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HomeMy WebLinkAbout32-73 RESOLUTION• ' 4. . • .. RESOLUTION NO.\ ?Z 7 7j A RESOLUTION APPROVING THE CONSTRUCTION OF CERTAIN IMPROVE- MENTS BY BEAVER WATER DISTRICT OF BENTON AND WASHINGTON COUNTIES, ARKANSAS; MAKING CERTAIN COVENANTS AND AGREEMENTS CONCERNING THE IMPROVEMENTS, THEIR FINANCING AND THE USE BY THE CITY OF TREATED WATER OBTAINED FROM THE DISTRICT; PRESCRIBING OTHER MATTERS RE- LATING THERETO; AND DECLARING AN EMERGENCY. WHEREAS, Beaver Water District of Benton and Washington Coun- ties, Arkansas (the "District"), has heretofore constructed various facilities necessary for it to withdraw water from Beaver Dam Reservoir, treat the water and sell and distribute it to various water users, including particularly, the Cities of Bentonville, Fayetteville, Rogers and Springdale, Arkansas, pursuant to Con- tracts between the District and each of the cities (the basic contract between the City and the District was executed as of January 16, 1973, and was amended and supplemented by a Supplemental Contract, dated as of February 24, 1969, and a Second Supplemental Contract, dated as of February 2, 1970 (collectively called the "outstanding contracts"); and WHEREAS, the existing facilities of the District were financed out of the proceeds of water revenue improvement bonds, specifi- cally (i) Water Revenue Improvement Bonds, Series A, dated December 1, 1962, in the original principal amount of $411,000 of which $323,000 in principal amount are now outstanding, and maturing on December 1 in each of the years 1963 to 1992, inclusive, (ii) Water Revenue Improvement Temporary Bonds of 1968, dated December 1, 1968, in the original principal amount of $1,800,000, all of which is presently outstanding, and maturing on December 1, 1973, and (iii) Water Revenue Improvement Temporary Bonds of 1970, dated March 1, 1970, in the original principal amount of $400,000, all of which is presently outstanding, and maturing on December 1, 1973, collectively referred to as the "outstanding bonds"); and WHEREAS, in order to assure the availability of an adequate supply of treated water to its customers, including particularly the Cities identified above, the District has determined, on the basis of an engineering study and report, that additional'improve- ments must be undertaken and completed as soon as reasonably possible consisting, generally stated, of pumping facilities and related equipment at the intake structure, additional raw water lines, expansion of the water treatment plant facilities and the installation of certain pollution control facilities (the "improve- ments"), which, together with related construction expenses and the expenses of authorizing and issuing bonds will cost the District approximately $3,000,000; and WHEREAS, the construction of the improvements are necessary to insure each of the Cities identified above an adequate supply of water for the foreseeable future and, therefore, the construc- tion of the improvements is hereby found and determined to be necessary for the public health, safety and welfare of each of the Cities and its inhabitants; and WHEREAS, the financing plan found to be the most feasible under all of the circumstances (including the immediate need for the undertaking of the construction of the improvements and the necessity to refinance the 1968 Bonds and the 1970 Bonds no later than December 1, 1973) is for the District to issue refunding and construction revenue bonds (the "1973 Bonds") in the total principal amount of $5,525,000 (which will refund the outstanding bonds and make available $3,000,000 in new money) under a finan- cing arrangement whereby all of the principal of the 1973 Bonds will mature five years from date and the 1973 Bonds will bear interest only until that maturity; and WHEREAS, in order to market the 1973 Bonds, it is necessary that there be an assurance from each of the Cities identified above that it will continue to purchase water from the District to the end of the District having sufficient funds available to meet debt service on the 1973 Bonds (and permanent bonds to refinance the 1973 Bonds); NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. The City hereby approves the construction of the improvements by the District. Section 2. The City agrees that so long as the 1973 Bonds, and any permanent bonds issued pursuant to the provisions of Section 4 hereof, are outstanding the City will continue as a water customer of the District and in connection therewith will use the District as its principal source of water supply. Section 3. In consideration of the City incurring the ob- ligations set forth herein, the District is to agree that it will supply to the City adequate amounts of treated water to meet the requirements of the City and its inhabitants. Section 4. The City and the,District understand and agree that permanent bonds will be issued by the District on or prior to May 31, 1978, and that the proceeds thereof (or the necessary amount of the proceeds) will be•used to.pay in full and retire all of`the outstanding 1973 Bonds. • • ,A .» ^ ,v Section 5. That the Trustee and the holders of the 1973 Bonds (and permanent bonds issued pursuant to Section 4 hereof) shall be third party beneficiaries and that the Trustee, on behalf of the holders, shall have the right to enforce the provisions of this Resolution. Section 6. It is agreed that the holders of the 1973 Bonds (and the holders of permanent bonds issued pursuant to Section 4 hereof) are acquiring and will hold the 1973 Bonds (and the permanent bonds issued pursuant to Section 4 hereof) in reliance upon the agreements of the District and the City set forth herein. Section 7. The Mayor and City Clerk are hereby authorized, on behalf of the City, to take any action and execute any docu- ments that may be necessary or desirable to carry out the authority conferred by this Resolution or to evidence the agreements and covenants of the City set forth herein. To the end that the Dis- trict make and evidence its agreements referred to in this Resolu- tion, the Mayor and City Clerk shall take the necessary steps to cause the District to accept and agree to the provisions of this Resolution. Such acceptance"and.,agreement shall be authorized by appropriate action of the Board of Directofs of the District and thereafter the acceptance and agreement shall be set forth in an appropriate insertion to be made on a copy of this Resolution. Section 8. That'the assurances -that the City and its inhab- itants will continue to have an adequate supply of treated water is essential;to the health, safety and welfare of the inhabitants, which assurance'can be obtained only byithe immediate undertaking of the construction/of the improvements referred to herein, the authorizations, covenants and agreements of the City set forth in this Resolution are necessary for the accomplishment of the improve- ments, and therefore, an emergency is declared to exist, and this Resolution being necessary for the preservation of the health, safety and welfare, shall take effect and be in force from and after its passage. ADOPTED this l'f'in day of ATTEST: v*4 ar APPROVED: 1973. t)4644tet,cy 6a/44_ Mayor