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Home My WebLink About2003-04-01 - Agendas - Final FINAL AGENDA FOR CITY COUNCIL MEETING APRIL 1 , 2003 A meeting of the Fayetteville City Council will be held on April 1 , 2003 at 6:00 p.m. in Room 219 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. A. CONSENT: NOMINATING COMMITTEE REPORT APPROVAL OF NANCY L. BOLIN TO THE FAYETTEVILLE HOUSING AUTHORITY BOARD APPROVAL OF NEAL CRAWFORD TO THE ADVERTISING AND PROMOTION COMMISSION Pt 1 . APPROVAL OF THE MINUTES: Approval of the March 18, 2003 meeting 11I minutes. (J� ' 2. MUSEUM OF NORTHWEST ARKANSAS: A resolution to support the application of The Museum of Northwest Arkansas for formal affiliation with The Smithsonian Institute. 3, KUTAK ROCK, LLP AGREEMENT: A resolution to approve a bond counsel agreement with Kutak Rock, LLP. 4. STEPHEN'S, INC: A resolution to approve a bond underwriting agreement with Stephen's, Inc. for bond underwriting services of the Town Center bond issue refinancing if advisable. 5. WITTENBERG, DELONY & DAVIDSON CONTRACT: A resolution to approve an architect contract with Wittenberg, Delony & Davidson in a not to exceed amount of $83,700.00 to design, complete the large scale development process and supervise construction of Fire Station Number 7 (West Side). 0 0 B. OLD BUSINESS: 1 . BUDGET ROLL-FORWARD: A resolution to approve the budget adjustment for various capital projects to be re-budgeted from the 2002 budget to the 2003 budget. This part of the budget was not considered at the March 4, 2003 City Council meeting. 2. RZN 03-6.00 (Brophy): An ordinance rezoning that property described in rezoning petition RZN 03-6.00: rezoning (Brophy, PP 291 ) as submitted by Bill Rudasill on behalf of Ralph Brophy for a parcel containing approximately 1 .65 acres located north of Township and cast of Highway 71 B, Fayetteville, Arkansas from C-2, Thoroughfare Commercial to R-3, High Density Residential. The ordinance was left on the second reading at the March 18, 2003 City Council meeting. C. NEW BUSINESS: 1 . MOUNT SEQUOYAH: A resolution to approve the offer and acceptance contract between the City of Fayetteville and Mount Sequoyah Assembly, Inc. for the purchase of about 67 acres of land for $ 1 ,300,000.00 and a budget adjustment in the amount of $600,000.00 as first years payment. 2. JED DEVELOPMENT, INC.: An ordinance waiving the requirements of formal competitive bidding and authorizing the City to pay JED Development, Inc. up to $55,095.43 as the City's portion of a cost share for the construction of about 300 feet of a 28 foot wide street with storm drainage and sidewalks. 3. VAC 03-3.00 (Mee): An ordinance approving VAC 03-3 .00 to vacate and abandon a portion of the most easterly 8' of a 20' utility easement located at 3305 N. Southridge Drive as described on the attached map and legal description. 4. NEW WORLD SYSTEMS: An ordinance to waive the competitive bidding requirements to enable the City to purchase computer software from New World Systems. 5. CONSTRUCTION MATERIAL BID WAIVER: An ordinance to approve a bid waiver for the purchase of asphalt and aggregate materials and to approve a bulk purchase contract with McClinton Anchor. 6, ORGANIZATIONAL CHART: An ordinance amending §33 .001 City Organisational Chart. D. INFORMATIONAL: 1 . COUNCIL TOUR: March 31 , 2003 - Senior Center and RZN 03-6.00 (Brophy). Meeting of April 1 , 2003 Subject: Motion By: Seconded: Motion To: Jordan Reynolds Thiel Ll Cook Marr Rhoads Davis Lucas Mayor Coody i Subject: 0 m, i n akt Motion By: Seconded: Motion To: Jordan Reynolds Thiel Cook Marr Rhoads Davis Lucas Mayor Coody Meeting of April 1, 2003 Subject: Cp,� v) ' 4�k t,#,j Iwo td �(�ld p 0 / Motion By: �— Seconded: Motion To: Jordan Reynolds Thiel Cook y Marr � Rhoads Davis Lucas Mayor Coody Subject: Motion By: Seconded: Motion To: Jordan Reynolds Thiel , d Cook Marr �a Rhoads Davis Lucas Mayor Coody Meeting of April 1, 2003 Mai U Subject: R Z N f) 3 - L , 00 5-v fi >/Lly Motion By: , dMotiSeconded: (, der- Motion on To: a-o K•1 Jordan � Reynolds v Thiel Cook Marr Rhoads Davis Lucas Mayor Coody Subject: Motion By: /x aM (� Seconded: TLLI !yt , f�Pi yµ ao, ' Motion To: Q Jordan Reynolds JAJaA. Thiel Cook Marr Rhoads Davis Lucas !/ Mayor Coody Meeting of April 1 , 2003 Subject: f, D Motion By: LktiJ T�1 eQ Seconded: �i SSS Motion To: AAWNg Jordan ✓ ✓ A�tq Aw N„ Reynolds ✓ Thiel ✓ ✓ ,/ Cook ✓ / Marr ✓ ,/ Rhoads ✓ ✓ � Davis Lucas i/ ✓ �/ Mayor Coody Subject: V A C 033 - D o C Ntec ) Motion By: fi _ -- Seconded: d Motion To: � to, 4 7�`"^ `� n Jordan ✓ ✓ v rlx�) Reynolds Thiel ✓ ✓ Cook ✓ ✓ ,/ Marr Rhoads ✓ ✓ ✓ Davis Lucas Mayor Coody Meeting of April 1 , 2003 Subject: Motion By: Seconded: Motion To: � _ Q TL cf0 l Jordan ✓ ✓ �l I V Reynolds Thiel / �i Cook ✓ ✓ ✓ Marr / ✓ ✓ (� PP", Rhoads ✓ }� Davis �/ ✓ 1 Lucas 1� Mayor Coody Subject: MCl i o1 Motion By: sn d and 7 Seconded: Motion To: e �� d tt Q diI Jordan / ✓ Reynolds i MA)'' Thiel ✓ / Cook / ✓ ,/ 9 Marr P/ Rhoads Davis / ✓ Lucas Mayor Coody • 7- ' is� Meeting of April 1 , 2003 p v Subject: O/� (jn I 7J Motion By: Seconded: cw Motion To: LCCOnal a � l�M.ri1 Jordan ✓ ✓ Reynolds / ✓ r/ Thiel Cook Marr ,, ✓ �/ Rhoads ✓ Davis ✓ ✓ Lucas ✓ Mayor Coody Subject: Motion By: Seconded: Motion To: Jordan Reynolds Thiel Cook Marr Rhoads Davis Lucas r i Mayor Coody i � CITY COUNCIL MEETING REGISTRATION DATE SPEAKER'S NAME PHONE NO. AGENDA ITEM NO. (Pleaso print clea SPEAKING ON OS f h Nominating Committee Report Meeting: Wednesday, March 26, 2003 Room 111 , City hall 4-7 :30 pm Members Present — Kyle Cook, Shirley Lucas, Don Marr, Robert Rhoads Nominating Committee was called to order at 4 :00 pm. We reviewed the interview schedule for the afternoon & evening. We then reviewed potential questions that were submitted by Staff for the Planning Commission Interviews, and Library Board Interviews. A review of any recommendations, attendance issues (none presented) submitted by committee chairs or assigned staff were reviewed and then interview of applicants began. After interviewing all applicants the following slate of appointees are submitted for the entire council. All nominations being submitted by the nominating committee are being presented with the committees unanimous recommendation. Advertising & Promotions Commission — Nominated by the A& P commission and not handled through the City Council Nominating Committee - Animal Concerns Committee — No nominations were appointed as the Animal Concerns Committee was discontinued at the 3/ 18/03 City Council Meeting Board of Adjustments/Board of Sign Appeals — The committee has asked the City Clerk 's office to contact Robert (Bob) Kohler to see if he is interested in serving on the Board of Adjustments since he the committee felt that he was a strong applicant that had applied for the Planning Commission and was not appointed to that Commission. • Robert (Bob) Kohler, as One Public-at-Large term ending 3/31/08 Construction Board of Adjustment and Appeals — • James Key nominated as one full Member term ending 3/31/08 Environmental Concerns Committee - • Terry Eas7in as One Citizen-At-Large term ending 12/31/04 • Stephan Pollard as One Citizen-At-Large term ending 6/30/04 Planning Commission — The nominating committee felt that it was important to try and maintain the current balance of business interest, neighborhood interest, commercial design expertise, etc. After much discussion we believe that this recommendation (unanimous) is the best fit to maintain balance perspectives on our Planning Commission. • Nancy Allen — reappointment to 2nd term, set to expire 3/31/06 • Jill Anthes — appointment P term, set to expire 3/31/06 • Christian Vaught — appointment 1" term, set to expire 3/31/06 Public Library Board of Trustees — The nominating committee received recommendations from the current Library Director and Board requesting that the Nominating committee strongly consider re-appointment of existing Library Board members because of their depth of knowledge regarding the current library activities, and the desire to have continuity from planning through construction completion and start-up of the new facility. They ask us to strongly consider that trustees have made and are making decisions based on cumulative information. Therefore the committee has chosen to respect that request and re-appoint each of the Library Board Trustee Applicants for additional terms. We do believe that several applicants that applied for this appointment are extremely qualified, and should be looked at in the future for appointments to this board, and possibly their foundation board. These names will be forward on to Louise Schaper the Library Director and Louis Gottsponer the Board President. • Michael H. Thomas — reappointment to term, set to erpire 3/.11/08 • Beverly Bassett Schaffer — reappointment to term, set to erpire 3/31/08 • Lorraine Brewer — reappointment to term, set to erpire 3/31/06 • Maurice E Roberts — reappointment to tern, set to erpire 3/31/07 Telecommunication Board — The nominating committee felt that it was important to have individuals that bring strong understanding of the PEG center goals, and specifically that we look to bring in individuals that would assist in added skills/experience relative to the Educational Channel offerings and capabilities, as we believe that this might be an area of significant review by the telecommunications board in the future. However, the committee also believed that it is important in the future appointments to continue to seek out individuals that would serve in this area that have not served in the past, so to bring new ideas and new solutions to this area in the future. The City Clerks office will be notified to follow- up with an additional applicant not appointed at this time, that had applied who we believed meets this criteria and should be considered strongly in the future. • Stephan Smith — appointment to remaining unerpired term, set to erpire 6/30/04 • David Young — appointment to remaining unerpired tern, set to erpire 6/30/03 Youth Activities Committee — The Nominating committee would like to sec input from Alderman Jordan on the best way to solicit applicants for this committee, if this will remain a standing committee, since no applications were submitted for this committee. A determination needs to be made regarding the continued need to advertise and recruit for this committee. No appointments were made because no applicants were received for any of the open positions. • 00 • � FAYETTEVILLE HOUSING AUTHORIT1ECEMM #1 NORM SCHOO . AVE. FAWMVRIE, AR 72701-5911 FEB 0 7 2003 111: 011521-3150 FAX (501) 44UM CITY OF E 14 MAYOR'S OFFICE February 6 , 2003 Honorable Dan Coody City of Fayetteville 113 West Mountain Street Fayetteville , AR 72701 Dear Mayor Coody , The Fayetteville Housing Authority Board of Commissioners met in meeting on January 29 , 2003 and elected Nancy L . Bolin to the board to replace Christine Childers whose term expired 12 / 28 / 02 and did not wish to serve again . Nancy Bolin ' s five year term will expire AV 28 / 07 A copy of her application to Fayetteville Housing Board of Commissioners is enclosed . We would appreciate the City Board ' s confirmation of this election at their next regular meeting . Sin rely yours tomo Wilson Executive Director Encl . cc : Garton . 0 • • • Attachment - Nancy Bolin I am interested in serving on the Housing Commission for numerous reasons. Housing has always been a primary interest of mine. I am a homeowner and own rental property. In previous years, I was a low-income, single-parent, which I feel gives me a personal insight into the needs of this population. In May of 2000, I received a Masters in Social Work, with emphasis in non-profit administration. I have been employed with EOA of Washington County, as Operations Manager for the past three years. In my position with EOA, I am responsible for the administration of a number of State and Federal Grants. I am also the President of the Board and founding member of Sage House, Inc., an organization in the process developing a transitional housing facility for single-parent families. Sondra Smith - RE: A & P Commission appointment Page 1 • • 0 • From: Marilyn Johnson <mjohnson@twncenter.00m> To: Sondra Smith <ssmith®ci.fayetteville.ar.us> Date: Tue, Mar 11 , 2003 11 :22 AM Subject: RE: A & P Commission appointment Hi Sondra The Advertising and Promotion Commission recommend for retification of the City Council Neal Crawford to fill the position vacated by Jor Fennel. If you need a copy of his application and resume, let me know. I have it Marilyn Johnson for appom to City Boards, Commissions, ano�ittees oo lame /fit t- v/ W ki -D/LD 1 Soc. Sec. # Z13 .? 113102957' If marded, please give / ' JJ spouse's first name 6l U id. 41ALAIL) f Length of residency in Fayetteville 141 itS :Resident Street Address r/� 1/ETTr V/ �Lc ✓*z �a 7� How did you find out about opening(s)? ;ity State Zip Code B / l-c � • + SEY /y /o /t/ G/Aci / uT rAV&Myia&,t' At 7170 ► vlailing Address Zip Code J2�E )=j VA&L References: felephoneNumber: Home: � (&lq - 64 / 6 Name x/C/4Au /r// naJ Business: Sal - b19 '1 Address „10 5 7 (✓Li+/C 4(c F, ffr y« M 7a7u1 )ccupation/Employer Name / Phone '1 &1v2-o2 967 ,� t' X&WAL )-0S4ES /A/C Name :6 Ft}�IEZ :hoice of Committee Address /4 Sy ,t1. 4in1tstY F,#K&r)c3ltaE M 71701 +-P Phone )fftge Use�'Only Tegmina a A r � ` r�ml Expire Rep What are your qualifications for serving on this committee, including education and expertise in the subject matter? SCt 117 Af14 inc7J'r Why would you like to be considered for appointment to this committee? lease fill out application COMPLETELY and return to: Heather Woodruff City Clerk's Office 113 W. Mountain Street, Fayetteville 72701 you have any questions call 575-8323 • • • Joe Fennel • • 324 W. Dickson St. • Fayetteville, AR 72701 • 501 .521 .0337 www.bordinos.com • wvvw.olefb6oses.com 01/07/03 1 . What are your qualifications for serving on this committee, including education and expertise in the subject matter? I have worked in the restaurant industry for twenty years, fourteen of which have been in Fayetteville at Jose's on Dickson St. I am currently the General Manager of Jose's and being located on Dickson St. I believe gives me a good perspective on how advertising and promotion of the City of Fayetteville can impact the community as a whole. Furthermore, I studied accounting and general business practices and how to apply cost vs. impact on business matters. I have also been involved in the planning of Mardi Gras on Dickson and the Bikes, Blues, and BBQ festival for the past few years. I feel that this combined knowledge would be an asset to the commission through my involvement in the business community of Fayetteville. 2. Why would you hle to be considered for appointment to this committee? I believe that Fayetteville has a lot to offer both the local and traveling consumer, and would like to take an active part in the marketing of my community. I feel that my experiences give me a unique perspective of our town and would like to be able to submit feedback and provide direction on the growth of Fayetteville as a community and a business. People now have many more options in Northwest Arkansas than they have ever had before and through the promotion of its natural assets and the several uniquely Fayetteville festivals, we should be able to attract more local and traveling consumers to our town, and I believe this can be done in such a way as to not compromise the integrity of the citizens of Fayetteville. view ROME dZ os 134 r n FaYETT VU8 MMMOH ALP � 90 RM•• AN AGENDA REQUEST FORM 4 Museum of NW Ark A. 2. Page 1 FOR: COUNCIL MEETING OF April 1, 2003 FROM: ALDERMAN KYLE COOK ORDINANCE OR RESOLUTION TITLE AND SUBJECT: A Resolution To Support The Application Of The Museum Of Northwest Arkansas For Formal Affiliation With The Smithsonian Institute APPROVED FOR AGENDA: 06 AA� ZL2 �g Berman Dat City Attorney (as to form) Date Museum of NW Ark • • • • A. 2. Page 2 RESOLUTION NO. A RESOLUTION TO SUPPORT THE APPLICATION OF THE MUSEUM OF NORTHWEST ARKANSAS FOR FORMAL AFFILIATION WITH THE SMITHSONIAN INSTITUTE WHEREAS, Fayetteville civic leaders are working on a plan to enhance the development of a cultural district near the Walton Arts Center in Fayetteville; and WHEREAS, a cornerstone of this district is planned to be a new 40,000 square foot facility which would include the Museum of Northwest Arkansas; and WHEREAS, the citizens of Fayetteville and the rest of Northwest Arkansas would greatly benefit from the creation of this museum facility near the Walton Arts Center; and WHEREAS, the City of Fayetteville, Arkansas strongly supports the creation of this facility and encourages the Smithsonian Institute to allow the museum of Northwest Arkansas to join the Smithsonian Institute Affiliates program. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1 . That the City Council of the City of Fayetteville, Arkansas hereby expresses its support for the concept of the Museum of Northwest Arkansas as an enhancement of the Fayetteville cultural district including the Walton Arts Center and requests that the Smithsonian Institute favorably consider inclusion of the Museum of Northwest Arkansas in its Smithsonian Institute Affiliates program. PASSED and APPROVED this ls` day of April, 2003 . APPROVED: By: DAN COODY, Mayor ATTEST: By: Sondra Smith, City Clerk • • 00 A 2 Page 3 W Ark (City Of Fayetteville / Office of the Mayor Stationery?) March 15, 2003 Mr. Aaron Glavas, Affiliates Director THE SMITHSONIAN INSTITUTE Arts & Industry Building, Suite 1360 900 Jefferson Drive, S.W. Washington, D.C. 20013-7012 Dear Mr. Glavas: It is our understanding that discussions have occurred between the Smithsonian Institute Affiliates program with one of our local businessmen (Eric Parkinson of Hannover House Communications), concerning a prospective Museum affiliation with your organization. Mr. Parkinson is worldng with various civic leaders and private developers on an ambitious plan within the Downtown "cultural' district of Fayetteville. The cornerstone of these proposed developments is a major new, 40,000 sq. foot facility that Mr. Parkinson and his financial partners at Pioneer Group plan to construct This new facility is intended to house a world-class, not-for-profit organization presently calling itself the "Museum of N.W. Arkansas." Speaking for myself as Mayor, along with our City Council, we would like to express our support for the plans Mr. Parkinson is pursuing for this Museum construction. We would also like to express to you our enthusiasm and support for the planned affiliation of this new "Museum of N.W. Arkansas" with the Smithsonian Institute Affiliates program. Fayetteville and Northwest Arkansas are among the fastest growing metropolitan markets in the United States. We have needed a major Museum for many years and we support the development plans for such a facility that Parkinson and Pioneer Group are pursuing. It is our belief that a formal affiliation with the Smithsonian Institute will be well received and supported by our citizens and businesses. Please do not hesitate to contact me if you need any additional information on Fayetteville or the plans being pursued for the new Museum project Very Truly Yours, (Dan Coody, Mayor) — and / or City Council? Museum of NW Ark . • A. 2. Page 4 STAFF REVIEW FORM XX AGENDA REQUEST • • Kutak Rock, LLP CONTRACT REVIEW A. 3. Page 1 GRANT REVIEW For the Fayetteville City Council Meeting of : Apri11 , 2003 FRONt Stephen Davis Finance & Internal Services Finance & Internal Services Name Division Department ACTION RBQIIIRBD : Approve bond counsel agreement with Gordon Wilboum of Kutak Rock, LLP for the 2003 Debt Management Program. COST TO CITY : No cost with the item $ Cost of this request Program Category / Project Name Account Number Funds Used to Date Program / Project Category Name Project Number Remaining Balance Fund Name BUDGET REVINNt Budgeted Item Budget Adjustment Attached Budget Manager Date CONTRACT/GRAN LEASE RBVIENt ly i g Man r Date Internal , d_it-or Date -----� A 3 I b3 torney Date Purchasing Manager Date STAFF RECOMMENDATION : Staff recommends approval of bond counsel agreement with Gordon Wilboum of Kutak Rode, LLP. Croce Reference Division Head Date New Item : Yes No Department Director Date Previous Ord/Ree# : _ Q I., � 3- f2Orig . Contract Date Finance b Internal Services Dir . Date Orig . Contract Number Chief ministrative Officer Date Ma or Date K:\Steve Davis\Debt ' a ting\Staff_Review Bond Counsel Services Kutak Rock, LLP �taff Review Form - Page 2 • A. 3. Page 2 Description Meeting Date Comments : Reference Comments : Budget Manager Accounting Manager City Attorney Purchasing Manager ADA Coordinator Internal Auditor Grants Coordinator KASteve Davis\Debt Financing\Staff_Review_Bond Counsel Services Kut FAYETTOILLE • A. agek, LLP A. 3. Page 3 THE CRY OF RAYETrEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE TO: FayettevilleCi Council THROUGH : Dan Coody Hugh Eamest, Chief A inis ve O cer FROM: Stephen Davis, Finance & Inte S ices Director DATE: March 12, 2003 SUBJECT: Debt Management Program: Bond Counsel Services Background City Council approved a Debt Management Policy (Policy) on November 5, 2002. The Debt Management Committee met after approval of the Policy and determined the City needed to seek statement of qualifications for bond counsel services and to seek requests for proposals for bond underwriter services and for leasing services. A professional selection committee was formed to: 1 ) provide oversight of the drafting of the request for qualifications for bond counsel services and the request for proposals for the bond underwriter services and leasing services; 2) review the responses to the request for qualification/proposals; conduct interviews of the selected respondents; and, 3) recommend service providers for leasing services and bond underwriter services. Current Status In mid-January 2003, the Professional Selection Committee (Committee) met, reviewed and approved the request for qualifications for bond counsel services and request for proposals for bond underwriter and leasing services. The Committee reviewed the responses, developed a short list to interview for each service to be provided and selected the firm or firms to provide the service. The firms selected to provide services under this set of request for qualifications and request for proposals are as follows: Bond Counsel Services - Gordon Wilbourn ofKutak Rock LLP; Leasing Services - Banc of America Leasing & Capital, LLC, and, Bond Underwriter Services — (two firms were selected to provide bond underwriter services): Stephens, Inc and Crews & Associates. Staff submitted, for City Council approval, a resolution of intent to reimburse for Council action at the March 18, 2003 City Council meeting. Staff is in the process of negotiating a master lease or leases with Banc of America Leasing & Capital, LLC. The master lease agreements are to provide the funding mechanism to leverage current and future City funds in acquiring solid waste residential collection vehicles and fire apparatus vehicles. KASteve Davis\Debt Financing\Bond Counsel Services_ 2003.doc Katak Rock, LLP • . A. 3. Page 4 Staff has also negotiated a bond counsel services agreement with Kutak Rock, LLP. The bond counsel fees to be paid under this agreement will either be deducted from the bond issue proceeds or will be incorporated into the total moneys included in the individual lease payment agreement schedules. Recommendation Staff recommends City Council approval of the bond counsel services agreement with Gordon Wilboum of Kutak Rock, LLP. KASteve Davis\Debt Financing\Bond Counsel Services_ 2003.doc • • Kutak Rock, LLP A. 3. Page 5 KUTAK ROCK LLP ATLANTA CHICAGO SUITE 1100 DENVER 425 WEST CAPITOL AVENUE DEE MOINES FAYETTEVILLE NORTHWEST ARKANSAS OFFICE LITTLE ROCK. ARKANSAS 72201 -9409 KANSAS CITY LINCOLN THE THREE SISTERS BUILDING 501 -975-9000 ACH Eaw WEST DICKSON STREET OKLAHOMA T DCITY FACSIMILE 601 -576- 001 oKLwworw errr MYETTIVILl6. ARKANSAS 1E1`01 -EEEI 470.972.4200 www.kutskrock.com orwllw KwSADENA RICHMOND T March 11 2003 WASHINGTON, WASHIwASHINDoN Honorable Dan Coody City of Fayetteville, Arkansas 113 W. Mountain Fayetteville, AR 72701 Re: City of Fayetteville, Arkansas — 2003 Bond Counsel Services Dear Mayor Coody: The purpose of this engagement letter is to set forth certain matters concerning the services we would expect to perform as counsel to the City of Fayetteville, Arkansas (the "City") in connection with its financings and refinancings of various capital improvements and equipment during the calendar year 2003 (the "2003 Projects"). Specifically excluded from the provisions of this letter are financings relating to the acquisition, construction and equipping of the City' s proposed wastewater treatment facility, which financings are the subject of a separate engagement letter between Kutak Rock LLP and the City dated June 5, 2000. We understand that the 2003 Projects may be financed utilizing various structures and revenue sources, including, but not limited to, general obligation bonds and notes, special revenue bonds and notes, sales and use tax bonds and notes, and lease/purchase arrangements. SCOPE OF ENGAGEMENT (a) Where the issuance of the City's bonds or notes ("Bonds") occurs in connection with this engagement, we would serve as bond counsel ("Bond Counsel") to the City and would expect to perform the following duties for each such issuance: ( 1 ) Subject to the completion of proceedings to our satisfaction, render our legal opinion (the "Bond Opinion") regarding the validity and binding effect of the Bonds, the source of payment and security for the Bonds, and the excludability of interest on the Bonds from gross income for federal and Arkansas income tax purposes; (2) Prepare and review , resolutions, ordinances, documents and certificates necessary or appropriate to the authorization, issuance and delivery of the Bonds, coordinate the authorization and execution of such resolutions, ordinances, documents and certificates, and review enabling legislation; 1045761.01 Kutak Rock, LLP • . A. 3, Page 6 KUTAK HOCK LL. P Honorable Dan Coody March 11 , 2003 Page 2 (3) Assist the City and any underwriter of the Bonds in seeking from other governmental authorities such approvals, permissions and exemptions as we determine are necessary or appropriate in connection with the authorization, issuance and delivery of the Bonds; (4) Review legal issues relating to the structure of the Bond issue; (5) Review certified proceedings; (6) Undertake such additional duties as are necessary to render our Bond Opinion; (7) Assist the City in presenting information to bond rating organizations and providers of credit enhancement relating to legal issues affecting the issuance of the Bonds; and (8) Draft the continuing disclosure undertaking of the City. In addition to the customary duties of Bond Counsel set forth above, we understand that we may additionally be asked to (i) draft the Bond Purchase Agreement between the City and the underwriter(s) with respect to the Bonds and (ii) assist the City in preparing the official statement (the "Official Statement") with respect to the Bonds, and, subject to the satisfactory completion of our review, provide to the City written advice that, in the course of our participation, no information has come to our attention which leads us to believe that the Official Statement, as of its date (except for the financial statements, other statistical data, feasibility reports and statements of trends and forecasts, and information concerning any credit enhancer and The Depository Trust Company, contained in the Official Statement and its appendices, as to which we will express no belief), contains any untrue statement of material fact or omits to state any material fact necessary to make the statements in the Official Statement, in light of the circumstances under which they were, not misleading. Although it is permissible for Bond Counsel to undertake the activities described in this paragraph, they are typically performed by counsel to the underwriter. Each Bond Opinion will be addressed to the City and will be delivered by us on the date that an issue of Bonds is exchanged for the purchase price thereof (the "Closing"). Each Bond Opinion will be based on facts and law existing as of its date. In rendering our Bond Opinion, we will rely upon the certified proceedings and other certifications of public officials and other persons furnished to us without undertaking to verify the same by independent investigation, and we will assume continuing compliance by the City with applicable laws relating to the Bonds. During the course of this engagement, we will rely on the City to provide us with complete and timely information on all developments pertaining to any aspect of each issue of Bonds and their security. 1045794.01 • • Kutak Rock, LLP KUTAK ROCK LLP A. 3. Page Honorable Dan Coody March 11 , 2003 Page 3 (b) Where a 2003 Project is to be financed through a lease/purchase agreement ("Lease/Purchase Agreement"), we would serve as Bond Counsel to the City in connection with each such Lease/Purchase Agreement and would expect to perform the same or similar duties as those set forth above in connection with the issuance of Bonds, modified as necessary to meet the requirements of the particular leasing program; and (c) Where a 2003 Project is to be financed with the proceeds of any sales and use tax, whether or not in connection with the issuance of Bonds or a Lease/Purchase Agreement, we would serve as special counsel to the City with respect to election matters, and would expect to prepare or assist in the preparation of all resolutions, ordinances, ballots and other materials for such election and, upon request, to attend all public meetings relating to such election. Our duties in this engagement are limited to those expressly set forth above. Among other things, our duties will not include: (1) Preparing requests for tax rulings from the Internal Revenue Service, or no action letters from the Securities and Exchange Commission; (Il) Drafting state constitutional or legislative amendments; (IR) Pursuing test cases or other litigation; (IV) Making any investigation or expressing any view as to the creditworthiness of the City or the Bonds; (V) Representing the City in Internal Revenue Service examinations or inquiries, or Securities and Exchange Commission investigations; or (VI) Except as set forth in (c) above, addressing any other matter not specifically set forth above that is not required to render our Bond Opinion. ATTORNEY-CLIENT RELATIONSHIP Upon execution of this engagement letter, the City will be our client and an attorney- client relationship will exist between us. We assume that all other parties in connection with the issuance of any Bonds or the entry into any Lease/Purchase Agreements will understand that in those transactions we represent only the City, we are not counsel to any other party, and we are not acting as an intermediary among the parties. Our services as counsel to the City are limited to those contracted for herein, and the City's execution of this engagement letter will constitute an acknowledgment of those limitations. Our representation of the City will not affect, however, our responsibility to render objective Bond Opinions where required in connection with this engagement. 10-45784.01 Kutak Rock, LLP • • A. 3. Page S KUTAK ROCK LLP Honorable Dan Coody March 11 , 2003 Page 4 CONFLICTS During the course of any Bond and lease/purchase financings referenced above, our firm will likely be representing the underwriter(s) of the Bonds or the lessor(s) under Lease/Purchase Agreements in separate unrelated matters. We do not believe such representations, if they occur, will adversely affect our ability to represent you as provided in this letter because such matters will be sufficiently different from the issuance of the Bonds or the entry into the Lease/Purchase Agreement so as to make such representations not adverse to our representation of you. Execution of this letter will signify the City's consent to our representation of said underwriter(s) and lessor(s) consistent with the circumstances described in this paragraph. FEES (a) In connection with each issue of Bonds as described above, we propose Bond Counsel fees as set forth in the following table: Principal Amount Bond Counsel Fee Up to $5,000,000 $25,000 $5,000,001 — $ 10,000,000 $309000 $ 10,000,001 - $ 15,000,000 $352000 $ 15,0009001 - $20,0007000 $379500 $20,000,001 - $30,0009000 $40,000 $30,000,001 - $5090007000 $45,000 In the event we are asked to undertake additional duties traditionally performed by underwriter's counsel (including the preparation of the Bond Purchase Agreement and Official Statement), we propose an additional fee of $5,000 in connection with each such issue under $ 10,000,000 in principal amount and $7,500 in connection with each such issue over $10,000,000 in principal amount. (b) In connection with each Lease/Purchase Agreement as described above, we propose Bond Counsel fees as set forth in the following table: Principal Amount Bond Counsel Fee Up to $5,000,000 $12,500 $5,0007001 — $10,000,000 $155000 $ 10,0009001 - $ 15,0001000 $ 17,500 $ 15,000,001 - $201000,000 $202000 $202000,001 - $30,000,000 $25,000 $3090002001 - $50,0009000 $30,000 10-45784.01 • • Kutak Rock, LLP KUTAK ROCK LLP A. 3. Page Honorable Dan Coody March 11 , 2003 Page 5 (c) For serving the City as special counsel with respect to election matters as described above, we propose a fee based upon a flat hourly rate of $200 per hour for all attorneys of the firm who perform legal services in connection with such engagement. In addition, with respect to each representation of the City described above, we will expect to be reimbursed for all client charges made or incurred on your behalf, such as travel costs, photocopying, deliveries, long distance telephone charges, fax charges, filing fees, computer-assisted research and other out-of-pocket expenses. We understand and agree that our fees with respect to Bonds and Lease/Purchase Agreements will be paid at the time of Closing of each such financing. If the financing is not consummated, we understand that we will not be paid for time expended on your behalf but will be reimbursed for client charges made or incurred on your behalf. Our fees with respect to election matters will be billed on a monthly basis and are payable irrespective of the submission of questions to the voters or the ultimate approval of questions submitted. If the foregoing terms are acceptable to you, please so indicate by returning the enclosed copy of this engagement letter signed by an appropriate officer, retaining the original for your files. We look forward to working with you. KUTAK ROCK LLP By: r n M. Wilbourn Accepted and Approved: CITY OF FAYETTEVILLE, ARKANSAS By: Title: Dated: 1045794.01 • STAFF REVIEW FORM • XX AGENDA REQUEST Stephen's, Inc. CONTRACT REVIEW A. 4. Page I GRANT REVIEW For the Fayetteville City Council Meeting of : Aprill . 2003 PROMs Stephen Davis Finance & Internal Services Div. Finance & Internal Services Name Division Department ACTION RBQIIIRSD : Approval of a Bond Underwriting Agreement with Stephen's Inc for bond underwriting services in conjunction with the City of Fayetteville, Arkansas Hotel and Restaurant Gross Receipts Tax Bonds - Series 1998 (Town Center Bond Issue) Refunding. The cost of Issuance will be deducted from the bond proceeds. COST TO CITY : $70 , 000 - estimated $ Cost of this request Program Category / Project Name Account Number Funds Used to Date Program / Project Category Name Project Number Remaining Balance Fund Name BUDGET RBVISW : Budgeted Item Budget Adjustment Attached Budget Manager Date CONTRACT/GRANT/LEASE RHVIBNt Accounting Manager Date Internal Auditor Date City Attorney Date Purchasing Manager Date STAFF RBCOM CMDATIONt Staff recommends approval of underwriting agreement. Cross Reference Division Head Date New Item : Yee No Department Director Date Previous Ord/Ree# : � ,-� 3 _ / --Q3 Orig . Contract Date Finan 6e & internal Services Dir . Date jL7�U�l Orig . Contract Number Chie A rativ Of cer Date 3 N3 Mayor Date