The URL can be used to link to this page

Home My WebLink About114-01 RESOLUTION• • RESOLUTION NO. 114-01 A RESOLUTION AUTHORIZING ADDITIONAL FUNDING OF $15,000.00 FOR ADDITIONAL SERVICES FROM STEPHENS, INC., PURSUANT TO ITS LETTER AGREEMENT OF JULY 21, 2001 WHEREAS, the letter agreement between the City of Fayetteville and Stephens, Inc. for Financial Advisory Services was approved by City Council Resolution #104-00 on August 1, 2000, for an amount of not to exceed $22,500.00; WHEREAS, the City of Fayetteville needs to purchase additional financial advisory services pursuant to the same terms of the letter agreement signed on August 1, 2000 in an amount of not to exceed $15,000.00. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS; Section 1. That the City Council of Fayetteville, Arkansas hereby approves an additional amount of not to exceed $15,000.00 for Financial Advisory Services for Stephens, Inc. at the rate of $225.00 per hour to be paid from the Wastewater Treatment System Expansion Project budget. PASSED and APPROVED this the 21s1 day of August, 2001. ATTEST: By: Bather Woodruff, City Clerk APPROVED: By: Res. 114-01 • • • Ltr Ex EXHIBIT A Ste Stephens Inc. Dennis R. Hunt Senior Vice President and Manager July 5, 2000 Mr. John Maguire Administrative Services Director City of Fayetteville 113 W Mountain Fayetteville, AR 72701 RE• Agreement for Financial Advisory Services Dear Mr. Maguire: This letter is to serve as an engagement agreement between the City of Fayetteville, Arkansas ("the City") and Stephens Inc ("Stephens") pursuant to which Stephens will serve as Financial Advisor to the City to assist with the financing of the City's Wastewater Treatment Plant Expansion Project (WWTP). Our firm was selected to act in such capacity as a result of its response to the City's Request for Proposals dated May 23, 2000 ("RFP 2000-12"). Based on the City's RFP and information in our proposal, we have agreed as follows: 1. Services to be provided. Subject to the direction of the City, Stephens will provide advisory services as presented below: Development of a Plan of Finance a) Stephens will assist in developing a financing plan and recommend financing alternatives designed to assure that the City's goals and objectives are met. b) In the course of this preliminary work, Stephens will analyze the City's capacity to support the proposed debt and make recommendations regarding the fmancmg structure, which will insure that the City has available sufficient funds for annual debt service payments and operational flexibility. c) Stephens' professionals will attend public meetings to present information regarding the recommended Plan of Finance. Management of the Financing a) As the City's Financial Advisor, Stephens will manage all aspects of the financing. b) Stephens will assist the City in the selection of other members of the project team including underwnters, attorneys, trustees and other parties as required. Investment Bankers www stephens cow 2592 North Gregg Avenue • Suite 1 • Fayetteville Arkansas 72073 • 501-718-7400 • Fax 501-718-7490 800-205-8613 • dhunt@stephens.com • Res. 114-01 Exhibit A 2 _ July 21, 2000 c) Stephens will develop a financing timetable that assigns specific responsibilities to the project team. The timetable will be monitored throughout the financing process and amended as required. d) Stephens will be responsible for coordinating the work of all members of the financing team including the City's staff and officials, state agencies, bond counsel, underwriters, engineers, accountants, printers, rating agencies and credit enhancement providers. e) Should the City seek ratings and/ or credit enhancement, Stephens will coordinate preparation and presentation of information to the rating agencies and credit enhancement providers. f) Stephens will work with attorneys in drafting documents that provide the City with maximum operational flexibility and insure the integrity of the transaction. Support of City Officials and Staff a) Stephens' professionals will provide information for public briefings and attend meetings as requested by the City. b) Stephens' professionals will keep the financing on schedule in order to meet all public commitments. Implementation of Financing Plan a) Stephens will advise the City on proper timing of the sale of the securities in order to take advantage of maximum investor demand and windows of opportunity in the marketplace. b) Stephens will advise the City on pricing of the issue to provide for lowest possible debt service costs. c) Stephens will manage the closing of the financing and the delivery of funds to the City. d) Stephens will advise the City on interim investment of financing proceeds. e) Stephens will be available following the closing of each financing to work with the City should any issues arise. 2. Compensation. As compensation for our services, Stephens shall receive $225.00 per hour for services rendered by professionals employed by Stephens, identified as Dennis Hunt, Mark McBryde and Ron Pyle, plus out-of-pocket expenses incurred in connection with the provision of such services by Stephens. Out-of-pocket expenses shall to limited to out of the city travel and priority mail costs. Each out of pocket expense shall be subject to approval by the City. Stephens will invoice the City for its services on a monthly basis or at other such intervals acceptable to the City, and invoices will be due and payable within 30 days of receipt by the City. Each invoice will present a description in reasonable detail of the services performed, including dates and professionals providing such services, and of the expenses incurred. • • Res. 114-01 Exhibit A —3— July 21,2000 3. Term. This contract shall remain in effect until the earlier of the completion of the WWTP financing or up to three years from the date of this agreement with an option for renewal by the City for an additional two years. In the event that current plans to finance the WWTP principally through ADEQ are not feasible, the City and Stephens may mutually cancel this agreement which would permit Stephens to compete in the sale of bonds or other financing by the City. If the foregoing accurately describes our agreement for this financing, please sign and return one copy as indicated below. Sincerely, -DM/US Jiwit Dennis Hunt Senior Vice President 1vuJ / Agreed and Accepted on Qa/l" / , 2000. City of Fayetteville, Arkansas/ By: DH/whw Ade/k," NAME OF FILE: CROSS REFERENCE: • Resolution No. 114-01 • 08/21/01 Resolution No. 114-01 07/21/01 Exhibit 'A" (Letter Agreement with Stephens, Inc. for Financial Advisory Services approved by City Council Resolution No. 104-00 on August 1, 2000) 08/01/00 Copy of Resolution No. 104-00 08/08/01 Departmental Correspondence to Mayor Dan Coody and City Council from Ted Webber, Admin. Services Director, regarding continuation of financial advisor services -Wastewater System Improvement Project 08/21/01 Staff Review Form 08/27/01 Memo to Ted Webber, Admin. Services Director, from Heather Woodruff, City Clerk NOTES: • RESOLUTION NO. 104-00 • COpy A RESOLUTION APPROVING A LETTER AGREEMENT IN AN AMOUNT NOT TO EXCEED $22,500, WITH STEPHENS, INC. TO PROVIDE FINANCIAL ADVISORY SERVICES ON THE WASTEWATER TREATMENT PLANT EXPANSION PROJECT AT A RATE OF $225/PER HOUR (RESTRICTIVE TO CERTAIN IDENTIFIED INDIVIDUALS) ; AND APPROVAL OF A BUDGET ADJUSTMENT. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTE VILLE, ARKANSAS• Section 1. That the City Council hereby approves a letter agreement in an amount not to exceed $22,500, with Stephens, Inc. to provide financial advisory services on the wastewater treatment plant expansion project at a rate of $225/per hour (restrictive to certain identified individuals); and authorizes the Mayor and City Clerk to execute said agreement. A copy of the letter agreement is attached hereto marked Exhibit "A" and made a part hereof. Section 2. The City Council here approves a budget adjustment m the amount of $22,500 increasing Professional Services, Acct. No. 5400 5700 5314 00, Project No. 98047 40 by decreasing Waterline Improvements, Acct. No. 5400 5600 5808 00, Project No 990841. A copy of the budget adjustment is attached hereto marked Exhibit "B" and made a part hereof. PASSED AND APPROVED thisIs' day of August , 2000 Pet,. APPROVED: mei 414-Jc- Fr d Hanna, Mayor fr ,„LitHeather Woodru , City Cle • By: Cc Re FAYETTEV4ILLE THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE • TO: FROM: DATE: SUBJECT: Mayor Dan Coody and City Council Ted Webber, Administrative Services Director August 8, 2001 Continuation of Financial Advisor Services - Wastewater System Improvement Project In August 2000, the City approved a letter agreement with Stephens Inc. where Stephens Inc. would provide financial advisory services in conjunction with the City's Wastewater System Improvements Project. The original contracting authorization approved by City Council was for an amount not to exceed $22,500. Through July 31, 2001, the City has utilized $19,913 of the original authorization. Staff is requesting authority for continuing financial advisory services. Staff estimates that an additional $15,000 will be sufficient to provide the services needed through the completion of the financing agreements for the Wastewater System Improvement Project. Stephens Inc. agreed to provide financial advisory services to the City for a three year time period or until the financing of the Wastewater System Improvement Project was completed. c • • RECEIVED STAFF REVIEW FORM XX AGENDA REQUEST AUG o 9 CONTRACT REVIEW 2001 GRANT REVIEW Cry Cith4 O lCEE For the Fayetteville City Council meeting of August 21, 2001 FROM: Ted Webber Name Admin Services Admin Services Division Department ACTION REQUIRED: A resolution authorizing additional continuing services from Stephens Inc. for Stephens Inc. to provide continuing financial advisory services on the Wastewater System Improvements project financing. The rate per hour is $225.00 and is restricted to certain identified individuals. The authorization requested is not to exceed $15,000.00 and will be paid from the project budget. COST TO CITY: NTE $15,000.00 Cost of this Request Wastewater System 561,915.00 Improvements Category/Project Budget Category/Project Name 5400-5700-5314.00 509,168.00 Account Number 98047 Project Number Funds Used To Date Program Name 52,747.00 Water & Sewer Remaining Balance Fund BUDGET REVIEW: Budgeted Item _ Budget Adjustment Attached Eudgbt Manager Administrative Services Director CONTRACT/G/LEASE REVIEW: c GRANTING AGENCY: fiet110 AccoLng Manager al Dat C794g A Internal rnal uditotor Date C' y AttorneyDate ADA Coordinator tS Date bi Purchasing Officer Date Grant Coordinator Date STAFF RECOMMENDATION: Staff recommends approval of agreement. Division Head Department Director Adm ni:y ative Services Director Mayo Date Date Cross Reference New Item: Yes No Prev Ord/Res #: Orig Contract Date: Orig Contract Number: 1—i 3 FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE • To: Ted Webber, Administrative Services Director From: Heather Woodruff, City Clerk Date: August 27, 2001 Attached is a copy of the resolution authorizing additional funding for financial advisory services from Stephens Inc. in connection with the Wastewater Treatment Plant project. The original will be microfilmed and filed with the City Clerk. cc: Nancy Smith, Internal Audit Mc Cil