15966ORDINANCE NO. 15,966
AN ORDINANCE AUTHORIZING THE CONSTRUCTION OF
EXTENSIONS, BETTERMENTS AND IMPROVEMENTS TO
THE SEWER SYSTEM OF THE CITY OF LITTLE ROCK,
ARKANSAS; AUTHORIZING THE ISSUANCE OF SEWER
REVENUE BONDS FOR THE PURPOSE OF FINANCING THE
CONSTRUCTION; PROVIDING FOR THE PAYMENT OF THE
PRINCIPAL AND INTEREST ON THE BONDS;
PRESCRIBING OTHER MATTERS RELATING THERETO;
AND DECLARING AN EMERGENCY.
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WHEREAS, the City of Little Rock, Arkansas (the "City ")
owns and operates a sewer system (the "System ") , and has determined
that extensions, betterments and improvements to the wastewater
treatment facilities of the System (the "Improvements ") should be
made in order that the City and its inhabitants may have adequate
and proper sewer facilities; and
WHEREAS, the Sewer Committee of the City (the
"Committee") has had prepared an engineering report for the
Improvements and has obtained estimates of cost totalling
$7,000,000 for the Improvements; and
WHEREAS, the City is making arrangements for the sale of
$7,000,000 in aggregate principal amount of bonds to the Arkansas
Development Finance Authority (the "Bondholder ") at a price of par
for bonds bearing interest at the rate of 4% per annum pursuant to
a Bond Purchase Agreement (the "Agreement ") among the City, the
Bondholder and the Arkansas Department of Pollution Control and
Ecology (the "Department ") , which has been presented to and is
before this meeting; and
WHEREAS, there are outstanding City of Little Rock,
Arkansas Sewer Revenue Bonds, dated February 1, 1966 (the 111966
Bonds "), issued under the authority of Ordinance No. 11,695 of the
City duly adopted and passed December 20, 1965; Department of
Pollution Control and Ecology of the State of Arkansas Pollution
Control Revenue Bonds, dated June 1, 1972 (the 111972 Bonds "),
issued under the authority of State of Arkansas Resolution No. 19 -B
duly adopted and passed September 22, 1972, and which are secured
by a pledge of revenues of the System derived from a Water Quality
Control Charge levied by the City under the authority of Ordinance
No. 12,632 of the City, duly adopted and passed April 4, 1972; and
City of Little Rock, Arkansas Sewer Construction and Refunding
Revenue Bonds, Series 1987, dated May 1, 1987 (the 111987 Bonds "),
issued under the authority of Ordinance No. 15,260 of the City duly
adopted and passed March 17, 1987 (the 111987 Ordinance "); and
WHEREAS, the City is authorized, under the provisions of
Title 14, Chapter 235, Subchapter 2 of the Arkansas Code of 1987
Annotated (the "Authorizing Legislation "), to enter into the
Agreement and to issue the bonds; and
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WHEREAS, the Bondholder proposes to pledge the bonds as
collateral for the payment of its Wastewater System Development
Bonds, 1991 Series (the "ADFA Bonds ") pursuant to a trust indenture
between the Bondholder and the bank or trust company to be named as
trustee thereunder (the "ADFA Trustee ");
NOW, THEREFORE, BE IT ORDAINED by the Board of Directors
of the City of Little Rock, Arkansas:
Section 1. That the Improvements be accomplished. The
accomplishment of the Improvements shall be under the control and
supervision of, and all details in connection therewith shall be
handled by, the Committee, and the Committee shall make all
contracts and agreements necessary or incidental to the performance
of its duties and the execution of its powers. The Committee shall
let all construction contracts pursuant to and in accordance with
existing laws and shall require such performance bonds and
insurance from the contractors as, in the judgment of the
Committee, will fully insure the completion of the Improvements in
accordance with the plans and specifications therefor.
Section 2. That the sale to the Bondholder of up to
$7,000,000 in principal amount of bonds by the City at a price of
par for bonds bearing interest at the rate of 4% per annum and
otherwise subject to the terms and provisions hereafter in this
Ordinance set forth in detail be, and is hereby approved and the
bonds are hereby sold to the Bondholder. The Mayor is hereby
authorized and directed to execute and deliver the Agreement on
behalf of the City and to take all action required on the part of
the City to fulfill its obligations under the Agreement. The
Agreement is hereby approved in substantially the form submitted to
this meeting with such changes as may be approved by the Mayor, his
execution to constitute complete evidence of such approval.
Section 3. That the Board of Directors hereby finds and
declares that the period of usefulness of the System after
completion of the Improvements will be more than twenty -five (25)
years, which is longer than the term of the bonds.
Section 4. That under the authority of the Constitution
and laws of the State of Arkansas, including particularly the
Authorizing Legislation, City of Little Rock, Arkansas Sewer
Revenue Bonds, Series 1990 (the "bonds ") are hereby authorized and
ordered issued in the principal amount of $7,000,000, the proceeds
of the sale of which are necessary to provide sufficient funds for
accomplishing the Improvements, paying expenses incidental thereto,
paying expenses of issuing the bonds and paying interest during
construction, all as approved in accordance with the Agreement.
The bonds shall bear interest at the rate of 4% per annum
based upon a 360 -day year of twelve consecutive 30 -day months
compounded semiannually. The bonds shall be dated the date of
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delivery to the Bondholder. Interest shall be payable on April 15,
1991, and on each April 15 and October 15 thereafter. Principal
shall be payable on October 15, 1994 and on each April 15 and
October 15 thereafter as follows until the unpaid principal is paid
in full:
Date Amount
10/15/94
$ 115,890.23
04/15/95
118,208.03
10/15/95
120,572.20
04/15/96
122,983.64
10/15/96
125,443.31
04/15/97
127,952.18
10/15/97
130,511.22
04/15/98
133,121.45
10/15/98
135,783.88
04/15/99
138,499.55
10/15/99
141,269.54
04/15/00
144,094.93
10/15/00
146,976.83
04/15/01
149,916.37
10/15/01
152,914.70
04/15/02
155,972.99
10/15/02
159,092.45
04/15/03
162,274.30
10/15/03
165,519.79
04/15/04
168,830.18
10/15/04
172,206.79
04/15/05
175,650.92
10/15/05
179,163.94
04/15/06
182,747.22
10/15/06
186,402.16
04/15/07
190,130.21
10/15/07
193,932.81
04/15/08
197,811.47
10/15/08
201,767.70
04/15/09
205,803.05
10/15/09
209,919.11
04/15/10
214,117.49
10/15/10
218,399.84
04/15/11
222,767.84
10/15/11
227,223.20
04/15/12
231,767.66
10/15/12
236,403.01
04/15/13
241,131.07
10/15/13
245,953.70
04/15/14
250,873.04
The bonds will be issued in the form of a single
typewritten bond, registered as to both principal and interest,
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payable to the Bondholder, or registered assigns, as set forth
hereinafter in the bond form, and shall be numbered R -1. (Even
though a single bond is being issued, reference herein will be to
"bonds. ")
Payment of principal and interest shall be by check or
draft mailed to the Bondholder at its address shown on the bond
registration books of the City which shall be maintained by the
City Clerk as Bond Registrar, without presentation or surrender of
the bonds (except upon final payment) and such payments shall
discharge the obligation of the City to the extent thereof.
Payment of principal and interest shall be in any coin or
currency of the United States of America which, as at the time of
payment, shall be legal tender for the payment of debts due the
United States of America. When the principal of and interest on
any bond has been fully paid, the bond shall be delivered to the
City Clerk and shall be canceled.
Section 5. That the bonds 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 bonds are not general
obligations of the City but are special obligations, the principal
of and interest on which are secured by a pledge of and are payable
from revenues derived from the System. The pledge of System
revenues is subordinate to the pledge in favor of the 1966 Bonds,
the 1972 Bonds and the 1987 Bonds (collectively, the "Prior
Bonds "). The bonds and interest thereon shall not constitute an
indebtedness of the City within any constitutional or statutory
limitation.
Section 6. That the bonds shall be in substantially the
following form and the Mayor and City Clerk are hereby authorized
and directed to make all the recitals contained therein:
(form of single registered bond)
(To be typewritten)
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF PULASKI
CITY OF LITTLE ROCK
4% SEWER REVENUE BOND
SERIES 1990
No. R -1
KNOW ALL MEN BY THESE PRESENTS:
$7,000,000
That the City of Little Rock, Pulaski County, Arkansas
(the "City ") , for value received, hereby acknowledges itself to owe
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and promises to pay to the Arkansas Development Finance Authority,
or registered assigns, solely from the special source provided as
hereinafter set forth, the principal sum of
SEVEN MILLION DOLLARS
(or the total principal amount outstanding as reflected
by the Record of Payment of Advances attached hereto)
with interest on the unpaid balance of the total principal amount
at the rate of 4% per annum from the date of each advance. The
principal and interest shall be payable in such coin or currency of
the United States of America as at the time of payment shall be
legal tender for the payment of debts due the United States of
America.
Interest on the unpaid balance of the total principal
amount shall be payable on April 15, 1991 and on each April 15 and
October 15 thereafter until the principal of this bond is paid in
full. Principal shall be payable on October 15, 1994 and each
April 15 and October 15 thereafter until the unpaid principal is
paid in full as follows:
Date Amount
(There will be inserted the schedule set forth
in Section 4 of this Ordinance.)
Payments of the principal and interest installments due
hereon shall be made, except for final payment, without
presentation and surrender of this bond, directly to the registered
owner at his address shown on the bond registration book of the
City maintained by the City Clerk as Bond Registrar, and such
payments shall fully discharge the obligation of the City to the
extent of the payments so made.
This bond is issued for the purpose of providing
financing of the costs of constructing extensions, betterments and
improvements to the sewer system of the City (the "System "),
interest during construction and costs of authorizing and issuing
this bond, and is issued pursuant to and in full compliance with
the Constitution and laws of the State of Arkansas, including
particularly Title 14, Chapter 235, Subchapter 2 of the Arkansas
Code of 1987 Annotated, and pursuant to Ordinance No. of the
City, duly adopted and approved on the day of ,
1990 (the "Authorizing Ordinance "). Reference is hereby made to
the Authorizing Ordinance for the details of the nature and extent
of the security and of the rights and obligations of the City and
the registered owner of this bond.
This bond may be assigned with the written approval of
the Arkansas Department of Pollution Control and Ecology (the
"Department "), and in order to effect such assignment the assignor
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shall promptly notify the City Clerk by registered mail, and the
assignee shall surrender this bond along with a written assignment
and written approval of the Department to the City Clerk for
transfer on the registration records. Every assignee shall take
this bond subject to all payments and prepayments of principal and
interest prior to such surrender for transfer.
This bond may be prepaid at the option of the City from
funds from any source, in whole but not in part, at any time on and
after May 1, 2001, at a prepayment price equal to the principal
amount outstanding, plus accrued interest to the prepayment date.
Notice shall be given of such prepayment to the owner of this bond
or registered assigns at least 90 days prior to the prepayment
date. Such notice shall be in writing mailed to the address of the
owner of this bond or registered assigns at the address as
reflected on the bond registration books of the City Clerk.
This bond does not constitute an indebtedness of the City
within any constitutional or statutory limitation or provision, and
the taxing power of the City is not pledged to the payment of the
principal of or interest on this bond. This bond is a special
obligation payable solely from revenues derived from the operation
of the System. In this regard, the pledge of System revenues is
subordinate to the pledge of System revenues to an issue of Sewer
Revenue Bonds, dated February 1, 1966, Department of Pollution
Control and Ecology of the State of Arkansas Pollution Control
Revenue Bonds, dated June 1, 1972, and Sewer Construction and
Refunding Bonds, dated May 1, 1987, so long as any of such bonds
are outstanding. In addition, the City may issue additional bonds
in accordance with the Authorizing Ordinance on a parity with or
having a priority on System revenues over the pledge securing these
bonds. A sufficient amount of System revenues to pay principal and
interest has been duly set aside and pledged as a special source
for that purpose by the Authorizing Ordinance. The City has fixed
and has covenanted and agreed to maintain rates for use of the
System which shall be sufficient at all times to at least provide
for the payment of the reasonable expenses of operation and
maintenance of the System, provide for the payment of the principal
of and interest on all the outstanding bonds to which System
revenues are pledged as the same become due, to establish and
maintain debt service reserves and to provide a depreciation fund,
all as set forth in the Authorizing Ordinance.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all
acts, conditions and things required by the Constitution and
statutes of the State of Arkansas to exist, happen and be performed
precedent to and in the issuance of this bond do exist, have
happened and have been performed in regular and due time, form and
manner as required by law; that this bond does not exceed any
constitutional or statutory limitation of indebtedness, and that
provision has been made for the payment of the principal of and
interest on this bond, as provided in the Authorizing Ordinance.
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IN WITNESS WHEREOF, the City of Little Rock, Arkansas has
caused this bond to be executed in its name by its Mayor and City
Clerk, thereunto duly authorized, with the manual signatures of the
Mayor and City Clerk, and its corporate seal to be affixed, all as
of the day of , 1990.
CITY OF LITTLE ROCK, ARKANSAS
ATTEST:
By
Mayor
City Clerk
(SEAL)
REGISTRATION CERTIFICATE
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Signature of
Date of Registration•Name of Registered Owner: City Clerk
RECORD OF PAYMENT OF ADVANCES
Signature of Vice
President of Arkansas
Amount of Total Principal Development Finance
Date of Advance* Advance Outstanding Authority
*The date of each advance shall be the interest commencement date
from which the principal amount of such advance bears interest.
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Section 7. That the City has heretofore fixed sewer
rates by ordinance No. 13,982, adopted on February 17, 1981 and
Ordinance No. 15,242 adopted on February 3, 1987. Reference is
hereby made to such ordinances fixing the rates for the details
thereof and other provisions pertaining thereto, which sewer rates
are hereby confirmed and continued.
The City covenants and agrees that the rates established
will produce gross revenues at least sufficient to pay monthly
operation, maintenance and funded depreciation expenses of the
System, pay the principal of and interest on all outstanding bonds
to which System revenues are pledged, as the same become due, and
create and maintain any required debt service reserves ( "Required
Payments ") . The City covenants always to maintain rates (including
increases as necessary) which will provide for the Required
Payments.
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 S. That the provisions of the 1987 Ordinance
(including those incorporated therein by reference), as now in
effect, and except those provisions that are clearly inapplicable
hereto (including, without limitation, the provisions for parity
indebtedness), pertaining to the collection, investment and the
handling of revenues and funds, to the operation, maintenance and
care of the System, and to the depreciation of the System, are
hereby made applicable hereto and are incorporated herein by
reference as though fully set forth at this point. The effect of
the above covenant shall be to continue the applicable provisions
in full force and effect even after the payment of the Prior Bonds
and until the bonds are paid, or provision made therefor.
Section 9. That the City covenants that it will
continuously operate the System as a revenue - producing undertaking
and will not sell or lease the same, or any substantial portion
thereof, without the prior written approval of the Bondholder and
the Department; provided, however, that nothing herein shall be
construed to prohibit the City from making such dispositions of
properties of the System and such replacements and substitutions
for properties of the System as shall be necessary or incidental to
the efficient operation of the System as a revenue - producing
undertaking.
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Section 10. (a) That after making the required payments
into the Sewer Operation and Maintenance Fund and the bond funds
for the Prior Bonds and any additional bonds having.a priority on
the pledge of System revenues over the pledge in favor of the bonds
in accordance with Section 14 hereof, the Committee shall set aside
and make provision as set forth in (b) below from System revenues
for the payment of the principal of and interest on the bonds by
making a deposit as set forth in (b) below into an account of the
City in a special fund to be created by the Bondholder (the "ADFA
Bond Fund ") for the purpose of paying the principal of and interest
on the bonds.
(b) In order to pay interest on the Bonds, there shall
be deposited into the ADFA Bond Fund on April 15, 1991 and on each
April 15 and October 15 thereafter until April 15, 1994 the
interest due on the Bonds on such date. Commencing on the first
business day of each month thereafter, there shall be deposited
into the ADFA Bond Fund an amount equal to 1/6 of the amount of
interest on the bonds next due and 1/6 of the amount of the
principal.of the bonds next due.
(c) If the revenues of the System are insufficient to
make the required payment on or before the first business day of
the following month into the ADFA Bond Fund, then the amount of any
such deficiency in the payment made shall be added to the amount
otherwise required to be paid into the ADFA Bond Fund on the first
business day of the next month.
(d) When the moneys held in the ADFA Bond Fund which
represent payments by the City and interest earnings thereon or
proceeds of investments therefrom (collectively, "City Funds ")
shall be and remain sufficient to pay the principal of and interest
on all of the bonds then outstanding, the City shall not be
obligated to make any further payments into the ADFA Bond Fund.
(e) All moneys in the ADFA Bond Fund representing City
Funds shall be used solely for the purpose of paying the principal
of and interest on the bonds and the City shall automatically
receive a credit for the amount of such City Funds on hand in the
ADFA Bond Fund and available for the payment of any principal and
interest currently due on an interest or principal payment date
irrespective of whether the Bondholder has applied or caused to be
applied such funds on that date for such purpose. The City shall
receive a credit for all earnings and income derived from the
investment of the City's Funds each April 15 and October 15, and
such earnings and income shall be credited against the next six
monthly payments.
(f) The bonds shall be specifically secured by a pledge
of all the revenues required to be placed into the ADFA Bond Fund.
This pledge in favor of the bonds is hereby irrevocably made
according to the terms of this Ordinance, and the City and its
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officers and employees shall execute, perform and carry out the
terms thereof in strict conformity with the provisions of this
Ordinance.
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Section 11. Bonds for the payment or full prepayment of
which moneys or direct, non - callable obligations of the United
States of America shall have been deposited in escrow with a bank
or trust company having a reported capital and surplus in excess of
$15,000,000, as escrow agent for the benefit of the Bondholder (the
"Agent ") , (whether upon or prior to the maturity or the prepayment
date of such Bonds) shall be deemed to be paid and discharged;
provided, however, that if the bonds are to be prepaid prior to
maturity, notice of such prepayment shall have been duly given or
the Agent shall have been irrevocably instructed in writing to give
such notice of prepayment in a timely fashion.
Section 12. The City and the Committee shall assure that
(1) not in excess of ten percent (10 %) of the proceeds of the bonds
is used for Private Business Use if, in addition, the payment of
more than ten percent (log) of the principal or ten percent (10 %)
of the interest due on the bonds during the term thereof is, under
the terms of the bonds or any underlying arrangement, directly or
indirectly secured by any interest in property used or to be used
for a Private Business Use or in payments in respect of property
used or to be used for a Private Business Use or is to be derived
from payments, whether or not to the City, in respect of property
or borrowed moneys used or to be used for a Private Business Use;
and (ii) that, in the event that both (A) in excess of five percent
(5 %) of the proceeds of the bonds are used for a Private Business
Use, and (B) an amount in excess of five percent (5 %) of the
principal or five percent (5 %) of the interest due on the bonds
during the term thereof is, under the terms of the bonds or any
underlying arrangement, directly or indirectly, secured by any
interest in property used or to be used for said Private Business
use or in payments in respect of property used or to be used for
said Private Business Use or is to be derived from payments,
whether or not to the City, in respect of property or borrowed
money used or to be used for said Private Business Use, then said
excess over said five percent (5 %) of proceeds of the bonds used
for a Private Business Use shall be used for a private Business Use
related to the governmental use of the Improvements.
The City shall assure that not in excess of five percent
(5 %) of the proceeds of the bonds are used, directly or indirectly,
to make or finance a loan to persons other than state or local
governmental units.
As used in this Section 12, "Private Business Use" means
use directly or indirectly in a trade or business carried on by a
natural person or in any activity carried on by a person other than
a natural person, excluding, however, use by a state or local
governmental unit and use as a member of the general public.
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Section 13. That the principal and interest installments
shall be prepayable prior to maturity as provided in the bond form
in section 6 hereof.
Section 14. That as long as any of the bonds are
outstanding, the City shall not issue or attempt to issue any bonds
having or claimed to be entitled to a priority of or parity with
lien on the revenues of the System over the lien securing the
bonds, including any and all future extensions, betterments and
improvements to the System, except as provided in this Section 14.
The City may issue additional revenue bonds to finance or
pay the cost of constructing extensions, betterments and
improvements to the System or to refund outstanding bonds of the
City payable from System revenues issued for such purposes having
a priority on or on a parity with the lien on System revenues in
favor of the bonds if there shall have been procured and filed with
the City Clerk and the Bondholder a statement by a certified public
accountant not in the regular employ of the City reciting the
opinion that (i) the net revenues (net revenues being gross
revenues of the System less operation and maintenance expenses, but
not including depreciation) of the System for the fiscal year
preceding the year in which such additional bonds are to be issued
were not less than 110% of the average annual debt service
requirements on all outstanding bonds to which the revenues of the
System are pledged and the bonds then proposed to be issued or (ii)
the net revenues for the fiscal year succeeding the year in which
such additional bonds are to be issued are projected to be
sufficient in amount, taking in consideration any enacted increase
in revenues, to be not less than 110 percent of the average annual
debt service requirements (principal and interest) on all
outstanding bonds to which System revenues are pledged and the
bonds then proposed to be issued.
The additional bonds, the issuance of which is restricted
and conditioned by this Section 14, shall not be deemed to mean
bonds, the security and source of payment of which are subordinate
and subject to the priority of the bonds and such additional bonds
may be issued without complying with the terms and conditions of
this Section 14.
Section 15. That it is covenanted and agreed by the City
and the Committee with the Bondholder and the Department that they
will faithfully and punctually perform all duties with reference to
the System required by the Constitution and laws of the State of
Arkansas, by the Agreement and by this Ordinance, including,
without limitation, the making and collecting of reasonable and
sufficient rates lawfully established for services rendered by the
System, segregating the revenues of the System and applying them to
the respective funds maintained pursuant to the 1987 Ordinance and
this Ordinance.
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The City and the Committee covenant and agree that the
Bondholder shall have the protection of all the provisions of the
Authorizing Legislation, and that the City and the Committee will
diligently proceed to enforce those provisions to the end of the
Bondholder realizing fully upon its security. And, if the City and
the Committee shall fail to proceed within thirty (30) days after
written request shall have been filed by the Bondholder, the
Bondholder may proceed to enforce all such provisions.
If there be any default in the payment of the principal
of or interest on any of the bonds, or if the City and the
Committee default in any Bond Fund requirement or in the
performance of any of the other covenants contained in this
Ordinance or in the Agreement, the Bondholder and the Department
(with respect to covenants contained in the Agreement) may, by
proper suit, compel the performance of the duties of the officials
of the City and the Committee under the laws of the State of
Arkansas. In the case of a default in the payment of the principal
of and interest on the bonds, the Bondholder may 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
Committee, and the Bondholder 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 any bonds
and interest outstanding and to apply the revenues in conformity
with this Ordinance. When all defaults in principal and interest
payments have been cured, the custody and operation of the System
shall revert to the City and the Committee. No remedy herein
conferred upon or reserved to the Bondholder is intended to be
exclusive of any other remedy or remedies herein provided or
provided by law, and every such remedy shall be cumulative and
shall be in addition to every other remedy given hereunder or given
by law. No delay or omission of the Bondholder 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 default or an
acquiescence therein; and every power and remedy given by this
Ordinance to the Bondholder may be exercised from time to time and
as often as may be deemed expedient.
No waiver of any default shall extend to or affect any
other existing or any subsequent default or defaults or impair any
rights or remedies consequent thereon.
Any costs of enforcement of any of the bonds or of any
provision of this Ordinance, including reasonable attorney's fees,
shall be paid by the City.
Section 16. That when .the bonds 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 Bondholder upon
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payment of all or a portion of the purchase price in accordance
with the Agreement.
Sale proceeds in the amount necessary to make the
semiannual interest payments due on the bonds on April 15, 1991,
and each April 15 and October 15 thereafter to and including April
15, 1994, shall be applied to the payment of interest on the bonds
on such dates.
The balance of the sale proceeds shall be deposited, as
and when received, into the Sewer Construction Fund identified in
the 1987 Ordinance (the "Construction Fund "). The moneys in the
Construction Fund shall be used for accomplishing the Improvements,
paying expenses incidental thereto, paying interest during
construction and paying the expenses of issuing the bonds approved
in accordance with the Agreement. Moneys may be withdrawn from the
Construction Fund by check or requisition signed by the Finance
Director of the City and co- signed by either the Manager or Finance
Director of the Wastewater Utility.
When the Improvements have been completed and all
required expenses paid and expenditures made from the Construction
Fund for and in connection with the accomplishment of the
Improvements and the financing thereof, this fact shall be
evidenced by a certificate signed by the Manager of the Wastewater
Utility, which certificate shall state, among other things, the
date of the completion and that all obligations payable from the
Construction Fund have been discharged. A copy of the certificate
shall be filed with the depository bank, the Bondholder and the
Department.
Section 17. That in the event the office of Mayor, City
Clerk, Manager of the Wastewater Utility, or 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 function thereof, or by the office or officer upon
whom such powers, obligations and duties shall be imposed by law.
Section 18. That the terms of this Ordinance shall
constitute a contract between the City, the Bondholder and the
Department and no variation or change in the undertaking herein set
forth shall be made while any of the bonds are outstanding unless
consented to in writing by the Bondholder and the Department.
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Section 19. That the 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 Improvements and relating to the operation of
the System and its revenues. Such books shall be available for
inspection by the Bondholder and the Department at reasonable times
and under reasonable circumstances. The City and the 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 Bondholder and the Department. In the
event the City and the Committee fail or refuse to make the audit,
the Bondholder or the Department may have the audit made, and the
cost thereof shall be charged against the Sewer Operation and
Maintenance Fund.
Section 20. The Committee covenants and agrees that it
will maintain the System in good condition and operate it in an
efficient manner and at reasonable cost. While any bonds are
outstanding, the Committee agrees that it 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 above - ground structures of the System against
loss or damage thereto from fire, lightning, tornado, winds, riot,
strike, civil commotion, malicious damage, explosion, and against
loss or damage from any other causes customarily insured against by
private companies engaged in a similar type of business. 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 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,
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
reconstruction, replacement or repair of the System or for
operation and maintenance of the System or for premiums on its
insurance which are derived from sources other than insurance
proceeds or revenues derived from the operation of the System, but
nothing herein shall be construed as preventing the Committee from
doing so.
Section 21. The City agrees that the Bondholder may
pledge the bonds as security for the ADFA Bonds, and the ADFA
Trustee and /or the municipal bond insurer for the ADFA Bonds may
exercise any rights and remedies available to the Bondholder under
this Ordinance or the Agreement while the bonds are pledged and /or
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insured. In addition, the City agrees that while the bonds are
pledged and /or insured, copies of all financial information shall
be furnished to the ADFA Trustee and /or the municipal bond insurer.
Section 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 bonds 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, it shall not affect the validity
of the remainder of the Ordinance.
Section 24. That reference in this Ordinance to
"Bondholder" shall include the original Bondholder or any
registered assign thereof.
Section 25. That all ordinances and resolutions and
parts thereof in conflict herewith are hereby repealed to the
extent of such conflict.
Section 26. That it is hereby ascertained and declared
that the Improvements must be accomplished as soon as possible in
order to protect the adequacy of the System and 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 bonds.
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 in force
from and after its passage.
PASSED: November 20 , 1990.
APPROVED:
n
ATTEST:
ayor Floyd G. Vil ines, III
ty Cler ane Czech
(SEAL)
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