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HomeMy WebLinkAboutOrdinance 1653 � • • , f f � ORDINANCE NO ./A AN ORDINANCE PROVIDING FOR THE ISSUANCE OF WATERWORKS AND SEWER REVENUE BONDS , SERIES 1969 , BY THE CITY OF FAYETTEVILLE , ARKANSAS FOR THE PURPOSE OF FINANCING THE COST . TO THE CITY OF CONSTRUCTING EXTENSIONS , BETTERMENTS AND IMPROVEMENTS TO THE WATERWORKS AND SEWER SYSTEM OF THE CITY; PROVIDING FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE BONDS ; PRESCRIBING OTHER MATTERS RELATING THERETO ; AND DECLARING AN EMERGENCY . WHEREAS the municipally owned waterworks and sewer facilities of the City of Fayetteville , Arkansas (the " City " ) are operated as one municipal undertaking and will be herein sometimes referred to as the " System; and WHEREAS extensions , betterments and improvements to the System are necessary and the City has had prepared by John E , Mahaffey & Associates , Inc . and L , 'M . McGoodwin , Consulting Engineers , Fayetteville , Arkansas preliminary plans and estimates (the " Engineering Reports " ) , and the Board of Directors and officials of the City and the Waterworks and Sewer Department have studied the Engineering Reports , conferred with the consulting engineers and otherwise investigated the extensions , betterments and improvements re - flected therein (collectively referred to as the " improvements " ) and the methods of financing them , all from the standpoint of the best interest of the City , its inhabitants and the users of the System; and WHEREAS it has been , and is hereby , determined that the improve - ments reflected by the Engineering Reports (copies of the Reports being on file in the office of the City Clerk and to which reference may be had for the details of the improvements and the estimates of cost) should be accomplished , and that there should be issued at this time $ 940 , 000 in principal amount of Waterworks and Sewer Revenue Bonds , Series 1969 (the " bonds " or the " bonds of this issue " ) ; and MICROFILMED DATE OCT 1 1 1978 REEL_ f � 1 Page 2 WHEREAS the City has outstanding at this time $ 4 , 420 , 000 in principal amount of Waterworks and Sewer Revenue Refunding Bonds dated June 1 , 1963 issued under and secured by the provisions of Resolution 7 - 63 , adopted and approved on April 8 , 1963 ( " Resolution 7 - 63 " ) and $ 4 , 300 , 000 in principal amount of Waterworks and Sewer Revenue Bonds , Series 1966 , dated September 1 , 1966 , issued under and secured by the provisions of Ordinance No . 1508 , adopted and approved August 8 , 1966 ( "Ordinance No . 1508 " ) (both outstanding issues being collectively referred to as the " Outstanding bonds " ) ; and WHEREAS the bonds can be issued on a parity of security with the Outstanding bonds provided the conditions set forth in Section 19 of Resolution 7 - 63 (and Section 14 ( 2 ) of Ordinance No . 1508 ) have been complied with and the Board of Directors has determined that those conditions have been complied with and that , therefore , the bonds will be issued on and will rank on a parity of security with the Outstanding bonds . NOW , THEREFORE , BE IT ORDAINED by the Board of Directors of the City of Fayetteville , Arkansas : Section 1 . That the improvements be accomplished . In this regard , the appropriate officials of the City be and they are hereby authorized to execute all contracts and instruments and take all action necessary to accom - plish the construction of the improvements and to carry out the authority con- ferred by this Ordinance and to evidence the exercise thereof . Section 2 . That under the authority of the Constitution and laws of the State of Arkansas , including particularly Act No . 131 of the Acts of Arkansas for the year 1933 , as amended , Act No . 132 of the Acts of Arkansas for the year 1933 , as amended , and Act No . 297 of the Acts of Arkansas for the year 1937 , as amended , and the decision of the Supreme Court of the State of Arkansas in Harrison v . Braswell , 209 Ark . 1094 , 194 S . W . 2d 12 (1946) , City of Fayetteville , Arkansas , Waterworks and Sewer Revenue Bonds , Page 3 Series 1969 , are hereby authorized and ordered issued in the aggregate principal amount of $ 940 , 000 . The bonds shall be dated February 1 , 1969 and interest thereon shall be payable on August 1 , 1969 and semiannually thereafter on February 1 and August 1 of each year . The bonds shall be initially issued as fully registered bonds (registered as to principal and as to interest) and the principal and interest shall be payable at the principal office of Republic National Bank of Dallas , Dallas , Texas . The bonds will bear interest at the rate of 5 1/2 % per annum for the first six months (due August 1 , 1969 ) , at the rate of 5 3/4 % per annum for the next six months (due February 1 , 1970) , and at the rate of 6 % per annum thereafter until paid . The bonds shall be numbered and shall mature as set forth in the following schedule , unless the principal is prepaid as hereafter provided , and the bonds shall be in the varying denominations reflected by the schedule (with there being one bond for each year in the denomination of the entire principal maturity for the year) : YEAR BOND NOS , PRINCIPAL AMOUNT (August 1) 1970 R- 1 $ 25 , 000 1971 R- 2 16 , 000 1972 R- 3 17 , 000 1973 R- 4 18 , 000 1974 R- 5 19 , 000 1975 R- 6 21 , 000 1976 R- 7 18 , 000 1977 R- 8 20 , 000 1978 R-9 23 , 000 1979 R - 10 21000 1980 R- 11 11000 1981 R- 12 51000 1982 R- 13 41000 1983 R- 14 81000 1984 R- 15 8 , 000 1985 R - 16 91000 1986 R- 17 91000 1987 R - 18 15 , 000 1988 R - 19 17 , 000 1989 R- 20 19 , 000 1990 R - 21 22 , 000 1991 R- 22 21 , 000 Page 4 1992 R- 23 18 , 000 1993 R- 24 24 , 000 1994 R- 25 32 , 000 1995 R- 26 31 , 000 1996 R -27 30 , 000 1997 R- 28 31 , 000 1998 R- 29 32 , 000 1999 R- 30 35 , 000 2000 R - 31 38 , 000 2001 R-32 352 , 000 Payments of interest and prepayments of principal made in respect of any bond may be made to the registered holder thereof or his designated agent , without surrender of the bond , and all such payments shall fully discharge the obliga - tions of the City in respect of such bond to the extent of the payments so made . The Paying Agent is to keep a duplicate record of all payments made , and upon request the registered holder of any bond shall present the same to the Paying Agent so that proper notation of the payment can be made on the Payment Record attached to the bond . The City agrees that as soon as reasonably possible after the receipt by the City of the written request of the registered holder of any bond and upon receipt by the City of the expenses to be incurred by it or a showing to the City , to the satisfaction of the City , that expenses will be paid upon request , the City will prepare and execute negotiable coupon bonds , payable to bearer but registrable as to principal only or as to principal and interest , in the denomination of $1 , 000 or $ 5 , 000 each , as requested by the registered holder , in substantially the form of coupon bond hereafter in this Ordinance set forth , in the aggregate principal amount equal to the unpaid principal amount of the registered bond , with coupons annexed thereto maturing after the date to which interest on the fully registered bond shall have been paid . The City will cause such coupon bonds to be authen - ticated by Republic National Bank of Dallas , Dallas , Texas (the " Paying Agent " ) and delivered to the registerbd holder of the fully registered bond upon surrender and cancellation of the fully registered bond . The City shall at the time of Page 5 any such written request for an exchange of a fully registered bond for coupon bonds deliver to the Paying Agent a Certificate certifying the principal amount then unpaid on the fully registered bond and the date to which interest on the fully registered bond shall have been fully paid . Any fully registered bond so surrendered shall be cancelled and delivered to the City . The Paying Agent shall be fully protected in relying on any certificate or ordinance or resolution delivered to it under the provisions of this Section . The coupon bonds received . in exchange shall contain the designation of the fully registered bond and in addition shall be numbered consecutively from 1 upwards ; for example , the designation shall be " R-1 -1 " , etc . There shall be no exchange privilege from coupon bonds to fully registered bonds . Section 3 . The bonds shall be executed on behalf of the City by the Mayor and City Clerk and shall have impressed thereon the seal of the City . The facsimile signature of the Mayor may be used upon compliance with the provisions of Act No . 69 of the Acts of Arkansas for the year 1959 . Interest coupons attached to the coupon bonds shall be executed by the facsimile signature of the Mayor . The Mayor ' s facsimile signature shall have the same force and effect as if he had personally signed the bonds or coupons . The bonds shall be executed by the manual signature of the City Clerk . The principal of and interest on the bonds shall be payable solely out of the Bond Fund (hereafter referred to) and shall be a valid claim of the bondholders only against the Bond Fund and the revenues pledged to the Bond Fund which revenues (being net revenues derived from the operation of the System) are hereby pledged and mortgaged for the equal and ratable payment of the principal of and interest on the bonds , and the Outstanding bonds which rank on a parity of security , and the Bond Fund shall be used for no other purpose . The principal of and interest on the bonds shall not constitute an indebtedness of the City within any constitutional or statutory limitation . Section 4 . The fully registered bonds shall be in substantially the following form : ' Page 6 (Form of fully registered bond) UNITED STATES OF AMERICA STATE OF ARKANSAS COUNTY OF WASHINGTON CITY OF FAYETTEVILLE , ARKANSAS WATERWORKS AND SEWER REVENUE BOND SERIES 1969 No . R- $ KNOW ALL MEN BY THESE PRESENTS : . That the City of Fayetteville , Washington County , Arkansas , a municipality duly existing under the Constitution and laws of the State of Arkan- sas (the " City " ) , for value received , promises to pay to Republic National Bank of Dallas , Dallas , Texas or assigns (the " Payee " ) the principal sum of DOLLARS on the first day of August , 19_ in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of debts due the United States of America , and to pay interest on the principal amount of this bond from time to time remaining unpaid in like coin or currency , at the rate of 5 1/2% per annum for the first six months (due August 1 , 1969 ) , at the rate of 5 3/4% per annum for the second six months (due February 1 , 1970) , and at the rate of 6% per annum thereafter (commencing with the interest payment due August 1 , 1970) until paid , payable semiannually on February 1 and August 1 of each year . Payment of principal and interest shall be made at the office of Republic National Bank of Dallas , Dallas , Texas (the " Paying Agent " ) . Payments of principal and interest , including prepayments of principal as hereafter provided , shall be by check mailed to the Payee and payments other than the final payment at maturity shall be made without the necessity of the Payee surrendering this bond and all payments so made shall fully discharge the obligations of the City to the extent of the payments so made . The Paying Agent shall keep a record of all payments and the Payee may at any time submit this bond to the Paying Agent for completion Page of the Payment Record as to all payments theretofore made . Upon final payment of principal and interest , this bond shall be submitted to the Paying Agent for cancellation and surrender to the City . This bond is one of an issue of bonds aggregating Nine Hundred Forty Thousand Dollars ($ 940 , 000) in principal amount , issued initially as fully re - gistered bonds , designated " City of Fayetteville , Arkansas Waterworks and Sewer Revenue Bonds , Series 1969 " , dated February 1 , 1969 (the " bonds " ) . The bonds are being issued for the purpose of financing the cost of constructing extensions , betterments and improvements to the Waterworks and Sewer facilities of the City (which are operated as one system and herein referred to as the "System " ) and paying necessary expenses incidental thereto . The bonds are issued pursuant to and in full compliance with the Con- stitution and laws of the State of Arkansas , particularly Act No . 131 of the Acts of Arkansas for the year 1933 , as amended , Act No . 132 of the Acts of Arkansas for the year 1933 , as amended , Act No . 297 of the Acts of Arkansas for the year 1937 , as amended , the decision of the Supreme Court of the State of Arkan- sas in Harrison v . Braswell , 209 Ark . 1094 , 194 S . W . 2d 12 ( 1946) and pursuant to Ordinance No . __ adopted and approved on the day of February , 1969 (the " authorizing ordinance " ) . The bonds are not general obligations of the City , but are special obligations payable solely from net revenues derived from the operation of the System . There is presently outstanding an issue of City of Fayetteville Waterworks and Sewer Revenue Refunding Bonds , dated June 1 , 1963 issued under Resolution 7 -63 adopted and approved on April 8 , 1963 ( " Resolution 7 - 63 " ) , and an issue of City of Fayetteville Waterworks and Sewer Revenue Bonds , Series 1966 , dated September 1 , 1966 , issued under Ordinance No . 1508 adopted and approved on August 8 , 1966 ( " Ordinance No . 1508 " ) (both outstanding issues being collectively referred to as the " Outstanding bonds " ) , and the bonds are being issued on and shall rank on a parity of security with the Outstanding bonds . Provision is made for an amount of the net revenues derived from the Page 8 operation of the System sufficient to pay the principal of and interest on the bonds and on the Outstanding bonds to be set aside in a special fund for that purpose identified as the "Waterworks and Sewer Revenue Refunding Bond Fund " (created by Section 5 of Resolution 7 -63) with reference being hereby made to the authorizing ordinance (and to Resolution 7 -63 and Ordinance No . 1508) for a detailed statement of the nature and extent of the security , the rights and obli- gations of the City and the registered holders of the bonds and the terms and con- ditions upon which the bonds are issued , including , without limitation , the covenant of the City to fix and maintain rates for water and sewer services which shall be sufficient at all times to at least provide for the payment of the reason- able expenses of operation and maintenance of the System , the payment of the principal of , interest on and Paying Agent' s fees in connection with the bonds and the Outstanding bonds , as the same become due , and to maintain the other Funds at the required levels . As provided in the authorizing ordinance , this bond is exchangeable at the expense of the registered holder , at any time , upon notice to the City and upon surrender of this bond to the City at the office of the Paying Agent , for negotiable coupon bonds , payable to bearer but registerable as to principal only or as to principal and interest , in the denomination of $ 1 , 000 or $ 5 , 000 each , in the aggregate principal amount equal to the unpaid principal amount of this bond , and in the form of coupon bond provided for in the authorizing ordi- nance . The bonds shall be subject to redemption prior to maturity as follows : ( 1 ) In the case of excess funds from the proceeds of the sale of the bonds in the Construction Fund after the construction of the improvements has been completed and in the case of surplus revenues derived from the operation of the System , as set forth in the authorizing ordinance , the bonds shall be subject to redemption prior to maturity from funds from those sources , in whole or in part , on any interest payment date , at a price of par and accrued interest Page 9 with the redemption to be in inverse order of maturity (if less than all of a single maturity , then the principal amount of the fully registered bond for that maturity shall be prepaid in multiples of $ 1 , 000 , or if there are exchange coupon bonds for that maturity , then the exchange coupon bonds are to be redeemed in inverse numerical order) ; and (2) In the case of funds from any other source the bonds shall be subject to redemption prior to maturity , in whole but not in part , on any interest payment date at a price of par and accured interest . In the case of registered bonds (fully registered or exchange bonds registered as to principal only or registered as to principal and interest) notice of redemption shall be given at least 15 days before the redemption date by mailing to the registered holder of each bond a notice specifying the redemption date and the number and maturity of the bonds being redeemed (in the case of a partial prepayment of a maturity the notice shall specify the bond which is being partially prepaid and the amount of principal being prepaid) . In the case of exchange bonds (payable to bearer or registered as to principal only) there shall be published a notice of the redemption one time in a newspaper published in the City of Little Rock , Arkansas and having a general circulation throughout the State of Arkansas giving the number and maturity of each exchange coupon bond being called with the publication being at least 15 days prior to the redemption date . After the re- demption date each bond called for redemption (and in the case of a partial prepayment the amount of the principal being prepaid) shall cease to bear interest provided funds for the redemption are on deposit with the Paying Agent at that time . The fully registered bonds may be assigned , and upon assignment the assignor shall promptly notify the City at the office of the Paying Agent by registered mail , and the assignee shall surrender the bond to the Paying Agent for transfer on the registration records and verification of the endorsement made on the payment record attached hereto of the portion of the principal hereof and interest hereon paid or prepaid , and every such assignee shall take this bond subject to this condition . Page 10 It is hereby certified that all conditions , acts and things required to exist , to have happened and to have been performed precedent to and in the issuance of this bond do exist , have happened and have been performed in regular form , time and manner; that the indebtedness represented by the bonds does not exceed any constitutional or statutory limitation; and that sufficient revenues derived from the operation of the system have been pledged for and will be applied to the payment of the principal of and interest on the bonds to make those payments as the same become due . This bond shall not be entitled to any benefit under the authorizing ordinance or be valid or become obligatory unless it shall have been authen- ticated by the Paying Agent completing the Certificate appearing hereon . IN WITNESS WHEREOF , the City of Fayetteville , Arkansas has caused this bond to be executed in its name by its Mayor and City Clerk (with the facsimile signature of the Mayor but with the manual signature of the City Clerk) , thereunto duly authorized , and its corporate seal to be affixed , all as of the first day of February , 1969 . CITY OF FAYETTEVILLE , ARKANSAS By facsimile signature Mayor ATTEST: City Clerk (SEAL) Page 11 CERTIFICATE This bond is one of the fully registered bonds that is part of an issue of City of Fayetteville , Arkansas Waterworks and Sewer Revenue Bonds , Series 1969 , dated February 1 , 1969 , aggregating $ 940 , 000 in principal amount . REPUBLIC NATIONAL BANK OF DALLAS DALLAS , TEXAS By_ (Authorized Signature) (Form of Assignment) For value received , the registered owner last listed below sells , conveys , transfers , assigns and delivers this bond to the assignee last listed below: Registered Owner Assignee Page 12 PAYMENT RECORD Name of Paying Principal Agent Authorized Principal Balance Interest Official and Due Date Payment Due Payment Date Paid Title August 1 , 1969 _ February 1 , 1970 August 1 , 1970 February 1 , 1971 August 1 , 1971 February 1 , 1972 August 1 , 1972 February 1 , 1973 August 1 , 1973 February 1 , 1974 August 1 , 1974 February 1 , 1975 August 1 , 1975 February 1 , 1976 _ August 1 , 1976 February 1 , 1977