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HomeMy WebLinkAbout10-63 RESOLUTIONRESOLUTION NO.49 • WHEREAS, on the 10th day of April, 1950, the CITY OF FAYETTEVILLE, ARKANSAS, (hereafter sometimes referred to as "CITY"), entered into a written contract with FAYETTEVILLE SUBURBAN WATER DISTRICT'NO. 1 OE WASHINGTON COUNTY, ARKANSAS Thereafter sometimes referred to as "DISTRICT NO. 1"), whereby the CITY agreed, in consideration of the furnishing by DISTRICT NO. 1 of the funds to construct a water pipeline system to serve the territory embraced within the boundaries of DISTRICT NO. 1, to construct the system, service the system, furnish water, read all meters, collect the bills and pay to DISTRICT NO. 1 one-half of all revenues collected from users of city water within the boundaries of DISTRICT NO. 1, such payments to continue so long as any bonds of DISTRICT NO. 1 are outstanding'and unpaid or for a period of twenty years, which- • ever occurs sooner; and WHEREAS, on the 6th day of November , 1951, the CITY entered into a written contract with FAYETTEVILLE SUBURBAN WATER DISTRICT NO. 3 OF WASHINGTON COUNTY, ARKANSAS (hereafter sometimes referred to as "DISTRICT NO. 3"), whereby the CITY agreed, in con- sideration of the construction and conveyance to the CITY by DISTRICT NO. 3 of a water pipeline system to serve the territory embraced within the boundaries of DISTRICT NO. 3, to service the system, furnish water, read all meters, collect the bills, and pay to DISTRICT NO. 3 one-half of all revenues collected from users of city water within the boundaries of DISTRICT NO. 3, such pay- ments to continue so long as any bonds of DISTRICT NO. 3 are out- standing and unpaid or for a period of twenty years, whichever occurs sooner; and • • inclusive, Page 2 WHEREAS,DISTRICT NO. 1 has issued its Bonds Nos. 1-86, dated September 1, 1950, in the aggregate principal sum of $82,000, of which only the following bonds are outstanding and unpaid: (1) Bond No. maturing (2) Bond No. maturing 55 in the principal sum of $500, on September 1, 1964; and 86 in the principal sum of $500, on September 1, 1970; and WHEREAS, DISTRICT NO. 3 has inclusive, dated December 1, 1951, in issued its Bonds Nos. 1-90, the aggregate principal sum of $13,000, of which only the following bond is outstanding and unpaid: Bond No. 90, in the principal sum of $100, maturing on December 1, 1971, and WHEREAS, pursuant to the contracts aforesaid and out of the revenues collected from water users within the boundaries of DISTRICT NO. 1 and DISTRICT NO. 3, and including payments made through December 31, Lam', the CITY has paid to DISTRICT NO. 1 the sum of $49,,228.,69 and to DISTRICT NO. 3 the sum of $5,631.82; and WHEREAS the bonds of each District are, by their express terms, redeemable in inverse numerical order, but contrary thereto the last maturing bonds have not been redeemed; and WHEREAS, it is estimated that in the event the two 1 outstanding bonds of DISTRICT NO. 1 and the one outstanding bond of DISTRICT NO. 3 are not redeemed even though funds are available therefor but are allowed to remain outstanding and unpaid until their normal maturity the CITY will be required to make/additional payments to DISTRICT NO. 1 in the aggregate sum of $66,617.31 and • Page 3 to DISTRICT N0. 3 in the agg�� regate sum of $7,200.18; and WHEREAS, such)a' " dditional payments would not be in the best interests of the CITY, its citizens and water users, since the CITY is obligated to at all times act in the best interests of its citizens and all water users rather than a particular group of water users; and WHEREAS, if, under the existing circumstances, the City Council and the officers of the CITY and of the Water Department were to permit such an unjust result to all its citizens and water users to occur, it clearly appears that they could be charged with being derelict in their duties as public servants; and WHEREAS, the CITY is the owner of DISTRICT NO. 1 Bonds Nos. 55 and 86 and DISTRICT NO. 3 Bond No. 90, which bonds are the sole outstanding and unpaid bonds of DISTRICT NO. 1 and DISTRICT NO. 3; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the CITY, as owner and holder of all the outstanding bonds of DISTRICT NO. 1, being Bonds Nos. 55 and 86 described above, does hereby forgive, cancel and terminate the indebtedness, principal and interest, evidenced by said bonds and does hereby relieve DISTRICT NO. 1 of any and all obligation with reference thereto, and the Mayor be, and he is hereby, authorized and directed, for and on behalf of the CITY to deliver said bonds and all interest coupons to Mcllroy Bank, Fayetteville, Arkansas, the paying agent designated by DISTRICT NO. 1, for cancellation. Page 4 Section 2. That the CITY, as owner and holder of the sole outstanding bond of DISTRICT NO. 3, being bond No. 90 described above, does hereby forgive, cancel and terminate the indebtedness, principal and interest, evidenced by said bond and does hereby relieve DISTRICT NO. 3 of any and all obligation with reference thereto, and the Mayor be, and he is hereby, authorized and directed, for and on behalf of the CITY to deliver said bond and all interest coupons to Mcllroy Bank, Fayetteville, Arkansas, the paying agent designated by DISTRICT NO. 3, for cancellation. Section 3. That it is the irrevocable purpose and intent of the action authorized and directed by Sections 1 and 2 of this Resolution that the principal and interest of all the above described bonds of both Districts be considered fully paid as if lawful money of the United States of America had been re- ceived in exchange therefor, to the end and with the -result that the said above described bonds of both Districts be no longer considered outstanding and unpaid. Section 4. That no further payments be made by the CITY to FAYETTEVILLE SUBURBAN WATER DISTRICT NO. 1 OF WASHINGTON COUNTY, ARKANSAS, or to FAYETTEVILLE SUBURBAN WATER DISTRICT NO. 3 OF WASHINGTON COUNTY, ARKANSAS, pursuant to the contract entered into between the CITY OF FAYETTEVILLE and FAYETTEVILLE SUBURBAN WATER DISTRICT NO. 1 OF WASHINGTON COUNTY, ARKANSAS, dated April 10, 1950, and the contract entered into between the CITY OF FAYETTEVILLE, ARKANSAS, and FAYETTEVILLE SUBURBAN WATER DISTRICT NO. 3 OF WASHING- TON COUNTY, ARKANSAS, dated November 6, 1951. Section 5. That the public health, safety and welfare Page 5 of all citizens and water users of the CITY require that the Water Department be operated as economically as possible, and that only proper and legal expenditures be made in order to insure the availability of sufficient funds for adequate water service upon as economical a basis as possible. Inasmuch as the action taken by this Resolution is necessary to the accomplishment of the above specified public purposes, an emergency is hereby declared to exist, and this Resolution shall take effect and be in force from and after its passage. PASSED this 7'day of • , 1963. 4 CERTIFICATE The undersigned, Clerk of the City of Fayetteville, Arkansas, hereby certifies that the foregoing pages, numbered 1 to 5, inclusive, are a true and correct copy of a resolution adopted at a regular session of the Council of the City of Fayetteville, Arkansas, held at the regular meeting place of o'clock f9.m. on the 01.1,® day of l U , 1963, and that said resolution is of record in the record books of the City now in my possession. GIVEN UNDER MY HAND AND SEAL this AP -Ted day of the Council in said City at 71? -47- 4A- • •-C (SEAL) , 1963. City Cl k // •