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HomeMy WebLinkAbout108471 J ORDINANCE NO. 10,847 AN ORDDINANCE AUTHORIZING THE SALE OF THE STREET LIGHTING SYSTEM AND RELATED FACILITIES AND EQUIPMENT OF THE CITY OF LITTLE ROCK TO THE ARKANSAS POWER & LIGHT COMPANY FOR $104,000.00; AUTHORIZING THE MAYOR'AND THE CITY CLERK TO EXECUTE A CONTRACT WITH ARKANSAS POWER & LIGHT COMPANY FOR SUCH SALE AND PROVIDING A SCHEDULE OF PAYMENTS IN THE TOTAL AMOUNT OF $104,000.00; AND PROVIDING FOR THE OPERATION OF SAID STREET LIGHTING SYSTEM; CREATING AN EMERGENCY; AND OTHER PURPOSES. WHEREAS the CITY OF LITTLE ROCK (hereinafter called "City ") now owns and is operating a street lighting system which is inadequate and inefficient and the cost to the City of maintaining such system by the City is excessive; and WHEREAS the City Manager has filed with the Board of Directors a certificate that the value of the Little Rock street lighting system will not exceed $75,000.00; and WHEREAS the ARKANSAS POi-ER & LIGHT COMPANY (herein- after called "Company ") is willing to purchase the street lighting system with the related equipment and facilities for a consideration of $104,000.00, payable as hereinafter set forth, and said �:ompany will agree to operate end maintain said system; and WHEREAS it is deemed to be in the best interest of the City of Little Rock that a sale of the street lighting system to Company be consummated, NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE ROCK: oat -� Section 1. That the City of Little Rock sell and convey to the Arkansas Power & Light Company its street lighting system, equipment and related facilities for a consideration of $104,000.00 payable according to a contract which shall be in terms and form set forth in this ordinance. Section 2. That the Mayor and City Clerk be hereby authorized, directed and empowered to execute for and on behalf of the City of Little Rock a contract selling the City street lighting system to the Arkansas Power & Light Company in accordance with a contract which shall be in terms and form as follows, to -wit: PURCHASE AGREEMENT THIS AGREEMENT made this day of , 1958, between the CITY OF LITTLE 'ROCK (hereinafter called the "City "), and the ARKANSAS POKIER & LIGHT COMPANY, an Arkansas corporation (hereinafter called the "Company "), W I T N E S S E T H: WHEREAS City presently owns and operates an electric street lighting system which is inadequate and inefficient for the rendition of street lighting service and which sys- tem does not provide any street lighting for some segments of the City of Little Rock and said system is old and obsolete and is presently costing the City an excessive amount each year for maintenance and repairs and the City is without funds to build a modern, adequate, and efficient system; and WHEREAS the City has determined that the City of Little Rock needs an adequate and modern street lighting system, and Company is willing to construct such a system; and - 2 - WHEREAS the City and the Company have determined that a fair and reasonable amount for City to sell and Company to pay for the existing antiquated street lighting system is $104,000.00, as herein provided; and WHEREAS the City is willing to sell said street light- ing system to the Company, and the Company is willing to buy the system from the City for a price of $104,000.00, and Company will use and operate and maintain the system only until it is able to build a modern system, NOW, THEREFORE, it is agreed and understood by the City and the Company as follows: 1. City agrees to sell, and the Company agrees to buy all of the property of the City constituting the street lighting system of the City for One Hundred Four Thousand Dollars ($104,000.00) to be paid by the Company as follows: Company will pay on demand by City up to Twenty -five Thousand Dollars ($25,000.00) in each calendar year, beginning with the year 1959, until the full purchase price of One Hundred Four Thousand Dollars ($104,000.00) has been paid. Company reserves the right to pay all of the unpaid purchase price on October 1, 1966. To insure that the City will receive the payments from the Company on demand as heretofore stated, Company will file with the City a surety bond counter- signed by a commercial surety company, authorized to do business in the State of Arkansas, guaranteeing the payments to City. The delay payment plan set forth in this paragraph is at the request of the City. 2. The street lighting system which the City is selling and the Company is buying under this Agreement consists of the following property: Poles, towers, structures, con- ductors, wires, transformers, regulators, controls, fixtures, - 3 - 1 � a switches, easements and rights -of -way, and all materials and supplies used and useful for the street lighting system and owned by the City on date of closing, and all other street lighting equipment, appliances, regulators, controls, switches, switchboard, and panels situated in City's building located at 701 La Harpe Boulevard and owned by City on date of closing. It is understood and agreed that the City is not sell- ing, and the Company is not'buying, any real estate owned by the City of Little Rock. Neither is the City selling, nor the Company buying any tools, work benches, trucks, or appara- tus installed on trucks owned by City for the operation or maintenance of street lighting system. 3. Until the Company ceases to use the premises for street lighting purposes but not after October 1, 1965, the Company shall have the right to use free of rent only that portion of the building of the City located at 701 La Harpe Boulevard in which facilities of the street lighting system are now operated and which is presently used for street light- ing purposes, with the right of free ingress and egress.' 4. The City does not represent, and the Company under- stands, that any of the property constituting the street lighting system is adequate or is in fair operating condition. In fact, the City informs the Company that all of said street lighting equipment should be abandoned and salvaged as soon as the Company can replace, modernize and extend the facili- ties constituting the existing street lighting system which the Company is buying. 5. The closing date under this Agreement shall be on or before October 1, 1958, and such closing date shall be set by mutual agreement of the parties hereto. On the closing - 4 - date the City shall execute a Bill of Sale, containing the usual and'customary warranties of title, conveying the com- plete street lighting system, as described herein, to the Company, and on receipt of said Bill of Sale the Company is hereby obligated to proceed to operate said system, doing all maintenance and repair work to said system. WHEREFORE, this Agreement has been executed by the Mayor and City Clerk for and on behalf of the City of Little !lock after the enactment of ordinances authorizing this Agreement, and the Bill of Sale herein required, and this Agreement has been executed for and on behalf of the Arkansas Power & Light Company by its President and its Secretary, duly authorized by the Board of Directors of said Company. ATTEST: City Clerk CITY OF LITTLE !ROCK Mayor A- 1UUNSAS POWER & LIGHT COMPANY ATTEST: By President Secretary Section 3. That the Mayor and City Clerk are hereby authorized, directed and empowered to execute a Bill of Sale conveying the street lighting system of the City of Little Rock to the Arkansas Power & Light Company in accordance with a contract in the form set forth above and to do any and all things necessary and required to consummate said con- tract and sale of the street lighting system and to require - J - a and compel the Arkansas Power & Light Company to perform and to do all things obligated by it under the terms of said contract and to receive and receipt for payments of the pur- chase price made by said Company. Section 4. All ordinances and parts of ordinances of the City of Little Nock in conflict with this ordinance are hereby repealed. Section 5. Because of the City's inability to operate and maintain an adequate and efficient street lighting system in the City of Little Rock, human life and property is endangered and subject to undue hazards, and by the passage of this ordinance the City of Little Rock will obtain better street lighting for its inhabitants, now therefore an emer- gency is hereby declared to exist and this ordinance being necessary for the preservation of public peace, health and safety shall be in full force and effect from and after its passage. PASSED: September 15, 1958 ATTEST: tr �, .0, SCMJ City Clerk APPROVED: ,l Mayor - 6 -