The Conway City Council voted Tuesday to wait until its Sept. 25 meeting before voting to enter an agreement to settle at $28,456 with JP Morgan Chase and Co.
The city is one of the affected entities in a $65.5 million settlement the banking corporation has offered at the close of a three year investigation by state attorneys general.
According to the settlement documents, the City of Conway is due restitution after certain JPMC employees participated in an illegal scheme with brokers and other providers with whom they had relationships to put their own mutual financial interests ahead of those of the municipal bond derivative clients they represented.
City attorney Mike Murphy said Tuesday between 2001 and 2005, one of the city’s bond issues was altered by JPMC.
"During this time the City of Conway was identified as an eligible party to enter into this settlement," Murphy said.
According to Murphy, JPMC employees were "rigging bids and engaging in anti-competitive conduct" which caused bond issues to have a lower yield.
Council members told Murphy they wanted more information on the origin of the figure before agreeing to settle after Murphy said the settlement ensures the city will not pursue rights to sue JPMC for any additional restitution in the settlement time period.
According to Murphy, the city would waive its rights to participate in a $44 million class action lawsuit in which he says there are "several public entities involved."
The council approved a $9,000 proposal from Rik Sowell Architects, Inc. for architectural services for prototype restrooms to be used in the City of Conway park system. The fixed fee covers men’s and women’s restroom designs as well as a design containing concession, bike rental or other facilities.
The prototype can be used to construct multiple free-standing toilet facilities in Conway’s parks.
In other business the council:
Approved a certified lien against property located at 14 Morningside Drive for incurred expenses by the City of Conway for mowing and maintenance.
Approved an order for the condemnation and cleanup of property located at 445 Louise Lane. The house at the property was damaged in a fire.
Approved an ordinance accepting the annexation of land located to the west of the termination of Collins Drive with a zoning of R-1.
Approved an annual contract for five Conway Police Department officers to be stationed at Conway Public Schools as school resource officers. Half of each officer’s salary is paid by Conway schools.
Waived bids on the purchase of a sanitation department dozer in order to purchase equipment already rented from J. A. Riggs Rental Services. The vendor will apply 80 percent of rental payments toward the purchase of the dozer. An additional $100,000 for the equipment will be funded by the 2012 Sales and Use Tax Bond.
(Staff writer Courtney Spradlin can be reached by email at firstname.lastname@example.org or by phone at 505-1236. To comment on this and other stories in the Log Cabin, log on to www.thecabin.net. Send us your news at www.thecabin.net/submit)