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3780 RESOLUTION NO. 3, 780 A RESOLUTION APPROVING IN PRINCIPLE A FINANCING PROPOSAL FOR THE CAPITOL PLACE PARKING GARAGE PROJECT; AND FOR OTHER PURPOSES. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS. SECTION 1. The Board of Directors has received and studied a copy of a Resolution adopted by the Little Rock Municipal Parking Authority on May 29, 1967, making certain proposals for financing Capitol Place Parking Garage Project a certified copy of which is on file in the office of the City Clerk. SECTION 2. The Board of Directors has received and studied a certified copy of a Resolution adopted by the Board of Commissioners of the Little Rock Municipal Water Works on June 3, 1967 which in form and substance is as follows : RESOLUTION BE IT RESOLVED by the Board of Commissioners of the Little Rock Municipal Waterworks that : : Sec. 1. The waterworks system of the City of Little Rock is operated by its Board of Waterworks Commissioners. The Commissioners are under a statutory duty to manage, operate, improve, extend and maintain the system (Ark. Stats. 10-4223). The term "operation and maintenance", as used in the existing applicable law, is defined as including the construction of improvements, extensions and additions to the waterworks system (Ark. Stats. 19-4202. 1) . Sec. 2. Under existing statutes, the Commissioners, may transfer surplus water revenues to the Board of Directors of the City to he used for any municipal purpose. Under the existing law no surplus shall exist and no surplus may be -2- transferred until, among other requirements, the waterworks has on hand in its operation and maintenance account funds in excess of the Commissionerts estimate of the cost of operating and maintaining the system during the remainder of the fiscal year then current and the cost of operating and maintaining the system during the fiscal year next ensuing (Ark. Stats. 19-4208 and 19-4273) . Sec. 3. The Little Rock Municipal Parking Authority has requested the Waterworks Commissioners to authorize the Little Rock City Board of 7irectors to pledge surplus water revenues for the payment of parking revenue bonds to be issued in the year 1967. Sec. 4. In the future, if surplus water revenues exist, as defined in Sec. 2 of this Resolution and as presently defined in Ark. Stats. 19-4202. 1, 19-4208 and 19-4273, the Waterworks Commissioners agree to transfer that surplus to the City of Little Rock to be used for any municipal purpose. Provided, however, this agreement shall be applicable only if all other funds available to the Little Rock Municipal Parking Authority for the payment of principal and interest on the 1967 parking revenue bonds have been exhausted. Sec. S. Provided, also, that for the purpose of the agreement set forth in this Resolution, a determination that a surplus exists that shall be made solely by the Waterworks Commissioners in accordance with the aforesaid existing statutes and not in accordance with any other laws, amendments, agree- ments or indentures. A determination of the Commissioners that such a surplus does not exist shall be binding on any person or entity relying on this Resolution. • -3- Sec. 6. The Waterworks Commissioners do not bind themselves or any future Commissioners to omit any needed improvements to the waterworks system. The Commissioners reserve the right to exercise absolute discretion to determine what improvements are needed, when they should be constructed and what costs should be incurred for operating and maintaining the system. Sec. 7. All provisions of this Resolution shall be subordinated to any existing or future water revenue bond trust indentures of the City of Little Rock. If the provisions of any parking revenue bond ordinance, contract or indenture shall be adopted contrary to the terms of this Resolution, said contrary provisions shall not be binding upon the Waterworks Commission. CERTIFICATE I hereby certify that the foregoing Resolution was adopted by the Board of Commissioners of the Little Rock Municipal Waterworks at its meeting on June 3, 1967, and at the direction of the Commissioners is hereby submitted to the Board of Directors for whatever action you deem appropriate, consistent with the terms of this Resolution. Jack Pickens Secretary SECTION 3. The Board of Directors hereby approves in principle a financing proposal for the Capitol Place Parking Garage Project whereby the City of Little Rock will issue revenue bonds which will be a special obligation of the City primarily payable from revenues derived from the operation of the Capitol Place Parking Garage with the bonds to be issued -4- in the principle amount not to exceed Nine (9) Million Dollars (called "BONDS") and additionally secured by a pledge of certain surplus Water Works revenues, if any, as may be transferred to the City of Little Rock by the Little Rock Municipal Water Works pursuant to authority of and in keeping with the Res- olution of the Board of Commissioners of the Little Rock Municipal Water Works adopted June 3, 1967 and set forth in paragraph two (2) above. This approval is with the understanding that there will be a reserve fund of approximately Nine Hundred Thousand and No/100 Dollars ($900,000.00) paid in by various persons and that there will be an agreement with various persons to pay up to One Hundred Thousand and No/100 Dollars ($100,000.00) per year for a period of 10 years to the extent that net revenues of the Capitol Place Parking Garage falls below feasibility report estimates as set forth in the Resolution of the Little Rock Municipal Parking Authority hereinabove referred to, the proceeds of both of which funds are to be expended before the surplus Water Works revenues, if any, as defined in the fore- going Resolution of the Little Rock Water Works Board of Commissioners, may be called upon. SECTION 4. The Board of Directors expressly reserves the right to approve all details and all documents pertaining to the manner and terms of the authorization of the sale and issuance of the bonds. SECTION 5. This Resoltu tion shall be in full force and effect from and after its adoption. ADOPTED: June 5, 1967 ATTEST: ? APPROVED: b / i City Clerk Mayor