14153ORDINANCE NO. 14,153
AN ORDINANCE FIXING AND IMPOSING THE AGGREGATE
AMOUNT OF FEES, CHARGES AND SPECIAL TAXES TO
BE PAID THE CITY OF LITTLE ROCK, ARKANSAS BY
ARKANSAS POWER AND LIGHT COMPANY AND THE
METHOD OF PAYMENT THEREOF; AMENDING SECTION 4
OF ORDINANCE NO. 11683; DECLARING AN EMERGENCY
AND FOR OTHER PURPOSES.
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WHEREAS, Arkansas Power & Light Company (hereinafter
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�4 referred to as "Power Company ") is duly authorized by franchise
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,q' agreement heretofore authorized and entered into by the City
aroi to construct, operate, maintain and extend an electric system
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4) and to sell, furnish, transmit and distribute electric power
and energy in the City of Little Rock, Arkansas (hereinafter
referred to as "City "), to the City of Little Rock and to
the citizens residing therein; and
WHEREAS, the Power Company is now providing electric
service to the City and its inhabitants and occupying the
streets, alleys and other public property of the City pursuant
to said franchise agreement, which provides for certain pay-
ments in lieu of all other taxes, fees, charges, impositions,
and licenses, except general taxes, and further provides that
if any special taxes, fees, charges or licenses are assessed
or imposed upon or against the Power Company that the obliga-
tions for payments under said franchise agreement shall
immediately terminate; and
WHEREAS, the City requires additional revenues to
provide municipal functions and services and desires to increase
the payments of special taxes and charges paid by the Power
Company; and
WHEREAS, that portion of the City revenue derived
from the three -mill county road tax is no longer available
to the City and
WHEREAS, the City recognizes and accepts the purposes
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and results of decisions of the Arkansas Public Service Com-
mission and the Arkansas Supreme Court requiring that the
charges for service by a utility to customers in the City
be adjusted to adequately reflect any additional amounts of
taxes imposed by the City in excess of a standard level paid
in other municipalities to avoid discrimination among customers
of the utility.
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIREC-
TORS OF THE CITY OF LITTLE ROCK, ARKANSAS.
Section 1. The manufacture, sale, furnishing, trans-
mission and distribution of electric power and energy by the
Power Company within the City is hereby declared to be a
special privilege and for such privilege the Power Company
shall pay to the City a special tax, charge or imposition,
as follows:
For the year 1982 the Power Company shall pay
in equal monthly installments beginning
January 1982, the sum of Three Million, Eight
Hundred Thirty -One Thousand and Eighty Dollars
($3,831,080.00).
Section 2. Nothing herein contained shall be cons-
strued as altering or amending any of the rights or obligations
of either the City or the Power Company as provided in the
existing Franchise Agreement between the City and the Power
Company except that Section 9 of the Power Company's Franchise
Agreement as provided for by Ordinance No. 1168.3 is hereby
amended to the extent that it is in conflict with this Section.
Section 3. All ordinances and parts of ordinances
in conflict with the provisions of this ordinance are hereby
repealed.
Section 4. It is hereby found by the Board of
Directors that there is an urgent need for additional revenues
for the City. Therefore, an emergency is declared to exist,
and this ordinance being necessary for the preservation and
advancement of the public peace, health and safety shall be
in full force and effect from and after its passage.
PASSED: November 3, 1981
ATTEST : APPROVED
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ARKANSAS POWER & LIGHT COMPANY
POST OFFICE BOX 551 LITTLE ROCK, ARKANSAS 72203 (501)371-4000
November 3, 1981
Mr. Mahlon Martin
City Manager
City of Little Rock
City Hall
Little Rock, AR
Dear Mahlon:
In conversation with Jack Murphey, it is our understanding
that you propose to submit an ordinance at today's board meeting
fixing our franchise payments for the year of 1982. It is also
our understanding that you agree to a "lump sum" amount in this
ordinance.
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With the foregoing understanding; our company also agrees to
furnish you with our total revenue figures received for 1981 at
the end of this calendar year. This is being done in order for
the City to establish a "lump sum" amount which would reflect 5.2%
of our total revenues before application of any adjustment clauses.
These figures should be available sometime within the first ten
days of January and we would anticipate a revised ordinance to
reflect our actual revenue collections.
BL:dr
Sincerely,
'0 re G
Bill Looney
District Manager
MEMBER MIOOLE SOUTH UTILITIES SYSTEM