19714ORDINANCE NO. 19,714
AN ORDINANCE AUTHORIZING THE ISSUANCE AND
SALE OF WASTE DISPOSAL REVENUE BONDS;
PROVIDING FOR THE PAYMENT OF THE PRINCIPAL OF
AND INTEREST ON THE BONDS; PRESCRIBING OTHER
MATTERS RELATING THERETO; AND DECLARING AN
EMERGENCY.
WHEREAS, the City of Little Rock, Arkansas (the "City ") owns a waste
collection and disposal system, which includes landfill facilities (the "System "); and
WHEREAS, the Board of Directors of the City ( "the Board ") has determined that
betterments and improvements to the System (the "improvements ") are necessary in order to
dispose of methane gas in accordance with the Environmental Protection Agency's New Source
Performance Standards Regulations and the Arkansas Department of Environmental Quality
Regulations which take effect in 2007; and
WHEREAS, the improvements include particularly, without limitation, the
construction of a methane gas collection system to collect the methane gas from Cells 1 and 2 of
the City's Class 1 landfill located at 10803 Ironton Cutoff in southern Pulaski County (the
"Landfill ") and the construction of a compression and transmission system to dispose of the
methane gas by delivering and selling the gas to an industrial facility in the vicinity of the
Landfill; and
WHEREAS, the City can pay a portion of the costs of the improvements by the
issuance of Waste Disposal Revenue Bonds, Taxable Series 2007, in the principal amount of
$3,400,000 (the "bonds "); and
WHEREAS, the City has made arrangements for the sale of the bonds to Stephens
Inc. (the "Purchaser "), at a price of $3,349,603.40 (principal amount less original issue discount
of $18,096.60 less underwriter's discount of $32,300) (the "Purchase Price "), on a negotiated
basis pursuant to a Bond Purchase Agreement (the "Purchase Agreement ") which has been
presented to and is before this meeting; and
WHEREAS, the Preliminary Official Statement, dated February 21, 2007,
offering the bonds for sale (the "Preliminary Official Statement ") has been presented to and is
before this meeting; and
WHEREAS, the Continuing Disclosure Agreement between the City and The
Citizens Bank, Batesville, Arkansas, as Dissemination Agent (the "Continuing Disclosure
Agreement "), providing for the ongoing disclosure obligations of the City with respect to the
bonds has been presented to and is before this meeting; and
WHEREAS, the City has outstanding its Waste Disposal
Refunding and Improvement Revenue Bonds, Series 2002 (the "2002
Bonds ") authorized by Ordinance No. 18,735, adopted on August 20,
2002 (the "2002 Ordinance "); and
WHEREAS, the parity provisions of the 2002 Ordinance have
been or will be met so that the bonds can be issued on a parity
with the 2002 Bonds;
NOW, THEREFORE, BE IT ORDAINED by the Board of Directors
of the City of Little Rock, Arkansas:
Section 1. The offer of the Purchaser for the purchase
of the bonds from the City at the Purchase Price for bonds bearing
interest at the rates per annum, maturing and otherwise subject to
the terms and provisions hereafter in this Ordinance set forth in
detail be, and is hereby accepted, and the Purchase Agreement, in
substantially the form submitted to this meeting, is approved and
the bonds are hereby sold to the Purchaser. The Mayor is hereby
authorized and directed to execute and deliver the Purchase
Agreement on behalf of the City and to take all action required on
the part of the City to fulfill its obligations under the Purchase
Agreement.
Section 2. The Preliminary Official Statement is hereby
approved and the previous use of the Preliminary Official Statement
by the Purchaser in connection with the sale of the bonds is hereby
in all respects authorized and approved, and the Mayor is hereby
authorized and directed, for and on behalf of the City, to execute
the Preliminary Official Statement and the final Official Statement
as set forth in the Purchase Agreement.
Section 3. The Continuing Disclosure Agreement, in
substantially the form submitted to this meeting, is approved, and
the Mayor is hereby authorized and directed to execute and deliver
the Continuing Disclosure Agreement on behalf of the City. The
Mayor is authorized and directed to take all action required on the
part of the City to fulfill the City's obligations under the
Continuing Disclosure Agreement.
Section 4. Under the authority of the Constitution and
laws of the State of Arkansas (the "State "), including particularly
Title 14, Chapter 232 of the Arkansas Code of 1987 Annotated, City
of Little Rock, Arkansas Waste Disposal Revenue Bonds, Taxable
Series 2007 are hereby authorized and ordered issued in the
principal amount of $3,400,000 for the purpose of financing a
portion of the costs of the improvements, paying expenses of
issuing the bonds and funding a debt service reserve. The bonds
shall bear interest at the rates and shall mature on the dates and
in the amounts as follows:
Year
Principal
Interest
_(May 1)
Amount
Rate
,2008
$145,000
5.375%
2009
160,000
5.300
2010
170,000
5.350
2011
180,000
5.350
2012
185,000
5.400
2013
200,000
5.450
2014
210,000
5.550
2015
220,000
5.600
2016
230,000
5.650
2017
245,000
5.700
2022
1,455,000
5.750
The bonds shall be dated the date of issuance and
delivery to the Purchaser and shall be issuable only as fully
registered bonds without coupons in the denomination of $5,000 or
any integral multiple thereof. Unless the City shall otherwise
direct, the bonds shall be numbered from 1 upward in order of
issuance. Each bond shall have a CUSIP number.
The bonds shall be registered initially in the name of
Cede & Co., as nominee for the Depository Trust Company ( "DTC "),
which shall be considered to be the registered owner of the bonds
for all purposes under this Ordinance, including, without
limitation, payment by the City of principal of, redemption price,
premium, if any, and interest on the bonds, and receipt of notices
and exercise of rights of registered owners. There shall be one
certificated, typewritten bond for each stated maturity date which
shall be immobilized in the custody of DTC with the beneficial
owners having no right to receive the bonds in the form of physical
securities or certificates. DTC and its participants shall be
responsible for maintenance of records of the ownership of
beneficial interests in the bonds by book -entry on the system
maintained and operated by DTC and its participants, and transfers
of ownership of beneficial interests shall be made only by DTC and
its participants, by book - entry, the City having no responsibility
therefor. DTC is expected to maintain records of the positions of
participants in the bonds, and the participants and persons acting
through participants are expected to maintain records of the
purchasers of beneficial interests in the bonds. The bonds as such
shall not be transferable or exchangeable, except for transfer to
another securities depository or to another nominee of a securities
depository, without further action by the City.
If any securities depository determines not to continue
to act as a securities depository for the bonds for use in a book -
entry system, the City may establish a securities depository /book-
entry system relationship with another securities depository. If
the City does not or is unable to do so, or upon request of the
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beneficial owners of all outstanding bonds, the City and the
Trustee (hereinafter identified), after the Trustee has made
provision for notification of the beneficial owners by the then
securities depository, shall permit withdrawal of the bonds from
the securities depository, and authenticate and deliver bond
certificates in fully registered form (in denominations of $5,000
or integral multiples thereof) to the assigns of the securities
depository or its nominee, all at the cost and expense (including
costs of printing definitive bonds) of the City, if the City fails
to maintain a securities depository /book -entry system, or of the
beneficial owners, if they request termination of the system.
Prior to issuance of the bonds, the City shall have
executed and delivered to DTC a written agreement (the
"Representation Letter ") setting forth (or incorporating therein by
reference) certain undertakings and responsibilities of the City
with respect to the bonds so long as the bonds or a portion thereof
are registered in the name of Cede & Co. (or a substitute nominee)
and held by DTC. Notwithstanding such execution and delivery of
the Representation Letter, the terms thereof shall not in any way
limit the provisions of this Section or in any other way impose
upon the City any obligation whatsoever with respect to persons
having interests in the bonds other than the registered owners, as
shown on the registration books kept by the Trustee. The Trustee
shall take all action necessary for all representations of the City
in the Representation Letter with respect to the Trustee to at all
times be complied with.
The authorized officers of the Trustee and the City shall
do or perform such acts and execute all such certificates,
documents and other instruments as they or any of them deem
necessary or advisable to facilitate the efficient use of a
securities depository for all or any portion of the bonds; provided
that neither the Trustee nor the City may assume any obligations to
such securities depository or beneficial owners of bonds that are
inconsistent with their obligations to any registered owner under
this Ordinance.
Interest on the bonds shall be payable on November 1,
2007 and semiannually thereafter on May 1 and November 1 of each
year. Payment of each installment of interest shall be made to the
person in whose name the bond is registered on the registration
books of the City maintained by The Citizens Bank, Batesville,
Arkansas, as Trustee and Paying Agent (the "Trustee ") , at the close
of business on the fifteenth day of the month (whether or not a
business day) next preceding each interest payment date (the
"Record Date "), irrespective of any transfer or exchange of any
such bond subsequent to such Record Date and prior to such interest
payment date.
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Each bond shall bear interest from the payment date next
preceding the date on which it is authenticated unless it is
authenticated on an interest payment date, in which event it shall
bear interest from such date, or unless it is authenticated prior
to the first interest payment date, in which event it shall bear
interest from the date of issuance and delivery to the Purchaser,
or unless it is authenticated during the period from the Record
Date to the next interest payment date, in which case it shall bear
interest from such interest payment date, or unless at the time of
authentication thereof interest is in default thereon, in which
event it shall bear interest from the date to which interest has
been paid.
Only such bonds as shall have endorsed thereon a
Certificate of Authentication substantially in the form set forth
in Section 6 hereof (the "Certificate ") duly executed by the
Trustee shall be entitled to any right or benefit under this
ordinance. No bond shall be valid and obligatory for any purpose
unless and until the Certificate shall have been duly executed by
the Trustee, and the Certificate upon any such bond shall be
conclusive evidence that such bond has been authenticated and
delivered under this Ordinance. The Certificate on any bond shall
be deemed to have been executed if signed by an authorized officer
of the Trustee, but it shall not be necessary that the same officer
sign the Certificate on all of the bonds.
In case any bond shall become mutilated or be destroyed
or lost, the City shall, if not then prohibited by law, cause to be
executed and the Trustee may authenticate and deliver a new bond of
like date, number, maturity and tenor in exchange and substitution
for and upon cancellation of such mutilated bond, or in lieu of and
in substitution for such bond destroyed or lost, upon the owner
paying the reasonable expenses and charges of the City and Trustee
in connection therewith, and, in the case of a bond destroyed or
lost, his filing with the Trustee evidence satisfactory to it that
such bond was destroyed or lost, and of his ownership thereof, and
furnishing the City and Trustee with indemnity satisfactory to
them. The Trustee is hereby authorized to authenticate any such
new bond. In the event any such bond shall have matured, instead
of issuing a new bond, the City may pay the same without the
surrender thereof. Upon the issuance of a new bond under this
Section 6, the City may require the payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the fees and
expenses of the Trustee) connected therewith.
The City shall cause books to be maintained for the
registration and for the transfer of the bonds as provided herein
and in the bonds. The Trustee shall act as the bond registrar.
Each bond is transferable by the registered owner thereof or by his
attorney duly authorized in writing at the principal office of the
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Trustee. Upon such transfer a new fully registered bond or bonds
of the same maturity, of authorized denomination or denominations,
for the same aggregate principal amount will be issued to the
transferee in exchange therefor.
No charge shall be made to any owner of any bond for the
privilege of transfer or exchange, but any owner of any bond
requesting any such transfer or exchange shall pay any tax or other
governmental charge required to be paid with respect thereto.
Except as otherwise provided in the immediately preceding sentence,
the cost of preparing each new bond upon each exchange or transfer
and any other expenses of the City or the Trustee incurred in
connection therewith shall be paid by the City. The City shall not
be required to transfer or exchange any bonds selected for
redemption in whole or in part.
The person in whose name any bond shall be registered
shall be deemed and regarded as the absolute owner thereof for all
purposes, and payment of or on account of the principal or premium,
if any, or interest on any bond shall be made only to or upon the
order of the registered owner thereof or his legal representative,
but such registration may be changed as hereinabove provided. All
such payments shall be valid and effectual to satisfy and discharge
the liability upon such bond to the extent of the sum or sums so
paid.
In any case where the date of maturity of interest on or
principal of the bonds or the date fixed for redemption of any
bonds shall be a Saturday or Sunday or shall be in the State a
legal holiday or a day on which banking institutions are authorized
by law to close, then payment of interest or principal (and
premium, if any) need not be made on such date but may be made on
the next succeeding business day with the same force and effect as
if made on the date of maturity or the date fixed for redemption,
and no interest shall accrue for the period after the date of
maturity or date fixed for redemption.
Section 5. The bonds shall be executed on behalf of the
City by the manual or facsimile signatures of the Mayor and City
Clerk and shall have impressed or imprinted thereon the seal of the
City. The bonds, together with interest thereon, are secured by
and are payable solely from the net revenues derived from the
System which are hereby pledged and mortgaged for the equal and
ratable payment of the bonds. The pledge of Revenues is on a
parity with the pledge in favor of the 2002 Bonds. The bonds and
interest thereon shall not constitute an indebtedness of the City
within any constitutional or statutory limitation.
Section 6. The bonds and the Certificate shall be in
substantially the following form and the Mayor and City Clerk are
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hereby expressly authorized and directed to make all recitals
contained therein:
(Form of Bond)
REGISTERED REGISTERED
No.
Interest Rate:
Dated Date:
Registered
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF PULASKI
CITY OF LITTLE ROCK
WASTE DISPOSAL REVENUE BOND,
TAXABLE SERIES 2007
Owner: Cede & Co.
Principal Amount:
CUSIP No.:
KNOW ALL MEN BY THESE PRESENTS:
Maturity Date:
That the City of Little Rock, County of Pulaski, State of
Arkansas (the "City "), for value received, hereby promises to pay,
but solely from the source as hereinafter provided and not
otherwise, to the Registered Owner shown above upon the
presentation and surrender hereof at the principal corporate office
of The Citizens Bank, Batesville, Arkansas, or its successor or
successors, as Trustee and Paying Agent (the "Trustee "), on the
Maturity Date shown above, the Principal Amount shown above, 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 public and
private debts and to pay by check or draft interest thereon, but
solely from the source as hereinafter provided and not otherwise,
in like coin or currency from the interest commencement date
specified below at the Interest Rate per annum shown above, payable
November 1, 2007 and semiannually thereafter on the first days of
May and November of each year, until payment of such principal sum
or, if this bond or a portion thereof shall be duly called for
redemption, until the date fixed for redemption, and to pay
interest on overdue principal and interest (to the extent legally
enforceable) at the rate borne by this bond. Payment of each
installment of interest shall be made to the person in whose name
this bond is registered on the registration books of the City
maintained by the Trustee at the close of business on the fifteenth
day of the month (whether or not a business day) next preceding
each interest payment date (the "Record Date ") , irrespective of any
transfer or exchange of this bond subsequent to such Record Date
and prior to such interest payment date.
Unless this bond is presented by an authorized
representative of The Depository Trust Company, a New York
corporation ( "DTC"), to the Trustee for registration of transfer,
exchange or payment, and any certificate issued is registered in
the name of Cede & Co. or in such other name as is requested by an
authorized representative of DTC (and any payment is made to Cede
& Co. or to such other entity as is required by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as
the registered owner hereof, Cede & Co., has an interest herein.
This bond shall bear interest from the payment date next
preceding the date on which it is authenticated unless it is
authenticated on an interest payment date, in which event it shall
bear interest from such date, or unless it is authenticated prior
to the first interest payment date, in which event it shall bear
interest from the Dated Date shown above, or unless it is
authenticated during the period from the Record Date to the next
interest payment date, in which case it shall bear interest from
such interest payment date, or unless at the time of authentication
hereof interest is in default hereon, in which event it shall bear
interest from the date to which interest has been paid.
This bond is one of an issue of City of Little Rock,
Arkansas Waste Disposal Revenue Bonds, Taxable Series 2007,
aggregating Three Million Four Hundred Thousand Dollars
($3,400,000) in principal amount (the "bonds "), and is issued for
the purpose of financing a portion of the costs of the acquisition,
construction and equipping by the City of betterments and
improvements to the City's waste collection and disposal system
(the "System "), funding a debt service reserve and paying expenses
incidental thereto and to the authorization and issuance of the
bonds.
The bonds are issued pursuant to and in full compliance
with the Constitution and laws of the State of Arkansas (the
"State "), including particularly Title 14, Chapter 232 of the
Arkansas Code of 1987 Annotated, and pursuant to Ordinance No.
duly adopted on March 6, 2007 (the "Authorizing
Ordinance "), and do not constitute an indebtedness of the City
within any constitutional or statutory limitation. The bonds are
not general obligations of the City, but are special obligations
payable solely from the net revenues derived from the operation of
the System. In this regard, the pledge in favor of the bonds is on
a parity with the City's Waste Disposal Refunding and Improvement
Revenue Bonds, Series 2002 (the "2002 Bonds "). An amount of net
System revenues sufficient to pay the principal of and interest on
the bonds and the 2002 Bonds has been duly pledged and the City has
covenanted to deposit such System revenues into the Bond Account
within the Waste Disposal Revenue Fund being maintained in
accordance with the Authorizing Ordinance. Reference is hereby
made to the Authorizing Ordinance for a detailed statement of the
terms and conditions upon which the bonds are issued, of the nature
and extent of the security for the bonds, and the rights and
obligations of the City, the Trustee and the registered owners of
the bonds. The City has fixed and has covenanted and agreed to
maintain rates for the services of the System which shall be
sufficient at all times to provide for the proper and reasonable
expenses of operation and maintenance of the System and for the
payment of the principal of and interest on the bonds, including
Trustee's fees, as the same become due and payable, and to
establish and maintain a debt service reserve.
The bonds shall be subject to optional and mandatory
sinking fund redemption as follows:
(1) The bonds are subject to redemption at the option of
the City, from funds from any source, on and after May 1, 2014, in
whole at any time or in part on any interest payment date at a
redemption price equal to the principal amount being redeemed plus
accrued interest to the redemption date. If fewer than all of the
bonds shall be called for redemption, the particular maturities of
the bonds to be redeemed shall be selected by the City in its
discretion. If fewer than all of the bonds of any one maturity
shall be called for redemption, the particular bonds or portion
thereof to be redeemed from such maturity shall be selected by lot
by the Trustee.
(2) To the extent not previously redeemed, the bonds
maturing on May 1, 2022 are subject to mandatory sinking fund
redemption by lot in such manner as the Trustee shall determine, on
May 1 in the years and in the amounts set forth below, at a
redemption price equal to the principal amount being redeemed plus
accrued interest to the date of redemption:
Bonds Maturing May 1, 2022
Year
2018
2019
2020
2021
2022 (maturity)
The provisions for
the bonds are subject to
Ordinance which permit the
previously redeemed or for
surrendered to the Trustee.
Principal Amount
$260,000
275,000
290,000
305,000
325,000
mandatory sinking fund redemption of
the provisions of the Authorizing
City to receive credit for bonds
bonds acquired by the City and
E
In case any outstanding bond is in a denomination greater
than $5,000, each $5,000 of face value of such bond shall be
treated as a separate bond of the denomination of $5,000.
Notice of redemption identifying the bonds or portions
thereof (which shall be $5,000 or a multiple thereof) to be
redeemed shall be given by the Trustee, not less than 30 nor more
than 60 days prior to the date fixed for redemption, by mailing a
copy of the redemption notice by first class mail, postage prepaid,
to all registered owners of bonds to be redeemed. Failure to mail
an appropriate notice or any such notice to one or more registered
owners of bonds to be redeemed shall not affect the validity of the
proceedings for redemption of other bonds as to which notice of
redemption is duly given in proper and timely fashion. All such
bonds or portions thereof thus called for redemption and for the
retirement of which funds are duly provided in accordance with the
Authorizing Ordinance prior to the date fixed for redemption will
cease to bear interest on such redemption date.
This bond is transferable by the registered owner hereof
in person or by his at duly authorized in writing at
the principal corporate trust office of the Trustee, but only in
the manner, subject to the limitations and upon payment of the
charges provided in the Authorizing Ordinance, and upon surrender
and cancellation of this bond. Upon such transfer a new fully
registered bond or bonds of the same maturity, of authorized
denomination or denominations, for the same aggregate principal
amount, will be issued to the transferee in exchange therefor.
This bond is issued with the intent that the laws of the State
shall govern its construction.
The City and the Trustee may deem and treat the
registered owner hereof as the absolute owner hereof for the
purpose of receiving payment of or on ac.count of principal hereof
and premium, if any, hereon and interest due hereon and for all
other purposes, and neither the City nor the Trustee shall be
affected by any notice to the contrary.
The bonds are issuable only as fully registered bonds in
the denomination of $5,000, and any integral multiple thereof.
Subject to the limitations and upon payment of the charges provided
in the Authorizing ordinance, fully registered bonds may be
exchanged for a like aggregate principal amount of fully registered
bonds of the same maturity of other authorized denominations.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all
acts, conditions and things required to exist, happen and be
performed precedent to and in the issuance of the bonds do exist,
have happened and have been performed in due time, form and manner
as required by law; that the indebtedness represented by the bonds,
together with all obligations of the City, does not exceed any
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constitutional or statutory limitation; and that the above referred
to revenues pledged to the payment of the principal of and premium,
if any, and interest on the bonds as the same become due and
payable will be sufficient in amount for that purpose.
This bond shall not be valid or become obligatory for any
purpose or be entitled to any security or benefit under the
Authorizing Ordinance until the Certificate of Authentication
hereon shall have been signed by the Trustee.
IN WITNESS WHEREOF, the City of Little Rock, Arkansas has
caused this bond to be executed by its Mayor and City Clerk and its
corporate seal to be impressed or imprinted on this bond, all as of
the Dated Date shown above.
ATTEST:
(SEAL)
City Clerk
CITY OF LITTLE ROCK, ARKANSAS
to
(Form of Trustee's Certificate)
Mayor
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This bond is one of the bonds designated Taxable Series
2007 in and issued under the provisions of the within mentioned
Authorizing Ordinance.
Date of Authentication:
THE CITIZENS BANK
Batesville, Arkansas
Trustee
to
Authorized Signature
(A Form of Assignment shall be attached to the bonds.)
Section 7. The City covenants that it will continuously
operate the System as a revenue producing undertaking. The City
covenants and agrees that while any of the bonds are outstanding it
will fix, charge and collect user fees and tipping fees sufficient
to produce gross System revenues in any fiscal year sufficient to
pay (i) operation and maintenance expenses of the System, (ii) each
year's required payments of principal, premium, if any, and
interest on the bonds and all other bonds or interest bearing
obligations secured by a pledge of System revenues ( "System
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Bonds ") , (iii) to restore debt service reserve funds to their
required levels, if necessary, and (iv) to make the required
deposits into the Rebate, Closure and Post - Closure Accounts
(hereinafter identified). If necessary, the rates will be
increased to produce Net Revenues (Net Revenues being defined as
gross System revenues .less the expenses of operation and
maintenance of the System, including all expense items, except
depreciation and amortization expenses, properly attributable to
the operation and maintenance of the System, under generally
accepted accounting principles applicable to municipal utility
systems), which are at least equal to 1100 of the current year's
debt service on the outstanding System Bonds. For purposes of this
paragraph, the current year's debt service shall not include the
principal of temporary bonds or bond anticipation notes for which
refinancing plans exist.
Section 8. The Treasurer of the City shall be custodian
of the gross revenues derived from the operation of the System and
that officer shall give bond for the faithful discharge of his
duties as such custodian. All System revenues shall be deposited
by or on behalf of the City Treasurer into a special fund
heretofore created and designated "Waste Disposal Revenue Fund"
(the "Revenue Fund ") . The Revenue Fund and the other special funds
hereafter in this Ordinance provided for or referred to shall be
maintained in such depository or depositories for the City as may
be lawfully designated from time to time by the City; subject,
however, to the giving of security as now or hereafter may be
required by law, and provided that such depositories shall hold
membership in the Federal Deposit Insurance Corporation (the
"FDIC "). All deposits shall be in the name of the City and shall
be so designated as to indicate the particular fund or account to
which System revenues belong. Payments from the respective funds
or accounts held by the City shall be made by check or voucher,
signed by either the Mayor, the City Treasurer, the City Manager or
the Assistant City Manager, and drawn on the depository. Each
check or voucher shall be supported by appropriate documentation
specifying the purpose of the expenditure. Any deposit in excess
of the amount insured by the FDIC shall be secured by securities
authorized by law to secure public funds, unless invested as herein
authorized.
Section 9. The following accounts shall be maintained
within the Revenue Fund:
(a) Operation and Maintenance Account;
(b) Bond Account;
(c) Closure Account;
(d) 2007 Debt Service Reserve Account;
(e) Post - Closure Account;
(f) Capital Reserve Account; and
(g) Surplus Account.
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Section 10. Revenues from the System in the Revenue
Fund shall be applied at the times, in the amounts, and in the
priority, as follows:
FIRST, the City shall deposit monthly into the Operation and
Maintenance Account revenues from the System in an amount
sufficient to pay all operating expenses and to make
reasonable provision for the repair and maintenance of the
System.
SECOND, the City shall deposit into the Bond Account revenues
from the System on the first business day of each month until
all outstanding bonds and Series 2002 Bonds, with interest
thereon, have been paid in full or provision made for such
payment, a sum equal to 1/6 of the next installment of
interest on the bonds and the Series 2002 Bonds plus a sum
equal to 1/12 of the next installment of principal of the
bonds and the Series 2002 Bonds due at maturity or upon
mandatory sinking fund redemption. The City shall receive a
credit against monthly payments to be made into the Bond
Account from System revenues (1) from interest earnings
thereon and (2) interest earnings deposited therein from the
2002 Debt Service Reserve Fund (hereinafter identified).
THIRD, if at any time the amounts on deposit in either the
Debt Service Reserve Fund for the Series 2002 Bonds (the
"2002 Debt Service Reserve Fund ") or the 2007 Debt Service
Reserve Account created hereby are reduced to an amount less
than the required level, the City shall, from moneys in the
Revenue Fund, immediately deposit into the appropriate Fund
or Account amounts required to replenish the appropriate Fund
or Account to its required level in twelve (12 ) equal monthly
installments. The obligations to make payments into the 2002
Debt Service Reserve Fund and the 2007 Debt Service Reserve
Account shall rank on a parity of security.
FOURTH, after payment of items FIRST through THIRD above, all
remaining System revenues in the Revenue Fund shall be used
as set forth in Sections 11 to 15 hereof.
When the moneys held in the Bond Account, the 2002 Debt
Service Reserve Fund and the 2007 Debt Service Reserve Account
shall be and remain sufficient to pay the principal of, premium, if
any, and interest on all of the bonds and the Series 2002 Bonds
then outstanding plus Trustee's and Paying Agent's fees and fees of
the trustee and paying agent for the Series 2002 Bonds, the City
shall not be obligated to make any further payments into the Bond
Account.
It shall be the duty of the City to cause to be
withdrawn from the Bond Account no later than one business day
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before the due date of any principal and /or interest on any bond or
Series 2002 Bond, at maturity or redemption prior to maturity, and
deposited with the Trustee or the trustee for the Series 2002 Bonds
as appropriate, an amount equal to the amount of such bond or
Series 2002 Bond and interest due thereon for the sole purpose of
paying the same, together with the Trustee's and Paying Agent's fee
and the fee of the trustee and paying agent for the Series 2002
Bonds. No withdrawal of funds from the Bond Account shall be made
for any other purpose except as otherwise authorized in this
Ordinance.
If System revenues are insufficient to make the required
payment on the first business day of the following month into the
Bond Account, the amount of any such deficiency in the payment made
shall be added to the amount otherwise required to be paid into the
Bond Account on the first business day of the next month.
The bonds shall be specifically secured by a pledge of
the net revenues of the System on a parity with the Series 2002
Bonds. This pledge in favor of the bonds is hereby irrevocable
made according to the terms of this Ordinance, and the City and its
officers and employees shall execute, perform and carry out the
terms thereof in strict conformity with the provisions of this
Ordinance.
Section 11. The 112007 Debt Service Reserve Account"
shall be maintained in an amount equal to the maximum annual
principal and interest requirement on the bonds or 10% of the
original proceeds of the bonds (principal amount less original
issue discount), whichever is lesser ( "Required Level "). Should
the 2007 Debt Service Reserve Account become impaired or be reduced
below the Required Level, the City shall make additional monthly
payments from the Revenue Fund until the impairment or reduction is
corrected within a twelve month period. Monthly payments into the
2007 Debt Service Reserve Account, if necessary, shall be made from
the Revenue Fund on the first business day of each month after the
required deposits into the Operation and Maintenance Account and
the Bond Account have been made. Moneys held for the credit of the
2007 Debt Service Reserve Account which exceed the Required Level
shall be withdrawn by the City from the 2007 Debt Service Reserve
Account and deposited into the Revenue Fund. The 2007 Debt Service
Reserve Account shall be initially funded with proceeds of the
bonds.
If for any reason at any time there shall be a
deficiency in the payments made into the Bond Account so that there
are unavailable sufficient moneys to pay the principal of and
interest on the bonds as the same become due, any sums then held in
the 2007 Debt Service Reserve Account shall be used by the City to
the extent necessary to pay the principal and interest, but the
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2007 Debt Service Reserve Account shall be reimbursed in the manner
described above.
The obligations to make required deposits into the 2002
Debt Service Reserve Fund and the 2007 Debt Service Reserve Account
shall rank on a parity of security and if System revenues remaining
after required deposits are made into the Operation and Maintenance
Account and the Bond Account are insufficient to make the required
deposits in full, the amount deposited into the 2002 Debt Service
Reserve Fund and the 2007 Debt Service Reserve Account shall be
reduced proportionately.
Section 12. After making the required payments into the
Operation and Maintenance Account, Bond Account, 2002 Debt Service
Reserve Fund and 2007 Debt Service Reserve Account, there shall be
paid from System revenues for deposit into the Closure Account
annually on the last business day of each year while any of the
bonds are outstanding the amount required by the Solid Waste
Disposal Facility Criteria of the United States Environmental
Protection Agency, 40 C.F.R. Part 258, and any regulations
amendatory thereto. The moneys in the Closure Account shall be
used solely for the purpose of paying the cost of closing the
System landfills or federal or state mandated cleanup. The Trustee
shall have no lien on or security interest in the Closure Account
with respect to the payment of the principal of and interest on the
bonds or any fees, charges or expenses due to the Trustee under
this Ordinance.
In lieu of depositing moneys into the Closure Account,
the requirements of this Section may be satisfied by depositing
with the Trustee a surety bond, letter of credit or insurance in
the principal amount equal to the requirement, or portion, being
satisfied, as set forth in 40 C.F.R. Part 258, and any regulation
amendatory thereto.
Section 13. After making the required payments into the
Operation and Maintenance Account, Bond Account, 2002 Debt Service
Reserve Fund, 2007 Debt Service Reserve Account and Closure
Account, there shall be paid from System revenues for deposit into
the Post - Closure Account, annually on the last business day of each
year while any of the bonds are outstanding the amounts required by
the Solid Waste Disposal Facility Criteria of the United States
Environmental Protection Agency, 40 C.F.R. Part 258, and any
regulations amendatory thereto. The moneys in the Post - Closure
Account shall be used solely for the purpose of paying the cost of
post- closure care of the System landfills or federal or state
mandated cleanup. The Trustee shall have no lien on or security
interest in the Post - Closure Account with respect to the payment of
the principal of and interest on the bonds or any fees, charges or
expenses due to the Trustee under this Ordinance.
E61
In lieu of depositing moneys into the Post - Closure
Account, the requirements of this Section may be satisfied by
depositing with the Trustee a surety bond, letter of credit or
insurance as set forth in 40 C.F.R. Part 258, and any regulations
amendatory thereto.
Section 14. After making the required payments into the
Operation and Maintenance Account, Bond Account, 2002 Debt Service
Reserve Fund, 2007 Debt Service Reserve Account, Closure Account,
Post - Closure Account and any other accounts required by the 2002
Ordinance, such as the Rebate Account, the Treasurer may deposit
moneys, into the Capital Reserve Account. The moneys in the
Capital Reserve Account shall be used solely for the purposes of
funding replacements of capital equipment for the System, except
that moneys in the Capital Reserve Account shall be used to the
extent necessary at any time to prevent the default in the payment
of the principal and interest on the bonds and the Trustee's and
Paying Agent's fees.
Section 15. Any System revenues remaining after making
all disbursements and providing for all accounts and funds
described above shall be deposited into the Surplus Account.
Moneys in the Surplus Account may be used, at the option of the
City, (i) for the redemption of System Bonds, as the City in its
discretion shall determine, prior to maturity in accordance with
their respective redemption provisions; (ii) for constructing
extensions, betterments and improvements to the System; (iii) to
cure any deficiency in the other accounts in the Revenue Fund; or
(iv) for the transfer to the General Fund of the City for use for
any other lawful municipal purpose authorized by the City.
Section 16. So long as any of the bonds are
outstanding, the City shall not issue or attempt to issue any bonds
claimed to be entitled to a priority of lien on revenues of the
System over the lien securing the bonds. The City reserves the
right to issue additional bonds to finance or pay the cost of
making any future extensions, betterments or improvements to the
System, or to refund outstanding System Bonds, but the City shall
not authorize or issue any such additional bonds ranking on a
parity with the bonds unless and until either: (1) there shall have
been procured and filed with the City Clerk and the Trustee a
statement by an independent certified public accountant
( "Accountant ") reciting the opinion, based upon necessary
investigation, that the net revenues of the System for the fiscal
year immediately preceding the fiscal year in which it is proposed
to issue such additional bonds shall equal not less than 110% of
the average annual principal and interest requirements on all the
then outstanding System Bonds and the additional bonds then
proposed to be issued; or (2) there shall have been procured and
filed with the City Clerk and the Trustee a statement by an
Accountant reciting the opinion, based upon necessary
16
investigation, that the net revenues of the System for the next
ensuing fiscal year as reflected by a certificate of a duly
qualified consulting engineer or rate analyst not in the regular
employ of the City and approved by the Trustee, and taking into
consideration any rate increase, shall equal not less then 110% of
the average annual principal and interest requirements on all the
outstanding System Bonds and the additional bonds then proposed to
be issued. The term "net revenues" shall mean gross revenues of
the System less the expense of operation and maintenance of the
System, including all expenses items, except depreciation and
amortization expenses, properly attributable to the operation of
the System, under generally accepted accounting principles
applicable to municipality systems. In making the computation set
forth in (1) above, the City, and the Accountant on behalf of the
City, may treat any increase in rates for the System enacted
subsequent to the first day of the preceding fiscal year as having
been in effect throughout such fiscal year and may include in gross
revenues for such fiscal year the amount that would have been
received based on such opinion or report, had the increase been in
effect throughout such fiscal year.
Section 17. The City covenants and agrees that it will
maintain the System in good condition and operate the same in an
efficient manner and at reasonable cost. While any of the bonds
are outstanding, the City 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 to assume the risk thereof,
properties of the System, to the extent that such properties would
be covered by insurance by private companies engaged in similar
types of businesses, against loss or damage thereto from fire and
other causes covered by extended coverage insurance. Satisfactory
evidence of said 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 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 Revenue Fund. Nothing shall be
construed as requiring the City to expend any moneys for operation
and maintenance of the System or for premiums on its insurance
which are derived from sources other than the operation of the
System, but nothing shall be construed as preventing the City from
doing so.
Section 18. The bonds shall be subject to redemption
prior to maturity in accordance with the terms set out in the bond
form.
17
Section 19. The City will keep 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 operation of the System, and such
books shall be available for inspection by the registered owner of
any of the bonds at reasonable times and under reasonable
circumstances. The City will have these records audited by an
Accountant at least once each year, and a copy of the audit shall
be delivered to the Trustee and made available to the registered
owners of the bonds. In the event that the City fails or refuse to
make the audit, the Trustee, or any registered owner of the bonds,
may have the audit made at the expense of the Revenue Fund.
Section 20. Any bond shall be deemed to be paid within
the meaning of this Ordinance when payment of the principal of and
interest on such bond (whether at maturity or upon redemption as
provided herein, or otherwise), either (i) shall have been made or
caused to be made in accordance with the terms thereof, or (ii)
shall have been provided for by irrevocably depositing with the
Trustee, in trust and irrevocably set aside exclusively for such
payment (1) cash sufficient to make such payment and /or (2) United
States Treasury Certificates, Notes and Bonds (including State and
Local Government Series) ( "Defeasance Securities "), maturing as to
principal and interest in such amounts and at such times as will
provide sufficient moneys to make such payment, and all necessary
and proper fees, compensation and expenses of the Trustee shall
have been paid or the payment thereof provided for to the
satisfaction of the Trustee.
On the payment of any such bonds within the meaning of
this Ordinance, the Trustee shall hold in trust, for the benefit of
the owners of such bonds, all such moneys and /or Defeasance
Securities.
When all the bonds shall have been paid within the
meaning of this Ordinance and the Trustee has been paid its fees
and expenses, the Trustee shall take all appropriate action to
cause (i) the pledge and lien of this Ordinance to be discharged
and cancelled, and (ii) all moneys held by it pursuant to this
Ordinance and which are not required for the payment of such bonds
to be paid over or delivered to or at the direction of the City.
In determining the sufficiency of the deposit of Defeasance
Securities there shall be considered the principal amount of such
Defeasance Securities and interest to be earned thereon until the
maturity of such Defeasance Securities.
Section 21. (a) If there be any default in the payment
of the principal of, premium, if any, or interest on any of the
bonds, or if the City defaults in the performance of any of the
other covenants contained in this Ordinance, the Trustee may, and
upon the written request of the registered owners of not less than
IM
loo in principal amount of the then outstanding bonds, shall, by
proper suit, compel the performance of the duties of the officials
of the City under the laws of Arkansas. In the case of a default
in the payment of the principal of, premium, if any, and interest
on any of the bonds, the Trustee may and upon written request of
the registered owners of not less than 10% in principal amount of
the then outstanding bonds, 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 registered
owners of the bonds 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, maintenance and repair and to pay any bonds
outstanding and to apply the System revenues in conformity with the
laws of Arkansas and with this Ordinance. When defaults in such
payments have been cured, the custody and operation of the System
shall revert to the City.
(b) No registered owner of any of the outstanding bonds
shall have any right to institute any suit, action, mandamus or
other proceeding in equity or at law for the protection or
enforcement of any power or right unless such owner 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 registered owners of not less than 10% in principal
amount of the bonds then outstanding shall have made written
request of the Trustee after the right to exercise such power 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 granted to the Trustee, 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. Such notification, request and offer of indemnity
are, at the option of the Trustee, conditions precedent to the
execution of any remedy. No one or more registered owners of the
bonds 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 thereunder except the manner
herein described. All proceedings at law or in equity shall be
instituted, had and maintained in the manner herein described and
for the benefit of all registered owners of the outstanding bonds.
(c) No remedy conferred upon or reserved to the Trustee
or to the registered owners of the bonds is intended to be
exclusive of any other remedy or remedies, and every such remedy
shall be cumulative and shall be in addition to every other remedy
given under this Ordinance or by law.
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(d) The Trustee may, and upon the written request of
the registered owners of not less than 50% in principal amount of
the bonds 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.
(e) All rights of action under this Ordinance or under
any of the bonds, enforceable by the Trustee, may be enforced by it
without the possession of any of the bonds, and any such suit,
action or proceeding instituted by the Trustee shall be brought in
its name for the benefit of all the registered owners of such
bonds, subject to the provisions of this Ordinance.
(f) No delay or omission of the Trustee or of any
registered owners of the bonds 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 and registered owners
of the bonds, respectively, may be exercised from time to time and
as often as may be deemed expedient.
(g) In any proceeding in which any plaintiff bondholder
prevails to enforce the provisions of this Ordinance, any plaintiff
bondholder shall be entitled to recover from the City all costs of
such proceeding, including reasonable attorneys' fees.
Section 22. (a) The terms of this Ordinance shall
constitute a contract between the City and the registered owners of
the bonds and no variation or change in the undertaking herein set
forth shall be made while any of these bonds are outstanding,
except as hereinafter set forth in subsections (b) and (c).
(b) The Trustee may consent to any variation or change
in this Ordinance without the consent of the owners of the
outstanding bonds ( i ) in order to cure any ambiguity or correct any
defect herein as the City may deem necessary or desirable and not
inconsistent herewith or (ii) in order to make any other variation
or change which the Trustee determines shall not adversely affect
the interests of the owners of the bonds.
(c) The owners of not less than 75% in aggregate
principal amount of the bonds 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
adoption by the City of such ordinance supplemental hereto as shall
be necessary or desirable for the purpose of modifying, altering,
20
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 contained
in this Section shall permit or be construed as permitting (i) an
extension of the maturity of the principal of or the interest on
any bond, or (ii) a reduction in the principal amount of any bond
or the rate of interest thereon, or (iii) the creation of a lien or
pledge superior to the lien and pledge created by this Ordinance,
or (iv) a privilege or priority of any bond or bonds over any other
bond or bonds, or (v) a reduction in the aggregate principal amount
of the bonds required for consent to such supplemental ordinance.
Copies of any amendments to this Ordinance authorized by this
subparagraph (c) shall be sent by the City to S &P and Moody's.
Section 23. When the bonds have been executed and
sealed as herein provided, they shall be authenticated by the
Trustee, and the Trustee shall deliver the bonds to the Purchaser
upon payment of the Purchase Price. The expenses of issuing the
bonds as set forth in the delivery instructions to the Trustee
signed by the Mayor and City Clerk shall also be paid from the
Purchase Price (the "Delivery Instructions ") . The amount necessary
to fund the 2007 Debt Service Reserve Account shall be deposited
into that fund. The remainder of the Purchase Price shall be
remitted to the City for deposit into an account of the City hereby
created and designated "Waste Disposal Revenue Bond Construction
Fund, Taxable Series 2007 ( "Construction Fund ") . The moneys
deposited into the Construction Fund shall be disbursed in payment
of the costs of accomplishing the improvements or other extensions,
betterments or improvements to the System subsequently approved by
the Board, paying necessary expenses incidental thereto and paying
expenses of issuing the bonds. Interest earnings on the
Construction Fund may be transferred to the Revenue Fund.
Section 24. In the event the office of Mayor, City
Clerk, City Treasurer, City Manager, Assistant City Manager or
Board 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 25. The Trustee shall only be responsible for
the exercise of good faith and reasonable prudence in the execution
of its trust. The recitals in this Ordinance and in the face of
01
the bonds are the recitals of the City and not of the Trustee. The
Trustee shall not be required to take any action as Trustee unless
it shall have been requested to do so in writing by the owners of
not less than 10% in principal amount of the bonds 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 60 days' notice
in writing to the City Clerk and to the registered owners of the
bonds, and the City, so long as the City is not in default under
this Ordinance, or the majority in value of the registered owners
of the outstanding bonds 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 City shall
appoint a new Trustee, such appointment to be evidenced by a
written instrument or instruments filed with the City Clerk. Every
successor Trustee appointed pursuant to this Section shall be a
trust company or bank in good standing, duly authorized to exercise
trust powers and subject to examination by federal or state
authority. 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 owners
of the bonds agree. Such written acceptance shall be filed with
the City Clerk and a copy thereof shall be placed in the bond
transcript. Any successor Trustee shall have all the powers herein
granted to the original Trustee. The Trustee's resignation shall
become effective upon the acceptance of the trusts by the successor
Trustee.
Section 26. (a) Moneys held for the credit of the 2007
Debt Service Reserve Account shall be invested and reinvested at
the direction of the City Treasurer in (i) direct obligations of
the United States of America (including obligations issued or held
in book -entry form on the books of the Department of the Treasury,
and CATS and TIGRS) or obligations the principal of and interest on
which are unconditionally guaranteed by the United States of
America ( "Government Securities "), (ii) certificates of deposit of
banks which are members of the FDIC or (iii) other investments as
may, from time to time, be permitted under Arkansas law and under
the City's investment policy (currently established by Resolution
No. 10,609) (collectively, the "Eligible Investments), all of which
shall mature, or which shall be subject to redemption by the holder
thereof, at the option of such holder, not later than five (5)
years after the date of investment.
(b) Moneys held for the credit of the Construction Fund
or any other fund or account shall be continuously invested and
reinvested pursuant to the direction of the City Treasurer in
Eligible Investments, which shall mature, or which shall be subject
to redemption by the holder thereof, at the option of such holder,
Wo
not later than the date or dates when the moneys held for the
credit of the particular fund will be required for purposes
intended.
(c) Obligations so purchased as an investment of moneys
in any fund shall be deemed at all times to be a part of such fund
and the interest accruing thereon and any profit realized from such
investments shall be credited to such fund or account, and any loss
resulting from such investment shall be charged to such fund or
account.
(d) Moneys so invested in certificates of deposit of
banks or other bank deposits shall be continuously secured by
Government Securities or other securities authorized by Arkansas
law to secure public funds to the extent that the deposits are not
insured by the FDIC.
(e) All investments and deposits for the benefit of the
2007 Debt Service Reserve Account shall have a par value (or market
value when less than par) , exclusive of accrued interest at all
times at least equal to the amount of money credited to such funds
and shall be made in such a manner that the money required to be
expended from any fund will be available at the proper time or
times.
(f) Investments of moneys in the 2007 Debt Service
Reserve Account shall be valued in terms of current market value as
of the last day of each year, except that direct obligations of the
United States (State and Local Government Series) in book -entry
form shall be continuously valued at par or face principal amount.
(g) Notwithstanding that Eligible Investments include
investments from time to time permitted under Arkansas law and
under the City's investment policy, Eligible Investments for the
Bond Account shall be limited to the securities described in
Section 30(b) of the Series 2002 Ordinance.
Section 27. It is covenanted and agreed by the City
with the registered owners of the bonds, or any of them, that the
City will faithfully and punctually perform all duties with
reference to the System required by the Constitution and laws of
the State, including the charging and collecting of reasonable and
sufficient rates lawfully established for services rendered by the
System, the segregating of System revenues as herein required, and
the applying of System revenues to the respective funds or accounts
herein created or referred to.
Section 28. The City covenants that it will not sell or
lease the System, or any substantial portion thereof; provided,
however, that nothing herein shall be construed to prohibit the
City from making such dispositions of properties of the System and
23
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. All revenues derived
from such dispositions shall be deposited into the Revenue Fund.
Section 29. The requirements of Ordinance No. 15,249,
as they may relate to the sale of the bonds, are hereby waived.
Section 30. 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 this Ordinance.
Section 31. All ordinances and resolutions or parts
thereof, in conflict herewith are hereby repealed to the extent of
such conflict.
Section 32. It is hereby ascertained and declared that
the improvements must be accomplished as soon as possible in order
to make the System adequate for the needs of the City and its
inhabitants, without which the life, health, safety and welfare
thereof are jeopardized, and that the issuance of the bonds and the
taking of the other action authorized by this Ordinance is
necessary for the accomplishment thereof. 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.
•.� . X11
PASSED:
S
Na cy Wood City Clerk
Approved as to form:
s 4-0� A4. A"
Tom Carpenter, City At rney
24
2007.
s
Mark Stodola, Mayor
CERTIFICATE
The undersigned, City Clerk of the City of Little Rock,
Arkansas, hereby certifies that the foregoing pages are a true and
perfect copy of Ordinance No. , adopted at a regular session
of the Board of Directors of the City of Little Rock, Arkansas,
held at the regular meeting place of the City at o'clock p.m.,
on the day of , 2007, and that the Ordinance is
of record in Ordinance Record Book No. at page , now
in my possession.
(SEAL)
GIVEN under my hand and seal on this
, 2007.
25
City Clerk
day of