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HomeMy WebLinkAbout1965-06-21 MinutesThe City Council of Fayetteville, Arkansas, mem n'regular session on Monday, June 21, 1965, at its regur meeting place at 7:30 P. M. CST. 11 Present: Mayor Guy E. Brown, City Clerk George J. Davis, City Controller, City Engineer W. C. Smith, CityfAttorney Hugh Kincaid, Chief of PoAiae Hollis Spencer, and Aldermen: Laverne Heflin, Arnold Christie, Edmond Watson, Wells Bone, Grover C. Thomas, Ellis Burgin, George Faucette, and Carter Short. Absent: None. The mihutes of the regular meeting on Monday, June 7, 1965, a copy of which had previously been mailed to each of the Aldermen, were approved as written. The City Coatroller reported that, pursuant to prior advertisements for bids heretofore published, the Bond Committee had received and opened bids at 1:30 P.M. CSE, on June 21, 1965, and since only one bid le of was received, which was from T. J. Raney & Sons, L$ttle Rock, Arkansas, the Committee had recommended the tation sale of the SANITATION IMPROVEMENT REVENUE BONDS to T. J. Raney & Sans, as outlined in their bid and spread in the minutes. Alderman Short moved to accept the bid of T. J. Raney & Sons, Little Rock, Arkansas, on the Sanitation Improvement Revenue Bonds and that the Mayor and City Clerk be and they are hereby authorized to sign the Acceptance as•spread in the minutes of this meeting. The motion was seconded by Alderman Heflin and passed unanimously. Bid BID AND ACCEPTANCE AGREEMENT The Honorable Mayor;and City Council City of Fayetteville Fayetteville, Arkansas I Gentlemen: For your issue of $200,000 CITY OF FAYETTEVILLE, ARKANSAS SANITATION IMPROVEMENT REVENUE BONDS, dated July,l, 1965, and bearinginterest at the rate of 3Y .per annum, and maturing July 1, 1966, through July 1, 1980 inclusive, we will pay you 100 cents on the dollar plus accrued interest to date.of delivery. These bonds are 'more fully described in gour official Notice of Sale, which Notice is hereby made a part of this contract. These.bonds are to be delivered to us•within,0 days and thereafter at our option. We enclose our good faith check'in the amount of $4,000.00 made payable to the City of Fayetteville. This check is to be held uncashed pending delivery of the bolds. In the event we fail to comply with the terms of this agreement, this check is to be cashed as your full and complete liquidated damages, otherwise it is to be returned to us when you are paid for the bonds. This agreement is made subject to our receiving the unqualified legal approving opinion of Smith, Williams, Friday and Bowen, Attorneys, Little Rock, Arkansas as to the legality of these bonds. Respectfully submitted, T.J. Raney & Sons (s) By John F. Gorma Accepted THIS THE 21st. DAY OF JUNE, 1965. CITY OF FAYETTEVILLE FAYETTEV,JLI.E, ARKANSAS BY MAYOR The Mayor stated that consideration should be given to an ordinance providing for a bond issu d to finance improvements to the City's sanitation facilities. This was a matter with which the Cc ance was familiar and after a discussion, Alderman Short introduced an ordinance entitled: 1449 "AN ORDINANCE PROVIDING FOR THE ISSUANCE OF SANITATION IMPROVEMENTSREVENUE BONDS: SETTING UP CERTAIN FMM$ PRESCRIBING OTHER MATTERS RELATING THERETO; NAND DECLARING AND EMERGENCY" and the City Clerk read the ordinance in full. Alderman Short, seconded by Alderman Thonas, moved that the rule requiring'the reading of an ordinance or resoittion 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 rooted aye: Heflin, Christie, Watson, Bone, Thomas, Burgin, Faucette, and Short, and the following voted nay: None. Thereupon the Mayor declared that at least two-thirds of allmembdrs of the Council 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. Alderman Short, seconded by Alderman Thomas then moved that the rule requiring the reading of an ordinance in full on three different days be fubther 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: Heflin, Christie, Watson, Bone, Thomas,Burgin, Faucette and Short, and the following voted nay: None. The Mayor declared that at least two-thirds of all members elected to the Council 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. Alderman Short, seconded by Alderman Thomas, moved that the ordinance be adopted. The question was put by the Mayor on the adoption of the motion and the roll being called, the following voted aye: Heflin, Christie, Watson, Bpne, Thomas Burgin, Faucette, and Short, and the following voted nay: None. 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. 1449. ORDINANCE N0, 1449 AN ORDINANCE PROVIDING FOR THE ISSUANCE OF SANITATION IMA?OVEMENT REVENUE BONDS;SETTING UP CERTAIN FUNDS; HE.SCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY. Ordinance No.1449 WHEREAS it has been found by the City Council of the City of Fayetteville, Arkansas, (called "City") that the garbage and rubbish collection, hauling and disposal service (called 4. "Sanitation System or "System") presently serving the City is inadequate for the needs of the City and its inhabitants; and WHEREAS the City Council has determined that the Sanitation System should be improved and extended and has accepted a special report and estimated the costs of the needed improvements and extensions, which report is on file with the City Clerk and to which reference may be made by any interested person, and which in general callg for the following improvements: purchase of trucks, containers and other equipment necessary for the collection of garbage and rubbish, construction Ordinance of an incinerator for the disp6sal, purchase of requipment for insceticidal fogging for the control No. 1449 of f6ies and other insects, construction of an animal shelter, purchase of trucks, vehicles and other equipment nectessary for the supervision of the Sanitation System(which will be hereinafter referred to as the "improvements"), all at an estimated cost of $200,000.00, including legal andobbbevenecessary :b m 1Ja mqmmndmd= of ikz Sxxikxkixx x3ad=dpddcmk xkU kxxkK nxexpenses incidental to the purchase of and construction.of the improvements and tot he issuance of revenue bonds; and WHEREAS the City can obtain funds with which to pay for said impovements by the issuance of. revenue bonds to be repaid from samitation service fees; and WHEREAS the City has made arrangements for the sale of its $200,000 City of Fayetteville, 312% Sanitation Improvement Revenue Bonds dated Julyl, 1965 and due on July 1 in each of the years 1866 to 1980, inclusive, to T.J. Raney & Sons, Little Rock, Arkansas (called "purchaser), and the purchaser has elected to convert said bonds to an issue of $205,400 in bonds bearing interest at the rates of 3% and 3�% per annum, and maturing as hereafter set forth; NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Fayetteville, Arkansas: SECTION I. That the purchase and erection of said improvements be, and the same are hereby approved, ratified, and confirmed. SECTION II. That the sale of $200,000 in bonds bearing interest at the rate of 3j% y maturing as set forth above, to T.J. Raney & Sons, Little Rock,"Arkansas, and the omnversion of the said bonds to an issue of $205.400 in bonds bearing interest at the rates of 3% and 31% per annum, as set forth below, be, and the same are hereby, approved and confirmed. SECTION III. That there are hereby authorized and ordered issued City of Fayetteville, Arkansas Sanitation Improvement Revenue Bonds in the total amount of $205,400, the proceeds of the sale of which are necessary to pay for said improvements, The bonds shall be dated July 1, 1965, and interest shall be payable semiannually on January 1 andJuly.l of each year commenting January 1,1966. The bonds shall be numbered conseciltively from 1 to 206, inclusive, shall beatni.Lherdehomination of $1,000 each, except Bond No. 11 which shall be in the denomination of $400. Bonds Nos. 1 to 125, inclusive, shall bear dnterest at the rate of 3% per annum andBonds Nos. 126 to 206, inclusise bear interest at the rate of 3k% per annum, which shall be evidenced by interest coupons, and the prinicipal aid interest shall be payable in lawful money.of the United States of America upon presentatio=i of the bond or proper coupon at the office of Worthen Bank & Trust Company, Little Rock, Arkansas. The bond dhall be negotiable coupon bonds payable to bearer and shall mature on July 1, of each year as follows, but shall be callable for payment prior to maturity as hereafter sbt forth: YEAR BOND NOS. AMOUNT 19 1 - 11 10,400 1967 12 - 22 119000 1968 23 - 34 12,000 1969 35 - 46 120000 . 1970 47 - 58 129000 1971 59 - 71 139000 1972 72 - 84 13,000 1973 85 - 97 13,000 1974 98 -111 14,000 1975 112 -125 14,000 1976 126 -140 159000 1977 141 -155 '15,000 1978 156 -171 169000 1979 172 -188 179000 1980 189 -206 180000 by whicSE01091s4e That the Cit has examined the computation by which an issue of $200,000 in bonds bearing interest at the rate of 3 maturing in the years 1966 throe h 1980 has been converted town issue of $205,400 in bonds bearing interest at the rates of 3% and 36 per annum, as above set forth and has found that by kirtue thereof the City will receive no less and pay no more than it would re- ceive andpay if the bonds were not converted, SECTICN 5,. That the bonds shall be executed on behalf of the City bt the Mayor and City Clerk with either the facsimile of manual signature of the Mayor and the Manual signature of the City Clerk) and shall have impressed thereon the seal of the city. Interest coupons attached to the bonds shall be signed by the facsimile signature of the Mayor, and the facsimile efgnature of the Majror lithographed or printed on the bonds or coupons shall have the same force and effect as if he had signed each of said bonds and coupons. The bonds together with interest thereon shall be payable solely out of the Sanitation Revenue Bond Fund, as hereafter set forth, and shall be a valid claim of the holders thereof only against such fund and the amount of revenues pledged to such funds, which revenues are hereby pledged and mortgaged in an amount sufficient to provide for the equal and ratable payment of said bonds. The bonds and interest thereon shall not constitute an indebtedness of the City within any constitutional or statutory limitation. SECTION 6. That the bonds and coupons shall be in substantially the following form and the Mayor and City Clerk are hereby expressly authorized and directed to make all recitals contained therein: UNITED STATES OF AMERICA STATE OF ARKANSAS COUNTY OF WASHINGTON CITY OF FAYETTEVILLE SANITATION IMPROVENT REVENUE BOND No. $ KNOW ALL MEN.BY THESE PRESENTS: That the City of Fayetteville, County of Washington, State of Arkansas, acknowledges itself to owe, and for value received, hereby promises to pay to bearer, solely from the special fund provided as hereinafter set forth, the principal sum of DOLLARS in lawful money of the United States of America on the first day of July, 19 , and to pay solely from said special fund interest hereon at the rate of per cent ( %) per annum fray date, semiannually on the first days of January and July, commencing January 1, 1966, upon presentation and surrender of the annexed coupons as they severally become due. Both principal and interest on this bond are made payable at the princip;rl office of Worthen Bank & Trust Company, Little Rock, Arkansas This bond is one of an issue of two hundred stx (206) revenue bonds, aggregating Two Hundred Five Thousand Four Hundred Dollars ($205,400), dated July,l, 1965, and numbered from one (1) to two hundr six (206), inclusive, all of like tenor and effect except as to number, denomination, rate of interest maturity and right of prior redemption, issued for the purpose of acquiring and constructing Sanitation System Improvements(described in the authorizing ordinance) and paying necessary expenses incidental ther< 410 This bond and the issue of which it forms a part are issued in full compliance with 1"3thel constitution and laws 6f the State of Arkansas, and pursuant to Ordinance No. of the City Council of Fayetteville, Arkansas, duly adopted and approved on the 26th day of April, 19¢5 (called "authorizing ordinance"), and do not constitute an indebredness of the City of Fayetteville within any constitutional or statutory limitations, The bonds are not general obligations of the City but are special obligations payable solely from net revenues ddrived from the Sanitation System(defined in the authorizing ordinance)whi.ch have been duly pledged to the Wment of the principal of and interest on the bonds. A sufficient amount of the net revenues are to be set aside as e special fund identified as the Sanitation Revenue Bond Fund, created by the authorizing ordinance Ordinance and used solely for the payment of the principal of, interest on and paying agent's fees in 1449 connection with the bonds. Reference is hereby made to the authorizing ordinance for a detailed statement of the revenues pledged for the payment of the bonds, the nature and extent of the security for the bonds, and the rights and obligations of the City, the Trustee and the bond- holder. The City has fixed and has covenanted and agreed to maintain rates for the services of the Sanitation System which shall be sufficient at all times to provide for the proper and reason- able expenses of operation and maintenance of the Sanitation System, the maintenance of a separate depreciation Fund for necessary replacements to the Sanitation System, and to provide 150% of the maximum amount that will become due in any year for principal, interest and paying agent's fees on all outstanding bonds payable from the revenues of the Sanitation System. This bond shall be negotiable under the laws of the State of Arkansas shall govern the construction thereof. The bonds shall be callable for payment prior to maturity in inverse numerical order at par and accrued interest as follows: from the unexpended proceeds from the sale of the bonds of thio ssue and from surplus revenues of the Sanitation System on any interest payment date; from funds from any source on any interest payment date on.and after July 1, 1970. Notice of the call for redemption shall bepublished 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 of and maturity of each bond being called, with the publication to be at least fifteen (15) days prior to the Pedemption date, and after the date filed for redemption each bond so called shall cease to bear interest, provided fundes for its payment are on de- posit with the paying agents at tha4 time. This bond shall not be valid until it shall have been authenticated by the certificate hereon.duly signed by Worthen Bank & Trust Company, Little Rock, Arkansas, Trustee. IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required to exist, happen and be performed precedent to andin the issuance of this bond have existed, have happened and have been performed in due time, form and manner, as required by law; that the indebtedness represented by this bond and the issue of which it forms a part does not exceed any constitutional or statutory limitalons; and that sufficient of the revenues de- rived from the operation of the Sanitation System have been pledged to and will be set aside into said special fund for the payment of the principal of andinterest of the bonds. IN WITNESS WHEREOF the City of Fayetteville, Arkansas, by its City Council, has caused t5ms bend to be signed by the facsimile dignature of the Mayor and the manual signature of the City Clerk, and sealed with the corporate seal of said City, and has caused the interest coupons hereto attached to be executed by the facsimile signature of the Mayor, all as of the first day of July, 1965, CITY OF FAYETTEVILLE, ARKANSAS 1 0 AATTEST: CITY.CLERK (SEAL) (Form of - Coupon) BY (s) (FACSIMILE SIGNATURE.) MAYOR $ N0. January On the first day of July, 19 , the City of Fayetteville, Washingt< County, Arkansas, unless the bond to which this coupon is attached is paid prior thereto, herel promises to pay to bearer, solely out of the funds specified in the bonds to which this coupon is attached. . in lawful money of the United States of America at the principal office of Worthen Bank& Trust Company, Little Rock, Arkansas, paying Agent, being six (6) months' interest then due on its Sanitation Improvement Revenue Bond dated July 1, 1965, and numbered CITY OF FAYETTEVILLE$ ARKANSAS By, (Facsimile Signature) On each bond shall appear the.following. ' CERTIFICATE . Worthen Bank & Trust Company, Little Rock, Arkansas, hereby certifies that this is one of a series of bonds described herein aggregating $205.400 numbered from 1 to 2061 inclusive, all of like tenor and effect as to number, denomination, rate of.interest, maturity and right of prior redemption. WORTHEN BANK & TRUST COMPANY LITTLE ROCK, ARKANSAS .e; By Authorized Signature SECTION 9. SANITATIOAT FUND. All revenues derived from the operation of the Sanitation System, shall be paid into a special fund which is hereby created and designated "Sanitation Fund". Such revenues so deposited in the Sanitation Fund shall be applied to the Operation and Maintenance Fund, the Sanitation Revenue Bond Fund andthe Sanitation Depreciati Fund and shall be used only as authorized by this ordinance. HU SECTION 10, Sanitation System Operation and Maintenance Fund. There shall be paid by the treasurer from the Sanitation Fund into a fund which is hereby created and designated "Sanitation System Operation and Maintenance Fund" (sometimes called "Operation and Maintenance Fund"), beginning on the first business day of the month immediately following the month in which the bonds are delivered and continuing on the first business day of each month thereafter while any of the bonds of this issue shall be outstanding, an amount sufficient to pay the reasonable andnecessary monthly expenses of operation, re- pair and maintenance of the System for such month and from which disbursements shall be made only for those purposes. Fixed annual charges such as insurance premiums and the cost of major repairs and maintenance expenses may be computed and set up on an annual basis and one -twelfth (1/12) of the amount thereof may bp paid into the Sanitation System Operation and Maintenance Fund each month. Ordinance No. If in any month for any reason there shall be a failure to transfer and pay the required amount into 1449 said fund, the amount of apydasasmA deficiency shall be added to the amount otherwise required to be transferred and paid into said fund in the next succeeding month. If any fiscal year a surplus shall be accumulated in the Sanitation System Operation and Maintenance Fund over and above the amount which shall be necessary to insure the prompt payment of the reasonable and necessary costs of operation, repair and mzic maintenance of the System, such surplus may be transferred and deposited in the Sanitation Revenue Bond Fund (hereafter created) as the Council may `designate; provided, however, that any ouch transfer into the Revenue Bond Fund(Sanitation) ; provided, however, that any such transfer into the Sanitation Revenue Bond Fund shall be in addition to all other payments required to be made into•said fund. SECTION 11. Sanitation Revenue Bond Fund. After the required payments into the SanitationSystem Operation and Maintenance Fund, there shall be paid by the Treasurer from the Sanitation Fund into a fund which is hereby created and designated "Sanitation Revenue Bond Fund", the sums in the amounts and at the times hereinafter stated for the purpose of providing funds for the pay- mentof the principal of andiinterest on the bonds herein authorized and the paying agent's fees, as they mature, and as a reserve for contingencies. The principal andinterest matures according to the following schedule: INTEREST rV.. a -a y av,yvv /,yvc.c/ J,ivc•. c/ .rl1v, f.+V.Jv 1977 12-22 11,000 39026.25 3,026.25 17,052.50 1968 23-34 12,000 22861.25 2,861.25 17,722.50 1989 35-46 122000 2,681.25 2,681.25 17,362.50 1970 47-58 12,000 2,501.25 23501.25 17,002.50 1971 59-71 13,000 2,321.25 2021.25 17,642.50 1972 72-84 139000 2,126.25 2,126.25 179252.50 1973 85-97 13,000 1,931.25 1,931.25 162862.50 1974 98-111 14,000 1,736.25 10736.25 17,472.50 1975 112-125 149000 1,526.25 1,526.25 17,052.50 1976 126-140 15,000 1016.25 1,316.25 17,632.50 1977 141-155 15,00 12072.50 1,072.50 17,145.00 1978 156-171 16900 828.75 828.75 17,657.50 1979 172-188 17,00 568.75 568.75 18,137.50 1980 189-206 18,000 292.50 292.50 18,585.00 There shall be paid by the Treasurer iron the Sanitation Fund into the Sanitation Revenue Bond Fund beginning on the first business day of the month immediately following the month in which the bonds are delivered, and continuing on the first business day of each month thereafter until all otrtstandieg bonds of this issue with interest thereon have been paid in full, or provision made for such payment, a sum equal to one-fifth(1/5) of the next installment of interest and one-tenth (1/10) of the next installment of principal and an amount sufficient to provide for the paying agent's fees; provided, however, that when there shall have been accumulated in said Sanitation Revenue Bond Fund a re- serve for contingencies in the amount of $17,000, so long as said reserve for contingencies is maintained in that amount the monthly payments may be reduced to one-sixth (1/6) of the ne xt installmebt of the interest and one -twelfth (1/12) of the next installment of principal and an amount sufficient to provide for the paying agent's fees. If the revenues of the System are insufficient to make the requirements payment on the first business day of the following month into the -Sanitation Revenue Bond Fund, then the amount of any such deficiency in the payment made shall be added to the amount otherwise required to be paid into the Sanitation Revenue Bond Fund on the first business day of the next -month. If for any reason the Treasurer shall fail a t any time to make any of the required payments into the Sanitation Revenue Bond Fund, any sums then held as a reserve for contingencies shall be used to the extent necessary in the payment of the principal of andinterest on the bonds, but such reserve shall be reimbursed from the Sanitation Fund before any of the moneys in the Sanitation Fund shall be used for any other purpose except for making the payments hereinabove required to be made into the Operation and Main -1 tenance Fund and the Sanitation Revenue Bond. Fund. If investments of moneys in the reserve for con- tingencies increase it above $17,000, the excess over $17,000 may be transferred to the Sanitation Revenue Bond Fund and used as other moneys therein may be used.. The moneys in the reserve for con- tingencies shall be used solely as in this paragraph provided. When moneys held in the Sanitation Revenue Bond Fund, including the reserve for contingencies shall be amd remain sufficient to pay the principal, interest and paying agent's fees on all bonds then outstanding, the Treasurer shall not be -obliged to make any further payments into -the Sanitation Revenue Bond Fund. It shall be the duty of the Treasurer to withdraw from the Sanitation Revenue Bond Fund at least ten (10) days before the maturity date of any bond or interest coupon issued hereunder Ahd to deposit with the paying agent an amount equal to the amount of such bond or coupon for the sole purpose of paying the same, together with the paying agent's fees, and no withdrawal of funds from the Sanitation Revenue Bond Fund shall be made for any other purpose except as otherwise authorized in this ordinance. Such deposit shall be at the sole risk of the City and shall not operate as a payment of the bonds or coupons until so applied. If a surplus shall exist in the Sanitation Revenue Bond Fund over and above the amount necessax to insure the prompt payment of the principal of, 'interest on and paying agent's fees in connection with the bonds, as the same become due, and to maintain the reserve for contingencies in the required amount, the surplus may be used to redeem the bonds prior to maturity. The bonds of this issue shall be specifically secured by a pledge of all the Rk net revenues of the System (being gross revenues less reasonable operation and maintenance expenses of the System) Said pledge in favor of the bonds is hereby irrevocably made according to the terms of this ordinance; and the city and its officers and employees shall execute, perform and carry out the terms thereof in strict conformity with the provisions of this ordinance. SECTION 12. Sanitation Depreciation Fund. After making the required payments into the Operation and Maintenance Fund and the Sanitation RevenueBend Fund, there shall be paid by the Treasurer from the Sanitation Fund into a fund, which is hereby created and designated "Sanitation Depreciation Fund", on the first business day of the month immediately following the month invhich the bonds are delivered and continuing on the first business day of each month thereafter while any of the bonds of His issue are outstanding, the sum of $2,083.33. The moneys in the Sanitation Depreciation Fund shall be used salelk for the purpose of paying the cost of peplacements made necessary by the depreciation of the system, except that moneys therein may be used tolpay the principal of and interest on the bonds as they mature in the event there are nl other moneys available therefor. If in any fiscal year a surplus shall be accumulated in the Sanitation Depreciation Fund over and nance above the amount necessary to defray the cost of the probable replacements during the then current fiscal 1449 year, and the next ensuing fiscal year, such surplus may be transferred and raid into the Sanitation Revenue Bond Fund; provided, however, that such payments into the Sanitation Revenue Bond Fumd shall be in addition to all otherpayments hereinbefore required to be made into the Sanitation Revenue Bond Fund. SECTION 13. That any wrplus in the Sanitation Fund, after making full provision for the operation and Maintenance Fund, the Sanitation Revenue Bond Fund and the Sanitation Depreciation Fund, as herein provided, may be used for calling bonds for payment prior to maturity in accordance with the provisions herein set forth, or for any other lawful municipal purpose. SECTION 14 That payments from all funds shall be made by check or voucher sighed by the Treasurer and one other designated by the City. The checks or Vouchers shall be drawn on thedepository with which) the moneys in the particular fund shall be deposited, and each such check or voucher shall briefly specify the purpose of the expenditure. SECTION 15• That the City hereby agrees that all payments on the bonds and interest shall be made ohly through the paying agent. All bonds.paid or purchased either at or before maturity shall be cancelled when such payment or pfirchase is made, together with all unmatured coupons appertaining thereto, and held by the Treaaurer, and shall not be reissued. All uppaid interest coupons maturing on or prior to the date of such payment or purchase shall continue to be payable to be the respective bearers thereof. SECTION 16. That as long as any of the bonds authorized and issudd under and pursuant to the provision of this ordinance are outstanding, the City shall not issue or attempt to issue any bonds, not shall the City assume any other indebtedness, which shall have a priority of lien on the revenues of the System over the lien securing the bonds of this issue. However, nothing in this ordinance shall be construe to prevent the issuance by the City of additional bonds for improvements to the System, provided that the City shall not authorize or issue any such additional bonds ranking on a parity with the outstanding bnnds of this issue, unless there shall have been procured and filed with the trustee.a statement by an inde- pendent Certifidd Public. Accountant not in theregular employ of the City reciting the opinfiln based upon necessary investigation that net revenues of the System (defined as gross revenues of the System less the operation and maintenance expenses of the System and less the required deposit in the Depreciation Fund as determined by the the independent Certified Public Accountant)for the fiscal year immediately preceding the fiscal year in which it is proposed to issue such additional bonds, plus any increase in annual net revenues that will result by virtue of change in rates or additional or extended services of the System, as determined by.the independent Certified Public Account, shall equal 150% of the maximum amount that will come due in any year thereafter for principal, interest and paying agent's fees on the bonds then out- standing and the bonds then proposed to be issued. SECTION 17. That it is covenanted and agreed by theCity with theholders of the bonds that the City will faithfully and punctually peiform all duties with reference to the System required by this ordinance and by the Constitution and laws of the State of Arkansas, including the continual charging and collecting of suefiement rates for the services of the System, as hereinabove referred to, and the segregating and depositing of the funds as provided herein. SECTION 16. That the bonds authorized hereby and issued hereunder shall be callable for payment prior to maturity in accordance with the terms set out in .the bond form. SECTION 19. That the City will keep proper booksoof accounts and records in which complete and correct entries shall be made of all transactions relating to the operation of the System, and such books shall available for inspection by the holder of any of.the bonds at reasonable times and under reasonable circumstances. The City agrees to have these records autited by an independent Certified Public Accounta as and when the Trustee may request such audit. In the event theCity fails or refuses to make the audit, thee Trustee or any holder of the bonds may have the audit made, and the cost thereof shall be charged against the Sanitation Fund. SECTION 20. That the City covenants and agrees that it will cause the Sanitation System to be operated ink an efficient and business like manner at reasonable cost. The trucks, equipment and other -property of the System, both real and personal, shall be maintained and replaced as necessary to insure the continued operahion of the System, and the production of revenues therefrom, and the loss from fire, lightning, winds or any other cause, of any property or equipment essential to the revenue-producing capacity of the System shall be promptly repla ced out of any insurance proceeds covering said loss, and if such proceeds shall1be insufficient for such purposes, the deficiency shall be supplied first, from moneys in the Sanitation Depreciation Fund, and second, from moneys in the Operation and Maintenance Fund, and third, from surplus moneys in the Sanitation Fund..The City Shall keep all insurable properties of the System insured by fire and extended coverage insurance,at least to the extentnormally covered by a private company engaged in a similar operation and shall furnish evidence of such insurance to the Trustee. SECTION 21. That the City Covenants and agrees that, except as herein provided, so long as any bonds authorized hereby are outstanding it will not mortgage, pledge or otherwise encumber, the System, or any of its revenues, equipment or property, and will not sell, lease or otherwise dispose of any substantival portion of the same, without making provision for sufficient replacements to insure the continued efficient operation of the System. SECTION 22. That if there be any drfault in the payment of the principal of or interest on any bond of this issue, or if the City defaults in any Sanitation Revenue Bond Fund requirement or in the performahe of any of the other covenants contained and set forth in this ordinance, the Trustee may, andupupon the written request of the holders of not less than ten per cent (10%) in principal amount of the bonds of this issue then outstanding shall, by proper suit compel the performance of the duties of the officials of the City. And, in the case of a default in the payment of the principal of and interest on any of the out- standing shall, apply in a proper action to a court of competent jurisdiction for the appointment of a receiver to administer the System on behalf of the City and the bondholders, with power to charge and cone (or by mandatory injunction or otherwise to cause to by charged and collected) rates sufficient to provide for the payment of the expenses of operation, repair and maintenance and to pay any bonds and interest outstanding and to apply the revenue in conformity with the laws of Arkansas and with this ordinance, When all defaults in principal and interest payments have been cured, all the custody and operation of the System shall revert to theCity. If the Trustee shall fail to carry out,said duty, then the holders of not less than ten per cent (10%) in principal amount of the bonds of this issue then outstanding may institute any suit, action, mandamus or other proceeding.in equity or in law for the protection or en- forcement of any right under this ordinance, such action to be in the name of one or more bondholders for the benefit of all holders of the outstanding bonds and coupons, and the individual rights of action of bondholders are restricted by this ordinance to the rights and remedies herein provided. No delay or omission of the Trustee or of any holders of the bonds to exercise any right or power accahedlupon any default shall impair any such right or power or shall be construed to be a waiver of any such default or an acquiescence therein; and every power and remedy given by this ordinance to the Trustee and to the holders of the bonds, respectively, may be exercised from time to time and as often as may be deemed ex- pedient . SECTION 23. (a) That when the bonds have been executed by the Mayor and City Clerk and the Seal of the City impressed as herein provided, they shall be delivered to the Trustee, which shall authenticate them) and deliver them to thepurchaser upon payment of cash to theTrustee of the purchase price and accrued in] terest from July 1, 1965 to the date of delivery. �) 1 SECTION 23 cont. (b) The Trustee shall deposit.the accrued interest in the Sanitation Revenue Bond Fund. (c) The Trustee shall remit the remaining balance of the proceeds of the sale of the bonds in a special account designated "Construction Fund" with a.depository that is a member of the Federal Deposit Insurance Corporation to be designated in a letter of instructions delivered to the Trustee, signed by the Mayor, at the time of the closing of the bond issue. The moneys in the Constructsc Fund in excess of the amount insured by the Federal Deposit Insurance Corporation shall be continuously secured by bonds or other direct or fully guaranteed obligations of the United States of America, except that any moneys invested as hereafter authorized need not be so secured. (d) The moneys in the Construction Fund shall -be disbursed solely in payment for the improvements as hereinabove defined, including expenses nechssary and incidental thereto and to the issuance of the bonds. (e) That when the construction of the improvements shall have been completed, as evidenced by a letter stating, signed by the Mayor and City Clerk, the depository with which the Construction Fund is deposited shall pay or transfer any remaining balance pursuant to said letter for the sold purpose of calling the bonds of this issue for payment prior to maturityr,l or if insufficient to call one or more bonds, for transfer into the Sanitation Revenue Bond Fund. SECTION 24. Moneys held for the credit of any fund referred to in this ordinance may, at the option of the City, be invested and reinvested pursuant to direction of the City in direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States Government, which shall mature, or which shall be subject to redemption by the holder thereof at tte option of the holder, not later than the date or dates when the moneys held for the credit of the parti- cular fund will be required for the purposes intended. Obligations so purchased as an investment of mone3 in any fund shall be placed in the custody of the Treasurer and shall be deemed at all times to be a part of such fund, and the interest accruing thereon and any profit realized from such investment shall be crec to such fund, and any loss resulting from such investment shall be charged to such fund. SECTION 25. That the provisions of this ordinance shall constitute a binding contract between the City and the holders of the outstanding bonds and coupons issued hereunder, and the City will strictly adhere to the provisions hereof. The holders of not less than seventy-five per cent(75%) in aggregate principal amount of the bonds t} -en outstanding shall have the right from time to time to consent to and approve the adoption by the City of such ofdinance supplemental hereto as shall he nesessary or desireablel for the purpose of modifying, altering, amending,adding to or rescinding in any particular any of the tern or provisions contained inthis ordinance; or any supplemental ordinance; provided, however, that nothing herein contained shall permit or shall be construed as permitting (a) an extension of the maturity of the principal of or the interest on any bond issued hereunder, or (b) a reduction in the principal amount of any bond or the rate of interest therein, or (c) the creation of a lien upon or a pledge of revenues other than expressly authorized by the appropriate provisions of this ordinance as now adopted, or (d) the creat of a privilege of priority of any bond or bonds over any other bond or bonds, or (e) a reduction in the aggregate principal amount of the bonds required for consent to such supplemental ordinance. SECTION 26. That the Trustee of -the bonds issued hereunder shall be Worthen Bank & Trust Company, Littl�ock,'Arkansas. The Trustee shall only be responsibih for the exercise of good faith and reasonabl prudence in the execution of its trust. The recitals in this ordinance and in the face of the bonds are the recitals of the City and not of the Trustee. The Trustee shall not be required to take any action as Trustee unless it shall have been requested to do so in writing by the holders not less than ten per cent (10'x) in principal amount of the bonds of this issue then outstanding and shall have been offered reasonable security and indemnity against the costs, expenses and liabilities to be incurred therein or thereby. The Trustee may resign at any time by ten (10)ndays' notice in writing to the Mayor, and the majority in value of the holders of the outstanding bonds ofthis issue at any time, with or without cause] may remove the trustee. In the event of a vacancy in the office of Trustee, either by resignation or by removal, the majority in value of the holders of the outstanding bonds of this issue.may appoint a new Trustee, such appointment to he evidenced by a written instrument or instruments filed with the City Clerk. If the majority in value of the holders of the outstanding bonds of this issue shall fail to fill the vacancy within thirty (30) days after the same shall occur, then the City shall forthwith designate a Trustee by a written instrument filed in the office of the City Clerk. The otginal Trustee and any successor Trustee shall file a written acceptance and agreement to execute the trust imposed upon it or them by this ordinance, but only upon the terms and conditions set forth in this ordinance and subject to the lbrovisions of this ordinance, to all of which the respective holders of the bonds agree. Such written acceptance shall be filed with the City Clerk, and.a copy thereof shall be placed in the bond . transcript. Any successor Trustee shall have all the powers herein granted to the original Trustee. The old Trustee upon resignation or removal shall cease to be Paying Agent and the successor trustee shall automatically become Paying Agent. EETION 27. That the provisions of this ordinance are hereby declared to be separable, and if any provision shall for any reason be held illegal or invalid such holding shall not affect the validity of the remainder of the ordinance. SECTION 28 That all ordinances and parts of ordinances in conflict herewith are herbby repealed to the extent of such conflict. SECTION 29. That it is hereby ascertained and declared that said improvements are necessary to the heals and safety of the inhabitants of the City, and that the Construction of said improvements is necessary in order to alleviate an unhealthy and unsafe condition which exists in the City. It is, therefore, declared that an emergency exists, and this ordinance being necessary for the immediate preservation of the public peace, health and safety shall take effect and be in force from and after its passage. PASSED:_ June_ 21_ _ 11965 APPROVED MAYOR C E R T I F I C A T E The undersigned, Clerk of the City of Fayettetrille, Arkansas, hereby certifies that the foregoi. pages numbered 1 to 25, inclusive, are a true and correct copy of Ordinance No. 1449, adopted at a Regular session of the Council of the City of -Fayetteville, Arkansas, held at the regular meeting time and'place of the Council in said City at 7:30 o'clock P.M., CST, on the 21st. day of June 1965 and that said ordinance is of record in Ordinance Record Book6G, p9ge 40 now in my possession. GIVEN under my hand and seal this 22nd. day of June, 1965. (SEAL) � K 1./iI, /' y' t new I Butterfield s 8 Addition toplanning S Co i ssion 1 t A INo. V t The city Planner presented a Quitclaim Deed from Cy Carney and Lettie Carney, husband and wife, for reet purposes at the new Convelesant Home on Rochier Heights. After a long discussion Alderman Burgin moved that the deed be accepted. The motion was seconded by derman Short and passed unanimously. (The above motion was later superseded by an ordinance No. 1450 )• The City Planner presented an informal plat on Butterfield 8 Addition. After a brief discussion, Alderman Burgin moved to refer this to the planning commission. Motion was conded by Alderman Thomas and passed unanimously. The City Attorney, reported that it would be necessary to pass an ordinance accepting the Deed for reet purposes, from Cy Carney and Lettie Carneyr,husband and wife, rather than a motion. The City Attorney then introduced and at the request of Council, read a proposed ordinance in its en- rety entitled, "AS ORDINANCE TO ACCEPT AND CONFIRM THE DEDICATION CF A FIFTY (50) FOOT STR= IN MMIME4 ,DITION TO THE CITY OF FAYETTEVILI.E, ARKANSAS:" Alderman Burgin moved that the Ordinance pass. The motion was seconded by Alderman Short and passed ianimously whereupon the Mayor declared the ordinance passed. ORDINANCE N0. .1450 oeyiER )4E;CIf7S I ORDINANCE TO ACCEPT AND CONFIRM THE DEDICATION OF A FIFTY (50) FOOT STREET IN �E'ADDITION TO THE CI YETTEVILLE, ARKANSAS: WHEREAS, there has been duly presented to the City Council of the City of Fayetteville, a quitclaim dee .ted June 16, 1965, and executed by Cy Carney, Lettie Carney, his wife, and Sunrise Manor inc., a cor- �ration, by its President, Cy Carney, and Secretary, Lenis Zinnamon, wherein the said grantors have grante A dedicated for a public street the following described lands situated in Washington County, Arkansas, -wit: A strip of land fifty (50) feet of uniform width for a public street running from the South Line of Rochier Street to the West Line of Paris Avenue as formerly platted and record shown upon the Plat of Rochier Heights Addition to the City of Fayettebille, Arkansas, more particularly described as a strip of land fifty (50) feet of uniform width lying East of and inside a line with the following described curbature: Beginning at the Northeast corner of Block 6 in Rochier Heights Addition to the City of Fayetteirille, Arkansas, said point being also 562.62 feet Fast and 299.84 feet South of the Northeast corner of Section 21, Township 16 North, Range 30 West of the 5th P.M., and running thence S. $98 59' West, 429.$4 feet along the South line of Rochier StSeet to the point ofbeginning for Tbh6West line of the strip of land herein conveyed; thenee S. 37 43' W., 64.00 feet to the P.C. of a 30 09' Curve to the Southeast; thence curving Southeasterly along said curve 267.64 feet to the P.T. of said Curve, this curve line being on the Weft and Outside line of right-of-way of the 50 - foot strip herein conveyed for street; thence S. 43 E., 103.45 feet for to the West line of Paris Avenue as formerly platted; thence South 62 feet to the north end of Paris Avenue at the North-West corner thereof as not platted; thence East fifty (50) feet; thence North 84 feet to the South line of Grnadview Street as formerly plated and the protion of which is now closed; thence N�rt westerly to the East line of the Street herein conveyed. It is intended and understood that said 50 -foot strip of land shall constitute a curved contiunation of Paris Avenue as the same now exists to Rocbker Street, as the same are pitted, and WHEREAS, the said grantors in said quitclaim deed further agreed to provide a temporary turn- around at the South end of the above described street suitable for vehicular access of ingress and egress until such time as the remainder of Paris Avenue is developed further to the South of the abov property, at which time said turn -around rights shall terminate and revert to grantors as their right appears, and WHEREAS, the Planning Commission of the City of Fayetteville, Arkansas, has recommended the acceptance of said lands for a public street and temporary turn -around. , NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: SECTION 1. That the City of Fayetteville, Arkansas hereby accepts and confirms the dedication of said quitclaim deed of the aeoredescribed lands for a public street and for a temporary turn- around, and hereby declares said street tend temporary turn -around to be a public streets and public temporary turn -around, and the City Council hereby assumes the care, control and jueisdicti6n of the same. SECTION 2. That this Ordinance shall be in full force and effect from and aster its passage, appre and publication. PASSED AND APPROVED this 21st. day of June, 1965. r SECTION I. That Ordinance No. 1447 of June 7, 1965, be and the same hereby amended by deleting therefrom entirely Section x of Article IV, and Section XVI of Article II• SECTION II. That the Municipal Code Corporation, publisher of the Code of Ordinances the City of Fayetteville, is hereby authorized and directed to delete Section X of Article IV, and Se of Article II e /z/y7 OF XVI ATTER , GEORGE , CITY CLERK rescind motion Alderman Burgin then moved to rescind the former motion accepting the quitclaim deed from Cy Carney, to accept and Lettie Carney, husband and wife, for street purposes. Motion was seconded by Alderman Shott and Quitclaim Deed. passed unanimously. Alderman Burgin intooduced and read a proposed ordinance in its entirety entitled," AN ORDINANCE AMENDING ORDINANCE NO. 1447 OF JUNE 7, 1965: AUTHORIZING SAID AMENDMENTS TO BE INCORPORATED IN THE FAYETTEVILLE CODE OR ORDINANCES; DECLARING AN EMERGENCY AND FOR OTHER PURPOSES." Alderman Burgin moved the ordinance be passed. The motion was seconded by alderman Faucette, and passed unanimously, whereupon the Mayor declared the ordinance passed. Alderman Bueginothen moved that the emergency clause be adopted. Ordi ance No. 1451 The motion was seconded by Alderman Watson and passed unanimously, whereupon the Mayor declared the emergency clause adopted. ORDINANCE N0. 1451. AN ORDINANCE AMENDING ORDINANCE NO.1447 OF June 7, 1965; AUTHORIZING SAID AMENDMENTS TO BE INCORPORAI IN THE FAYET^tEVILLE CODE OF ORDINANCES; DECLARING AN EMERGENCY AND FCR OTHER PURPOSES. WHEREAS, 6n June 7, 1965, the City Council adopted Ordinance No. 1447, regulating traffic upon the public streets of Fayetteville, Arkansas, and WHEREAS, certain sections of said ordinance, which the Council intended should be deleted in the final draft of said Ordinance, were inadvertently included in said Ordinance as adopte and are now in conflict with certain other provisions of said Ordinance, and WHEREAS, by Ordinance No. 1448, the City Council adopted a Code of Ordinances fox the City of Fayetteville, incorporating therein as a part of Chapter 19 of said code, the provisions of Ordinance No. 1447,madd it is desireable for the amendments to Ordinance No. 1447, a3d made by the Present Ordinance to be reflected in said Code of Ordinances. NOW, THEREFORE, BE IT ORDAINED By THE CITY COUNCIL OF THE CITY CF FAYETTEVILLE, ARKANC TOUWITY SECTION I. That Ordinance No. 1447 of June 7, 1965, be and the same hereby amended by deleting therefrom entirely Section x of Article IV, and Section XVI of Article II• SECTION II. That the Municipal Code Corporation, publisher of the Code of Ordinances the City of Fayetteville, is hereby authorized and directed to delete Section X of Article IV, and Se of Article II e /z/y7 OF XVI No. 11451 To advertise for constrmc' center water Department. 4151 Ordinance No. 1451 Cont. SECTION III. It has been found and is declared by the City Council of the City of Fayetteville, Arkansas, that grave traffic hazards exist in the City of Fare tteville, endangering the lives of and e property of its citizens; that strengthened and more comprehensive traffic laws will materially reduce such traffic hazards, and that the amendment contained in this Ordinance is necessary to clarify such laws. Therefore, an emergency is declared to exist, and this Ordinance being necessary for the preserva- tion of the public peace, health and'aafety, shall be in full force and effect from and after its passage and approval. PASSED AND AFFROVED this 21st. day of June, 1965. bids I Consulting Engineer L.M. McGoodwin appeared before the Council and presented the plans for the operationproposed operation center for the new Water and Sewer Plant. sewer After a brief discussion, Alderman Burgin moved that the Mayor and City Engineer be authorized to advertise for bids for the construction of the Operation Center for the Water and Sewer Department. Tie motion was seconded by Alderman Bone, and passed unanimously. The Mayor Suggested that the next regular meeting of the Council be held on Tuesday, July 6,1965 Isince the regular meeting night comes on a holiday. This was unanimously agreed upon by the Council. There being no further business Alderman Watson moved to adjourn. The motion was seconded by Alderman Thomas and passed unanimously, whereupon the Mayor declared the meeting adjourned. APPROVED: ATTEST GUY E. BROWN, MAYOR Ue GFORGE 0, dXVIS) CITY CIERK The City Council of Fayetteville, Arkansas met in regular session in the Council Room the City Administration Building, on Tuesday, July 6, 1965 at 7:30 P.M. sent: 'Mayor Guy'E. Brown, City Clerk, George J. Davis, City Controller Albert J. Jones, y�Attorney .Hugh Kincaid, City•Engineer W. C. Smith, Chief of Police Hollis Spencer, and ermen Heflin, Christie, Watson, Bone, Thomas, Burgin, Faucette, and Short. ent: Fire Chief Burl Skelton. The minutes of the regular meeting on Monday, June 21, 1965, a copy of which had previously been mailed to each of the aldermen, were approved as written. The City Planner presented a petition of Leo Peel for the rezoning from R -1B Single Family Residential District and I-2 Heavy Industrial District to C-2 Thoroughfare Commercial District of property west of U.S. Highway 71 South between Twentieth Street and Cato Springs Road which had beeh appreved by the planning commission. After a long discussion, the city Attorney introduced and, at the request of the Council, read a pro- posed posed Ordinance in its entirety entitled, n AN ORDINANCE AMENDING ZONING ORDINANCE NO 1239, AND REVISED 1452 E@NTRGCDISTRICT MAP OF FAYETTEVILLE, ARKANSAS APPROVED MAY 281 1962s TO REZONE•CERTAIN REAL ESTATE FROM L-2 HEAVY INDUSTRIAL DISTRICT AND R -1B SINGLE FAMILY RESIDENTIAL DISTRICT TO C-2 THOROUGHFARE COMMERCIAL DISTRICT. " Alderman Burgin moved that the ordinance pass. The motion was Seconded by Alderman Thomas and passed unanimously, whereupon the Mayor declared the ordinance passed. I ORDINANCE NO, 1452 ORDINANCE AMENDING'ZONING ORDINANCE NO. 1239, AND REVISED ZONING DISTRICT MAP OF FAYETTEVILLE, ARKANSA ROVED MAY 28, 1962, TO REZONE CERTAIN REAL ESTATE FROM I-2 HEAVY INDUSTRIAL DISTRICT AND R -1B SINGLE !ILY RESIDENTIAL'DISTRICT TO C-2 THOROUGHFARE COMMERCIAL DISTRICT. 'WHEREAS, a public hearing was held before'the Planning Commission of the City of Fayettelrille ansas, on June 22, 1965, on the petition of Leo P. Peel requesting that said Planning Commission ommend to the City Council of the City of Fayetteville, Arkansas, that the City Council enact an inance rezoning the following described property, which is presently zoned I-2 Heavy industrial trict and R -IB Single Family Residential District, to- wit: Part of the Southwest Quarter (SW k) of the Southeast Quarter (SE k) of Section 21 in township 16 North, Range 30 West, being more particularly d5scribed as follows, to -wit: Beginning at the Southwest Corner of said 40 acre tract and running thence West 18 feet; thence North 5 degrees East 540 feet; thence East 504 feet; thence South 9 degrees 30 minutes West 214.5 feet; thence North 86 degrees 47 minutes West 385.5 feet; thence South 345 feet; thence West 110 feet to the point of peginning. from I-2 Heavy industrial Districe and R -1B Single Family Residential District to C-2 Thoroughfare Commercial District and WHEREAS, notice of said public hearing, setting forth the date, time, place and purpose of hearing, and location of the property was published id the Northwest Arkansas Times, a newspaper of general circulation in said City, more than 15 days prior to said public hbaring,and' WHEREAS, following -said public.hearing said Planning Commission certified to the City Council of the City of Fayetteirille, Arkansas,its recommendation that an ordinance be adopted rezoning the abov described property, which is presently zoned I-2 Heavy Industrial Dristrict and R -1B Single Residential District, to C-2 Thoroughfare Commercial District. NOW THEREFORE, BE IT ORDAINED BY THE -CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: SECTION I. That the above-described property which is presently zoned I-2 Heavy Industrial District and R -IB Single Family Residential District be and the same is hereby rezoned to C-2 Thoroughfare Commercial District.