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HomeMy WebLinkAboutOrdinances Book 14, Page 819, No Resolution Number819 A RESOLUTION ACCEPTING THE PROPOSAL OF THE KENTUCKY COMPANY AND STEIN II BROS. & BOYCE TO ACT AS FISCAL AGENTS OF THE CITY OF PADUCAH, KENTUCKY, IN CONNECTION WITH THE ISSUANCE AND SALE OF REVENUE BONDS FOR THE EXTENSION AND IMPROVEMENT OF THE SEWER SYSTEM OF THE CITY; SETTING FORTH THE TERMS AND CONDITIONS OF SUCH PROPOSAL AND AUTHORIZING THE MAYOR TO ACCEPT SAME ON BEHALF• OF THE CITY i BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY: SECTION 1. That the proposal of The Kentucky Company and Stein Bros. & Boyce to act as Fiscal Agents of the City of Paducah, Kentucky, in connection with the issuance and sale of revenue bonds for the extension and improvement of the sewer system of the city, be accepted, and that the Mayor be, and he is" hereby, authorized to accept such proposal on behalf of the City, which proposal is in words and figures as follows: i "Honorable Mayor and City Commissioners, Paducah, Kentucky j Gentlemen: "We are advised that you propose to issue sewer revenue bonds in an amount approximating $2,600,000 covering a sewer construction program, more generally described in the Master Plan Report, Sanitary, Storm & Combined Sewers, Paducah, Kentucky, prepared by Burns & McDonnell Engineering Compa "Having had wide experience in acting as fiscal agents and financial con- sultants to cities, counties and other political subdivisions, and the Commonwealth of Kentucky in the issuance of many types of bonds, we are familiar with the management requirements and procedures and can best be employed to properly present and prepare a bond issue for sale in order to obtain the most advantageous interest cost for the City of Paducah. Therefore, we propose that you employ us as your fiscal agents and financi, consultants for the above described bond issue on the following terms and conditions: 1. We will employ nationally recognized municipal bond counsel who will prepare the necessary legal documents, including resolutions, ordinances and other certificates in the proper form and sequence so that the bonds will be legally issued and carry the required legal opinion. 2. We will prepare a prospectus describing these bonds and circulate copies to all prospective buyers and bidders prior to the time of sale. 3. We will furnish all the national rating services with all pertinent information regarding the City of Paducah, and particularly this project, so that the highest possible bond quality rating will be obtained. 4. We will cooperate with the engineers employed by the City to arrange a schedule of rates and charges to produce revenues II sufficient to make equitable distribution of the cost of the operation of this project, maintain it is good condition, amortize the debt, and make other cash flow studies to support this bond issue. 5. We will have the bonds prepared and lithographed in the ordinary and normal course of procedute, meeting specified requirements. 6. Expenses incidental to the issuance of these bonds are customarily assumed and paid by the Fiscal Agents; but we wish to point out that the same are distinguishable from other expenses incident to advertisement for construction contracts, proceedings relating to the establishment of prevailing wages, and litigation of any nature whatsoever, including litigation which may be necessary in the opinion of our Municipal Bond Attorneys in order to establish ples of law (as applied to the fsctual situation which we encounters here) necessary to the issuance of these bonds. I 820 Observing the distinction above pointed out, we will pay the expenses ordinarily incidental to the issuance of the bonds, including the fees and expenses of our Municipal Bond Attorneys, our own travel, telephone, and other ordinary expenses, the cost of publishing all ordinances or resolutions directly relating to the issuance of the bonds, the cost of advertising any and all public sales in accordance with the requirements of KRS Chapter 424, the cost of causing the bonds to be prepared as set forth in paragraph 5 above, and the cost of preparing and distributing the prospectus referred to in paragraph 2 above. In the event litigation is encountered, either from hostile sources or because in the opinion of our Municipal Bond Attorneys one or more doubtful questions of law should be determined by fiscal court judgment in your best interests, the same shall be at the sole expense of the City. In this connection we will cause our Municipal Bond Attorneys to confer with your own legal counsel, and in the event the City should desire that our Municipal Bond Attorneys participate in any sich litigation, the same shall be upon terms to be reached by independent agreement between the City and such attorneys and shall not be included among the expenses which we assume as your Fiscal Agents "Upon delivery of these bonds to the successful bidder, but only if and when such bonds are presented for delivery to the successful bidder, we are to be paid a sum equal to 0.410% of the total amount of bonds issued. If no bonds are ever issued, then you owe us nothing. We reserve the right to bid for these bonds at the time they are offered for sale. However, we are to be paid the above amount regardless of whether or not we bid, or whether or not we are the successful bidder. Respectfully submitted, The Kentucky Company By Stein Bros & Boyce ACCEPTED: By Mayor of the City of Paducah, Ky. 11 SECTION 2. This Resolution shall be in full force and effect from and after its adoption. Mayor Passed by the Board of Commissioners October 27, 1962 Recorded by Sarah Thurman, City Clerk, October 27, 1962.