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HomeMy WebLinkAboutOrdinances Book 12, Page 513, No Ordinance Number513 AN ORDINANCE PROVIDING FOR THE ACCEPTANCE OF THE OFFER OF STEIN BROS. & BOYCE AND J. J. B. HILLIARD & SON OF LOUISVILLE, KENTUCKY, TO ACT AS FISCAL AGENTS OF THE CITY OF PADUCAH IN CONNECTION WITH THE ISSUANCE OF REVENUE BONDS TO FINANCE THE COST OF"IMPROVEMENTS TO THE WATER WORKS SYSTEM; AUTHORIZING STUART JOHNSTON, THE MAYOR OF THE CITY OF PADUCAH TO SIGN FOR AND ON BEHALF OF THE CITY OF PADUCAH THE LETTER WRITTEN BY STEIN BROS, & BOYCE AND J. J. B. HILLIARD & SON TO THE CITY OF PADUCAH AND THE CITY OF PADUCAH WATER WORKS COMMISSION DATED MAY 3rd, 1951, AND APPROVING THE TERMS AND CONDITIONS SET FORTH IN SAID LETTER AS CONSTITUTING SAID CONTRACT OF EMPLOYMENT: WHEREAS, it will be necessary for the City of Paducah to employ a fiscal agent to assume the responsibility for the issuance of revenue bonds for the financing of that part of the cost of said project which said city shall be re- quired to incur; NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY: SECTION 1. That the City of Paducah employ Stein giros, & Boyce and J.J.B. Hilliard & Son of Louisville, Kentucky, to act as its fiscal agent in all matters pertaining to the issuance of revenue bonds to finance that part of the cost of constructing the aforesaid improvements to the Water Works System which the City of Paducah will be required to incur, and Stuart Johnston, the Mayor of said City, whose signature shall be attested by Sarah Thurman, the City Clerk, is hereby auth- orized and empowered for and on behalf of the City of Paducah to subscribe his name as such mayor to a certain letter written by Stein Bros. & Boyce and J. J. B. Hilliard & Son to the City of Paducah Water Works Commission and the City of Paducah on May 3rd, 1951, which letter constitutes the agreement between the parties thereto and is in words and figures as follows, to -wit: "May 3rd, 1951 Chairman and members of Waterworks Commission Mon. Mayor and City Commissioners City of Paducah, Kentucky Gentlemen: We have been informed that you desire to employ firms such as ours to act as your Fiscal Agents to handle the financing of the proposed improvements to your Waterworks system. You will need financial advice and legal aid in carrying out this pro- gram. The undersigned firms have had long years of experience in planning simi- lar types of financing. We hereby propose that if we are employed as Fiscal Agents for your City that we will retain Chapman and Cutler of Chicago, Illinois, a nationally recog- nized firm of municipal bond attorneys, who will prepare for you all Ordinances, resolutions, and other papers necessary for the issuance of the required amount of new Waterworks Revenue Bonds. We will also prepare and furnish the City with a complete Prospectus covering the proposed bond issue giving all pertinent information regarding the City of Paducah and the Waterworks System for distribution by the City to any interested prospective bidders for the bond issue. 514 In formulating the program, we will devote our best efforts, cooperate with your Superintendent, Miss Lois Sutherland, and your engineers in working out the best financial arrangement and give the City our best advice upon finan- cial markets, coupon rates, maturities, redemption terms and pay the expense of publishing the notice of sale, and all other details so that although we will un- questionably participate in the bidding fof the purchase of the bonds at the public sale, every effort will be made to formulate the plan of financing to the best interest of the Waterworks Commission and the City Government. We propose that the City shall have the right to issue additional bonds over and above those authorized ranking on a parity on mutually agreeable terms, pertaining to adequate earnings coverage and other necessary features. As soon as possible after the completion of the public sale of any and all bonds, we will furnish printed bond forms to the City Officials for execution. We will pay the cost of these printed bond forms, as well as proper and reasonable expenses incident to the actual execution of the bonds. It is distinctly understood that we are to pay the cost of all the attor- ney's fees for preparing the bond issue and for the final approving legal opinion, for advertising of the bonds at public sale, for the printing of the bond forms, and other expenses incident to the preparation and issuance of the proposed bond issue. For the above outlined services and expenses, as Fiscal Agents, it is agreed that we shall be paid a fee in the amount of 2% of the par value of the new Waterworks Revenue Bonds sold at public sale. You may advertise the bonds to be sold at not less than par and accrued interest, and that it be specified that any bidder can bid any coupon rate or rates in multiples of one fourth of 1%. The fee referred to above shall be paid simultaneously with receipt by the City from proceeds of the sale of the bonds, and will be paid based only on the actual amount of bonds sold and delivered. If no bonds are sold and delivered by the City,you are to owe us nothing. We and our attorneys will be available at any time for giving service or to meet with the Waterworks Commission and City Commissioners in working out the details of the program, as well as your Engineers and Superintendent. The City Commissioners of the City of Paducah shall be under no obli- gations to advance any funds for -the costs or expenses in this undertaking of the Fiscal Agents, as hereinbefore set out, nor shall this letter agreement be con- strued as in manner committing or obligating the City of Paducah to issue any revenue bonds in connection herewith, and if Federal aid is obtained, this will reduce the amount of bonds to be issued. Respectfully submitted, STEIN BROS. & BOYCE J. J. B. HILLIARD & SON ACCEPTED BY RESOLUTION Edwin J. Paxton By Harold Sullivan Chairman, Waterworks Commission ACCEPTED BY RESOLUTION Stuart Johnston Mayor, City of Paducah ATTEST Sarah Thurman City Clerk SECTION 2. This ordinance shall be introduced at a regular meeting of the Board of Commissioners and remain on file one week for public inspection in the completed form in which it shall be put upon its final passage; and this ordinance shall be in full force and effect from and a.fyer its adoption. Introduced by the Board of Commissioners August 14, 1951 Passed by the Board of Commissioners August 28, 1951 Recorded by Sarah Thurman, City Clerk, August 28, 1951.