LLE THE CITY OF FAYETTEVILLE, ARKANSAS SPECIAL AGENDA CITY COUNCIL OCTOBER 24, 2000 A special meeting of the Fayetteville City Council meeting will be held on Tuesday, October 24, 2000 at 4:30 p.m. in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. 1 , TCA CABLE: A resolution authorizing the TCA Cable Partners to temporarily operate the Cable Communications System. 2, TRUSTEE/PAYING AGENT: A resolution to appoint Bank of Oklahoma as Trustee/Paying agent for the Variable Rate Demand Bonds. 113 WEST MOUNTAIN 72701 501521-7700 FAX 501 575-8257 Meeting of October 24, 2000 DANIEL SANTOS YOUNG RUSSELL REYNOLDS AUSTIN / Q DAVIS TRUMBO HANNA 1� A ^ , DANIEL d C SANTOS YOUNG D RUSSELL 1L REYNOLDS LA AUSTIN DAVIS TRUMBO HANNA Meeting of October 24, 2000 p, DANIEL SANTOS Q YOUNG \ RUSSELL 1�GA REYNOLDS AUSTIN LA DAVIS TRUMBO HANNA DANIEL SANTOS YOUNG RUSSELL REYNOLDS AUSTIN DAVIS TRUMBO HANNA i FAYETTEV"TOLEE THE CITY OF FAYETTEVILLE, ARKANSAS SPECIAL AGENDA CITY COUNCIL OCTOBER 24, 2000 A special meeting of the Fayetteville City Council meeting will be held on Tuesday, October 24, 2000 at 4:30 p.m. in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. 1 . TCA CABLE: A resolution authorizing the TCA Cable Partners to temporarily operate the Cable Communications System. 2, TRUSTEE/PAYING AGENT: A resolution to appoint Bank of Oklahoma as Trustee/Paying agent for the Variable Rate Demand Bonds. 113 WEST MOUNTAIN 72701 501521-7700 FAX 501 575-8257 i 0 0 STAFF REVIEW FORM AGENDA REQUEST X CONTRACT REVIEW GRANT REVIEW For the Fayetteville City Council meeting of Tuesdav , Oct . 2000 FROM : Pegav Vice Purchasing Administrative Services Name Division Department ACTION REQUIRED : Approval of a resolution to appoint Bank of Oklahoma as Trustee / Paying agent for the Variable Rate Demand Bonds . COST TO CITY : $Qicoo , 00 ( k,tu3oA,U.i) 50/ 000 Wlcer6 C""es Cost of this Request Category/ Project Budget Category/ Project Name 51m -'6800-,1502: o O O Account Number Funds Used To Date Program Name 1 gH64� - �O tJ0000 WdxTEfl ; SE{JE.R Project Number Remaining Balance Fund BUDGETVIEW : Budgeted Item Budget Adjustment Attached Budge11MInager Administrative Services Director CONTRACT/GRANT/LEASE REVIEW : ( � GRANTING AGENCY : /D /9Od 71Itwri i$� � LOO Acco tin Man er Date Interna Auditor Da e 1 City Attorn 0 Date ADA Coordinator Date uk. Q Ib- 19 -00 Purchasing Officer Date STAFF RECOMMENDATION : Approval of Bank of Oklahoma as Trustee / Paying Agent for the Variable Rate Demand Bonds . Division Head Date Cross Reference New Item : Yes No Departme Director Date _1 ( ,0'✓ Prev Ord/Res N : e er Admin i ti ' ces UDirector ��D (te / Y/ ) Orig Contract Date : MayorF Date Page 2 RAFF RUIN FORM Description -���M fav 6 � �ti�� Meeting Date_ /O Cments: Reference Cments: Budget Coordinator Accounting Manager City Attorney Purcbasing officer ADA Coordinator Internal Auditor FAYETTEVI,LE • THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE TO : Mayor Fred Hanna and City Council FROM: John Maguire, Administrative Services Director DATE: October 18, 2000 SUBJECT: Variable Rate Demand Bond Program As part of the Variable Rate Demand Bond Program an independent trustee and paying agent must be appointed. The City advertised for proposals from qualified financial institutions for trustee and paying agent services. A professional selection committee met and reviewed the submitted proposals. The committee recommends Bank of Oklahoma as the trustee and paying agent for the $ 10,000,000 City of Fayetteville, Water and Sewer System Revenue Bonds, Series 2000. The annual cost for the trustee and paying agent services are estimated to be $4,500 and will be paid from Water & Sewer Fund. CITY OF FAYETTEVILLE, ARKANSAS REQUEST FOR PROPOSALS 00-18 TRUSTEE AND PAYING AGENT October 9, 2000 The City of Fayetteville (the "City") is seeking the services of a qualified financial institution to serve as an independent trustee and paying agent ("Trustee") in connection with the City's proposed $ 10,000,000 weekly variable rate demand notes (The Bonds). You are invited to submit a proposal expressing interest in providing such services to the City in accordance with the terms and conditions outlined herein. Involved Parties Stephens Inc. of Fayetteville will serve as financial advisor, and Kutak Rock Law firm of Little Rock will serve as legal advisor in connection with the Bonds. Bank of America and Bank of America Securities have been contracted to provide variable rate bond dealer services. The City expects the Bonds to have a relatively short maturity of 2-5 years. A rating will be sought from either Standard & Poors Corporation or Moody's Investor Services. The City anticipates issuing a total of $ 10,000,000 in Bonds. The Trustee has a combined capital and surplus of at least $50500000. Scone of Services The following is a general list of services to be provided by the Trustee. It is not intended to be all inclusive as unanticipated situations may arise requiring additional assistance. The successful respondent will be expected to work with the staff of the City, as well as all professional firms involved, towards successful issuance of the Bonds at a minimum net interest cost. I . Cooperate with the staffs of the City and other professional firms to complete preparation and documentation for the issuance of the Bonds in a timely manner. 2. To complete and authenticate the Bonds prior to closing. 3 . To execute all documents necessary for the successful closing of the bond issue. 4. To provide annual administrative services in connection with the Bonds including, but not limited to, disbursement of interest payments to the bondholders; disbursement of principal payments to bondholders; registration, transfer and reissuance of bonds as requested by bondholders; transmittal of annual, special and final redemption notices; and provide monthly reports to the City showing assets, receipts, and disbursements from the bond funds. 5 . Prepare and provide reports required by local, state, and federal agencies, including the Internal Revenue Service, as may be necessary or required by relevant laws. 6. Cooperate fully with the City in connection with any litigation challenging or otherwise affecting the validity of the Bonds. However, the trustee shall be under no obligation to institute any affirmative or defensive legal action prior to consulting with and obtaining the approval of the City. The City agrees to indemnify the trustee against any and all costs and expenses, outlays and counsel fees and other reasonable reimbursements, and against all liability. Should the trustee require the services of legal counsel in connection with any question concerning the legality of the Bonds, the City shall reimburse the trustee for all costs and expenses, outlays and counsel fees and other reasonable disbursements, provided that the trustee informs the City of any such action before the commencement of such action and the City approves. Qualifications Respondents to this RFP will provide the information in the following order regarding qualifications and characteristics of their firm. 1 . Provide detailed descriptions of three similar variable rate bond issues for which the institution served as trustee and paying agent. These references should be selected to demonstrate experience in a local government environment, experience with bond issues the repayment of which are secured primarily by a pledge of water and sewer rates, and experience with administrative issues similar to those that can be expected in serving the City in connection with this bond issue. Names, addresses and phone numbers of contact persons within these three organizations must be provided as references. 2. Documentary evidence confirming the institution's qualifications to serve as corporate trustee for municipal bond issues. 3 . Describe the institution's history and experience as a corporate trustee including, the following specific information: (a) Total number of variable rate bond issues for which your institution currently serves as trustee; (b) Aggregate dollar amount of all variable rate bond issues currently handled by the institution as trustee; (c) Amount of the largest variable rate revenue bond issue handled by the institution as trustee; and (d) A detailed statement of the fee(s) and expenses you would charge as trustee and paying agent in connection with the Bonds on the form provided as Exhibit "A" to this request for proposals. 4. Provide the name and qualification profile for all individuals who will work directly with the City. Clearly identify who will be your team leader, and what the role of each participating individual will be relative to the Fayetteville assignment. 5 . Provide any other data that specifically details your institution's unique qualifications for this type and size bond issue. 6. Outline any and all defaulted bond issues for which the institution has served as trustee during the past ten years in which the institution or any trust officer employed by the institution has ever been adjudged to have been negligent in its fiduciary capacity. Evaluation and Selection Criteria Each proposal received will be reviewed by a professional selection committee consisting of relevant City staff members and advised by the financial advisor. A selection recommendation will be made to the Mayor by the professional selection committee. The recommendation will be based upon each applicant's responsiveness to the request for proposals set forth above and the overall perception of the institution's capability to best serve the needs of the City. The professional selection committee will rate the submissions based on a point system as outlined below. At the present time it is not anticipated that verbal presentations and interviews will be scheduled, however, the City may, at its discretion, schedule such interviews as it deems appropriate. The successful applicant must agree that the proposed fee will be contingent upon the successful sale of the bond issue. 1 ) Qualifications in Relation to the Specific Project to be Performed . . . . . . . . . . . . . . . . . 20 2) Experience, Competence, and Capacity for Performance . . . . . . . . . . . . . . . . . . . . . . . . 20 3) Proposed Method of Doing Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 4) Past Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 5) Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Right of Reiection The City reserves the right to reject any and all proposals, to waive technicalities or informalities, and to accept any proposal deemed to be in the best interest of the City. Submission of Proposals Respondents will be expected to address the issues itemized above under the caption "Qualifications" in order. Please submit a fax transmittal ofyour proposal to Peggy Vice, Purchasing Manager, 113 West Mountain, Fayetteville, Arkansas 72701 no later than 11 :00 a.m. on October 13, 2000. uestions The primary City staff contact for this project will be John Maguire. Questions about this RFP may be directed to John Maguire at (501 )575-8330 or Dennis Hunt at (501 ) 718-7400. 604 �oq 6n U C Y N . N > Q to K T T O Y7 N N N N N N N N a a CL a a CL ol CL 06 v N cc u F W W v c w F W •.. U �' d E U F W y `�° � o � aEi a ►7 E u w FCL i C U b G .G Oct-1100 11 :54an Frog-WSS i BARNETT +4000 T-476 P. 02/04 F47F CrrY OF FAYETTEviLLE, ARKANSAs RESOLUTION No. AllTHORmNG TCA CABLE PARTNERS TO TEMPORARILY OPERATE THE CABLE COMMUNICATIONS SYSTEM WHEREAS, the City of Fayetteville, Arkansas ("City") passed and adopted an Ordinance (hereinafter referred to as the "Franchise") granting a non-exclusive franchise; and WHEREAS, the Franchise is currently held by TCA Cable Partners ("TCA"); and W WmREAS, pursuant to Section 47 U.S C. § 546(a) TCA provided notification to the City of TCA's intent to seek renewal of the Franchise under 47 U S C § 546(a-g); and WEEREAS, pursuant to Section 47 U.S.C. § 546(a) the City properly commenced franchise renewal proceedings; and WHEREAS, the City and TCA have agreed, pursumt to 47 U.S.C. § 546(h), to conduct franchise renewal negotiations informally in an attempt to reich a mutually acceptable franchise agreement; and WHEREAS, the City and TCA are interested in continuing informal discussions and negotiations regarding franchise renewal; and WIFRFAS, both the City and TCA desire to expressly reserve all of their respective rights under state and federal law. NOW, THEREFORE, be it resolved by the City Council of the City of Fayetteville, Arkansas that' 1 . The City hereby authorizes TCA to operate the cable television system in the City of Fayetteville, in full compliance with all of the terms and conditions of the Franchise, for a period commencing on November 1, 2000 and continuing through either the date on which TCA's Franchise is either renewed or until December 31, 2000 whichever shall first occur. 36a28711 OCT-11-2000 10 : 52 +4900 P . 02 Oct-I.1-00 11 : 64am From-MOSS A BARNETT +4000 T-476 P . 03/04 F-476 2. This Resolution shall become effective upon the occurrence of both of the following conditions. (1) The Resolution being passed and adopted by the City Council of the City of Fayetteville. and (2) TCA's acceptance of this Resolution and the Franchise for the term specified in paragraph (1) above, provided TCA accepts and agrees to each and every term of this Resolution and the Franchise within fourteen (14) days from the date this Resolution is passed and adopted. Adopted by the City Council of Fayettevillr. Arkansas this day of 2000 CITY OF FAYETTEVILLE, ARKANSAS By Its ATTEST- CERTIFICATION I City of the City of Fayetteville, Arkansas the custodian of its records, do hereby certify the above is a true and exact copy of a Resolution passed, adopted, and approved by the City Council of said City on 2000. Dated: 2000 By: Its- 36921711 2 OCT—it-2000 10 : 52 +4900 P . 03 Oct-11 -00 1'1 : 54an From-MSS i BARNETT' +4900 T-4T9 P . 04/04 F-415 ACCEPTANCE TCA Cable Partners, hereby acknowledges the City of Fayetteville, Arkansas Resolution No. ("Resoluriou") and Ordinance No. attached hereto and referenced in the Resolution ("Franchise") and hereby accepts each and every term, provision and recital of the Resolution and agrees to be bound by the terms and provisions of the Franchise nn accordance with the Resolution Dated 2000 TCA CABLE PARTNERS By: Its: SWORN TO BEFORE ME this day of 2000 NOTARY PUBLIC 366287/1 3 OCT-11-2000 10: 52 +4900 P• 04 MOSS & BARNETT A emren.ioa,i n.uocunon BRIANT. GROGAN 4800 bells Fargo Center 612.347.0340 90 South Seventh Street GI'o an moss-bal'R¢[[.C¢m Telephone 612.347.0300 Minneapolis. %IN 55402-4129 C BQ �c !+� - i Facsimile 612.339.6686 VIA FACSIMILE AND U.S. MAIL O( j , '; aulcmoss-barneu.com October 11 , 2000 0/�A�OR/yrYS��v� OFF�O� Jerry Rose, Esq. City Attorney 113 West Mountain, Room 302 Fayetteville, AR 72701 Re: City of Fayetteville, Arkansas Dear Jerry: Pursuant to our telephone conversation you asked that I provide you with a brief overview of the work I have done on behalf of the City of Fayetteville, Arkansas ("City") regarding both the cable television and telecommunications matters. With respect to the cable television project, the work began with a meeting at the Fayetteville City Hall with representatives of Cox Communications ("Co)e"). In preparation for that meeting I reviewed the needs assessment information which the City had previously documented as well as the draft franchise agreement prepared by your office. Following the face-to-face meeting with Cox representatives I began a series of telephone conferences with Cox' s legal counsel, Mr. Gary Lutzger. Mr. Lutzger is a very competent attorney from Washington, D.C. and the negotiation process has required a line-by-line review of the City' s draft document. As you and I discussed, I intentionally volunteered to take responsibility for all redrafts of the franchise document to ensure that the City retained control of authorship. I have prepared one revised draft and have since gone back through those revisions with Mr. Lutzger to ensure that he and I are in agreement. This document will shortly be forwarded to your attention and to Cox representatives for review and consideration. I anticipate that only a handful of major issues will remain including the institutional network, PEG access funding and franchise term. With respect to the institutional network, this issue has presented the greatest challenge during the negotiation process. The City and Cox have exchanged information regarding the institutional network and it appears the costs associated with meeting the City' s needs may be extensive. We are continuing to explore a number of options with Cox to address the City's needs although this process has proven to be quite time consuming and has resulted in numerous delays. I anticipate that resolution of the institutional network will be the most difficult term to address in completing the cable television renewal negotiations with Cox. With respect to the telecommunications matter, this process began with me first reviewing all of the existing licenses, agreements and related documentation which the City has in place with its MOSS & BAP� NETT Jerry Rose, Esq. October 11 , 2000 Page 2 existing telecommunications providers. I have also reviewed questions and information with the Telecommunications Commission and have participated in telephone conferences with that group to address additional issues. Thereafter I worked closely with your office to develop a draft telecommunications ordinance which will assist the City in responding to the requests it has received from new telecommunications providers seeking access to the City's rights-of-way. After the telecommunications ordinance was prepared, we circulated it to all interested parties. I have worked with legal counsel from Adelphia Communications to address concerns which Adelphia had with respect to the ordinance. In particular we reviewed issues relating to the level of compensation Adelphia would be required to remit for access to the rights-of-way. As you may recall, I traveled to the City to be present for the City Council' s consideration of the telecommunications ordinance and at that time we learned of a number of concerns from Southwestern Bell. Unfortunately, these concerns had not been relayed to us earlier and therefore it was not possible for the council to take final action on the ordinance at that time. Since then I have worked with Southwestern Bell' s attorney, Mr. Ron Young, to address a number of his client' s concerns and anticipate that a revised draft of the ordinance will be forwarded to your office in the next several days. I recommend that this document again be circulated to all interested parties so that when it is placed before the City Council all of the providers will have had an opportunity to have input. A great deal of the work on both the cable television and telecommunications matters has now been accomplished and I am optimistic that both documents will soon be in a form to present to your council. As described above, the institutional network, however, remains somewhat of a wild card. Depending upon the desires of the City I anticipate at least one more visit to the City to address the cable television franchise before the council, should you so desire. It may be necessary for additional visits to conclude the cable television and telecommunications matters, but only to the extent you deem necessary and appropriate. I hope this letter helps to summarize the work which has been performed on behalf of the City with respect to the above-described matters. If you should have any questions or if I can provide any additional information or detail, please feel free to contact me. Very truly yours, /3/ nn ^^ __ i v � Brian T. Grogan BTG/tlh 369456/1 . T 16 2000 9 : 48 AM FR CCI LEGHL8eHLUULHIURYb4J nb4n IV y1nUln ( n6J17 r . ucin3 • • Co; Ccm nicaticm. Ira. 1400 Lake Hum Orim NE Atlanta. Georgia 3MI9 1404) 843-5000 October 16, 2000 CON COMMUNICATIONS VIA FACSIMILE AND U.S. MAIL Jerry E. Rose, Esq. City Attorney City of Fayetteville 113 West Mountain Fayetteville, Arkansas 72701 Re: Cox Cable Television Franchise Dear Jerry: As you know, Gary Lutzker, on Cox's behalf, and Brian Grogan, on the City's behalf have been diligently negotiating the renewal of Cox's cable television franchise since we all convened in Fayetteville eadicr this year. i understand from Gary that they have made significant progress on the renewal but that a number of issues remain outstanding. Included among the open issues are the terns and conditions under which institutional network services would be provided to the City. We are currently preparing cost estimates based on the information we recently have received from the City regarding the level of services desired and the locations to which the services would be provided, and we hope to forward this information to you and Brian within the next several weeks. I also believe that Brian is in the process of preparing a revised draft of the finnchbw agreement to reflect the progress he and Gary have made, which be expects to distribute sometime this week. We are pleased with the amount of progress that has been made to date, but we also are concerned that the parties will not have resolved all of the open issues, in particular those surrounding the institutional network services, prior to the expiration of our current franchise on November 1, 2000. Accordingly, we are respectfully requesting that the City grant a short-term extension of the franchise through March 31, 2001 in order to permit Cox and the City to complete their negotiations. Although we hope to complete the negotiations in advance of that date and will work diligently to accomplish that goal, we believe that extending it through March would avoid the need to request yet another extension from the City Council in the event the negotiations take longer than expected. OCT-16-2000 07 : 41 404 843 5845 P . 02 . )CT IS 2000 9 : 49 RM FR CCI LEGAL & REGULATORY843 5845 TO 915015758315 r . e0ir� a A Jerry E. Rose, Esq. • • October 16, 2000 Page 2 On a related note, the City has asked Cox to consider upgrading its cable television system to $62 MHz, rather than to 750 MHz as previously planned by Cox. As we indicated earlier, Cox was willing to accede to the City's request, in return for the City's commitment to grant a 15-year franchise. You responded that you were not in a position to make that commitment, as it is a decision that must be made by the City Council. Even though we were disappointed in that response, we certainly appreciated and understood it. As a result, we proceeded with our upgrade to the extent possible, but we have now reached a point in our construction activities that we must either suspend the upgrade pending final determination by the Council or move forward with either the 862 MHz or 750 MHz platform. We feel strongly that it is in both the City's and Cox's best interests to proceed with the upgrade without delay, so we have rejected the former option. We have elected instead to press ahead with the City's requested 862 MHz upgrade. Cox understands that we have no guarantee that the City will reciprocate with a 15-year franchise term, but we are optimistic that the goodwill we have shown by this decision, and the benefit that will be reaped by the City as a result, will be duly noted by the Council. We also hope that you will encourage the Council, if you feel it appropriate, to grant our request for the 15- year term As a result of our upgrade decision, Cox hopes to begin tinning on the fust of the newly upgraded fiber nodes by the end of this year. We are excited about that prospect and wig that the City will be as well. We look forward to receiving Brian's forthcoming draft of the franchise and to continued progress on the negotiations. In the meantime, we would appreciate hearing from you or Brian in response to our request for the extension. Please feel free to contact me directly at 404.269.6780, or Gary Lutzker at 202.776.2107. Very truly yours Deborah L. Reichlb Director of Government Affairs cc: Mr. Russell Rogers (via facsimile) Mr. Dennis Yocum (via facsimile) Gary Lutzker, Esq. (via facsimile) Brian Grogan, Esq. (via facsimile)' TOTAL PAGE . 03 ** OCT-16-2000 07: 41 404 843 5845 P . 03 FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS SPECIAL AGENDA CITY COUNCIL OCTOBER 24, 2000 A special meeting of the Fayetteville City Council meeting will be held on Tuesday, October 24, 2000 at 4:30 p.m. in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. 1. TCA CABLE: A resolution authorizing the TCA Cable Partners to temporarily operate the Cable Communications System. 2, TRUSTEE/PAYING AGENT: A resolution to appoint Bank of Oklahoma as Trustee/Paying agent for the Variable Rate Demand Bonds. 113 WEST MOUNTAIN 72701 501521 -7700 FAX 501 575-8257 If o:t-I1-00. 11 : 54ae FrorWSS I BARNETT +4900 T-476 P. 02/04 F-AN J CM OF FAYETTEvcLLE, ARKANSAs RESOLUTION NO, AUTHORwsG TCA CABLE PARTNERS To TEMPORmULY OPEPATE THE CABLE COMMUNICATIONS SYSTEM WHEREAS, the City of Fayetteville, Arkansas ("City") passed and adopted an Ordinance (hereinafter referred to as the "Franchise") granting a non-exclusive franchise; and WHEREAS, the Franchise is currently held by TCA Cable Palmers C7CA^); and WHEREAS, pursuant to Section 47 U.S C. § 546(a) TCA provided notification to the City of TCA's intent to seek renewal of the Franchise under 47 U S C § 546(a-g); and WHEREAS, pursuant to Section 47 U.S.C. § 546(a) the City properly commenced franchise renewal proceedings; and WHEREAS, the City and TCA have agreed, pursuant to 47 U.S.C. § 546(h), to conduct franchise renewal negotiations informally in an attempt to reach a mutually acceptable franchise agreement; and WHEREAS, the City and TCA are interested in continuing informal discussions and negotiations regarding franchise renewal; and WHEREAS, both the City and TCA desire to expressly reserve all of their respective rights under state and federal law. NOW, THEREFORE, be it resolved by the City Council of the City of Fayetteville. Arkansas tbU- I . The City hereby authorizes TCA to operate the cable television system in the City of Fayetteville, in full compliance wah all of the terms and conditions of the Franchise, for a period commencing on November 1, 2000 and continuing through either the date on which TCA's Franchise is either renewed or until December 31, 2000 whichever shall fust occur. )6s1i7u OCT—Ii-2000 10 : 52 +4900 P• 02 Oct-11-00 11 : 64aa From-MOSS i BARNETT +4600 T-476. P. 03/04 F� 475 2. This Resolution shall become effective upon the occurrence of both of the following conditions. (1) The Resolution being passed and adopted by the City Council of the City of Fayetteville; and (2) TCA's acceptance of this Resolution and the Franchise for the term specified in paragraph (1) above, provided TCA accepts and agrees to each and every term of this Resolution and the Franchise within fourteen (14) days from the date this Resolution is passed and adopted. Adopted by the City Council of Fayetteville, Arkansas this day of 2000 CITY OF FAYETTEVELLE, ARKANSAS By R� ATTEST- CERTIFICATION I, City of the City of Fayetteville, Arkansas the custodian of its records, do hereby certify the above is a true and exact copy of a Resolution passed, adopted, and approved by the City Council of said City on 2000. Dated; . 2000 By: Its• 36fi22711 2 OCT-11-2000 10: 52 +4900 P103 Uct-i1 -00 11 : 54am From-190SS a MMETV +4900 T-4T5 P . u4iu4 r-414 ACCEPTANCE TCA Cable Partners, bereby acknowledges the City of Fayetteville, Arkansas Resolution No. ("Resolurion") and Ordinance No. attached hereto and referenced in the Resolution ("Franchise") and hereby accepts each and every term, provision and recital of The Resolution and agrees to be bound by the terms and provisions of the Franchise m accordance with the Resolution Dated 2000 TCA CABLE PARTNERS By: Its: SWORN TO BEFORE ME this day of 2000 NOTARY PUBLIC 3662S1ft 3 OCT-11-2000 1052 +4900 P , 04 MOSS & BARNETT A Professional Assocuuon BwnvT. Gxocav 4800 Wells Fargo Center 612.347.0340 90 South Seventh Street Minneapolis. MN 55402-4129 GroganB@moss-barnett.com �� �., Telephone 612.347.0300 Facsimile 612.339.6686 VIA FACSIMILE AND U.S. MAIL wxx'.muss-barnett.com October 11 , 2000CI ryA��A t SOOv� Fj04C Jerry Rose, Esq. City Attorney 113 West Mountain, Room 302 Fayetteville, AR 72701 Re: City of Fayetteville, Arkansas Dear Jerry: Pursuant to our telephone conversation you asked that I provide you with a brief overview of the work I have done on behalf of the City of Fayetteville, Arkansas ("City") regarding both the cable television and telecommunications matters. With respect to the cable television project, the work began with a meeting at the Fayetteville City Hall with representatives of Cox Communications ("Co)e"). In preparation for that meeting I reviewed the needs assessment information which the City had previously documented as well as the draft franchise agreement prepared by your office. Following the face-to-face meeting with Cox representatives I began a series of telephone conferences with Cox' s legal counsel, Mr. Gary Lutzger. Mr. Lutzger is a very competent attorney from Washington, D.C. and the negotiation process has required a line-by-line review of the City's draft document. As you and I discussed, I intentionally volunteered to take responsibility for all redrafts of the franchise document to ensure that the City retained control of authorship. I have prepared one revised draft and have since gone back through those revisions with Mr. Lutzger to ensure that he .and I are in agreement. This document will shortly be forwarded to your attention and to Cox representatives for review and consideration. I anticipate that only a handful of major issues will remain including the institutional network, PEG access funding and franchise term. With respect to the institutional network, this issue has presented the greatest challenge during the negotiation process. The City and Cox have exchanged information regarding the institutional network and it appears the costs associated with meeting the City' s needs may be extensive. We are continuing to explore a number of options with Cox to address the City' s needs although this process has proven to be quite time consuming and has resulted in numerous delays. I anticipate that resolution of the institutional network will be the most difficult term to address in completing the cable television renewal negotiations with Cox. With respect to the telecommunications matter, this process began with me first reviewing all of the existing licenses, agreements and related documentation which the City has in place with its MOSS & BARN ETT Jerry Rose, Esq. October 11 , 2000 Page 2 existing telecommunications providers. I have also reviewed questions and information with the Telecommunications Commission and have participated in telephone conferences with that group to address additional issues. Thereafter I worked closely with your office to develop a draft telecommunications ordinance which will assist the City in responding to the requests it has received from new telecommunications providers seeking access to the City's rights-of-way. After the telecommunications ordinance was prepared, we circulated it to all interested parties. I have worked with legal counsel from Adelphia Communications to address concerns which Adelphia had with respect to the ordinance. In particular we reviewed issues relating to the level of compensation Adelphia would be required to remit for access to the rights-of-way. As you may recall, I traveled to the City to be present for the City Council' s consideration of the telecommunications ordinance and at that time we learned of a number of concerns from Southwestern Bell. Unfortunately, these concerns had not been relayed to us earlier and therefore it was not possible for the council to take final action on the ordinance at that time. Since then I have worked with Southwestern Bell' s attorney, Mr. Ron Young, to address a number of his client' s concerns and anticipate that a revised draft of the ordinance will be forwarded to your office in the next several days. I recommend that this document again be circulated to all interested parties so that when it is placed before the City Council all of the providers will have had an opportunity to have input. A great deal of the work on both the cable television and telecommunications matters has now been accomplished and I am optimistic that both documents will soon be in a form to present to your council. As described above, the institutional network, however, remains somewhat of a wild card. Depending upon the desires of the City I anticipate at least one more visit to the City to address the cable television franchise before the council, should you so desire. It may be necessary for additional visits to conclude the cable television and telecommunications matters, but only to the extent you deem necessary and appropriate. I hope this letter helps to summarize the work which has been performed on behalf of the City with respect to the above-described matters. If you should have any questions or if I can provide any additional information or detail, please feel free to contact me. Very truly yours, /3/� / Brian T. Grogan BTG/tlh 369436/1 , T 16 2000 8 : 49 AM FR CCI Lt (iHL & NtUULHIVN704J n043 IV O1 On 1D DOJa .' • .+ � .., v ' t . Cot Communication, Inc. 1400 Uke f Wm Orivu, NE Adam, Georgie 70319 i 14041843-soon October 16, 2000 Cox COMMUNICATIONS VIA FACSINIILE An UL. MAIL Jerry E. Rose, Esq. City Attorney City of Fayetteville 113 West Mountain Fayetteville, Arkansas 72701 Re: Cox Cable Television Franchise Dear Jerry: As you know, Gary Lutzker, on Cox's behalf, and Brian Grogan, on the City's behalf; have been diligently negotiating the renewal of Cox's cable television franchise since we all convened in Fayetteville earlier this year. I understand from Gary that they have made significant progress on the renewal but that a number of issues remain outstanding. Included among the open issues are the terms and conditions under which institutional network services would be provided to the City. We are currently preparing cost estimates based on We information we recently have received from the City regarding the level of services desired and the locations to which the services would be provided, and we hope to forward this information to you and Brian within the next several weeks. I also believe that Brian is in the process of preparing a revised draft of the franchise agreement to reflect the progress he and Gary have made, which he expects to distribute sometime this week. We are pleased with the amount of progress that has been made to date, but we also are concerned that the parties will not have resolved all of the open issues, in particular those surrounding the institutional network services, prior to the expiration of our current franchise on November 1, 2000. Accordingly, we are respectfully requesting that the City grant a short-tern extension of the franchise through March 31, 2001 in order to permit Cox :utd the City to complete their negotiations. Although we hope to complete the negotiations in advance of that date and will work diligently to accomplish that goal, we believe that extending it through March would avoid the need to request yet another extension from the City Council in the event the negotiations take longer than expected OCT-16-2000 07: 41 404 643 5845 P• 02 )CT 16 2000 9 : 49 RM FR CCI LEGRL &REGULRTORY843 5845 TO 51501be -adJln r . wowao Jerry E. Rose, Esq, October 16, 2000 Page 2 On a related note, the City has asked Cox to consider upgrading its cable television system to 862 MHz, rather than to 750 MHz as previously planned by Cox. As we indicated earlier, Cox was willing to accede to the City's request, in return for the City's commitment to grant a 15-year franchise. You responded that you were not in a position to make that commitment, as it is a decision that must be made by the City Council. Even though we were disappointed in that response, we certainly appreciated and understood it. As a result, we proceeded with our upgrade to the extent possible, but we have now reached a point in our construction activities that we must either suspend the upgrade pending final determination by the Council or move forward with either the 862 MHz or 750 MHz platform. We feel strongly that it is in both the City's and Cox's best interests to proceed with the upgrade without delay, so we have rejected the former option. We have elected instead to press ahead with the City's requested 862 MHz upgrade. Cox understands that we have no guarantee that the City will reciprocate with a 15-year franchise term, but we are optimistic that the goodwill we have shown by this decision, and the benefit that will be reaped by the City as a result, will be duly noted by the Council. We also hope that you will encourage the Council, if you feel it appropriate, to grant our request for the 15- yea term. As a result of our upgrade decision. Cox hopes to begin turning on the first of the newly upgraded fiber nodes by the end of this year. We are excited about that prospect and trust that the City will be as well. We look forward to receiving Brian's forthcoming draft of the franchise and to continued progress on the negotiations. In the meantime, we would appreciate hearing from you or Brian in response to our request for the extension. Please feel free to contact me directly at 404.269.6780, or Gary Lutzker at 202.776,21t0077, very truly YOU7? Deborah L. Ret'chlb Director of Government Affairs cc: Mr. Russell Rogers (via facsimile) Mr. Dennis Yocum (via faewmile) Gary Lutzker, Esq. (via facsimile) Brian Grogan, Esq. (via facsimile) ** TOTAL PRGE . 03 +* OCT-16-2000 0741 404 643 5645 P . 03 Trustee/Paying Agent . ` STAFF REVIEW FORM 2• Page 1 AGENDA REQUEST X CONTRACT REVIEW GRANT REVIEW For the Fayetteville City Council meeting of Tuesday Oct . 2 , 2000 FROM : Peggy Vice Purchasing Administrative Services Name Division Department ACTION REQUIRED : Approval of a resolution to appoint Bank of Oklahoma as Trustee / Paying agent for the Variable Rate Demand Bonds , COST TO CITY : $4 , soo . bo C "uo.w-Y) Cost of this Request Category/Project Budget Category/Project Name 5m -•68oa'r502: 60 _ o Account Number Funds Used To Date Program Name ' 986(yi — den 50, 000 Wd�T ;i SF1J�a Project Number Remaining Balance Fund BUDGET VIEW : Budgeted Item Budget Adjustment Attached Budaiel FXhager Administrative Services Director CONTRACT/GRANT/LEASE REVIEW : GRANTING AGENCY : � L „ rSIrn ,:0L DO Acco tin Man er Date Interna Auditor 4a eLq1 City Attor Date ADA Coordinator Date 1AA ib- 19 -00 Purchasing Officer Date STAFF RECOMMENDATION : Approval of Bank of Oklahoma as Trustee / Paying Agent for the Variable Rate Demand Bonds , Division Head Date Cross Reference New Item : Yes No Departme Director Date _1 / �✓ Prev Ord/Res # : Admin i ti e e ' ces Director �,,DD to / 'f/ w Orig Contract Date : Mayor F Date Trustee/Paying Agent 2. Page 2 '~ 1u .t& IL Tj IL TEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE TO: Mayor Fred Hanna and City Council FROM: John Maguire, Administrative Services Director DATE: October 18, 2000 SUBJECT: Variable Rate Demand Bond Program As part of the Variable Rate Demand Bond Program an independent trustee and paying agent must be appointed. The City advertised for proposals from qualified financial institutions for trustee and paying agent services. A professional selection committee met and reviewed the submitted proposals. The committee recommends Bank of Oklahoma as the trustee and paying agent for the $ 10,000,000 City of Fayetteville, Water and Sewer System Revenue Bonds, Series 2000. The annual cost for the trustee and paying agent services are estimated to be $4,500 and will be paid from Water & Sewer Fund. Trustee/Paying Agent 2. Page 3 CITY OF FAYETTEVILLE, ARKANSAS REQUEST FOR PROPOSALS 00-18 TRUSTEE AND PAYING AGENT October 9, 2000 The City of Fayetteville (the "City") is seeking the services of a qualified financial institution to serve as an independent trustee and paying agent ("Trustee") in connection with the City's proposed $ 10,000,000 weekly variable rate demand notes (The Bonds). You are invited to submit a proposal expressing interest in providing such services to the City in accordance with the terms.and conditions outlined herein. Involved Parties Stephens Inc. of Fayetteville will serve as financial advisor, and Kutak Rock Law firm of Little Rock will serve as legal advisor in connection with the Bonds. Bank of America and Bank of America Securities have been contracted to provide variable rate bond dealer services. The City expects the Bonds to have a relatively short maturity of 2-5 years. A rating will be sought from either Standard & Poors Corporation or Moody's Investor Services. The City anticipates issuing a total of $ 10,000,000 in Bonds. The Trustee has a combined capital and surplus of at least $50,000,000. Scope of Services The following is a general list of services to be provided by the Trustee. It is not intended to be all inclusive as unanticipated situations may arise requiring additional assistance. The successful respondent will be expected to work with the staff of the City, as well as all professional firms involved, towards successful issuance of the Bonds at a minimum net interest cost. 1 . Cooperate with the staffs of the. City and other professional funis to complete preparation and documentation for the issuance of the Bonds in a timely manner. 2. To complete and authenticate the Bonds prior to closing. 3. To execute all documents necessary for the successful closing of the bond issue. 4. To provide annual administrative services in connection with the Bonds including, but not limited to, disbursement of interest payments to the bondholders; disbursement of principal payments to bondholders; registration, transfer and reissuance of bonds as requested by bondholders; transmittal of annual, special and final redemption notices; and provide monthly reports to the City showing assets, receipts, and disbursements from the bond funds. 5 . Prepare and provide reports required by local, state, and federal agencies, including the Internal Revenue Service, as may be necessary or required by relevant laws.