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5305ORDINANC E NO. AN ORDINANCE PROVIDING FOR THE PURCHASE OF LAND, RIGHTS -OF -WAY FOR AND CONSTRUCTION OF MPROVEMMTS TO SEWER SYSTEM FOR THE CITY OF LITTLE ROCK, ARKANSAS; PROVIDING FOR THE ISSUANCE OF REVENUE BONDS THEREFOR; FIXING THE DETAILS I11 RESPECT OF SAID BONDS AND PRO- VIDING FOR THE 11ETHOD OF PAYMENT THEREOF; AND DECLARING AN MIERGENCY. WHEREAS, the public interest and necessity require that certain improvements be made to the sewer system operated by the City of Little Rock, Arkansas; and WHEREAS, the City Council of said City has caused to be made by a duly qualified engineer plans and specifications for such improvements, an estimate of the cost of the construction of the same, an estimate of the revenues of such improvements, all of which have been heretofore filed with the City Clerk, and 'WHEREAS such plans provide for the purchase of land, rights -of -way for and construction of improvements to sewer sys- tem, consisting of intercepting sewers, equalizing reservoir and appurtenances and the purchase of land, rights --of -way and ease- ments necessary or incidental thereto; WHEREAS the City Council has examined and approved said plans and estimates anal finds and declares that it is for the best interest of said City that said improvements be constructed, and said land, rights -of -way and easements be acquired; WHEREAS said City is without funds with which to carry out said plans, but from the proceeds of the bonds hereinafter ordered to be issued (hereinafter called the "Bonds "), author- ized by Act 132 of the Acts of the regular session of the General Assembly of the State of Arkansas for the year 1933, together with certain funds to be furnished by the United States of Amer- ica, sufficient funds to do so can be provided; NOW, THEREFORE, BE IT ORDAINED by the said City Council of said City of Little Rock, Arkansas, as follows: Section to The estimated cost of the construction of said improvements to sewer system and the acquisition of land, rights-of-way and easements in connection therewith is found and declared to be the sum of One billion Six Hundred Forty Thousand and no /100 Dollars ($1,640,000,00) ; Section 20 The said improvements to sewer system (also referred to as the "Works ") shall be constructed according to the plans and specifications filed with the City Clerk, and ref- erence to such plans and specifications is hereby made for a more detailed description. Said construction and the custody, operation and maintenance of the 'forks and the collection of rev- enues therefrom for the service rendered thereby shall be effected and supervised by a Sewer Committee composed of Mayor R.E.Overman, H. T. "Wild' Terry, C. B. Ervin, Dan T. Snrick, J E McCook, Jr and D. H. Daugherty. The Council may remove any member of the Sewer Committee with or without cause and may appoint substitute members in case of death, removal or resignation. The terms of the construction of the Works, so far as they are not set out in this ordinance, shall be fixed by the Sewer Committee and it shall make all contracts or agree- ments necessary or incidental to the performance of its duties and the execution of its powers; provided that any contract rela- ting to the financing of the construction herein provided for shall be approved by the Council before the same shall be effect- ive. Section 3. None of the facilities or services afforded by the 'forks shall be furnished without a reasonable charge being made therefor. In the event that the City or any department, agency or instrumentality thereof shall avail itself of the fa- cilities or services afforded by the Works, the reasonable value of the services or value of the services or facilities so afford- ed shall be charged against the City or such department, agency or instrumentality and shall be paid for as the charges therefor accrue. The revenues so received shall be deemed to be revenues derived from the operation of the fforks and shall be used and accounted for in the same manner as any other revenues derived from the operation of the Works. Provided, however, that noth- ing herein shall be construed as requiring the City or any de- partment, agency or instrumentality thereof to avail itself of the facilities or services afforded by the Works. Section 4e The Treasurer of the City shall be the cus- todian of the revenues derived from the Works and shall give bond for the faithful discharge of his duties as such custodian (such bond to be fixed and approved by this Council). The Treas- urer of the City shall deposit all the revenues of the Works into a separate fund, to be administered as follows: (a) Operation and Maintenance. An amount suf- ficient to pay the reasonable and necess- ary expenses of operation, repair and maintenance shall be deducted from the monthly revenues as they accrue and shall be used to pay such expenses; (b) Bond Fund. All the revenues remaining after the payment set forth in sub - paragraph (a) shall constitute the net revenues of the Works and shall be paid at quarterly inter- vals and as otherwise collected into a Bond Fund to provide for the payment of the interest on and the principal of the Bonds as and when the same become due; the necess- ary fiscal agency charges for making such payments, and a margin for safety. Such mar- gin, together with any unused surplus of the same carried forward from the preceding fis- cal year, shall equal ten per centum of all other amounts required to be paid into the Bond Fund under the provisions of this Sec- tion. Any deficiency in the amount required to be paid into the Bond Fund in any quar- ter shall be added to the amount otherwise required to be paid into such fund in the following quarter. (c) Surrolus. In the event that a surplus remains after the requirements of sub- paragraphs (a) and (b) have been met, the City may use such surplus or any part thereof in its discretion to provide a fund for extensions, betterments and additions to the Works, or to purchase any of the Bonds outstanding at not exceed- ing par and accrued interest if such Bonds are available on the open market, provided that an amount reasonably sufficient for operation, repair and maintenance and for depreciation for an ensuing period of not less than twelve months has first been re- served. All Bonds purchased shall forthwith be cancelled and shall not again be issued. All moneys held in said Bond Fund shall be deposited in a bank which is a member of the Federal Reserve System and in which de- posits are insured by the Federal Deposit Insurance Corporation. Section 5. So long as any of the Bonds are outstand- ing the Works shall be operated upon a fiscal year basis. The first fiscal year shall commence upon the first day of November, 1936 (the estimated date of completion of the construction here- in provided for), and shall end one year thereafter. Section 6, Revenue bonds of the City (herein called Bonds) shall be issued in the total amount of One Mullion and Thirty Seven Thousand and no /100 ($1,037,000,00) Dollars, which amount, together with funds to be furnished by the United States Government, is necessary to provide sufficient funds to pay all costs of the herein described contemplated construction, in- cluding engineering, legal, and other necessary expenses, to- gether with interest to a period six months after the estimated date of completion of the construction; said Bonds, each to be designed "Sewer Revenue Bond", shall be dated December 1, 1935, shall be in the denomination of One Thousand Dollars ($1,000.00) each, shall be numbered from 1 to 1,037, both inclusive, and shall mature in numerical order on December 1st, in each of the years and in the amounts as follows: Year Amount Year Amount 1937 $120000,00 1953 $35,000.00 1938 15,000.00 1954 35,000.00 1939 20tOOQ.00 1955 35,000.00 1940 20,000,00 1956 35,000.00 1941 20,000,00 1957 351000.00 1942 200000.00 1958 40,000.00 1943 20,000.00 1959 409000.00 1944 25,000.00 1960 40,000,00 1945 25,000,00 1961 45,000.00 1946 25,000.00 1962 45,000.00 1947 25,000,00 1963 45,000.00 1948 30,000.00 1964 45,000.00 1949 30,000.00 1965 45,000.00 1950 30,000.00 1966 45,000.00 1951 309000.00 1967 45,000.00 1952 35,000100 1968 45,000.00 The Bonds shall bear interest at the rate of four per centum (4 %) per annum, payable on June 1, 1936 and semi - annually thereafter on the first days of June and December in each year, shall be signed by the Mayor and sealed with the corporate seal of the City and attested by the City Clerk: of the City, and the inter- est upon the Bonds shall be evidenced by coupons thereto attached, such coupons to be signed by said Mayor and said City Clete by their facsimile signatures; and said Mayor and said City Clerk shall by the execution of the Bonds: adopt as and for their own proper signatures their respective facsimile signatures appear- ing on said coupons. The Bonds and coupons shall be payable in such funds as at the time of the respective payments are legal tender for the payment of debts due the United States of America at the office of the City Treasurer in Little Rock, Arkansas, or, at the option of the holder at The Chase National Bank, of the City of New York, in the Borough of Manhattan, City and State of New York. The bonds together with interest thereon shall be payable only out of the Bond Fund as hereinbefore defined and shall be a valid claim of the holder thereof only against the Bond Fund, and the amount of the revenues pledged to said fund, which amount of said revenues is hereby pledged for the equal and ratable payment of the Bonds and shall be used for no other purpose than to pay the principal and interest of the Bonds as the same become due and payable. Section 8. That said Bonds and coupons be in sub- stantially the following form: No. (FORM, OF BOND) UNITED STATES OF 121ERICA STATE OF ARKANSAS COUNTY OF PULASKI CITY OF LITTLE ROCK SEWER REVENUE BONID $1,000000 KNOW ALL AEI BY THESE PRESENTS, That the City of Little Rock, in the County of Pulaski, State of Arkansas, hereby acknowledges itself to owe and, for value received, promises to pay to bearer, or, if registered as to principal, to the regis- tered holder hereof as hereinafter stated, the sum of ONE THOUSAND DOLLARS ($1,000,00) on the first dray of December, 19 , with interest at the rate of four per centum (4 /o) per annum, payable on June 1, 1936 and semi - annually thereafter on the first days of June and December in each year, upon presentation and surrender of the annexed coupons, as they severally become due. Both princi- pal hereof and interest hereon shall be payable in such funds as at the time of the respective payments are legal tender for the payment of debts due the United States of America, at the office of the City Treasurer in Little Rock, Arkansas, or, at the option of the holder, at The Chase National Bank of the City of New York, in the Borough of Manhattan, City and State of New York. This bond is issued for the purpose of providing for the payment of the cost of construction of improvements (herein called the "Works ") to sewer system and the acquisition of land, rights -of -way and easements therefor. This bond is issued in accordance with the provisions of Act 132 of the regular session of the General Lssembly of the State of Arkansas for the year 1933, and does not constitute an indebtedness of said City within any constitutional or statutory limitation, and is payable solely from the entire revenues of the Works remaining after deduction of the reasonable monthly expense of operation, repairs and maintenance. Said net revenues have been set aside and pledged as a special fund for that purpose an;d identified as the "Bond Fund", created by the Crdinance under which this bond is authorized to be issued. There has heretofore been established by said City and said City hereby covenants and agrees that it will maintain, just and equitable rates or charges for the use of and the service rendered by the 'Works sufficient in each year for the pavement of the proper and reason- able expenses of operation, repair, replacements and maintenance of the Works and for the establishment of a sufficient sinking fund to meet the principal of and interest on this bond as the same become due. It is provided in said last mentioned ordiname that such rates or charges stall be paid by each landowner whose premises are connected with, and use the Works by or through any part of the sewer system of the City, or whose premises in any way use or are served by the Works, which rates or charges if not paid when due shall constitute a lien upon the premises served by the Works, and shall be collected as provided by law. This bond is transferable by delivery, unless regis- tered as to principal at the office of the City Clerk of said City, and such registration noted hereon by such Clerk. After such registration, upon delivery to said Clerk of a written in- strument of transfer executed by the registered holder or by his attorney thereunto duly authorized, this bond may be transferred, and such transfer shall be similarly noted hereon. No transfer hereof shall be valid unless so made,, but this bond may be discharged from registration by being in like manner trans to bearer, and thereupon transferability (erred Y Y delivery shall be restored and this bond may again from time to time be registered ste or transferred to bearer as before. NO such registration g red affect. then shall of the coupons appertaining hereto, which shall continue to be transferable by delivery merely ., shall remain payable to bearer. Y nd IT IS HEREBY CERTIFIED, RECITED, AND DECLARED that all acts, conditions and things required to exist, happen, a be performed p � nd precedent to and in the issuance of this bond have existed, have happened, and have been performed in due time form and manner, as required b � Y law, and that sufficient of the income and revenue to be derived from the operation of the W has been pledged to and will be set aside into said special orks fund for the a Payment of the principal and interest of this bond. IN WITNESS T'�, the City Y Of Little Rock, Flrkansas, by its City Council, has caused this bond to be signed by the Mayor thereof and sealed with the corporate seal of said City and attested by its City Clerk caused the coupons hereto attached to be authenticated by the facsimile signatures of said Mayor and City Clerk, all as of the first day of December 1935. ,TTEST: ( S E A L ) Y er CITY OF LITTLE ROCK, ARKAJIsA,S BY ay-or (- FOMIL' OF COUPON) rind $20.00 On the first day of , 19 , City of Little hock, Pulaski County, Arkansas, promises to pay to bearer, out of the funds specified in the bond to which this coupon apper- tains, at the office of the City Treasurer in Little Rock, Arkansas, or, at the option of the holder, at The Chase National Bank of the City of New York, in the Borough of Manhattan, City and State of New York, in such funds as at the time of payment hereof are legal tender for the payment of debts due The United States of America, the sum. of T'i'JENTY ($20.00) DOLLARS being interest then due on its Sewer Revenue Bond No. dated the first day of December, 1935, ATTEST CITY OF LITTLE ROCK, ARKANSAS BY ayor City er (The signaturess of the Mayor and City Clerk on the coupons may be lithographed or en- graved). Section 9. The Mayor is hereby authorized to adver- tise notice of public sale of all or any amount of said bonds, such notice to be advertised by two insertions in some newspaper published in the City of Little Rock, Arkansas. The form of such notice shall be prepared by the Mayor and the bonds shall be sold to the highest and best bidder, the right to reject any and all bids being reserved. After the bonds have been executed as herein provided, they shall be sold and delivered to the purchaser,whose bid is accepted at the said public sele, all at one time or in blocks from time to time at a Price or prices approved by the Sewer Committee and City Council, and the proceeds received therefrom shall be used solely for the payment of construction costs of the ;Forks, and costs of land, rights - of -way and easements, including engineering, legal, and other necess- ary expenses and for payment of interest on the Bonds to a date six months subsequent to completion of construction. Section 10. There has heretofore /been established by Ordinanc e No. 5304- adopted by the q 14y I;OuY« l t on I�Arwuaw -YO ` 1936 , just and equitable rates or charges for the use of and the service rendered by the Works to be paid by each landowner 41ose premises are connected with, and use, the (forks by or through any part of the sewer system of the Works, or whose premises in any way use or are served by the Works (excepting vacant, unoccupied property not actually using the forks) . Said ordinance provides that such rates or charges shall be sufficient in each year for the payment of the proper and reasonable expenses of operation, repair, re- placements and maintenance of the Works and for the payment of the sums required to be paid into a sinking fund to meet the principal of and interest on revenue bonds issued to pay the cost of the Works. So long as the bonds herein authorized to be issued are outstanding and unpaid, the provisions of said ordinance shall remain unchanged. Section 11. Nothing in this ordinance shall be con- strued to prevent the issuance by the City of additional bonds Payable from the revenues of the Works to finance or pay the cost of constructing any extensions, betterments, or additions to the Works. Provide4, however, that the City shall not author- ize or issue any such additional bonds so long as any of the Bonds are outstanding, unless the gross revenues derived from the Works for the fiscal year then next preceding shall have been sufficient to provide for all costs of operation, repair and mainten.alce of the Works and leave a balance equal to at least one hundred twenty per centum (1207.2) of the aggregate of: (a) Principal and interest payments for such year on all Bonds then outstanding and the fiscal agency charges therefor; (b) One year's interest on the total issue of such additional bonds then proposed to be issued; and (c) An amount of principal of such additional bonds for one year computed by dividing the total amount of such issue by the number of years to the final maturity date of such bonds. Section 12. It is covenanted and agreed by the City with the holder or holders of the Bonds, or any of them, that it will faithfully and punctually perform all duties with ref- erence to the Works required by the Constitution and Statutes of the State of Arkansas, including charging and collecting reasonable and sufficient rates lawfully established for ser- vices rendered by the Works, segregating the revenues of the Works end applying it to the respective funds herein created. Section 13. The City will maintain the Jorks in good condition and operate the same in an efficient manner and at a reasonable cost. So long as any of the Bonds are outstand- ing the City agrees to maintain insurance on the Jorks for the benefit of Bondholders of a kind and in an amount which normally would be carried by private companies engaged in a similar type of business. Nothing in this ordinance shall be construed as requiring the City to expend any funds which are derived from sources other than the operation of the viorks but nothing herein shall be construed as preventing the City from doing so. Section 14. So long as any of the Bonds are out- standing, the City will not mortgage, pledge or otherwise encum- ber the `corks or any part thereof, or any revenues therefrom (except as hereinabove provided, and will not sell, lease or otherwise dispose of any substantial portion of the same. Section 15. The City will keep proper books of record and accounts (separate from all other records and accounts) in which complete and correct entries shall be made of all transac- tions.relating to the Works. The City will furnish to any holder or purchaser of any of the Bonds at the time outstanding at the written request of such holder or purchaser, not more than thirty days after the close of each six months' fiscal period, complete operating and income statements of the Works in reasonable detail covering such six months' period, and, not more than sixty days after the close of each fiscal year, complete financial state- ments of the City and the uiorks, including the existing system, covering such fiscal year, certified by the City auditors, or independent auditors if requested by holders of twenty -five per centum (25 %) of outstanding bonds. Section 16, Any purchaser of twenty -five per centum (25 %) in aggregate principal amount of the Bonds at the time then outstanding or any holder or holders of twenty -five per centum (25%¢) of said amount of outstanding Bonds shall have the right at all reasonable times to inspect the Works and all re- cords, accounts and data of the City relating thereto. Section 17, The City further covenants and agrees that if default is made in the payment of any Bond or coupon or if the City fails to meet any Bond Fund requirement, the holder of such Bond may declare such Bond immediately due and payable, and such Bond shall thereupon be immediately due and payable and in default. Section 18, If there be any default in the payment of either the interest on or principal of any of the Bonds, the holder or holders of any of the Bonds may by proper suit compel the performance of the duties of the officials of the City, as set forth in said Act 132 of the regular session of the General Assembly of Arkansas for the year 1933. If there be default in the payment of the principal of or interest on the Bonds any court having jurisdiction in any proper action may appoint a re- ceiver to administer the System on behalf of the City and the holders of the Bonds, with power to discharge and collect (or, by mandatory injunction or otherwise, to cause to be charged and collected) rates sufficient to provide for the payment of the Bonds and interest thereon and for the payment of the opera- ting expenses and to apply the income and revenues in conformity with said Act and this ordinance. Section 19, To the end that a record of the pledge of the revenues and the agreement not to mortgage the Works, set out in this ordinance, may be preserved, the City Clerk be and is hereby authorized to file with the Ex- officio Recorder of Pulaski County, &'rkansas, a certified copy of this ordinance, acknowledged in the form required for deeds and mortgages, with the directions that the same be recorded in the office of said County Recorder as in the case of deeds and mortgages. Section 20. All ordinances or parts of ordinances in cc nflict herewith are hereby repealed. Section 21. It is ascertained and declared that the lack of improvements to the sewer system for the needs of Little Rock, Arkansas, endangers the health and safety of the inhabitants of said City; that by reason of the present con- ditions many citizens of the City are out of work and the con- struction herein provided would furnish work for a large number of men and thereby add to the peace and happiness of the City. It is, therefore, declared that an emergency exists, that this ordinance is necessary for the immediate preservation of the public peace, health and safety, and that this ordinance shall take effect and be in force from and after its passage. PASSED: APPROVED: 1934. (Signed) Mayor ( S E A L ) ATTEST C y W.L er X X x x X Recorded this day of , 193 . ( S E A L ) City Clerk On motion and unanimous vote, the meeting adjourned. City Clerk ( S E A L )