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HomeMy WebLinkAboutOrdinance 2074 I )LE ID FOR i � EC, t 2074 ,; Lh' ` : I •� P. ORDINANCE NO . 1. 1 ' ,. 0 CIL � ;( 7 7 11 AN ORDINANCE PROVIDING FOR THE ISSUANCE OF WATERWORKS AND SEWER REVENUE BONDS, BY THE CITY OF FAYETTEVILLE . ARKANSAS FOR THE PURPOSE OF FINANCING THE COST OF CON - STRUCTING EXTENSIONS , BETTERMENTS AND IMPROVEMENTS TO THE WATERWORKS AND SEWER SYSTEM ; PROVIDING FOR TI£ PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE BONDS ; PRESCRIBING OTHER MATTER RELATING THERETO; AND DE - CLARING AN EMERGENCY . I� f WHEREAS , the City of Fayetteville , Arkansas (the " City " ) owns and operates a municipal. Waterworks and Sever System (the " System " ) ; and WHEREAS , the City has outstanding an issue of Waterworks and Sewer Revenue Refunding Bonds , dated ;un^ 1 , 1963 (the " 1963 Bonds " ) , in the original principal amount of $ 5 , 313 , 000 of whi .:11 $ 3 , 535 , 000 i ,l principal amount are now outstanding , issued under and secured by the provisions of Resolution No . 7- 63 of the City , adopted and approved on April 8 , 1963 (" Resolution No . 7- 6316 ) ; an issue of Waterworks and Sewer Revenue Bonds , Series 1966 ,. dated September 1. , 1966 (the " 1966 Bonds " ) , in the original principal amount of $4 , 300 , 000 of which $ 4 , 300 , 000 in principal amount are now outstanding , issued under and secured by the provisions of Ordinance No . 1508 , adopted and approved on August 8 , 1966 (" Ordinance No . 1508 " ) ; and an issue of Waterworks and Sewer Revenue Bonds , Series 1969 , dated February 1 , . 10. 69 (the " 1969 Bonds " ) , in the original principal amount of $ 940 , 000 of which $ 824 , 000 in principal amount are now outstanding , issued under and secured by the provisions of Ordinance No . 1653 , adopted and approved February 3 , 1969 (" Ordinance No , 1653 " ) ; and WHEREAS , it is necessary that the City construct extensions , betterments and improvements to the System (the " improvements " ) ; and QQ VOL vvo ' 925 MICROFILMED DATE OCT 1 e 978 REELS— Page 2 WHEREAS , the estimated cost to be borne by the City of accomplishing the improvements and of authorizing and issuing bonds is $4 , 000 , 000 (the remainder will be supplied from other available funds and from grant funds from the United States of America) ; and WHEREAS , there has beeny a . dul ared re b p p y qualified consulting _ ��• " . engineer a report and estimates covering the improvements , which have been studied by the Board of Directors and a copy filed in the office of the City Clerk , to which reference may be made by any interested party; and WHEREAS , in order to finance such costs it is necessary for .the . City to authorize Waterworks and Sewer Revenue Bonds in the principal amount of $4 , 000 , 000 (the " bonds " ) to be issued in series; and WHEREAS , references herein to " outstanding bonds " shall mean the 1963 Bonds , the 1966 Bonds and the 1969 Bonds; and WHEREAS , bonds can be issued on a parity of security with the outstanding bonds provided i.Frthe conditions set forth in Section 19 of Resolution No . 7- 63 (and Section 14 (2) of Ordinance No . 1508 and Section " 14 (1 ) of Ordinance No . 1653) can be complied with and the Board of Directors has determined that those conditions will be met at the time 'of the issuance of each series and that , therefore , the bonds that are issued will rank on a parity of security with the outstanding bonds and the bonds of previously issued series; . NOW , THEREFORE , BE IT ORDAINED by the Board of Directors of the City of Fayetteville , Arkansas : Section 1 . That the improvements be accomplished as soon as practicable . 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 accomplish the improvements and to carry out the authority conferred by this Ordinance and to evidence the exercise thereof . Page 3 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 of 1933, as amended, Act No . 132 of the Acts of Arkansas of 1933, as amended , and the decision of the Supreme Court of the State of Arkansas in Harrison v . Braswell , 208 Ark . 1094 , .! 194 S . W. 2d 12 (1946) , City of Fayetteville , Arkansas Waterworks and Sewer Revenue Bonds are hereby authorized and ordered sold in the total prinicpal amount of up to $4 , 000 , 000 for the purpose of financing costs of accomplishing the improvements . The bonds may be sold and issued from time to time in series as funds are needed with the series designated in alphabetical order beginning with Series A. The bonds of each series shall be dated on such date , interest thereon shall be payable semiannually on such dates and the principal shall mature on such date or dates (and be subject to redemption on such dates and pursuant .4o such1.terms) cas shall :be subsequently specified by resolution of the Board of Directors , but in any event , the latest maturity of any series shall not be later than the year 2010 . The bonds of each series shall be negotiable coupon bonds payable to bearer but subject to registration as to principal or as to principal and interest and may be serial bonds or term bonds , or a combination of both . Payment of principal and interest coupons shall be made at the principal office of the Paying Agent . Payment of interest when registered as to interest may be by check or draft mailed to the registered owner at the address shown on the registration book of the City maintained by the Trustee . The bonds of each series shall be sold at public sale after advertise- ment in such publications as the City Manager (after consultation with bond counsel and the City ' s fiscal agent) shall determine will insure adequate notice and opportunity for bidding. The maturity schedule of the series being sold shall be set forth in the Notice of Sale . Each Notice of Sale shall contain such terms and provisions as the City Manager (after consultation with bond counsel and the fiscal agent) shall determine ought to be included in order to obtain the most favorable bids . : VOL 880 921 Page 4 The terms of the sale of each series and the designation of the Trustee and Paying Agent must be approved by the Board of Directors by resolution . In each such resolution the Board of Directors shall set forth (in addition to other pertinent matters) the details of the bonds as they are being issued , including principal amount , date of the bonds , interest payment dates , principal payment dates , numbers , denominations , rates of interest , a schedule reflecting the annual principal maturities , the semiannual interest requirements and the total requirements , and applicable redemption provisions . All such details may vary among the different series but the bonds of all series , regardless of when sold and delivered and regardless of such differing terms shall rank on a parity of security . In connection with determining the overall amount of bonds to be sold and issued and the amount to be sold and issued in each series , the City covenants that bonds of the respective series will be sold and issued only if , at the time of the sale and issuance of each series , revenues to be derived from the operation of the System from the rates then in effect (the present rate structure is that fixed by Ordinance No . 1760 , adopted and approved. on September 9 , 1970) will be sufficient as determined by the Board . of Directors at the time (which determination shall take into consideration projections by an independent consulting engineer of revenues to be derived from any new customers by virtue of improvements to be constructed and revenues to be derived from any increases in water and sewer rates) to pay operation and maintenance expenses and leave a balance reflecting such coverage of debt service requirements of outstanding bonds and the bonds then proposed to be issued as shall be determined by the Mayor (after consultation with bond counsel and the fiscal agent ) to be necessary for favorable marketability of the bonds . A minimum coverage shall be specified in the Notice of Sale of the Series A Bonds and later determinations to be inserted in subsequent Nct ices of Sale may exceed but cannot be lower than that specified in the initial Notice of Sale . Also , as a condition precedent to the issuance of each series , the Board must determine and find in the implementing resolution that the requirements for parity bonds are satisfied . VOL OHOO f Page 5 Section 3 . That 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 bonds may be executed by the facsimile signature of the Mayor and the interest coupons attached to the bonds shall be executed by the facsimile signature of the Mayor , with the facsimile signature of the Mayor to have the same force and effect as if personally signed by him . The bonds must be executed by the manual signature of the City Clerk . The bonds , together with interest thereon , shall be payable solely out of the Bond Fund (hereinafter referred to) and shall be a valid claim of the holders thereof only against the Bond Fund and the revenues pledged to the Bond Fund , which revenues (net revenues de- rived 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 (of all series) and the outstanding bonds and shall be used in accordance with the provisions of Resolution No . 7 - 63 , Ordinance No . 1508 , Ordinance No . 1653 and this Ordinance . The principal and interest of the bonds shall not constitute an indebtedness of the City within any constitutional or statutory limitation . Section 4 . That .the bonds and coupons shall be in substantially the following form (the form is for Series A and there will be appropriate changes to reflect the details of the various series ) , and the Mayor and City Clerk are hereby expressly authorized and directed to make all recitals contained therein: pp VOL UUO Ow iJNJ '19' D S'1'AT1. S OFAIAIERIGA STArfl ' OF ARKANSAS COUN 'iY OF WASHINGTON CITY OF FAY]XTEVILLE . % WATERWORKS AND SEWER REVENUE BOND , SERIES A No , KNOW ALL MEN BY THESE PRESENTS : That the City of Fayetteville , County of Washington , State of Arkansas (the " City " ) , acknowledges itself to owe , and for value received , hereby promises to pay to bearer , or if this bond be registered to the registered owner hereof , solely from the special fund provided as hereinafter set .forth , the principal sum of FIVE THOUSAND DOLLARS in lawful money of the United States of America on the first day of 19_, and to pay interest thereon at the rate of percent ( %) per annum from the date hereof until paid , Interest is payable 19_ , and semiannually thereafter on each 1 and 1 . Payment of principal and payment of interest evidenced by coupons shall be at the principal office of (the " Trustee " and " Paying Agent') . Payment of interest when registered as to interest , may be by check or draft mailed to the registered owner at his address reflected on the registration book of the City maintained by the Trustee . This bond is one of a series of Waterworks and Sewer Revenue Bonds , Series A , aggregating Dollars ($ ) in principal amount , numbered from 1 -A to _A , inclusive , all of like tenor and effect , except as to number , denomination , rate of interest , maturity and right of prior redemption (the " Series A Bonds " ) , issued for the purpose of paying the costs of constructing extensions , betterments and improvements to the Waterworks and Sewer System (the " System " ) , and paying the expenses of authorizing and issuing the bonds . The Series A Bonds are part of a total t Vt)L Mo 930 t k Page 7 authorized amount of up to $ 4 , 000 , 000 (the " bonds " ) being issued in series , all of which will rank on a parity of security , The bonds are issued pursuant to and in full compliance with the Coir stitution and laws of. the State of Arkansas , including particularly Act No . 131 of the Acts of Arkansas of 1933 , as amended , and Act No . 132 of the Acts of Arkansas of 1933 , as amended , and the decision of the Supreme Court of the State of Arkansas . in Harrison v . Braswell , 208 Ark . 1094 , 194 S . W . 2d 12 (1946) , and pursuant to Ordinance No . 2074 of the City , duly adopted and approved on the 23rd day of December 19 74, and an implementing resolution or resolutions (collectively referred to as the "Authorizing Ordinance " ) , and do not constitute an Indebtedness of the City within any constitutional or statutory limitation , 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 . The bonds are issued on a parity as to lien , pledge and security with an issue of Waterworks and Sewer Revenue Refunding Bonds , dated June 1 , 1963 , issued pursuant to Resolution No. 7- 63 , adopted and approved on April 8 , 1963 (" Resolution No . 7- 63 " ) and an issue of Waterworks and Sewer Revenue Bonds , Series 1966 , dated September 1 , 1966 , issued pursuant to Ordinance No . 1508 , adopted and approved on August 8 , 1966 (" Ordinance No . 1508 " ) and issued pursuant to Ordinance No . 1653 , adopted and approved on February 3 , 1969 ( " Ordinance No . 1653 " ) (collectively the " outstanding bonds " ) . An amount of System revenues sufficient to pay the principal of and interest on the bonds and the outstanding bonds is to be set aside in a special fund for that purpose identified as "Waterworks and Sewer Revenue Refunding Bond Fund " created by Section 5 of Resolution No . 7 - 63 , Reference is hereby made to the Authorizing Ordinance , and to Resolution No . 7 - 63 , Ordinance No . 1508 and Ordinance No . 1653 , for a detailed statement of the nature and extent of the security , the rights and obligations of the City , the Trustee and the holders and registered owners of the bonds and the terms and conditions upon which g I VOL Uau` O 931 Page 8 the bonds are issued , including , without limitation , the covenant of the City to maintain rates for water and sewer services which shall be sufficient at all times to produce revenues for operation and maintenance expenses , for the payment of the principal of and interest on the bonds and the outstanding bonds and to maintain the other funds (provided for in the Authorizing Ordinance and in Resolution No , 7 -63 , Ordinance No . 1508 and Ordinance No . 1653 ) at the required levels . The Series A Bonds are subject to redemption prior to maturity as follows : Notice of the call for redemption shall be published one time in a news - paper of general circulation throughout the State of Arkansas published in the City of Little Rock , Arkansas , giving the number and maturity of each bond being called , with the publication to be at least fifteen ( 15) days prior to the redemption date , and 'after the date fixed for redemption each bond so called shall cease to bear interest , provided funds for its payment are on deposit with the Paying Agent at that time . In addition , notice shall be given by certified or registered mail to the registered owner of each bond registered as to principal or as to principal and interest at the address of such owner reflected on the bond registration book of the City maintained by the Trustee as bond registrar and if all outstanding bonds shall be registered as to principal then notice by certified or registered mail to the registered owners thereof as aforesaid shall be sufficient , and it shall not be necessary to publish notice of the call , h VOL 8u0 G32 Page 9 This bond may be registered as to principal or as to principal and interest and may be discharged from such registration , in the manner , with the effect and subject to the terms and conditions endorsed Hereon . Subject to the provisions for registration endorsed hereon , nothing contained in this bond or in the Authorizing Ordinance shall affect or impair the negotiability of this bond , and this bond shall be deemed a negotiable i. nstrumcnt under the laws of the State of Arkansas and issued with the intent that the laws of the State of Arkansas will govern its construction . This bond shall not be valid until it shall have been authenticated by the Certificate hereon duly signed by the Trustee . IT IS HEREBY CERTIFIED , RECITED AND DECLARED that all acts , con- ditions and things required to exist , happen and be performed precedent to and in the issuance of the Series A Bonds have existed , have happened and have been performed in due time , form and manner as required by law; that the indebt - edness represented by the bonds does not exceed any constitutional or statutory limitation; and that sufficient revenues have been pledged to and will be set aside into the special fund provided in the Authorizing Ordinance for the purpose of paying the principal of and interest on the bonds . IN WITNESS WHEREOF , the City of Fayetteville , Arkansas , has caused this bond to be executed in its name by the facsimile signature of the Mayor , the manual signature of the City Clerk , and its corporate seal to be affixed , and has caused the interest coupons hereto attached to be executed by the facsimile signature of its Mayor , all as of the first day of 1g ' CITY OF FAYETTEVILLE , ARKANSAS ATTEST: By (Facsimile Signature ) %��niwc-n.v Mayor City Clerk (SEAL) VOL SU20 ZIQJ i (i'orm Of Coupon ) No , $ On the first day of ' 19_, the City of: Fayetteville , Washington County , Arkansas , unless the bond to which this coupon is attached is paid prior thereto , hereby promises to pay to bearer , solely from the special fund referred to in the bond , DOLLARS in lawful money of the United States of America , at the principal office of Arkansas , being six (6 ) months interest then due on its Waterworks and Sewer Revenue Bond , Series A , dated 19 and numbered i CITY OF FAYETTEVILLE , ARKANSAS By (Facsimile Signature ) Mayor r _ (On each bond shall appear the following : ) CERTIFICATE This is one of the bonds of the City of Fayetteville , Arkansas , described herein , designated Waterworks and Sewer Revenue Bonds , Series A . I By Authorized Signature VOL 8FU ; PROVISIONS F'Olt RCG:IST1U110N AND REGOiNVERS1.0N This bond may he registered as to principal alone on boo'r. s of the City , kept by the Trustee as bond registrar , upon presentation hereof to the bond registrar , which shall make mention of such registration in the registration blank, below , and this bond may thereafter be transferred only upon an assign- ment duly executed by the registered owner or his attorney or legal representative ` in such form as shall be satisfactory to the bond registrar , such transfer to be made on such books and endorsed hereon by the bond registrar . Such transfer may be to bearer , and thereafter transferability by delivery shall be restored , but this bond shall again be subject to successive registrations and transfers as before . The principal of this bond , if registered , unless registered to bea ler , shall be payable only to or upon the order of the registered owner or his tlegal representative , Interest accruing on this bond will be paid only on presentation and surrender of the attached interest coupons as they respectively become due , and notwithstanding the re.gistration of this bond as to principal , ' the appurtenant interest coupons shall remain payable to bearer and shall continue to be transferable by delivery; provided , that if upon registration of this bond , or at any time thereafter while this bond is registered in the name of the owner , the unmatured coupons attached evidencing interest to be thereafter paid hereon shall be surrendered to said bond registrar , . a statement to that effect will be endorsed hereon by the bond registrar and thereafter interest evidenced by such surrendered coupons may be paid by check or draft of the bond registrar at the times provided herein to the registered owner of this bond by mail to the address shown on the registration books . This bond when so converted into a bond registered as to both principal and interest may be re - converted into a coupon bond at the , written request of the registered owner and upon presentation at the office of said bond registrar , Upon such reconversion t .VOL UUQ �7w .. t , i. the coupons repre ::c: nting the int<: rest to becomo duo ' Lhercafte: r to Lh(1 date of maturity will again be attached to this bond and a statement will be endorsed hereon by the bond registrar in the registration blank below whether it is then registered as to principal or payable to bearer , Manner of Signa Lure of Date of. Registration n Name of. Registered Owner : Registration Bond Registrar .. VOL Ko 9136