HomeMy WebLinkAboutOrdinance 1732 • _ " �il�Cui� +c a-1 �' 4r,.-�� � L�,.z•. /i .LC' C-�.�
; j
- - - ORDI-NANCE NO ,
AN ORDINANCE AUTHORIZING A CONTRACT BY
AND BETWEEN THE CITY AND BEAVER WATER
DISTRICT OF BENTON AND AiVASHINCTON COUNTIES ,
ARKANSAS IN SUBSTANTIALLY THE FORM AND WITFI
SUBSTANTIALIY 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 Board of Directors of the City of Fayetteville ,
Arkansas;
Section I . That there be , and there is hereby , authorized .
the execution and delivery of a Contract by and between the City of
i ,
Fayetteville , Arkansas (the " City " ), and Beaver Water District of Benton
and Washington Counties , Arkansas , in substantially the form and with
substantially the contents hereafter set forth , and the Mayor and City
Clerk be , and they are hereby , authorized to execute , acknowledge and ,
deliver said Contract for and on behalf of the Citl . The form and contents
of the said Contract , which are hereby approved and which are made a
part hereof , shall be substantially as follows : {
;
i
MICROFILM&
SECOND SUPPLMENTAI, CONTRACT
TIIIS CONTRACT entered into by and between the City of Fayetteville ,
Arkansas (the " City " ) , and Beaver Water District of Benton and Washington
Counties , Arkansas (the " District" ) ;
WITNESSETH :
WHEREAS , the District and the City have heretofore entered into a
Contract , dated January 16 , 1963 (the " 1963 Contract " ) , specifying annual .
payments to be made by the City to the District which , together- With annual
payments specified in similar contracts entered into by and between the District
and other cities '(ail ,cities involved , including the City referred to in this
Contract , are Fayetteville , Rogers , Springdale and Bentonville , Arkansas) are
sufficient to enable the District to adequately provide for the payment of the
principal of and interest on the outstanding Water Revenue Improvement Bonds ,
Series A , of the District originally issued in the principal amount of $ 411 , 000
(with $ 355 , 000 in principal amount being outstanding as of the date of Agxe'cution
hereof) ; and
WHEREAS , the 1963 Contract provides , among other things , that
when the District constructed additional improvements , the District and the
City (along with the other cities named above ) would enter into supplemental
contracts increasing the required payments to those amounts sufficient to en-
able the District to provide for the payment of all outstanding bonds ; and
WHEREAS , the District has undertaken an additional construction
program and in connection therewith issued $ 1 , 800 , 000 in principal amount of
Water Revenue Improvement Temporary Bonds of 1968 , dated December 1 , 1968 ,
bearing interest at the rate of 5 - 1/4 % per annum , with interest payable semi-
annually on June 1 and December 1 of each year , commencing June 1 , 1969 ,
and with all principal maturing December 1 , 1973 (the " 1968 Bonds " ) , with
the 1968 Bonds to be paid out of the proceeds of a permanent bond issue to be
Page 2
delivered on or prior to December 1 , 1973 , which permanent bonds will rank on
a parity of security with the outstanding Series A Bonds of the District and which
will be issued under and equally and ratably secured by the provisions of an out-
standing Deed of Trust by and between the District and First National Bank ,
Fayetteville , Arkansas (the " Trustee " ) , dated December 1 , 1962 (the " original
Indenture " ) and of record in the offices of the Circuit Clerks and Ex Officio
Recorders of Benton and Washington Counties , Arkansas (in Benton County ,
Arkansas in Book 229 , Page 329 , and in Washington County , Arkansas , in
Book 291 , Page 124) ; and
WHEREAS , the 1968 Bonds were issued under and secured by the pro-
visions of. a Supplemental Deed of Trust by and between the District and First
National Bank , Fayetteville , Arkansas , dated December 1 , 1968 ( " First Supplemental
Indenture " ) , and of record in the offices of the Circuit Clerks and Ex Officio
Recorders of Benton and Washington Counties , Arkansas (in Benton County ,
Arkansas , in Book 286 , Page 400 , and in Washington County , Arkansas , in
Book 753 , Page 14) ; and
WHEREAS , it has now developed that the original estimates were
inadequate and the District finds that in order to complete the improvement
program. it needs an additional $ 400 , 000 and the District has determined to issue
Water Revenue Improvement Temporary Bonds of 1970 in the principal amount of
$ 400 , 000 , dated March 1 , 1970 , bearing interest at the rate of 6 - 1/2 %" per
annum , with interest payable semiannually on June 1 and December 1
of each year commencing December 1 , 1970 , and with all principal maturing
December 1 , 1973 (the " 1970 Bonds " ) , with the 1970 Bonds , along with the
1968 Bonds to be paid out of the proceeds of a permanent bond issue to be
delivered on or prior to December 1 , 1973 , which permanent bonds will
rank on a parity of security with the outstanding Series A Bonds of the
District and which will be issued and equally and ratably secured by the
provisions of the original Indenture , as supplementod; and
Page 3
WHEREAS , THE District and the City (along with the other cities
involved) have entered into a Memorandum of Understanding and Contract
for Constructing ,_ Maintenance , Operation and Expansion of Beaver Water
Supply Facilities , executed in June 1967 (the " 1. 967 Agreement " ) ; and
WHEREAS , executed - copies of the 1963 Contract , the 1967 Agreement ,
the original Indenture and the First Supplemental Indenture are on file in the
office of the Secretary of the District and in the office of the Trustee and reference
is made thereto for the details of their terms and provisions ; and
WHEREAS , in connection with the issuance of the 1968 Bonds , the District
entered into a Supplemental Contract (the " First Supplemental Contract" ) and it
i
is now necessary to enter into a Second Supplemental Contract in connection with
the issuance of the 1970 Bonds ; and
WIIEREAS , this Second Supplemental Contract is entered into by way of
implementation of the provisions of the 1967 Agreement for the benefit of the parties
hereto and for the Trustee and the holders of. the 1970 Bonds to insure adequate
revenues for payment of the principal of and interest on the 1970 Bonds in
accordance with the provisions thereof and in accordance with the original
Indenture , as supplemented by the First Supplemental Indenture , and as supple -
mented by a Second Supplemental Deed of Trust , dated as of March 1 , 1970 ,
specifying the details pertaining to the 1970 Bonds and the nature and extent of
their .security (the " Second Supplemental Indenture " ) , which Second Supplemental
Indenture has been or will be prior to the delivery hereof recorded in the offices
of the Circuit Clerks and Ex Officio Recorders of Benton and Washington Counties ,
Arkansas , and an executed copy of which will be on file in the office of the
Secretary of the District and in the office of the Trustee ;
NOW , THEREFORE , in consideration of the mutual benefits heretofore
derived and to be hereafter derived by the parties to this Contract (includi.ng ,
without limitation , the insuring of an adequate water supply to the City and its
}
Page 4
inhabitants necessary for the public health , safety and welfare) , and
for other good and valuable consideration , the receipt of which is
hereby acknowledged by the parties hereto , the City and the District
agree as follows :
( 1 ) In addition to the payments specified in the 1963 Contract
and the First Supplemental Contract , the City shall pay to the District , solely .
from revenues derived from the operation of the City ' s utility system
(being the municipally owned and operated utility facilities which in the
case of Fayetteville consists of water and sewer facilities , in the case
of Bentonville consists of water and electric facilities , in the case of
k
Rogers consists of water facilities and in the case of Springdale consists
i
of water facilities) , the amounts on the dates set forth in the following
i
schedule :
i
SEMIANNUAL PAYMENT DATE OF PAYMENT
$ 9 , 981 . 75 (nine months) November 15 , 1970
' 61654 . 50 May 15 , 1971
61654 , 50 Novemberl5 , 1971
61654 , 50 May 15 , 1972
61654 , 50 November IS , 1972
61654 , 50 May 15 , 1973
61654 , 50 November 15 , 1973
The sum of the above payments and similar payments being made by the
other cities involved will be sufficient to provide funds for the District
to pay interest when due on the 1970 Bonds for the entire period from
the date of the 1970 Bonds (March 1 , 1970) until their maturity (December 1 ,
1973) and the payments are to be used solely by the District for that pur-
pose . In addition to the above payments it will be necessary to provide
for the payment of fees of the Trustee and Paying Agent in connection with
the 1970 Bonds and the City agrees that upon demand by the Trustee it will
pay either to the District or directly to the Trustee 40 . 95 per cent of
aL .Lr -L -• -� -
f
Page 5
such fees (with the understanding that the percentage maybe varied if
necessary to round off amounts among it and the other cities involved
so that the total to be paid by all of the cities involved .will equal the
fees of the Trustee and Pay Agent) .
(2) The City and the District understand that pennanent bonds
will be issued on or prior to December 1 , 1973 and that the required amount
of the proceeds of the permanent bands will be used to pay in full all of
the outstanding 1968 Bonds and the 1970 Bonds . In connection with the
permanent bonds the City and the District hereby covenant and agree that
they will execute and deliver a Contract specifying payments (from the
operation of their respective utility facilities as heretofore described in
this Contract) sufficient to enable the District (along with similar payments
to be received by the District from the other cities involved) to provide
for the payment of the principal of and interest on the permanent bonds
as the same become due and containing such other provisions as the City
and the District deem desirable or appropriate at the time not inconsistent
with the above covenant_. It is understood and agreed that the holders of
the 1970 Bonds are acquiring and will hold the 1970 Bonds in reliance upon
the commitment of the City (and the other cities involved) to make the re-
quired payments specified in ( 1 ) above and in reliance upon the covenant
of the City (and the similar covenant of the other cities involved) set forth
in this paragraph (2) .
(3) It is understood and agreed that pursuant to the provisions
of Paragraph (8) of the 1963 Contract that the contractual obligations of the
City hereunder shall rank on a parity of security with the contractual obli -
obligations of the City under the 1963 Contract and under the rust
Supplemental Contract ,
Page
(4 ) The 1963 Contract , as supplemented by the First Supplemental
Contract and as supplemented hereby , shall continue in full force and effect
and the City , the District , the Trustee and the holders of all. of the outstanding
Bonds of the District (including the holders of the 1970 Bonds ) shall be entitled
to the benefit of all provisions thereof and of all rights thereunder , including
particularly and without limitation , the covenant of the City specifying that the
required payments (from utility facility revenues) are certainly payable on the
dates specified without notice or demand or without abatement or setoff and
regardless of any contingencies whatsoever and notwithstanding any circumstances
or occurrences that may now exist or that may hereafter arise or take place .
IN WITNESS WHEREOF , 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 Clerk 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 they ?Xo day of
1970 .
CITY OF. FAYETTEVILLE , ARKANSAS
ATTEST :
By
Mayor
y Clerk
(SEAL)
BEAVER WATER DISTRICT OF
BENTON AND WASHINGTON COUNTIES
ATTEST :
Chairman
Secretary
(S EAL)
Page 7
TRUSTEE ' S APPROVAL
Pursuant to the provisions of Paragraph (2) of the 1963
Contract , the Trustee hereby consents to and approves the execution and
delivery of the foregoing Second Supplemental Contract ,
FIRST NATIONAL BANK
FAYETTEVILLE , ARKANSAS - TRUSTEE
By_
Page 9
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 all 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 the 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 declared to be invalid , such declaration shall not
affect the validity of the remainder of the sections , phrases or provisions .
Section n . That all ordinances and parts of ordinances in
conflict herewith are hereby repealed to the extent of such conflict .
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 the 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 :_ _
APPROVED :
Mayor
ATTEST:
Cit Clerk -
CERTIFICATE
The undersigned , City Clerk of the City 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 Board of Directors , held at the regular meeting p ce of the Board
of Directors in the City of Fayetteville , Arkansas , at f .L o ' clock/ me
on the day of 1970 , and that said ordinance is of
record in Ordinance Record Book Pagee -2— now in my possession .
` i
GIVEN under my hand and seal this lftjw- day of
1970 ,
i �
is
(SEAL)
- : i
CERTIFICATE OF RECORD.
State of Arkansss ( Ss
City of Fayetteville
I, Suzanne C. Kennedy, City Clerk and
Es-Officio recorder fortlie City of Fayetteville,
do hereby certify that the annexed or fore-
0' record in my office and the sante ap-
nc:r.:-. i t 0 :..'i rance & Resolution book
VV' itness my
--, :.ly of
City Clerk and -.,). , . i -; recorder
� J
January 15 , 1970
Schedule of payments required from Cities of Bentonville, Fayetteville , Rogers and
Springdale to Beaver Water District , in order to provide funds equivalent to 125%i
of maturing interest on $400 , 000 Beaver Water District 6 1/2% Water Revenue Imp-
rovement Temporary Bonds of 1970 , dated March 1 , 1970 all maturing December 11 1973 .
.CITY OF BENTONVILLE, ARKANSAS (7 , 71%)
SEMI-ANNUAL PAYMENT DATE PAYMENT DUE
$1 , 879 . 50 (nine months) November 15 , 1970
1453J00 May 15 , 1971 ) 2 `�3 as
1 , 253 . 00 November 15 , 1971 ` 25 3 , 06
1 , 253 . 00 May 15 , 1972 C 6
1 , 253 .00 November 15 , 1972
11253 . 00 May 15 , 1973
1 , 253 . 00 November 15 , 1973
CITY OF FAYETTEVILLE , ARKANSAS (40 . 950)
SEMI-ANNUAL PAYMENT DATE PAYMENT DUE
$9, 981 . 75 (nine months) November 15 , 1970
6 , 654 . 50 May 15 , 1971
6 . 654 . 50 November 15 , 1971 (a ( s4t_'Vb
6 , 654 . 50 May 15 , 1972 p p b 7 c
6 , 654 . 50 November 15 , 1972 /3 )b
6 , 654 . 50 May 15 , 1973
6 , 654 . 50 November 15 , 1973
CITY OF ROGERS , ARKANSAS (16 . 27%
SEMI-ANNUAL PAYMENT DATE PAYMENT DUE
$ 3 , 966 . 00 (nine months) November 15 , 1970 �� ` C' 404of
20644 . 00 May 15 , 1971 4� 06
2 , 644 .00 November 15 , 1971 Z , ���� O
2 , 644 .00 May 15 , 1972 . �( r 9gg �00 Qvy � df
21644 .00 November 15 , 1972
2 , 644 . 00 May 15 , 1973
2 , 644 .00 November 15 , 1973
CITY OF SPRINGDALE , ARKANSAS ( 35 . 07`,)
SEMI-ANNUAL PAYMENT DATE PAYMENT DUE
$8, 547 . 75 (nine months) November 15 , 1970 Jrb � g,S�
5 , 698 . 50 May 15 , 1971 15 ,
5 , 698 . 50 November 15 , 1971
5 , 698 . 50 May 15 , 1972 n �f
5 , 698 . 50 November 15 , 1972
51698 . 50 May 15 , 1973
5 , 698 . 50 November 15 , 1973
ANNUAL INTEREST AT 6 1/2% ON $400 , 000 BONDS . . . . . . . . . . . . . . . . . . . . . . . . . . . $26, 000 . 00
ANNUAL PAYMENT FROM ABOVE CITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 , 500 . 00
INTEREST REQUIREMENTS TIMES COVERED BY PAYMENTS . . . . . . . . . . . . . . . . . . . . . . . 1 . 25
First coupon on bonds due December 1 , 1970 is for interest from March 1 , 1970 or
period of nine months . This is reason for first payment from cities must be for
nine months . Payments thereafter are for six months period .
•
•
EXCERPTS FROM MINUTES Or A MEETING OF THE
FAYETTEVILLE, ARKANSAS, BOARD OF DIRECTORS
HELD -
February 2 , 1970
The Board of Directors of the City of Fayetteville
Arkansas met in regular session at its regular meeting place in
Fayetteville , Arkansas at 7:30 o'clock p .m., on the
2nd day. of February — , 19__70_• The following were present:
Mayor Garland Melton, Jr. ; City Clerk Marilyn Moore
City Manager Wesley M. Howe ; and Directors Gerald Jones,
Sylvia Swartz, Ernest Lancaster, and Joe Fred Starr.
Absent: Directors Joe McFerran and Dale Dunn.
The Mayor stated that consideration should be given to an
ordinance authorizing the execution of a Second Supplemental Contract
between the City and Beaver Water District
This was a matter with which the Board was familiar and after a discussion,
Director ' Lancaster introduced an ordinance entitled:
"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 SUBSTANTIALLY
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"
and the City Clerk read the ordinance in full.
I
l
1
•
• -
V
Page 2
Director Starr , seconded by Director
Swartz , moved that the rule requiring the reacting
of an ordinance or resolution in full on three different days be suspended and
that the ordinance be placed on its second reading. The Mayor put the question
on the adoption of the motion and the roll being called, the following voted aye:
Jones, Swartz. Melton. Lancaster, and Starr
and the following voted nay: None.
Thereupon the Mayor declared that at least two-thirds of all
members of the Board having voted in favor of the motion to suspend the rule,
the motion was carried and the rule suspended. The ordinance was then read
by the City Clerk
Director Starr
seconded by Director
Lancaster then moved that the rule requiring the reading of an
ordinance in full on three different days be further suspended and that the ordinance
be placed on its third reading. The Mayor put the question on the adoption of
the motion and the roll being called the following voted aye:
r u •,._ ._
and the following voted nay: None.
—.---+ M\NYNaa.s....i I.{{=M. I.1:\I Q•�I.C...'.w�Y/I. •il�
S �'V.•�.2ti'i.Yf.Cab"JYtilif9fyl]iC4LL{:LV.Ti:. rI.
1•'
•q a
1
Page 3
The Mayor declared that at least two-thirds of all members elected
to the - Board i having voted in favor of the motion to suspend the Wile, the motion
was carried and the rule suspended. The ordinance was then read by the City
Clerk
1_.
Director Starr seconded by Director
Lancaster V , moved that the ordinance be adopted. The
question was put by the Mayor on-1he adoption of the motion.and the roll.being
called, the following voted aye:
Jones, Swartz, Melton, Lancaster, and Starr_
and the following voted nay: __ None. __
Director Lancaster , seconded by . Director
Swartz __ moved that Section 5_, the emergency clause, .
be adopted, and on roll call the following voted aye:
Jones, S-nartz, Melton, Lancaster, and Starr
and the following voted nay: None.
I
The Mayor thereupon declared the ordinance and the emergency
clause adopted and signed the ordinance, which was attested by the City Clerk
and impressed with the seal of the City. The ordinance was given No. 1732
(Matters not relating to the ordinance authorizing Second
Supplemental Contract
A'1TEST:
City Cler-
are omitted.)
There being no further business, the Board adjourned.
.1:
•
:
CERTIFICATE
The undersigned, City Clerk
of
Fayetteville , Arkansas, hereby certifies that the foregoing
pages numbered 1 to 3, inclusive, are a true and correct copy of excerpts
of the minutes of a meeting of the Board of Directors of Fayetteville
Arkansas at a regular session held at the regular meeting place of
the Board in said City at 7:30 o'clock p..m. , on the 2nd day
of February , 19 70 and the time and place -of the meeting was
furnished to each person who made a request therefor in accordance with the
provisions of Act No. 93 of the Acts of Arkansas of 1967.
(SEAL)
t Try
O1, • STATE of ARKANSAS 1
J
as.
sT County of Washington
THI Itli 11 p
op G41��.11S U1•
I, -- --- ---- -_...---------I ----------------------- --- ---- -, hereby certify that I
TO; am the General Manager) of THE NORTHWEST ARKANSAS TIMES,
CBE rr ORnAMDD Dy the sold d� a daily newspaper having a second class mailing privilege, and being not
Dh.knws: °f'"t flu of Peya1�'�' less than four pages of five columns each, published at a fixed place of
o
IfeatON v That then be, andthn1 business and at a fixed (daily) intervals continuously in the City of
is hereby. authorized the executCs and
delivery of a Coetnn by and btMeld Fayetteville, County of Washington, Arkansas for more than a period
the City of FayettevtRe, rteout(IRI of twelve months, circulated and distributed from anestablished place of
"Cip" ), and Beaver Water DI d
sentan and Washington Counties. \hk J business to subscribers and readers generally of all classes in the City
sae, ln'.ubstanuauy the form and & County for a definiteprice for each copy, price per annum,
substanitally the contents herntap .d or a fixed
forth, and the Mayor and City cle* e{ which price was fixed at what is considered the value of the publication,
and they are hereby, autherfaed to Y�
cute, acknowledge and deliver eeid aer based upon the news value and service value it contains, that at least fifty
pith •or and an behalf of the City. The percent of the subscribers thereto have paid cash for their subscriptions
nra and contents id the said lbntact, P
- to the newspaper or its agents or through recognized news dealers over a
rh"eh are hereby approved and which period of at least six months; and that the said newspaper publishers an
ire made a part hereof. Nall be sun average of more than forty percent news matter.
.lenliall) a hollows:
SF1 nND %I PPLFMENTAl. cONTBACr I further certify that the legal notice hereto attached in the matter of
THIS CONTRACT entered Into by and
between the City of Fayetteville, Arten.
us tale "City"). and Beaver Water Dis- Ben ties. A Arkansas
and Washington Oom-
tier, NESSE!a tae "" ): � % d' f�2..
ESBETA:
WHEREAS. the District and the at
❑ave heretofore entered Idto a contract, was published in the regular daily issue of said newspaper for ____I
dated January 19, 1961 (he '4%s Con-
tract") specifying annoy pgments to conseeakivi insertion% as follows:
be made by the City to tile District
which, tl similarher with mcterectpayments /—dfiday----------------1970
.
by
in e een contracts ananrea into The first insertion on the _ / -. _ of __ __ _ ____ 19 C�
Irv' and btall
tes the other
e
ritica tell cities Involved. including the
City referred to in this Contract, are the second insertion on the ___.- _-_.__.... day of ------------------------19_
FYyetteville. Roger, Springdale and
Hentanville, Arkansas) are surftelent to
enable the District to aaealetely pro the third insertion on the _ day of .. .___ 18_.-
vide for this payment of the principal at _-- ------ ___---
• and Internet an the tstanding water
kever is ftW ' Dad., Saks A.'
nr thea f is In r and the fourth insertion on the day of
In l S . betty at6Wd-
fl iu of the data d aamaam
d WHEREAS, be 11f pidnect
—
de,. a---- --
rides, among after thbn. that
Iha Dtatrbct am bu 1
nto•ementa, tee DWrFY yd the cad Sworn to and subscribed before me on this ._.�6_____ day of -
aim{ with the ghnr. Sfn tamed
above) would Or Inta-aapWemeaW.
ewitract. Increasing the feewred pay /,
to thine ampmta stficlat to et- - 197.1'1.
WHEREAS, rinistri 7>ha. dhen r--.
tentsdin,,,! ct to provide fir
ent RDA0. the District San undulation
d all oatao
e tdttl,mal mnslrutYlon Pmgmm And
the pty-
n nd
p m
-- No y Public
with
lvgl My Commission Expires: a/y
r: pal rl :c !a -e 1. ish ber ,;P. at (tin-,
maturIng December 1, 19T3 (the; .____
19® Benda'), with the 19M Raids to
r t of the proceeds of a per.
. •---• ,'N cache on
bond ., e L. .
r m ' - '.Skit
N -Icy Fees for Printing ------
•"A
t..
Cost of Proof ____- $_____._..............
,-Far Total -------- $-�L11_,�--
,lee"),
"C tite original
. .,-cord in the offices
and Ex Officio Re-
, aid Washington coup.
�..rmy Calnt>'. Attars.,
.. , a.1 wash.
-- . a 291,
WI! li! r \ the 19tin Bonds were issued
under and noun by the pyv4bma of
a ■mdemafl Deft at That by and
bet. the District and ptrst Betimal
Bank. fVeRavak, Aitanas, dated Dt-
catnber 1, 15 ('rust mtpWemtnftl ln-
idanInra"), and of I .,d In the offices
of the Circuit Chrh and Xx Officio Re-
aoNen d Hamm and Washington Cmn-
tYe. Artanna no Been, tomb. sry
i flaw., In Bank S. Page /ft, and L'
WaSt into. amp', Arkansas, to ma
mi, Page 14); and
'N I iI,l:FLaa 1'. ha, now developed that
the nr'g'nal esLmates were inadequate
and the Dalr:et find: that in order to
(orrDele the unplovement program it
needs an additional $4It and the,
District has determined to issue Water'.
Revenue Improvement Temporary Bonds
of 1410 in the principal amount of $400,-
. dated March 1, 1970, hearing interest
I at the rate of 614% per annum, with in -
1 terest payable semiannually on June 1
and December 1 of each year corn-:
mencing Decembr 1, 1940, and with all
principal maturing December 1, 1973
t the "1970 Bonds"), with the 1970 Bonds,
along with the 19M Bonds to be paid
out of the proceeds of a permanent bond
issue to be delivered on or prior to De-
cember 1, 1973, which Permanent bonds
will rank on a parity of security with
the outstanding Series A Bonds of the
District and which will be issued and
equally and ratably secured by the pro-
visions of the original Indenture, as sup-
plemented; and
WHEREAS, THE District and the City
(along with the other cities involved)
have entered into a Memorandum of Un-
derstanding and Contract for Con'
strutting, Maintenance. Operation und-
Expansion of Beaver Water Supply Fa-
cilities, executed in June 196? (the "1967
Agreement"); and
WHEREAS, executed Copies of the
1963 Contract, the 1%? Agreement, the
original Indenture and the First Supple-
mental Indenture are on file in the of-
fice of the Secretary of the District and
in the office of the Trustee and reference
is made thereto for the details of their
terms and provisions; and
WHEREAS, in connection with the is-
suance of the 1968 Bonds. the District
entered into a supplemental Contract
the '-FYrst Supplemental Contract") and
it is now necessary to enter into a Sec-
ond Supplemental C_:itact in connection
with the issuance of the 1970 Bonds:,
and
WHEREAS, this Second Supplemental
Contract is entered into by way of im-
plementation of the provisions of the
1967 Agreement for the benefit of the
parties hereto and for the Trustee and
the holders of the 1970 Bonds to insure
adequate revenues for payment of the
principal of and interest on the 1970
Bonds in accordance with the provisions
thereof and in accordance with the orig-
inal Indenture, as supplemented by the
First Supplemental Indenture, and as
supplemented by a Second supplemental
Deed of Trust, dated as of March 1, 1970,
specifying the details pertaining to the1
1970 Bonds and the nature and extent of
their security (the "Second Supplemental
Indenture"), which Second Supplemental
Indenture has been or will be prior to
the delivery hereof recorded in the of-:
(ices of the Circuit Clerks and Ex Offi-
cio Recorders of Benton and Washington
Counties, Arkansas, and an executed copy,
of which will be on file in the office oft'
the secretary of the District and in the
office of the Trustee;
NOW, THEREFORE, in consideration
of the mutual benefits heretofore derived)
and to be hereafter derived by the par
ties to this Contract (including, without
limitation, the insuring of an adequate
writer supply to the City and its in-
habitants necessary for the public health.
safety and wet fare), and for other good
and valuable consideratan. the receipt!
of which is hereby acknowledged by the
parties hereto, the City antl the District
agree as follows:
tL In addition to the payment' sped -
lied in the 1%3 Contract and the First
Supplemental Contract, the qty shall pay
to the District, solely from revenues de-
rived from the operation of the City's
utility system (being the municipellY,
owned and operated utility facilities
which in the case of Fayetteville consists
of water and sewer facilities, in the
case of Bentonville consists of water and
electric facilities, In the case of Rogers
consists of water facilities and In the
case of Springdale consists of water
i facilities, the amounts on the dates set
forth in the following schedule:
SEMIANNUAL DATE OF
PAYMENT PAl-MEAT
$9481.75 (nine months) November 15, 1810
5.65.110 May 1:i, 1971
n 6.51.:A November 15. 1971
6.niI.50 May 1.`. 192
6,634.50 November 15.1972
.6,654.50 May 15, 1973
il. Sl.50 November 15, 1973
The sum of the above payments and
similar payments being made by the
other cities involved will be sufficient to
provide funds for the District to pay in-
terest when due on the 1970 Bonds for
the entire period from the date of the
1070 Bonds (March 1, 1970) until their
maturity (December 1, 1973) and the
payments are to be used solely by the
District for that purpose. In addition to
the above payments It will be necessary
to provide for the payment of fees of the
Trustee and Paying Agent in connection
with the 1970 Bonds and the City agrees
that upon demand by the Trustee it will
pay either to the District or directly to
the Trustee 40.95 per cent of such fees
(with the understanding that the per-
centage may be varied If necessary to
round off amounts among it and the
other cities involved so that the total to
be paid by all the cities involved will
equal the fees of the Trustee and PAY
Agent,.
12, The City and the District under-
stand that permanent bonds will be Is-
sued on or prior to December 1, 1973
and that the required amount of the
proceeds of the permanent bonds will be
used to pay in full alt of the outstanding
1568 Bonds and the 1SI0 Bonds. In core
notion with the permanent bonds the
City and the District hereby covenant
and agree that they will execute and de-
liver a Contract specifying payments
(from the operation of their respective
utility facilities as heretofore described
in this Contract) sufficient to enable the
District (along with similar payments
to be received by the District from the
other cities involved) to provide for the
payment of the principal of and Inter-
est on the permanent bonds as the game
become due and containing such other
provisions as the City and the District
deem desirable or appropriate at the
time not inconsistent with the above
Covenant. It is understood and agreed
that the holders of the 1970 Bonds are
acquiring and will hold the 1970 Bonds
in reliance upon the commitment of the
City (and the other cities involved) to
make the required payments specified
in (1) above and in reliance upon the
covenant of the City (and the similar
covenant of the other cities involved)
set forth in this paragraph (2).
(3) It is understood and agreed that
pursuant to the provisions of Paragraph
(81 of the 1963 Contract that the con-
tractual obligations of the City hereunder
shall rank on a parity of security with
the Contractual obligations of the City
under the 1963 Contract and under the
First Supplemental Contract.
(4) The 1963 Contract, as supplemented
by the First Supplemental Contract and
as supplemented hereby, shall continue
In full force and effect and the City, the
District, the Trustee and the holders of
all of the outstanding Bonds of the Dis-
trict (Including the holders of the 1970
Bonds) shall be entitled to the benefit of
all provisions thereof and of all rights
thereunder, including particularly and
without limitation. the covenant of the
City specifying that the required pay-
ments (from utility facility revenues)
are certainly payable on the dates speci-
fied without notice or demand or with.
out abatement or set off and regardless
of any contingencies whatsoever and
notwithstanding any circumstances or oc-
currences that may now exist or that
may hereafter arise or take place.
IN WITNESS WHEREOF, the City has
Caused this Contract to be signed in its
name and on its behalf by its Mayor and
its coporate seal to be herewith affixed
and attested by its City Clerk 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 here-
unto affixed and attested by its Secre-
tary, all as of the 2nd day of February,
1970.
CITY OF FAYEITEVD.LE,
ARKANSAS
By GARLAND MELTON JR., Mayor
ATTEST:
MARILYNCleric
MOORE.
Clerk 1 City
(Seal)
BEAVER WATER DISTRICT OF
BENTON AND WASHINGTON
BY
Chairman
ATTEST:
secretary
(Seal)
TRUSTEE'S APPROVAL
Pursuant to the provisions of Para-
graph (2, of the 1961 Contract, the
Trustee hereby consents to and approves
the execution and delivery of the fore-
going Second Supplemental Contract.
FIRST NATIONAL BANK
FAYETTEVILLE. ARKANSAS
TRUSTEE
By
SECTION 2. That the Mayor and City
Clerk be, and they are hereby, author-
ized and directed for and on behalf of
the City to do all things, execute all Ire
atmments and otherwise lake all notion
necessary to the realization of the City's
rights and to the discharge of the City's
obligations under the Contract.
SECTION 3. That the provisions of this
ordinance are hereby declared to be
separable and If any section, phrase or
prevision shall, for any reason, be de-
clared to be invalid, such declaration
shall not affect the validity of the re-
mainder of the sections, phrases or pro-
visions.
SECTION 4. That all ordinances end
parts of ordinances In conflict herewith
are hereby repealed to the extent of
such conflict.
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 the City and its
Inhabitants, and the execution and de-
liver- of the Contract approved by this
ordinance is essential therefore. It Is,
therefore, declared that an emergency
exists and this ordinance being neces-i
gary for the immediate preservation of
the public health, safety and welfare
shall be in force and take effect immedi.
ately upon and after its passage.
PASSED: February 2, 1970
APPROVED:
GARLAND MELTON JR., Ma)nr
ATTEST:
MARILYN MOORE.
City Clerk
(Seal)
CERTIFICATE.
The undersigned, City Clerk of the City
of Fayetteville, Arkansas, hereby certi-
fies that the foregoing pages numbered
I to Ii, inclusive, are a true and com-
pared copy' of an Ordinance Passed at a
regular session or the Board of Directors.
held at the regular meeting piece of the
Board of Directors in the City of Fay-
etteville, Arkansas, at 7:38 O'clock p.m.
on the 2nd day of February. 19?0, and
that said ordinance is of record In ordl-
nance Record Book 2, Page 82. now In
my possession.
GIVEN under my hand and seal this
2nd day of Fehruary. 1970.
AMARO.YN MOORE. City Clerk
(Sesl1