HomeMy WebLinkAboutOrdinance 1333 BUUK 585 PAU 448
Ar'i`d 17 2 i z NJ 1961
ORDINANCE N0 . LLCY1 LL
GInOW; ;v
AN ORDINANCE AUTHORIZING A CONTRACT BY AND
BETWEEN THE CITY AND BEAVER WATER DISTRICT
OF BENTON AND WASHINGTON COUNTIES , ARKANSAS
IN SUBSTANTIALLY THE FORM AND WITH SUB -
STANTIALLY THE CONTENTS SET FORTH IN AND
MADE A PART OF THIS ORDINANCE ; AUTHORIZING
THE EXECUTION AND DELIVERY OF SAID CONTRACT ;
PRESCRIBING OTHER MATTERS RELATING THERETO ;
AND DECLARING AN EMERGENCY ,
BE IT ORDAINED by the City Council of the City of
Fayetteville , Arkansas :
Section 1 . That there be , and there is hereby , authorized
the e_: :2cution and delivery of a Contract by and between the CITY OF
FAYETTEVILLE , ARKANSAS (herein called the "City ") and BEAVER
WAT '." '; ISTRICT OF BENTON AND WASHINGTON COUNTIES , ARKANSAS , in
subSC - tially the form and with substantially the contents here -
after Set forth , and the Mayor and City Clerk be , and they are
her ; ' y , authorized to execute , acknowledge and deliver said Contract
for- _nd on behalf of the City . The form and contents of the said
Contract , which are hereby approved and which are made a part
hereof , shall be substantially as follows :
DATE 9�
DATE oCt 1978
REEL 11
BOOK 585 PAGE449
C O N T R A C T
THIS CONTRACT entered into by and between the CITY OF
FAYETTEVILLE , ARKANSAS (hereinafter called "City") and BEAVER
WATER DISTRICT OF BENTON AND WASHINGTON COUNTIES , ARKANSAS (herein-
after called "District ") ;
W I T N E S S E T H :
WHEREAS the District has heretofore entered into con-
tracts with the Cities of Fayetteville , Rogers , Springdale and
Bentonville with each contract providing that each City shall have
title to a specified quantity of the water stored in Beaver Dam
Reservoir upon payment of a stipulated yearly sum (reference herein
to "Cities " shall include all of said named Cities ) ; and
WHEREAS the utilization of the water stored in Beaver
Dam Reservoir can be accomplished only after the acquisition of
lands and construction of a number of improvements ; and
WHEREAS the improvements can be used by all of the afore-
mentioned Cities and all of said Cities are willing to pay stipu-
lated annual sums for the privilege of using the improvements so
as to make adequate supplies of water available for the citizens
of said Cities necessary for the health , safety and welfare thereof ;
and
WHEREAS it is proposed to proceed immediately to con-
struct an intake structure which will enable all of said Cities
to draw water from Beaver Dam Reservoir , acquire lands for use
as a location . of said intake structure , acquire protective shore
lands , acquire right of way for raw water lines and controls from
the intake structure to proposed water treatment facilities , acquire
BUUK 585 PAGE4050
Page 2
lands on which said water treatment facilities will be located ,
and construct roads and sanitary facilities at the location of
said intake structure (herein called "improvements ") , estimated
to cost , with related expenses and expenses of financing , $400 , 000 ;
and
WHEREAS the District has sold its initial issue of bonds
designated "Water Revenue Improvement Bonds , Series A ' , in the un-
converted principal amount of $400 , 000 which have been converted
by the purchasers to an issue of $411 , 000 in principal amount
dated December 1 , 1962 and maturing on December 1 in each of the
. years 1963 to 1992 , inclusive , which bonds are being authorized by
a Resolution of the Board of Directors of the District and which
will be secured by a Deed of Trust executed as of the first day of
December , 1962 by and between the District and First National Bank ,
Fayetteville , Arkansas , as Trustee for the holders of the bonds ,
which Deed of Trust will be recorded in the offices of the Circuit
Clerks and Ex Officio Recorders of Benton and Washington Counties ,
Arkansas , and to which reference may be made for a detailed state -
ment of the terms and conditions upon which the District ' s bonds
will be issued , held and paid ( the Deed of Trust will secure all
bonds issued by the District with the initial issue being the
$411 , 000 issue referred to above ) , and it is understood that whenever
reference is herein made to the "Trustee " or "Trustee for the bond -
holders " , the reference shall be to First National Bank , Fayette -
ville , Arkansas ; and
WHEREAS the City has made studies which reflect that
an additional water supply must be obtained in order to satisfy
BUUK 585 PAGE451
Page 3
the immediate and future needs of the customers of its waterworks
system , and that a water supply in an amount sufficient to satisfy
the needs of the City for the foreseeable future can be economically
and feasibly obtained only from Beaver Dam Reservoir ;
NOW, THEREFORE , in consideration of the mutual benefits
to be derived by the parties , and for other good and valuable con-
sideration , the receipt of which is hereby acknowledged , the City
and the District agree as ,follows :
( 1 ) The City shall have the right to use the water made
available by the construction of the above described improvements
in accordance with reasonable rules and regulations to be established
from time to time by the District .
(2 ) The City will pay to the District , solely from
revenues derived from the operation of the City ' s waterworks system ,
V the sum of $ 9250 per annum for a period of ten years from the
date of this Contract and the sum of $ 7776 per annum for a period
of twenty years thereafter , making a total period of thirty years
over which payments are to be made hereunder . The said annual pay-
ments are to be paid as follows :
/ (a ) The sum of $ 4625 shall be paid on or before
May 15 of each year until May 15 , 1973 , and the sum
of $ 38883hall be paid on May 15 , 1973 , and on or
, before May 15 of each year thereafter ;
(b ) The sum of $ 4625 shall be paid on or before
November 15 of each year until November 15 , 1973 ,
and the sum of $ 3888 shall be paid on November 15 ,
1973 , and on or before November 15 of each year thereafter ;
(c ) The first payment shall be due on May 15 , 1963
and the last payment shall be made on November 15 , 1992 .
The payments provided for above may be modified only with the prior
written approval of the Trustee for the holders of the bonds of the
585 PAGE 452
Page 4
District issued to finance the improvements ob tained after the
presentation of evidence satisfactory to the Trustee , in the
Trustee ' s sole discretion , that the District will have revenues
after such modification that are at least sufficient to operate ,
maintain and repair the District ' s facilities , insure the prompt
payment of the principal of , interest on and Paying Agent ' s fees
in connection with all of the District ' s outstanding bonds as the
same become due and payable , establish and maintain reserves for
contingencies and make adequate provision for depreciation . Such
payments shall be made without regard to whether the other cities
specified above have fulfilled their obligation to make payments
pursuant to similar contracts . The City hereby pledges a sufficient
amount of its waterworks revenues to satisfy promptly its obliga-
tions hereunder. . Such payments called for by this Contract shall
be certainly payable on the dates specified without notice or de -
mand , and without abatement or set off , and regardless of any con- "
tingencies whatsoever , and notwithstanding any circumstances or
occurrences that may now exist or that may hereafter arise or take
place .
( 3 ) It is contemplated that the District will construct
additional improvements from time to time for the purpose of
better accomplishing the utilization of the water stored in Beaver
Dam Reservoir . It is contemplated that bonds will be issued to
finance said construction , and it is understood and agreed that
the District and all or part of the Cities will enter into contracts
prior to the issuance of additional bonds in order to provide
increased revenues sufficient , together with other available
G
BUOK 585 PAGE 453
Page 5
revenues , to pay said additional bonds , with interest , as they
mature .
(4 ) It is understood that the City has now and may in
the future have outstanding bonds and contracts to which waterworks
revenues are pledged and will be used . The City covenants and
agrees that it will impose and collect rates for water that will
produce sufficient revenues to make the payments called for in
this Contract when due and , together with any other utility revenues ,
from municipally owned utilities that may be lawfully used and are
actually available , to pay the reasonable expenses of operation ,
maintenance , repair and depreciation of the City ' s waterworks , and
to make all principal and interest payments and make all fund
deposits required in connection with all bonds and contract obliga-
tions of the City to which City waterworks revenues are pledged
outstanding at any time during the life ' of this Contract , and that
the City will raise said rates from time to time when and to the
extent necessary to fully provide for all said above set forth
purposes .
(5 ) The City covenants and agrees that it will always
operate its waterworks as a revenue producing undertaking and that
it will not dispose of said waterworks as long as its obligation
to make payments under this Contract exists .
(6 ) The City and the District agree that the holders of
the bonds issued to finance the improvements shall be third party
beneficiaries of this Contract , and that the Trustee for the holders
of said bonds shall have the right to enforce the terms of this
Contract .
flow 585 PAGE454
Page 6 .
(7 ) It is covenanted and agreed that so long as any
bonds of the District issued to finance the improvements shall be
outstanding , this Contract cannot be cancelled , terminated , amended ,
supplemented or modified without the written consent of the Trustee
for the holders of the District ' s said bonds .
( 8 ) The pledge of waterworks revenues made by the City
to its obligations hereunder is understood , and shall be construed
to be , subordinate and inferior to the pledges of waterworks
revenues to all Waterworks Bonds of the City heretofore issued and
outstanding as of the date hereof, but is prior and superior to
the contractual obligation of the ��Ciiat-- y-- to the District under the
Contract between the two dated A.2 ' c;X **L-� 196 /. The City covenants
and agrees that it will not authorize or issue , or attempt to
authorize or issue , any bonds or obligations on a parity with
any of the City ' s outstanding bonds , even though parity obligations
may have been expressly authorized at the time of issuance of
said outstanding bonds ; , that it will not authorize or issue or
incur , or attempt to authorize or issue or incur , any bonds or
obligations of any nature having or claimed to have a priority of
lien , pledge or claim upon the City ' s waterworks revenues over
the lien , pledge and claim in favor of the City ' s contractual
obligations under this Contract and will not authorize or issue
or incur , or attempt to authorize , issue or incur , any bonds or
obligations ranking on a parity of lien , pledge and claim with
the contractual obligations under this Contract except only that
the following may rank on a parity : (1 ) Any contractual obligations
under additional , amendatory or supplemental contracts between
BOOK 585 rnct455
Page 7
the City and the District executed in connection with the issuance
by the District of bonds to finance additional improvements , re-
ferred to in Paragraph ( 3 ) of this Contract ; and (2 ) bonds or
obligations issued or incurred by the City for extensions , better -
ments and improvements to the City ' s waterworks system if , at
the date of issuance of such bonds or incurrence of such obliga-
tions , the waterworks revenues of the City for the preceding
twelve ( 12 ) months , as increased by any additional revenues to
be received from waterworks extensions , betterments and improve -
ments being constructed out of the proceeds of the bonds then
being issued , or obligations then being incurred as then certi -
fied by an independent professional engineer , shall have been
sufficient in amount to provide for the maximum future principal
and interest requirements and all contractual obligations on
then outstanding bonds and contracts that will become due in any
one year , including , without limitation , this Contract , and the
maximum principal and interest requirements and contractual obliga-
tions that will become due in any one year on the bonds then proposed
to be issued or obligations then proposed to be incurred and
leave a balance which , together with the amount of any other utility
revenues from municipally owned utilities that may be lawfully
used and are actually available for the next succeeding twelve
( 12 ) month period as then determined , will be sufficient to provide
for the annual operation and maintenance and depreciation expenses
after the completion of said waterworks extensions , betterments
and improvements to be constructed out of the proceeds of said
bonds or obligations .
EUUK 3I'gGE 'tJ�
Page 8
Nothing herein shall be construed as prohibiting the
City from issuing bonds or incurring obligations having a lien,
pledge and claim on waterworks revenues subordinate to the lien ,
pledge and claim thereon in favor of the contractual obligations
under this Contract .
( 9) It is further covenanted and agreed by the Dis-
trict to furnish the City an annual audit report of the District ' s
operation , prepared by an independent Certified Public Accountant ,
and that said annual audit report shall be furnished to the City
so long as this contractual agreement is in effect .
IN FATNESS MOREOF , the City has caused this Contract
to be signed in its name and on its behalf by its Mayor and its
corporate seal to be herewith affixed and attested by its City
cJ.*Rle and the District has caused this Contract to be signed
in its name and on its behalf by its Chairman , and its seal to
be hereunto affixed and attested by its Secretary, all as of the
day of u + er , 196 6.
CITY OF FAYETTEVILLE * ARKRNSAS
By
Mayor '
ATTEST :
City Ae&
(SEAL)
BUCK 585 PAGE457
Page 9
BEAVER WATER DISTRICT
By
Chairman
ATTEST :
Secretary
(SEAT.)
BOOK 585 PAGt458
Section 2 . That the Mayor and City Clerk be , and
they are hereby , authorized and directed for and on behalf of the
City to do 211 things , execute all instruments and otherwise
take all action necessary to the realization of the City ' s rights
and to the discharge of the City ' s obligations under said Contract .
Section • 3 . That the provisions of this ordinance are
hereby declared to be separable and if any section , phrase or
provision shall , for any reason , be declLred to be invalid , such
declaration shall not affect the validicy of the remainder of the
sections , phrases or provisions .
Section 4 . That all ordinances and parts of ordinances
in conflict herewit'1 are hereby repealed to the extent of such con-
flict .
Section 5 . That there is hereby found and declared to
be an immediate need for the securing of an adequate water supply
for the City in order to insure the adequate protection of the
public health , safety and welfare of t` -- City and its inhabitants ,
and the execution and delivery of the Contract approved by this
ordinance is essential therefor . It is , therefore ; declared that
an emergency exists and this ordinance being necessary for the
immediate preservation of the public health , safety and welfare
shall be in force and take effect immediately upon and after its
passage .
PASSED :
"AP111,1E :
Mayo ^
Clerk
(SEAL)
C E R T I F I C A T E
The undersigned , City Clerk of Fayetteville , Arkansas
hereby certifies that the foregoing pages numbered 1 to
inclusive , are a true and compared copy of an ordinance passed
at a session of the City Council of
Fayetteville , Arkansas , held at the regular meeting place of the
Council in said City at o ' clock1?—'�I , m , on the ///1
day of 1962 , and that said ordinance is of
record in Ordinance Record Book G page now in my
possession .
Given under my hand and seal this day of
1962 ,
( SEAL) City Clerk
CERTIFICATE OF RECORD
STATE OF ARKANSAS
Washing cn County ss.
I, Loyd idcCannell, Circuit Clerk and Ex-Officio Recorder for
W-sh ng on County, do hereby cirofy that the annexed or fore.
going nstrument was filed for record in my office on rh�/7day
of „ q1\943 a4i'/2o'clock .P. M , and the same/i
du' recorded in . . . . .4.4-of. . .rry. record .f, ds „ at p3ge !Z.1!?,
Witness my hand and seal this 1.4. d� of . 19 .
Circui lark and
EX-Ofico Recoder
1
