15632NO. 15,632
AN ORDINANCE TO APPROPRIATE UP TO
$550,000 FROM THE CITY OF LITTLE
ROCK GENERAL FUND - CONTINGENCY
RESERVE FOR USE BY THE CITY OF
LITTLE ROCK FOR THE OPERATION OF
THE AMBULANCE AUTHORITY, TO PROVIDE
FOR THE REPAYMENT TO THE CITY OF
THESE FUNDS FROM THE REVENUES OF
THE LITTLE ROCK AMBULANCE
AUTHORITY, TO PROVIDE FOR A
PROCEDURE OF ACCOUNTABILITY OF THE
EXPENDITURE OF THESE FUNDS,
DECLARING AN EMERGENCY AND FOR
OTHER PURPOSES.
$4
WHEREAS, the City of Little Rock has directed that
detailed financial records for the Little Rock Ambulance
Authority be compiled; and
WHEREAS, as a result of these records finally being
compiled the best estimate using generally accepted accounting
principles that are acceptable to the City shows that by July,
1989, the revenue shortfall for the Little Rock Ambulance
Authority could be in excess of $500,000, and thereafter will
decrease and end in 1990; and
WHEREAS, the City wishes to continue to provide excellent
advanced life support services to its citizens and in the
process to assure that the best fiscal management of the
authority is undertaken.
1 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS
2 OF THE CITY OF LITTLE ROCK, ARKANSAS:
3 SECTION 1. Pursuant to Section 1909 of the Equipment
4 Lease Agreement between the City of Little Rock and the Little
5 Rock Ambulance Authority, the City exercises its remedy to take
6 immediate possession of all assets, equipment, accounts, funds,
7 real or personal property, or any other items coming under the
s control and jurisdiction of the Ambulance Authority and to
9 maintain this control until such time as the City, in its sole
10 discretion, deems the Ambulance Authority able to fulfill its
11 obligations under the lease agreement with the City.
12 SECTION 2. The City appropriates the sum of $550,000
13 from the City of Little Rock General Fund - Contingency Reserve to
14 be placed in a separate account known as the City of Little
15 Rock - Ambulance Authority Emergency Reserve and to be disbursed
16 as follows:
17 (a) The City designated acting Director of the
is Ambulance Authority will requisition funds from
19 the City as needed to pay obligations of the
20 Ambulance Authority with the priority of payments
21 to be determined by the City Manager.
22 (b) Amounts drawn by the Ambulance Authority will
23 be repaid to the City, together with interest
24 thereon computed at a rate of 9.00% per annum.
25 (c) Expenditures from this fund will be in
26 accordance with procedures and regulations
27 established by the City Manager's Office and
28 reviewed as deemed necessary by the City Manager
29 or his designee.
30 SECTION 3. To the extent that a such a payment does not
31 violate any of the lease agreements, letters of credit, or other
32 financing agreements. presently in effect by the Ambulance
33 Authority, the Ambulance Authority shall provide within ninety
34 days of the effective date of this ordinance a program for the
35 repayment of any funds expended from the emergency fund created
36 herein back to the City of Little Rock General Fund - Contingency.
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Reserve, and shall provide within 180 days a time frame for when
these payments can be made in full.
SECTION 4. To the extent that this ordinance may conflict
with Little Rock, Ark., Ord. #14,062, § 9 (June 16, 1981), this
ordinance shall prevail.
SECTION 5. Emergency Clause. The City has become aware
that the Ambulance Authority is in a deficit situation which
will continue to worsen until approximately July, 1989, at which
time the deficit may be in excess of $550,000. In order to
fulfill all requirements that the City has accepted under the
Municipal Lease Agreement approved by Resolution No. 7,333
(February 19, 1985) and to continue to provide advanced life
support for the citizens of the City of Little Rock, the City
finds that it must make this appropriation for the use and
benefit of the Little Rock Ambulance Authority. Failure to make
this appropriation could result in a default under the terms of
the Municipal Lease and a disruption of advanced life support
ambulance service which is necessary for the protection of the
health, safety, and welfare of the citizens of the City of
Little Rock. An emergency is therefore declared to exist and
this ordinance will be in effect from and after the date of its
passage.
PASSED: January 27, 1989
ATTEST:
CI44 CLERK Ja CZECH
MARK STODOLA, CITY ATTORNEY
tmc:80715
MAYOR F OYD G. VILLINES, III
we
3-
r PROMISSORY NOTE
WHEREAS, the Board of Directors of the City of Little Rock,
Arkansas ("City") has appropriated five hundred t aandefifty
athou-
sand dollars ($550, 000. 00) ("the Appropriation") "MEMS") , ad
able to the Little Rock Ambulance Authority
MEMS
WHEREAS, the City and MEMS have agreed that any monies used
by MEMS from the Appropriation will be repaid to the City with
interest at the rate of nine percent (9%) per annum,
THEREFORE, FOR THE VALUE RECEIVED: Rock any sum
1. MEMS promises to pay to the City of Little R at the rate
used from the Appropriation, with interest thereon,
on
of nine percent (9%) per annum. Interest will begin to accrue and
the date a sum from the Appropriation is received by MEMS,
will continue to accrue until the date of its repayment in full .
he
If MEMS requests more than one transfer of fundst trom rthe
Appropriation, interest on any subsequent transfer,
specified within this note,MS andlwilllcontinue to accrue until the
amount is received by
date of its repayment in full.
o 2 .MEMS shall repay all principle and interest due
eenoay later
ter
than January 31, 1992 . The City may require O1 in advance of that date if the City determines that MEMS is able
op
H payments without jeopardizing its operations. In
to make these paym periodic
w
consideration of not being required to make regular p
payments on this note, MEMS agrees to orrhis designeeexP�eso�
written permission from the City Manager,
to the repayment of this note, before entering ointo than n ther
promissory note, or before incurring any
operating expenses) in excess of five thousand dollars
($5000. 00) .
3 . MEMS agrees to indemnify the City for all reasonable
attorney's fees which may be incurred for s ices sactually
rendered in the collection of this note, provided
shall not exceed ten percent (10%) of the amount of principle
plus accrued interest due.
4 . The terms of this note are in addition to, and
supplementary of, the terms and conditions already existing
between the City and MEMS by virtue of an equipment lease entered
on July 2 , 1985 , and any other agreements existing between the
City and MEMS on the date this note is executed.
5. This note is given and received as evidence of the
indebtedness recited herein and not in satisfaction thereof.
ATTEST: Little Rock Ambulance Authority
d/b/a/ MEMS
By: y-yi . tJ inn
Date: ,Ic C,
ATTEST: City of Littl- -ock, .r}cansas
(1-4)-11a411 I By. i
V City ark y-25-89
Date:
90202
r v
SCHEDULE OF ADVANCES:
CITY OF LITTLE ROCK, ARKANSAS
TO THE
LITTLE ROCK AMBULANCE AUTHORITY
April 21 , 1989
January 30 , 1989 $ 130 , 000 . 00
February 15 , 1989 150 , 000. 00
April 6, 1989 60 , 000 . 00
Payments to E . Jack Murphy -
March 2 , 1989 3 , 217 . 30
April 13 , 1989 4 , 956 . 00
Payments to Mr. Murphy ' s
Retirement Fund -
March 7, 1989 287 . 35
March 9 , 1989 287 . 35
March 23 , 1989 287. 35
April 4 , 1989 287 . 35
April 17 , 1989 287 . 35
Total $ 349 , 610 . 05