HomeMy WebLinkAbout28-79 RESOLUTION•
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RESOLTUION NO. e8-7_�j
A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE A BOND PURCHASE AGREEMENT WITH PAYNE, WEBBER, JACKSON,
AND CURTIS, INC., AND POWELL & SATTERFIELD, INC., FOR THE SALE
OF AIRPORT REVENUE BONDS IN THE PRINCIPAL AMOUNT OF $600,000.00.
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
That the Mayor and City Clerk are hereby authorized and
directed to execute a bond purchase agreement with Payne, Webber,
Jackson, and Curtis, Inc., and Powell & Satterfield, Inc., for
the sale of Airport Revenue Bonds in the principal amount of
$600,000.00. A copy of the purchase agreement authorized for
execution hereby is attached hereto marked "Exhibit A" and made
a part hereof.
PASSED AND APPROVED this /, -day of , 1979.
FATTEST
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:;°e1 IntliMek
,a i CITY LER
APPROVED:
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MICROFILMED Ito
DATE NN Li
Established 1879
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PAINE
WEBBER
JACKSON
& CURTIS
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Members New York Stock Exchange, Inc. and other Principal Exchanges
4080 First International Building, Dallas, Texas 75270 _(214) 655-6000
April 13, 1979
Mayor and Board of Directors
City of Fayetteville
Fayetteville, Arkansas
tXHIB@VA
Gentlemen:
We have received a copy of yoir preliminary Official Statement of your
issue of Airport Revenue Bonds in the amount of $600,000, dated May 1, 1979;
interest payable May 1 and Noverber 1, with the first interest payable November 1,
1979.
For the purchase of these bonds, we make you the following proposal:
We will pay you $588,000 (price of 98.00) plus accrued interest for
bonds maturing November 1 each year in the amounts indicated, and bearing
interest as follows:
$25,000 11-1-82 7.00%
25,000 11-1-83 7.007
30,000 11-1-84 7.00%
30,000 11-1-85 7.00%
35,000 11-1-86 7.007
35,000 11-1-87 7.00%
35,000 11-1-88 6.60%
40,000 11-1-89 6.70%
$40,000
45,000
45,000
50,000
50,000
55,000
60,000
11-1-90 6.80%
11-1-91 6.907
11-1-92 7.00%
11-1-93 7.007
11-1-94 7.10%
11-1-95 7.207
11-1-96 7.25%
All bonds maturing November 1, 1990 through November 1, 1996 will be redeem-
able at the City's option on November 1, 1989, or any interest payment date
thereafter, at their par value, plus accrued interest to the date fixed for
redemption.
The ordinance authorizing the issuance of these bonds will include all the
normal provisions which apply to the issuance of Airport Revenue Bonds, in-
cluding the following provisions.
(1) A debt service reserve fund will be established in an amount equal
to the maxinun principal and interest requirements on this issue.
This reserve fund will be established over a period of sixty (60)
months by monthly deposits of one -sixtieth of the maximum debt
service requirements.
(2) Additional bonds to complete this project in an amount not exceed-
ing $150,000 may be issued, provided the net revenues of the Airport
for the last completed fiscal year is not less than one times average
debt service on the total outstanding bonds, including additional
completion bonds.
(3) Additional parity bonds may be issued, provided the net revenue of
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the Airport for the last completed fiscal year is not less than
one and one half times the average debt service requirements an
the outstanding bonds, plus the debt service requirements on the
bonds proposed to be issued.
(4) Rates for services at the Airport will be maintained which will
be sufficient at all times to produce a net income not less than
one and one-fourth times maximum debt service requirements
(5) Insurance on all structures and equipment will be maintained in
an amount which is normal for Airports.
These bonds are to be delivered to us at a bank mutually agreed upon within
forty-five (45) days of this date. If, for any reason, these bonds cannot be
delivered within this period, we, the purchasers, will have an option to pur-
chase the bonds for an additional thirty(30) days
The paying agent bank for this issue of bonds will be a bank in the State
of Arkansas to be muied by us, the purchaser, not later than 5:00 P.M., April 16,
1979
The City agrees to furnish to us one hundred (100) copies of the printed
Official Statement on this issue
We agree to take delivery of these bonds when tendered to us, free of
litigation, together with final Official Statement, a copy of which will be
executed by the Mayor and City Clerk, together with an unqualified legal opinion
issued by Bond Counsel, Friday, Eldredge and Clark, Little Rock, Arkansas.
Delivery of the bonds to us will be made at a bank mutually agreed upon by
the City and ourselves.
We enclosed with this proposal a Good Faith Check in the amount of
$12,000.00 which is to be held by you uncashed and returned to us upon your
delivery of and our payment therefor of the bonds covered by this proposal. In
the event we refuse to fulfill the terms of this proposal, this check will be for-
feited by us to yoiu as full liquidated damages.
This proposal is made for your immediate acceptance or rejection.
PAINE, WEBBER, JACKSON & CURTIS, INC.
POWELL & SATTERFIELD, INC.
By �' /L3W r -?t.b T f
Accepted by resolution by the Board of Directors of Fayetteville, Arkansas,
on this the 13th day of April, 1979.
City o Fayettevi e, Arkansas
LivuoLtock
City G�1J'k, City of Fayetteville, Arm