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HomeMy WebLinkAbout1967-08-30 MinutesT.J.'Keith of N.W.Times Also present. Pur se of meeting. Wai ler of Ordinance No l 1560 The Board of Directors of the City of Fayetteville, Arkansas, met in special session on Wednesday, August 30, 1967, in the City Administration. Building at 4:30 P. N. CDST. Present: City Manager Gerald Fox, City Clerk George J. Davis, Assistant City Attorney David Horne, and Board Members: James T. Kerlin, Sylvia Swartz, Garland Melton, Arnold Christie, Don Trumbo, and Dale Dunn. Absent: Director Joe McFerran. The Mayor reported that the purpose of the meeting was to consider the passage of an ordinance to issue Sanitation Revenue Bonds and to discuss proposed improvements at the intersection of College Avenue and Dickson Street, The Mayor further reported that all of the members of the Board of Directors had been notified by U. S. Mail and by telephone but Director McFerran was on vacation and unable to attend but had waived notice the meeting. WAIVER OF NOTICE OF SPECIAL MEETING* Comes now the undersigned, being a duly elected, qualified, and acting member of the City Board of Directors of the City of Fayetteville, Arkansas, and specifically waives notice of a special meeting of the Fayetteville City Board of Directors to be held in the City Directors Room of the City Administration Building, Fayetteville, Arkansas, at 4:30 P. M.0 on August 30, 19 Dated this 30th day of August, 1967. JOE McFE N, DIRECTOR The Mayor stated that consideration should be given to an ordinance providing for the issuance of Sanitat Improvement Revenue Bonds; to be issued so that the construction of said improvements will alleviate an unhealthy and unsafe condition which exists in the City. This was a matter with which the Board was a familiar and after a discussion, Director Melton introduced an ordinance entitled: AN ORDINANCE PROVIDING FOR THE ISSUANCE OF SANITATION IMPROVEMENT REVENUE BONDS: SETTING UP CERTAIN FUNDS: PRESCRIBING OTHERRMATTERS RELATING THERETO: AND DECLARING AN EMERGENCY and the City Clerk read the ordinance in full. Director Melton, seconded by Director Kerlin , moved that the rule 'requiring the reading of an ordinan 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 followi voted aye: Kerlin, Swartz, Melton, Christie, Trumbo, and Dunn. 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 the. read by the City Clerk. Director Melton, seconded by Director Swartz 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 theasdoption of the motion.wand the roll being called the following voted aye: Kerlin, Swartz, Melton, Christie, Trumbo, and Dunn. and the following voted nay:No The Mayor declared that at least two-thirds of all members elected to the Board having voted in favor o the motion to suspend the rule, the motion was carried and the rule suspended. The ordinance was then re by the City Clerk. Director Melton, seconded by Director Kerlin, moved that the ordinance be adopted. The question was p by the Mayor on the adoption of the motion and the roll being called,the following voted aye:. Kerlin, Melton, Swartz, Christie, Trumbo, and Dunn, and the following voted nay; None Director Melton, seconded by Director Dunn, moved that Section 18, the emergency clause, be adopted, on roll call the following voted aye: Kerlin, Swartz, Melton, Christie, Trumbo, and Dunn. and the following voted nay: None The Mayor thereupon declared the ordinance and the emergency clause,adoptediand signed the ordinance, which was attested by the City Clerk and impressed with the seal of the City. The ordinance was given No. 1560, ORDINANCE N0, 1560 AN ORDINANCE PROVIDING FOR THE ISSUANCE OF SANITATION IMPROVEMENT REVE14UE BONDS; SETTING UP CERTAIN FUNDS; PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING A N EMERGENCY II' WHEREAS it has been found by the Board of Directors of,the City of Fayetteville, Arkansas (ccalled that the garbage and rubbish collection, hauling and disposal service (called "Sanitation System" or "Sy presently serving the City is inadequate for the needs of the City and itz inhabitants; and WHEREAS the Board of Directors has determined that the Sanitation System should be improved and exten and has accepted a special report and estimates of costs of the needed improvements and extensions, which report is on file with the City Clerk and to which reference may be made by an interested person, anx whi in general.calls for the following improvements "purchase of trucks, trailers, containers and other equip necessary for the collection and disposal of garbage and rubbish, construction of expanded facilities at City Shop to be used in the operation of the Sanitation System, purchase of trucks and ,other equipment necessary for the supervision of the Sanitation System (which will be hereafter referred tong the "improvements", all at an estimated cost of $50,000,00, including legal and other necessary expenses incidental to the purchase and.construction of the improvements and to the issuance of revenue bonds; and WHEREAS the City can obtain funds with which to pay for said improvements by the issuance of revenue bonds to be repaid from sanitation service fees;and WHEREAS the City has made arrangements for the dale of its $50,000.00 City of Fayetteville 4.64% Sanitation Improvement Revenue Bonds dated October 1, 1967 and due on July 1 in each of the ,years 1968 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 $52,075.00 in Fonds bearing interest at the rate of 4% per annum, and maturing as hereafter set forth; NOW, THEREFORE, BE IT ORDAINED by the Board of Directors of the City of Fayetteville, Arkansas: SECTION 1. That the purchase and erection of said improvements be, and the same are hereby, approved ratified and confirmed. SECTION Y. That the sale of $50,000.00 in bonds bearing interest at the rate of 4.64%, maturing as set forth above, to T.J', Raney & Sons, Little Rock, Arkansas, and the conversion of said bonds to an issue of $52,075.00 in bonds bearing interest at the rate of 4% per annum, as set forth below, be, and the same are hereby, approved and confirmed. tyn) P' ) 1 1 Ordinance 1560 (Cont n 61 (SECTION 3. The City has outstanding an issue of Sanitation Improvement Revenue Bonds, dated July1, 1965 called 111965 Bonds"), authorized by Ordinance No. 1449 of the ordinances of the City adopted and approve on June 21, 1965. The applicable provisions of Ordinance No.1449 (raferred to above) permit the issuance of additional parity bonds (Section 16 thereof). It is hereby found and declared that the conditions set out in Section 16 of Ordinance No. 1449 have been fully met and complied with and that, therefore, th bonds now being issued are issued on a parity of pledge, lien and security on the Sanitation System Reven with the outstanding 1965 Bonds. TION 4 That there are hereby authorized and ordered issued City of Fayetteville, Arkansas, Sanitatic rovement Revenue Bonds Series 1967, in the total amount $52,075.00, the proceeds of the sale of which essary to pay for said improvements. The bonds shall be dated October 1, 1967, and interest shall be able semiannually on January 1 and July1 of each year commencing January 1, 1968. The bonds shall be ibered consecutively from 1 to 53, inclusive, and shall be in the denomination of $1,000.00 each, excep d No. 4 which shall be in the denomination of $75.00, shall bear interest at the rate of 4% per annum, ch shall be evidenced by interest coupons, and the principal and interest shall he payable in lawful ey mf the United States of America upon presentation of the bond or proper coupon at the office of then Bank & Trust Company, Little Rock, Arkansas. The bonds shall be negotiable coupon bondp payable bearer and shall mature on July 1 of each ,year as follows, but shall be callable for payment prior maturity as hereafter set forth: YEAR BOND N0. AMOUNT 1968 1 - 4 $3,075 19x9 5 - 7 3,000 1970 8 -11 4,000 " 1971 12 -15 4,000 1972 16 =1�9 49000 1973 20 -23 4,000 1974 24 -27 4,000 1975 28 -31 49000 1976 32 -35 4,000 1977 36 -39 4,000 1978 40 -43 4,000 1979 44 -48 5,000 1980 49 -53 59000 ION 5. That the City has examined the computation by which an issue of $50,000.00 in bonds bearing rest at the rate of 4.64% maturing in the years 1968 through 1980 has been converted to an issue of 075 in bonds bearing interest at the rate of 4% per anmmn, as above set forth, and has found that by us thereof the City will receive no less and pay no more than it would receive and pay if the bonds not converted, CTION 6. That bonds shall be exxcuted on behalf of the City by the Mayor and City Clerk (with either t csumile or ,ramal`signature of the Mayor and the manual signature of the City Clerk) and shall have pressed thereon the seal of the City. Interest coupons attached to the rbonds shall be signed by the csimile signature of the Mayor, and the facsimile signature of the Mayor lithographed or printed on the nds or coupons shall have the same force and effect as if he had signed each of said bonds and coupons. e bonds together with interest thereon shall be payable solely out of the Sanitation Revenue Bond Fund, hereafter set forth, and shall be a valid claim of the holders thereof only against such fund and the punt of revenues pledged to such fund, which revenues are hereby pledged and mortgaged in an amount fficient to provide for the equal and ratable payment of said bonds. The bondsand interest thereon sha t constitute an indebtedness of the City within any constitutional or statutory limitation. W 7. That the bonds and coupons shall' be in substantially the following form, and the Mayor and Ci are hereby expressly authori ed and directed to make all recitals contained therein: UNITED STATES OF AMERICA STATE OF ARKANSAS COUNTY OF WASHINGTON CITY OF FAYETTEVILLE 4% SANITATION IMPROVEMENT REVENUE BOND, 1967 SERIES ALL MEN BY THESE PRESENTS: That the City of Fayetteville, County of Washington , State of Arkansas, acknowledges itself to owg, for value received, hereby promises to pay to bearer, solely from the special fund provided ss inafter set forth, theprincipal sum of t RS lawful money of the United States of America on the first day of Jualy, 19=o and to pay solely from s ecial fund interest hereon at the rate of ,four per cent (4x) per annum from date, semiannually on the f •ys of January and July, commencing January 1, 1968, upon presentation and surrender• of the annexed coup they severally become due,. Both principal and interest on this bond are made payable at the principal fice of Worthen Bank & Trust Company, Little Roak, Arkansas, s bond is one of annissue of fifty-three (53) revenue bonds, aggregating Fifty -Two Thousand Seventy lars ($52,075), dated October 1, 1967, and numbered from one (1) to fifty-three (53), inclusive, all e tenor and effect except as to number, denomination, rate of interest, maturity and right of prior emption, issued for the purpose of acquiring and constructing Sanitation System Improvements (descri' the authorizing ordinance) and paying necessary expenses incidental thereto (called the "bonds"). The bonds are issued in full compliance with the Constitution and laws of the State of Arkansas, and Lrsusant to Ordinance No. of the Board of Directors of Fayetteville, Arkansas, duly adopted and )proved on the day of , 1967 (called "authorizing ordinance"), and do not )nstitute an indebtedness of the City of Fayetteville within any constitutional or statutory limitations. is bonds are not general obligations of the City but are special obligations payable solely from net venues derived from the Sanitation System (defined in the authorizing ordinance) which have been duly .edged to the payment of the principal of and interest on the bonds. The bonds are issued.on a parity as to .en, pledge and security with the outstanding Sanitation ImprolementsRevenuesBonds of the City, dated ily 1, 1965 (called 111965 Bonds"), A sufficient amount of the.net revenues are to be set aside in the speci ind being maintained for the payment of the principal of, interest on and paying agent's fees in connection th the bonds and identified as the Sanitation Revenue Bond Fund. Reference is hereby made to the authorizin dinance for a detailed statement of the revenues pledged for the payment of the bonds, the nature and r182 Noel 1560 (Cont.) I xtent of the security for the bonds, and the rights and obligations of the City, the Trustee and the bond The City has fixed and has covenanted and agreed to maintain rates for the services of the Sanitation Syst I be sufficient at all times to provide for the proper and reasonable expenses of operation and mainte the Sanitation System, the maintenance of:a separate Depreciation Fund for necessary replacements to the S Sysfem, and to provide 150% of the maximum amounb that will become due in an v year for principal, interest agent4s fees on all outstanding bonds payable from the revenues of the Sanitation System (being the 1965 B bonds and any,subsequently issued parity bonds). The bonds shall be negotiable finder the laws of the State of Arkansas and are issued with the intent laws of the State of Arkansas shall govern the construction thereof. The bonds shall be callabe for payment prior to maturity in inverse numerical order at par -rand accrue llows: from the unexpended proceeds from the sale of the bonds of this issue and from surplus revenues c nitation System on any interest payment date; from funds from any source on any interest payment date on 1•y 1, 1972. Notice of the call for redemption shall be published one time in a newspaper published in t ttle Rock, Arkansas and having a general circulation throughout the State of Arkansas, giving the number turity of each bond being called, with the publication to be at least fifteen (154 days prior to the red d after the date fixdd for redemption each bond so called shall cease to bear interest, provided funds f yment are on deposit ti-rith the paying agent at that time. The bonds shall not be valid until they shall have been authenticated by the certificate hereon duly an Bank & Trust Company, Little Rock, Arkansas, Trustee, ioicers an which lance of Lnitation and paying )nds, thes&. ;hat the I interest as ' the and after ie City of and mption date, it its by IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required to exists happen and performed ir, due time, form and manner, as required by law; that the indebtbdness represented by the bonds does not eed any constitutional or staturoty limitations; and that sufficient revenues derived from the operation of the itation System hate been pledged to and will be set aside into said special fund for the payment of thel principal and interest on the bonds. IN WITNESS WHEREOF the City of Fayetteville, -Arkansas, by its Board of Directors, has caused this bond to be signed by the facsimile signature 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 Improvement reve signature of the Mayor, all as of the first day of -October, 1967. numbered CITY OF FAYETTEVILLE, ARKANSAS ' BY (facsimile signature) ATTEST: p Mayor CTqY QjZRK (SEAL) (FORM OF COUPON) N0, t January, On the first day of July, 19 , the City of Fayetteville, Washington County, Atkansas, unless thelbbnd to which this coupon is attached is paid prior thereto, hereby promises to pay to bearer, solely out of the funds specified in the bond to which this coupon is attached DOLLARS in lawful money of the United States of America at the principal office of Worthen Bank & Trust Company, Rock, Arkansas, Paying Agent, being six (6) months' interest then due on its Sanitation Improvement reve Series 1967, dated October 1, 1967, and numbered CITY -OF FAYETTEVILLE9 ARKANSAS 00 On each bond shall appear the following: CERTIFICATE Worthen Bank & Trust Company, Little Rock, Arkansas, hereby certifies that this is one of a serie described herein aggregating $52,075 numbered from 1 to 53, inclusive, all of like tenor andeffect except to number, denomination, rate of interest, maturity and right of prior redemption- WORTHEN BANK & TRUST COMPANY LITTLE ROCK, ARKANSAS SECTION 8. That the rates to be charged for services furnished by the Sanitation System heretofore fixes by Ordinance No. 1555 of the ordinances of the City, passed and approved on the 17th day of July, 1967, a the conditions, rights and obligations pertaining thereto set out in said Ordinance No. 1555 afe hereby r and confirmed. The said rates shall never be reduced below an amount whcih will produce sufficient rever times to provide f or the proper and reasonable expenses of operation and maintenance of the Sanitation maintenance of a separate Depreciation Fund for necessary replacements to the Sanitation System, and to c 1501o' of the maximum amount that will become due in any year for principal, interest and paying agent's ff outstanding bonds payable from the revenues of the Sanitation System (being the 1965 Bonds, the bonds of issue and any subsequent issued parity bonds). Ans, the City covenants and agrees that it will maintain services of the system so that the revenues produced therefrom will always be sufficient for theabove set purposes. SECTION 9. Inasmuch as the bonds are issued on a parity of security with the 1965 Bonds all provisions < No. 1449 adopted and approved on the 21st day of June, 1965, (authorizing and'securibg the 1965 Bonds) at except in those instances that the provisions deal specifically with the 1965 Bonds, inure to the benefit applicable to these bonds to the same extent as though set forth herein. To that end the provisions of ( No. 1449 are incorporated.herein by reference and shall continue to be applicable to the bonds of this is though the 1965 Bonds might be paid or payment provided for prior to the final payment or the making of 1 jt4r the payment of these bonds. tle Bond Ir J i of bonds as es at all stem, the ovide s on all his ates for the forth I Ordinance 11, of and be even sion 183 Ordinance No. Specifically, 1560 (Cent.) (a) the Sanitation Fund created and being maintained pursuant to the provisions of Section 9 of Or No. 1449 shall continue; ' (b) the Sanitation System Operation and Maintenance Fund created by a1d being maintained pursuant to the provisions of Section 10 of Ordinance No. 1449 shall continue; (c) the Sanitation Revenue Bond Fund created by and being maintained pursuant to the provisions of Section II of Ordinance No. 1449 shall continue; and (d) the Sanitation Depreciation Fund created by and being maintained pursuant to the provisions of $3,075.00 Section 12 of Ordinance No. 1449 shall continue. With particular reference to the Sanitation Revenue Bond Fund, the required monthly deposits therein shall be incfeased by the amount necessary to provide for the payment of principal of, interest on and paying agent's fees in connection with the bonds and to increase the debt service reserve to the sum of $22,000.00. and maintainedat that level. To this end the principal of and interest on the bonds mature according to the following schedule: BOND NOS. AMOUNT JANUARY! JULY 1 TOTAL The required monthly payments into the Sanitation Revenue Bond Fund shall be increased by one-fifth of the next installment of interest pLnd one-tenth (1/10) of the next installment of principal, plus the a sufficient to provide for the paying agent's fees, until the reserve for contingencies is increased to tY required level, and thereafter, so long as the reserve is maintained in the required amount, the additions payments into the Sanitation Revenue Bond Fund shall be one-sixth (1/6) of the neat installment of the interest and one -twelfth (1/12) of the next installment of principal, plus the amount to provide for the paying agent's fees. Without limiting the generality of the foregoing, all provisions set forth in Ordinance No. 1449 pertaining to the handling, investing, and disbursing of moneys in the various funds shall insure and to fully applicable to these bonds. 1/5)1 SECTION 10. With reference to the issuance of additional ponds, the provisions of Section 16 of Ordinance No 1449 shall be applicable to these bonds as aforesaid, vith the language "bonds then outstanding" to include the 1965 Bonds and these bonds. SECTION 11. That the bonds authorized hereby andissued hereunder shall be callable for payment prior to mgturity in accordance with the terms set out in the bond form. i' SECTION 12. (a) That when the bonds have been executed by the Mayor and City Clerk and the seal of the City impressedas herein provided, they shall be delivered to the Trustee, which shall authenticate them and deliver them to the purchaser upon parent of cash to the Trustee of the purchase price and accrued from October 1, 1967 to the date of delivery. (b) The Trustees shall deposit the accrued interest in the Sanitation Revenue Bond Fund. (c) The Trusteesshall remit the remaining balance of the proceeds of the sale of the bonds for deposit in a special account designated 111967 Construction Fund" with a depository that is a member o 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 1967 Const ion Fund in excess of the anount insured by the Federal Deposit Insurance Corporation shall be continuousl secured by bonds or other direct or fully guaranteed obligations of the United States of America, except any moneys invested as hereafter authorized need not be so secured. (d) The moneys in the 1967 Construction Fund shall be disbursed solely in payment for the im meats as hereinabove defined, including expenses necessary and incidental thereto and to the issuance of bonds. (e) That when the constructionoof the improvements shall have been completed,as evidenced byla letter so stating, signed by the Mayor and City Clerk, the depository with which the 1967 Construction Fund is deposited shall pay or transfer any remaining balance pursuant to said letter for the sole purpose of calling the bonds of this issue for payment prior to maturity or if insufficient to call one of more bonds, for transfer into the Sanitation Revenue Bond Fund. SECTION 13. Moneys held for the credit of any fund referred to in this ordinance may, at the option of City, be invested and reinvested pursuant to direction of the City in direct obligations of , or obligat. the principal of and interest on which are unconditionally guaranteed bv, the United States Government, which shall mature, or which shall be subject to redemption by the Holder thereof at the option of the holder, not later than the date or dates when the moneys held for the credit of the particular fund will required for the purpose intended. Obligations so purchased as an investment of moneys in any such Hind ' shall be placed in the custody of the Treasurer and shall be deemed at all times to be a part of such fu and the interest accruing thereon and any profit realized from such investment shall be credited to such fund, and any loss resulting from such investment shall be charged to such fund. SECTION 14. That the provisions of this ordinance shall constitute a binding contract between the City a holders of the outstanding bonds End 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 then outstanding shall have the right from time to time to consent to and approve the adoption by the City of such ordiance supplemental hereto as shall be necessary or desirable for the purpose of modifying, altering, amending, adding to or rescinding in any particular any of the terms or provisions contained in this ordinance or in 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 t 1968. 1 - 4 $3,075.00 $ $1,562.25 $49637.25 1969 5 - 7 3,000.00 980.00 980.00 49960.00 1970 8 - 11 4,000.00 920.00 920.00 51840.00 1971 12 - 15 49000.00 840,00 840.00 5,680.00 1972 16 -.19 4,000.00 760.00 760.00 5,520.00 7973 20 -�23 4,000.00 680.00 680.00 5,360.00 1974 24 --27 4,000.00 600.00 600.00 5,200.00 1975 28 - 31 49000.00 520.00 520.00 59040.00, 1976 32 - 35 4,000.00 440.00 440.00 49880.00 1977 36 - 39 4,000.00 360.00 360.00 49720.00 ' 1978 40 - 43 4,000.00 280.00 280.00 4.560.00 1979 44 - 48 5,000,00 200.00 200.00 5,400.00 1980 49 - 53 4,000.00 100.00 100.00 5,200.00 The required monthly payments into the Sanitation Revenue Bond Fund shall be increased by one-fifth of the next installment of interest pLnd one-tenth (1/10) of the next installment of principal, plus the a sufficient to provide for the paying agent's fees, until the reserve for contingencies is increased to tY required level, and thereafter, so long as the reserve is maintained in the required amount, the additions payments into the Sanitation Revenue Bond Fund shall be one-sixth (1/6) of the neat installment of the interest and one -twelfth (1/12) of the next installment of principal, plus the amount to provide for the paying agent's fees. Without limiting the generality of the foregoing, all provisions set forth in Ordinance No. 1449 pertaining to the handling, investing, and disbursing of moneys in the various funds shall insure and to fully applicable to these bonds. 1/5)1 SECTION 10. With reference to the issuance of additional ponds, the provisions of Section 16 of Ordinance No 1449 shall be applicable to these bonds as aforesaid, vith the language "bonds then outstanding" to include the 1965 Bonds and these bonds. SECTION 11. That the bonds authorized hereby andissued hereunder shall be callable for payment prior to mgturity in accordance with the terms set out in the bond form. i' SECTION 12. (a) That when the bonds have been executed by the Mayor and City Clerk and the seal of the City impressedas herein provided, they shall be delivered to the Trustee, which shall authenticate them and deliver them to the purchaser upon parent of cash to the Trustee of the purchase price and accrued from October 1, 1967 to the date of delivery. (b) The Trustees shall deposit the accrued interest in the Sanitation Revenue Bond Fund. (c) The Trusteesshall remit the remaining balance of the proceeds of the sale of the bonds for deposit in a special account designated 111967 Construction Fund" with a depository that is a member o 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 1967 Const ion Fund in excess of the anount insured by the Federal Deposit Insurance Corporation shall be continuousl secured by bonds or other direct or fully guaranteed obligations of the United States of America, except any moneys invested as hereafter authorized need not be so secured. (d) The moneys in the 1967 Construction Fund shall be disbursed solely in payment for the im meats as hereinabove defined, including expenses necessary and incidental thereto and to the issuance of bonds. (e) That when the constructionoof the improvements shall have been completed,as evidenced byla letter so stating, signed by the Mayor and City Clerk, the depository with which the 1967 Construction Fund is deposited shall pay or transfer any remaining balance pursuant to said letter for the sole purpose of calling the bonds of this issue for payment prior to maturity or if insufficient to call one of more bonds, for transfer into the Sanitation Revenue Bond Fund. SECTION 13. Moneys held for the credit of any fund referred to in this ordinance may, at the option of City, be invested and reinvested pursuant to direction of the City in direct obligations of , or obligat. the principal of and interest on which are unconditionally guaranteed bv, the United States Government, which shall mature, or which shall be subject to redemption by the Holder thereof at the option of the holder, not later than the date or dates when the moneys held for the credit of the particular fund will required for the purpose intended. Obligations so purchased as an investment of moneys in any such Hind ' shall be placed in the custody of the Treasurer and shall be deemed at all times to be a part of such fu and the interest accruing thereon and any profit realized from such investment shall be credited to such fund, and any loss resulting from such investment shall be charged to such fund. SECTION 14. That the provisions of this ordinance shall constitute a binding contract between the City a holders of the outstanding bonds End 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 then outstanding shall have the right from time to time to consent to and approve the adoption by the City of such ordiance supplemental hereto as shall be necessary or desirable for the purpose of modifying, altering, amending, adding to or rescinding in any particular any of the terms or provisions contained in this ordinance or in 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 t 4 ance of any bond or the rate of interest therein, or (c) the creation of a lien upon or a pledge of revenues 1560 as expressly authorized by the approprite provisions of this ordinance as now adopted, or (d) the crea privilege of priority of any gond or bonds over any other hond or bonds, or (e) a reduction in the aggr amount of the bonds required for oonsent to such supplemental 'ordinance. CTION 15. That the Trustee of the bonds issued hereunder shall be Worthen Bank & Trust Company, Little kansas. The Trustee shall only be responsible for the exercise of good faith and reasonable prudence i. ecution of its trust. The recitals in this odinance and in the face ofthe bondsare the recitals of the d not of the Trustee. The Trustee shall not be required to take any action as Trustee unless it shall quested to do so in waiting by the holders of not less than ten per cent (10%) in principal amount of U is issue then outstanding and shall have been offered reasonable security and indemnity against the cost d liabilities to be incurred therein or thereby. The Trustee may resign at any time by ten (10) days' i iting to the Mayor, and the majority in value of the holders of the outstanding bonds of this issue at without cause, may remove the Trustee. In the event of a vacancy in the office of Trustee, either by : by removal, the majority in value of the holders of the outstanding bonds of this issue may appoint a i ch appointment to be evidenced by a written instructment or instruments filed with the City Clerk. If I value of the holders of the outstanding bonds of this issue shall fail to fill a vacancy within thirty same shall occur, then the City shall forthwith designate a new Trustee by a written instrument filed the City Clerk. The original Trustee and any successor Trustee shall file a written acceptance and ag: ecute the trust imposed upon it or them by this ordinance, but only upon the terms andconditions set fo: dinancemd subject to the provisions of this ordinance, to all of which -the respective holders of the be ch written acceptance shall be filed with the City Clerk, and a copy thereof shall be placed in the bond y successor Trustee shall have all -the powers herein granted -to the original Trustee. The old Trustee 1 removal shall cease to be Paying Agent and the successor trustee shall automatically become Paying Agei CTION 16.. That the provisions of this ordinance•=are hereby declared to be separablen and if any provis: y reason be held illegal or invalid such holding shall not affect the validity of the remaindear of the CTION 17, That all ordinances and parts of ordinances in conflict herewith are hereby repealed to the nflict. . 0 1 - ION 18.. That it is hereby ascertained and declared that said improvements are necessary to the healtk ty of the inhabitants of the City, and that the construction of, said improvements is necessary in ord( viate an unhealthyrand unsafe, condition which exists in the. City. It is, therefore, declared that an gency exists, and this ordinance being necessary for the immediate preservation of the public peace, h< safety shall take effect and be in force from and:, -after its passage. ` PASSED: August 30 , 1967. APPROVED: o DO"RU100, MAYOR ATTEST: Y Authorize GEORGE .. DA ; CITY CLERK negotiations for widening The City Manager reported that he had contacted the property owners concerned in regard to the widening of College Ave. College Avenue at the intersection of College Avenue and Dickson Street and that most of them were willing at D 'ckson ST, to give the necessary land for the widening of College Avenue at that glace in order for a "Left Turn Onli lane. He further reported that the Arkansas State Highway Department had agreed to do the construction if the City would furnish the necessary right-of-way. After a long discussion, Director Christiemmoved that the City Manager be authorized to proceed with negotiations with the property owners at the College Avenue -Dickson Street Intersection for the necessary right-of-way for the widening of College Avenue to create a "Left Turn Only" Lane to meet with the specifications of the Arkansas State Highway Department. The motion was seconded by Director Melton and passed unanimously. There being no further business, Directmr Melton moved to adjourn. The motion was seconded by Director Dunn and passed unanimously, whereupon the Mayor declared the meeting adjou ned. APPROVED: ATTEST: ev -r DON TRU 0, MAYOR GEORGE DAPSP CITY CLERK r than of a principal the the it y ve been bonds of expenses Mice in y time, with w Trustee, e majority 30) daysafter n t he office e ement to h in this ds agree. on resignation n shall for rdinance. tent of such and ,to lth