Arkansas State System plans to refund three bonds

The Arkansas State University System will refund three bonds for a projected long-term savings of $1.2 million.

Trustees approved the refunds at their quarterly meeting Friday.

Trustee Price Gardner recused himself from the vote. Gardner is a managing partner at Friday, Eldredge & Clark in Little Rock, the law firm that serves as the counsel on the bonds.

The law firm is one of a handful the system has on retainer for different issues. The firm has counseled the system on bond issues for decades, ASU System spokesman Jeff Hankins said.

Earlier this year, Gardner requested an advisory opinion from the Arkansas Department of Finance and Administration on whether his conflict of interest represented a violation of state ethical standards.

The opinion, written by Director Larry Walther, stated that the legal services agreement between the Friday firm and the system does not violate Ark. Code Ann. 19-11-705 because Gardner had not been involved in the procurement process to hire the Friday firm. He’d also recused himself from any voting or discussion of issues related to ASU’s work with Friday. That statute prohibits state employees from participating “directly or indirectly in any proceeding” in which “the employee or any member of the employee’s immediate family has a financial interest.”

The other four trustees approved the bond refunds on a voice vote with no dissent.