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HomeMy WebLinkAboutOrdinances Book 12, Page 532, No Ordinance Number532 j AN ORDINANCE PROVIDING FOR THE ACCEPTANCE OF THE OFFER OF STEIN BROS. & AND BANKERS BOND CO. 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 AND EXTENSION TO THE SEWER 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 BANKERS BOND CO. TO THE CITY OF PADUCAH DATED SEPTEMBER 25TH, 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: I SECTION 1. That the City of Paducah employ Stein Bros. & Boyce and Bankers Bond Co. 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 $ewer 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 Bankers Bond Co. to the City of Paducah on September 25, 1951, which letter constitutes the agreement between the parties thereto and is in words and figures as follows, to -wit: "September 25, 1951 Hon. Stuart Johnston, 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 in connection with the proposed improvements and extensions to your Sewer System which are badly needed. You will require financial advice and legal aid in carrying out this program and our firms have had long years of experience in planning similar types of financing. We agree to immediately assign qualified personnel to develop and submit in writing for your choice one plan covering expenditures for improvements confined to within the corporate limits, and another plan whereby areas beyond the corporate limits might be served. We agree to assist your Consulting Engineers in every way possible in the preparation and filing of your application for assistance under the Defense Housing Act and when it is determined as to what financial aid will be available, we will cooperate with your Consulting Engineets se to the suggested sewer charges, bond maturity schedules, callable provision and all other details necessary for your approval. Any plan submitted will be given careful consideration not only rrom a legal standpoint, but also from a financial standpoint. 533 We will retain Messrs Chapman & Cutler of Chicago, Illinois, a nationally recognized firm of municipal bond attoryets who will be available to pass on any legal matters and who will prepare all rate and bond ordinances, resolutions and other necessary documents. They will also prepare any legislation that may be necessary. In formulating the program, we will devote our best efforts, cooperate with your officials and your Consulting Engineers in working out the best financial ar- rangement and give the City our best advice upon financial markets, coupon rates, maturities, redemption terms and pay the expense of publishing the notice of sale or sales in the Bond Buyer, Courier Journal and all other details so that although we will unque stionably patticipate in the bidding for the purchase of the bonds at the public sale or sales, every effort will be made to formulate the plan of financing to the best interest of the City Government. We will prepare and furnish the City with a complete Prospectus covering the proposed bond issue or issues giving all pertinent information regarding the City of Paducah and the Sewer System for distribution by the City to any interested prospective bidders for the bond issue or issues. We agree to contact the statistical agencies and to furnish them with all available information and to exert our best efforts to get a statistical rating assigned to the bonds which will make them most acceptable to investors. We propose that the City shall have the right to issue additional bonds over and above those authorized ranking on a parity or mutually agreeable terms, per- taining 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 cpst 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 attorney's fees for preparing the bond issue or issues and for the final approving legal opini for advertising of the bonds at public sale or sales, 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 we, as Fiscal Agents, shall be pai a fee on the following scale on bonds sold at public sale or sales. fee of 1% of principal amount on bonds issued up to and including $1,000,000 fee of 3/4 of 1% of principal amount on next $1,001,000 to $2,000,000 inclusio fee of 1/2 of 1% of principal amount on over $2,000,000 Eac h issue of bonds shall be treated separately and the minimum fee in each case shall not be less than $5,000. You may advertise the bonds to be sold at not less than par and accrued interes and it will be specified that bidder can name any coupon rate or rates in multiples of 1/$ or 1/4 of 1%. The city will have the right to reject any or all bids at the public sale and it will 'so state in the Notice of Bond Sale. The fees referred to above shall be paid simultaneously with receipt by the City from the proceeds of th sale of the bonds was dhsll 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 City Commissioners in working out the details of the program, as well as your Consulting Engineers. As a member of your business community, employing local citizens, we have a str interest in assisting the city and we are constantly available to furnish any infor mation or assistance. The City Commissioners of the City of Paducah shall be under no obligations to advance any funds for the costs or expenses in this undertaking of the Fiscal Agents, as hereinbefore set out, nor shall this agreement be construed as in any manner committing or obligating the City of Paducah to issue any bonds in connectio herewith, and if Federal aid is obtained, this will reduce the amount of the bonds to be issued. Respectfully submitted. STEIN BHOS. & BOYCE THE BANKERS BOND CO. STEIN BROS. & BOYCE By Harold L. Sullivan Harold L. Sullivan." 534 ACCEPTED BY RESOLUTION Mayor, City of Pad--uc`aF ATTEST I OM 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 fprm in w#1ch it shall be put upon its final passage, and this ordi- nance shall be in full force and effect from and after its adoption. or Introduced by the Board of Commissioners September 25, 1951 Passed by the Board of Commissioners October 2, 1951 Recorded by Sarah Thurman, City Clerk, October 2, 1951.