Loading...
HomeMy WebLinkAboutOrdinance 1040 ORDINANCE N0. .. AN ORDINANCE AVM01tIZING TRE ISSUANCE Cg AU®ITIONAL WATER REV== BONDS FOR TIB PUtPOSS OF COMUtUCTINa BBTTERHMM AND IMPROVS02M TO THE MUNICIPAL WAMoo WORM SnTlKs SETTING UP A FUND FOR THEIR YAYNaTs AND ZZOLARINQ AN E1lsRL H=6 WMDU=, the City of Fayetteville , Arkansas + now owns and operates a mUn1oifAl waterworks system and has determined that it le necessary to build anew filter plant and to lay additional mains in order to extend slid ialprove the nater services and hes ascertained that the estimated cost of the .'bettorments and improvements will be $450, 000; and . WKMMk3s under the provisions of Ordinance No . 9430 approved October 29, 1948 (hereinafter bernsd " Ordinance No . 943" ), it hes Issued $82700op . in waterworks revenue refunding and improvement bonds dated December 1 , 1948, for which 3t tuts pledged ceritain revenues to be ,derived by the City frac the operation of its wterworks; ' and WHEREAS, Subsection 4 of Section llot Ordinance No . 943 expressly authorises the City Council to use arar surplus* as therein defined* that shall exist in the Waterworks roverAw Bond Fund, as created by said Ordinance No. 943, for the construction of betterments and Improve- meats to the waterworks systems a0 this disposition of surplus funds is 8180 one Of the purposes author ved by Section -8 of eat 131 of the Acts of the Oeneral Aseembly of the State of Arkansas for the y\eiir 1933, as aaendod (Section 19-4210, Ark . Stats . , 194T ) t and 1 VMXRZAS0 there .1a at this times aocordins to the report of the City' s auditor, a surplus revenWAUfficient to pay the principal, and interest on bonds Issued for this purpose of constructing betterments and improvements to the waterworks system; and xMI ;EASs the City has entered into a contract with T. 3 . Raney 6a Sons of Little Rooks Arkansas , to sell $450, 000 in water revenue bonds dated December 1, 1952, bearing interest at the rate of 3 3/4% per annum, payable semi-annually, and all due on or before ,December 1s 19830 and the purchasers ars now ready to tabs delivery of the bonds . . as soon as the .City oan legally deliv*r them and the City needs the proposed betterments and improvements to the waterworks system as soon as they can be aenstructed ; nows therefore . .. }y1(CROFILMED \ DF�TE , O..C.T�S--- & BE IT C[tDkZM by the eity ' Council of' thR City of yayetteviller Arkansas : SEOMON 1 , The City Council does hereby determine that the City shall - oonstruot certain betterments and UWoveeenta to the municipal waterworks system, namely: to construct a now filter plant and to lay an additional pipeline trope the storalp like to the filter plant in order to protect continuity of the Cityss water supply. The . estimated coat of4these betterments and lgworemente-- ineluding engineering, legal, and ether cxpenses incidental thereto and interest to six months After the enti.matcd date of completion of . ff the construction, which Is June is 2953--16 4450,Cbo . The betterments and leprovements are sometime hereinafte3e referred to collectively as the " Works , " and the entire waterworks system, Including the . , betterments and improvements after oonstruction has boon completed , is sometimes hereinafter referred to as the " System . " SECTIoff 2 . The sale of the proposed issue of bonds to T. J. Raney & Sons of Little ]lec)t, Arkansas , at * ' price of par and adarued Interest for bonds bearing interest at the ' rate of- 3 3/4% per annum Is hereby confirmed and -ApMoved , and it is ascertained and declared that the price at which the bond* were sold In a price allowed by law; that the life of the present waterworks system will extend well beyond 1993, the maturity date of the proposed bond issue: and that the maturity of said issue does not extend beyond the period allowed by statute . SECTIGN 3 , That under the suthorits of Act No * 131 of 1933, as amended, waterworks reveuw bonds of the City (bereipAfter sailed "bonds" ) be Issued in the total amount of 4450#0004, the proceeds of the sale of which issue are necessary to provide suffiei*nt fusels to pay the cost of the ' Works hereinabove described, including engipeering, .legal and otter necessary expenses) that said bunds be designated "City of Fayetteville Wtervarks Revenue Bonds of 1959401' be dated as of December 1, 2952, all to mature on or before 9*cember 1, 1983, but all to be callable for payment prior to maturity as hereinafter. act .forth, all, the bonds to be in the denemInstion of 41000 each, and the bonds to be nuaftred from 1 to 450, botch inclusive , all to bear interestat the rate of 3 3/4% per annumi payable semi-annually on June 1 and December 1 of each year beginning Jure 1, 1953, that the bonds be signed by the Mayor and City clerk and sealed with the corporate seal of the City; that the interest upon the bonds be evidenced by coupes hereto attached , the coupons to be signed by said bkyor by his facsimile simsturei that said 16yor shall by the execution of the bonds adopt as and for his own proper signature his facsimile signature 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 Tor the payment of debts dolt the VAited States of America , at the office or The Peoples National Bank of Little Reck, AAM1144e1or of the Continental Illinois National Bank & Trust Company of Chicago , Illinois . The bond! , together with interest thelwon. : sha11 it payable solely out of the 1952 Haterworks . Revenue Bond Vund , as set up by this ordinance authorizing said bonds , and the bands of this Issue shall be a valid claim of the holder thereof only against such fund , which to hereby irrevocably pledged and mortgag/d for the equal and ratable payment of the bonds herein authorized and shall . be uadd for no other purpose ishan to pay the prisoiyal and interest of the bonds, except as hereinafter set but . SECTION 4 . That said 'bonds and coupons be in substantially the folloviiig form: UNIT= STAM Cr AM= 3TPATZ OP ARSAIISA3 COUNTY OF WA3MG'1W CITY OF HAYXTTW(j= 3 3/4% watorworks Revenurs Bond of 1952 NO * $1000 KSM AL` L MW BY tM33 PRXMT3 3 Thot the wity of j;&yettovllloj ,1X t]no Cminty of Washington, State of Arkansas, for value received hereby prostiass to per,, solely from the special fund provided therefor as hereinafter set forth, to bearer, the aum Of ONE TKOUSAND DOLLARS on or before the first day of Deaawber, 1965, with interest Ohorooft at the rata of three and tease-roWtW pet oontwa ( 3 3/" ) per arm* from date until paid, payable on dune 1, 1953, and semi-annually thereafter on the first day of June and December of each year, upon presentation and surrender of the annraed . poupons as they severally become due , Roth principal hereof and interest hereon shall be payable in such funds as sit the time of the respective payments ars legal tender for the payment of debts dub the united States of Ameriea , at the oftioe of The Faoples 1Mtioaal Bank of Little heck, Arkansas , or of the continental Illinois national Bank A Trust Cow4any of Chicago, Illinois . This bond is one at a series of bonds aggregating roar nupdred Fifty Thousand Dollars ($450#'OW) , all of like tenon and eff'eet ssoept as to nambers and provisions for call for payment before maturity. dated December 1, 1952, numbered from Ito 4500 both imelrsive , *M issued for the purpose of providing funds for the payment of the cost of betterments and imgrovemenft to the mtermorks system of the City of Fayetteville , Arionsas (hereinafter eallod tri* " System" ) . This bond and the series of Which it forms a part are issued pursuant to and in aocordaance with this provisions of Act fbt 131 of the regular "salon of the gemral Assembly of the state of Arkansas for the year 1933, as amended by later Aets of said Qeneral Assembly, and do not constitute an indebtedness of said City of Fayetteville Nithln Any 000nstitutional or statutory limitation . Said bonds are payable solely from the 1952 itaterWerks Revenue Bond Pund , an set up by . Crdisatnce tic : 10 H fl of the City of Fsyettevillep approved l f ' under authorl1W of which this boW is lasued , and in said ordinance the said City of 11"tteville has fixed and has covenanted and agreed to maintain rates ter Water services whi.ah shall be sufficient at all time to provide for the payment of the principal of and interest on the bonds at the same beeane due and payable , to provide for the creation of a separate depreciation fund for necessary replacements to said System, and to provide for the. paymeat of the reasonable expenses of operation and maintenaoe of said System. Zhis band is expressly made negotiable under said Act No . 131 and is issued with the intoat that the lana of the State of Arkansas shall govern the construction thereof . All of tha'• bonds of this Issue Ore callable for redaeption and payment prior to maturity in the order of their mabering upon teras of par and accrued interest if called for payment from surplus water- works rsvenus , on any interest paying date on and after December l of the year set apposite their respective numbers , as follows : am YEAR SboInclusive ) l to 9 1956 10 to 19 22�p00 to 29 1 to 9 41 to 41 199660 63 ttoo a 19062 87 too 998 . 1906 , lis to 124 i96s M to. � 1 IE7 969 970 199g3 o 2105 1972 16 2 to 232 1973 o 19T 270 to 28s 1976 3320 to 290 t330 INI 353 to 375 1960. o � 1 95 to 450 1983 On and after December 1, 1967, all of the bonds then outstanding are callable for payment in the order of their numbering from funds from any OOnre* on any intertest paying date upon terms of par and accrued IA%Srest'. Plus a tiatemlM of W of the. Drinolp l amount thereof . In the event the City deeides to call any bond or bonds for payment prior to maturity, it shall publish notice of the call In acme newspaper of general circulation tbrouehout the State of Arlalnsas and published in the CitY of Little Book, Arkansas , once a week for two works ooMencing not less then thirty days prior to the reduetion date , giving the nw"r and maturity or each bowA being called, and each bond so called shall tease to bear interest after the dete fixed for Its r04e*t1*n, provided furWa for its payment are on deposit with the paring agent at that titre , IT 13 jM REBY CMTMVM RSCXMD AND ORCLAR$D that all conditions . acts and things required to list, to be perfcnprsd , and to happen precedent to and in the issuanos of ; ttis bond have existed , have been performed and have bappened in an time., form and manner as required by law, and that sufficient of the* income and revenue which is deemed to be derived from the operation of said Nysten has been pledged to and will be not aside into said special fund for the payment of the principal of and interest on said bonds , and that the amount of this bond , to- gether with all other oblis tions. of said City# does not *mooed any Halt- prescribed by the Constitution or the statutes of the state of Arkansas . This bond small not be validuntil, it shall have been authenti sated by the certificate hereon, duly 01612ed by The Peoples National . Bank of Little Rock, Arkanaas , IN MITN8331i1MEC # , the City of Fayetteville , Arkansas, by Its City Council, has caused this bond to be signed by the Myor and City Clerk thereof and sealed with the oozrporate aoa1 .of said - City, and has caused the coupons hersto attached to be axeouted by the facsimile signature of said NRyor, . who by the esscution of this bond does adopt as and for his own proper signature his facsimile signature appearing on said coupons, and this bond shall be dated as • or the first day of December, 1952 . CITY OF FAT3TMVXU8.t ARKANSAS (seal ) BY, Attest : yor City ClerV No * ( ,Fora of Coupon ) a1E3,75 On the first day of De , 19 , the City of Fayetteville, llashington County, Arkansas , une-a3 thirb lid to which this coupon appertains is sooner called for payment , promises to pay to bearer the sum of lighteen and 75/100 Dollars , solely out of the fund specified in the bond to which this coupon appertains, at the office of The Peeples National Bank of Little Reek, Arkansas , or of the Continental Illinois National Hank & Trust Company of Chioago, Illinois, in such funds as at the time of , yayment hereof are legal tender for the payment of debts due the united states of America , being Interest then due on its 3 3/ Waterworks Revenue Bond of 1952 dated December 1, 1952 , and. numbered CITY OF FAYET=VSL X o ARLWAS }3y ' (All coupons shall be for six months $ interest . The gayor ' s signature say be lithographed or engraved . ) 1 4?n Cite bagk Of : 8314 boxids 18 tO Sapper Cha 9-01101119s 9M41'38ZCA'f -Mia is one of the 450 bonds a a:4MOW daseriberd ' M aEOPzM : RATIOM SM op .Lnwz ROM.: AMMOMO Tutee Little Rock4 Arkansas TION 5 . BY Ordinance No,, 943 the City Cou=U ftad the schedule 'at rat" to bpi charged for vater, arta the CVW Council now (NNatirmes! said rates and ;finds and declares that said rates will V"dukoe do totsl . revenuoe Sufficient to pay the total operation and . maintenance expense of the. system and provide rtw t pint of the lgonft )*win aut£torlo.,ed to be issued ¢ both principal 40 'Interest* as they matte , and to create the funds herein provided, Such mates ' &hal& not .bereduced until all bOnds3 herewautbori=4 and interos t thereon have been paid in full, and shall Veen ne4susary be increaw 4 so: as to provide for the prayraent each yew into the 1952 water Fund of a. sum not 1,908 than the' amount required to maim the its required : for that respeative year into the 1:952 WateraWks Revenue f?a� it9 . • SECT ON 64M2 Water ~W40 Section 1$ of cs ides . 943 sets up, a watermvim system operation and P intenanee Vundi and provUla8 that it ay-surplus shall be accumulated in the Sam -system ration and MScsnp Fund over and above the amhurat _ ftich shall be recssA"' Y to deny. the .cast .off maintasknug and 09MUng he waterv¢s rks syetem .doing . the remainder Of. the then; tau rat . fiscal. year and the next ensuing fiscal .yelar, Quo 9h sup fw. s7CSSfi" MY bs annnsPerved by tete COM011 and paid into the .VatMoka kf�ie n= Bid watermarks L"p�.F[w$ estd'! c "Vs�'.tu+5+'�ishallt$twh tmnsf F'rq:QSa�. �� �rs�n�s Ara+�.�pq,�,��i.�'�m iYa .. Sly' Band N'wI I. � .Ysi' �$wi6t irw Ower IM,yme, ria requiilft , to be SRade into said Wateraac t Rem Baste!$ and ' Subsection . 4 I of Secstion 1.3. . 04 Ced mance No . 943. , provides that Ir za surpum., sal I r `+. 0 M � t >I "` Rl w . W d � + 1}.� f i Y at .J • ext f 3 ` tl f N tl e i x d t + • 3 # m n • P Ya i 4 f D 'f 3 V . ll a 'a � t{'x Y n' # �.9x � c 2 a - f t _ . e. ' t 0'x ' • i i ♦ Ytl 0 a 'i f i P a + i x . . 3 d ' i i e x A � : 0 • _ i i i Fa • G - Y .a ^ � t i . ° 9} :� d � # Y 3 3 M 3 t i " s r i C D u t - -,a n s-. � # b s n P a i P - 3 1 A _ _ L � t1 P 1 P a 3 a - i•- na s t • r A L x a P a" # f a # f.: ♦ ' ha s . - x : F � • da - si ' 8 a : a f x • A • s - d i j Q ftyi O:a auY eo . ' ' :a o r , • ' # •:i - y • - i i S , tr . # P4 RI « n d . '. i B'." 1 « tl CA ry . • • # i A i i ••C 1 of a Y pY A fi' • � • � a C a t i 4 : I e i . P 3 3r .d i oto to ati • G irx 3 nA i R :: t A � 5, ii r .^.- 1 � i � by i. : •1i Y- Y�. Gi payreen►t, a am ectal to not less than 1/6 of next installment of int*M4t plus OM and the paying agent' * teesi provided, howevers that own in any fiscal ,year no Interest of the bQ4do of this issue is in default and the surplrts amount in the Band Fund formed by the OZOO a monthly payments equals or exceeds 433x00©s the amount so payable each month into said fend shall equal not less than 1/6 of the next installment of interest and the paying agent' s tees . (e ) 7 " obligation to mala tate payments set out in sub". section (b ) hereof shall be cumulative, and it the revenue herein allocated to the 1952 liter Farad are insuftieient in any month to make the require!! payment on the first business day of the following month into the Bond Fund, then the amount of any deficiency in the payment mado shall be added to the amount otherwise required to be paid into the Boob Fund an the first business day of the next aMth . 7210 433x000 Mri.ved from the 920ess monthly payments shall be held In saga Bond Fund u a reserve for contingencies aA used solely as horela providedS Xrovided . bowever, tstat when the moneys held in the Bond Fuad, including the _ reserve for eentinalerAles, shall be and remain sufficient to Fay the principal of and Interest on all the bonds then outstanding, the, City shall not be obliged. to make any further payments into the Bond Fwed . If tar any reason the City Wall fail at any timeto make any of such payments into the Bond Funds argr sums than hold at a reserve tees eontingenoles shall be used to the extent necessary in the paymrnt of the interest on the beads , but such Fowl shall be retubursed from the 1932 Mater pund out of the first available mens]* in said 1952 Water Furl atter making the payments hersiftbove requived to be madev all momsys in the Bond Fane shall Da used soleus for the purpose of paying the interest on and the principal , of the bonds issued wafer this ordintanoe and the pa*g agent' s fe+er , (d) It a surplus. shall exist in the bond Fund over and above the amount re"trsd for making all . interest payment* during the current fiscal year on &*count of the bonds Issued under this ordinance and then outstatnding, and to make the required Mthly payments to the D reserve for contingencies, such surplus may be used to pay the cost of cone true ting betttrmenta .and SsproYesent* - to: the system or to call outstanding bonds of this issw for p►ypent , prior to saturity in accordance with the schedule set out in the face of the bonds; prc- vided, the City Mall not be required nor authorised to call bands for partial payment . SECTfOR 8, It shall be the duty of the City Treasurer to withdraw from the Bond fund at least ten day* before the wAturity data of any bond or interest ooupon isswd hereunder, and to deposit with the paging agent , an asaunt OQM' l to the amount of such bond or coupon for the sole t+tirpgsa of p0109 the stales together with the paying agent ' s fee . SIMIr[CN 9« the City Council hereby finds and declares that. . the provisions made in Sections 13 and 14 of said Ovdinanee No . 943 ry are aWle •to taloa Bare of all foreassable depreciation* operation and maintenance Charges . of . the watesrworke system . after the better. cents and improvements have been constructed , $xM:CN 100 All moneys remaining in the 1952 Mater Fund after making the paygsrits required by 9eation 7 • of this ordinance shall be tranefsrrsd into a fund hereby created and designated " Sinking Fund . " The sinking Fund shall, in the discretion of the 'city Council#. be used for any one or score of the following Durposons `a , Toreimburse the Ewrgency Fuad, hoftinafter provided , in the event that said Morgency Fund boacnes reduced baler the sum of W.000 . (b ) To pay the Cost of. the tlonstruction of betterments and iWevesents to the system . (c ) To call bonds of either this issue or the December 1, 1948 issue for payment prior to satuftty, according to the respective torso set out in the face of the bonds of the two issues . SECTION ll . ENId;GiS M V61WO There aball- be established insaediately, out of the purooeeds of the bond Teale , an "Emergency Fund " of $25p000, to be 'held . by the City for the purpose of MM%IzW any emergency, tither im operation or to present a default In interest, and whenever the Hoorgenoy Fond is .reduced to less than $2$, 000 by reason %of the use of some part ther+e6ts1the City agrees to restore the full $25, 000 in ' said Amergenoy Fund as rapidly as possible from the Sinking bund . Money in the Emergency Hund ands in the reserve for contingencies described in Sub" otion ( 0 ) of Section 7 of this , ordinance may be invested by the City in United States dovernment ' Donds, provided thst the bonde shall be approved by the paying agent and the origbal purchaser of the ' bond Issue . ' SECTIOU 12 . Nothing herein shall be construed in such manner as to prevent theAssuance by the City of additional revenue bonds on a parity with bonds of this issue for the purpose of asking betterments and improvements to the System; provided, however, that in order to . Insure the ;payment of the interest on and the principal of the bonds, the City shall Issue such additional trevenuie bonds while any - of the bonds of the December 1 , 1948 issue or this December '.1, 1952 issue remain outstanding only . if at the time of , the passage of the ordinance autho*ixtng such additional bonds the net revenues ( in this paragraph defined as the gross revenues of the waterworks . system less the cost of depreciation and of operation and maintenance of the , waterworks system as 4otarained - by an independent certified public accountant ) in any two out .of the three years sa- mediately presedimg the year in which itis prropone$ to issue such additional revenue bonds shall equal 1 ,5 time the average annual prinaipal. and interest requirements of all the bonds then outstanding and the additional bonds proposed to be issued . SBCMON 19 . Nothing herein shall be construed in such a manner ,as to impair the bbligation . of the City under Ordinance No . 943, approved October 29,. 11948, securing the payment of the principal and, Interest 4of the 0 W *, water revenue bond issue dated December 1 , 1948 . For and in consideration of the acceptance of this issue. of bands bW the purchasers thereof* the City hereby agrees that it will at all times maintain the relative position of the bonds or this December 1, 1952 issue , and that in the event .it should refund the bonds of the December 1, 1948 Issue, . tho refunding bonds shall be serial bonds , the II I last of which shall . mature net later than December 1s 1979, and the average annual riquirdmsnts - for principal, and Interest of the refunding bonds shall not exceed the average annual requirements of the Deoarber 1, 1948 issuN . The City further agrees at all time to maintain rates for water serviees that will, after Waking full provision for the bonds of the 1leeember 1, 1948 issuer enable the City to set up and maintain the funds not out In this ordinance for the December 1, 1952 bond issue . SECTION 14* there shall be a statutory ®ortgage lien upon the pipeline constructed from the proceeds Of this bond issus, which shall exlet • ln favor of the holder of the bonds and each of them and to and In favor of the holder of the ooupons attaoped to said bonds , , and such pipeline shall remain subSect to such statutory Mortgage lien until payment In full of . the interest on and principal of the bonds; provided, however, that such statutory mottpge lien shall be Interpreted according to the decision of the Suprema Court. of Arkansas cited as Citsr of Harrison, v . 'Sraswell, 249 Ark . 1094, „194 aw(2d ) 12, and that said statutory lien shall not be asserted or enforced so as to result in a foreclosure or sale of any of the prdperties oonati- tuting the municipal waterworks system, but said statutory mortgage lien shall be recognized and enforced only for the purpose of preventing the sales attoWted mortgage , lease , or disposal in any other wearer, of an Integral part of said dystemo SECTION 15 . After the bonds herein authorised to be issued have been executed by the Mayor and City Clerk . as herein provided, . . they shall be delivered by the llsyor to The peoples national Sank of Little Rock, Arlansas, which shall authenticate and deliver them to the pufchamers upon the payment in cash of $450,000 and acerued Interest to the date of delivery. The peooetds of the bond sale ' shall be distributed as folloams (a ) The accrued interest shall be deposited in the 1952 WatMarke Revenue Bond Fund . (b ) The sum of $25 . 004 shall be deposited in the Sawrgency Fund as created by Section 11 of this ordinance . (o ) The balance of the prooeeds from the sale of the bonds Mail be placed into a fund hereby oreated and designated " 1952 Construction Fund" (hereinafter called "Construction Fund" ) . Said D3 fund shall be used for the payment of the cost of construetion of the works and. all engineering, legal and other expanses necessary or incidental to such oonstruction. said fund say be deposited in one or aa'e banks, seoh of which shell be a member of the Federal asposit insurance Corporation, but ,.*Ch.depositary shall be required to give security for that part of the deposit whf exceeds the amount I. guaranteed by the PDWC, saidsecurity to be either a surety bond canted by a ootpovatioh autherised to do business in Arbsnsas, or the escrow deposit of bonds issued by the United States of Amsriea. Payments out of the Coi*;netion Fund, except for the ten of engineers and. attorneys and exoenses in connection with the bond issue, shall be made only upon en;irners' estimates. In the event that any funds ramie in the Construction Fund after the completion of the Works, such balance shall be iamediately transferred to the Bond Pond.. SECTION 16 For and in consideration of the purchase and acceptance of -the :bonds authorized by this ordinance and to facilitate their payment, with interest, the City agrees to the following terms: (a) None of the facilities or services afforded by the System shall be furnished without a reasonable charge being made therefor. In the event that the City or any department, agency, or instrumentality thereof shall. avail itself of the facilities or services afforded by the System, the reasonable value of the services and facilities so afforded shall be charged against the City or such department, agency, or instrumentality, and shall be paid for as the charges therefor accrue. The revenues so received from the City shall be deemed to be revenues derived from the operation of the System; provided, however, that nothing herein shall be construed as requiring the City or any department, agency, or instrumentality thereof to avail itself of the facilities or services afforded by the System. (b) The City will maintain the System'in good condition and operate the some in an efficient manner and at a reasonable cost. So long as any of the bonds are outstanding, the City agrees to maintain fire, lightning and tornado insurance on the System in an amount which normally would be carried by a private company engaged in a similar type of business. These insurance policies are to be- token with companies approved by the Trustee, are to carry a clause making them payable to the Trustee as its interest may appear, are to be kept continuously in force, and either the original- policies of insurance shall be placed in the custody of the Trustee or the Trus- tee shall be furnished evidence satisfactory to it that the policies have been issued and carry the loss payable to the Trustee clause. In the event of loss, the proceeds of such insurance are to be applied solely toward the reconstruction, replacement, or repair of the System. In such event the City will, with reasonable promptness, cause to be commenced and completed the reconstruction, replacement and repairs. Nothing herein shall be construed as requiring the City to expend any funds for premiums on its insurance on the System which are derived from sources other than the operation of the System. (c) The City Treasurer shall be the custodian of the revenues derived from the System, and shall give bond as such custodian. Such bond shall be in an amount not less than $• and shall be approved by the Trustee. (d) All revenues from the System shall be deposited in such depository or depositories as may be lawfully designated from time to time, subject, however, to the giving of security by each such depository as now or as hereafter may be required, and provided each such depository shall hold membership in the Federal Deposit Insurance Corporation. All deposits shall be made in the name of the City and be so designated as to indicate the particular fund to which the revenues belong. Payments from each fund set out in this ordinance shall b& made by check or voucher signed by two duly designated persons and drawn on the depository in which the moneys in said fund shall -have been deposited, and each such check or voucher shall briefly specify the purpose of the expenditure. (e) The bonds, together with interest thereon, are not general obligations of the City nor do they constitute an indebtedness of the City within the meaning of any constitutional or statutory provision or limitation, but shall be payable solely out of the Bond Fund and shall be a valid claim of the holders thereof only against said Fund, and.the amount of the revenues pledged to said Fund, which Fund is hereby pledged for the equal and ratable payment of the bonds issued by authority of this ordinance and shall be used for no other purpose than to pay the principal and interest of the bonds as the same mature, except as provided in this ordinance. If) , The System shall be operated upon a fiscal year basis, beginning January 1 - of each year and ending and including the following December 31 _ ' - ,a . (g) 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 System required by the Constitution and statutes of the State of Arkansas, including the making and collecting of reasonable and sufficient rates lawfully established for services rendered by the System and applying the revenues therefrom to the respective funds herein created. (h) So long as any of the bonds are outstanding, the City will not mortgage, pledge, or otherwise encumber the System -or any part thereof or any revenues therefrom, except as herein provided, and will not sell, lease, or otherwise dispose of any substantial portion of the some. The obligations of the City set out in this ordinance, the pledge of revenues, and the City's agreement not to mortgage, pledge, or otherwise encumber the System, shall be made a matter of public record by having a certified copy of this ordinance recorded as a mortgage in the office of the Circuit Clerk and ex-officio.Recorder'of -__-_14 a gh1ngtcn County, Arkansas. • (i) 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 any transactions relating to the System. The City agrees to have these records audited by an independent certified public accountant at least once each year, and it shall furnish the Trustee a copy of this -audit. In the event that the City fails or refuses to make the audit, the Trustee may have the audit made, the cost thereof to be charged to the cost of operation. (j) If there be any default in the payment of either the principal of or the interest on any of the bonds, the holder or holders of any of the bonds may enforce any mortgage lien granted by statute and may by proper suit compel the performance. of the duties of the officials of the City, as set forth in the statutes authorizing the bonds. If there be default in the payment of the principal of or interest on the bonds or if the City shall fail to keep any other obligation which it herein assumes, and such default shall continue for thirty days thereafter, any court having jurisdiction in any proper- action, which may be instituted either by the Trustee on behalf of all the bond- holders, or by the holder of a bond in default, may appoint' a receiver to administer the System on behalf of the City, with power to charge and collect rates sufficient to provide for the expenses of the receivership, the, payment of the bonds and interest thereon, and for the payment of the operating expenses, and to apply the income and revenues in conformity with said statutes and this ordinance providing for the issuance of said bonds, but when all defaults are cured, the receivership shall be ended and the management and control of the System restored to the City. , (k) 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 requirements, the holder of such bond may declare that bond immediately due and payable and in default, and either the Trustee on behalf of all the bondholders or any bondholder for himself may institute suit to enforce the pledge lien herein granted. The failure to exercise this option upon any default shall not be a waiver of the right to exercise it upon any subsequent default. (1) The bonds authorized hereby shall be callable for payment before maturity according to the terms set out in the bond form. (m) The charges for paying bonds and interest coupons shall be Ye of 1% on principal and 1/4 of 1% on interest; provided, the minimum fee for any semi-annual payment shall be one dollar. No withdrawal from the Bond Fund shall be made for any purpose other than the payment of bonds and interest, and the monthly deposits in the Bond Fund or with the Trustee shall be at the sole risk of the City and shall not operate as a payment of the bonds or coupons until -so applied. (n) The City hereby agrees to make all payments on bonds and interest only through the designated paying agent. All bonds paid or purchased, either at or before maturity, shall be canceled when such payment or purchase is made, together with all unmatured cou- pons appertaining thereto, shall be returned to the City, 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. (o) It is hereby declared that the provisions of this ordinance are separable, and if any provision of this ordinance shall for any reason be held illegal or invalid, it shall not affect the validity of the remainder of the ordinance. (p) It is hereby declared that the provisions of this ordinance constitute a contract by and between the City and the holders of the bonds and interest coupons issued by authority hereof; and after the bonds hove been issued and paid for, the terms of said provisions shall not be changed except with the written consent of the holders of all bonds and coupons then outstanding.. (q) Wherever reference is made in this ordinance to a Trustee, it shall refer to Tha Pen 1p as National Rank of 7,ittla Rnnki A•rknneaa The said Trustee shall be responsible only for wilful misconduct in the execution of this trust. The recitals of fact herein contained, and contained in the bonds, except the recitals in the Trustee's Certificate, are statements of the City and shall not be construed as being made by the Trustee. The Trustee shall not be required to effect insurance against fire or damage to mortgaged property, nor to advance any money to pay insurance premiums, -nor to pay any charges or special assessments against said property, nor to see that this pledge of revenue is properly recorded and kept in force as a pledge, nor shall it be required to take notice or be deemed to have had notice of any default of the City in the failure to perform any of the conditions of this, ordinance, unless said Trustee shall have been specifically noti- fied in writing of said default; nor shall it be required to take any action hereunder until it shall have been indemnified to its satisfaction by the holders of the bonds herein mentioned, or some of them, against loss or damage on account thereof. The Trustee is authorized in its discretion to release any real or personal property no longer used in the operation of the System. The holder or holders of a majority in value of the'bonds at any time outstanding may at their option remove the Trustee and appoint a .successpr trystCge, by an instrument duly acknowledged and filed for record in the office of the Circuit Clerk and ex -officio Recorder of Wa CYIy ngtnn County. The Trustee may resign at any time upon ten days' written'notice to the City Clerk _ . The successor trustee shall have all the rights and powers of the originally appointed Trustee. (iistc'%os 16 - continuod) (r) the CAUy sal not io3u3 .asp c at3L ceflue bonds that V.I11 hava a &scn on 2t cater rovonueo prior to too liana of tin DOCC 'JQT6' 1, 1.32 i?b a .o4o, am) tordu on a parity tait'sh or hav:Llr thQ i. Cet b^.T' 1p l j4C bond 2ocuO, 1a7uffoo of ba:a£o rc-2= :n6 the coal tiono sot out in Section 13 It will a prior bat thi )oCcintiOL" of this rs )t iCtjtfl3 C3n7 £:atoa' r f73ta;:o lion on Ito ;rater rovvzaano to 3 shall not prohibit t a 1, 1943 uonuu un(or the (a) 'ao bonds of taic tocoltlxar 1, W52 soau3 oh..311 hcvo a l2on on not only tin .3vonuoO -of the 4ucnt system but also on the s'caoauasi of all fczturo caton3ion3 and lrprOVO onCG. (t) r4ao City will not r„raut a inane Mee £oia co_rtpot';.nG cater oyo;;c;a and call not stself Sn3tall cacti a cynteen. (u) •sae annual aucut to iw oa'do =C!' subooction (i) horaoZ chAil ircla c2e the .gollotiin3a (1) ♦1 Otatoment in detail cf tin ales 3 and exponc32tiwoo. of tho Sy;atcm for such fincgl year. (2) '. balenco Chest as of the cab 02 ouch fiscal year. (g) the accountant's co. me,it ro at'ciini the miner to which tha City; itaa cawrled out the roquirotaonta o2 this oroinaneos and the accountant's recontiendatloa •£cr any caaanw a or 1bipro�or ent 9.n -mho oparaatloi3 . of the fstern. (4) a hot of the insurance policies in force at the • chd oS the ficoal jear, sott_a.a ; out as to eaoai policy the amount of the policy, tnc risss covorcd, tho rate of the incurex, an tUe Qz il'ation Cato of the policy. (5) The nunbor ox ou.utonora cornectod to tha Systoo at • the &.hto of t, c audit, ola3clloC as rowicient;lal, cop .erclal, industrial, and othoro. (6) iab acountaht'a fAndinp au to the nwnbor of callona • throv..Oz the nnote2' z eter CaQ tine number oZ Gallons • Spilled to the ccaar ziera, ae'aC ills esticato of t o IT::.�,be' of Gc.11Gnz. u„cG. i'ra 2iuIircj the t•yotca a .d the nurber Of ralionc used in the fire hydrant3, In orror '` .a.t an catiratr ay ay be vacs of the azos≤.nt of water that is lost by leaicco. (7) The City will furnish upon request a copy of the annual audit to any holdee of 50% or more of the bonds outstanding at the:,time of the request. SECTION 27. The City Clerk is hereby directed to publish one time in ti's. W THMB$T AAMANdi$ TIMES, which is hereby found and deelared to be a newspaper published and having. a bona fide circula- tion in the City of tyetteville, Arising, this ordinance, preceded by a notice in substantially the following tons rnmi Nottoo is h.nw. given t hat the City Council of the Mtyt of Sayetteville, kisses, bas adopted .the ordinance hereinafter sat sat, one tt*t the City .cntia+glales the issuance of tto Weds 4naribed in said dreinas;ea,and that any persoon. interested ay appear before the City Council on tiesday of 195, at ,'_3v o'clock B.M., at usual pace of meeting in the City 11I and present ycoteats. At Mush bearing, all Objiotiona end auggestio" Will ba heard and the Citr Council. will teW ,such satin as it eha11 deem proper in the psr.aisas. an = by Ceder' of the city CasMil, this day or t4 • 195 z: SECTION 18. The City Council hereby finds and declares that there is an immediate and urgent need tar additional capacity for both the Supply Md purification of water in order to safeguard the lives, health and property of the citisens' of the City of Fayetteville, Arkansas; theretore, an emergency exists and this ordinance, being necessary for the bnsdiate preservation' of the public rte., health and safety, shall take effect and be in force from and after its Passed: December . _I �` ,, 1952. Attest; Sr -r rx AFPRCVF.D;' H. • / (Publish this notice, immediately followed by the atta TMT ordinance, one tinethe publication to be at least ten'"days prior to the hearing date.)- N 0 T I:.C E Notice is'•heretiy given .that; the ;City Councilof 1 .•„ + , the City of Fayetteville,,Arkansas;'has adopted the 1 • ordinance hereinafter eet`but; :and that.,thelCity'contemplates • • the issuance of the bonds;; described ;in • said ordinance;} and • '.• I ••.. f i t ., • ., • 1 v. I that any person'iriterested may appear-bePlore ;the'Cit• y Council on the day :oP L:.a ':195:3 ; •\ ₹ us •a at �. o:alock,P.Mac a the usus placer of,• , meeting in` the ;City Hall; 'and ;present• protests.,` At` uchI. ' 1 d1•r i.I :i ''i.. 1 , hearing; a_ll°objectione.and:suggestions will.Ibe hear and the City Council will Itakei such action •as it/aba ll Y I• t deem proper in the premises: • • GIVEN by order of'.the City Council,- thistH day of �.a_t.eL ; 195 1 , , i4 � OiS _. . •city,,cierx 11 t.H -'I •\• ' , f • , 1 I 1 ` I , , CESTIPICAT]i $TATS OB ARKANSAS CCil NTT OR WASHINGT0N',as C%TT W PAYSTTSVIISAi I, the undersigned, the duly sleeted, qualified and acting City Clerk within and for the City aforesaid, do hereby certify best the above and foregoing is a true copy of an ordinance passed by the City Council of the City of Paysttsville, Arlansas, at a _,_G��G meeting of -said Couuoil held on Deo* ber 1952, at the City Mall in said city, at *iok .Sng a quorum as provided by law was present and voted for said ordinance. IN ffi3TI$W1Y $1BRIMS I have hereunto set my hand and seal or otfies this f day. of Deosaber, 1952. (seal) • -2-. at not cost of reproduction, to the city and to the contractor. ,.a will furnish and perform the supervision of 'cork of inspection bureaus and laboratories in the inspection and tests of materials entering into the oonstruc- tion of the project; the costa of such teats and inspection by laboratories to be paid for by the city. T:e wisl also furnish and perform the supervision of sub -soil tents and borings as may be required; the cost of such teats and borings to be paid for by the.clty. - In other words, we Will do all things necessary to par services for the proposed project. The standard engineering fees for work on projects of coat of constriction. This does. not include the cost costs or other item of overhead not directly charged wide complete engineering this size is 6X of the entire of land,. right-of-tay, . bond to the cost of construction. Then plans, specifications and estimate of cost are prepared and approved by the State Hoard of Health and the City Council, 3.6, of the estimated construction cost of the project would be due the engineers for this work, with the remainder of the engineering fee to be paid in propetion'to payments made for the con- atruction of the work.•• The engineering work•as herein outlined will be done by the engineering organiza- tions of R. R. liolway and Associates, tionsulting zangineors, Tulsa, Oklahoma and Sullivan and. McGoodwin, Consulting.tngi.neers, Payyetteville, Arkaw as, in accord- ance with standard ongineering practice. The approval of this letter by the City Council will constitutea satisfactory agreement between the engineers and your hoicrable body. Bit Attest, y Cr Respectfully. submitted, Vi. n. lolway and Associates Sullivan and Z:COoodwin Approved; V. R. ilolway