HomeMy WebLinkAbout3-14 RESOLUTIONRESOLUTION NO. 03-14
A RESOLUTION TO APPROVE A CONTRACT WITH STEPHENS, INC. TO
APPROVE BOND UNDERWRITING AND RELATED SERVICES AS
NEEDED THROUGH DECEMBER 31, 2018
WHEREAS, Stephens, Inc. has provided excellent bond underwriting and related
services for various bonds issued by the City of Fayetteville for the last several years; and
WHEREAS, a City selection committee reviewed applications and interviewed potential
bond underwriting firms prior to selecting Stephens, Inc. as bond underwriter subject to City
Council approval.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves
the selection of Stephens, Inc. as the City's Bond Underwriter and approves the contract with
Stephens, Inc. to serve as the City's Bond Underwriter through December 31, 2018.
PASSED and APPROVED this 7th day of January 2014.
APPROVED:
ATTEST:
By:C-2u.
SONDRA E. SMITH, City Clerk/Treasurer
Marsha Hertweck
Submitted By
City of Fayetteville Item Review Form
2013-0221
Legistar File Number
1/7/2014
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
Action Required:
Finance
Department
Approval of a five year contract with automatic annual renewals with Stephens, Inc. to provide
underwriting services for the City during the bond issuance process.
Does this item have a cost?
Yes
Cost of this request
Account Number
Project Number
Budgeted Item?
No
Category or Project Budget Program or Project Name
Funds Used to Date Program or Project Category
$0.00
Remaining Balance
Budget Adjustment Attached?
Fund Name
Previous Ordinance or Resolution #
Original Contract Number:
Comments:
The cost of this service is payable from the proceeds of the successful sale of the City's bonds.
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THE CITY OF FAYETTEVILLE, ARKANSAS
To: Mayor Lioneld Jordan and Fayetteville City Council
Thru: Paul Becker, Finance Director
From: Marsha Hertweck, Accounting Director.
Date: December 10, 2013
Subject: Bond underwriting services
Recommendation
Approval of a five year contract, with automatic annual renewals, with Stephens, Inc. to
provide underwriting and related services for the City during the bond issuance process.
Discussion
The City occasionally issues bonds to provide funding for City Council approved projects
and there is a need for underwriting services in connection with the bond issuance
process. The City's selection committee reviewed and interviewed several firms and
selected Stephens, Inc., with Dennis Hunt being the lead staff member for the City's
projects.
Budget Impact
The cost of this service is payable from the proceeds of the successful sale of the City's
bonds.
RESOLUTION NO.
A RESOLUTION TO APPROVE A CONTRACT WITH STEPHENS, INC. TO
APPROVE BOND UNDERWRITING AND RELATED SERVICES AS
NEEDED THROUGH DECEMBER 31, 2018
WHEREAS, Stephens, Inc. has provided excellent bond underwriting and related
services for various bonds issued by the City of Fayetteville for the last several years; and
WHEREAS, a City selection committee reviewed applications and interviewed potential
bond underwriting firms prior to selecting Stephens, Inc. as bond underwriter subject to City
Council approval.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves
the selection of Stephens, Inc. as the City's Bond Underwriter and approves the contract with
Stephens, Inc. to serve as the City's Bond Underwriter through December 31, 2018.
PASSED and APPROVED this 7th day of January 2014.
APPROVED: ATTEST:
By: By:
LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer
CONTRACT
The City of Fayetteville and Stephens, Inc. agree as follows:
(1) The City of Fayetteville desires to hire Stephens, Inc. to provide bond
underwriting and related services during the term of this agreement.
Stephens, Inc. was selected by a City of Fayetteville selection committee after
a competitive Request for Proposals (13-15) process. Although Stephens,
Inc.'s entire Public Finance Department was considered during this selection
process, the City's excellent experience working with Senior Vice President
and Manager Dennis Hunt was a major component of the City's selection of
Stephens, Inc. as its Bond Underwriter.
(2) The City of Fayetteville agrees to negotiate with Stephens, Inc. to
determine the proper and fair Underwriting Discount (which will usually
fall within the proposed $9.50 - $10.50 per $1,000.00 bond) for each proposed
bond issue. The Underwriter's Discount may exceed the $9.50 - $10.50 range
for more complex bond issues which require increased time and effort to
plan and execute. The Underwriters Discount to be paid from bond sale
proceeds will be the only payments made by the City of Fayetteville for
Stephens, Inc.'s Bond Underwriting and related services.
(3) Stephens, Inc. agrees to continue its services to the City of Fayetteville
as its Bond Underwriter for its proposed Underwriting Discount and to
negotiate with the City for. each bond issuance concerning the fair amount
of Underwriting Discount for such bond issuance. Stephens, Inc. agrees not
to charge further fees (such as Underwriter's Counsel, etc.) without prior
written agreement of the City of Fayetteville.
(4) Stephens, Inc. agrees that its fees shall only become payable and be
paid from proceeds from the successful sale of the proposed bond issuance
by the City of Fayetteville. If, for whatever reason the proposed bonds are
not issued or sold, Stephens, Inc. agrees to make no claim for compensation
for its services provided in anticipation of the issuance and sale of
Fayetteville's bonds.
1
TERM OF THIS CONTRACT
This contract shall be effective from the date of its approval by both
parties until Decennber 31, 2018. However, if Senior Vice President and
Manager Dennis Hunt no Longer is the primary assigned person for
Fayetteville's proposed bond issues, the City of Fayetteville may terminate
this contract with thirty (30) days written notice to Stephens, Inc. and engage
in another Request for Proposals selection process. Furthermore, both
parties have a right to terminate this contract upon three months' written
notice to the other party.
In agreement with all the terms and conditions above, we sign
below:
STEPHENS, INC.
By:
SAM' , ,e. /LSD'
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Print Name and Title
1.415(13
Date
CITY OF FAYETTEVILLE
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By:
Sondra E. Smith
City Clerk/Treasurer
D/-09
Date