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07/09/40 - 12/02/40'' /~~ MIPN1'ES OF MEETING OF CITY COUNCII eF 9i'E~f OF SST MEMPHIS ^ R GUTA , , , r : R LIEETIVG TUESIIAY JULY 9th, 1940; ., :*±tr On Tuesday, the 9th day of July, 1940 the City Council of the City of West Memphis, A r>~~as mat in regular session at eight otcl onk P. M. in the Council Chamber, City Hell Uliilding, with the following Liem~iers, present: Wayor W. H. Hundhausen, J 0 Spotts, Recorder, F E Denson, 0 I Bollinger, Melvin Dacus Aldermen, and Doyne Dodd, City Attorney and C H B d, Engineer. Upon call of the roll, the lviayor.deolared aquorum present, and the following proceedings were had towit: City Engineer Pond putlined a proposed street improva:nent proj9ct ~'or oonsider- ation of the Council, and after disoussion, it was agreed by the members present to proceed with said street improvements as follows; Gravel Bond Street from Pliodas to Avalon , " Oliver " " Ehoden to Avalon, " Barton " " Rhodes to Avalon, " Rhodes " " I?i~hway ~;~70 to Dliver, " Hance " " Hightmy ----,~~-Sl to Frisco )~e.ilway, Finish gravelling Pine Street, Gravel 9th Street from Edison to Jackson , " Jackson Street from 8th Street to 9th Street, " Woods from Pope to Harrison, " First Street from Bope to Harrison, " Harrison from 2nd to i+oods Street, " Redding frorcn Danner to iIighway ~70~ " Redding f rcrm Roosvelt to~ Barton, ` ' ~ ~~ It was uiutnimously agreed by the Council to pay Jimmy &ioore, employed by the ,,..:,' L'ayor to collect street taxes, the sum of 20f of the amounts of cash collected by the said Jimr~* Moore, payable each four weeL-s, beginning. July 13th 1940. It teas ueanimously agreed by the Council to ra-instate the salary of the City Attorna3~, Doyne Dodd, X25.00 per month, rotroaetive to the first of July 1940. There being no further business to came before the Council, same was adjourned tc meet again at the same hour and place on Tuesday, the 28x'd day of July, 1940 by order of the 2iayor. V;. H. HUl~USEN, liayor; ATTESTS J 0 SFOTTS, RLCOFiDnR. MINUTES Parouaitt to last adjournment, the City Counoil of the City of West i~emphis met in the Council Chambers, City Ha11 Building at eight o'oloak P. M. on Tuesday the 23rd day of July, 1940 with the following members present: W H Hundhausen, ~"ayor, J 0 Spotts, Reoorder, F E Denson, 0 I Bollinger, and Melvin Dacus, Alderman. The following proceedings were heal towit: Mayor Hundhausan, presiding advised the Council that no matters of.i*upvntance need attention at this. tune, and asked that the council be adjourned, to meet again at the same hour'•and place on Tuesday the 30th day of July, 194Q, which upon prroper motion and -second, was duly ordered by the oouncil. There being no further business, and upon proper motion and second, the council adjourned until 8 P. i~. July 30th. W. H. HUPIDHAUSEP,, Mayor, ATTEST: J 0 Spotts, Reoorder. On Tuesday the 10th day of September, 1940 the City Council oP the City of Wast Memphis met ~t~regular session in the Council C~iamber, City Hall Building at 8:00 P. M. with the`Pollowing members preaeirt: W. H. Hundhausen, Mayor J. 0. Spotts, Recorder Doyne Dodd, City Attorney C. H. Bond, Engineer k H. Inglias, Assistant Engineer F. E. Denson, Alderman 0. I. Bollinger, Alderman Melvin Dacus, Alderman Mayor Hundhausen declared a quorum present and the following proceedings were had, to~rit: Alderman, 0. I. Bollinger intnoduoed the following Ordinance and moved r-I its adoption, Alderman Dacus seconded this motion. ,,;.~,,. '~`~ ORDI$ANCE N0. 82 °~~ ~' ~ _... ~ AN CiiDIlY~NCE PROVIDING FQ2 THE MANNER OF MAKING LIGHT AND WATER CONNECTIONS. BE IT ORDAINED BY THE COUNCIL OF THE CZTY OF WEST MEMPffiS, ARKANSAS, IN REGULAR SESSION ASSEMBLED: SECTION 1. That before the West Memphis Power-and Water Company, or s2~r other power or light company within thecorporate limits of Weat Memphis shall make connection with any building of eay nature or description, whether business or residential, said company shall first obtain a permit from the City Engineer that the electrical wiring of said building has been inspected and approved by the City i Engineer. "'~f SECTION 2. That before the West Memphis Power and Water Company, or a other ny oompax~y shall make a water connection to a'ay building whether buaiaess or rear dentiel, of ax:y. other type whatsoever, said oompatry shall first obtain a permit from the city engineer that said plumbing has been inepeoted and approved by said City Engineer. SECTION 3. That if arq. paver or water company, including the West Memphis Power and water company, shall make either of the above electrical or water aonneotiane, ' without first having obtained a permit from the City Engineer, said company shall ,. ', :'be sub~eot toe penalty of X50.00 dollars for failure to comply with this ordinance. ,~ ;' i~. SECTION 4. Any individual, business, firm, or oorparation making a p¢°ivate light or water connection of any nature not included in the above sections or without ` ~.~firat having obtained permits from the City L}~gineer, shall be sub~eet to a fine of ~25.Q0 Dollar a, for failure to comply with the terms of this ordinance. SECTION 5. All ordinances and/or parts of nrdinancea in conflict herewith are hereby specifically repealed. SECTION 6. Whereas, failure to comply with this ntldinanoe will probably result in faulty electrical wiring and plumbing in buildings within-the corporate limits of the City of West Memphis, which might result in fires, electrical shocks "; to individuals, or property damage, it is therefore necessary to the peace, health, ° and safety of the citizens of West bSemphis that this ordinance be, and it hereby l is declared to be in full force and effect from and after itts passage and publication as required by law. Motion was made by Adlerman F. E. Denson that the rules be suspended and the Ordinance read the second time. This Motion was seconded byTAdlerman, Dacus and the Ordinance was thereby read the second time. Motion was made by Melvin Deaue that the rules be suspended,. the or dinanae `~ read the third time and placed on final passage. This motion was seconded by 0. Ii Bollinger and the Ordinance was thereby read the third time and the question being upon it's adoption the roll was called and the result of the vote is as follass: u; „~ ~'~~'~ AYES NAYES F. E. Denson NOS 0. I. Bollinger Melvin Dacus W. H. Hundhausen. NAYES The said ordinance was thereby deolared adopted, including the emergenoy olause the Recorder was instructed to spread same upon the reoord of the Ordinances oP the City of Weat Memphis, to have same published as required by Law and to number said Ordinance Number 82. j The following resolution was inbroduoed by Alderman 0. I. Bollinger who moved it's adoption. BHSOLUTION Whereas, J. C. McCaa and Jack W. Rich far the use and benefit of themselves cad ell the tax payers, residents, citizens, and qualified eleotors of the City of West Memphis, Arkansas, have filed suit in-the Chancery Court of Crittenden Coux:ty, Arkansan, against the City of West Memphis, and the Mayor and Recorder of said City cad the City Council thereof, and Whereas, it is alleged in said law suit the said City and City Council do not have the right to puroheae and acquire the transmission system of the We at Memphis Power and 4Yater Company which right has been expressly decreed by the Supreme Court of Arkansas, and 1Yhereea, the City Counoil and the City of Weat Memphis by William H. Hund- hauaen, Mayer, and Aldermen 0. I. Bollinger, F. E. Denson, and Melvin Dacus have retained Frazer and Clifton, Attorneys, to represent the City Counoil and the City of West Memphis and to take what other action as is necessary to protect their respective interests, and Vlhereas, it is to the best interests of the City of West Memphis thettthe afore said suit be defended and proper defanae be made, and it is also-proper that the City of West Memphis should pay suoh attorneys fees as may be inourredloy reason of defanae of said suit; Now, therefore, be it resolved by the City Counoil of the City of West Memphis, in regular monthly meeting on this 10th day of September, 1940, ths.t the employment of Fraser and Clifton, Attorneys, is hereby mat3e, ratified, and confirmed Be it fort her resolved that Frazer and Clifton, attorneys, be and they are hereby employgd f~.the,purpo6e of, and authorised and directed to institute suit against the West Memphis Power and Water Company and all other persona as they may deem necessary as parties, for the purpose of causing the West Memphis Pourer and Water Company to render and to account to the City•-o$ Weat Memphis for the revenues received by said West Memphis Power and Water Compaz~* from the operation of its electrical properties since August 28, 1936, or such part of suoh revenues as are recoverable by the City; Be it further resolved that the said City of Weat Memphis, William H. Hund- hauaen, as Mayor, J, 0. Spotta, as Recorder, end the Board of Aldermen as such do hereby employ Frazer and Clifton, attorneys, to defend the suit filed in the United States Court for the Eastern District of Arkansas, Jonesboro Division on the 10th day of September, 1940, and sled Southeast Power and Light Compar{y against the City of West Memphis, et el. Alderman Melvin Dacus seconded the motion relative to the adoption of said resolution and upon cell of the roll the votes with reference to adoption was as follows: AYES F. E. DENSON 0. I. BOLLINGER MELVIN DACUS W. H. HDNDHAUSEN NONE i I ~ i 25] Ssid resolution was thereby declared duly adopted and the Reoorder instructed to oorporate same in the miaute~record of the said City. The City Engineer was authorized to paint parking lanes Rmi zones on the Streets of the City of West Memphis where needed. ' CD ~.c~ d ~i C All the bills payable were presesst'ed to the Council by the Reoorder and upon motion of F. E. Denson and properly seoonded by 0. I. Bollinger the Recorder was instructed to draw warrants end the Treasurer authorized to pay same covering the following bills and accounts due by the City of Weat Memphis. S. 1Y. Bell Tele Co., X72.13 6roea Co. Gravel Co. $485.70 Standard Oil Co. 15.10 C. H. Bond, Eng. 593.49 1Yallia Diokey R. Lbr. Co. 45.14 Stamps 10.00 McCaa Chev. Co. 3.45 S. C. Toot & Co. 100.00 Elkhart Braes 1~ifg. Co. 70.05 B. F. Goodrich Co. 75.00 Orgill Bros de Co. 36.87 Howze 17.10 Stratton Warren Hdw. Co. 3.00 E. H. Clarke 9.00 Crittenden County Times 70.40 Sinclair 60.50 City of West Memphis Sewer 10.A0 VP. G. Parker 36.45 VPest Mfs. Lumber Co. 4.37 0. I. Bollinger 7.00 Southern Blind Co. 12.16 Ark. Munc. League 30.00 Dacus Lbr. Co. .90 C. 0. -Pilliamson & Co. '71.84 F. & S. Eleotrio Co. 70.44 1dcCarter Dairy 8.02 I . M. Harms 8.00 F. M. Causey Ptg. Co. 25.00 Riggs Traotor Co. 81.44 t'Vest Mfs. Power & -Y. Co. 135.41 Same Sewer 43.53 Same Com.House 12.64 Same City Hall 28.88 Spotts Drug Co. 4.00 _ L. B. Jones & ion 8.40 _ H. Inglias - Coal 22.14 Bragg Service Co. 585.12 E. B. Crawford & Co. Dr. Ralph Hamilton J C h A 7.50 yr ~~ r~. ~ , y ~ .~'` 2.00 ;~~ L_ K ~ "' ' ' " o nson uto o. 2.60 ~ ~ ~ There being no further business to oome before the Council and upon proper motion e.nd second same was duly adjourned to meat again at the same hour and plane on Tuesday, September 17, 1940. y~ ~, I ~~` '/ ~ `,".' , , ,...., ~ HU S E H HAU W. H. MAYQ~ ATTEST J. 0. SPOTTS C ~~~,' MINUTES On Tuesday, September 17, 1940 the City Council of the City oP West bdemphis met in ea ad3ourned mession at 8:00 0~olook P. M., City Hall Building with the following members present: W. H. Hundhauaen, Mayor J. 0. Spotts, Recorder -- „~:, F. E. Denson .'.Alderman 0. I. Bollinger Alderman `~~' °r~ Melvin Daous A13arman The Mayor declared a quorum present and the following proceedings were to wit: It was unanimously agreed by the City Council to pay ffiarous Feltz, Master Engineer in the Suit involving the Power and Light System the sum of Eleven hundred and twenty five Dollars same being one half the fee established by the Chancery Court of Crittenden-County ae compensation for his services in said matter. It was unanimously agreed to pay e11 Aldermen amounts due for compensation for monthly meeting attendance to da~e and to pay Lummie Ward Twenty Seven ($27) for cutting weeds on the vacant lots in the City of West Memphis and to pay James Moore the sum of Thirty Dollars (~30) to compensate 'him for warning of Street taz and City Auto Tags issued by the said James Moore to date. ' There being no further business, and upon proper motion and second, the ~~was duly adjourned to meet again at the same hour and place on Tuesday, September 24, 1940. MINUTES On Tuesday, October 8, 1940 the City Council of the City met in regular session at 8:00 O~olock P. M. in the City 'Hall following members present: W. H. Hundhausen, J, 0. Spotts, Doyne Dodd, Hugh Inglis, F. E. Denson, 0. I. Bollinger Melvin Dacus Mayor Recorder City Attorney Assistant City Engineer Alderman Alderman Alderman The Mayor declared a quorum present and the towit: of West Memphis Building with the ~i~ following proceedings were k~!td Robert Dilport, Farm4-Security Administrator for Crittenden County came bef ore the Council with a proposal of renting office space in the City Hall Building and said proposal was unanimously declined by the Council. The following Ordinance wen introduced by Alderman, 0. I. Bollinger, seconded by Melvin Daous, Alderman, and read the first time. ...... ....~__ N.i. QtDINANCE N0, 83 ,,,,,.,.~ `"".w. . AN ORDINANCE TO PROVIDE THAT THE~RATES AND CHARGES FOR SEGPFRGE SERVICE FURNISHED BY THE MUNICIPALLY (TINNED SEWER SYSTEM OF 4NEST MEMPHIS V7HEN NOT PAID 'b0 CONSTITUTE A LIEN AGAINST THE PROPERTY SERVED THEREBY. AND TO PROVIDE FOR THE COLLECTION OF SAME, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF WEST MEMPHIS, ARKANSAS, IN REGULAR SESSION ASSEMBLED: SECTION 1. That all rates and charges for sewerage service furnished by the municipally Awned sewer system of West Memphis if not paid when due shall s constitute a lien II[ ~~~~~ on the premises served by the municipally avmed sewer system, and such rates shall constitute a lien upon the free title to the land and permane~ improvements thereon served thereby. If the said service rate or charge is not paid within thirty days after the same becomes due, the amount thereof together with a penalty of ten J I '~ 1 I 2 5 ~, x., • :.~ _ ~x~ percent and a reasonable attorney's fee may be recovered by the Sewer Committee by suit filed in the Crittenden County Chancery Court in the name of the Incorporated City of West Memphis, or in the name of the Trustee in the indenture securing the revenue bonds issued for the building and construction of said municipally owned sewerage ay stem, or in the name of the bondholders (to suoh extent as their right to sue is their own Weems may be permitted under said indenture), and in which suit said lien may be fore- closed against such lot, parcel of land, or building. I~ ~ SECTION 2. The rates and charges as fixed by the Sewer Committee shall be due and payable monthly, and shall be collected by the sewer Committee or suoh ~'~-I persons ea it may designate, and shall be handled and disposed of as in the manner fixed by ordinance. BECTION 3. It appearing that sewer rentals are not being paid promptly and in bhme oases are not being paid st all, and that the Pailure to collect these rentals creates a danger of failure to retire bonds that were issued to construct the sewer system, and to liquidate operating expenses incurred by the sewer system; ~ and that by reason of said failure the sewer system would necessarily oeeae to ~ operate thereby endangering heellth of the citizens of West Memphis, therefore, an ~,' emergency is declared to exist and this ordinance being necessary for the immediate pq preservation of the public pease, health, and safety shall take effect and be in force from and after its passage and publicatlio~n,~as required by law. W. H. Hundhausen~- ~dAYCl2 ATTEST: J. 0. , Recorder notion waa'made by Alderman, F. E. Denson and seoonded by Melvin Dacus, ~111I~~~JJJj Alderman, that rules be suspended and the Ordinance be read the second time, which was done. Motion was then made by Alderman, Melvin Dsous and seoonded by Alderman, 0. I. Bollinger tj~leb the rules be suspended, the Ordinance read the third time and placed on ~f'~ passage. Following the third reading pf said Or dinanoe the question being upon its adoption the roll was celled by the Recorder and the result of the vote is as follows: • AYES NAYES lg. H . Hendlon~: s :::-„ (None ) 0. D. Bollinger Melvin,l)eaus Vf. H. Hundhausen i4hereas said Ordinance was declared duly adopted, the Recorder was i'egae:s~kid to spread same upon the record of the Ordinances of the City of West Memphis, to have same published as required by Law and to number said Ordinance Number 83. The following Or dinanoe was introduced by Alderman Melvin Dacus and seoonded by F. E. Denson and read the first time. OR DINA ~ Y, . • NUMBER l~(~ ~ ~~` AN ORDINANCE AMENDING CRDINANCE NIIMBER 33 E CITY OF ~ST MEMPHIS. BE IT CgtDAINED BY TfiE COUNCIL OF THE CITY OF WEST MEMPIiIS, IN REGULAR SESSION _' ASSEMBLED, SECTION 1. That Or dinanoe Number 33 of the Ordinances of the City of Weat Memphis shall be, and it hereby is amended to read as follows: In addition to the persons, firms and corporations, hereinabove named in Section Number 1 of Ordinance Number 33 the following persons, firms and oorporationa shall hereinafter be included in the Ordinance, and an annul license fee, to be known as a Prililege or Occupation Tax shall be levied against deem in the amount sat opposite the name of the trade, business, pr ofeasion, vocation and~or calling SHEET BdETAL WCfftRS ......................................$25.00 BIITANE GAS & ACCESSORIES ............................... 50.00 POTTERY, RETAIL ............................:........... 5.00 CEMENT PRODUCTS, POTTERY, 1~ANUFACTURING AND~OR WHOLESALE 10.00 WHOLESALE TIRES AND TUBES ...............................25.00 WHOLESALE AND~~i RETAIL FISH., ..........................10.00 WHOLESALE AND~OR LIVE MINNOWS ...........................10.00 SECTION 3. It appearing that the City ie in sore need of revenue with which to build and repair streets, and make other improvements necessary to the public peeae health and safety of the citizens of the City of West Memphis, and emergency is declared to exist, and this Ordinance shall be in full force and effect from and after its passage and publication. W. H. Hundhausen MAY PASSED ATTEST Following the reading of said Ordinance, motion was made by F. E. Denson and seconded by 0. I. Bollinger that the rules be suspended and the Ordinance read the third time and be placed on files for final passage. Then, following the third reading of said Ordinance, the question being upon its adoption, the roll was called by the Recorder, and-the irote being as follows: AYES NAYES W. H. Hundhausen, Mayor (None) F. E. Denson, Alderman 0. I. Bollinger, Alderman ~~~ Melvin Dacus, Alderman 1 U/ Tt was unanimously n®aedd~ed by the Board to grant a one half priwe reduction in all city Auto tags issued following this date. The following Resolution was introduced by 0. I. Bollinger, and eeoonded by Melvin Dacus and unanimously adopted by the Council: RESOLUTION i BE IT RESOLVED THAT the City collector be hereby authorized to issue City License tags for the remaining part of the year of 194n for one half price and to collect not more than One Dollar and fifty cents (1.50) for each tag issued during the rest of the year of 194A The follv~wing bills were authorized for payment and the Recorder directed to issue warrants dad the Treasurer to draw check in payment thereof. Lummie Ward....... ...27.00; Boy Scouts..... .......100.00 Union Labor Review.....75.00 It was unanimously resolved by vote of the Council to employ Hugh Inglis es Supervisor of street improvement, repair and maintenance and other City sponsored pro~eote which may follow within the duties of such Supervisor and that his salary by placed at Fifty Dollars (50.00) per month. There being ao further business, and upon proper motion end second, the meeting was duly adjourned. i MINIITES On Thursday, October. 30, 194 the City Council of the City of West Memphis met in a special called session in the Council Chamber a, City Hall Building at 9:00 A.M. ell members having had dde notice as required by Law and the following being present: ~P. H. Hundhausen, Mayor J. 0. Spotts, Reoorder Dayne Dodd, City Attorney 0. I. Bollinger, Alderman I. L. Ovrens, Alderman R. C. Breece, Alderman F. E. Densoni,~ Alderman Homer Jones,-.Alderman Melvin Dacus, Alderman J ohn M. Smith, Attorney of Marion, Arkansas and Clarence 6lifton, Attorney of Memphis, Tennessee were also present. The Mayor declared a quorum present and the following proceedings were ~_-'' had to-wit; Mayor Hundhsuaen explained to the Council a proposal received from the Vest Memphis Power and %atet Company relative to a oompromised aeEtlement in the litigation now pending with reference to the ownership to the Power & Light u8®:r~ti~s. ,± The following resolution was introduced by 0. I. Bollinger and seconded by Melvin Daous. ~ RESOLUTION L'J G~ d ~ WHEREAS, much litigation has arisen with reference to the ownership and operation of the power and water utilities of the City of West Memphis, and WHEREAS, said litigation has proven and is proving very expensive to the City of West.luiemphis as well as to the West Memphis Power E: YYater Company, and 'NHEREAS, the City of West Memphis has received a proposal from the West Memphis Power ~ Water Company whereby the said City of West Memphis may buy, and the ,said West Memphis Power & Water Company agrees to sell the power, light, and water utilities at a price and terms to be later agreed upon, now I THEREFORE, be it resolved that the hayor of the City of West Memphis be, and - he is hereby authorized to enter into negotiations on behalf' of the City of West Memphis vrith officials of the 1Yest Memphis Power & Water Company in order to work out a definite and amicable agreement to be later submitted to the City Council for its approval. The question being upon the adoFtion of said resolution, the roll was called, and the following voted in the affirmative: AYES NAYES P. M. Dacus None I. L. Owens R. C. Bresse F. E. Denson Homer Jones 0. I. Bollinger ~I There being no further business to come before the meeting, and upon motion with proper second the meeting was duly adjourned. ATTEST: J. 6. TTS R r er ,fir' x au~rmxA°"~.".~ MAYOR ~5ti wr, :..;~ hINDTES ~, On Tuesday the 12th day of November, 1940, the City Council of ' the City of West Memphis met in regular session in the City Hall Building at 8:00 o~clock p. m. with the following members pre sent: W. H. Hundhausen, b~ieyor F. M. Dacus, Alderman Doyne Dodd, City Attorney R. C. Breese, Alderman I. L. Owens, Alderman F. E. Denson, Alderman 0. I. Bollinger, Alderman i WHEREAS, the Council of the City of West b4emphis has been petitioned by certain citizens of said city to make certain street improvements, and s, 1NlIEREAS, said City Council after investigation finds that said improvements should be made, NOW, THEREFORE, BE IT RESGLUED by the Council of the City of West ~Gemphis, in regular session assembled, that Hugh Inglis, assistant City Engineer, be and is hereby authorized to gravel and improve Worthington Fark Drive, the one block of Polk Street immediately adjacent to and running along side Woods Fark, and one block of 18th Street. Be it further resolved that the said Hugh Inglis, assistant City Engineer, be and he hereby is authorized to purchase such shrubbery necessary for the beautification and the land- scapin~; of the City Hall grounds, said purchase not to exceed seventy-five (75.00) dollars. MAYOR PASSED: November 12, 1940 ATTEST: Upon proper second the question being upon the adoption of said resolution, the roll was called and the vote being as follows: AYES NAYES P, bi. Dacus None I. L. Owens R. C. Breese F. E. Denson 0. I. Bollinger There being no further business to come before the Council, and upon motion with proper second the meeting was duly adjourned. W. H. HUPdDHAUSEN MAYOR ATTEST: UT TS ER I 1 25'7 MIPdIITES On Monday December 2, 1940, the City Council of the City of West Memphis met in a special session at 3:00 o'clock p. m. All members having had due notice as recuired by law, and the following being present: W. H. Hundhausen, Mayor I. L. Owens, Alderman r"' J. 0. Spotts, Recorder P. M. Dacus, Alderman.. Doyne Dodd, City Attorney Homer Jones, Alderman R. C. Breece, Alderman F. E. Denson, Alderman 0. I. Bollinger, Alderman Whereupon the Mayor called a quorum present, and the following proceedings were had to wit: Pursuant to resolution duly adopted by the City- Council at a special meeting held on October 30, 1940, the following contract and ~ agreement for purchase of the assets of the West Memphis Power & Water ~ Company was presented to the Council for its approval: d' ~ AGREEMENT THIS AGREEMENT, entered into this ~ day of ~ Q~ , 1940, by and between the WEST MEMPHIS POWER 3: WATER COMPANY, an Arkansas corporation, with its principal office attd place of business in West Memphis, Arkansas, hereinafter referred to as the "Company" and the CITY OF WEST MEMPHIS, ARKAidSAS, a municipal corporation, organized and existing under and by virtue. of the laws of the State of Arkansas, herein- ~' after referred to as the "City": WITNESSETH: 'Nf~REAS, the Company owns and operates an electric generating and electric distribution system and also a water system in the City of West Memphis, Arkansas, and said properties are operated under separate franchises from the City; and,. WHEREAS, it is provided in said franchises that on oertain terms and conditions the City may acquire both the electrical and water properties in said City, and, i'YfiEREAS, a dispute has arisen between the Company and the City as to the proper construction of the franchise under which the Company operates its electrical property in said City and the rights of the parties there- under, and said dispute has resulted in protracted litigation both in the Courts of the State of Arkansas, and the Supreme Court of Arkansas has entered a decree directing the said City to acquire the Company's electrical distribution system within said city on the terms and conditions specified in said decree and appeals are still pending in that litigation and the Company still maintains the City must purchase both the electric generating system and the distribution system; and, ('~ WHEREAS, the City desires to purchase and acquire the water properties of the Company in West Memphis, Arkansas, under and pursuant to the terms of the franchise granted to the Company and has so signified to the Company -- as provided in said franchise; and, WHEREAS, it is the desire of all parties hereto to end all litigation and controversy regarding said franchise by the purchase. by the City of all of the electric generating and electric distributing system and also the water system of the Company in said City upon the terms hereinafter specified, under and pursuant to said franchise and under the condemnation proceedings heretofore instituted, and that might in the future be insti- tuted, by said City for the acquisition of said properties, or any of them; ,~ ..3~ Py 4 ''~ aa',~ ~. sir ;~~:' e ~~ w s-,'; € .r nOW, THEREFORE, in consideration of the premises, and the mutual promises, covenants and conditions herein set forth, it is mutually agreed as follows:- 1. The Company will sell all of its electric properties within and contiguous to the City of West Memphis, including both distribution and generating system, and all its water propertiea within and contigu- ous to the City of West Memphis, including inventories used in connec- tion with said systems, and also certain office equipment to be agreed upon, for the sum of Two Hundred and Ten Thousand Dollars 0210,000.00) and the City by these presents covenants and agrees to buy said Proper- ties at said prioe upon the terms hereinafter specified., It is mutually agreed and understood that this contract relates to the sale of all of said electrical and water properties, which said electrical property includes both the distribution and generating systems; and that this is a mutual agreement between the parties hereto relating to the rights of said City to acquire said properties under the existing franchises and is pursuant thereto. 2. In determining the purchase price of X210,000.00 the value of the distribution system of the electrical properties is taken to be the price established in the litigation between the parties hereto in the Courts of the State of Arkansas and the sale is deemed to be compliance by the Company with the decrees in said litigation now pend- ing between the parties hereto in the Courts of the State of Arl~nsas relating to said electrical properties. 3. Upon the payment by the City of the purchase price in the manner herein agreed upon, the City will acquire title to said electrical and water property as of December 1, 1940. However, this is an interim • contract, and pending the payment of the purchase price to the Company, the Company shall retain the title to said property, but shall deliver possession to Roger Baumann, who shall hold such possession as agent both of the •Company and the City. It is understood that any and all income accrued prior to Deoember 1, 1940, shall belong to the City, provided the purchase price is paid to the Company by the City in accordanoe with the terms of this agreement, and until said purchase Price is paid, said funds are to be held, used and disbursed by the said Roger Baumann as hereafter provided in this agreement. 4. The properties to be sold by the Company to the City, until the purchase price is paid to the Company as herein provided, shall be operated by Roger Baumann of the City of West Memphis, Arkansas, as the Agent of both the Company and the City. (In the event of the refusal of the said Baumann to so act, or his death or incapacity, the parties hereto shall mutually agree as to his successor who shall have all the rights and powers as if originally named herein.) Said agent or his successor is hereby mutually authorized as follows: (a) To operate the properties as General Manager pending payment v of the purchase price by the City to the Company as herein provided. (b) To collect, for the Company, all revenues earned prior to December 1,.1940, and remit the same to the Company. (c) All revenue earned and collected after December 1, 1940, she 11 be deposited in the ~ ~,~ ,~. , 3,L~~„.1 ~ of ' in the name of Roger Baumann, Ag nt for t e ity of West Memphis, Arkansas, and West Memphis Power & Water Company, Out of the funds so collected, the said Roger Baumann, as said Agent, shall pay as authorized and directed by the City all necessary salaries, operating expenses and maintenance of said property. i ~V 'J C~~ s-I r~ L'~ d d i 259 The said Roger Baumann agrees to use, each ninety days, any balance of income in excess of said necessary expenses: first, for the payment of interest at the rate herein provided on any unpaid purchase price due the Company, which interest is to be paid each ninety days after December 1, 1940; second, out of the balance above interest requirements, the said Roger Baumann will accumulate and retain as an interest free debt, due to the Company, sums up to $5,000.00, to be used as working capital; and third, and balance over and above said aforesaid items shall be used each ninety days to apply on any unpaid purchase price due the Company. The debt created by the retention of fluids as herein provided for working capital shall be discharged when the City completes the purchase of the properties according to the terms of this agreement, and the sums so retained shall belong to the City, but if the City fails to complete said purchase of the properties according to the terms of this agreement, the City shall remain indebted to Company for said sums, which shall bear interest at the legal rate after default. (d) Until such time as the Company shall receive the full purchase price provided for herein, said property shall be maintained in as good condition as he rat of ore maintained by the Company subject only to normal depreciation. 5. The City shall expeditiously proceed to procure the funds with which to pay the agreed purchase price, and it is understood that the City will first try to secure financing on the water (which will require the release of the properties and conveyance to the City) properties by the sale of bonds to third parties and out of the sale of said bonds there will be paid and delivered to the Company a minimum of Seventy-five Thousand Dollars 0 75,000.00); provided, however, that in the event the City is unable out of said financing to pay the Company X75,000.00 in cash, it will deliver and pay to the Company a minimum of X65,000.00 and the difference between said X65,000.00 and X75,000.00 shall be paid out of the revenue of said water properties in excess of necessary expenditures, including interest and amortization of the bonds but subject to any require- ment contained in the indenture under which the bonds are issued, until the Company has received the sum of Seventy-Five Thounsand Dollars 075,000.00) in cash; the balance of the purchase price or One Hundred Thirty-Five Thousand Dolls rs 0135,000.00) will be represented by evidence of indebtedness of the City payable solely from the net revenues of the electric plant, which indebted- ness shall ti'e assignable and secured by the electrical properties, both distri- bution and generating system, and the terms and conditions of the instrument securing said unpaid indebtedness shall contain all usual and reasonable provisions for the protection and security of the Company, including provisions relating to any default on the part. of the City to discharge the obligations secured thereby according to their terms. 6. Said evidences of indebtedness shall bear interest at the rate of four percent (4J) per annum from the date of their issuance and shall be payable annually so as to amortize said balance with a period of thirty (30) years or less, and shall contaia a provision granting to the City the right of prepayment. The certificates of indebtedness will be payable only from net revenue remaining after expenses of operation and maintenance have been paid and do not constitute a debt of the City within any constitutional or statutory limitation and are not general obligations of the City. ' 7. It is expressly agreed and understood that said evidences of indebtedness and the validity of any instrument securing the same shall be subject to the approval of counsel selected and designated by the Company. -- 8. On and after December 1, 1940, the City agrees to pay interest at the rate of four per cent (4~) per annum to the Company on the entire purchase price of Two Hundred and Ten Thousand Dolls rs 0210,000.00) or any balance thereof, until paid. 9. The City agrees, until the purchase price has been paid to the Company as herein provided that it will not, of its own volition, reduce the rates for water or electricity to consumers, without first receiving the Company's consent in writing to such reduction. z~ . ;~, 10. Both the parties hereto agree that they will execute any and all instruments, deeds, ordinances and resolutions necessary to carry out this contract of sale and will proceed to complete the sale and purchase in as short a time as practicable. 11. It is understood between the parties hereto that this is an interim contract, and that any balance of the purchase price which will be represented by oertificates of indebtedness of the City will be, arranged so that the payment of said debt will be amortized in annual payments to pay both principal and interest over a period not to exceed thirty (30) years or less with the period of amortization to be designated by the City, and the interest rate on such unpaid balance to be figured at 4/ per annum. IN WITNESS WY~REOF, the parties hereunto by their duly authorized officers have executed this agreement and a duplicate copy thereof on the day and year first above written. ATTEST: Secretary. ATTEST: Recorder. ACCEPTED: Agent. After discussion Alderman 0. I. Bollinger resolved by motion that said contract be accepted by the City of West N~emphis, and that the h9syor and Recorder of said City be authorized to sign said contract for and on behalf of the City of i~r'"est Memphis. Upon second to the above motion by F. Di'. Dacus, the roll was called with reference to the adoption of said contract the vote being as follows: AYES NAYES P. k. Dacus None I. L. Owens Homer Jones R. C. Breese F. E. Denson 0. I. Bollinger W. H. Hundhausen There being no further business to come before the meeting, and upon motion with proper second the meeting was ly adj~o~urned~. W: H. HUl EN~'~ 1.'.AYOR ATTEST: 0. POTTS ORDER WEST h9EtrII'fiIS ,POWER & YJATER CObPANY, BY President. CITY OF 9YEST D~PHIS, BY ~:eyor. !. ~' i (.