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Home My WebLink About92-74 RESOLUTIONRESOLUTION FILED FOR RECORD '75 JGN -o Gil 10: 27 / "uhdf i N COUNTY ALML; GLLMEYpi? CIRL'liiT CLER;( - A RESOLUTION APPROVING THE ISSUANCE BY BEAVER WATER DISTRICT OF BENTON AND WASHINGTON COUNTIES, ARKANSAS, OF AN ADDITIONAL $2,000,000 IN PRINCIPAL AMOUNT OF REVENUE BONDS FOR FINANCING CERTAIN IMPROVEMENTS; 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 RELATING THERETO; AND DECLARING AN EMERGENCY. WHEREAS, Beaver Water District of Benton and Washington Counties, Arkansas (the "District"), has heretofore constructed various facilities, necessary for it to withdraw water from Beaver Dam Reservior, 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 Contracts between the District and each of the cities (the basic contract th„ City and the Di..-trict was executed ac of January 16. 1963. 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, specifically (f) Water Revenue Improvement Bonds, Series A, dated December 1, 1962, -in the original principal amount of $411,000, 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, 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, and maturing on December 1, 1973; and WHEREAS, in order to assure the availability of an adequate supply of treatedwater to its customers, including particularly the Cities identified above, the District determined, on the basis of an engineering study and report, VOL 880 948 Page 2 that additional improvements must he undertaken and completed as soon as reasonably possible•consisting, generally•stated, of puinping facilities and related equipment at the intake structure, additional raw water lines, ex- pansion of the water treatment plant facilities and the installation of certain pollution control facilities (the "improvements"), which, together with related. construction expenses and the expenses of authorizing and issuing bonds were estimated to cost the District approximately $3,000,000; and WHEREAS, the construction of the improvements were necessary to insure each of the Cities identified above an adequate supply of water for the foreseeable future and, therefore, the construction of the improvements has been and 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 District determined to issue refunding and construction ••revenuetond•s (the "1973°Bonds1)-in-•theAotatl principal -amount of $5,525,000 (to refund the outstanding bonds and make available $3,000,000 in new money) under a financing 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, because of inflation and other unanticipated cost increases, actual construction costs,on the basis of bids, taken and contracts signed, are such that an additional $2,000,000 is needed to complete the improvements; and WHEREAS, the District can obtain the additional funds by selling revenue bonds ranking on a parity of security with the 1973 Bonds and in connection therewith, it is necessary that there be an assurance from each moo - of the Cities indentified above that it the District to the end of the District will continue to purchase water from having sufficient funds available to 880 949 Ala Page 3 • meet debt service on. the 1973 Bonds (and permanent bonds to refinance the 1973 Bonds) and'the'aiiditionar$2;000,000 in bonds (the "1975 Bonds"); NOW, THEREFORE, be it resolved by the Board of Directors of the. City of Fayetteville, Arkansas: Section 1. The City hereby reaffirms its approval of the construction of the improvements by the District. Section 2. The City agrees that so long as the 1973 Bonds and the 1975 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 obligations set forth herein, the District has._and by executing the acceptance at the end of W-this••Resolution•-shall-be,:deemed to=.have.,-.agreed .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 1, 1978, and that the proceeds thereof (or the necessary amountof the proceeds) will be used to pay in full and retire all of the outstanding 1973 Bonds and 1975 Bonds. Section 5. That the Trustee and the holders of the 1973 Bonds and 1975 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 1 have the right to enforce the provisions of this Resolution. Section 6. It is agreed that the holders of the 1973 Bonds and 1975 Bonds (and the holders of permanent bonds issued pursuant to Section 4 hereof) are acquiring and will hold the 1973 Bonds and 1975 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. VOL 880 950 • FBF -t' Page.4 Section 7. The Mayor and City Clerk are hereby authorized, on behalf �. of the City, to take any action and executeany 'documents 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 District make and evidence its agreements referred to in this Resolution, 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 pursuant to authorization by appropriate action of the Board of Directors of the District and 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 assurance that the City and its inhabitants 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 by •-thereon•structfon.of-.the..ini,provements.referred to herein, the authorizations, covenants and agreements of the City set forth in this Resolution are necessary for the accomplishment of the improvements, 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 /%t/i .day of Q. , 1974.. deatfraxi ,., a? T ,City Clerk I. 4.4 (?EAL) „..�' 1974. This Resolution accepted and agreed to thisay of ficin ATr> '° /,lea A*W./ FAL) • dretary,' BEAVER WATER DISTRICT OF BENTON AND WASHINGTON COUNTIES, ARKANSAS By j -c an , VOL 88.0 Chair 951 • CERTIFICATE I, the undersigned, City Clerk of Fayetteville, Arkansas, hereby certify that the foregoing pages are a true and compared copy of a Resolution, adopted at a ;YeG✓✓u(wr session of the Board of Directors of Fayetteville, Arkansas, held at the regular meeting place of the Board in the City at `.C.fo o'clock p .m., adopted on the /gill day of (ieeeihber, 1974, and that the Resolution is of record in Resolution Record Book No. now in my possession. %✓ Pagel/o oaf GIVEN under my hand and seal this Sday ofc .etch c_' , 1974. CERTIFICATE OF RECORD STATE OF ARKANSAS 1 SS: Washington County ] 1, Alma L. Kollmeyer, Circuit Clerk and Ex -Officio Recorder for Washington County, do hereby certify that the annexed or _ffore- in my office on the goinginstru ent was filed for 91rat �clockey and he same ias a of record 80 at pageWr duly recorded in _ day of 3.9r,; Witness my h and seal this ALMA KOLL EVER Circuit Clerk and Ex -Officio Recorded 1.� Deputy Clerk City Clerk VOL 880 952