HomeMy WebLinkAboutOrdinance 5457 ORDINANCE NO. 5457
AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF NOT TO
EXCEED $6,500,000 OF PARKING REVENUE IMPROVEMENT BONDS BY
THE CITY OF FAYETTEVILLE, ARKANSAS FOR THE PURPOSE OF
FINANCING ALL OR A PORTION OF THE COSTS OF ACQUISITION,
CONSTRUCTION AND EQUIPPING OF A PARKING DECK. FACILITY;
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 of Fayetteville, Arkansas (the "City"), has determined that there is
a need for increased parking capacity in the City's Entertainment District and desires to provide
such capacity through the acquisition, construction and equipping of parking deck facilities and
related roadway and other improvements, such facilities and improvements to be located within
the Entertainment District Parking Zone (the"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 65 to the
Constitution and Arkansas Code Annotated (1998 Repl. & 2011 Supp.) Sections 14-164-401 et
seq. (as from time to time amended, the "Act"), to issue and sell its revenue bonds and to expend
the proceeds thereof to finance the costs of"capital improvements" (as defined in the Act), such
as those improvements comprising the Project; and
WHEREAS, in accordance with the provisions of Amendment 65 and the Act, the City
has determined to issue its Parking Revenue Improvement Bonds (the "Bonds") in the aggregate
principal amount of not to exceed $6,500,000 for the purpose of(i) financing some or all of the
costs of acquisition, construction and equipping of the Project, (ii) establishing a debt service
reserve for the Bonds, and(iii)paying printing, underwriting, legal and other expenses incidental
to the issuance of the Bonds; and
WHEREAS, the Bonds will be secured by and payable from net revenues (after
provision for operation and maintenance expenses, including previous debt for parking
equipment) attributable to parking fees, leases, rents, fines, charges and other revenues collected
by the City with respect to its meters, lots and other parking facilities, and including net revenues
to be generated by the Project and net revenues with respect to City management of parking
facilities owned by third parties (the"Net Parking Revenues"); and
WHEREAS, an open public hearing on the question of the issuance of the Bonds has
been held before the City Council on November 1, 2011, following publication of notice thereof
in the Northwest Arkansas Times on October 21, 2011; and
WHEREAS, the City has determined to issue and secure the Bonds pursuant to a Trust
Indenture (the "Trust Indenture"), by and between the City and Simmons First Trust Company,
N.A., as trustee (the "Trustee"), a form of which has been presented to and is before this
meeting; and
WHEREAS, the City proposes to enter into a Bond Purchase Agreement (the "Bond
Purchase Agreement") in substantially the form presented to and before this meeting, with
Stephens Inc., Fayetteville, Arkansas (the"Underwriter"),providing for the sale of the Bonds.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of
Fayetteville, Arkansas:
Section 1: The City Council hereby finds and declares that the acquisition,
construction and equipping of the Project is in the best interest of the City and its residents.
Section 2: Under the authority of the Constitution and laws of the State of Arkansas,
including particularly Amendment 65 to the Constitution of Arkansas and the Act, there is
hereby authorized the issuance of bonds of the City to be designated as "Parking Revenue
Improvement Bonds" (the "Bonds"). The Bonds shall be issued in the original aggregate
principal amount of not to exceed Six Million Five Hundred Thousand Dollars ($6,500,000),
shall mature not later than June 1, 2037, and shall bear interest at the rates specified in the Bond
Purchase Agreement. The average yield on the Bonds as a whole shall not exceed 5.00% per
annum. The proceeds of the Bonds will be utilized, along with other available moneys, to
finance the costs of the Project, to establish a debt service reserve for the Bonds, 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. The Bonds shall not be secured
by general revenues of the City, but shall be payable from and secured by Net Parking Revenues.
The Mayor is hereby authorized and directed to execute and deliver the Bonds 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 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 the Trust Indenture (the "Trust Indenture"), by and between
the City and 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 Net Parking Revenues to the Bonds 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.
3
(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 City and the Net Parking Revenues 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: The various rates and amounts for the parking fees, rents, fines and
charges generating the Net Parking Revenues previously enacted by the City Council are hereby
ratified and confirmed.
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: The Bonds are hereby designated as "qualified tax-exempt obligations"
within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the
"Code"). The City hereby represents and covenants that the aggregate principal amount of its
tax-exempt obligations (excluding "private activity bonds" within the meaning of Section 141 of
the Code), including those of its subordinate entities, issued in calendar year 2011 will not
exceed$10,000,000.
Section 10: Kutak Rock LLP, Little Rock, Arkansas, is hereby appointed to act as
Bond Counsel on behalf of the City in connection with the issuance and sale of the Bonds.
Section 11: The adoption of this Ordinance is intended as the City's "official intent"to
reimburse itself from the proceeds of the Bonds for preliminary costs of the Project and related
expenses advanced by the City.
4
Section 12: 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 13: All ordinances, resolutions and parts thereof in conflict herewith are
hereby repealed to the extent of such conflict.
PASSED and APPROVED this 15th day of November, 2011.
APPROVED: ATTEST:
B Dy: - 06pvlkou
I ELD JO ;;'Mayor SONDRA E. SMITH, City ClerlJTreasurer
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City of Fayetteville Staff Review Form
City Council Agenda Items
and
Contracts, Leases or Agreements
November 1,2011
City Council Meeting Date
Agenda Items Only
Paul A Becker Finance and Internal Services Finance and Internal Services
Submitted By Division Department
Action Required:
This is a request to approve a bond ordinance authorizing the issuance of Parking Revenue Improvement Bonds, in a
face amount not to exceed $6,500,000, the proceeds of which would be used to finance the construction of a parking
facility in the Entertainment District.
N/A $ -
Cost of this request 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
1911k►ll Previous Ordinance or Resolution#
Department Director Date
Original Contract Date:
Original Contract Number:
City A orney Date
1af�d+ (D.,- &C�
Finance and Internal Services Director Date Received in Cif)0-2 0-1 1 A 11 0 9• R C V D
Clerk's Office
.�
C ief of S ff Date
Received in
/ Mayor's Office f
Ma or Date
Comments:
F� Revised January 15,2009
•
a e evl e THE CITY OF FAYETTEVILLE,ARKANSAS
DEPARTMENT CORRESPONDENCE
ARKANSAS
CITY COUNCIL AGENDA MEMO
To: Mayor Jordan and Members of the Fayetteville City Council
Thru: Don Marr, Chief of Staff
From: Paul A Becker, Finance Director
Date: October 13, 2011
Subject: Request Approval of a Bond Ordinance Authorizing the Issuance of Parking Revenue Bonds
Recommendation:
Staff recommends the approval of a Parking Revenue Bond Ordinance in an amount not to exceed a face value
of$6,500,000.Sale of the bonds authorized will be repaid with net parking revenues which will be pledged for
that purpose. The coverage for calculation for these bonds will be 1.25% average debt service required per year.
In order to secure the bonds, it will be necessary for the City to covenant that fees, rents fines, and charges
generating Net Parking Revenue, if and when necessary, from time to time, be increased in such a manner as to
produce Net Parking Revenue sufficient to equal 1.25% of the annual debt service on bonds outstanding and
any amount, if any, required to maintain the debt service reserve requirement. The initial coverage for the
amount required is calculated to be 1.7% coverage which should be more than adequate for the near future.
Issues•
The need for additional parking in the Entertainment District has been recognized and discussed for many
years. However, no revenue stream was available to the City to provide additional parking space or build a
parking facility to accommodate the need for parking. Mayor Jordan brought forward the paid parking program,
which the Council subsequently adopted, to address that need. Adoption of this ordinance will provide the
necessary funding to proceed with the parking facility project.
BUDGET IMPACT:
Again, the sale of the bonds authorized by this resolution will provide the funding necessary to move forward
with the project. The bond sale is expected to net approximately$5,500,000 for the project. The balance of the
Amount generated will be needed to meet reserve requirements and pay issuance costs.
ORDINANCE NO.
AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF NOT
TO EXCEED $6,500,000 OF PARKING REVENUE IMPROVEMENT
BONDS BY THE CITY OF FAYETTEVILLE, ARKANSAS FOR THE
PURPOSE OF FINANCING ALL OR A PORTION OF THE COSTS OF
ACQUISITION, CONSTRUCTION AND EQUIPPING OF A PARKING
DECK FACILITY; 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 of Fayetteville, Arkansas (the "City"), has determined that there is
a need for increased parking capacity in the City's Entertainment District and desires to provide
such capacity through the acquisition, construction and equipping of parking deck facilities and
related roadway and other improvements, such facilities and improvements to be located within
the Entertainment District Parking Zone(the"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 65 to the
Constitution and Arkansas Code Annotated (1998 Repl. & 2011 Supp.) Sections 14-164-401 et
seq. (as from time to time amended, the "Act"), to issue and sell its revenue bonds and to expend
the proceeds thereof to finance the costs of"capital improvements" (as defined in the Act), such
as those improvements comprising the Project; and
WHEREAS, in accordance with the provisions of Amendment 65 and the Act, the City
has determined to issue its Parking Revenue Improvement Bonds (the "Bonds") in the aggregate
principal amount of not to exceed $6,500,000 for the purpose of(i) financing some or all of the
costs of acquisition, construction and equipping of the Project, (ii) establishing a debt service
reserve for the Bonds, and (iii)paying printing, underwriting, legal and other expenses incidental
to the issuance of the Bonds; and
WHEREAS, the Bonds will be secured by and payable from net revenues (after
provision for operation and maintenance expenses, including previous debt for parking
equipment) attributable to parking fees, leases, rents, fines, charges and other revenues collected
by the City with respect to its meters, lots and other parking facilities, and including net revenues
to be generated by the Project and net revenues with respect to City management of parking
facilities owned by third parties(the"Net Parking Revenues"); and
WHEREAS, an open public hearing on the question of the issuance of the Bonds has
been held before the City Council on November 1, 2011, following publication of notice thereof
in the Northwest Arkansas Times on October 21, 2011; and
4841-9672-0651.3
WHEREAS, the City has determined to issue and secure the Bonds pursuant to a Trust
Indenture (the "Trust Indenture"), by and between the City and Simmons First Trust Company,
N.A., as trustee (the "Trustee"), a form of which has been presented to and is before this
meeting; and
WHEREAS, the City proposes to enter into a Bond Purchase Agreement (the "Bond
Purchase Agreement") in substantially the form presented to and before this meeting, with
Stephens Inc., Fayetteville, Arkansas (the"Underwriter"),providing for the sale of the Bonds.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of
Fayetteville,Arkansas that:
Section 1. The City Council hereby finds and declares that the acquisition,
construction and equipping of the Project is in the best interest of the City and its residents.
Section 2. Under the authority of the Constitution and laws of the State of Arkansas,
including particularly Amendment 65 to the Constitution of Arkansas and the Act, there is
hereby authorized the issuance of bonds of the City to be designated as "Parking Revenue
Improvement Bonds" (the "Bonds"). The Bonds shall be issued in the original aggregate
principal amount of not to exceed Six Million Five Hundred Thousand Dollars ($6,500,000),
shall mature not later than June 1, 2037, and shall bear interest at the rates specified in the Bond
Purchase Agreement. The average yield on the Bonds as a whole shall not exceed 5.00% per
annum. The proceeds of the Bonds will be utilized, along with other available moneys, to
finance the costs of the Project, to establish a debt service reserve for the Bonds, 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. The Bonds shall not be secured
by general revenues of the City,but shall be payable from and secured by Net Parking Revenues.
The Mayor is hereby authorized and directed to execute and deliver the Bonds 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 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 the Trust Indenture(the"Trust Indenture"), by and between
the City and 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
4841-9672-0651.3 2
thereof pertaining to the pledge of Net Parking Revenues to the Bonds 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 City and the Net Parking Revenues 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
4841-9672-0651.3 3
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. The various rates and amounts for the parking fees, rents, fines and
charges generating the Net Parking Revenues previously enacted by the City Council are hereby
ratified and confirmed.
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. The Bonds are hereby designated as "qualified tax-exempt obligations"
within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the
"Code"). The City hereby represents and covenants that the aggregate principal amount of its
tax-exempt obligations (excluding"private activity bonds" within the meaning of Section 141 of
the Code), including those of its subordinate entities, issued in calendar year 2011 will not
exceed $10,000,000.
Section 10. Kutak Rock LLP, Little Rock, Arkansas, is hereby appointed to act as
Bond Counsel on behalf of the City in connection with the issuance and sale of the Bonds.
Section 11. The adoption of this Ordinance is intended as the City's "official intent"to
reimburse itself from the proceeds of the Bonds for preliminary costs of the Project and related
expenses advanced by the City.
Section 12. 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.
4841-9672-0651.3 4
Section 13. All ordinances, resolutions and parts thereof in conflict herewith are
hereby repealed to the,extent of such conflict.
ADOPTED AND APPROVED THIS DAY OF , 2011.
APPROVED:
Mayor
ATTEST:
City Clerk
(S E A L)
4841-9672-0651.3 5