14304ORDINANCE NO. 14,304
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF
SEWER REVENUE PROMISSORY NOTES OF THE CITY
OF LITTLE ROCK, ARKANSAS FOR THE PURPOSE OF
PAYING A PORTION OF THE COST TO THE CITY OF
CONSTRUCTING THE FOURCHE SEWERAGE
FACILITIES AND CERTAIN EXTENSIONS,
BETTERMENTS AND IMPROVEMENTS IN CONNECTION
THEREWITH; AUTHORIZING SALE OF THE NOTES;
PROVIDING FOR THE PAYMENT OF THE PRINCIPAL
rte., OF AND INTEREST ON THE NOTES; PRESCRIBING
r OTHER MATTERS RELATING THERETO; AND
DECLARING AN EMERGENCY.
WHEREAS, the City of Little Rock, Arkansas (the "City"),
ro
o has undertaken the construction of the Fourche Sewerage
A Facilities and certain extensions, betterments and improvements
v
ro in .connection therewith (the "Improvements "), all of which are
a
v
additions to the sewer facilities of the City (the "System");
and
WHEREAS, pursuant to the provisions of Ordinance No.
13,983, adopted and approved on February 17, 1981, the City
authorized the issuance of its Sewer Improvement Revenue Bonds,
Series 1981, in the aggregate principal amount of $6,500,000
(the Series 1981 Bonds) for the purpose of financing (together
with other funds made available through a grant to the City by
the Environmental Protection Agency of the United States
Government) the cost of the Improvements; and
WHEREAS, the Series 1981 Bonds, together with issues of
bonds dated February 1, 1966 and June 1, 1972 (collectively
referred to as the "Outstanding Bonds ") constitute a first lien
on the revenues and resources of the System; and
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WHEREAS, the Sewer Committee of the City, the membership
of which consists of Mr. Louis J. Schaufele, Chairman, Mrs.
Catherine Hamilton, Mr. Ted C. Treadway, III, Mr. Gus M.
Vratsinas and Mr. Woodson D. Walker, has determined that in
order to complete the Improvements according to the
construction schedule and to meet its contractual obligations
pursuant to construction contracts entered into in connection
therewith, it is necessary to seek authority from the City for
the issuance of up to $2,000,000 in sewer revenue promissory
notes; and
WHEREAS, the City is authorized by Act 132 to borrow money
or to obtain interim financing to construct improvements and
betterments to the System, pending receipt of moneys obtained
from federal or state governmental agencies or the subsequent
issuance of revenue bonds, by the issuance or execution of
revenue promissory notes; and
WHEREAS, to secure funds necessary to finance the
completion of the construction of betterments and improvements
to the System and the engineering, legal and other costs
incidental to the issuance of sewer revenue promissory notes
for these purposes, the City has determined to. issue sewer
revenue promissory notes, the principal and interest of which
will be secured by a second lien on the revenues and resources
of the System upon the most favorable terms to the City and
upon the most favorable terms and conditions to the users of
the System of the City, in an aggregate principal amount not to
2
exceed Two Million Dollars ($2,000,000).
NOW THEREFORE, BE IT ENACTED BY THE BOARD OF DIRECTORS OF
THE CITY OF LITTLE ROCK, ARKANSAS:
Section 1 That under the authority of the Constitution
and laws of the State of Arkansas, including particularly Act
132, City of Little Rock, Arkansas, Sewer Revenue Promissory
Notes are hereby authorized in the total principal amount of
not to exceed Two Million Dollars ($2,000,000), the proceeds of
the sale of which are necessary to provide sufficient funds to
pay the cost to the City of accomplishing the Improvements,
including, without limitation, the acquisition of necessary
rights -of -way, engineering fees, legal fees and other necessary
expenses incidental to the accomplishment of the Improvements,
and to the issuance of the Sewer Revenue Promissory Notes
(which Notes will herein be referred to as "Sewer Revenue
Promissory Notes" or "Notes"). The Notes shall be issued in
one or more series, be in such denominations as the City shall
determine, be dated the day of delivery, bear interest at such
rate or rates as determined by the City and be,payable not
later than September 1, 1984. The City is hereby authorized to
sell the Notes at public or private sale in such amounts and in
such manner as the City shall deem to be in the best interest
of the City and the users of the System, the terms of any such
sale to be as hereinafter provided or as set forth in such
resolution or resolutions of the Board of Directors of the
City, as hereinafter referred to.
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Section That the action of the City in accepting a bid
for the Notes, in approving the designation of the purchaser
and of the Trustee and Paying Agent, and in approving the
details of the maturity schedule, shall be submitted to the
Board of Directors for approval by resolution. in this regard
the Notes shall be numbered consecutively beginning with number
one (1) and shall be in such denominations as shall be
requested by the purchaser (but in denominations of not less
than $5,000 each) and approved by the Sewer Committee. The
resolution of the Board of Directors, referred to above, shall
set forth in detail a maturity schedule reflecting the years,
Note numbers, yearly principal maturities, semiannual interest
and total principal and interest requirements, and the
resolution shall specify the denominations of the Notes.
Thereafter, the Notes shall be executed on behalf of the City
by the Mayor and City Clerk and shall have impressed thereon
the seal of the City. The principal of and interest on the
Notes shall be payable solely out of the 1982 Sewer Revenue
Promissory Note Fund, as hereafter set forth, and shall be a
valid claim of the Noteholders only against such fund and the
revenues pledged to such fund, which revenues are hereby
pledged and mortgaged for the equal and ratable payment of the
principal of and interest on the Notes and shall be used for no
other purpose except as in this Ordinance specifically
provided. The principal of and interest on the Notes shall not
constitute an indebtedness of the City within any
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constitutional or statutory limitation. 392
Section 3.. That the Notes shall be in substantially the
following form and the Mayor and City Clerk are hereby
authorized and directed to make all recitals contained therein:
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CITY OF LITTLE ROCK, ARKANSAS n
SEWER REVENUE PROMISSORY NOTE c3 9 3
SERIES
NO. $
FOR VALUE RECEIVED, the City of Little Rock, Pulaski
County, Arkansas, hereby acknowledges itself indebted and
promises to pay to at its office in
__________________________, the principal sum of
_ Dollars ($ ) on _ 1,
19_, plus interest thereon from the date hereof at the rate of
_ — percent per annum, payable semiannually on 1
and 1 of each year beginning 1, 1982.
This Sewer Revenue Promissory Note is one of a series of
Sewer Revenue Promissory Notes, Series , in an aggregate
amount of $ , issued for the purpose of providing
interim contruction funds and in anticipation of the receipt of
grant funds for constructing improvements and betterments to
the Sewer System of the City of Little Rock, Arkansas, in
accordance with the Ordinance of the City adopted on
This is a special obligation payable solely
from the revenues of the Sewer System, subject only to the
prior lien of the Outstanding Bonds of the System and amounts
pledged for operation, maintenance and depreciation, and from
funds to be received by the City pursuant to grant No. of
the Environmental Protection Agency of the United States
Government, and it does not constitute an indebtedness of the
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City within any constitutional or statutory limitations. The
City covenants and agrees that on or before the maturity date
thereof this, and other such certificates, to the extent then
outstanding, with accrued interest, shall be paid from the
revenues of the Sewer System or grant funds received by the
City.
IN WITNESS WHEREOF, the City of Little Rock has caused
this certificate to be signed by the Mayor and City Clerk and
sealed with the corporate seal of said City on the _ day of
, 198_.
ATTEST:
City Clerk
( SEAL)
CITY OF LITTLE ROCK
Mayor
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$�Ilf �QIl_4. (a) That the City covenants that it will
continue in effect the present schedule of rates for sewer
services and that the rates will not be reduced except as
hereafter provided in this section, which schedule of rates was
originally established by Ordinance No. 13,764, adopted and
approved on the 4th day of December, 1979, and consolidated in
Ordinance No. 13,982, adopted and approved on the 17th day of
February, 1981 and as amended by Ordinance No. 14,303 , adopted
and approved on the 7th day of September, 1982, to which
reference is hereby made for a detailed statement of the rates,
and the provisions of Ordinance Nos. 13,764; 13,982 and
14,303 are hereby incorporated herein as though fully set
forth at this point.
(b) That the City covenants and agrees with the
Noteholders that the rates will produce a total revenue at
least sufficient to pay the operation and maintenance expenses
of the System, pay the principal of, premium, if any, and
interest on the Outstanding Bonds of the System, and Paying
Agent's fees in connection therewith, and make the required
deposit into the depreciation fund and pay the principal of and
interest on the Notes and Paying Agent's fees in connection
therewith. The City also covenants and agrees that the rates
shall, from time to time, as and when necessary, be increased
to such an amount as will provide revenues at least sufficient
for the above purposes.
(c) That the City further covenants and agrees that the
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396
rates shall never be reduced while any Sewer Revenue Promissory
Notes are outstanding.
(d) That none of the facilities or services afforded by
the System shall be furnished without a charge being made
therefor. in the event that the City or any department,
agency, or instrumentality thereof shall avail itself of the
facilities and services afforded by the System, the reasonable
value of the service or facilities so afforded shall be charged
against the City or such department, agency or instrumentality
and shall be paid for as the charges accrue. The revenues so
received shall be deemed to be revenues derived from the
operation of the System and shall be used and accounted for in
the same manner as the other revenues derived from the
operation of the System.
Section 5. Funds of the System. That the special funds
of the System previously established by Ordinance No. 11,695 of
the City of Little Rock, duly adopted and passed December 20,
1966, the 1972 Department Bond Fund established by Ordinance
No. 12,632 of the City, duly adopted and passed on April 4,
1972 and the 1981 Sewer Revenue Bond Fund established by
Ordinance No. 13,983, duly adopted and passed on February 17,
1981, (collectively referred to as the "Authorizing
Ordinances ") shall be preserved and maintained according to the
provisions of the respective ordinance by which each was
established. Reference is hereby made to the provisions of the
Authorizing Ordinances for specific descriptions of each fund.
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397
Secti,Qn -5. (a) That any surplus in the Sewer Fund, after
making the required monthly deposits into the special funds as
set forth in the Authorizing Ordinances shall be used for the
purpose of providing funds for the payment of the principal of
and interest on the Notes and the Paying Agent's fees as the
same become due according to the maturity schedule set forth in
Section 2 hereof and; as set forth in the resolution of the
Board authorizing subsequent series, as provided by Section 3
hereof.
(b) There shall be paid from the Sewer Fund into a
special fund, which is hereby created and designated "1982
Sewer Revenue Promissory Note Fund ", on or before five business
days prior to a principal or interest payment date, an amount
sufficient to pay the next installment of principal and /or
interest due, plus an amount sufficient to provide for the
Paying Agent's fees, on all outstanding Notes.
(c) All moneys in the 1982 Sewer Revenue Promissory Note
Fund shall be used solely for the payment of the principal of,
and interest on the Notes and the Paying Agent's fees, except
as herein specifically provided. If a surplus shall exist in
the 1982 Sewer Revenue Promissory Note Fund over and above the
amount necessary to insure the prompt payment of the principal
of and interest on the Notes as the same become due and the
Paying Agent's fees such surplus may be used, at the option of
the Sewer Committee, for the redemption of the Notes prior to
maturity or for constructing extensions, betterments and
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improvements to the System.
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Me
(d) There shall be withdrawn from the 1982 Sewer Revenue
Promissory Note Fund at least five (5) days before the maturity
date of any Note or interest payment thereon and deposited with
the Paying Agent an amount equal to the amount of such Note or
interest payment for the sole purpose of paying the same,
together with the Paying Agent's fee. Such deposit shall be at
the sole risk of the City and shall not operate as a payment of
the Note or interest payment thereon until so applied.
Section 7. That the City hereby agrees that all payments
on the Notes, principal, premium, if any, and interest, shall
be paid only through the designated Paying Agent or Agents.
All Notes paid or purchased either at or before maturity shall
be canceled when such payment or purchase is made, together
with all interest payments appertaining thereto, and held by
the Manager of the System and shall not be reissued. All
unpaid interest payments maturing on or prior to the date of
such payment or purchase shall continue to be payable to the
respective bearers thereof.
Section 8. That the System shall be operated on a fiscal
year basis beginning January 1 and ending December 31 of each
year.
Section 9. That the Notes shall be subject to redemption
prior to maturity at the option of the City on any date on or
before the final maturity at a price of par plus accrued
interest to the date of redemption.
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399
Section 10. That the Notes of this issue constitute a lien
against the revenues of the System subject only to the prior
and superior lien of the Oustanding Bonds of the System and all
deposits and coverage requirements in connection therewith.
Section 11. That it is covenanted and agreed by the City
with the holders of the Notes, or any of them, that the City
and the Sewer Committee will faithfully and punctually perform
all duties with reference to the System required by the
Constitution and laws of the State of Arkansas, including the
charging and collecting of reasonable and sufficient rates
lawfully established for services rendered by the System, the
segregating of the revenues of the System as herein required
and the applying of revenues to the respective funds herein or
previously created and referred to.
& .e.c-ti4n_12. That the City and the Sewer Committee
covenant and agree that they will maintain the System in good
condition and operate the same in an efficient manner and at
reasonable cost. While any Sewer Revenue Promissory Notes are
outstanding, the City and the Sewer Committee agree that they
will insure and at all times keep insured, in the amount of the
actual value thereof, in a responsible insurance company or
companies authorized and qualified under the laws of the State
of Arkansas to assume the risk thereof, all properties of the
System against loss or damage from fire, lightning, tornado,
winds, riot, strike, civil commotion, malicious damage,
explosion, and against loss or damage from any other causes
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400
customarily insured against by private companies engaged in a
similar type of business. The insurance policies are to be
taken with companies approved by the Sewer Committee and the
Trustee, are to carry a clause making them payable to the Sewer
Committee and Trustee as their interests may appear, and are
either to be placed in the custody of the Trustee or
satisfactory evidence of insurance shall be filed with the
Trustee. In the event of loss, the proceeds of such insurance
shall be applied solely toward the reconstruction, replacement
or repair of the System, and in such event the City and the
Sewer Committee will, with reasonable promptness, cause to be
commenced and completed the reconstruction, replacement and
repair work. If such proceeds are more than sufficient for
such purposes, the balance remaining shall be deposited to the
credit of the Sewer Fund and if such proceeds shall be
insufficient for such purposes, the deficiency shall be
supplied, first, from moneys in the Sewer Depreciation Fund,
and second, from moneys in the Sewer operation and Maintenance
Fund, and third, from available moneys in the Sewer Fund.
Nothing herein shall be construed as requiring the City to
expend any funds for operation and maintenance of the System or
for premium on this insurance which are derived from sources
other than the operation of the System, but nothing herein
shall be construed as preventing the City from doing so.
$a��34II_13. That the City and the Sewer Committee
covenant and agree that so long as any Sewer Revenue Promissory
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401
Notes are outstanding, that they will not mortgage, pledge or
otherwise encumber the System, or any part thereof or any
revenues derived from the operation thereof, except as herein
specifically provided, and will not sell, lease or otherwise
dispose of any substantial portion of the same.
Section 14. That the Sewer Committee shall keep or cause
to be kept proper books of accounts and records (separate from
all other records and accounts of the City) in which complete
and correct entries shall be made of all transactions relating
to the construction of the herein authorized Improvements and
relating to
the
operation of
the
System and
its
revenues.
And
such books
shall
be available
for
inspection
by
the holders
of
any of the Notes at reasonable times and under reasonable
circumstances. The City and the Sewer Committee agree to have
these records audited by an independent certified public
accountant at least once each year,.and a copy of the audit
shall be delivered to the Trustee and to any Noteholder who
shall have placed his name and address on file with the Sewer
Committee for that purpose. In the event the City and the
Sewer Committee fail or refuse to make the audit, the Trustee
may, and upon request of the holders of not less than ten
percent (108) in principal amount of the Sewer Revenue
Promissory Notes'then outstanding shall, have the audit made,
and the cost thereof shall be charged against the Sewer
Operation and Maintenance Fund. In addition, at least once in
each twelve (12) months during the construction for the herein
FXIl
authorized extensions, betterments and improvements, the City 402
and 'the Sewer Committee shall cause an audit to be made by a
certified public accountant covering all moneys pertaining to
the construction fund (hereafter created and referred to), and
the security held therefor and any investments thereof, and all
disbursements made pursuant to requisitions filed by the
Manager of the System, and copies of such audit shall be
furnished to the Trustee and furnished to any Noteholder who
shall have filed his name and address with the Sewer Committee
for that purpose,
Z.e.Q.t,jon 15. That the owner or owners of all improved
property lying within the area that will be served by the
System, after the proposed Improvements have been completed,
are hereby directed and required, upon written request from the
Sewer Committee, to connect all toilet and waste water
facilities of such improved property with the System; and the
owners of property that is improved after the completion of the
proposed improvements to the System shall, upon written request
of the Sewer Committee, immediately connect the toilet and
waste water facilities of such property with the System. The
required notice by the Sewer Committee shall be given at least
thirty (30) days prior to the final date for connection, and if
any property owner shall fail to make such connection after
having been so required in writing, the City and the Sewer
Committee hereby covenant and agree to institute appropriate
proceedings in a court of competent jurisdiction to compel such
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connection. Furthermore, any property owner who fails or
refuses to connect his improved property with the System after
having been so requested by the Sewer Committee shall be guilty
of a misdemeanor and upon conviction shall be fined in any sum
not less than $2.00 and no more than $10.00, and each day's
failure or refusal after the expiration of the time fixed in
the notice to make the connection shall be a separate offense;
provided, however, that the provisions hereof pertaining to
misdemeanor shall be effective only in the event that the City
Health Officer, or other duly designated individual or board,
has found and declared that such failure on the part of any
particular property owner constitutes a hazard to the public
health and safety of the City and inhabitants.
Section 16. (a) That the City covenants and agrees that
the holders and registered owners of the Sewer Revenue
Promissory Notes shall have the protection of the provisions of
Section 13 of Act 132, as amended (Ark. Stats. Sec. 19- 4113),
and that the City will diligently proceed to enforce the lien
of unpaid sewer charges against the premises served by the
System and to collect the amount due together with the penalty
and expenses authorized by Act 132. And, if the City shall
fail to proceed within thirty (30) days after written request
shall have been filed by the Trustee, the Trustee may, and upon
the written request of the holders and registered owners of not
less than ten percent (108) in principal amount of the Sewer
..evenue Promissory Notes then outstanding shall proceed to
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enforce said lien in accordance with and pursuant to the
authorization of Act 132.
(b) That if there be any default in the payment of the
principal of, or interest on any Sewer Revenue Promissory Note,
or if the City defaults in any 1982 Sewer Revenue Promissory
Note Fund requirement or in the performance of any of the other
covenants contained and set forth in this Ordinance, the
Trustee may, and upon the written request of the holders of not
less than ten percent (108) in principal amount of Sewer
Revenue Promissory Notes then outstanding shall, by proper suit
compel the performance of the duties of the officials of the
City as set forth in Act 132, as amended. And, in the case of
a default in the principal of, premium, if any, and interest on
any of the outstanding Sewer Revenue Bonds or Promissory Notes,
or if the City fails to complete any other obligation which it
herein assumes, and such default shall continue for thirty (30)
days thereafter, the Trustee may, and upon the written request
of the holders and registered owners of not less than ten
percent (108) in principal amount of the Sewer Promissory Note
then outstanding shall, apply in a proper action to a court of
competent jurisdiction for the appointment of a receiver to
administer the System on behalf of the City and the holders and
registered owners of the Notes with power to charge and collect
(or by mandatory injunction or otherwise to cause to be charged
and collected) rates sufficient to provide for the payment of
the expenses of operation, repair and maintenance and to pay
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405
the Notes and interest outstanding and to apply the revenue in
conformity with the provisions of Act 132, as amended, and with
this Ordinance. When all defaults in principal, premium, if
any, and interest payments have been cured, the custody and
operation of the System shall revert to the City.
(c) No holder or owner of any of the outstanding Sewer
Revenue Promissory Notes shall have any right to institute any
suit, action, mandamus or other proceeding in equity or in law
for the protection or enforcement of any right under this
Ordinance or under Act 132, as amendedr unless such holder
previously shall have given to the Trustee written notice of
the default on account of which such suit, action or proceeding
is to be taken, and unless the holders and registered owners of
not less than ten percent (108) in principal amount of the
Sewer Revenue Promissory Notes then outstanding shall have made
written request of the Trustee after the right to exercise such
powers or right of action, as the case may be, shall have
accrued, and shall have afforded the Trustee a reasonable
opportunity either to proceed to exercise the powers herein
granted or granted by said Act 132, as amended, or by the laws
of the State of Arkansas, or to institute such action, suit or
proceeding in its name, and unless, also, there shall have been
offered to the Trustee reasonable security and indemnity
against the costs, expenses and liabilities to be incurred
therein, or thereby, and the Trustee shall have refused or
neglected to comply with such request within a reasonable time,
406
and such notification, request and offer of indemnity are
hereby declared in every such case, at the option of the
Trustee, to be conditions precedent to the execution of the
powers and trusts of this Ordinance or to any other remedy
hereunder.
It is understood and intended that no one or more holders
of the Notes hereby secured shall have any right in any manner
whatever by his or their action to affect, disturb or prejudice
the security of this Ordinance, or to enforce any right
hereunder except in the manner herein provided, that all
proceedings at law or in equity shall be instituted, had and
maintained in the manner herein provided and for the benefit of
all holders of the Notes, and that any individual rights of
action or other right given to one or more of such holders by
law are restricted by this Ordinance to the rights and remedies
herein provided.
(d) That all rights and remedies enforceable by the
Trustee, may be enforced by it.without the possession of any of
the Notes, and any such suit, action or proceeding instituted
by the Trustee shall be brought in its name for the benefit of
all the holders of such Notes, subject to the provisions of
this Ordinance.
(e) That no remedy conferred upon or reserved to the
Trustee or to the holders of the Notes is intended to be
exclusive of any other remedy or remedies, and each and every
such remedy shall be cumulative and shall be in addition to
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407
every other remedy given hereunder or now or hereafter existing
or available at law or in equity.
(f) That no delay or omission of the Trustee or of any
holders of the Notes to exercise any right or power accrued
upon any default shall impair any such right or power or shall
be construed to be a waiver of any such default or an
acquiescence therein; and every power and remedy given by this
Ordinance to the Trustee and to the holders of the Notes,
respectively, may be exercised from time to time and as often
as may be deemed expedient.
(g) That the Trustee may, and upon the written request of
the holders of not less than ten percent (108) in principal
amount of the Sewer Revenue Promissory Notes then outstanding
shall, waive any default which shall have been remedied before
the entry of final judgment or decree in any suit, action or
proceeding instituted under the provisions of this Ordinance or
before the completion of the enforcement of any other remedy,
but no such waiver shall extend to or affect any other existing
or any subsequent default or defaults or impair any rights or
remedies consequent thereon.
Section 19. (a) Moneys held for the credit of the 1982
Sewer Revenue Promissory Note Fund and any other system Fund
may, at the option of the Sewer Committee, be invested and
reinvested by the Sewer Committee in direct obligations, of, or
obligations, the principal of and interest on which, are
unconditionally guaranteed by, the United States Government,
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408-
in writing by the holders of not less than ten percent (10 %) in
principal amount of the Sewer Revenue Promissory Notes then
outstanding and shall have been offered reasonable security and
indemnity against the costs, expenses and liabilities to be
incurred therein or thereby. The Trustee may resign at any
time by ten (10) days' notice in writing to the City, and the
majority in value of the holders of the outstanding Sewer
Revenue Promissory Notes at any time, with or without cause,
may remove the Trustee. In the event of a vacancy in the
office of Trustee, either by resignation or by removal, the
majority in value of the holders of the outstanding Sewer
Revenue Promissory Notes may appoint a new Trustee, such
appointment to be evidenced by a written instrument or
instruments filed with the City Clerk. If the majority in
value of the holders of the outstanding Sewer Revenue
Promissory Notes shall fail to fill a vacancy within thirty
(30) days after the same shall occur, then the City shall
forthwith designate a new Trustee by a written instrument filed
in the office of the City Clerk. The original Trustee and any
successor Trustee shall file a written acceptance and agreement
to execute the trust imposed upon it or them by this Ordinance,
but only upon the terms and conditions set forth in this
Ordinance and subject to the provisions of this Ordinance, to
all of which the respective holders of the Notes agree. Such
written acceptance shall be filed with the City Clerk, and a
copy thereof shall be placed in the Note transcript. Any
P44
409
successor Trustee shall have all the powers herein granted to
the original Trustee. Any Trustee that resigns or is removed
pursuant to the provisions hereof shall cease to be Paying
Agent and any successor Trustee shall be and become Paying
Agent. The Co- Paying Agent may resign, may be removed and a
successor may be named in the same manner and upon the same
terms set forth above with reference to the Trustee and the
Paying Agent provided, however, it shall not be mandatory that
a vacancy in the office of Co- Paying Agent be filled.
Section 18. That when the Notes have been executed by
the Mayor and City Clerk and the seal of the City impressed, as
herein provided, they shall be delivered to the Trustee, which
shall authenticate them and deliver them to the purchaser or
purchasers upon the payment of the purchase price.
The total sale proceeds shall be paid into a special fund
of the City which was created and designated "1981 Sewer
Construction Fund" created by Ordinance 13,983 of the
Ordinances of the City, adopted and approved on February 171
1981, (the "Construction Fund ".) The Construction Fund shall
be maintained in accordance with the provisions of Ordinance
No. 13,983. Reference is hereby made to the provisions of
Ordinance No. 13,983 for a detailed description of the
Construction Fund.
Section 19. (a) Moneys held for the credit of the 1982
Sewer Revenue Promissory Note Fund and any other System Fund
may, at the option of the Sewer Committee, be invested and
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410
reinvested by the Sewer Committee in direct obligations, of, or
obligations, the principal of and interest on which, are
unconditionally guaranteed by, the United States Government,
which shall mature, or which shall be subject to redemption by
the holder thereof, at the option of such holder, not later
than the date or dates when the moneys held for the credit of
the particular fund will be required for the purposes intended,
or in certificates of deposit or repurchase agreements issued
by any state or national bank which shall have combined capital
and surplus of not less than $5,000,000 (which may include the
Trustee) , such certificates, to the extent not insured by
Federal Deposit Insurance Corporation, to be secured by a
pledge of direct obligations of, or obligations the principal
of and interest on which, are guaranteed by the United States
Government, having a market value, to be determined at
intervals not exceeding six months, exclusive of accrued
interest, equal at least to the principal amount of such
certificates of deposit or repurchase agreements.
(b) Obligations so purchased as an investment of moneys
in any such fund shall be placed in the custody of the Trustee
or at such place or places as it may designate and shall be
deemed at all times to be a part of such fund and the interest
accruing thereon and any profit realized from such investment
shall be credited to such fund, and any loss resulting from
such investment shall be charged to such fund.
Section 20. That in the event the office of Mayor, City
23
411
Clerk, Finance Director, Manager of the System, Board of
Directors, Sewer Committee, City Attorney or Attorney for the
Sewer Committee shall be abolished, or any two or more of such
offices shall be merged or consolidated, or in the event the
duties of a particular office shall be transferred to another
office, or officer, or in the event of a vacancy in any such
office by reason of death, resignation, removal from office or
otherwise, or in the event any such officer shall become
incapable of performing the duties of his office by reason of
sickness, absence from the City or otherwise, all powers
conferred and all obligations and duties imposed upon such
office or officer shall be performed by the office or officer
succeeding to the principal functions thereof, or by the office
or officer upon whom such powers, obligations and duties shall
be imposed by law.
Section 21. That the provisions of this Ordinance shall
constitute a binding contract between the City and the holder
and registered owners of the outstanding Notes issued
hereunder, and the City will at all times strictly adhere to
the terms and provisions hereof and fully discharge all of its
obligations hereunder. Subject to the terms and provisions
contained in this section and not otherwise, the holders of not
less than seventy -five percent (75 %) in aggregate principal
amount of the Notes then outstanding shall have the right, from
time to time, anything contained in this Ordinance to the
contrary notwithstanding, to consent to and approve the
24
412
adoption by the City of such Ordinance supplemental hereto as
shall be necessary or desirable for the purpose of modifying,
altering, amending, adding to or rescinding, in any particular,
any of the terms or provisions contained in this Ordinance or
in any supplemental ordinance; provided, however, that nothing
herein containd shall permit or be construed as permitting (a)
an extension of the maturity of the principal of, premium, if
any, or the interest on the Notes issued hereunder, or (b) a
reduction in the principal amount of any Note or the rate of
interest therein, or (c) the creation of a lien upon or a
pledge of revenues other than the lien and pledge created by
this Ordinance, or (d) a privilege of priority of any Note or
Notes over any other Note or Notes, or (e) a reduction in the
aggregate principal amount of the Notes required for consent to
such supplemental ordinance.
.Sggtion 22. That this Ordinance shall not create any
right of any kind and no right of any kind shall arise
hereunder pursuant to it until the Notes authorized by this
Ordinance shall be issued and delivered.
Section 23. That the provisions of this Ordinance are
hereby declared to be separable and if any provision shall for
any reason be held illegal or invalid, such holding shall not
affect the validity of the remainder of the Ordinance.
Section 24. That all ordinances and parts of ordinances
in conflict herewith are hereby repealed to the extent of such
conflict.
25
• 413
Section 25. That it is hereby ascertained and declared
that the Improvements must be accomplished as soon as possible
in order to alleviate immediate hazards to the health, safety
and welfare of the City, its inhabitants and their property,
and that the Improvements can be accomplished only by the
issuance of the Notes. It is, therefore, declared that an
emergency exists and this Ordinance being necessary for the
immediate preservation of the public peace, health and safety
shall take effect and be enforced from and after its passage.
PASSED: September 7, 1982
ATT IT:
(City C k)
(SEAL)
26
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