June 6, 1968MINUTES OF COUNCIL MEETING OF THE COUNCIL OF THE CITY OF WEST MEMPHIS, ARKANSAS,
HAD AND HELD ON iIINF fi~~ $~ _,~. -- -- ~-^ _ _ -- -_._ . -:. _-
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The City Council of the City of West Memphis, Arkansas met in regular session at its
regular meeting place in West Memphis, Arkansas at 3:00 o'clock p.m. on the 6th day of
June, 1968. The following were present: Mayor Bob Eden; City Clerk Charles F. DeGraff,
City Attorney R, E. Wallin; and Aldermen 0. C. Haley, Pritchard Horton, Kirby Leggett,
Paul Matthews, C. T. Rodgers, R. L. Smith, and F. C. Weis. Absent: Alderman 0. I. Bollinger.
It being determined a quorum was present, the following proceedings were had to-wit:
Final Plat of Section One Holiday Gardens Subdivision Extension was presented by
Mr. Cy Bond, Jr. of Bond Engineers, Inc. After discussion, motion was made by Alderman Weis,
seconded by Alderman. Smith: That the plat of Sec, 1, Holiday Gardens Extension be approved
as presented. Upon vote, the. voting was as follows:
Aye: Aldermen: Haley, Horton, Leggett, Matthews, Rodgers, Smith, and Weis.
Ng~; None. `+
Final Plat of Street and Utility Easements for part of Block 6, S, ~ of Block 8,
Block 11, and Weaver School Lot, Holiday Gardens Extension was presented by Mr. Bond. The
Council was informed the Planning Commission had approved the Plat, thereupon, motion was
made by Alderman Weis, seconded by Alderman Leggett: That the plat presented for Street and '~
Utility Easements be approved. Upon vote, the voting was as follows:
Aye: Aldermen: Haley, Horton, Leggett, Matthews, Rodgers, Smith, and Weis.
Nay: None.
Mr, Sam E. Cross presented a resubdivision plat of the West 100 Feet of Lot 5, Block 11,
Compress Subdivision. After discussion of lot dimension requirements and utility easement,
motion was made by Alderman Smith, seconded by Alderman Weis: That Resubdivision of W 100'
of Lot 5, Block 11, Compress Subdivision be approved. Upon vote, the voting was as follows:
Aye: Aldermen: Haley, Horton, Matthews, Rodgers, Smith, and Weis.
Nay: None.
Alderman Leggett abstained from voting.
Recommendation of the Planning Commission to rezone Lots 25 and 26, Block 33,
M. L. Thompson's Subdivision from RS-7 to C-5 was presented. Attorney E. Weisburd in behalf
of J. W. and Mable Bateman, owners of the property, informed the Council the request for rezoning
was in order to construct a church. After discussion of location of the lots adjacent to Ten Mile
Bayou and sufficient parking area, an ordinance entitled "An Ordinance To Rezone Certain Zoned
Property In M. L. Thompaon's Subdivision Addition To West Memphis, Arkansas, from R5-~, Single
Family Residential, To C-5, General Commercial, Declaring An Emergency, And For Other Purposes"
was introduced by Alderman Leggett. City Attorney Wallin read the ordinance in full.
Alderman Smith, seconded by Alderman Haley, moved that the rule requiring the reading of an
ordinance 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 voted:
Aye: Aldermen: Haley, Horton, Leggett, Matthews, Rodgers, Smith, and Weis}
and the following voted Nay: None.
Thereupon the Mayor declared that at least two-thirds of all members 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 Attorney.
Alderman Horton, seconded by Alderman Rodgers 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 the adoption of the motion and the roll
being called the following voted:
Aye: Aldermen: Haley, Horton, Leggett, Matthews, Rodgers, Smith, and Weis;
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 Attorney.
Alderman Matthews, seconded by Alderman Weis, 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: Aldermen: Haley, Horton, Leggett, Matthews, Rodgers, Smith, and Weis;
and the following voted Nay: None.
Alderman Leggett, seconded by Alderman Smith, moved that Section 3, the emergency clause, be
adopted, and on roll call the following voted:
Aye: Aldermen: Haley, Horton, Leggett, Matthews, Rodgers, Smith, and Weis;
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. 562. The ordinance read se follows:
ORDINANCE N0. 562
AN ORDINANCE TO REZONE CERTAIN ZONED PROPERTY IN M. L. TH~IPSON'S SUBDIVISION ADDITION TO
WEST MEMPHIS, ARKANSAS, FROM RS-7, SINGLE FAMILY RESIDENTIAL, TO C-S, .GENERAL COMMERCIAL,
DECLARING AN EMERGENCY, AND FOR OTHER PURPOSES.
WHEREAS, a petition has been filed with the Planning Commissbn of West Memphis, Arkansas,
as provided by Ordinance No. 411 of the City of West Memphis, Arkansas; and
WHEREAS, notice was duly published on the 14th day of May, 1968, that a hearing would be
held by the Planning Commission on the 29th day of May, 1968, calling upon interested persona
to appear~at such hearing and make known their objections, if any, in connection with said
petition for the rezoning of the property hereinafter described; and
WHEREAS, it was requested that the following property located in Crittenden County,
Arkansas, to-wit:
Lots 25 and 26, Block 33, M. L. Thompson's Subdivision Addition
to West Memphis, Arkansas
be rezoned from RS-7, Single Family Residential, to C-5, General Commercial; and
WHEREAS, no persons appeared to offer a protest against the rezoning of said property as
requested; and .
WHEREAS, .the Planning Commission recommended to the City Council that said rezoning be
granted,
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF WEST MEMPHIS, ARKANSAS:
SECTION I. That the following property located in Crittenden County, Arkansas, to-wit:
Lots 25 and 26, Block 33, M. L. Thompson's Subdivision Addition
to West Memphis, Arkansas
now zoned as RS-7, Single Family Residential, be and the same is hereby rezoned as C-$, General
Commercial.
SECTION II. A11 Ordinances or parts of Ordinances in conflict herewith are hereby repealed.
SECTION III. Emergency Clause: It is found and declared by the City Council of the City of
West Memphis, Crittenden County, Arkansas, that this ordinance is necessary for the growth and
expansion of the City of Weat Memphis and the property in question is in the process of development
and such rezoning is necessary for such development. Therefore, an emergency is hereby declared to
exist and this ordinance shall be in full force and effect from and after its passage, approval and
publication as required by law.
SECTION IV. A copy of this ordinance when duly certified by the City Clerk shall be aub~ect
to being filed and recorded in the office of the Circuit Clerk and Ex-Officio Recorder within and
for Crittenden County, Arkansas.
~~
Rev. T. J. Hughes and representatives of The Living Christ Centers and Revivals, Inc. appeared
to request permission to erect a tent for a two week revival at 635 S. 12th Street. After discussion
of sanitary conditions and parking apace with Building Inspector Perrino, motion wsa made by
Alderman Rodgers, seconded by Alderman Leggett: That Building Inspector Perrino be authorized to
issue permit when applicant meets provisions of City ordinances pertaining thereto. Upon vote, the
voting was as follows:
Aye: Aldermen: Haley, Horton, Leggett, Matthews, Rodgers, Smith, and Weis.
Nay: None.
The Council was informed the Airport Commission recommended the contract for construction of
taxi strip be awarded to Warren Brothers Roads Co. of Memphis, Tennessee. After discussion of
Grants to be approved by the Federal Aviation Administration and bide received, motion was made by
Alderman Matthews, seconded by Alderman Haley: That Warren Brothers Roads Co. be awarded bid for
airport taxi strip construction, and the Mayor be authorized to execute contract. Upon vote, the
voting was as follows:
Aye: Aldermen: Haley, Horton, Leggett, Matthews, Rodgers, Smith, and Weis.
Nay: None.
------________ ____-.r--
The Mayor stated that consideration should be given to an ordinance authorizing the
issuance of public utility revenue bonds for financing the constructing and equipping of
Public Utility System improvements. This was a matter with which the Council was familiar
and after a discussion, Alderman Leggett introduced an ordinance entitled: "An Ordinance
Authorizing The Issuance Of Public Utility Revenue Bonds For The Purpose Of Financing The
Goat Of Constructing And EquiXrping Fublic Utility system Improvements At The City Of
West Memphis, Arkansas; Providing For The Payment Of The Bonds; Prescribing Other Matters
Relating Thereto; And Declaring An .Emergency" and the City Attorney read the ordinance in
full.
Alderman Smith, seconded by '<Alderman Haley, moved that the rule requiring the reading
of an ordinance or resolution in full on three different days be auapended 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 voted aye:
Aldermen: Haley, Horton, Leggett, Matthews, Rodgers, Smith, and Weis
and the following voted nay: None.
i
Thereupon the Mayor declared that at least two'~thirds of all members of the Council having
voted. in favor of the motion to suspend the rule, the motion was carried and the rule auapended.
The ordinance was then read by the City Attorney.
Alderman Horton, seconded by Alderman Rodgers 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 'I
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:
I
Aldermen: Haley, Horton, Leggett, Matthews, Rodgers, Smith, and Weia
and the following voted nay: None.
',I
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 Attorney. 'I
f
Alderman Matthews, seconded by Alderman Weis, 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:
1
Aldermen: Haley, Horton, Leggett, Matthews, Rodgers, Smith, and Weis j
and the following voted nay: None. ~
i
Alderman Leggett, seconded by Alderman Smith, moved that Section 18, the emergency clause, ',
be adopted, and on roll call the following voted aye:
Aldermen: Haley, Horton, Leggett, Matthews, Rodgers, Smith, and Weis ~~;
and the following voted nays 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. 563. Ij
~!
The ordinance read as follows:
ORD.[NAIVCE NO. `~ ~ --~
AN ORDINANCE AUTHORIZING TIIE ISSUANCE OF PUBLIC
U1'IIdTY' REVENUE BONDS FOR THE PURPOSE OF 1'INANCING
'PHE COST OF CONS'PRUCT'ING AND EOUII'PING PUBLIC
U'PILI'PY SYSTEM In-IPROVEMi:N'PS AT 'PHE CITY OF WEST
MEN'IPIIIS, ARt:11NSAS; PROVIDING I'OR THE PAYIvIENT OF
THE. BONDS; PRESCRIB?NG OTHER MATTERS REIA'PING
TIiERL--"PO; AND DECLARING AN EP~1};RGENCY.
WHEREAS, the City of West Memphis, Arkansas (the "City"), owns
and operates electric facilities, waterworks facilities and sewer facilities as
one inter-related municipal undertaking, the facilities of -;vhich constitute the
City's Public Utility System (all of the facilities will be herein sometimes
referred to as the "System"); and
WHEREAS, the City has determined that the constructing and equip-
ping of improvements consisting of a building to house the Public Utility System
Offices at the City and related improvements (the "Improvements") are necessary;
and
WHEREAS, in order to finance the Improvements, it will be necessary
for the City to issue Public Utility Revenue Bonds; and
WHEREAS, after due advertisement, Public Utility Revenue Bonds
(the "bonds") in the principal amount of $400,000 were offered for public sale,
and at the sale an account headed by Powell & Satterfield, Little Rock, Arkansas,
bid and offered the price of par and accrued interest for bonds bearing interest at
the rate of 4.715% per annum, and this being the beet bid, the bonds were sold
to the purchasers at that price; and
WHEREAS, pursuant to the terms of the sale, and as permitted by the
law of the State of. Arkansas, the purchaser has elected to convert the $400,000
in principal amount of bonds bearing interest at the rate of 4.715% per annum
to an issue of $418,000 in principal amount of bonds bearing interest at the
rate of 4% per annum, with the details of the bonds being hereafter in this
Ordinance set forth, and the City has examined the conversion and found the
313
same to be proper in that the City will receive no less acid pay no more than
it would have received and paid if the bonds had not begin converted;
NOON, TIIEREFORF, BE IT ORDAINED by the City Council of the City
of ~b'est 1\lemphis, Arkansas:
Section 1. `that the Improvements be accomplished.
Section 2. That the sale of $400, 000 in principal amo~int of bonds
to Powell & Satterfield, Little Rock, Arkansas, at the price of par and accrued
interest for bonds bearing an interest rate of 4.715'/o per annum and the conver-
Sion thereof to an issue of $418, 000 in principal amount of bonds bearing
interest at the rate of 4°o per annum, maturing and otherwise subject to the
terms and provisions hereafter in this Ordinance set forth in detail, be, and
the same are hereby, approved and confirmed.
Section 3. That the City has outstanding an issue of Sewer Revenue
Refunding and Improvement Bonds, dated June 1, 1945, authorized by Ordinance
No. 107 of the Ordinances of the City, adopted and approved on July 6, 1945
and an issue of Sewer Revenue Bonds dated August 1, 1949, authorised by
Ordinance No. 171 of the Ordinances of the City, adopted and approved on
September 9, 1949 (herein sometimes referred to as the "1945 and 1949 Sewer
Bonds") . In addition, the City has outstanding an issue of Public Utility Bonds
dated May 1, 1954, authorized by Ordinance No. 275 of the Ordinances of the
City, adopted and approved on May 18, 1954 (herein sometimes referred to as
the "1954 Utility Bonds"); and the City has outstanding an issue of Public Utility
Bonds dated April 1, 1956, authorized by Ordinance No. 316 of the Ordinances
of the City, adopted and approved on March 15, 1956, as amended (herein
sometimes referred to as the "1956 Utility Bonds"); and the City has outstanding
an issue of Public Utility Bonds dated July 1, 1963, authorized by Ordinance No,
437 of the Ordinances of the City, adopted and approved on June 20, 1963 (herein
sometimes referred to as the "1963 Utility Bonds"); and the City has outstanding
an issue of Public Utility Bonds dated June 1, 1967, authorized by Ordinance No.
31 ~~
526 of t1~e Ordinances of the City, adopted and approved on April 20, 1967 (herein
sometimes referred to as the "1967 Utility Bonds"). The 1967 Utility Bonds, the
1963 Utility Bonds and the 1956 Utility Bonds are issued on a parity of ,security
with each other and with the 1954 Utility Bonds. The applicable provisions of
Ordinance No. 275 approved May 18, 1954 and of Ordinance No. 526 approved
April 20, 1967 permit the issuance of additional parity bonds. It is hereby
found and declared that the conditions set out in Section 17 of Ordinance No.
275 and in Section 17 of Ordinance No. 526 have been fully met and complied
with and that, therefore, the bonds now being issued are issued on a parity of
pledge, lien and security on the System Revenues and on the S}~stem with the
outstanding bonds of the 1954 Utility Bonds, the 1956 Utility Bonds, the 1963
Utility Bonds and the 1967 Utility Bonds. As in the case of the 1954 Utility
Bonds, the 1956 Utility Bonds, the 1963 Utility Bonds and the 1967 Utility Bonds,
with which these bonds are being issued on a parity, the pledge, lien and security
in favor of the bonds now being issued is subject to the prior and superior pledge
and lien of the 1945 and 1949 Sewer Bonds (to the extent of the pledge of revenues
made to the 1945 and 1949 Sewer Bonds by the Ordinances authorizing their
issuance). Also, it is recognized that the City has made a conditional pledge
of electric revenues to an issue of Swimming Pool Revenue Bonds of the City dated
March 1, 1955, as set forth in Section 14 of Ordinance No. 295 of the Ordinances ,'~
of the City adopted and approved on February 1, 1955, and nothing in this
i
Ordinance shall be construed as impairing that conditional pledge of electric
revenues to the extent, and only to the extent, that the conditional pledge in
i
favor of the March 1, 1955 Swimming Pool Revenue Bonds may be determined to
be applicable to the pledge of System Revenues in favor of the bonds now being
issued.
I
Section 4. That under the authority of the Constitution and laws of
the State of Arkansas, including particularly Act No. 131 of the Acts of Arkansas
'. of 1933, as amended, Act No. 132 of the Acts of Arkansas of 1933, as amended,
i1
and the applicable decisions of the Supreme Court of the State of Arkansas,
~° ~:
Page 4
including particularly City of Harrison v. Braswell, 209 Ark. 1094, 194 S.W.2d
12, Public Utility Revenue Bonds (the "bonds" or the "1968 Utility Bonds") are
hereby authorized and ordered issued in the principal amount of $418,000 for
the purpose of accomplishing the Improvements and paying necessary expenses
incidental thereto and to the authorization and issuance of the bonds. 'i'he bonds
shall be dated Ivlay 1, 1968, with interest thereon payable semiannually on May 1
and November 1 of each year, commencing November 1, 1968, the bonds shall
be numbered consecutively from 1 to 418, inclusive, and the bonds shall be in
the denomination of $ 1, 000 each. The bonds bear interest at the rate of 4% per
annum and mature in the years 1969 to 1980, inclusive. The interest shall be
evidenced by interest coupons and the principal, and interest shall be payable
in lawful money of the United States of America upon presentation of the bond
or proper coupon at the office of City National Bank, Fort Smith, Arkansas (the
"Trustee" and "Paying Agent") . The bonds shall be negotiable coupon bonds
payable to bearer, and shall mature on May 1 of each year as follows , but shall
be callable for payment prior to maturity as hereafter set forth:
3is
YEAR 13ONll NOS. AMOUNT
1969 1 - 30 $ 30,000
1970 31 - 60 30,000
1971 61 - 90 30,000
1972 91 - 120 30,000
1973 121 - 152 32,000
1974 153 - 184 32,000
1975 185 - 218 34,000
1976 219 - 254 36,000
1977 255 - 292 38,000
1978 293 - 332 40,000
1979 333 - 374 42,000
• 1980 375 - 418 44,000
Section 5. That the bonds shall be executed on behalf of the City by
the Mayor and City Clerk and shall have impressed thereon the seal of the City.
The bonds may be e~:ecuted by the facsimile signature. of the Mayor and the
interest coupons attached to the bonds may be executed by the facsimile
signature of the Mayor. Any facsimile signature of the A~ayor shall have the
same force and effect as if personally signed by him. The bonds must be exe-
cuted by the manual signature of the City Clerk. The bonds, together with
interest thereon, shall be payable solely out of the 1968 Public Utility Bond Fund,
as hereafter set forth, and shall be a valid claim of the holders thereof only
against such fund and the revenues pledged to such fund, which revenues are
hereby pledged and mortgaged for the equal and ratable payment of the bonds
on a parity of pledge, lien and security with the 1954 Utility Bonds, the 1956
Utility Bonds, the 1963 Utility Bonds and the 1967 Utility Bonds, and shall be
used for no other purpose than to pay the principal of and interest on the bonds,
except as otherwise specifically provided in this Ordinance. 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:
";
i
Page 6
UNITED S'tA'i'ES OP AMERICA
STATE OF ARKANSAS
COUNTY OF CRIT'lENDEN
CITY OP WEST MEMPHIS
4°o PUBI_,IC UTILITY REVENUE BOND
No.
$1,000
KNOW ALL MEN BY THESE PRESENTS:
That the City of West Memphis, in the County of Crittenden and
State of Arkansas ("City"), acknowledges itself to owe, and for value received,
hereby promises to pay to bearer, solely from the special fund provided as here-
after set forth, the principal sum of
ONE THOUSAND DOLLARS
in lawful money of the United States of America on the first day of May, 19 ,
and to pay solely from said special fund interest hereon at the rate of four per
cent (4%) per annum from date, semiannually on May 1 and November 1 of each
year, commencing November 1, 1968, upon presentation and surrender of the
annexed coupons as they severally become due. Both the principal of and in-
terest on this bond are made payable at the principal office of City National Bank,
Fort Smith, Arkansas (the "Trustee" and the "Paying Agent").
This bond is one of an issue of four hundred eighteen (418) Revenue
Bonds, aggregating Foui Hundred Eighteen Thousand Dollars ($418,000}, dated
May 1, 1968, all of like tenor and effect, except as to number, maturity and
right of prior redemption ("bonds"), and are issued for the purpose of financing
the cost of constructing and equipping improvements consisting of a building to
house the Public Utility System Offices at the City and related improvements
("Improvements") . The City owns and operates electric facilities , waterworks
facilities and sewer facilities as one inter-related municipal undertaking, the
facilities of which constitute the City's Public Utility System (all of the facilities
wi)1 be herein sometimes referred *o as the "System").
318
_ ~...
- _ ,..
Page 7
The bonds are issued pursuant to and in full compliance with the
Constitution and laws of the State of Arkansas, including particularly Act No.
131 of the Acts of Arkansas of 1933, as amended, Act No. 132 of the Acts of
Arkansas of 1933, as amended, and applicable decisions of the Supreme Court
of the State of Arkansas, including particularly City of Harrison v. Braswell,
209 Ark. 1094, 194 S.W. 2d 12, and pursuant to an Ordinance of the City
Council of the City, duly adopted and approved, and do not constitute an
indebtedness of the City within any constitutional or statutory limitation.
The bonds are not general obligations of the City, but are special obligations
payable solely from revenues of the System. The bonds are issued on a parity
as to lien, pledge and security with the Public Utility Bond issue of the City
+' dated May 1, 1954, the Public Utility Bond issue of the City dated April 1,
1956, the Public Utility Bond issue of the City dated July 1, 1963 and the
Public Utility Bond issue of the City dated June 1, 1967, but subordinate to
certain outstanding Sewer Bonds of the City (described and referred to in the
Authorizing Ordinance) . An amount of System Revenues sufficient to pay the
principal of and interest on the bonds is to be set aside in a special fund for
that purpose identified as the "1968 Public Utility Bond Fund" (the "Bond Fund"),
created by Ordinance No. ~6~_, duly adopted by. the City Council and approved
on the bth day of d np 1968, (the "Authorizing Ordinance")
under which the bonds are authorized to be issued and to which reference
may be had by any interested person for a statement of the nature and extent
of the security and the rights and obligations of the City, the Trustee, and
the holders of the bonds. The City has fired and has covenanted and
.,, Page 3
agreed to maintain rates for Electric, Water and Sevver Services which shall
be sufficient at all times to at least provide for the payment of the reasonable
expenses of operation and maintenance of the System, provide for the payment,
principal and interest, of all bonds to which payments must be made to satisfy
pledyes of System Revenues including specifically the bonds of this issue,
and make the required payment into the Depreciation Fund.
The bonds will be subject to redemption prior to maturity, in whole
or in part, at the option of the City, in inverse numerical order, at a price of
par and accrued interest, as follows: (1) From the' unexpended proceeds of the
sale of the bonds not needed for accomplishing the Improvements and from surplus
System Revenues on any interest payment date; and (2) From funds from any
other source on any interest payment date on and after May 1 , 1973 .
Notice of the call for redemption shall be published 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 and maturity of
each bond being called, the publication to be at least fifteen (15) days prior to
the redemption date and after the date fixed for redemption each bond so called
shall cease to bear interest, providing funds for its payment are on deposit
with the Paying Agent at that time.
This bond is expressly made negotiable under the laws of the State
of Arkansas and is issued with the intent that the laws of the State of Arkansas '
shall govern the construction thereof.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, con-
ditions and things required to exist, happen and to be performed precedent to
and in the issuance of this bond, have existed, have happened and have been
320
N~~.::...~I: ~ ~M~'i^ f ":fir ~~ :~ue...Mm . ~ ~.~..e.~.._~ ~ . .. ... ........ .. .. ......
Paige 9
performed in due tune, foam and manner, as required by law; that the indebted-
ness represented by the bonds of this issue does not exceed any constitutional
or statutory limitations; and that sufficient revenues have been pledged to and
will be set aside into the Bond Fund, for the payment of the principal of and
interest on the bonds of this issue.
This bond shall not be valid until the Certificate of Authentication
hereon shall have been signed by the Trustee.
IN WITNESS WHEREOF, the City of West Memphis, Arkansas, by its
City Council, has caused this bond to be signed by the Mayor and City Clerk
thereof (with either the manual or facsimile signature of the Mayor, but with
the manual signature of the City Clerk) and sealed with the seal of the City,
and has caused the interest coupons attached to be signed by the facsimile
signature of the Mayor, all as of the first day of May, 1968.
CITY OF WEST MEMPHIS, ARKANSAS
By~ (facsimile signatu_re~___
Mayor
ATTES~z-- _~~~j ~ -~
C ity Clerk
(SEAL)
$ NO,
--------- May , _._____-
On the first day of Novernber, 19~, the City of West Memphis,
Crittenden County, Arkansas, unless the bond to which this coupon is attached
is paid prior thereto, hereby promises to pay to bearer solely out of the fund
specified in the bond to which this coupon is attached
_ DOLLARS
in lawful money of the United States of America, at the office of City National
Bank, Fort Smith, Arkansas, being six (6) months' interest then due on its
Public Utility Revenue Bond, dated May 1, 1968, and numbered -_____
CITY OF WEST MEMPHIS, ARKANSAS
By~acsim_ile signature _ ___.+
Mayor
On each bond shall appear the following:
CERTIFICATE OF AUTHENTICATION
This is one of the bonds of the issue of Public Utility Revenue Bonds,
dated May 1, 1968, and aggregating $416,000 in principal amount described in
the bond to which this Certificate is attached.
CITY NATIONAL BANK
FORT SMITH, ARKANSAS
By
Authorized Signature
Page 11
Section 7. That the rates to be charged for electric services fur-
Wished by the System, the rates to be charged for water services furnished by
the System, and the rates to be charged for sewer services furnished by the
System by all heretofore adopted and presently effective Ordinances of the
City Council, and the conditions, rights and obligations pertaining thereto,
as set out in those Ordinances, are hereby ratified, confirmed and continued,
The City covenants and agrees that the rates shall never be reduced
while any of the bonds are outstanding unless there is obtained from an indepen-
dent Certified Public Accountant a certificate that the net revenues of the System
(net revenues being defined as gross revenues less the expenses of operation
and maintenance of the System, including all expense items properly attributable
to the operation and maintenance of the System under generally accepted account-
ing principles applicable to municipal electric, waterworks and sewer systems),
with the reduced rates, vain always be equal to the amount required to be set
aside for the Depreciation Fund, and the amount necessary to comply wfth all
conditional pledges of any System revenues (on the assumption all payments will
have to be made to the full extent of the conditional pledges) , and leave a balance
equal to the amount necessary for paying principal and interest when due of the
1945' and 1949 Sewer Revenue Bonds, plus at least 200% of the aggregate average
annual principal and interest requirements on all outstanding bonds of the 1954
Utility Bonds, 1956 Utility Bonds, 1963 Utility Bonds, 1967 Utility Bonds, the
bonds of this issue and the bonds of any subsequent parity issue, The City fur-
they covenants and agrees that the rates shall when necessary, from time to
time, be increased in an amount which will produce net revenues at least suffi-
cient to provide the required deposit into the Depreciation Fund, comply with all
conditional pledges of any System revenues, and leave a balance equal to the
amount necessary for paying principal and interest when due of the 1945 and 1949
Sewer Revenue Bonds and meeting all principal and interest requirements of the
1954 Utility Bonds, 1956 Utility Bonds, 1963 Utility Bonds, 1967 Utility Bonds,
t
-- Fttge 12
the bonds of this issue and the bonds of any si.ibseyuent p~~rity issue quid main-
tain all funds in connection therewith to the required level.
Section 8. Ti1at none of the facilities or services afforded by the System
shall be furnished without a charge being made therefor. In the event that the
City or any department, agency or instrumentality. thereof shall avail itself of
the facilities and services afforded by the System, the reasonable value of the
services or facilities so afforded shall be charged against the City or such depart-
. ment, agency or instrumentality and shall be paid for as the charges therefor
accrue. The revenue so received shall be deemed to be revenues derived from
- the operation of the System and shali be used and accounted for in the same
manner as any other revenue derived from the operation of the System, provided,
however, that nothing herein shall be construed as requiring the City or any
department, agency or instrwnentality thereof to avail itself of the facilities or
services afforded. by the System.
Section 9. The System shall be continuously operated as a revenue
producing undertaking, and all moneys received from its operation shall be
deposited in such depository or depositories for the City as may be lawfully
designated from time to time by the Council, subject, however, to the giving of
security as now or as hereafter. may be required by law, and provided that such
depositories shall hold membership in the Federal Deposit Insurance Corporation.
Section 10. Since the bonds are being issued on a parity of security
with the outstanding 1954 Utility Bonds, the 1956 Utility Bonds, the 1963
Utility Bonds and the 1967 Utility Bonds, the bonds are to have the benefit
of and are to be governed by the ordinances authorizing and directing the issuance
of those bonds, including particularly Ordinance No. 526 authorizing the 1967
'' Utility Bonds becuase Ordinance No. 526 deals comprehensively with all aspects
i
of the System and its operation and with the collection, depositing, securing,
investing and disbursing of System Revenues, and with the rights and obligations
of the City and the bondholders. Therefore, to this end, the applicable pro-
324
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,Wage 13
visions of Ordinance No. 526, including without limitation, Sections 7, 8,
` 9, 10, 11, 12, 13 (as hereinafter supplemented), 14, 15, 16, 17 (with the
bonds to be inserted so that the last part of the next to last sentence will
read (" * * * plus 150% of the maximum annual combined principal and interest
requirements in any year on all outstanding bonds of the 1954 Utility Bonds,
the 1956 Utility Bonds, the 1963 Utility Bonds, the 1967 Utility Bonds, the
bonds (.1968 Utility Bonds) and the bonds of the then proposed parity issue.") ),
18, 19, Z0, 21, 7.2, 23, 24, 25, 27 (the reserve figure of $200,000 in 27 (d)
' is hereby increased to $245,000), 28, 29 and 32 are incorporated herein by
reference.
Section 11. The 1967 Public Utility Bond Fund, created and being
maintained pursuant to the provisions of Section 13 of Ordinance No. 526,
shall be increased by the amount necessary to provide for the payment of the
principal of, interest on and paying agent's fees in connection with the 1968
i
Utility Bonds and to increase the reserve for contingencies therein by $45, 000,
with the maturity schedule of the 1968 Utility Bonds being as follows:
INTEREST
YEAR BOND NOS. PRINCIPAL MAY 1 NOVEMBER 1 TOTAL
(May 1) - -- _~ _~ _
1968 $ 8,360.00 $ 8,360.00
1969 1 - 30 $ 30,000 $ 8,360.00 7,760.00 46,120.00
1970 31 - 60 30,000 7,760.00 7,160.00 44,920.00
1971 61 - 90 30,000 7,160.00 6,560.00 43,720.00
1972 91 - 120 30,000 6,560.00 5,960.00 42,520.00
1973 121 - 152 32,000 5,960.00 5,320.00 43,280.00
1974 153 - 184 32,000 5,320.00 4,680.00 42,000.00
1975 185 - 218 34,000 4,680.00 4,000.00 42,680.00
1976 219 - 254 36,000 4,000.00 3,280.00 43,280.00
1977 255 - 292 38,000 3,280.00 2,520.00 43,800.00
1978 293 - 332 40,000 2,520.00 1,720.00 44,240.00
1979 333 - 374 42,000 1,720.00 880.00 44,600.00
1980 375 - 418 44,000 880.00 44,880.00
To this end, the increased payments into the 1967 Public Utility
Bond Fund shall be 1/5 of the next installment of interest and 1/10 of the next
principal
installment of ~, plus paying agent's fees,until the reserve for contingencies
Page 14
is increased to $245,000 and thereafter 1/6 of the next installment of interest
and 1/12 of the next installment of principal plus paying agent's fees.
Section 12, That ~nThen the bonds have been executed and the seal
of the City impressed has herein provided, they shall be delivered to the Trustee,
and the Trustee shall authenticate them and deliver them to the purchaser upon
payment in cash of the purchase price of $400, 000 plus accrued interest from
May 1, 1968 to the date of delivery (called "total sale proceeds"). The Trustee
shall handle the total sale proceeds as follows:
(1) The Trustee shall deposit the amount of the accrued interest in
the Bond Fund.
(2) The Trustee shall deposit the remainder of the total sale proceeds
in a special account in the name of the City designated "1968 Public Utility
Construction Fund" (called "Construction Fund") which shall be established
and maintained in the Trustee. The moneys in the Construction 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. The moneys in the Construction Fund shall
be disbursed solely in payment of the costs of accomplishing the improvements,
paying necessary expenses incidental thereto and paying expenses of issuing
the bonds not paid by the purchaser. Disbursements shall be on the basis of
checks or requisitions which shall contain at least the following information:
the person to whom payment is being made; the amount of the payment; and the
purpose of general classification of the payment. Each check or requisition
must be signed by the individual occupying the top managerial position of the
System, and in the case of all items of expense over which the Consulting
Engineers shall exercise supervision (which shall include all expenses except
engineering fees, legal fees, and expenses pertaining to the issuance of the f
3~6
Page 15
bonds) each check or requis'_tion shall be accompanied by a certificate signed
by the Consulting Engineers (or by a representative thereof designated by the
Consulting Engineers) certifying approval thereof. In the case of requisitions,
the depository shall issue its check upon the Construction Fund payable to the
person, firm or corporation designated in the requisition. The depository of the
Construction Fund shall be required to keep records as to all payments made on
the basis of requisitions, and the West 1vIemphis Utility Commission shall keep
records of all payments made on the basis of checks.
When the improvements have been completed and all required expenses
paid and expenditures made from the Construction Fund for and in connection with
the accomplishment of the Improvements and the financing thereof, this fact shall
be evidenced by a certificate signed by the person occupying the top~managerfal
position of the System and by the Constulting Engineers, which certificate shall
state, among other things, the date of the completion and that all obligations
payable from the Construction Fund have been discharged. A copy of the certifi-
sate shall be filed with the Trustee, and upon receipt thereof the Trustee shall
transfer any remaining balance. in the Construction Fund to the Bond Fund.
Section 13. That the Mayor is hereby directed to publish for one
insertion in '
which is hereby found and declared to be a newspaper published in the City and
of general circulation therein, this Ordinance, to which shall be attached a Notice
signed by him in substantially the following form:
'1!L"~W.:14~7fiS::1AKK#Z4PRMV?~IF1Wtll".!ii;lAU :. a'.:c.:: -.~.~~,., .. ,,,v.,:.,.. ....._.. ... ..
Page 16
NOTICE
Notice is hereby given that the City Coi_incil of the
City of West Memphis, Arkansas, has adopted the ordinance
hereinafter set out; that the City contemplates the issuance
of the Public Utility Revenues Bonds described in the ordinance;
that any person interested may appear before the Council on the
0th day of Amr+ 1968, at ~: _____ o'clock
~_. m. , at the usual meeting place of the Council held in the
City and present protests. At such hearing all objections and
suggestions will be heard, and the Council will take such
action as is deemed proper in the premises.
DATED this 6th day of June 1968.
BOB EDEN
Mayor
328
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,Page 17
Section 14. 'Phat the Trustee of the bonds issued hereunder shall
be City National Bank, Fort Smith, Arkansas. The Trustee shall only be res-
ponsible for the exercise of good faith and reasonable prudence in the execution
of its trust. The recitals in this Ordinance and in the face of tl~e 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 of not less than ten per cent (10%) in principal amount
'~I
of the bonds of this issue then outstanding and shall have been offered reason-
able 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)
days notice in writing to the City Clerk and the majority in value of the holders
of the outstanding bonds of this 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 out-
standing bonds of this issue may appoint a new Trustee, such appointment
to be 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 a vacancy within thirty (30) days after the same shall occur, then
the City shall forthwith designate a new Trustee by a written instrument filed
in the office of the City Clerk. The original 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 provisions 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
Page 18
powers herein granted to the original Trustee. In the event of a change in
the office of Trustee, the old Trustee which has resigned or been removed
shall cease to be Paying Agent.
Section 15. 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 16. 'that all ordinances and parts of ordinances in con-
e flirt herewith are hereby repealed to the extent of such conflict.
Section 17. That the presently existing West Memphis Utility
~ Commission shall continue in office and shall continue to have charge of
and shall perform the rights, duties and obligations of the City under this
Ordinance with reference to the accomplishment of the Improvements, the
operation and maintenance of the System and the collection and handling of
System Revenues and shall have and exercise with reference to the System
all authority and powers granted by the City Council and by applicable laws
of the State of Arkansas.
Section 18. That it is hereby ascertained and declared that the
Improvements must be accomplished as soon as possible in order to make the
System adequate for the needs of the City and its inhabitants, without which
the life, health, safety and welfare thereof are jeopardized, and that the
Issuance of the bonds and the taking of the other action authorized by this
Ordinance is necessary for the accomplishment thereof. 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: _ Juane 6 1968.
ATTEST• 7~ -"'
~.
City Clerk ~ l/
(SEAL)
APPROVED:
/ / ~_
Mayor
x .'~..
33
Mayor Eden recommended the reappointment of J. D. "Don" Burnett to the Airport Commission
and W. H. Hundhausen to the Utility Commission. Thereupon, motion was made by Alderman
Leggett., seconded by Alderman Horton: That the appointments of J. D. "Don" Burnet as a
member of the Airport Commission and W..H. Hundhauset as a Utility Commissioner be confirmed.
Upon vote, the voting was as follows:
Ayes Aldermen: Haley, Horton, Leggett, P4atthexs, Rodgers, Smith, and Weis.
Nay: None.
Mayor Eden brought to the Council's attention the 1st Council Meeting in July would be on
July hth a holiday. After discussion, motion was made by Aldermax Leggett, seconded by
Alderman Weis: That the 1st Council Meeting in July be held Tuesday, July 2, 1968, at
3:00 P.M. Upon vote, the voting was as follows:
Aye: Aldermen: "Haley, Horton, Leggett, Matthews, Rodgers, Smith, and Weia.
Nay: None.
The committee composed of Aldermen Rodgers, Smith, and Leggett appointed to study privilege
licensee stated will present their report at a later date.
City Attorney Wallin advised the Council after consulting with other City Attorneys and
the Executive Director of the Arkansas Municipal League, he was of the opinion a vote on the
question of levying an annual tax of one mill for the Firemen's Relief and Pension Fund and
one mill for the Policeman's Relief and Pension Fund should be at a regular General Electi®n.
Initiative Petitions prepared by the City Attorney and procedural requirements were dison~aed.
Alderman Smith brought to the Council's attention the health problem caused by the deep ditch
at 227 S. Worthington Drive. After discussion, motion was made by Alderman Weis, seconded by
Alderman Leggett: That the City install drainage pipe and Mra. W. S. Waver, owner of the
property, pay one-half the cost of the pipe. Upon vote, the voting was as follows:
Aye: Aldermen: Haley, Horton, Leggett, Matthews, Rodgers, Smith, and Weis.
Nay: None.
Alderman Haley brought to the Council's attention the dangerous intersection at Missouri Street
and Interstate Service Road. Mayor Eden stated the Highway Department had been contacted about
the matter, but refused permission for installation of additional controls. Report was made
on progress of new traffic control light at Graham and Missouri Streets.
There being no further business, the Council adjourned.
,, I
~' A
Y`
/'~ ~._.~
j % ~ ~ :/
ATT~iT:s~ //~~~~/
APPROVED: JUNE 20, 1968