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HomeMy WebLinkAbout59-72 RESOLUTIONRESOLUTION NO. 'W� BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF FAYETTEVILLE, ARKANSAS: That the Mayor and City Clerk be and they hereby are authorized and directed to execute an agreement for the employment of a Fiscal Agent to render advice in connection with Water and Sewer Revenue Bonds. A copy of said agreement is attached hereto, marked Exhibit "A", and made a part hereof. PASSED AND APPROVED this, day of % n, 1972, ATTEST: :. r . Board of Directors City of Fayetteville Postal Drawer F Fayetteville, Arkansas 72701 Gentlemen: December 7, 1972 1. We understand that you contemplate the issuance of $3,520,000 Waterworks and Sewer Revenue Bonds and refunding $882,000 of your Waterworks and Sewer Revenue Bonds, and that in connection with the authorization, issuance, sale and delivery of such bonds you desire this proposal from us to perform professional services in the capacity of Financial.Advisors for your City. 2. By this proposal we offer our professional services and our facilities as Financial Advisors and agree to perform the following duties normally performed by such advisors, and to perform such other duties, as in our judgment, may be necessary or advisable: a. To make a study of the operating results of your Waterworks and Sewer System and, after taking into account any outstanding obliga- tions which are payable from the net.revenues thereof and additional net revenues projected, to devise and recommend for your approval a plan of financing to cover the proposed bonds. Such plan shall include a maturitv.schedule and other terms and conditions, such..asiontions of prior payment, retention of the right to issue additional bonds and the like, as will, in our opinion, result in the issuance of the bonds under terms and conditions most advantageous to your City consistent with a minimum effective interest rate. b. We understand that you have retained or expect to retain Smith, Williams, Friday, Eldredge $ Clark, a firm of recognized municipal bond attorneys, who will prepare the proceedings and advise. the steps neces- sary to be taken, the legal issuance of the bonds and the final delivery of the bonds and who will issue an opinion approving the legality of the bonds. All financial services rendered pursuant to this contract will - be performed in such manner, and will include assembling and accumulating such financial facts, information and data, as will be necessary or appropriate to obtain the unqualified approving legal opinion of said attorneys. The fee of said attorneys will be paid by us. c. To advise you of current bond market conditions, forthcoming bond issues and other general information and economic data which might normally be expected to influence interest rates or bidding conditions so that the date for the sale of the bonds can be set at a time which, in our opinion, will be favorable. d. To compile from your official records for submission to and approval by your governing body an official statement or prospectus, if required by you, containing official data and other information of the nature and to the extent ordinarily required in bidding on bonds of this type, all of which we are to furnish in a sufficient number of copies to permit mailing to prospective bidders, a list of which we agree to provide. In addition we agree to 'furnish 200 copies of said official statement or prospectus for your use, which we understand may include mailing to prospective bidders not listed by us. e. To attend to and pay for the printing of bonds. f. To pay Trustees fees in connection with the issuance and delivery of the bonds. g. To submit all financial information to Bond Rating Agencies, to maintain or improve present ratings. The cost of such ratings will be paid by us. 3. We agree to direct and coordinate the entire program of finan- cing herein contemplated and to assume and pay the expenses above enumerated. It is specifically understood and agre ed,however, that this obligation on our part shall not cover publication costs, or the expenses of any litigation. 4. As consideration for the services rendered by us and as reim- bursement for the expenses which we are to incur, it is understood and agreed that your City is to pay and we are to accept a cash fee to be computed as follows: $ 3.746 per $1,000 par value Such fee shall become due and payable simultaneously with the delivery of the bonds to the purchaser. 5. It is further understood and agreed that we may not submit a bid for the bonds either directly or indirectly when offered for sale. 6. This agreement shall be terminated by the delivery to the pur- chaser of the bonds covered hereby, or by the elapse of six (6) morths from date of your acceptance hereof, which ever shall first occur; however, if the bonds have not been so delivered within the period specified, this agreement may be extended by mutual consent. 7. This proposal is submitted in duplicate originals. When accepted by you it will constitute the entire agreement between your City and the undersigned for the purpose and considerations herein specified. Your acceptance will be indicated by the signature of your Mayor, attested by your City Clerk, on both copies and returning one executed copy to us. Respectfully submitted, FIRST SOUTHWEST COMPANY (Name of Firm) ACCEPTANCE Accepted pursuant to Resolution number adopted by the Board of Directors of the City of Fayetteville, Arkansas on this the 14,T, day of _ ro�,v„�y�) �9 II Attest: