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HomeMy WebLinkAbout12769RESOLUTION NO. 12,769 A RESOLUTION AUTHORIZING THE OFFERING OF UP TO $16,000,000 OF CITY OF LITTLE ROCK, ARKANSAS SEWER REVENUE BONDS, SERIES 2008; AUTHORIZING THE EXECUTION OF A BOND PURCHASE AGREEMENT; AND PROVIDING FOR OTHER MATTERS IN CONNECTION THEREWITH. WHEREAS, the City of Little Rock, Arkansas (the "City ") owns a sewer system (the "System "), which is operated by the Sewer Committee of the City (the "Committee "); and WHEREAS, the Committee has determined that betterments and improvements to the System (the "improvements ") are necessary in order to make the services of the System adequate for the needs of the City; and WHEREAS, the Committee can finance all or a portion of the costs of the improvements by the issuance of Sewer Revenue Bonds in the maximum principal amount of $16,000,000 (the "bonds "); and WHEREAS, Morgan Keegan & Company, Inc. and Crews & Associates, Inc. (collectively, the "Underwriter ") have been selected by the Committee to underwrite the bonds; and WHEREAS, the City intends to negotiate with the Underwriter for the sale of the bonds pursuant to a Bond Purchase Agreement between the Purchaser and the City (the "Purchase Agreement "), which has been presented to and is before this meeting; and WHEREAS, the form of the Preliminary Official Statement offering the bonds for sale (the "Preliminary Official Statement ") has been presented to and is before this meeting; and WHEREAS, Friday, Eldredge & Clark, LLP has been selected by the Committee to act as Bond Counsel in connection with the authorization, sale and issuance of the bonds; and WHEREAS, upon the advice of the Committee, the Board of Directors is now prepared to authorize the offering of the bonds for sale by the Underwriter, to authorize the execution and delivery of the Purchase Agreement and to approve the Preliminary Official Statement; NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the City of Little Rock, Arkansas: Section 1. That the Underwriter is hereby authorized to offer the bonds for sale on such terms and conditions as may be recommended by the Underwriter and the Committee. Section 2. Following the offering of the bonds, the Mayor is hereby authorized to execute and deliver the Purchase Agreement for and on behalf of the City so long as (a) the true interest cost on the bonds (after taking into account underwriters' discount and original issue premium or discount, if any), is not greater than 6.5 %, (b) the weighted average maturity of the bonds (taking into account mandatory sinking fund redemption, if any) is not greater than 20 years, (c) the bonds mature not later than October 1, 2038, and (d) the underwriters' discount is not greater than 1.0% of par. Section 3. That the forms of Preliminary Official Statement and Purchase Agreement, substantially in the forms exhibited to and before the Board of Directors at the meeting at which this Resolution is adopted, are hereby approved and the Underwriter is hereby authorized to use the Preliminary Official Statement in connection with the sale of the bonds. Section 4. The officials of the City are authorized to cooperate with the Underwriter and Friday, Eldredge & Clark, LLP, as Bond Counsel, in the offering and sale of the bonds and are further authorized to execute such writings and take such actions as may be appropriate to the offering of the bonds. Section S. The Mayor is hereby authorized to "deem final" for purposes of Rule 15c2 -12 of the Securities and Exchange Commission, the Preliminary Official Statement.,; ADOPTED: October 7, 2008. Mark Sto N nay Wood City Clerk Approved as to form: ,e_ Tom Carpenter, C' y Attorney a, Mayor 2