HomeMy WebLinkAbout13983ORDINANCE 140. 13,983
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF
SEWER REVENUE BONDS OF THE CITY OF LITTLE
ROCK, ARKANSAS FOR THE PURPOSE OF PAYING
THE COST TO THE CITY OF CONSTRUCTING THE
FOURCHE SEWERAGE FACILITIES AND CERTAIN
EXTENSIONS, BETTERMENTS AND IMPROVEMENTS IN
CONNECTION THEREWITH; AUTHORIZING PUBLIC
SALE OF THE 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 "),
has undertaken the construction of the Fourche-Sewerage
Facilities and certain extensions, betterments and improvements
in connection therewith, all of which are additions to the
sewer facilities of the City (the "System "); and
WHEREAS, the Sewer Committee of the City, the membership
of which consists of Mr. Louis J. Schaufele, Chairman, Mrs.
Catherine Hamilton, Mr. Ted C. Treadway, III, Mr. Gus M.
Vratsinas and Mr. Woodson D. Walker, has had prepared by Garver
& Garver, Inc. Little Rock, Arkansas, Consulting Engineers, an
engineering report on providing sanitary sewer treatment
facilities for the Fourche Creek drainage area and estimates of
cost of needed betterments and improvements (the "engineering
report "), which engineering report has been approved by the
Sewer Committee and recommended to the Board of Directors of
the City; and
WHEREAS, the Board of Directors has studied the
engineering report which, generally stated, recommends a
construction program consisting of four major components: (1)
Fourche Sewage Treatment Facilities; (2) Pump Stations; (3)
Pressure Mains; and (4) Gravity Lines, together with needed and
related improvements and expenditures and, where necessary, the
acquisition of lands and easements (all of which will be herein
referred to as the "Improvements "); and
WHEREAS, the Sewer Committee has received sealed bids for
the furnishing of all labor, materials and other services in
connection with the completion of the Improvements and, based
i r
upon such bids, has estimated the cost of the Improvements to
be approximately $33,808,575.00; and
WHEREAS, the City is authorized under Act 132 of the Acts
of the General Assembly of Arkansas for the year 1933, as
amended, ( "Act 132") to issue and sell revenue bonds for the
purpose of financing in part the cost of constructing
improvements and betterments to the System, including printing,
legal, underwriting and other expenses incidental to the
issuance of the bonds; and
WHEREAS, the City is authorized further by Act 132 to
borrow money or to obtain interim financing to construct
improvements and betterments to the System, pending receipt of
moneys obtained from federal or state governmental agencies or
the subsequent issuance of revenue bonds, by the issuance or
execution of revenue promissory notes; and
WHEREAS, to secure funds necessary to finance the
construction of betterments and improvements to the System and
the engineering, legal and other costs incidental to the
issuance of revenue bonds and /or revenue promissory notes for
these purposes, (with it being contemplated that moneys will be
obtained from governmental agencies other than the City in the
form of a grant or grants which will be used in addition to the
moneys furnished by the City from the sale of revenue bonds
and /or revenue promissory notes, hereafter referred to) the
City has determined to issue sewer revenue bonds, and /or
preliminary to the issuance of permanent and definitive bonds
to issue sewer revenue promissory notes, upon the most
favorable terms to the City and upon the most favorable terms
and conditions to the users of the System of the City, in an
aggregate principal amount for either bonds or promissory notes
not to exceed Six Million Five Hundred Thousand Dollars
($6,500,000) .
F
NOW, THEREFORE, BE IT ENACTED BY THE BOARD OF DIRECTORS OF
THE CITY OF LITTLE ROCK, ARKANSAS:
.Egct on_J. That the Improvements be accomplished. The
accomplishment of the Improvements shall be under the control
and supervision of, and all details in connection therewith
shall be handled by, the heretofore created and presently
existing Sewer Committee, and the Sewer Committee shall make
all contracts and agreements necessary or incidental to the
performance of its duties and the execution of its powers. It
shall let all construction contracts pursuant to and in
accordance with existing laws and shall require such
performance bonds and insurance for the contractors as, in the
judgment of the Sewer Committee, will fully insure the
completion of the Improvements in accordance with the plans,
specifications and drawings of the consulting engineers (copies
of which are on file in the office of the City Clerk and in the
office of the Manager of the System) so as to fully promote and
protect the best interests of the City and the holders and
registered owners of the Sewer Revenue Bonds authorized hereby.
Section 2_. That under the authority of the Constitution
and laws of the State of Arkansas, including particularly Act
132, City of Little Rock, Arkansas, Sewer Revenue Bonds, Series
1981, are hereby authorized in the total principal amount of not
to exceed Six Million Five Hundred Thousand Dollars
($6,500,000) , the proceeds of the sale of which are necessary
to provide sufficient funds to pay the cost to the City of
accomplishing the Improvements, including, without limitation,
the acquisition of necessary rights -of -way, engineering fees,
legal fees and other necessary expenses incidental to the
accomplishment of the Improvements, and to the issuance of the
Sewer Revenue Bonds, Series 1981 (which Bonds will herein be
referred to as "Sewer Revenue Bonds" or "Bonds "). The Bonds
shall be negotiable coupon bonds payable to bearer but shall be
subject to registration as to principal only. Interest on the
Bonds shall be evidenced by interest coupons. The principal
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0
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and interest shall be payable at the principal office of the
Paying Agent or Co- Paying Agent (the purchaser is being granted
the right to designate the Trustee which shall be any state or
national bank located in Little Rock, Arkansas, having a
combined capital and surplus of not less than $5,000,000 and
the purchaser is being granted the right to designate a
Co- Paying Agent with such designations to be set forth in a
resolution of the Board of the Directors of the City, hereafter
referred to) . The Bonds shall be dated, shall bear interest
payable semiannually and shall mature, annually, all as specified
in a resolution of the Board of Directors of the City,
hereafter referred to.
The City is hereby authorized to sell the Bonds at public
sale on sealed bids in such manner and on such terms as the
City shall deem to be in the best interest of the City and
users of the System which shall not be inconsistent with
applicable provisions of this Ordinance.
Pending receipt of grant funds from federal or state
agencies or pending the preparation and delivery of the
permanent and definitive Bonds hereinabove authorized, revenue
promissory notes, in an aggregate principal amount not to
exceed the aggregate principal amount of the Bonds, may be
issued for the purpose of providing construction funds
immediately and in anticipation of the receipt of such funds
and /or the issuance of such permanent and definitive Bonds.
The revenue promissory notes shall be in such denominations as
the City shall determine, be dated the day of delivery, bear
interest at such rate or rates as determined by the City and be
payable within five (5) years from their date. Upon delivery
of the permanent and definitive Bonds, revenue promissory notes
to the extent then outstanding, with accrued interest, shall be
paid from the proceeds of the permanent and definitive Bonds.
The City is hereby authorized to sell the revenue promissory
notes at public or private sale in such amounts and in such
manner as the City shall deem to be in the best interest of the
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City and the users of the System, the terms of any such sale to
be set forth in a resolution of the Board of Directors of the
City, hereafter referred to.
ectioD 3. That the action of the City in accepting a bid
for the Bonds at the public sale thereof, in the sale of the
revenue promissory notes, in approving the designation of the
purchaser and of the Trustee and Paying Agent, and if it so
determines, in recommending to the Board of Directors a
Co- Paying Agent, in approving the details of the maturity
schedule, and in -authorizing the form and use of an Official,
Statement in connection with the public offering of the Bonds,
shall be submitted to the Board of Directors for approval by
resolution. In this regard the Bonds shall be numbered
consecutively beginning with number one (1) and shall be in
such denominations as shall be requested by the purchaser (but
in denominations of not less than $5,000 each) and approved by
the Sewer Committee. The resolution of the Board of Directors,
referred to above, shall set forth in detail a maturity
schedule reflecting the'years, bond numbers, yearly principal
maturities, semiannual interest and total principal and
interest requirements, and the resolution shall specify the
denominations of the Bonds. Thereafter, the Bonds shall be
executed on behalf of the City by the Mayor and City Clerk and
shall have impressed thereon the seal of the City. The
facsimile signature of the Mayor may be used upon compliance
with the provisions of Act No. 69 of the Acts of the General
Assembly of Arkansas for the year 1959. Interest coupons
attached to the Bonds shall be executed by the facsimile
signature of the Mayor. The Mayor's facsimile signature shall
have the same force and effect as if he had personally signed
the Bonds and coupons. The Bonds shall be executed by the
manual signature of the City Clerk. The principal of, premium,
if any, and interest on the Bonds shall be payable solely out
of the 1981 Sewer Revenue Bond Fund, as hereafter set forth,
and shall be a valid claim of the bondholders only against such
5
fund and the revenues pledged to such fund, which revenues are
hereby pledged and mortgaged for the equal and ratable payment
of the principal of, premium, if any, and interest on the Bonds
and shall be used for no other purpose except as in this
Ordinance specifically provided. The principal of and interest
on the Bonds shall not constitute an indebtedness of the City
within any constitutional or statutory limitation.
Section -A.. That the Bonds and. revenue promissory notes
shall be in substantially the following form and the Mayor and
City Clerk are hereby authorized and directed to.make.all
recitals contained therein:
L
• l
. i
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF PULASKI
CITY OF LITTLE ROCK
SEWER REVENUE BOND
SERIES 1981
NO.
KNOW ALL MEN BY THESE PRESENTS:
That the City of Little Rock, County of Pulaski, and State
of Arkansas (the "City ") , acknowledges itself to owe and, for
value received, hereby promises to pay bearer, or if this Bond
be registered, to the. registered owner hereof, solely from the.
special fund provided as hereafter set forth, the principal sum
of
Dol la rs
in such coin or currency as shall be legal tender for the
payment of debts due the United States of America on the first
day of _ 19_, and to pay solely from said special
fund interest hereon at the rate of percent (_%)
per annum, from date, semiannually on 1 and
1 of each year, commencing Y _ it 19 -01
upon presentation and surrender of the annexed coupons as they
severally become due. Both principal and interest of this Bond
are hereby made payable at the principal office of
(the "Trustee" and "Paying
Agent "), or, at the option of the holder, at the principal
office of
"Co- Paying Agent ").
(the
This bond is part of an issue of Sewer Revenue Bonds (the
"Bonds ") aggregating
Dollars ($ __ ---), numbered consecutively from one (1)
to
) , inclusive, all
of like tenor and effect, except as to number, denomination,
rate of interest, maturity and right of prior redemption, and
are issued for the purpose of financing the cost to the City of
constructing extensions, betterments and improvements to the
Sewer System of the City.
7
The Bonds of this issue are issued pursuant to and in full
compliance with the Constitution and laws of the State of
Arkansas, particularly Act 132 of the Acts of the General
Assembly of Arkansas for the year 1933, as amended, ( "Act 132 ")
and pursuant to an ordinance of the Board of Directors of the
City, duly adopted and approved, as supplemented by a
Resolution of the Board of Directors of the City, duly adopted
and approved, (being Ordinance No. adopted and approved
on the ______ day of , 19� and Resolution No.
adopted and. approved . on, the day
19__, (collectively referred to herein as the "Authorizing
Ordinance") and do not . constitute an indebtedness of the City
within any constitutional or'statutory.limitatio,n.
There are presently outstanding Sewer Revenue Bonds of an
issue dated February 1, 1966 issued under the authority of
Ordinance No. 11,395 of the Ordinances of the City (herein
called the "1966 Bonds ") and there are presently outstanding
Pollution Control Revenue Bonds issued by the Department of
Pollution Control and Ecology of the State of Arkansas, dated
June 1, 1972 which are secured by a pledge of revenues of the
Sewer System derived from a Water Quality Control Charge levied
by the City by Ordinance No. 12,632 (herein called the "1972
Bonds ") .
The Bonds of this issue are not general obligations to the
City, but are special obligations payable solely from revenues
derived from the operation of the Sewer System, an amount of
which sufficient to pay the principal of, premium, if any, and
interest on the Bonds ranking on a parity with the 1966 Bonds
and the 1972 Bonds is to be set aside in a special fund for
that purpose identified as the 1981 Sewer Revenue Bond Fund
with reference thereto being made to the Authorizing Ordinance
for a detailed statement of the nature and extent of security
(the flow of Sewer Revenue Funds is first to an Operation and
Maintenance Fund, second to the Sewer Revenue Bond Fund
securing the 1966 Bonds, to the Department Bond Fund Securing
the 1972 Bonds and to the 1981 Sewer Revenue Bond Fund securing
the Bonds of this issue and third to a Depreciation Fund), the
rights and obligations of the City, the Trustee, the holders
and registered owners of the Bonds and the terms and conditions
upon which the Bonds are issued, including, without limitation
the covenant of the City to maintain rates for sewer service
which shall be sufficient to produce revenues adequate for the
payment of the expenses of operation and maintenance of the
Sewer System, to provide for the payment of the principal of,
premium, if any, and interest on the Bonds, the 1966 -Bonds and -
the 1972 Bonds which rank on a parity of security, as the same
become due, Paying Agent's fees, and to make the required
deposit into the Depreciation Fund. The .Bonds, are issued on a
parity of security with the 1966 Bonds and the 1972 Bonds.
Under the provisions of Act 132, a lien is fixed upon the land
for any unpaid sewer charge, even though the use of the Sewer
System is by a tenant or lease instead of the owner, and
pursuant thereto the Board of Directors have directed that suit
will be brought to enforce the lien and to collect unpaid sewer
i
charges.
The Bonds will be subject to redemption prior to maturity
in whole or in part, at the option of the City, in inverse
numerical order as follows: (1) From the unexpended proceeds
of the sale of the Bonds not needed for paying the cost to the
City of the construction work, at a price of the principal
amount of the Bonds being redeemed plus accrued interest to the
date of redemption on any interest payment date on and after
1, 19_; (2) From surplus revenues derived from the
operation of the sewer system at a price of the principal
amount of the Bonds being redeemed plus accrued interest on any
interest payment date on and after
1, 19_; and (3)
From funds from any other source on any interest payment date
on and after
1, 19_ at a price of the principal
amount of the Bonds being redeemed plus accrued interest to the
date of redemption and plus a premium as follows:
E
1,
if
redeemed
1,
if
redeemed
19_
if
redeemed
19_;
if
redeemed
or
if
redeemed
,$
if
redeemed
1,
if
redeemed
_$
if
redeemed
No
premium thereafter.
1,
19_
or
1,
19_;
1 ,
19_
or
1,
19_;
1 ,
19_
or
1,
19_;
1 ,
19_
or
1,
19_;
1 ,
19_
or
1 ,
19_;
1 ,
19_
or
1,
19_;
1 ,
19_
or
1,
19_;
1 ,
19_
or
1,
19_;
Notice of the call for redemption shall be published one time
in a newspaper published in the City of Little Rock, Arkansas
and having a general circulation. throughout the State of
Arkansas, giving the number and maturity of each Bond being
called, the publication to be at least fifteen (15). days ,prior.
to the redemption date and after the date fixed for redemption
each Bond so called shall cease to bear interest, providing
funds for its payment, are on deposit with the Paying. Agent at
that time. In addition, notice shall be given by first class
mail to the registered owner of any Bond registered as to the
principal at the address of such owner reflected on the books
of the Bond Registrar and if all outstanding Bonds shall be
registered as to principal, then notice by first class mail to
the registered owners thereof as aforesaid shall be sufficient
and it shall not be necessary to publish notice of the
redemption.
This Bond may be registered as to principal alone and may
be discharged from such registraton in the manner, with the
effect and subject to the terms and conditions endorsed hereon.
Subject to the provisions of registration endorsed hereon,
nothing contained* in this 'Bond or in the authorizing ordinance
shall affect or impair the negotiability of this Bond and this
Bond shall be deemed a negotiable instrument under the laws of
the State of Arkansas and is issued with the intent that the
laws of the State of Arkansas will govern its construction.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts,
conditions and things required to exist, happen and to be
performed 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 by law; that the indebtedness
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represented by the Bonds of this issue does not exceed any
constitutional or statutory limitations; and that sufficient
revenues have been pledged to and will be set aside into the
1981 Sewer Revenue Bond Fund, referred to above, for the
payment of the principal of, premium, if any, and interest on
the Bonds of this issue.
This Bond shall not be valid until the Certificate of
Authentication hereon shall have been.signed by the Trustee.
11
IN WITNESS WHEREOF, the City of Little Rock, Arkansas, by
its Board of Directors, has caused this Bond to be signed by
the Mayor and City Clerk thereof (with either the manual or
facsimile signature of the Mayor but with the manual signature
of the City Clerk) and sealed with the seal of the City, and
has caused the interest coupons attached to be signed by the
facsimile signature of the Mayor, all as of the first day of
, 1981.
CITY OF LITTLE ROCK,.ARKANSAS
By- - - - --
Mayor
ATTEST: '
City Clerk
(SEAL)
12
( Form of Coupon)
No.
On the first day of _ 19__, the City of Little
Rock, Pulaski County, Arkansas, unless the Bond to which this
coupon is attached is paid prior thereto, hereby promises to
pay to bearer, solely out of the special fund specified in the
Bond to which this coupon is attached,
DOLLARS _
in such coin or currency as shall be legal tender for the
payment of debts due the United States of America at the
principal office 'of or, at
the option of the holder, at the principal office of
being six (6) months' interest then due
on its Sewer Revenue Bond, Series 1981, dated
1981, and numbered
CITY OF LITTLE ROCK, ARKANSAS
BY
Mayor
(On each bond shall appear the following:)
CERTIFICATE OF AUTHENTICATION
1,
This is one, of the bonds of the issue of Sewer Revenue
Bonds, Series 1981, of the City of Little Rock, Arkansas, dated
___________ 1, 1981, and aggregating $______________ in
principal amount described in the Bond to which this
certificate is attached.
By
13
(Authorized Signature)
PROVISIONS FOR REGISTRATION AND RECONVERSION
This Bond may be registered as to principal alone on books
of the City, kept by the Trustee as bond registrar, upon
presentation hereof to the bond registrar, which shall make
mention of such registration in the registration blank below,
and this Bond may thereafter be transferred only upon an
assignment duly executed by the registered owner or his
attorney or legal representative, ; in such .form as shall be
satisfactory to
the bond
registrar,
such
transfer to be made on
such books and
endorsed
hereon by'the
respect to
bond registrar. Such
transfer may be to bearer and thereafter transferability by
delivery shall be -restored., .but this Bond shall again be
subject to successive registration's and 'transfers as before.
The principal of this Bond, if registered, unless registered to
bearer, shall be payable only to or upon the order of the
registered owner or his legal representative. Notwithstanding
the registration of this Bond as to principal, the coupons
shall remain payable to bearer and shall continue to be
transferable
by delivery-w., Payment
to-the
bearer
of the coupons
shall fully
discharge the City
in
respect to
the interest
therein mentioned whether or not this Bond be registered as to
principal and whether or not any such coupons be overdue.
Date of Name of
Registration Registered Owner
14
Signature of
Bond Registrar
NO.
CITY OF LITTLE ROCK, ARKANSAS
REVENUE PROMISSORY NOTE
SERIES 1981
FOR VALUE RECEIVED, the City of Little Rock, Pulaski
County, Arkansas, hereby acknowledges itself indebted and
promises to pay to
in
Dollars ( $
at its office
, the principal sum of
) on
1,
19 —, plus interest thereon from the date hereof at the rate of
percent per annum, payable annually on
of each year beginning next following the date
hereof.
This Revenue Promissory Note is one of a series of Revenue
Promissory Notes, Series 1981, in an aggregate amount not to
exceed $ issued for the purpose of providing
construction funds and in anticipation of the receipt of grant
funds and /or the issuance of permanent and definitive Bonds for
constructing improvements and betterments to the Sewer System
of the City of Little Rock, Arkansas, in accordance with the,
bond ordinance of the City adopted on
This is a special obligation payable solely form the revenues
of the Sewer System and from a pledge of the proceeds of the
definitive Bonds, and it does not constitute an indebtedness of
the City within any constitutional or statutory limitations.
The City covenants and agrees that on or before the maturity
date hereof this, and other such certificates, to the extent
then outstanding, with accrued interest, shall be exchanged
for, or paid from the proceeds of, the permanent and
definitive Bonds.
15
IN WITNESS WHEREOF, the City of Little Rock has caused this
certificate to be signed by the Mayor and City Clerk and sealed
with the corporate seal of said City on the —r.— day of
, 19 —.
ATTEST:
City Clerk
( S E A L )
CITY OF LITTLE ROCK, ARKANSAS
By,
Mayor
I
p,
16
Laction_15. (a) That the City covenants that it will
continue in effect the present schedule of rates for sewer
services and that the rates will not be reduced except as
hereafter provided in this section, which schedule of rates was
originally established by Ordinance No. 13,764, adopted and
approved on the 4th day of December, 1979, and consolidated in
Ordinance No. —, adopted and approved on the 17th day of
February, 1981 to which reference is hereby made for a detailed
statement of the rates, and the provisions of Ordinance No.
are hereby incorporated herein as though fully set
forth at this point.
(b) That the City covenants and agrees with the bond-
holders that the rates, will produce a total revenue at least
sufficient to pay the operation and maintenance expenses of the
System, pay the principal of, premium, if any, and interest on
the bonds and Paying Agent's fees in connection therewith, and
make the required deposit into the depreciation fund. The City
also covenants and agrees that the rates shall, from time to
time, as and when necessary, be increased to such an amount as
will provide revenues at least sufficient for the above
purposes.
(c) That the City further covenants and agrees that the
rates shall never be reduced while any Sewer Revenue Bonds are
outstanding, unless there is obtained from an independent
certified public accountant a written opinion, based upon the
number of customers and customer usage as reflected by the
records of the Sewer Committee, that the proposed new rates
will produce sufficient revenue to provide for the cost of
operation repair and depreciation of the System for the then
next succeeding fiscal year and leave a balance equal to at
least one hundred forty percent (140 %) of the maximum amount
that will become due in any year for principal, interest and
service charges on all Sewer Revenue Bonds then outstanding.
(d) That none of the facilities or services afforded by
the System shall be furnished without a charge being made
17
therefor. In the event that the City or any department,
agency, or instrumentality thereof shall avail itself of the
facilities and services afforded by the System, the reasonable
value of the service or facilities so afforded shall be charged
against the City or such department, agency or instrumentality
and shall be paid for as the charges accrue. The revenues so
received shall be deemed to be revenues derived from the
operation of the System and shall be used and accounted for in
the same manner as the other revenues derived from the
operation of the System. I - -
Section _k. Viewer Fund. The System shall be continuously
operated as a revenue producing undertaking and all revenues
derived from the operation of the System shall be paid into a-
special fund created pursuant to the provisions of Ordinance
No. 11,695 of the City of Little Rock, Arkansas, duly adopted
and passed December 20, 1965 (Ordinance No. 11,695) and
designated "Sewer Fund ". The revenues so deposited in the
Sewer Fund are hereby, pledged and shall be applied to the
payment of the reasonable and necessary expenses of operation,
repair and maintenance of the System, to the payment of the
principal of, premium, if any, and the interest on the 1966 J
Bonds, the 1972 Bonds and the Bonds of this issue, and to the
providing of a Depreciation Fund, as hereafter set forth. The
Sewer Fund, and the other special funds hereafter in this
Ordinance referred to, shall be maintained in such depositories
of the City as shall from time to time be designated by the
Sewer Committee, with all such depositories to hold membership
in the Federal Deposit Insurance Corporation located in Little
Rock, Arkansas and having a capital and surplus of not less
than Five Million Dollars ($5,000,000) , and with all deposits
in any depository in excess of the amount insured by the
Federal Deposit Insurance Corporation to be secured by bonds or
other direct or fully guaranteed obligations of the United
States of America.
Section7. Sewer Operation and Maintgn _4nce Fund. There
shall be paid from the Sewer Fund into a fund created pursuant
to the provisions of Ordinance No. 11,695 designated "Sewer
Operation and Maintenance Fund" on the first business day of
each month while any of the Bonds are outstanding an amount
sufficient to pay the reasonable and necessary monthly expenses
of operation, repair and maintenance of the System for such
month and from which disbursement shall be made only for those
purposes. Fixed annual charges such as insurance premiums and
the cost of major repair and maintenance expenses may be
computed and set up on an annual basis, and one - twelfth (1/12)
of the amount thereof may be paid into the Sewer Operation and
Maintenance Fund each month.
If in any month. for any reason .there shall be a failure to
transfer and pay the required amount into the fund, the amount
of any deficiency shall be added to the amount otherwise
required to be transferred and paid into the fund in the next
succeeding month. If in any fiscal year a surplus shall be
accumulated in the Sewer Operation and Maintenance Fund over
and above the amount which shall be necessary to defray the
reasonable and necessary cost of operation, repair and
maintenance of the System during the remainder of the then
current fiscal year and the next ensuing fiscal year, such
surplus may be transferred and deposited in the 1981 Sewer
Revenue Bond Fund (hereinafter created) or to the Sewer
Depreciation Fund (created. pursuant to the provisions of
Ordinance No. 11,695) as the Sewer Committee may designate;
provided, however, that any such transfer into the 1981 Sewer
Revenue Bond Fund shall be in addition to all other payments
required to be made into the fund.
2ggtion_$. ],�$]_�gwgr_ g_vgr��ze Bond Fund. (a) After
,«aking the monthly deposit into the Operation and Maintenance
Fund, there shall be transferred and paid from the Sewer Fund
into a special fund, which is hereby created and designated
"1981 Sewer Revenue Bond Fund" the sums in the amounts and at
the times hereafter stated in subsection (b) and subsection (c)
19
hereof for the purpose of providing funds for the payment of
the principal of, premium, if any, and interest on the Bonds
and the Paying Agent's fees as the same become due according to
the maturity schedule to be set out in the resolution of the
Board of Directors, heretofore referred to in Section 3 hereof,
and to create and maintain the 1981 Sewer Revenue Bond Reserve
Fund, hereinafter created.
(b) There shall be paid from the Sewer Fund into the 1981
Sewer Revenue Bond Fund on the first business day of each month
until all outstanding Sewer Revenue Bonds, principal and'
interest, have been paid in full, or provision made for such
payment, a sum equal to one, -sixth (,1/6) of the next installment
of interest and one - twelfth (1/12) . of the next installment of
principal, plus an amount sufficient to provide for the Paying
Agent's fees, on all outstanding bonds.
(c) It is further agreed that there shall be established
and maintained a reserve for contingencies designated "1981
Sewer Revenue Bond Reserve Bond Fund" in the amount of the
maximum amount that will become due in any year, as reflected
by a maturity schedule to beset forth in the Resolution
subsequently adopted, hereinbefore referred to, for principal
of, premium, if any, interest on the outstanding capital bonds
of this issue, which 1981 Sewer Revenue Bond Fund in the
required amount shall be established over a ten (10) year
period to that end a sum equal to at least ten percent (10 %) of ,
the required amount shall be paid into the 1981 Sewer Revenue
Bond Reserve Fund in each year in equal monthly installments in
advance (insofar as possible) .
(d) If the revenues of the System are insufficient to make
the required payments into the 1981 Sewer Revenue Bond Fund on
the first business day of any month, then the amount of any
deficiency in the payment shall be added to the amount
otherwise required to be paid into the 1981 Sewer Revenue Bond
Fund on the first business day the next month.
(e) If for any reason there shall be a failure at any time
20
to make any of the required payments into the 1981 Sewer
Revenue Bond Fund, any sums then held in the 1981 Sewer Revenue
Bond Reserve Fund shall be used to the extent necessary for the
payment of the principal of, premium, if any, and interest on
the Bonds, and the Paying Agent's fees, but the 1981 Sewer
Revenue Bond Reserve Fund shall be reimbursed from the Sewer
Fund before any of the moneys in the Sewer Fund shall be used
for any other purpose except for making the required monthly
payments into the Operation and Maintenance Fund and into the
1981 Sewer Revenue Bond Fund. The 1981 Sewer Revenue Bond
Reserve Fund shall be used solely as herein provided.
(f) When the moneys in the 1981 Sewer Revenue Bond Fund,
including the 1981 Sewer Revenue Bond Reserve Fund requirement,
shall be and remain sufficient to pay the principal of,
premiums, if any, and interest on all Sewer Revenue Bonds then
outstanding, and the Paying Agent's fees, there shall be no
obligation to make any further payments into the 1981 Sewer
Revenue Bond Fund.
(g) All moneys in the 1981 Sewer Revenue Bond Fund shall
be used solely for the payment of the principal of, premium, if•
any, and interest on the Bonds and the Paying Agent's fees,
except as herein specifically provided. If a surplus shall
exist in the 1981 Sewer Revenue Bond Fund over and above the
amount necessary to insure the prompt payment of the principal
of, premium, if any, and interest on the Bonds as the same
become due and the 'Paying Agent's fees and over and above the
1981 Sewer Revenue Bond Reserve Fund requirement, such surplus
may be used, at the option of the Sewer Committee, for the
redemption of the Bonds prior to maturity or for constructing
extensions, betterments and improvements to the System.
(h) There shall be withdrawn for the Sewer Revenue Fund at
least five (5) days before the maturity date of any Bond or
interest coupon and deposited with the Paying Agent an amount
equal to the amount of such Bond or coupon for the sole purpose
of paying the same, together with the Paying Agent's fee. Such
21
deposit shall be at the sole risk of the City and shall not
operate as a payment of the Bond or coupon until so applied.
Section_. Sewergpreciation Fund. After making the
required payments into the Operation and Maintenance Fund, the
1966 Sewer Revenue Bond Fund and 1972 Department Bond Fund and
the 1981 Sewer Revenue Bond Fund, there shall be paid from the
Sewer Fund into the "Sewer Depreciation Fund" created pursuant
to the provisions of Ordinance No. 11,695 on the first business
day of each month while any of the Bonds are outstanding, three
percent (3 %) of the revenues of the System which remain after
the required payment into the Operation and Maintenance Fund
has been made. The moneys in the Sewer Depreciation Fund shall
be used solely for the purpose of paying the cost of
replacements made necessary'by the depreciation of the System,
provided, however, that moneys in the Sewer Depreciation Fund
may be used to the extent necessary to prevent a default in the
payment of the principal of, premium, if any, and interest on
the Bonds as the same become due. If in any fiscal year a
surplus shall be accumulated in the Sewer Depreciation Fund
over and above the amount 'necessary' to defray the cost of the
probable replacements during the then current fiscal year and ~
the next ensuing fiscal year, such surplus may be transferred
and paid into the 1981 Sewer Revenue Bond Fund; provided,
however, that such payments into the 1981 Sewer Revenue Bond
Fund shall be in addition to all other payments required to be
made into the 1981 'Sewe'r Revenue Bond Fund.
Section_I_Q. That any surplus in the Sewer Fund, after
making the required monthly deposits into the other funds as
set forth above, may be used, at the option of the Sewer
Committee of the City,
(a) for the redemption of the Bonds of this
issue prior to maturity in the manner and upon the
terms set forth herein pertaining to redemption prior
to maturity; or
(b) for the construction of extensions,
22
betterments and improvements to the System (including
payment of the principal of, premium, if any, and
interest on Bonds issued therefor); or
(c) for any lawful purpose of the System, as
approved by the Sewer Committee.
ct ' nil.. That the City hereby agrees that all payments
on the Bonds, principal, premium, if any, and interest, shall
be paid only through the designated Paying Agent or Agents.
All Bonds paid or purchased either at or before maturity shall
be canceled when such payment or purchase is made,- together
with all unmatured coupons appertaining thereto, and held by
the Manager of the System and shall not be reissued. All unpaid
interest coupons maturing on or prior to the date of such
payment or purchase shall continue to be payable to the
respective bearers thereof.
Section That the System shall be operated on a fiscal
year basis beginning January 1 and ending December 31 of each
year.
Section 13. That the Bonds shall be subject to redemption
prior to maturity in the manner 'and upon the terms set forth in*
the bond form appearing in Section 4 hereof.
e t'on IA. That as long as any of the Bonds authorized
hereby are outstanding, the City shall not issue or attempt to
issue any bonds or obligations claimed to be entitled to a
priority of lien on the revenues of the System over the lien
securing ' the Bonds 'of the issue herein authorized, including
the Improvements herein authorized and any and all future
extensions, betterments and improvements. However, nothing in
this Ordinance shall be construed to prevent the issuance by
the City of additional bonds to finance or pay the cost of
constructing any future extensions, betterments and
improvements to the System; provided, the City shall not
authorize or issue any such additional bonds ranking on a
parity with the outstanding bonds of this issue.
(1) Unless and until there shall have been procured
23
and f iled with the Trustee a statement by an independent
certified public accountant not in the regular employ of
the City reciting the opinion based upon necessary
investigation that gross revenues derived from the
operation of the System for the preceding fiscal year were
sufficient in amount to provide for the annual cost of
operation, repair, maintenance and depreciation of the
System after the then contemplated extensions, betterments
and improvements shall have been completed and placed in
operation, and to leave a balance equal to at least one
hundred forty percent (140 %) of the maximum amount that
will become due in any year for principal, interest and
service charges on .all Sewer Revenue Bonds then
outstanding and the Sewer Revenue Bonds then proposed to
be issued; or
(2) Unless and until there shall have been procured
and filed with the Trustee a statement by an independent
certified public accountant not in the regular employ of
the City or an independent consulting engineer not in the
regular employ of' the City reciting the opinion based upon
necessary investigation that gross revenues to be derived
from the operation of the System for the succeeding fiscal
year will be sufficient in an amount to provide for the
annual cost of operation, repair, maintenance and
depreciation of the System taking into account the
contemplated 'ex'tensions, betterments and improvements as
if completed and placed in service, and to leave a balance
equal to at least one hundred forty percent (140 %) of the
maximum amount that will become due in any year for
principal and interest and service charges on all Sewer
Revenue Bonds then outstanding and the Sewer Revenue Bonds
then proposed to be issued.
ctionl_5-. That it is covenanted and agreed by the City
with the holders of the bonds, or any of them, that the City
and the Sewer Committee will faithfully and punctually perform
24
all duties with reference to the System required by the
Constitution and laws of the State of Arkansas, including the
charging and collecting of reasonable and sufficient rates
lawfully established for services rendered by the System, the
segregating of the revenues of the System as herein required
and the applying of revenues to the respective funds herein
created and referred to.
Section 16, That the City and the Sewer Committee covenant
and agree that they will maintain the System in good condition
and operate the same in an efficient manner and at reasonable
cost. While any Sewer Revenue Bonds are outstanding, the City
and the Sewer Committee agree that they will insure and at all
times keep insured, in the amount of the actual value thereof,
in a responsible insurance company or companies authorized and
qualified under the laws of the State of Arkansas to assume the
risk thereof, all properties of the System against loss or
damage from fire, lightning, tornado, winds, riot, strike,
civil commotion, malicious damage, explosion, and against loss
or damage from any other causes customarily insured against by
private companies engaged in ar similar type of business. The.
insurance policies are to be taken with companies approved by
the Sewer Committee and the Trustee, are to carry a clause
making them payable to the Sewer Committee and Trustee as their
interests may appear, and are either to be placed in the
custody of the Trustee or satisfactory evidence of 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 and the Sewer Committee will, with
reasonable promptness, cause to be commenced and completed the
reconstruction, replacement and repair work. If such proceeds
are more than sufficient for such purposes, the balance
remaining shall be deposited to the credit of the Sewer Fund
and if such proceeds shall be insufficient for such purposes,
the deficiency shall be supplied, first, from moneys in the
25
Sewer Depreciation Fund, and second, from moneys in the Sewer
Operation and Maintenance Fund, and third, from available
moneys in the Sewer Fund. Clothing herein shall be construed as
requiring the City to expend any funds for operation and
maintenance of the System or for premiums on this insurance
which are derived from sources other than the operation of the
System, but nothing herein shall be construed as preventing the
City from doing so.
L19-tion22__,_ That the City and the Sewer Committee covenant
and agree that so long as any Sewer Revenue Bonds are
outstanding, that they will not mortgage, pledge or otherwise
encumber the System, or any part thereof or any revenues
derived from the operation thereof, except as herein
specifically provided, and will not sell, lease or otherwise
dispose of any substantial portion of the same.
Section 1$. That the Sewer Committee shall keep or cause
to be kept proper books of accounts and records (separate from
all other records and accounts of the City) in which complete
and correct entries shall be made of all transactions relating
to the construction 'of the herein authorized Improvements and
relating to the operation of the System and its revenues. And
such books shall be available for inspection by the holders of
any of the Bonds at reasonable times and under reasonable
circumstances. The City and the Sewer Committee agree to have
these records audited by an independent certified public
accountant at least'once each year, and a copy of the audit
shall be delivered to the Trustee and to any bondholder who
shall have placed his name and address on file with the Sewer
Committee for that purpose. In the event the City and the
Sewer Committee fail or refuse to make the audit, the Trustee
may, and upon request of the holders of not less than ten
percent (10 %) in principal amount of the Sewer Revenue Bonds
then outstanding shall, have the audit made, and the cost
thereof shall be charged against the Sewer Operation and
Maintenance Fund. In addition, at least once in each twelve
26
(12) months during the construction for the herein authorized
extensions, betterments and improvements, the City and the
Sewer Committee shall cause an audit to be made by a certified
public accountant covering all moneys pertaining to the
construction fund (hereinafter created and referred to), and
the security held therefor and any investments thereof, and all
disbursements made pursuant to requisitions filed by the
Manager of the System, and copies of such audit shall be
furnished to the Trustee and furnished to any bondholder who
shall have filed his name and address with the Sewer_ Committee
for that purpose.
Z99119n_11. That the owner or owners of all improved
property lying within the area that will be served by the
System, after the proposed Improvements have been completed,
are hereby directed and required, upon written request from the
Sewer Committee, to connect all toilet and waste water
facilities of such improved property with the System; and the
owners of property that is improved after the completion of the
proposed Improvements to the System shall, upon written request
of the Sewer Commieee', immediately connect the toilet and.
waste water facilities of such property with the System. The
required notice by the Sewer Committee shall be given at least
thirty (30) days prior to the final date for connection, and if
any property owner shall fail to make such connection after
having been so requested in writing, the City and the Sewer
Committee hereby covenant and agree to institute appropriate
proceedings in a court of competent jurisdiction to compel such
connection. Furthermore, any property owner who fails or
refuses to connect his improved property with the System after
having been so requested by the Sewer Committee shall be guilty
of a misdemeanor and upon conviction shall be fined in any sum
not less than $2.00 and no more than $10.00, and each day's
failure or refusal after the expiration of the time fixed in
the notice to make the connection shall be a separate offense;
provided, however, that the provisions hereof pertaining to a
27
misdemeanor shall be effective only in the event that the City
Health Officer, or other duly designated individual or board,
has found and declared that such failure on the part of any
particular property owner constitutes a hazard to the public
health and safety of the City and its inhabitants.
Section 2Q. (a) That the City covenants and agrees that
the holders and registered owners of the Sewer Revenue Bonds
shall have the protection of the provisions of Section 13 of
Act 132, as amended (Ark. Stats. Sec. 19- 4113), and that the
City will diligently proceed to enforce the lien of unpaid
sewer charges against the premises served by the System and to
collect the amount due together with the penalty and expenses
authorized by Act 132. And, if the City shall fail to proceed
within thirty (30) days after written request shall have been
filed by the Trustee, the Trustee may, and upon the written
request of the holders and registered owners of not less than
ten percent (10 %) in principal amount of the Sewer Revenue
Bonds then outstanding shall proceed to enforce said lien in
accordance with and pursuant to the authorization of Act 132.
(b) That if there be any default in the payment of the
principal of, premium, if any, or interest on any Sewer Revenue
Bond, or if the City defaults in any 1981 Sewer Revenue Bond
Fund requirement or in the performance of any of the other
covenants contained and set forth in this Ordinance, the
Trustee may, and upon the written request of the holders of not
less than ten percent (10 %) in principal amount of Sewer
Revenue Bonds then outstanding shall, by proper suit compel the
performance of the duties of the officials of the City as set
forth in Act 132, as amended. And, in the case of a default in
the principal of, premium, if any, and interest on any of the
outstanding Sewer Revenue Bonds, or if the City fails to
complete any other obligation which it herein assumes, and such
default shall continue for thirty (30) days thereafter, the
Trustee may, and upon the written request of the holders and
registered owners of not less than ten percent (10 %) in
W.
principal amount of the Sewer Revenue Bonds then outstanding
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 holders and 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, repair and maintenance and to pay the
Bonds and interest outstanding and to apply the revenue in
conformity with the provisions of Act 132, as amended; and with
this Ordinance. When all defaults in principal, premium and
interest payments have been cured, the custody and operation of
the System shall revert to the City.
(c) No holder or registered owner of any of the
outstanding Sewer Revenue Bonds shall have any right to
institute any suit, action, mandamus or other proceeding in
equity or in law for the protection or enforcement of any right
under this Ordinance or under Act 132, as amended, unless such
holder previously shall have given to the Trustee written
notice of the defau A on account of which such suit, action or
proceeding is to be taken, and unless the holders and
registered owners of not less than ten percent (10 %) in
principal amount of the Sewer Revenue Bonds then outstanding
shall have made written request of the Trustee after the right
to exercise such powers 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
herein granted or granted by said Act 132, as amended, or by
the laws of the State of Arkansas, 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, and such notification, request and offer of
29
indemnity are hereby declared in every such case, at the option
of the Trustee, to be conditions precedent to the execution of
the powers and trusts of this Ordinance or to any other remedy
hereunder.
It is understood and intended that no one or more holders
or registered owners of the Bonds hereby secured 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 hereunder except in the manner herein
provided, that all proceedings at law or in equity shall be
instituted, had and maintained in the manner herein provided
and for the benefit of all holders and registered owners of the
outstanding bonds and coupons, and that any individual rights
of action or other right given to one or more of such holders
and registered owners by law are restricted by this Ordinance
to the rights and remedies herein provided.
(d) That all rights and remedies enforceable by the
Trustee, may be enforced by it without the possession of any of
the Bonds or coupons appertaining thereto, and any such suit,
action or proceeding instituted by the Trustee shall be brought
in its name for the benefit of all the holders of such Bonds
and coupons, subject to the provisions of this Ordinance.
(e) That no remedy conferred upon or reserved to the
Trustee or to the holders of the Bonds is intended to be
exclusive of any other remedy or remedies, and each and every
such remedy shall'be cumulative and shall be in addition to
every other remedy given hereunder or now or hereafter existing
or available at law or in equity.
(f) That no delay or omission of the Trustee or of any
holders or 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
30
from time to time and as often as may be deemed expedient.
(g) That the Trustee may, and upon the written request of
the holders and registered owners of not less than ten percent
(10 %) in principal amount of Sewer Revenue 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.
Section 21.. The Trustee shall only be responsible for
the exercise of good faith and reasonable prudence in the
execution of this trust. The recitals in this Ordinance and on
the face of 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 holders and registered owners of not less
than ten percent (100) in principal amount of the Sewer Revenue
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 ten (10) days' notice in writing to the
City, and the majority in value of the holders and registered
owners of the outstanding Sewer Revenue 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 majority in value of the holders and registered
owners of the outstanding Sewer Revenue Bonds may appoint a new
Trustee, such appointment to be evidenced by a written
instrument or instruments filed with the City Clerk. If the
majority in value of the holders and registered owners of the
outstanding Sewer Revenue Bonds shall fail to fill a vacancy
within thirty (30) days after the same shall occur, then the
City shall forthwith designate a new Trustee by a written
31
instrument filed in the office of the City Clerk. 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
holders and registered 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. Any Trustee that resigns or is removed
pursuant to the provisions hereof shall cease to be Paying
Agent and any successor Trustee shall be and become Paying
Agent. The Co- Paying Agent may resign, may be removed and a
successor may be named in the same manner and upon the same
terms set forth above with reference to the Trustee and the
Paying Agent provided, however, it shall not be mandatory that
a vacancy in the office of Co- Paying Agent be filled.
Section 2.2, That when the bonds have been executed by the
Mayor and City Clerk and the seal -of the City impressed, as
herein provided, they shall be delivered to the Trustee, which
shall authenticate them and deliver them to the purchaser upon
the payment of the purchase price.
The total sale proceeds shall be handled as follows:
(a) There shall be deposited into the 1981 Sewer Revenue
Bond Fund the amount' of the accrued interest paid by the
purchaser;
(b) The balance of the total sale proceeds shall be paid
into a special fund of the City which is hereby created and
designated "1981 Sewer Construction Fund" (the "Construction
Fund "). The Construction Fund shall be maintained in a
depository or depositories, designated by the Sewer Committee,
which hold memberships with the Federal Deposit Insurance
Corporation, located in Little Rock, Arkansas, and having a
capital and surplus of not less than Five Million Dollars
32
($5,000,000). The moneys in the Construction Fund in excess of
the amount insured by the Federal Deposit Insurance Corporation
shall be continuously secured by bonds or other direct or fully
guaranteed obligations of the United States of America or shall
be invested as hereafter authorized. The moneys in the
Construction Fund shall be disbursed for the payment of the
cost of accomplishing the Improvements, paying necessary
expenses and making necessary expenditures incidental thereto,
paying engineering fees, paying legal fees, and paying the
expenses of the authorization and issuance of the Bonds. For
each disbursement there shall be prepared a requisition signed
by the Finance Officer of the City and the Manager of the
System stating in respect of each such payment:
(1) The item number of the payment;
(2) The name of the person, firm or
corporation to whom payment is due;
(3) The amount to be paid; and
(4) The purpose by general classification
for which the obligation to be paid
was incurred.
Each requisition shall be accompanied by a certificate signed
by the Manager of the System certifying:
(1) That obligations in the stated amounts
have been incurred by the City and
that each item thereof is a proper
charge against the Construction Fund
and has not been paid;
(2) That there has not been filed with or
served upon the Sewer Committee notice
of, any lien, right to lien, attachment
upon, or claim affecting the right to
receive payment of any of the moneys
payable to any of the persons, firms
or corporations named in such
requisition, which has not been
released or will not be released
simultaneously with the payment of
such obligation; and
(3) That such requisition contains no item
representing payment on account of any
retained percentage which the City is
at the date of such certificate
entitled to retain.
In the case of all expenses over which the Consulting Engineers
shall exercise supervision (which generally shall include all
33
expenses and expenditures except engineering fees, legal fees,
expenses pertaining to the authorization and issuance of the
Bonds and incidental expenses not directly related to the
Construction), the applicable requisition shall be accompanied
by a certificate signed by a duly authorized representative of
the Consulting Engineers certifying approval thereof. One copy
of each requisition with accompanying certificates shall be
filed with the depository of the Construction Fund, one copy
shall be filed with the Manager of the System and one copy
shall be filed with the Finance Director of the City. Upon
receipt of each requisition the depository of the Construction
Fund shall disburse funds sufficient to pay the persons, firms
or corporations designated in the requisition. The funds
disbursed shall be deposited in the existing Sewer Construction
Fund of the City from which said funds in combination with
funds from other sources shall be disbursed to pay the costs of
the Improvements. And, the City shall cause each depository of
the Construction Fund to execute an appropriate agreement
whereby it accepts its responsibilities as set forth above.
When the Improvements have been completed and all
authorized expenditures from the Construction Fund shall have
been made, if there be any remaining balance in the
Construction Fund, the City Finance Director and the Manager of
the System shall file a certificate with the depository of the
Construction Fund, with a copy of the certificate to be filed
with the Trustee; stating that the Improvements have been
accomplished and that all authorized expenditures have been
made and specifying the disposititon to be made of the
remaining balance in the Construction Fund. In this regard,
any such remaining balance may be used for redeeming bonds
prior to maturity or may be transferred to the Sewer Fund, as
shall be determined by the Sewer Committee. Upon receipt of
the certificate the depository of the Construction Fund shall
transfer or disburse the remaining balance as directed in the
certificate.
34
S �
section 2. (a) That moneys held for the credit of the
Construction Fund shall, as nearly as may be practicable, be
maintained in such depositories of the City as from time to
time be designated by the Sewer Committee, with all such
depositories to hold memberships in the Federal Deposit
Insurance Corporation, and with all deposits in any depository
in excess of the amount insured by the Federal Insurance
Deposit Corporation to be continuously invested and reinvested
by the Sewer Committee in direct obligations of, or
obligations, the principal of and interest on which, are
unconditionally guaranteed by, the United States Government,
which shall mature, or which shall be subject to redemption by
the holder thereof at the option of such holder not later than
six (6) months
after the
date of such investment,
or
in
certificates of
deposit or
repurchase agreements issued
by
any
state or national bank which shall have combined capital and
surplus of not less than $5,000,000 (which may include the
Trustee) , such certificates, to the extent not insured by
Federal Deposit Insurance Corporation, to be secured by a
pledge of direct obligations of, or obligations the principal
of and interest on which, are guaranteed by the United States
Government, having a market value, to be determined at
intervals not exceeding six months, exclusive of accrued
interest, equal at least to the principal amount of such
certificates of deposit or repurchase agreements.
(b) Moneys held for the credit of the 1981 Sewer Revenue
Bond Reserve Fund in the 1981 Sewer Revenue Bond Fund shall be
continuously invested and reinvested by the Sewer Committee in
direct obligations of, or obligations, the principal of and
interest on which, are unconditionally guaranteed by, the
United States Government, 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
such investment, or in certificates of deposit or repurchase
agreements issued by any state or national bank which shall
35
1 A
have combined capital and surplus of not less than $5,000,000
(which may include the Trustee), such certificates, to the
extent not insured by Federal Deposit Insurance Corporation, to
be secured by a pledge of direct obligations of, or obligations
the principal of and interest on which, are guaranteed by the
United States Government, having a market value, to be
determined at intervals not exceeding six months, exclusive of
accrued interest, equal at least to the principal amount of
such certificates of deposit or repurchase agreements.
(c) Moneys held for the credit of any other System Fund
may, at the option of the Sewer Committee, be invested and
reinvested by the Sewer Committee in direct obligations, of, or
obligations, the principal of and interest on which, are
unconditionally guaranteed by, the United States Government,
which shall mature, or which shall be subject to redemption by
the holder thereof, at the option of such holder, not later
than the date or dates when the moneys held for the credit of
the particular fund will be required for the purposes intended,
or in certificates of deposit or repurchase agreements issued
by any state or national bank which shall have combined capital
and surplus of not less than $5,000,000 (which may include the
Trustee), such certificates, to the extent not insured by
Federal Deposit Insurance Corporation, to be secured by a
pledge of direct obligations of, or obligations the principal
of and interest on which, are guaranteed by the United States
Government, having 'a market value, to be determined at
intervals not exceeding six months, exclusive of accrued
interest, equal at least to the principal amount of such
certificates of deposit or repurchase agreements.
(d) Obligations so purchased as an investment of moneys
in any such fund shall be placed in the custody of the Trustee
or at such place or places as it may designate and shall be
deemed at all times to be a part of such fund and the interest
accruing thereon and any profit realized from such investment
shall be credited to such fund, and any loss resulting from
9W
such investment shall be charged to such fund, provided,
however, that if earnings on investments of moneys in the 1981
Sewer Revenue Bond Reserve Fund increase the amount hereof in
excess of the required amount (the maximum annual requirements
of the Bonds as above specified), the earnings to the extent of
excess may be transferred out of the 1981 Sewer Revenue Bond
Reserve Fund and into the 1981 Sewer Revenue Bond Fund and used
as any other moneys may be used in the 1981 Sewer Revenue Bond
Fund.
Section 24. That in the event the office of Mayor, City
Clerk, Finance Director, Manager of the System, Board of
Directors, Sewer Committee, City Attorney or Attorney for the
Sewer Committee shall be abolished, or any two or more of such
offices shall be merged or consolidated, or in the event the
duties of a particular office shall be transferred to another
office, or officer, or in the event of a vacancy in any such
office by reason of death, resignation, removal from office or
otherwise, or in the event any such officer shall become
incapable of performing the duties of his office by reason of
sickness, absence from the City or otherwise, all powers
conferred and all obligations and duties imposed upon such
office or officer shall be performed by the office or officer
succeeding to the principal functions thereof, or by the office
or officer upon whom such powers, obligations and duties shall
be imposed by law.
Section 25. That "the provisions of this Ordinance shall
constitute a binding contract between the City and the holders
and registered owners of the outstanding Bonds and coupons
issued hereunder, and the City will at all times strictly
adhere to the terms and provisions hereof and fully discharge
all of its obligations hereunder. Subject to the terms and
provisions contained in this section and not otherwise, the
holders and registered owners of not less than seventy -five
percent (75 %) in aggregate principal amount of the Bonds then
outstanding shall have the right, from time to time, anything
37
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, 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 herein contained
shall permit or be construed as permitting (a) an extension of
the maturity of the principal of, premium, if any, or the
interest on any Bond issued hereunder, or (b) a reduction in
the principal amount of any Bond or the rate of interest
therein, or (c) the creation of a lien upon or a pledge of
revenues other than the lien and pledge created by this
Ordinance, or (d) a privilege of priority of any Bond or Bonds
over any other Bond or Bonds, or (e) a reduction in the
aggregate principal amount of the Bonds required for consent to
such supplemental ordinance.
ecton_2 �. That this Ordinance shall not create any
right of any kind and no right of any kind shall arise
hereunder pursuant to it until the Bonds authorized by this
Ordinance shall be issued and delivered.
ct' Il _27. That the provisions of this Ordinance are
hereby declared to be separable and if any provision shall for
any reason be held illegal or invalid, such holding shall not
affect the validity of the remainder of the Ordinance.
Section 2$. That all ordinances and parts of ordinances
in conflict herewith are hereby repealed to the extent of such
conflict.
Section 21. That it is hereby ascertained and declared
that the Improvements must be accomplished as soon as possible
in order to alleviate immediate hazards to the health, safety
and welfare of the City, its inhabitants and their property,
and that the Improvements can be accomplished only by the
issuance of the Bonds. It is, therefore, declared that an
emergency exists and this Ordinance being necessary for the
W:
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immediate preservation of the public peace, health and safety
shall take effect and be enforced from and after its passage.
PASSED: February 17, 1981
ATTEST:
�&L &44xz
VCity Cler
(SEAL)
39
F4, IRA