12633ORDINANCE NO. 12,633
AN ORDINANCE AUTHORIZING AN AGREEMENT BY AND
BETWEEN THE CITY OF LITTLE ROCK, ARKANSAS AND THE
DEPARTMENT OF POLLUTION CONTROL AND ECOLOGY
PURSUANT TO THE PROVISIONS OF ACT NO. 108 OF
THE ACTS OF ARKANSAS OF 1971, AS AMENDED; PRE-
SCRIBING OTHER MATTERS RELATING THERETO; AND
DECLARING AN EMERGENCY.
BE IT ORDAINED by the Board of Directors of the City of Little
Rock, Arkansas:
Section I. That pursuant to the provisions of Section 18 of Act
No. 108 of the Acts of Arkansas of 1971, as amended, the Mayor and
City Clerk be, and they are hereby, authorized and directed to enter
Into an Agreement with the. Department of Pollution Control and Ecology
(of the State of Arkansas) , with the form and contents of the Agreement
which is made a part hereof being as follows:
CC C'
G'3
AGREEMENT
This AGREEMENT entered into this day of ,
1972, by and between the City of Little Rock, Arkansas, a city of the
first class under the laws of the State of Arkansas (the "City ") and the
Department of Pollution Control and Ecology (of the State of Arkansas),
an agency organized under and existing pursuant to the laws of the State
of Arkansas (the "Department ") ;
WITNESSETH:
WHEREAS, the City has undertaken the construction of extensions,
betterments and improvements (the "improvements ") to the Sanitary Sewer
System of the City (the "System ") , which improvements include a water
pollution control project a portion of which 1s eligible for federal assis-
- tance under the provisions of 33 U. S. C.A. § 1151 , et seq. (the eligible
portion being herein called the "Project "), as defined in Act No. 108 of.
1971, as amended ( "Act No. 108 "); and
WHEREAS, the total estimated costs of accompltshirig the Project
amount to $5,665,208, a portion of which will be provided by federal
assistance, and a portion will be provided by a State Grant from the De.-
partment and the remaining portion will be provided by the City from
available funds; and
WHEREAS, the City has applied to the Department for a grant in
an amount not to exceed $1,500,000 (the "State Grant ")., which will be
funded by Department Bonds (hereinafter identified); and
WHEREAS, the purpose of this Agreement is to set forth the terms
amid conditions pertaining to the accomplishment of the Project, to the
State Grant -and to the sale and issuance of the Department Bonds and
other' matters lricldental thereto.
Page 2
NOW, THEREFORE, in consideration of the mutual covenants and
obligations herein set forth and other good and valuable consideration,
receipt of which is hereby acknowledged, the parties hereto agree as
follows:
Section 1. (a) The Department hereby accepts the application
of the City for the State Grant and, subject to the provisions of Act No.
108 and compliance by the City with the 'Provisions thereof and of this
Agreement, agrees to sell and issue revenue bonds under Act No. 108
(the "Department Bonds ") in an aggregate principal amount sufficient to
fund the State Grant. The City may provide interim financing for that
portion of the cost of the Project (or any portion thereof) that is antici-
pated to be paid from the State Grant by the issuance of Sewer Revenue Bonds
(Interim) (the "City's Interim Bonds ") and all or the necessary portion of the
State Grant may be used to retire the City's Interim Bonds.
(b) The Department Bonds, as provided in Act No. 108, shall be
authorized by resolution of the Department (the "authorizing resolution "),
duly adopted. The authorizing resolution shall set forth the details of
the Department Bonds, the nature and extent of the security for the De-
partment Bonds and the rights and obligations of the Department, the
trustee for the holders of the Department Bonds (which shall be named
In the authorizing resolution) and the holders of the Department Bonds.
As requested by the City by resolution adopted and approved on the
day of , 1972 ( a certified copy of which is attached here-
to as Exhibit A) the Department Bonds shall be sold at public sale and
Issued In the manner and upon the terms and conditions specified by the
City, subject to the approval of the Department as set forth in the autho-
rizing resolution.
Page 3
(c) The Department Bonds shall be secured by a pledge of and
shall be payable solely from revenues derived from the operation of
the System. The City has outstanding an issue of Sewer Revenue
Bonds, dated February 1, 1966 (the "City Bonds "). The Department
Bonds shall be issued on a parity of pledge and security with the
City Bonds If the parity requirements of the ordinance authorizing
the City Bonds are met at the time of issuance of the Department Bonds.
If such parity requirements are not met the Department Bonds shall be
subordinate to the lien, pledge and security of the City Bonds.
Section 2. The City has, by Ordinance No. adopted
and approved on the day of , 1972, levied a
Water Quality Control Charge upon users of the System (a certified
copy of which is attached hereto as Exhibit B). The City covenants
to maintain the Water Quality Control Charge at such level that it
will produce in each year revenues at least equal to 125% of the maxi-
mum annual debt service requirements (principal and interest) of the
Department Bonds, and the City covenants to increase the Water
Quality Control Charge from time to time as and if necessary to produce
revenues in such amounts. The Water Quality Control Charge shall be
levied and collected at the same time and in the same manner as other
fees and charges levied and collected -for the services and facilities
of the System. So long as any of the Department Bonds are outstanding,
all revenues derived from the Water Quality Control Charge shall be paid
over to the Department on or before the first business day of each month.
Payment of the revenues derived from the Water Quality Control Charge
shall be made to the Department by making payment directly to the Paying
Agent of the Department Bonds for deposit in the Bond Fund.
Page 4
Section 3. All revenues derived from the Water Quality Control
Charge in excess of the amount necessary to provide for the payment of
the principal of, interest on and Paying Agent's fees in connection with
the Department Bonds, and to establish and maintain a debt service
reserve in the required amount, shall be remitted by the Department
to the City from time to time for deposit In the Sewer Fund of the City
being maintained pursuant to the provisions of the Authorizing Ordinance
of the City Bonds unless the City shall request the Department in
writing to retain the surplus and use it to redeem Department Bonds.
The Department shall include the substance of this Section 3 In the autho-
rizing resolution.
Section 4. All covenants of the City to the holders of the City
Bonds set forth in Ordinance No. 11, 695, adopted and approved on the
20th day of December, 1965 (the "Authorizing Ordinance " -of the City
Bonds, a copy of which is attached hereto as Exhibit C)., including,
without limitation, those pertaining to the continued operation of the
System as a revenue product ng undertaking, those pertaining to the
levy and collection of charges, those pertaining to the handling and dis-
position of revenues derived from the operation of the System and those
pertaining to the issuance of additional bonds (as set forth In detail in
the Authorizing Ordinance of the City Bonds) , shall be extended to and
shall inure to the benefit and protection of the Department and the holders
of the Department Bonds, to the end that the pledge of revenues to the
Department Bonds may be specifically enforced by the Department, and /or
by the Trustee for the holders of the Department Bonds.
Section 5. All contracts for construction of the Project, or any
portion thereof, must be approved by the Department prior to their execution
by the City.
4 � '
Page 5
Section 6. The provisions of Act No. 108 and the Rules and
Regulations of the Department in implementation thereof are incorporated
herein by this reference and are hereby made a part of this Agreement.
Section 7. The provisions of this Agreement are hereby. declared
to be severable. If any provision hereof shall be held to be Invalid,
such holding shall not affect the remainder hereof.
WHEREFORE, the parties have hereunto set their hands and seals
as of thedate hereinabove first written.
CITY OF LITTLE ROCK, ARKANSAS
ATTEST:
BY
May
City Clerk
(SEAL)
ATTEST:
Director
(SEAL)
DEPARTMENT OF POLLUTION CONTROL
AND ECOLOGY
By
Chairman, Commission on
Pollution Control and Ecology
Page 6
Section 2. That the Mayor and City Clerk be, and they are
hereby, authorized to wecute and deliver for and on behalf of the City
the Agreement and to take all action necessary to perform all obligations
and realize all rights of the City set forth therein.
Section 3. It is hereby ascertained and declared that State Grant
funds as provided for In the Agreement are Immediately necessary In
connection with the financing of improvements to the Sanitary Sewer
System of the City in order to preserve the health and welfare of the
Inhabitants of the City, that the execution and delivery of the Agreement
is a prerequisite to the obtaining of the State Grant funds, and it is,
therefore, declared that an emergency exists requiring this Ordinance
to take effect and be in force from and after Its adoption for the preser-
vation of the public peace, health and safety, and it is so ordained.
ADOPTED:
ATTEST:
Jane Czech.
City Clerk
April 4 1972.
APPROVED:
Aorge .Wimberly
Mayor