Loading...
HomeMy WebLinkAbout53110 R D I N A N C E N 0. 5311. AN ORDINANCE MAKING A CONTRACT FOR THE PURCHASE OF THE PROPERTY OF THE ARKANSAW MATER COMPANY SITUATED IN PULASKI COUNTY SOUTH OF THE ARKANSAS RIVER AND CONSTITUTING ITS WATERWORKS SYSTET1 IN THE CITY OF LITTLE ROCK AND VICINITY. Ni H E R E A S, in pursuance to Resolution No. 1352, adopted December 30, 1935, the mayor has entered into a written agreement with the Arka.nsaw Y ater Company for the purchase of its plant and property in Pulaski County, Arkansas, situated south of the Arkansas River, said con- tract being as follows: AGREE9EI'T THIS AGREEMENT, made on this February 15th, 1917-6, between the City of Little Rock., Arkansas., herein referred to as "City ", and Arkensaw Vtrater Company, .'Herein referred to as "ComDa.ny ", W I T N E S S E T H: 1. The City agrees to buy from the Company, and the Company agrees to sell to the City, the entire water works plant owned by the Company, situated south of the Arkansas River in Pulaski County, Arkansas, herein referred to as "Territory ", consisting of all land, buildings, structures, intakes, hells, standpipes, filters, equipment, distribution system and appurtenances in place, including attached fittings, gate valves, valve boxes, service pipes, stop boxes, .crater meters, meter boxes, and fire hydrants owned by the Company in the territory; together with all tools and equipment owned by the Company for the mainte- nance and operation of the aforesaid system in the territory; also all franchises, leaseholds, easements and rights- of-v-;ay ov.med by the Company for the construction, .reconstruction, maintenance and repair of all of said water works plant in the territory, and inventoried materials and supplies to the amount of $18,622.24, values as shown by inventories of the Company, office furniture, _fixtures, equipment, pertinent books and records, and motor vehicles, used in the operations of the plant in the territory, also the intake pipe and equipment on and in the river at the pumping plant, also five - sixths in kind of meter, hydrant and valve repair Darts at actual cost to the Company: excepting, however, the pipe line from the Venturi _peter located in the old City Electric Light Plant to and on the bridge and across the river, for ser- vice to North Little Rock, and the right to maintain it; the -1- office records pertinent only to the North Little Rock property and business; such parts of the office furniture and fixtures as are needed by the Company in the operation of the North Little Rock system. The chlorine gas cylinders delivered to the City by the Company shall be returned to the manufacturer by the City, i-hen empty, for credit to the Company, return to be made f.o.b. cars at Little Rock. 2. The price to be paid by the City to the Company is $3,850,000. in cash for the above described property as it existed on December 31st, 1935, (of which $105,000. is the sale price of the land des- cribed in the deed from D. Hopson and wife to the Company, Recorded in Book 192 at Page 486 of the records in the office of the Recorder for Pulaski County, Arkansas), and in addition the actual cost to the Company of additions to the plant in the territory made since December 31st, 1935, less abandonments at cost since that date, plus actual cost of meter, valve and hydrant repair Darts taken over by City. 3. The City also -purchases and shall own and collect all bills and accounts receivable (and that term includes water sold, but not billed) for water sold by the Company in the territory, except those owing by the City, at the time of the payment of the purchase price for, and taking possession by the City of the plant and equipment in the territory; the City to pay therefor 950 of the face or par value of that part of such bills and accounts receivable that are not more than 90 days old, less the amount of any unearned water charges -paid in advance; the City will pay the amount thereof to the Company from its first collections of its water bills, with full right and duty in the City to ter - urinate ir:ater service to any consumer for failure to pay any such bill or account. The first collections by the City from water consumers shall be set aside by the City Treasurer in a separate account, and paid over to the Company each ten days until the amount owing the Company by the n -w- City on this account shall be paid in full. The Company shall not apply any guarantee deposits on the part of any accounts that will be more than 90 days old on March 1st, 1936. 4. The Company shall turn over to the City Treasurer, to be kept by him in a separate account, in trust, all consumer guarantee deposits in the territory, with the accrued interest thereon as shown by the Company books, and also all unrefunded extension deposits on Company- ot:.rned mains and Company- o-rned services in the territory, as such accounts shall exist at the time the purchase price is paid and possession of the plant is delivered to the City. All such deposits shall be kept by said City Treasurer in a separate account on his records, showing the name of the depositor and the amount of the deposit; and none of them shall be diverted from the purpose for which the deposit was made with the Company, the City not to be liable for any deposit or interest not delivered to it. 5. Certain service pipes not now owned by the Company have been installed to unimproved property in the territory, the cost thereof having been paid for by certain improvement districts, development companies, other companies and individuals, under written contracts providing that whenever the property abutting the service is improved and immediate and continuous use of water contracted for by the owner of such abutting property, the Company would refund without interest an agreed_ upon amount; the title to said service to rest forever thereafter in the Water Company. The Company is to assign to the City all of such contracts, and the City agrees to make the refunds to said improvement districts and others according to the terms of said contracts. Certain water mains have been installed for certain improve- ment districts in the territory and there are written contracts with the Company, by the terms of which the improvement district paid for the cost of installation and the M.'ater Company agreed to operate and maintain the water mains with the title resting in -3- the improvement district until such time as the Water Company has refunded to the district the total amount so deposited or until the bonds of the district which were issued to provide for the cost of installing the maims shall have been retired. The Company is to assign to the City all such contracts, and the City agrees to operate and maintain such water mains and appurtenances and to make the refunds to the various improvement districts in accordance with the terms of said contracts. 6. The Company shall buy from the City, and the City shall sell and supply to the Company and deliver to it at the Venturi meter hereinbefore mentioned, all water distributed by the Company in the City of North Little Rock and its vicinity; and the Company shall pay therefor to the City five cents per 1,000 gallons during the period the City is required to pump the water so sup;-.-lied from the Arkansas River and wells, and four cents per 1,000 gallons from and after the time the proposed Alum Fork supply is placed in service; and this contract shall be in force for twenty years from the date possession of the Little Rock plant is delivered to the City, and shall inure to the Company, its corporate successors and assigns vrhere the common stock ownership therein is substantially the same as it is now in the Company; but such contract shall terminate should the Company sell its North Little Rock plant and system to the City of North Little Rock, or to others where the common stock ownership of the assignee is not substantially the same as it is now in the Company. 7. At the time of delivery of possession of the plant to the City, the City shall deliver to the Company its due warrant on the City Treasurer for the amount owing the Company by the City for hydrant rentals and for water furnished the City, and the balance then owing by the City to the Company on other account, after taking credit thereon for the amount of privilege tax at the rate of —4— $1,000.00 a month outing the City by the Company at the time posses- Sion of the plant is delivered to the City. 3. Delivery of the plant by the Company to the City, and payment of the consideration therefor by the City to the Company, and settle- ment of all the rather terms of this contract shall be made at the principal office of Guaranty Trust Company of New York, 140 Broadway, New York City, on a date not earlier than April 1, 1936, nor later than April 10, 1936, to be fixed by the City in a written notice to be actually delivered by the City to the Company at its office in Little Rock, Arkansas, not less t'1an thirty -two days prior to the date fixed in such notice for delivery and settlement. 91 The Company shall execute a warranty deed or deeds conveying to the City all of the lands owned in fee by the Company, and shall also convey the easements, rights -of -;ray, and other interests in real estate ozmed by the Company in the territory, and shall execute a bill of sale and assignment, using general terms of description, of all the personal property and choses in action to be transferred to the City under this agreement; and the Company shall deliver such deed or deeds and bill of sale and assignment to the City at the time possession of the plant is delivered to the City under this Agreement, together with abstracts of title brought down to recent date covering the land owned in fee by the Company, all contracts, easements, leases, and other instruments evidencing ownership or interest held by the Company in property south of the Arkansas River shall be delivered to the City with the deeds and conveyances duly assigned when requested by the City. 10. The Com-oany will pass all resolutions by Board of Directors or stockholders necessary to authorize the making of this agreement on the part of the Company, and the City shall pass the necessary ordinances making this agreement on the part of the City and for sale of water to the Company for North Little Hock as herein ?rovided. -5- 11. On delivery of possession of the plant by the Company to the City, the right and duty of the Company to supply tiater in the territory shall terminate. 12. VaITNESS the hands of the parties, this February 15th, 1936. hTTEST: ATTEST: City Clerk Assistant Secretary CITY OF LITTLE ROCK Los "CITY11 blayor ARKANSAVq WATER COMPANY By President MM "COMPANY" NOT, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LITTLE ROCK: Section 1. That said contract is in all things approved and shall constitute a binding contract between the City and the Arkansaw Water Company, according to its terms. Section 2. The Mayor shall pay to the Arkansaw Water Company, by check or in such other form as he may deem appropriate, from the proceeds of the revenue bonds of the City sold for that purpose, the sum of $3,850,000; and shall also pay when due such other sums as may be owing the Arkansaw Water Company under said agreement to purchase; and he shall cause to be issued and delivered to Arkansaw Viater Company due city warrants on the City Treasury in settlement of the general indebtedness that may be owing it by the City, as set forth in said agreement to purchase; and shall receive for the City deeds of conveyance and as- signment of all the property so purchased; and the!Mayor is fully authorized and empowered to do all other things neces- sary to be done on behalf of the City to consummate purchase of said waterworks property. Section 3. On payment for said waterworks prop- erty and delivery of its possession to the City, all rights and obligations of the Company to supply t,ater in the City of Little Rock and in the adjacent territory in Pulaski County south of the Arkansas River, shall terminate. -2- Section 4. It is found and declared that in or- der to consummate the issuance of bonds for the purchase of said waterworks system and construction of a dam, reservoir and pipeline from the new source of supply on Alum Fork, and secure the Government grant therefor and expedite the work thereon, and to relieve conditions of unemployment in the City and expedite the securing of i,ater from the new source of supply for the City and its inhabitants, the immediate operation of this ordinance is'necessary for the preserva- tion of the public peace, health and safety; and an emer- gency is declared to exist, and this ordinance shall take effect and be in force on and after its passage. .A." Approved: IPASSE-0- February 1936 �, Attest: 111 A Y 0 R. CITY CLERK.