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HomeMy WebLinkAboutOrdinances Book 18, Page 8, No Resolution NumberA RESOLUTION ACCEPTING THE PROPOSAL OF J. J. B. HILLIARD, W. L. LYONS, INC. TO ACT AS FISCAL AGENTS FOR THE CITY OF PADUCAH, KENTUCKY, IN CONNECTION WITH THE ISSUANCE OF SEWER REVENUE BONDS BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY: SECTION 1. That the proposal of J. J. B. Hilliard, W. L. Lyons, Inc. to act as Fiscal Agents of the City of Paducah, Kentucky, in connection with the issuance of sewer revenue bonds be accepted, such proposal being in words and figures as follows: "January 9, 1973 Honorable Mayor and City Commissioners Attention: William Howerton, City Manager Paducah, Kentucky Dear Mr. Howerton: We have discussed with your Consulting Engineers their cost estimate, and although the actual requirements will be determined by construction bids, it appears that the City will need to issue approximately $500,000 sewer revenue bonds and that experienced fiscal agent's services would be required in connection therewith. We hereby agree to act as your fiscal agent covering the project referred to above and, in such capacity, we would do the following at our expense: (a) We would immediately make available to you the experience and facilities of our firm as well as the services of recognized municipal bond counsel retained at our expense, and together cooperate with you in developing the plans for financing the project in the manner most favorable to the City and the Sewer system. (b) We would have our attorneys prepare all minutes, resolutions, notices, ordinances, and other necessary legal documents incident to the authorization, sale, issuance and delivery of the bonds. (c) We would assist and advise you as to bond maturities, call prices, bidding terms, all other important bond features and the timing of your sale. (d) We would assist, advise you and pay for the advertising of the Notice of Sale of bonds in the Paducah Sun -Democrat, the Louisville Courier -Journal and the New York Bond Buyer when you are ready to offer the bonds at public sale. The publication of the Bond Ordinance required by law will be paid by the City or from the bond proceeds. (e) We would prepare and distribute an official prospectus to interested bidders well in advance of the sale of your bonds in an effort to attract the widest interest possible when and as the bonds are put up for sale at public bidding. It is further agreed that you will furnish without expense to us upon our request or upon the request of our bond counsel all data and information, including description of the property and any related title information, required to properly and legally issue the bonds, and cooperate with the Fiscal Agent towards sale and delivery of the bonds. The final determination to issue the bonds will, of course, be your decision. (f) We would supply the legal opinion of bond counsel when and as issued by them, which opinion would accompany the bonds. (g) We would supply the printed steel engraved blank bond forms. (h) We would arrange for the delivery of the bonds and pay the expenses of a City Official to sign the bonds when they are ready for delivery in a city so specified for delivery in the Official Notice of Sale. (i) We and our attorneys would assist, advise and work with you for the purpose of developing the best plan possible for a sound and marketable issue of bonds. We shall use our best efforts to prepare the issue so as to obtain for you the lowest interest cost obtainable in the light of market conditions as they exist at the time the issue is offered for sale. In the meantime, services of our organization as well as those of our attorneys, will be made available to you. The compensation to be paid to us, as well as any other necessary expenses that might be incurred by you in connection with such bond issue, will be paid out of the proceeds of the bonds. We would advise with you as to the suitability of ratings on the bonds, and if it is your decision to seek bond ratings, we will compile and submit the required information to the rating agencies and lend our best efforts in this regard. We would reserve the right to bid or to form an account to bid for the bonds proposed herein when and if they are formally offered at public sale. In consideration of the services rendered and the risk of the expenses to be assumed by us, it is agreed that we shall be paid out of bond proceeds a fee based on the par value of the bonds sold in one issue in connection with the above project, said fee to be according to the following schedule to be paid to us when and as bonds are sold and delivered: 1% of the par value of bonds sold or a minimum fee of $5,000 whichever is greater. If the project should be abandoned and no bonds are issued, we agree to absord all the expenses incurred by us to that time and you would owe us nothing. This agreement covering the project outlined in paragraph one will run one year from the date of your acceptance hereof, and should the bonds not have been issued by that time, will be auto- matically renewed from year to year thereafter unless terminated by either party at any time for any reason upon sixty days' written notice. If this proposal is acceptable to you, please so indicate by appropriate acknowledgement below and return two copies for our files. Respectfully submitted, J.J.B.Hilliard, W. L. Lyons, Inc. By /S/ Harold L. Sullivan__ _ Harold L. Sullivan HLS:hp The foregoing proposal was accepted by Resolution adopted by the Board of the City of Paducah, Kentucky on _ _ day of 1973. ATTEST: City Clerk (SEAL) " Chairman 10 SECTION 2. The Mayor and City Clerk be, and they are hereby, authorized to accept the proposal set out in Section 1 on behalf of the City of Paducah, and are further authorized to execute all documents necessary to carry out the purposes and intent of said proposal. SECTION 3. This resolution shall be in full force and effect from and after its adoption. 47�- Ota yor Passed by the Board of Commissioners January 16, 1973 Recorded by Sarah Thurman, City Clerk, January 16, 1973.