HomeMy Public PortalAboutORD10531 BILL NO w lMw►+ �(
SPONSORED BY COUNCILMAN �G -t
ORDINANCE NO. D�
AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE AN AGREEVM WITH STEARN BROTHERS &
COMPANY FOR SERVICES IN CONNECTION WITH THE ADVANCE REFUNDING OF
SEWER SYSTEM REVENUE BONDS .
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF JEFFERSON, MISSOURI,
AS FOLLOWS:
Section 1. The Mayor and City Clerk of the City of Jefferson
are hereby authorized to execute an agreement with Stearn Brothers
& Company for services in connection with the advance refunding
of sewer system revenue bonds .
Section 2 . The agreement shall be substantially the same in
form and content as Exhibit A attached hereto.
Section 3 . This Ordinance shall be in full force and effect
from and after the date of its passage and approval. rr7�5
Passed /�-� ' �/ Approved
Pre s ' ing Officer J Mayor
ATTEST:
'a,
City Clerk
S Reffin- 8roer & Ca.
INVESTMENT BANKERS
11W Main Street,City Center Square. Suite 2200.
RO. Box 13496. Kansas CitN. Missouri 64199, Phone 816-471.6460
Honorable Mayor and City Council
Jefferson City, Missouri
Re: Sewer System Revenue Bonds - Advance Refunding Program
Mayor and Council Members:
The City of Jefferson City, Missouri has outstanding Sewer System Revenue
Bonds. As a result of the development of an innovative financing technique
since the date of the original financings, it is possible to refund these
outstanding Revenue Bonds and thereby reduce the City's debt service costs and
achieve other available benefits for the City.
Current Department of Treasury and Internal Revenue Service rules and
regulations make it possible to refund in advance of their stated maturity all
of the above Revenue bonds.
Such a refunding may be accomplished by the issuance of Refunding Bonds,
the proceeds of such bonds being used to purchase United States Government
obligations which are deposited in an irrevocable trust escrow account in such
amounts, maturities and interest rates so as to provide a sum sufficient to
pay the principal of and interest on the presently outstanding bonds as and
when they mature. The new issue of Refunding Bonds then becomes an obligation
of the City.
Stern Brothers & Co. hereby submits this proposal to assist you in
structuring, marketing and closing such refunding, whereby we will:
1 . Proceed immediately, utilizing computer technology, with an
investigation and study for the purpose of determining the feasibility of
refunding a portion or all of the above-referenced bonds. Considerations
of feasibility shall include, without limiting, (a) public purpose
benefits, (b) marketability, (c) legality, and (d) future financing
requirements. Any plan proposed shall contain a description and examples
of any debt reduction, restructured debt amortization, savings or other
benefits to be derived by such plan.
2. Consult with the City and/or their appointed representatives for the
purpose of evaluating the benefits of any refunding plan consistent with
long range financial planning goals.
3. At such time as you shall decide to proceed with the necessary legal
proceedings, and bond attorneys are retained to perform the legal aspects
of the program, we will assemble and transmit to the bond attorneys such
data as may be required for their preparation of the necessary orders,
resolution, notices and certificates; and upon preparation thereof, will
submit such documents to the Board for appropriate action.
4. Advise you of bond market conditions, proposed bond issuances by
other issuers, and other information and economic data available to us
which might normally be expected to influence interest rates so that a
sale date for the bonds may be selected providing the most favorable
market conditions under the existing circumstances.
5. Assist you and bond counsel in preparing the contents of an Official
Statement, containing financial data and other information of the nature
and to the extent ordinarily required to comply with disclosure
requirements established by the Municipal Securities Rulemaking Board.
6. Consult and advise on municipal bond ratings and municipal bond
insurance. If determined to be necessary, assist you in making a
complete well-structured presentation of the financial plan and security
of the bonds to bond rating and credit agencies to obtain the highest
feasible rating.
7. Act as Managers of a group of investment bankers formed to underwrite
and market the City's bonds at such dates as approved by the City.
B. Execute a Bond Purchase Agreement whereby we, as Investment Bankers,
agree to purchase from the City its bonds on such terms and conditions as
mutually agreed to between the City and the Investment Bankers.
9. Assist the City in acquiring and investing U. S. Goverment securities
needed to fund the escrow.
It is understood and agreed that you and the City officials of Jefferson
City, Missouri, will cooperate with us and bond counsel in the passage of all
necessary ordinances, resolutions, and certificates required in the issuance
and delivery of the bonds.
This agreement shall terminate at the time of delivery of the bonds
covered hereby, or the elapse of eighteen months from date of your acceptance
hereof, whichever shall first occur; however, if the bonds are in the progress
of issuance for delivery beyond eighteen months, this agreement shall be
extended to the date of de'iivery. If at any time it is determined that the
financing is no longer feasible, this contract shall be dissolved and the City
shall be under no obligation to reimburse the Investment Bankers for any
expenses incurred prior to such determination.
Two copies of this proposal are submitted to you for execution. When
accepted by you, it will constitute the entire agreement between your
municipality and the undersigned for the purpose and consideration herein
specified. Your acceptance will be indicated by the signatures of the Mayor,
attested by your City Clerk, on both execution copies, and returning one
executed copy to us.
Respectfully submitted,
STERN BROTHERS & CO.
Bradford J. Max
Assistant Vice President
ACCEPTED pursuant to [st/'tP�yy�s/.p� adopted by the City Council of
Jefferson City, Missouri, on the day of � �-3..�y 1985.
or
ATTEST:
City W i erk