HomeMy WebLinkAbout144-83 RESOLUTIONRESOLUTION NO. 144 - 83
16-1.„
A. RESOLUTION AUTHORIZING THE MAYOR. AND CITY CLERK
TO EXECUTE A CONTRACT WITH FIRST NATIONAL BANK,
McILROY BANK AND TRUST AND NORTHWEST NATIONAL BANK
FOR EXPERT FINANCIAL ADVICE IN THE DEVELOPMENT OF
A MARKETABLE REVENUE BOND ISSUE TO FINANCE IMPROVEMENTS.
TO THE CITY'S WASTEWATER TREATMENT PLANT AND SYSTEM.
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 toexecute a contract with First National Bank,
Mcllroy Bank and Trust and Northwest National Bank for
expert financial advice in the development of a marketable
revenue bond issue to financeimprovements to the City's
wastewater treatment plant and system A copy of the contract
authorized for execution hereby is attached hereto, marked
Exhibit A and made a part hereof.
PASSED AND APPROVED this 6th day of December, 1983.
APPROVED:
MAYOR
CONTRACT
THIS Contract executed this
day of ijpyjtieit.,/
1983, by the City of Fayetteville, Arkansas, hereinafter
called "the City," with First National Bank, Fayetteville,
Arkansas, Mcllroy Bank &.Trust Company, Fayetteville, Arkansas,
-and Northwest National Bank, Fayetteville, Arkansas, hereinafter
called "the Financial Advisors."
WHEREAS, the City of Fayetteville proposes to issue
revenue bonds to finance necessary improvements to the
City's wastewater treatment plant and system; and,
WHEREAS, the City will require expert financial advice
in order to develop a marketable bond issue and obtain the
lowest interest rates possible; and
WHEREAS., the City desires to retain the Financial Advisors
to render the said necessary expert advice.
NOW, THEREFORE, in consideration of the mutual covenants
and agreements contained herein, the City and the Financial
Advisors agree as follows:
1. The Financial Advisors shall render the following
services to the City:
(a) Recommend an amortization schedule for the proposed
debt;
(b) Recommend whether the proposed bonds should be
sold as one issue or a series of issues;
(c) Recommend whether the City's outstanding sewer
revenue bonds should be defeased or refunded;
(d) Recommend whether, in addition to the City's one
percent (17) local sales and use tax, any portion of.
the City's water and sewer revenues should be pledged
toward payment of the proposed bonds;
(e) Recommend the covenants to be contained in the
trust indenture for the proposed bonds;
(f) Recommend a flow of funds for the proposed bonds;
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Page Two
Contract
(g) Recommend the reserve funds to be established in
the trust indenture for the proposed bonds;
(h) Recommend the manner in which bond proceeds should
be released during construction;
(i) Recommend whether the interest rate on the proposed
bonds should be a floating rate or a fixed rate; and,
(j) Recommend whether the bonds should be rated by a
rating service.
2. The Financial Advisors shall prepare and arrange
for the printing and publication of the official notice of
sale. The cost of said printing and publication shall be
borne by the City.
3. In order to expedite the sale of the bonds, the
Financial Advisors will coordinate the services to be rendered
by the accountant (to be selected by the City), the attorneys
(the Rose Law Firm and the City Attorney), the printer (to
be selected by the City upon recommendation by the Financial
Advisors), and the rating agency, if any, (to be selected by
the City upon recommendation of the Financial Advisors).
4. The Financial Advisors shall supervise the public
sale of the bonds and shall obtain for the City the best
possible net interest rate.
5. For services rendered by the Financial Advisors
under this Contract, the City shall pay the Financial Advisers
a lump sum fee of $10,000.00. Said fee shall be payable
from the proceeds of the proposed bonds. In the event the
proposed bonds are not sold, the Financial Advisors shall
not be entitled to any compensation, but shall be reimbursed
for any out-of-pocket expenses.
IN WITNESS WHEREOF, the parties have executed this
Contract on the date first above written.
CITY OF FAYETTEVILLE, ARKANSAS
By
Mayor
Page Twit)"
Contract
ATTEST:
ATTEST:
Title: /1,1,
ATTEST:
Title:
FIRST NATIONAL BANK
d-A-Ar4
By:
Title 66(40-kR ti t I)
McILROY BANK & TRUST COMPANY
By:
Title:
J
rte. 111c�i�,r
NORTHWEST NATIONAL BANK
By:
T. ,24014441.,
Title: l,$oir4494,u +04 e E.6.
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