HomeMy WebLinkAbout5273ORDINANCE NO.
AN ORDINANCE PROVIDING FOR THE CONSTRUCTION
AND OPERATION OF A RESERVOIR, DpIT AND PIPE
LINE TO FURNISH A NEV; SOURCE OF SUPPLY FOR
V,`ATER FOR LITTLE ROCK, ARKANSAS: PROVIDING
FOR THE ISSUANCE OF WATERWORKS REVENUE BONDS
FOR SAID PROJECT: FIXING THE COMPENSATION TO
BE PAID BY THE ARKANSAW WATER COMPANY FOR
SAID MATER: FLING THE DETAILS IN RESPECT TO
SAID BONDS AND PROVIDING FOR THE METHOD OF
PAYMENT THEREOF AND DECLARING AN EMERGENCY.
WHEREAS, the City of Little Rock (hereinafter called
the "Cityff) desires a new type of softer water and new source
of water supply, and public interest and necessity require
that a. new source of supply of softer water be obtained; and
WHEREAS, the City Council of said City has caused to
be made by duly qualified engineers surveys of the possible
sources of supply for suitable water available to the City of
Little Rock, and have determined that Alum Fork, in Saline
County, approximately thirty —sever (37) miles vest of the City,
is a suitable and desirable location to construct a. dam and
reservoir to impound a new source of supply of suitable water,
and of a. pipe line to be constructed from said location to the
City of Little Rock to make said water available for distribu-
tion in said City; and
V,j'HEREAS, said engineers have prepared plans and
specifications for said dam, reservoir and pipe line, and an
estimate of cost of the construction of the same, and of the
real property necessary to be purchased; and
WHEREAS, the Arkansaw Water Company, a solvent cor-
poration owning the distributing system in said City of Little
Rock, has agreed to purchase from the City of Little Rock wa-
ORDIPANCE NO.
#2
ter delivered from said source of supply and to pay for said
water so received an amount sufficient to repay to the Public
Torks Administration all sums necessary to retire a loan, both
principal and interest, sufficient to pay the cost of said
project and also to operate and maintain same without cost to
the City of Little Rock, as provided in the said agreement;
and,
WHEREAS, such plans provide for a. complete source of
supply, consisting of a reservoir, dam and pipe line to connect
said reservoir with the distributing system of the Arkansaw
Vater Company in the City of Little Rock, together with all
equipment necessary for the operation of said reservoir, dam
and pipe line and also for the purchase of an easement or a
fee title to all lands necessary for the construction of said
reservoir and dam, said lands being described as follows:
East Half (E2) of East Half (E2) of the Northwest Quarter
of Section 22; Northeast Quarter (NE4)of Section 22;
South Half (S2) of Southwest Quarter (SV'r4) of Section 14;
Southeast Quarter (SE4) of Section 14;
Northwest Quarter (NW4) of Section 23; Southwest Quarter
of Northeast Quarter (NE4) and Northeast Quarter
M4 of the Northeast Quarter (NE4) of Section 23;
South Half (S1) of Southwest Quarter (SV4) of Section 13;
North Half (N2) of Section 24; Northeast Quarter (NE"') of
Southeast Quarter (SE4) of Section 24;
All in Township 2 North, Range 18 'est; and
tit'est Half (Vi'2) of Section 19; Southeast Quarter (SE-1) of
Section 19; East Half NO of the Southeast Quarter (SE-1)
of the Northeast Quarter (NE-1) of Section 19;
North Half (Ni2) of the Northeast Quarter (NE-1) of Section 30;
Northwest Quarter (NV14) of Northwest Quarter (NVIl) of
Section 29;
All in Totianship 2 North, Range 17 West.
Also all easements of way for said pipe line.
ORDNANCE NO.
#3
WHEREAS, the City Council has examined and approved
said plans, estimates and computations, and finds and declares
that it is for the best interests of said City that said proj-
ect be constructed; and
WHEREAS, said City is without funds with which to
construct said project except from the proceeds of the bonds
hereinafter ordered to be issued (hereinafter called the
"Bonds ") authorized by Act 131 of the Acts of the Regular Ses-
sion of the General Assembly of the State of Arkansas of the
year 1933, as amended, together with certain funds to be fur-
nished by the United States, sufficient funds to construct
said project can be provided:
NOW, THEREFORE, BE IT ORDAINED BY THE SAID CITY
COUNCIL OF LITTLE ROCK, ARKANSAS, AS FOLLOWS:
Section 1. That the estimated cost of the construc-
tion of said reservoir, dam and pipe line (hereinafter called
the "Project►y) and the purchase of said real property, estima-
ted by said engineer, is found and declared to be the sum of
Three Igillion Five Hundred Thousand Dollars ($3,500,000).
Section 2. That said system be constructed and said
real property be purchased according to t.e plans and specifi-
cations heretofore filed with the City Clerk; and reference to
such plans and specifications is hereby made for a more de-
tailed description.
ORDINANCE NO.
Section 3. The City of Little Rock shall furnish to
the Arkansaw VvIater Company Mater from said new source of sup-
ply at the settling basins.-of the Company in the City of Lit-
tle Rock, upon the following terms and conditions, to -wit:
This contract, made by and between the City of Lit-
tle Rock, in the State of Arkansas, herein termed "City"., and
Arkansaw Water Company, a corporation organized under the
laws of the State of Arkansas, heroin termed "Company".
W I T N E S S E T H#.
WHEREAS, it is desired by the parties hereto to se.
cure a new source of water to be distributed by the Company
to its customers in the cities of Little Rock, North Little
Rock, and vicinities; and,
WHEREAS., surveys have been made by the City that
show It is feasible to secure water for those purposes from
an Impound igg vater reservoir on Alum Fork of Saline River,
in Saline County, Arkansas; and,
WHEREAS, the preliminary plans have been prepared
by the City for such reservoir, dam, P.nd one continuous pipe
line, with gravity flow of the water from said reservoir to
the Company's settling basins, all to be constructed at an
estimated cost not exceeding Three billion Five Hundred Thous-
and Dollars (1",500,000); and,
WhEREASp it is conte.-Inplated that the City can secure
funds for the construction of such impounding reservoir, its
dam, and continuous pipe line, by a free grant from the United
States Government of forty-five per cent (45%) of the cost,
and a loan from the United States Government through the Pub-
lic Works Administration of fifty-five per cent (55%) of the
CONTRACT 4* 02
cost* the to not to exe0ed One .3illion Nine Hundred and
Twenty.-five Thousand Dollara to bear four per
cent (0) intgrost, paysyle tiezi.-Annue'lly., tble total princl•
pal and- inter#st In each yeas to 'be paysbl,, ecording to the
folloAng sabodulez
ME
19706
100,000.
1$39
1002080.
1940
100.,120.
1941
100,120.
1942
100S480.
1042
100000.
190*4
992880.
1945
99,720.
1946
99,0520.
194 7
100..280.
1946
990960.
1049
990600.
1950
990200.
1111451
99p760.
195F,
100,1240.
,1.953
990640.
1964
99P000.
1955
100,320.
1.956
99.v520.
1957,
99,680.
19ba
99,760.
1959
99,760.
1%060
992680.
CONTRACT
=it "M E"AW
990520.
99P280.
99..960.
1964
990520.
1965
100,000.
19"
99,360.
1"7
99,640.
1966
99,800.
1969 990880.
1970 99,0760.
1971 97,560.
1.972 9�,320.
10 M 92,080,
1974 90,760.
1975 88,400.
#Z
And# WBIPZM# It is further cont". pluted that al-,oulA
the United 6tates Govern-ment make the grant only.9 And not th,*
loans then the City my obtain from other sources z loan not
to excood One Million Wine Hundred arA- Twenty-five Tbousand
Doll arz ($1,1926pOOO),p secured by revenue bonds,, in order to
carry out the projeett
Mp 1=2YOM, to carry out t1,,-ie projeet If tho grant
and to are za4o by the United Etatez Govo#rnaent through tae
Public Torko Administration,, or if the grant is -%de by tier
United 6tates Government throv.W,11i the Public Works Adminis-
tration and this balance of trl,.e fund is obtainod through. the
sale of revenue bonds to **hers, the partV,.,s horeto agrte as
follows;
CONTRACT •
1*
Ttiv City shall* at its own cost and expense# to-
quire, all necessary
sh*ll construct and
and continuous pipe,
said reservoir to V
ly according to the
by the Rugl"or for
land: rights-of-way anal wator righta and
maplete and pay for the dazp raziervoir
line with gravity flow of the vat*r fr*m
-.,e Coxpany*s WtUng basins, zubvtantial-
Plens and spoeificutionz mode tb*"ftr
the City, copy of which 1"04 b6 en *U%h*n-
ticated by the Clot k of Mho City and delivered to vie Comprny
before the =king of thin agree: onto
P*
The Company uhall have the right to and skull zupply
all users of such vatere if any influstry located cutziae of
the city limits of Little Rock shoUld desire aster and the
Company in ftny 1-1155 UMACO should conaid.er t.-u --t it could not af.
ford to supply such industry rith filtered water at Ute es-
tabliaLod rates# the City shall have the right to supply any
situp consumer with filtered vaterp and to connect its pipes
04"for with the pipes of the (.1ospany at a point and vith
the connections to be reiuonably designated and approved by
the Company,# considering t-o location of the industry; and
for U-.e 'wator a* taken from. V)e pipen of the Co pony tl.14*o City
zhall pair to the CozparW therefor ecording to the Companyta
Achedule of rttes in force In the City of Llttl* Rock at Vis
time* It is contompUsted try the parties that service eorx,*c-
tions vith the pipe line from the Cltyfs reservoir to the
Coazpany*& settling basins are un4osirable# but that the par-
tios have the right to pormit 'tuch at places and in 31tU&ti0nS
CONTRACT
w1-- 1�4
ere th� City and the tmany consider them uncbje tion bI ti,
Cod my to i elj the. unfiltered vv wear delivered therefrom# Rnd credit
the city With the quentitY of 2u*h vbtear as though it bu.� � on
delivered by than City t,o the Coapary's 3.,Atling let, ,5jr&j vnd if in
arly instimee the Qomp&ny concidors uny cormection _,nd i_prjy objec..
tiomble -1-0 City en all hrve t right to ,,��rmit -ouct connoctlon
.0 Z4,
and to deliver the unfiltered water to consumiers
paying the Co*pany thomtor one-hrzlf cent ;,f-)r one thtur-mnd (1,1,100)
gallons le�s, V--. Pm its rAtes for ieupplyinr filtema vvtttor in the City
C ty
of Little Roc :- � the 4 to bave crodit ror the quantity of such
water ens though it �tmd been Aellvtred, by it to th Co-,$ 7 6. h
0 n t the
coz-ranyoz-, aettling� ber"ins.
by N
Tbe Company shall be emtitlod to roceive and the City
shall deliver to the compenyv ��t itt. aottling basim, av tforesa'ld't
al'i w*ter n by the Coxp&ny for its own us o and to supply all
eorou,"re in the Citiev of Little Loorco North Littlo Voelc# and
vicinities; that suppliod to all conswerz to be trettod. &rd
filtored, eycept that distributed Were 1+11 roAches the Co,,"-,arlyls
in !,-vrrtvr'a.Ph. ."' Aertkof,
IF
Tho Co !a shall pay to t4lei City arrually for a purled
not to exceed uArty-eight (Ze,) yea irsy beginning when said dta',
reservoir and pipe line 4jre coz lot ed and a mtifficlent suppAy of
water Is available ttor '41eliveri to the Company vA its settling, tmaius
An he.-einbefore le scribe to zaujply $11 4:- Its c•nsu-ers# the sum
of One 14Mndred Thouawnd Five Hundred Dolli,-rs (41000500,00)9, such
annut-1 mounts to be paid In e ual ,%mrter-yv&rly installments in
advancep md being predicated upon Me City obtainine t�oth thm grunt
and the loan herein described from t*,-,e United 'c:t ..tes Gov ernmort
for ough the Public arks I.,all-inistratlon. If the am-aunt of T. s',Jd loan
to the City is lose then OnO 4.111ion Nine Hundred "md
Thouzand (#1#9E-,BpOOO)# tlnen ttie amount to be paid annually
by tlkie e n r to Cif O as providez' In this roaragraph, ti",11 be
CONTRACT .0 06
prop* -t ionately roduce4. On the Qt,!-,er lhando it the funds necessary
are obtained in pert by a grant from t,,' United Stbtez Government
throug,h the Public 1,1,'orks Aftinistration &nd in ptrt from a: runts
derived fro zi the sale of revenue bonds to othrrrag If the zoney
borro� =P.d by the amity to complete the pro lect for vhlob. revonus bonds
Lre i -Ued by 1-t is Ore '111,11on Nine Hmdrod Ttvrty-f ive Thousand
Z,ollsrs (q1'1.s9V5#000)* t-ho Co,-4;.wry will pay the City One Fundred
Thousand Five Hundred Dollars (41000500.00) yearly until such bonds
are paid In full* it the principal of such loan is lose,, the annual
payments by tim (;ozparty shall. be proportionotely roduced� rmymentz
to b =
e -do in a.,qual -".u&,rter-y*ar1y installmQntr. cooe ate W, V1,,-ree
xa after teginning of t delivery or water from the nee source
of au ply to t4 cons-tructed by t � e City to the Co, panyff- vettling
b&sins as provld*d for herein* IDuring the- continuanae, of V!ia Con-
trgct tho CompaW zi.,all huvo no right to, ofts*t against any such
pe-yaont any &,,tent that may be owing It by the City*
L-P
In uddition to the raynents to the City hereinbefore
rat fvrth* the Comcxny 4hall ziay for and have chtkrgo of tri► nor-.-.al_
tai inter.,Lnee and operation of tfie nev reservolr* dam and riro lines
such --sintentnce con-sisting, of treatment of the wateirp cutting gr,-nzsp
patrolling vatorshed and ;'ipe line,, and ordin,•ry .,roptirv; end tie
Company shall IiXewlso bzve cctntrol of the toarface of the rat or in
reservoir, with the rlrtt to -egulate or prohibit bo-ting"o f1sh.
IrWp avt=,ing, or any other such ureso Provided# havover# thr-t at
tf-P ci-ection of the City# evidenced b,-/ ninety (90) days tritten
nc,tico from the City to the CWAVSVr# the City Ehall havo the rtght
to tuko over said maintenonco dut-les t.nd control and pay all tl,,;,*
costs thf.,reof; and in thvt ovont the Conpany all lWy to tho
City the addlitianal stux of Six Hundred 6-'-'xty-six and. C-6/100 Dollrrs
(t-666,66) per month so IoLg an vhe City dischurges such, duties#
which tho parties estIwAo will bo 1J,4e cost to the City of
CONTRACT � #7
auch control,, norms -:l asintenance and ordinary repairs.
LIM
The City shall %ake proi.-tiptly, it.n own exponsoo, ary
ropp,irs nseded in sald reservoir# dcm and Ape 11,nzap ether
V�ttn the ordinary repairs thIrt shall be --Mde ltq V-e CoAps-ny as
?,�or*imbov* previdedl sud if the City t,,.gkev- ovor tts **ntrol
and maintanonce of V,;,e rasarvoirg di,,,,m tnd pipe 11 tie as heroin
-providedo It tnll promptly u: be tny ordt t�p,.rv. reptirs for t
be needed and shtll prwAptly and properly p'dorm all dutios
connected v4th au ch control and mai-ntonance*
71,
Vie �o4oany ashall take fro= said Impoundinf, reservoir
constructed by the City all water needed by the Co-apany for
Its cv n use and to sul,,,, ply, 'Little Boc, North Little Foel-z,• and
oll adjacent torritor7p �aiich anapply i rei--,sonebly avail -
le.
8*
The ptirtles understand tud rrgree ti the, p1sais for
tie now reservoir nnd pipe line do not# hnd the compleUd work
v-111. wts, provide a reserve water tai-pply from the new source
on ccxplotioni -%,ad the company 3hull coat tuuougly agintair,
its Prezent pmpin,-, plaants ifccexzories and tux11U,.ry VAter
oupply k-orks in n useqful trai '- jtlon# S $t&ndby
for 4dditional rr-ter zu!.,,Ply from the Ark -,rasps Elver and Co,,, pony
uell s for the use of its in the event of intorrup-
Ple
ti,m- in the 3,upply from tL.e np�wt iAntil such ti az tl-e
Co„.Iparvy or the City may provide t necepsary reserve suprly
P
either by a duplication of *(1;!e pipe line fro:* the now re ervoir
to the Comp&nyfs sottlirti- b�sinz'', or otrer zartrpa V,�-,t will
CONTRACT 4116
provide t: adequate adequate reserve 3u 1y of yvater available tt all
ti-.ues, A.h.f"Ireby eliminating neceaalty for said rum ping
p1tatp acceszories and auxili&ry water supply ur.-4 it is
found as a, faetp and agreed to by the -parties 1,,,.er#to# t?Mt the
maintonanae of said 1',,umping plant and oaid othor worlics as a
sto,ndby to of rri: ,,4* Importwice to the City and twho Company
In order to a"uj-e an sd*;,u4t* supply of water at all tines
for fen eral us#s and for fllye extinguish-zent of fires$ as a
proteetion against the aupply -I,f water from 1,,he now sailree
t�,; 4 11
being, interrupted or Vrisufficterrtt# i,�nd 14 4,rovision is of the
exaenee of tl>liz ccontract.
EM
There shall I-,,* inv4Vt-,-l'..sd by the City a i"AArt of t1his
pro'ect, a proper metsurine device adjuvent to VZp
,"ettllng "t-vatins to vaerssure the 'water doliverod to the Colp'Uny
by the City* The City sh&ll havo the rigbt to inzpeet V"As
dovice, urid both Yptrtiez to be prosent at ta* mater reading**
For be tinnual payments to the City to be --wder by tie Comps y
an provided in purAeraph 4 1r,,ereof,, th,e Coxpany shiall be entitlod
to receive In each yearly ps.,griod after i�ervico from the City
to the C*7�,pzry as provided for in this eontract Is co�mpneodj,
two billion five hundrod million (2#500#000,#000)
del lops of a t, -rj
und for all water delivered to it by the City in exeoss thereof
in ary such. ye.,i.rly period tho Coxp4ny shall pay to the City an
addlitiomvA a. t of three and one-half cents for each
one thourarW (10000) gallorej but from � ,Uwh Iua so 'Payable to
vve City by tho Comp-arty for such ox.east., water in eseh yearly
ptorlod there whall be d*duot*d by the Coyap-6ny an tiourt
to the difference tatr#Or* t1je sum, of Eighty. fly p Tlouse Bix
Hundred Dollurs ($850600) 4nd the tnnual *.wunt re Lred to be
paid to the City z-: a .."revided for in parsgraph 4 herpof# Each
COVITRACT #9
yeurI7 period shall :,tend alono In �O ie cow putation of the
respectivs p.&yverts and credits 1),rovid.Ad for in ttis partgr*ph',
and zf,tall not be cuzul*tive so thtt such pR"- entrs, an.4 oredite.
carry over into any futuro yearsw
100
On lotting of the cop-tract for conotruction of the
reservoir* d6a and pipe line, folloving 4pprovai of the I
*r*d/or ert,nt by the Public Works Administrrtion of the United
Ctates, the Conpan► $hall pay for �e City riftaen Thoustrid
Dollers (41!50000) in c&shs, on order of the Uyor,
lit
V,e Company vill cooperata with, tbe City in t3 o con-
summation of vaid Project# -snd at it ovn expen a* lend such
aid# advice tnd zervice to the City as tho Company deeza proper;
ent,� ithout reTuire howovc.* to o so# or rospon-vibility for the lar or wordono thereunder,
IP*
No pFrments made by thfL Compvny to the City on vaid
project, as ',verein prr.vided ."org aball be ' -rltton utp es a
capital tnvast%ent of the Comparq# but shall be ineluded in its
oper6ting exponses,
This contract nhall. not operzite ss., n vat-ver by the
City of any right the City may not eve to puraliaae Vh* property
of Via `74'a ter Coapany at & date ,.ubs*v,,uorat I.-.* tho date of this
contract* if it should so fdiaoirej but any tuah purcha" by
the City of tl*.e prormrty of the Cwapanyj or v substantial �,,-.rt
I
CONTRACT .0 #10
thorn # shall roll eve too Company of all of its liabilities un-der
V.-)ia contraotp Find this oontr6et shall torainateo Nor shall this
contract operate an a waiver of Any rightr, the Coipary moy lave
under exiettng, franehisoo or inletermlllnuta perzits*
14.
Should the loan for completion Of the p rya jo-ot be
by the Public Tforks AdminiStratio r. of the United Rates Govemmentj#
wb reinbe fore deseribeds then as security to It end subo*quent
1-ioldors of tale cads *videncivir snid loar. by it agtin'st 40fault of
t�--Pe Co pan y in paying the City the Amount duo In a °er-,,r during
tht continuance of this Contrcets described in pkragrapb. 4# the
Coapany shall deposit with some bank In thie City of Little 1�ock
or in the City of hev, iorkv desiXnated by staid flutlic WorU Adminix-
trotlon# One hundred 744-Aousand Dollars ($1,00#000) par `galje of
of tbe United EtEtes G,,�vernment# or bonds the priticipal of ,-IAch
Is g-unrazteed by the United Etastes Government; such dop,,;Sit of
bonds to be .de in the folloving amounts in thM following Y*Prsl
Ismodiately after ao,*,pletion of t-he dam., reservoir Pnd
pip* line and delivery of the water by the City to the Co-�kpxr4j
Fiftoon. Tl:ouaand Dollars (115p,000); ut tbe beginning of 060b
yetr up tc "ad including, seventeen (17) years tliere�fterp Five
Th,oucand Dollars (65,#030)*
Such deposit of bonds to, be tw--.de vith an appropriate
instrument of ,
�,,)lodgop executed by 10,ie Cozpanyx providing tl t
sold .0 7,9
tt-.0 Cov t
prirq 4#fatjjt in any fue.h payn du th Cit a
cuff lei rxitiber of said bonds to mace cod such defe%11* 'Nall be
sold by the bank in which 4#positedp at .ublie sale Aftor five days
public notice* ho Intorost on ,,-,aid Bcr4r �,,o deposited by tho
Company under pled go accruing and paid ,,%fter ,Dluch dern-sit by the
Co�x.pany ,;1hall, Selo n to taid bo turned over to the Co; apay nY try Such
bank -,,,hen collectede if any uch dep,:°-sited bond taa'cures itqnd 12
paid rhile in the deposit aforossid, on a7ubetiVating other Govorn..
CONTRACT 'flil
,aent bo-nds,, or bonds the principal of which it guarantood by tho
United States Governmentp of per value equal to the tzount of
cash received by 1-he d*positaryj Such crish shall be mid to the
compwny. Any such Donds thp-t may be in raid deposit on tarmins-
tion of this *Qi-.trt-ct sA.Jall be refiirnf,,4 to the Ct---Ptmyj,
A2 tires annual -, yAerttS by the Comp-any to the City
herein prnvided for to meet tkie r�aturitiea of principal And Interft
ast of the revenue tK,,,.�ndv to be issued by the City will so.,40wh6t
exceed the amount neca:�sary to pay such maturitlns ir. all or nearly
all the years, each One Thous*nd D,^,Il&rs (4,1#000) aceumtulated
by the City from such t.,,xcevs paymentop after tsayAent of legltiw�te
expenses incidental to tie payment of said rev *me bonds# Wh,;-all
h s iepooited by it -ith the said banks �Lnd tlzereupon ponds In thtt
amount tt par shall be released fro z the deposit 4nd pledge and
raturned to the Co pony. And likoviso# any ,am s tat may be in
by the Compbny to tll,* City for axees,% water token by the Company
from the City, 4,,6 describod in phray ,,,rrvph 9 heroof# af*%,,Pr all,
otl",er credits the Cc.,-,pony may ,Sve aetiiint such excesti water
shall be deposited by Ape Coipv-ny -.,-ith the dopo3ltary of zwch
Govornment Bonds# &nd q,,.ereupon E nos of *.he par value e to
the wgumnt of such cash deposited he rel*aswd from said deposit
i'"nd pledge and returnod to Ithe Compezy., C;ssh zo deposited in lieu
of bonds, Az provided for in this paraegraph# thall be under and
subject to the plods e, in the some %,,,,nner and to t same exterit
,s more the. bonds relo�.sed by r- "ich cash deposited*
IN
This contrAct is for the period of tbirty-eight (M)
years from the dlate the first 7, rterly payment O&or water is due
from the Co,-apany to tie Cityp as provided In j*ragraph 4 hereof
and until said loom is prAdj but nliall torminate if before the expirs.
Lion of thpnt time the City payx In full the '.cu,,,n "'or completion of the
clormcl No #22
project h-oroinbefore dazerlbed--$ and VA# OmOaet Pb011 b$
blndin.g on Vhe res*Gtive zuee*axors amd *"Igns of 00 P*r-
16,
Ttis, contrapt sho.11 be on the partiss vb4n
till � :f '.to re halts and provisious have been #4,,pproved, by ths
` ' uts of Arkmasaso $ad
Do-
,purtaont of Poblic Utilities of Vhr,
Vn*.n the propor off ictals of th-* Public i7orzts Administration
of Cho It1bitod to gee have zpprov*d tb.* final pi ,nor crn-
struction of th# "strvoir# dam and, pipe it boing, u-.%4er-
Steed that the rivAl PAVZS Shall b-P. subtuntiully tho samm as
t*n* Pro u"nary plans*
WITVW our btands wid aeoll#g his bird
doy of Sopt"borp M-25*
(6,1104L) CITY OF
Ahoots
wow
(SM) rt.-yf1tP"yJ
*C 0 x P A " y0
APPROVOg, tnis f.et,-,tw4ber 7* 192M
DZPAhVOT Or KJ`�Lzgl�:�, TITTLITI-RF OY' TiAE, ETATE. �,Yv'
ORDINANCE NO.
#5
And this Council further finds and declares that
such rates, charges and agreements as above set out will pro-
duce a total annual revenue sufficient to pay the total oper-
ation and normal maintenance expense of the project and pro-
vide for the payment of the bonds, both principal and inter-
est, as the same so due are payable and to create all funds
herein provided for. Said charges and rates shall never be
reduced until all the bonds and all coupons thereto attached
have been paid in full.
Section 4. None of the facilities or agreed services
afforded by the project shall be furnished without a reason-
able charge being made therefor.
Section 5. The Treasurer of the City shall be the
custodian of the revenues derived from the system and shall
give bond for the faithful discharge of his duties as such cus-
todian (such bond to be fixed and approved by this Council.)
The Treasurer shall deposit all of the revenues of the project
as collected into a separate fund (herein called the "Water
Fund "). The water fund is hereby pledged, mortgaged, and set
aside and shall be administered as follows:
(a) Bond Fund. There shall be paid into a separate
account (hereinafter called "Bond Fund ") during each year in
which any of the bonds are outstanding, beginning in the year
preceding the first maturity date of the bonds, the amount re-
quired to meet the interest and principal payments falling due
on or before the next maturity date of the bonds; provided,
however, that the payment of the amount required to meet the
interest so due on the day of shall begin
when the first revenues are collected after the completion of
the construction of the project. The amount required to be
ORDINANCE NO.
IN
paid into the bond fund each year shall be paid in substantially
equal quarter - annual payments from the revenues of the project
before any revenues of the project received in such year shall
be used for any other purpose. If the revenues of the project
in any quarter- annual period are insufficient to meet the re-
quired payment into the bond fund then the amount of any de-
ficiency in the payment shall be added to the amount otherwise
required to be paid into the bond fu=nd in the next quarter-
annual period. The moneys in the bond fund shall be used
solely for the purpose of paying the interest on and principal
of the bonds.
When the moneys held in the bond fund are sufficient
to pay the principal of and interest on all the bonds then
remaining outstanding, the City shall not be obliged to make
further payments into the bond fund.
All moneys held in said bond fund shall be deposited
in a bank in the State of Arkansas which is a member of the
Federal Reserve System, and in which deposits are guaranteed
by the Federal Deposit Insurance Corporation.
If a surplus shall exist in the bond fund the amount
shall be used insofar as possible for the purchase and retire-
went of outstanding bonds at a price not to exceed the face
value thereof plus accrued interest.
Unen all the bonds have been paid or retired, any
moneys remaining in the bond fund may be used in any manner
which may be determined by this Council.
(b) Depreciation Fund. After paying the amount pro-
vided above into the bond fund in any period, five (5) per
centum of the remaining moneys received in the water fund
during such period shall be paid into a separate fund, (here-
inafter called "Depreciation Fund ") which proportion is hereby
found and declared to be a proper and adequate amount to be
ORDINANCE NO. �
applied to the depreciation fund. The depreciation fund shall
be used solely for the purpose of paying the cost of replace-
ments made necessary by the depreciation of the system.
If a surplus shall be accumulated in the depreciation
fund over and above that Which is necessary to defray the cost
of the probable replacements during the current and fiscal year,
such excess shall be transferred to the bond fund; provided,
however, that no such transfers from the depreciation fund to
the bond fund shall operate as an abatement of the bond fund
requirements hereinafter set forth.
(c) Operation and maintenance Fund. After paying
the amount provided above in the bond fund in any month, then
if and when the City shall take over, operate and maintain the
project, any moneys received in the water fund during such
period and not required to be paid into the depreciation fiLnd
shall be paid into a separate account (herein called the
"Operation and maintenance Fund "). The operation and mainten-
ance fund shall be used solely for the purpose of paying the
cost of operation and maintenance of the system. If any sur-
plus shall be accumulated in the operation and maintenance
fund over and above that which is necessary to defray the cost
of operating and maintaining the system during the current and
next ensuing fiscal years, such excess shall be transferred to
the bond fund; provided, however, that no such transfer from
the operation and maintenance fund to the bond fund shall oper-
ate as an abatement of the bond fund requirements as hereinbe-
fore set forth.
Section 6. Nothing herein shall be construed in such
manner as to prevent the issuance by the City of additional
revenue bonds to finance or pay the cost of constructing any
extension, betterment or improvement to the project, or purchase
ORDINANCE NO.
M
of the distributing system of the Arkansaw Water Company in
Little Rock. Provided, however, that the City, in order to
insure the payment of the interest on and principal of the
bonds, shall only issue such additional revenue bonds on this
project while any of the bonds remain outstanding, if, at the
ti_1e of the passage of the ordinance as provided in Section
10, Act 131, Acts of Arkansas 1933, as amended, (in which the
Council of the City shall provide, find and declare the value
of the contemplated extension, betterment or improvement and
the value of the project), the revenues of the project for the
fiscal year immediately preceding the passage of said ordin-
ance (in this paragraph called the "Revenues ") shall have been
sufficient in amount so that, if they be deemed to be the total
revenues derived from the entire project when the contemplated
extension, betterment or improvement is completed and are divid-
ed in the manner provided in said Section 10 for the division
of the revenues of such an entire system and the amount of the
revenues which (pursuant to said Section 10) would be deemed
to be derived exclusively from such contemplated extension,
betterment or improvement is subtracted from the revenues, the
remainder will be at least equal to the maximum amount required
to be paid into the bond fund in any year while any of the
bonds remain outstanding plus an amount sufficient to pay the
cost of operation, maintenance and depreciation of the project
for the next ensuing year.
Section 7. That the project shall be hereafter oper-
ated upon a fiscal year basis. The first fiscal year shall
commence on the completion of the project and delivery of water
to the Arkansaw Water Company, and shall end one year thereafter.
ORDINANCE NO. #9
Section 8. That the revenue bonds of the City
(hereinafter called "Bonds ") be issued in the total amount of
One Million Nine Hundred and Twenty -five Thousand Dollars
($119251000), which amount, together with the funds to be fur-
nished by the United States of America, is necessary to pro-
vide sufficient funds to pay all cost of the herein - described
contemplated construction and the purchase price of the real
property, including engineering, legal and other necessary ex-
penses, together with interest to a date six months subsequent
to the estimated date of completion of the project; that said
bonds each be designated "Waterworks Revenue Bonds ", to be
dated on the date fixed by the Mayor, to be in the denomination
of One Thousand Dollars ($1,000) each, to be numbered from one
(1) to nineteen hundred and twenty -five (1925), both inclusive,
and mature in the numerical order on the first day of January
of each of the years and in the amounts, as follows:
Years
Amounts
Years
Amounts
1938
$ 23,000.
1957
$48,000.
1939
24,000.
1958
50,000.
1940
25,000.
1959
52,000.
1941
26,000.
1960
54,000.
1942
27,000.
1961
56,000.
1943
28,000.
1962
58,000.
1944
29,000.
1963
61,000.
1945
30,000.
1964
631000.
1946
31,000.
1965
66,000.
1947
33,000.
1966
68,000.
1948
34,000.
1967
71,000.
1949
35,000.
1968
742000.
1950
36,000.
1969
77,000.
1951
38,000.
1970
80,000.
1952
40,000.
1971
81,000.
1953
419000.
1972
81,000.
1954
42,000.
1973
83,000.
1955
45,000.
1974
842000.
1956
46,000.
1975
85,000.
ORDINANCE N0. P"'10
that the bonds bear interest at the rate of four per cent (4 %)
per annum, payable on the first day of July and semi- annually
thereafter on the first days of January and July in each year,
that the bonds be signed by the Mayor and sealed -Frith the cor-
porate seal of the City and attested by the Clerk of the City
and that the interest upon the bonds be evidenced by coupons
thereto attached, the coupons to be signed by said Mayor and
attested by said Clerk by facsimile signatures; and the said
Mayor and said Clerk shall by the execution of the bonds adopt
as and for their own proper signatures their respective facsimiles
appearing on said coupons; that the bonds and coupons be payable
in such funds as at the time of the respective payments are legal
tender for the payment of debts due the United States of America,
at the office of the City Treasurer of the City at Little Rock,
Arkansas.
The bonds together F-ith interest thereon shall be payable
only out of the Bond Fund as hereinbef or•e defined and shall be
a valid claim of the holder thereof only against the Bond Fund,
and the amount of the revenues pledged to said fund, which amount
of said revenues is hereby pledged and mortgaged for the equal
and ratable payment of the bonds and shall be used for no other
purpose than to pay the principal and interest of the bonds as
the same accrue.
Section 9.. That said bonds and coupons be in substan-
tially the following form:
x=11
No. $1000.00
UNITED STATES OF Z ERICA,
STATE OF ARKANSAS,
COUNTY OF PULASKI,
CITY OF LITTLE ROCK
4% WATERVIORKS REVENUE BOND.
KNOW ALL =TEN BY THESE PRESENTS; That the City of
Little Rock, in the County of Pulaski, State of Arkansas,
hereby acknowledges itself to owe and, for value received,
promises to pay to bearer or, if registered as to principal,
to the registered holder hereof, as hereinafter stated, the
sum of One Thousand Dollars 0;1000.00) on the first day of
January, 19 , with interest at the rate of four per cent
(4 %) per annum, payable on January 1, 19 , and semi - annually
thereafter on the first day of January and July of each year,
upon presentation and surrender of the annexed coupons as they
severally become due. Both principal hereof and interest
hereon shall be payable in such funds as at the times of the
respective payments are legal tender for the payment of debts
due the United States of America, at the office of the Treas-
urer of the City of Little Rock, at Little Rock, Arkansas.
This bond is one of a series of One Thousand Nine
Hundred Twenty-five (1,925) bonds aggregating One '11illion
Nine Hundred Twenty -five Thousand Dollars ($1,925,000), each
in the denomination of One Thousand Dollars ($1000), dated
January 1, 19 , numbered from 1 to 1925, both inclusive, and
issued for the purpose of providing for the payment of the
cost of construction of a water reservoir, dam and pipe line.
for said city.
This bond and the series of -which it forms a part are
issued in accordance with the provisions of Act 131 of the
regular session of the General Assembly of the State of Arkansas
for the year 1933 and do not constitute an indebtedness of said
#'12
City within any constitutional or statutory limitation, and
are payable solely from a fixed amount of the gross revenues
from the said waterworks system. Said amount has been duly
set aside, pledged and mortgaged as a special fund for that
purpose and identified as the "Bond Fund ", created by the
ordinance adopted by the City Council of said City on the
3rd day of September, 1935, under tr:hich this bond is author-
ized to be issued.
In and by said Act 131 of the General Assembly of the
State of Arkansas for the year 1933 there is granted and
created a statutory mortgage lien on said waterworks system,
to and in favor of the holders of said bonds and each of them,
and to and in favor of the holders of each of the coupons evi-
dencing the interest on said bonds; and said waterworks system
shall remain subject to such statutory mortgage lien until the
payment in full of all said. bonds, both principal and interest,
shall have been made.
This bond is transferable by delivery, unless registered
as to principal at the office of the City Clerk, and. such regis-
tration noted hereon by such Clerk. After such registration,
upon delivery to said Clerk of a written instrument of transfer
executed by the registered holder or by his attorney thereunto
duly authorized, this bond may be transferred, and such transfer
shall be similarly noted hereon. No transfer hereof shall be
valid unless so made, but this bond may be discharged from
registration by being in like manner transferred to bearer, and
thereupon transferability by delivery shall be restored and
this bond may again from time to time be registered or trans-
ferred to bearer as before. No such registration shall affect
the negotiability of the coupons appertaining hereto, which shall
continue to be transferable by delivery merely and shall remain
payable to bearer.
#17
V
IT IS HEREBY CERTIFIED, RECITED, k D DECL,F11D that all
acts, conditions, and things required to exist, happen, and be
performed pursuant to and in the issuance of this bond have ex-
isted, have happened, and have been performed in due time, form,
and manner, as required by la.iiv, and that sufficient of the
income and revenue to be derived from the operation of said pro-
ject has been pledged to and rill be set aside into said special
fund for the payment of the principal and interest on said bonds.
IN ViIT LSS WHEREOF said City of Little Rock, Arkansas,
by its City Council, has caused this bond to be signed by the
Mayor thereof and sealed with the corporate seal of said City
and attested by its Clerk, and has caused the coupons hereto
attached to be authenticated by the facsimile signature of said
Mayor all as of the first day of January, 19 .
(SEAL)
ATTEST:
Mayor of City of Little Rock, Arkansas.
City Clerk of Little Rock, Arkansas.
(Form of Coupon)
Ho.
On the first day of
$20.00
119 , the City of
Little Rock, Pulaski County, Arkansas, promises to pay to bearer
the sum of Twenty Dollars (�=f--'0.00)1 out of the fund specified
in the bond to which this coupon appertains, at the office of
the Treasurer of the City of Little Rock, at Little Rock, Arkansas,
in such funds as at the time of payment hereof are legal tender
for the payment of debts due to the United States of America,
being interest then due on bond dated the first day of
193 , and numbered.
IdAYOR .
(The signature of the ±}.iayor to the coupon may be lithographed or
engraved.)
#14
(Form of Registry indorsement)
Notice: No writing on this bond except by the City Clerk of
the City of Little Rock, Arkpnsas.
Date of Registration Signature of
or trQUIer. In whose Name eZjat='_d C.
ORDINANCE NO.
#15
Section 0.
After
the bonds
have been executed
as here-
in provided, they shall
be
delivered
by the Vayor of the
City all
at one time or in blocks from time to time to the United States
or the purchaser thereof, at a price or prices which shall be not
less than par and accrued interest, and the rroceeds received
therefrom shall be used solely for the payment of construction
costs of the project and the purchase price of said real property,
including engineering, legal and other necessary expenses, and
for the payment of interest on the revenue bonds herein authorized
during the construction of the project.
Section 11. It is covenanted and agreed by the City with
the holder or holders of the bonds, or any of them, that it will
faithfully and punctually perform all duties with reference to
the project required by the constitution and statutes of the
State of Arkansas, including making and collecting of reasonable
rates and charges lawfully established for water sold or services
rendered by the project, segregating the revenues of the project
and its application to the respective funds herein created.
Secti„o 0 The City will maintain or cause to be main-
tained the project in good condition and operate or cause same
to be operated in an efficient manner and at reasonable cost.
Section U. Any holder or holders of tv-enty —five per
centum (215 %) in aggregate principal amount of the bonds at the
time then outstanding shall have the right at all reasonable
times to inspect the project and all the records, accounts, and
data of the City relating thereto.
0RDIN,L CE NO.
X16
S.C.iOn 14. So long as any of the bonds are outstanding
the City will not mortgage, pledge, or otherwise encumber the
project or any part thereof or any revenues therefrom, except as
herein provided., and will not sell, lease, or other�,:ise dispose
of any substantial portion of theJroject.
Section 15. The City will keep proper books of records
and accounts (separate from all other records and accounts) in
which complete and correct entries shall be made of all trans-
actions relating to the project. The City shall furnish to any
holder or - ,)urchc ser of any of the bonds at the time outstanding,
at the written request of such holder or purchaser, not more than
thirty days after the close of each six months' fiscal period,
complete operating end income statements of the project in reason-
able detail covering such six months' period, and, not more than
sixty days after the close of each fiscal year, complete financial
statements of the project in reasonable detail covering such
fiscal year, certified by the City Auditors.
Section 16. The City further covenants and agrees that
if default is made in the payment of any bond or coupon or if the
City fails to meet any sinking fund requirement the holders of
such bond may declare the bond immediately due and payable and
such bonds shall thereupon be immediately C -ue and payable and in
default.
Section 16'. The right is reserved in the City to call
any or all outstanding bonds for payment in the reverse order of
their maturities at par on any interest payment date, with interest
to date of payment; provided that in case any such bonds are
so called notice will be given of the number of each bond so
ORDINANCE NO. #17.
called by publication in a newspaper printed in the City of
Little Rock, Arkansas, of general circulation not more than
sixty and not less than thirty days prior to such interest
payment date and interest on any such bonds so called shall
be discontinued upon such interest payment date after such ad-
vertisement whether the bond and accompanying coupons are sur-
rendered or not.
Section 17. There shall be a statutory mortgage lien
upon the project, as provided in said Act 131, as amended, V,�-,hich
shall exist in favor of the holder of the bonds and each of them
and to and in favor of the holder of the coupons attached to the
bond, and the project shall remain subject to such statutory
mortgage lien until payment in full of the interest and principal
of the bond. If there be any default in the payment of either
the interest on or principal of any of the bonds the holder or
holders of any of the bonds may enforce the statutory mortgage
lien upon the project in accordance With the provisions of Sec-
tion 7, of said Act 131, and may by proper suit compel the per-
formance of the duties of the officials of the City, as set
forth in said Act. If there be default in the payment of the
principal of or interest on the bonds any court having juris-
diction in any proper action may appoint a receiver to administer
the project on behalf of the City, with pourer to charge and col-
lect sufficient charges and rates to provide for the payment of
the bonds and interest thereon and for the payment of the operat-
ing expenses and to apply the income and revenues in conformity
with said Act and this ordinance providing for the issuance of
such bonds.
ORDINANCE NO.
#18.
Section 18. To the end that a record of the pledge
of the revenues and agreement not to mortgage the property to
be constructed in this project may be preserved the Mayor be and
he is hereby authorized to file with the recorders of Pulaski
and Saline Counties, Arkansas, a certified copy of this ordinance
ackno-v,.ledged in the form required for deeds and mortgages frith
the direction that the same be recorded in the office of the
County Recorder as in the case of deeds and mortgages.
Section 19. The Mayor is hereby directed to publish
for one insertion in the Arkansas Gazette or Arkansas Democrat,
each of which is hereby found and declared to be a newspaper
published and in general circulation in the City of Little Rock,
Arkansas, thLs ordinance to which is attached a notice signed
by him, in substantially the following form:
"NOTICE
Notice is hereby given that the City of
Little Rock has adopted the ordinance herein-
after set out; that the said City contemplates
the issuance of the bonds described in said
ordinance and that any person interested may
appear before the said Council upon the 23rd
day of September, 1935, at eight o'clock, P.bI.,
at its usual place of meeting at the City Hall,
Little Rock, Arkansas, and present protests.
At such hearing all objections and suggestions
will be heard and said Council will take such
action as it shall deem proper in the premises.
(Signed) R. E. Overman,
Mayor,
Little Rock, Arkansas."
Section 20. All ordinances or parts of ordinances in
conflict herewith are hereby repealed.
ORDINANCE NO. #19.
Section 21. It is found that the Arkansas River,
as the present source of supply of water for the City and its
inhabitants, is unsatisfactory, in that it often carries large
salt content, and that the available sources of later from
dells to dilute it are hard, making it necessary, when it can
be reasonably afforded, that mater for the City and its in-
habitants be secured from a new source; and it is further found
that in pursuance to Acts of the Congress of the United States,
the Public Jorks Administration is authorized to make a grant of
forty -five (45) per cent of the cost of public works, and a loan
on liberal terms of fifty -five (55) per cent of the cost thereof;
and that the water that can be obtained from an impounding reser-
voir on Alum Fork of Saline River is soft and in all respects ex-
ceedingly good for supplying the City and its inhabitants; and
that applications for grants and loans to the Public Works Adminis-
tration for works of that nature must be filed immediately; and it
is further found that without the Government aid hereinbefore
described it would be impracticable to secure water from said new
source; and the immediate operation of this ordinance being neces-
sary for the mediate preservation of the public peace, health
and safety, an emergency is declared and this Ordinance shall take
effect and be in force from and after its passage.
PASS D:
1935.
APPROVED: _R
Mayor
(SEAL)
ATTES
City Clerk.
RECORDED: l , 1935.
(SEAL) „n