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May 2, 1974
~ ra MINUTES OF A REGULAR. MEETING of THE CITY COUNCIL OF THE CITY OF WEST MEMPHIS, ARKANSAS, HELD ON THE 2ND DAY OF MAY, 197. The City Council of the City of West Memphis, Arkansas, met in regular session at its regular meeting place in West Memphis, Arkansas, at 1:30 p.m., on the 2nd day of May, 1974. The following were present: Mayor Tilden Rodgers; City Attorney Robert Smith; and Aldermen: R. T. Bentley, Thomas Dickerson, D. M. Grimsley, W. L. Harris, Pritchard Horton, C. D. Hutcherson, Ann Payton, and B. G. Smith. Absent: Aldermen: J. E. Hightower and M. P. Scott. It being determined a quorum was present, the following proceedings were had to-wit: Minutes of meeting on April 18, 1974, were approved as read. Alderman Horton reported the Fire Commission had accepted the $3,300.00 bid of the City of Edmondson for the 1951 American LaFranee Fire Truck. Mayor Rodgers announced bids for the Civic Auditorium as revised would be received in accordance with Notice published in the E~reni.ng Times on April 17th, 24th, and May 1st. The following bids were read by Pat Magruder of Magruder - Froning, Architects: Name Base Bid Alternates Heath & Scarbrough $839,124 1 $45,b91 2 42,400 3 52,835 !~ 15,115 5 78,115 6 13,562 7 ~., 633 8 5,734 9 938 l0 184 11 2,697 12 2,960 13 1,589 14 7,458 15 6,217 James H. Taylor: $789.,787 1 $45,358 2 43, 3~ 3 52, 3~.8 ~. 15,432 5 ?7,991 6 18,985 7 2,853 8 3,800 9 953 10 184 11 2,697 12 6,396 13 1,.850 14 7,021 15 3,959 Phillips Construction Co. $843,107 1 $57,000 2 - 3 49,450 !~ 21,564 5 76,000 6 9,000 7 5,100 8 2,500 9 1,000 l0 200 11 2,900 l2 5,900 13 1,800 14 3,500 15 5,500 ~ "~ 5 Minute Recess was called. The meeting was called to order by the Mayor. After consideration of the bids, termination of the price freeze on May 1st, a public meeting, premium on bonds, interest, and inflation, motion was made by Alderman Bentley, seconded by Alderman Hutcherson: That bid of James H. Taylor with alternates 1, 2, 3 and ~ be accepted. Upon roll call vote, the voting was as follows: Aye: Aldermen: Bentley, Dickerson, Grimsley, Harris, Horton, Hutcherson, and Smith No: Alderman Payton. Alderman Payton explained the amount was in excess of the amount designated by the bond issue. Mayor Rodgers announced bids for the 1971 Asphalt Program in accordance with Notice published in the Evening Times on April 12th and 19th would be received. The bids were read by City Attorney Smith as follows: Warren Brothers Company 10 Tons Asphaltic Concrete Hot Mix Surface Course $15.9 Per Ton $15,900.00 B & M Asphalt Company, Inc. 10 Ton Asphaltic Concrete Hot Mix Surface Course $15.19 Per Ton $15.,500.00 After discussion, motion was made by Alderman Grimsley, seconded by Alderman Hutcherson: That the bids be referred to the Street Committee to canvass and award bid. Upon vote, the voting was as follows: Aye: Aldermen: Bentley, Dickerson, Grimsley, Harris, Horton, Hutcherson, Payton, and Smith No : None . Notice of Sale of USCO Trojan front-end loader published in the Evening Times on April 25th was brought to the Councils attention. The only bid received was from C & L Sand & Gravel, Lucian Henderson, in the amount of $2,255.00. Motion was made by Alderman Smith, seconded by Alderman Hutcherson: That bid of C & L Sand & Gravel be accepted. Upon vote, the voting was as follows: Aye: Aldermen: Bentley, Dickerson, Grimsley, Harris, Horton, Hutcherson, Payton, and Smith No: None. Mayor Rodgers announced the next matter on agenda has hearing on application of Woodrow Wilson Compton for Certificate of Public Convenience And Necessity. Notice of hearing was published in the Evening Times on April 25, 1971. Mr. Compton and his Attorney, Chad Durrett, presented financial statement, and stated had a petition with 300 signatures that cab facilities are inadequate in West Memphis. Information was presented on plans to form corporation, stockholders to be Mr. and Mrs. Compton, who will own their cabs and will supervise operations, cabs will be new vehicles, several bases of operation being considereed, and will abide by ordinances of the City. Mr. and Mrs. Jimmy Swan, owners of West Memphis Cab Company, and Nam Lum appeared in opposition to granting the Certificate. After discussion of rates, inspection of vehicles, number of cabs on streets at various hours of day, ordinance requirements, base location motion was made by Alderman Harris, seconded by Alderman Grimsley: That Certificate of Convenience And Necessity be granted to Woodrow Wilson Compton. Upon roll call vote, the voting was as follows: Aye: Aldermen: Bentley, Dickerson, Grimsley, Harris, Horton, Hutcherson, Payton, and Smith No: None. t~ ~ i The following petition to vacate an unnamed street was presented by Attorney Ralph Sloan: PETITION TO VACATE STREET Comes the undersigned petitioner, being the owner of Lot 1 in Block 3 of Worthington Park Addition, West Memphis, Arkansas, which abuts on the west side of the unnamed street which also abuts on the west side of Lot lt~ in Block 2 of Worthington Park Addition, and petitianing the City Council of the City of West Memphis, Arkansas, states: That petitioners, Thomas J. Matthews and Darlene J. Mathews are the of the land abutting upon the west side of the street herein- r s owne after particularly described. That in July 1946, the then owner of the lands out of which the above street was carved, had said lands surveyed and a plat thereof filed for record in the office of the Recorder of Crittenden County, Arkansas, and therein recorded in Plat Book 1 at pages 188 and 189 and being designated as Worthington Park Addition to the City of West Memphis, Arkansas; that the street proposed to be vacated and as laid out and platted on said map was never actually laid off and improved and has never been used, and the petitioners now request the closing of said unnamed street bounded on the west by Lot 1 in 81.ock 3 and on the east by Lot 14 in Block 2 of Worthington Park Addition. That there is attached hereto as Fxh;bit ~'A" a copy of that portion of a plat filed in the office of the Recorder of Crittenden County, .Arkansas, which shows the street to be vacated together with the lands abutting upon the street to be vacated. WHEREFORE, petitioners pray that the City Council of the City of West Memphis, at its next regular or special meeting, fix a day for hearing of this petition and direct the City Clerk to give. notice of such hearing as required by law and that upon final hearing that said unnamed street hereinabove described be vacated and all rights of the City of West Memphis and of the public generally be released, vacated and abandoned, subject to any easement thereon now owned by the city of West Memphis, Arkansas. RESPECTFULLY SUBMITTED this 29th day of April, 1974. THOMAS J. MATHEWS AND DARI~NE J. MATHEWS, Petitioners By SPEARS & SLOAN, Their Attor~ys /S/ J . H . SPEARS ~~ After discussion, date of hearing was set May 16, 1974, at 1:30 p.m., and the following Resolution read: RESOLUTION N0. 485 WHEREAS, there has been filed with the City Council of the City of West Memphis, Arkansas, by Thomas J. Mathews and Darlene J. Mathews, a petition to vacate the unnamed street bounded on the west by Lot 1 in Block 3 and on the east by Lot 14 in Block 2 of Wox~thi.ngton Park Addition to the city of West Memphis, Arkansas, as shown by plat of record in Plat Book 1 at pages 188 and 189, and said petition prays that the City Council fix a day for the hearing of said petition. NOW, THEREFORE, BE IT RESOLVED: That said petition to close the above described unnamed street be set down for hearing on the 16th day of May, 1974, at 1:30 o'clock P.M. in the Municipal Courtroom in the city of West Memphis, Arkansas, and that the City Clerk give notice as required by law of the hearing to be held. ~~~ Motion by Alderman Bentley, seconded by Alderman Hutcherson: That the resolution be adopted. Upon vote, the voting was as follows: Aye: Aldermen: Bentley, Dickerson, Grimsley, Harris, Horton, Hutcherson, Payton, and Smith No : None . .~ .~ .. :. .. ... ,.. F - ,. , Mrs. Fred Held. of Crittenden Abstract & Title Co., Inc. advised the Council on matters pertaining to Federal Flood Insurance Program in regard . to Federal loans after July 1975. Mr. Robert Jontz informed the Council the builders in West Memphis are in favor of the Flood Insurance. After discussion of the Federal subsidised insurance, Federal loans, designation of flood prone areas, and study being made by U. S. Engineers, the following Resolutions were read by City Attorney-Smith: - RE S JL U .1. IOTV NO „ J ~ ~---~ RESOLUTION PERTAINING TO NATIONAL FLOOD iNSiJRANCE WHEREAS, certain areas of West Memphis are subject to periodic flooding (and/or mudslides} from Bayous, Ditches, and etc., causing serious damages to properties within these areas; and WHEREAS, relief is available in the form of Federally subsidized flood insurance as authorized by the Tational Flood insurance Act of 1968; and WI-iEREAS, it is the intent ofthe City Council to require the re- cognition and evaluation of flood and/or mudslide hazards in all official actions relating to land use in the flood plain (arid/or mudslide} areas having special flood (and/or mudslide) hazards; and WHEP.EAS, this body has the legal authority to adopt land use and con- trol measures to reduce future flood losses pursuant to Arkansas Act 186 of 1957 as amended. NO~J, TkIEREFO?~E, 3E .I.T RESOLVED, that this City Council hereby: 1. Assures the Federal Insurance Administration that it will enact as necessary, and maintain in force for those areas having flood or mudslide-hazards, adequate land use and control measures with effective enforcement provisions consistent with the Criteria set forth in Section 1910 of the National Flood Insurance Program Regulations; and ~. Vests C ity Engineer's Office with the responsibility, authority, and means to. {a} Delineate or assist the Administrator, at his request, in delineating the limits of the areas having special flood (and/or mud- slide} hazards on availa'ole local maps of sufficient scale to identify the location of '.ouilding sites. (b) Provide such information as the Administrator may request concerning present uses and occupancy of the flood plain (and/or mud- slide area) . z; (c) Cooperate with Federal, State, and lccal agencies and private firms which undertake to study, survey, map and identify flood plain or mudslide areas, and cooperate with .neighboring communitizs ~~°ith respect to management of adjoining flood plain and/or mudslide areas in order to prevent aggravation of existing hazards. ~., t ~' I (d) Submit on the anniversary date of the community's initial eligibility an annual report to the Administrator on the progress made during the past year within the community in the development and implementation of flood plain (and/or mudslide area) management measures. 3. Appoints City Building Inspectors office to maintain for public ' inspection and to furnish upon request a record of elevations (in relation to mean sea level) of the lowest floor (including base- ment) of aI1 new or substantially improved structures located in the special flood hazard areas. If the lowest floor is below grade on one or more sides, the elevation of the floor immediately above must also be recorded. ~.. Agrees to take such other official action as may be reasonably necessary to carry out the objectives of the program. ~~ After consideration motion was made by Alderman Bentley, seconded by Alderman Hutcherson: That the Resolution as read be adopted. Upon vote, the voting was as follows: Aye: Aldermen: Bentley, Dickerson, Grimsley, Harris, Horton, Hutcherson, Payton and Smith No : None . The second resolution was read by City Attorney Smith. After discussion, motion was made by Alderman Bentley, seconded by Alderman Hutcherson: That the Resolution as read be adopted. Upon vote, the voting was as follows: Aye: Aldermen: Bentley, Dickerson, Grimsley, Harris, Horton, Hutcherson, Piton, and Smith No : None . The resolution adopted read as follows: _ ,.. .. w ~ --~ p` RESOLVT zoN No .. ~ U- RESOLUTION PERT.c~,INING T`O BUILDIlVTG PER.NTITS IN RELATION TO FLOOD I~ZARDS . WHEREAS, the City of West Memphis, Arkansas has adopted ar;c7. is enforcing a Zoning Ordinance (City Ordinance #7l5), and WHEREAS, Section l2. Paragraph 12.11 of the aforesaid proh:i.bi to any person, firm or corporation from erecting, constructing, enlarging, altering, repairing, improving, moving or demolishing any building or structure without. first obtaining a separate building permit for each building or structure from the City Building Inspector, and WHEREAS, the City Building Inspector must el~ami ne all plans and specifications for. the proposed construction when application is made to him for a building permit. NOT,n~ T~~R.EF ORE, BE IT RESOLVED by the CITY COUNCIL OF U7EST ~~MPHYS , AP.~7~.LvTSAS as follows: 1. "'hat the City Building Inspector' s Office shall revie~~~ all building permit applications for new construction or substantial im- provements to determine whether proposed building-sites will. be reason- ably safe fror?-- flooding. If a proposed bui ldi ng site is in a location that ha.s a flood hazard, any proposed new construction or subs-car_tial improvement (including prefabricated and mobile homes) must (i) be de- signed (or modified) and anchored to prevent flotation, collapse, o~ lateral movement of the structure, (ii} use construction materials and uti 1~..'4_y equipment that are resistant to flood damage, and (iii} use construction methods and practices that will minimize flood damage, and 2. That the City Engineer's Office shall review subdivision pro- posals and other proposed new developments to assure that (i) all such proposals are consistent with the need to minimize flood damagz, (ii) all public utilities and facilities, such as sewer, gas, electrical, and water systems are located, elevated, and constructed to minimize or eliminate flood damage, and (iii) adequate drainage is provided so as to reduce exposure to flood hazards; and 3. That the Utility Commission shall require new or replacement water supply systems and/or sanitary sewage systems to be designed to minimize or eliminate infiltration of flood waters into the systems and discharges from the systems into flood waters,. and require on-site ~~raste disposal systems to be located so as to avoid impairment of teem or contamination from them during flooding. ~,a 9 ~ P° Representatives of United Municipal Investment Corp. and P. G. Para informed the Council of proposed public utility revenue bonds. Alderman Bentley requested a five minute recess. Mayor Rodgers called the meeting to order, Alderman Horton was not present. The Mayor stated that consideration should be given to an ordinance authorizing the issuance of public utility revenue bonds. This was a matter with which the Council was familiar and after a discussion, Alderman Grimsley introduced an ordinance entitled: "An Ordinance Authorizing The Issuance Of Public Utility Revenue Bonds For The Purpose Of Financing The Cost Of Constructing And Equipping Public Utility System Improvemer~a At The City Of West Memphis, Arkansas; Providing For The Payment Of The Bonds; Prescribing Other Matters Relating Thereto; And Declaring An Emergencytt and the City Attorney read the ordin~.nce in full. Elderman Harris, seconded by Alderman Bentley, moved that the rule requiring the reading of an ordinance or resolution 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: Bentley, Dickerson, Grimsley, Harris, Hutcherson, Payton, and ~nith 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 Payton, seconded by Alderman Smith, 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 t the question on the adoption of the motion and the roll being d the following voted Aye: Aldermen: Bentley, Dickerson, Grimsley, Harris, Hutcherson, Payton, and Smith 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 Hutcherson, seconded by Alderman Dickerson, 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: Bentley, Dickerson, Grimsley, Harris, Hutcherson, Payton, and Smith and the following voted Nay: None. Alderman Grimsley, seconded by Alderman Harris, moved that Section 2?~, the emergency clause, be adopted, and on roll call the following voted Aye: Aldermen: Bentley, Dickerson, Grimsley, Harris, Hutcherson, Payton, and Smith 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. 806, and read as follows: __ .-.+~~--..T _ _ _~+-----.. ~'~}~*°v~!'~-y 4°.. ...... L~4..oXC1.,.,.wK:..sew4.•.'cSJ~.,....~:=:.r.w~„y.:.._ ORDINANCE NO. ZOCD AN ORDINANCE AUTHORIZING THE ISSUANCE OF PUBLIC UTILITY REVENUE BONDS FOR THE PURPOSE OF FINANCING. THE COST OF CONSTRUCTING AND EQUIPPLNG PUBLIC UTILITY SYSTEM IMPRO'JEMENTS AT THE CITY OF WEST MEMPHIS, ARKANSAS; PROVIDING FOR THE PAYMENT OF THE BONDS; PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY. WHEREAS, the City of West Memphis, Arkansas (the "City"}, owns ar~d 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 (a 11 of the facilities ~7i 11 be herein some time s referred to as the "System"}; and WHEREAS, the City has determined that the constructing of improvements consisting of extensions to the waterworks facilities and sewer facilities and related improvements (the "improvements") are necessary; and WHEREAS, the .total estimated cost of the ir~~provements is approximately " $1,990,000 and in order to finance the improvements, it is necessary that the City issue Public Utility P,evenue Bonds in the principal amount of $ I , 000 , 000 , the balance of the costs being provided by a grant or grants from an agency or agencies of the United StaL-es; and WHEREAS, the City Council has previously caused to be sold and ha s -:authorized the issuance of Public Utility Revenue Bonds, dated December 1, 3.973, -~.~n the (unconverted } principal amount of $ 2 , d o D , ~ 0 0 (the " ]. 9 73 Utility E ord s "} , --.for the purpose of financing the City's cost of the improvements (including the casts _.____ "___-,-flf construction and equipment and expenses incidental thereto and to the iinar~cir, . . .rand -~ _ . = ~ ~ ~ - .=~NHEREAS, it is not possible to issue aid deliver the 1973 Utility Bonds, ~-as authorized, because of litigation pending which challenges certain aspects of ~tl~e operation of the System and the power of the City to pass thr©ugh (to user-1 of the Syster~~} costs of fuel necessary to the operation of the System; and .~, ...._ ~, -- - -- - WHEREAS, due to adverse market changes, there is no assurance that the 1973 Utility Bonds can ip; the future be issued and delivered on the terms on which sold ; and WHEREAS , it is in the interest of the City that a n a lterna tive method be found and implemented for the financing of the City's cost of the improve- menu, in order that the accomplishment of the improvements may be commenced without further delay; and WHEREAS , upon d ue and thorough investigation , and the recommendation of the West Memphis Utility Commission, it has been found and determined that the best method of financing the immediate and pending costs to the City of s accomplishing the improvements is by the issuance of temporary utility revenue bonds, in the principal amount of $750,000, with the bonds to be issued in series .from time to time a s funds are need , a 11 a s set forth and described in this Ordinance NO~'~T, THEREFORE , BE IT ORDAINED by the City Council of the City of West Memphis, Arkansas: Section 1 . The improvements shall be accomplished , and the Mayor and ,City Clerk are hereby authorized to execute such documents and varitings and to take such other action as may be necessary or appropriate thereto. The Council hereby finds and declares that the period of usefulness of the improvements will be more than forty (40) years, which is longer than the term of the bonds. Section 2. Under the authority of the Constitution and laws of the State of Arkansas , including particularly Act No. I3 I of the Acts of Arkansas of 193.3 , as amended , Act No. 132 of the Acts of Arkansas of 1933, as amended , and the applicable decisions of the Supreme Court of the State of Arkansas, including particularly City of Harrison v. Braswell, 209 Ark. 1094, 194 S.V1T.2d 12 (1946), Public Utility Revenue Bonds (Temporary) (the "bonds" or the "Temporary Bonds "} ~ are hereby authorized and ordered issued in the principal amount of $750, 000 for the purpose of accomplishing the improvements and paying necessary expenses 4 r ~ _ Y ,._,, _.. incidental thereto and to the a uthorization and issuance of the bonds. The bond s shall be issued in series , a s funds are needed , with the initia 1 series to be designated the "Serie s A Bond s . " The Serie s A Bond s shall be issued in the principa 1 amount of $500,000. The Series A Bonds shall be dated June 1, I974, with interest thereon payable semiannually on June 1 and .December 1 of each year, commencing December 1, 1974. The Series A Bonds shall be numbered consecutively from I-A to 100-A , inclusive , and shall be in the denomination of $5 , 000 each . The Serie s A Bond s shall bear interest a t the rate of 5 -1/2% per annum and sha 11 mature on June 1, 1976 . Section 3. The City has outstanding an issue of Sewer Revenue Refunding and Improvement Bonds , dated June 1, 1945 , authorized by Ordinance No . 10 7 of the Ordinances of the City , adopted and approved on July 6 , 194 5 and a n issue of Sewer Revenue Bonds dated .August 1, 1949, authorized by Ordinance No. 171 of the Ordinances of the City, adopted and approved on September 9, 1949 therein sometimes referred to a s 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 . 2 75 of the Ordinances of the Gity , 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, 19 5 6 , authorized by Ordinance No . 316 of the Ordinances of the City , adopted and approved on March 15 , 195 6 , a s amended (herein sometimes referred to as the "1956 Utility Bonds"); and the City has outstanding an issue of Public Utility Bond s d a ted July 1, 1963 , authorized by Ordinance No . 43 7 of the Ordinances of the City, adopted and approved on June 20, 1963 (herein sometimes referred to a s the " 1963 Utility Bonds "}; and the City has outstanding an issue of Public Utility Bond s d a ted June l , 196 7 , authorized by Ordinance No . 5 2 6 of the Ordinances of the City, adopted and approved on April 20, 1967 (herein _ _ _ ,~ . .. ,. ~.-- sometimes referred to a s the " 196 7 Utility Bonds "}; and the City has outstanding an issue of Public Utility Bonds dated May 1, .1968, authorized by Ordinance No . 5 6 3 of the Ordinances of the City , adopted and approved on June 6 , 19 6 8 , as amended by Ordinance No. 564 of the Ordinances of the City, adopted and approved on July 2, 1968 (herein. sometimes referred to as the "1968 Utility Bonds "}; and the City has outstanding a n issue of Public Utility Bond s d a ted October 1, 1971, authorized by Ordinance No. 699 of the Ordinances of the City adopted and approved on October 7, 1971 (herein sometimes referred to as the " 19 71 Utility Bonds ") . The 19 71 Utility Bonds , the 196 8 Utility Bonds , the 196 7 Utiaity 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 . 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 , a s 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 Ordinance shall be construed a s impairing that cond itiona 1 pledge of electric revenues to the extent, and only to the extent, that the conditional pledge in 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. The bends identified above in .this Section 2 will be herein referred to collectively a s the "bonds of prior issues . " The pledge of System revenues se c using .these Temporary Bonds sha 11 be subject and subordinate to the pledges of System revenue s securing the bonds of prior issues. The bonds shall be negotiable coupon bonds payable to bearer but subject to registration as to principal or as to principal and interest. Principal and interest are payable at the principal office of Bank of West Memphis, Vtrest Memphis, 1ar~:ansas (the "Trustee" and "Paying Agent"}. Payment of interest when re istered as to interest may be by check or draft mailed to the registered owner at the g w ~~ _ . - _. ,~ - - - - - - _ - -- address shown on the registration. book of the City maintained by the Trustee . Tl:e bonds shall be subject to redemption prior to maturity as hereinafter set forth . Section 4 . The bonds sha I1 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 signed by the facsimile signature of the Mayor but must be signed by the manual .signature of the City Clerk. The interest coupons attached to the bonds may be signed by the facsimile signature of the Mayor. The bonds, and interest thereon, shall not be general obligations of the City but shall be special obligations,- payable -solely from revenues derived from operation of the System- {together with the proceeds of bonds to be issued , a s i hereinafter set forth}, which revenues are hereby pledged and mortgaged for the equal and ratable payment of the bonds, subject to the pledge securing the bond s of prior issues, and shall be used for no other purpose than to pay 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 consttutiona 1 or statutory limitation . The City covena nts that it will sell and issue permanent bonds or other temporary bonds, prior to the maturity of these Temporary Bonds, and that the required amount of the proceeds .` thereof will be used to pay or redeem the Temporary Bonds . - Section S . The bonds shall be in substantially -the following. form {with appropriate changes to reflect the particular series} and the Mayor and City Clerk are hereby expressly authorized and directed to make all recitals contained therein: 4 - _ UNITED STATES OF AI`~ERICA STATE OF ARK1~l~TSAS COUN`T'Y OF CRITTENDEN CITY OF WEST MEMPHIS i° r ~ ~iIC UTILITY REVENUE BOND (TEMPORARY) SERIES A $5 , 000 KNOW ALL MEN BY THESE PRESENTS: That the City of West Memphis, County of Crittenden, State of Arkansas (the "City"), acknowledges itself to owe and for value received, hereby promises to pay to bearer, or if this bond be registered to the registered owner hereof , solely from the special fund provided as hereafter set forth, the principal sum of FIVE THOUSAND DOLLARS ($5 , 000} in lawful money of the United States of America on the first day of June, 1976, and to pay solely from that special fund interest hereon at the rate of five and one-half percent (5-1/2%) per annum, from date until paid . Interest is payable semiannually on June I and December I of each year, commencing December 1, 1974. Principal and interest are payable at the principal office of .Bank of West Memphis, West Memphis, Arkansas (the "Trustee" and "Paying Agent"}. ._ Payment of interest, when registered as to interest, may bc'by check or draft mailed to the registered owner at his address reflected on the registration book of the City maintained by the Trustee as bond registrar. This Serie s A Bond ~i s one of a serie s of City of ~1Te st Memphis , Arka nsa s Public Utility Revenue Bonds (Temporary) , Series A , aggregating Five Hundred Thousand Dollars ($500, 000) in principal amount, dated June 1 , 1974 (the "Series A Bonds") , numbered from 1-A to 100 A , inclusive , all of like tenor and effect, except as to number, and right of prior redemption, issued for the purpose of constructing extensions, betterments and improvements (the "improvements") to the Electric, Waterworks and Sewer facilities of the City (which facilities are operated a s a single, integrated municipal undertaking (the "System")) and paying necessary expenses incidental thereto and to the issuance of the bonds. The Series A Bonds ;. are part of a"total authorized issue of Seven I-Iundred fifty Thousand Dollars ($750,000) in .principal amount, and the City has reserved the right to~isstie tl~c; balance of the total authorised issue at a later time or times. No. A ~., _ _ _ e, ,, ~ - - - -- - ~- - ~ _,. The bonds are issued pursuant to and in full compliance with the . - - ~ Constitution and ia~vs of the State of Arkansas, including particularly Act . - -' liTo. 13l of the Acts of Arkansas of 1933, as amended, ,Act N'o. 132 of .the •- Acts of Arkansas of 3933 , a s amended , and applicable decisions of the Supreme .- -Court of Arkansas, including particularly City of Harrison v. Braswell, 2D9 Ark. .. _1094, I94 S.Vif.2d 12 {3,946}, and pursuant to ©rdinance nTo. duly adopted i ~ ~ . .and, approved on the day of ~ ~ , 19?4 (the "Authorizing Ordinance "} , and . ~-~. ~ . . -~ rlo not constitute an indebtedness of the City within any constitu~.ional or statutory ~~ _ ::limita.tion. The bonds are not general obligations of the City, but are special obligations payable solely from the revenues derived from the operation of the - System (together with the proceeds of bonds ~to be issued , as set forth hereinafter and in the Authorizing Ordinance? . The pledge of revenues securing the see bond s is subordinate to the pledge of revenues securing the Public Utility Bonds of the City dated May 1 , 1954, the Public Utility Bonds of the City dated April 1 , 1956, the Public Utility Bonds of the City da Led July 1, 1963 , the Public Utility Bonds of the City dated dune l , 1967., the Public Utility Bonds of the City Gated May l , X196$ and the Public Utility Bonds of the City dated October 1, .1971, and is subor- ~- ~_dinate to the pledge securing certain outstanding Sewer .Bonds of the City hand, to . ~ :.the extent applicable, to the conditional pledge of electric revenues securing an - - Tissue of sz•Jimming pool revenue bonds of the City} , nll being described in the - --~-~utho~izing Ordirance and referred to collectively herein as the "bends of prior - ~ -issues." An amount of System revenues sufficient ~to -pay the interest ~ w ~. A - ~on the bonds is to be set aside in a special fund for that purpose . . . .identified as the "1974 Public Utility Bond Fund" {the "Bond Fund "} , created by the Authorizing Ordinance . Reference -may be had •to the Authorizing Ord.irn nee for a d e to filed statement of the nature and extent of the security a r~ the rights a rd of obliga Lions of the City, the Trustee and the holders of the bonds . The City has fixed and has covenanted and agreed to maintain rates for the services of the System which shall be sufficient at all times at least to provide for th`e payment of the reasonable expenses of operation and maintenance of the System, provide for the payment of principal, interest, and Trustee's and Paying Agent' s fees on all bonds of prior issues, provide for the interest and Trustee's and Paying Agent`s fees on the bond s of this issue , and make requi~ed deposits for the depreciation of the System. {There is no provision for required deposits into ~ the Bond Fund for payment of principa 1 of these bonds , for the reason that permanent bonds or other temporary bonds will be issued prior to the maturity hereof and the . ~ required amount of the proceeds thereof used to pay or redeem these bands , a s se t .• ' forth in the Authorizing Ordinance . } .: . - . ~ The bonds are subject to redemption prior to maturity, at the option of ~.~. ....~ the City, in whole or in part, with there to be~no partial redemption of any'bord , . ~n inverse numerical onmer, at__a prise of the principal amount of~the bonds ~eirig ... ". '-:= ~:=~:~'_•~~ ~ redeemed , plus accrued interest to elate of redemption, "~s follows; ~l~ from proceeds of the bonds in excess of the amount needed to accomplish tl~e improvements, on any interest payment date; and {2} from funds from any source at any time on and after dune 1, 1975. Notice of the calf. for " ~ "redemption shall be published one time in a nevtspaper of general circulation - a- - _ .- ": ~ throughout the State of Arkansas published. in the City of Little Rock, Arkansas, . ~- - _ .„ .- ~. - ~ ~ :-° ~~ ~ - ` . giving the number and maturity of each bond being called , with the publication ~- a." - . --- ~. - .~ ~ ~to be at least fifteen X15} days prior to the redemption date, and after the date ' ~ - fixed for redemption each bond so called shah cease to bear interest, provided " . _+ ~. - ~ ~ .funds for its payment are on deposit with the Paying Agent at that time . In -~- ~ addition, notice shall be given by certified or registered mail to the registered owr~ r of each bond registered a s, to principa 1 at the address of such owner . ., . reflected on the bond registration book of the bond registrar, and if all outstanding .bonds shall be registered as to principal notice by certified •or registered marl • : to the registered ov~ners thereof as aforesaid shall be sufficient, and it shall not - be necessary to publish notice of the call. ~ . This Series A Bond may be registered as to principal. or as to principal and interest and may be discharged from such registration in the manner, with the effect, and subject to the terms and conditions endorsed hereon. Subject fie fihe prOV].SlOi"tS „` ; _ for registration endorsed hereon, nothing contained in the bonds or in the Authorizing Ordinance shall affect or impair the negotiability of the bonds, and the bonds shall be deemed negotiable instruments under the laws of the State of Arkansas and issued with the intent that the laws of the State of Arkansas will govern their construction. This Serie s A Bond sha 11 not be valid until it sha 11 have been authenticated by the. certificate hereon duly signed by the Trustee. IT IS HEREBY CERTIFIED , .RECITED AND D ECLARED that a 11 acts., conditions and things required fio exist, happen and be performed precedent to and in the issuance of this bond have existed , have happened and have been performed in d ue time , form and manner, a s required by Izw; that the indebtedne s s represented by this Series A Bond and the series of which it-forms a part does not exceed any constitutional or statutory limitation; and that revenues of the System have been pledged to and will be set aside into the Bond Fund in accordance with the provisions of the Authorizing Ordinance. IN WITNESS WHEREOF , the City of West Memphis , Arkansas , by its City Council, has caused this Series A Bond to be signed by the .facsimile signature of the Mayor and the manual signature of the City Clerk, ar~d sealed with the corporate seal of the City, and has caused the coupons attached hereto to be - executed by the facsimile signature of the Mayor, all as of the first day of June , 1974 . ATTEST; CITY OF WEST MEMPHIS, ARKANSAS ,~-_- ... .-. City Clerk (SEAL} By (facsimile signature} Mayor :. (Form of Coupon} No. On the .first day of 19 ,the City of West Memphis, Arkansas, unless the bond to which this coupon is attached is paid prior thereto, hereby promises to pay to bearer, solely out of the funds specified in the bond to which this coupon is attached DOLLARS - in lawful money of the United States of America at the principal office of Bank - of ,jest Memphis, West Memphis, Arkansas, being ~ ( } months` interest then due on its Public Utility Revenue Bond (Temporary), Series A, dated June 1 , 19 74 , and numbered -A . CITY OF WEST MEMPHIS, ARKANSAS By (facsimile signature} Mayor On each bond shall appear the following: CERTIFICATE This is to certify that this is one of the City of West Memphis, Arkansas Public ~ tili ty Revenue Bonds (Temporary} , Series A , dated June 1, 19 74 , mentioned end described within. BANK OF V1jEST MEMPHIS, West Memphis, Arkansas TRUSTEE By Authorized Signature w __ ....-._.._._ _..... ~..__ . ~..~......~~~.~. E''' ~...~ 1 .. - ~i~©Yd~~OI\T~ j ~.J1~ 1\~~~LJr~t1~11~,~L11V x11.Y1..J ~~~V1` V~i~~J.~~Y -. ~ • ~ ^_ - rt - , - - ~ This bond may be registered as to principal alone on bcol:s of the "- ~lty, maintained by tl~e Trustee as bond registrar, upon presentation hereof ~• .:- . ~o the band registrar, which• shall ma~:e mention of such registration in the _. - - ~•egistration bland: below, and this bond may thereafter be transferred only ~ - - . . - - ~.: upon an assignment duly executed by the registered av~~ner or his attorney or .. __ . • ~.egal representative in such form as shall be satisfactory to the bond registrar, k - _- - ` -such transfer to be made on such boo}:s and endorsed hereon by the bond - . _ - - . ~ ~gistraro Such transfer may be to bearer, and thereafter transferabi? ity by '` .. =. - -~e~ivery shall be restored, but this bond shall again be subject to successive :.: ; ~geg.istrations and transfers as before-, The principal of this bond, if registered r . ~ •. -~ -. ---unless registered to bearer, shall be payable only to or upon the order of the - -- _ .. - ~.regsterea owner or his legal representative. Interest accruing on this band •• ~ - ~ 't~31.1 be paid only on. presentation ar~d surrender of the attached interest coupons ~.- : -as they respectively became due, and notv~rithstanding the registration of this - : - bQncl as to principal, the appurtenant interest coupons shall remain payable o - ~. bearer and -shall continue to be transferable by delivery; provided, that if upon ~~egistration of this bond, or at any time thereafter w~~il.e this band is registered - the name of the owner, the unmatured~ coupons attached evidencing interest --~---~o be fhereaiter :paid hereon shall be surrendered to said bond registrar, a• ~ - - - . . - _ . K- -- statement to that effect will be endorsed hereon by the bond registrar and - - •. -- -thereafter interest evidenced by such surrendered coupons may be paid by - - check or draft of the bond registrar at the times provided herein to the registered _ - - a~~~ner of this bond by mail to the address shown on the registration baoi;s. This bond when so converted into- a bond registered as to both principal and interest may be reconverted into a coupon bond at the ~~rrfttcn request of the registered - , ,; owner and upon presentation at the office of said bond registrar. Upon such reconversion the coupons representing the interest to become due thereafter to the date of maturity will again be attached to this bond a nd a s to to me n t will be endorsed hereon by the bond registrar in the registrat~n blank below whether it is then registered as to principal or payable to bearer. • ~ - - - .., ; NIa nner .of :Signature of a • - • . - tratzon :Name of Registered O~~mer : Registration ~: Bond Re istrar bate o~ Re ~s a .~ _ - -. - ~ ~. - y~- - _ - - ~. ~ ~ - - ~ -. - - ~ Y gg ~ ~ ~~ • ~ ~ '~ • ~ ~ ~• - • ~• ~ ~ ~ ~ • • ~• • • • - - ~ • - ~ • r _ r • • • - • • - • • • • _ . i ~ ~ - ' ti 4 f . Section 6. The rates to be charged for electric services fur- ~~is~~cd by the S~Tstem, the rates to Ue charged far. ~-eater services furnished }7y tl~e System, and the rates to be charged for se~h~er services furnished by the System ley ail- heretofore adopted and presently effective ordinances of the City Council, and the conditions, rights and obligations pertaining thereto, as set out in those ~orciinances , are hereby rati.ficd, confirmed and continued. ~'he City covenants and agrees that the rates shall never be reduced while any of i.he 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 attri.biztable to the operation and maintenance of the System under generally accepted zccount- ing principles applicable to municipal electric, water~l~orks and sewer sysi:ems} , -, . vJith the reduced rates, will always be equal to the amount required to be set .aside far the Depreciation Fund, and the amount necessary to comply with all . , conditi.oz-~ai pledges of any System revenues {on the assumption all payments will have to lie made to tl~e full extent of the conditional pledges} , and leave a balance equal to the .amount necessary for paying principal and interest when due of the 1.945 and 1949 Sewer Revenue Bonds, plus at least 200°l0 of the aggregate average annual principal and interest requirements on~.all outstanding bonds of the 1954. Utility Bonds , 195 6 Utility Bonds , 1963 Utility Bonds , 196 7 Utility Bonds , the 3968 Utility Bonds , the 1971 Utility Bonds , plus. at least 200% of the annual interest requirements on these bonds. The City further 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 sufficient 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 ]3onds and meting all principal and interest requirements of the 1954 Utility Bonds, 1956 Utility Bonds, 1963 Utility F3ond s, 1967 Utility Bonds, 1968 ~lltility Bonds , thn 1971 3ond s , for paying interest whe n d ue on these bonds and for maintaining all .funds in connection therewith at the required level . Section 7. None of the facilities or services afforded by the System shall be furnished without a charge being made therefor. In the event that the pity 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 sl~~all be paid for as the charges tl-terefor accrue.. The revenue so received shall be deemed to be revenues derived from the operation of the System and shall be used and accounted for in the sar.~e ~:~anner as any other revenue derived from the operation of the System, provided, hovrewer, that nothing herein shall be construed as requiring the City or any departmeni;, agency or instrumentality thereof to avail itself of the faciJ.iti.es or services afforded by the System. Section 8. The System shall be continuously operated as a revenue producing undertaking , and all moneys received frorn 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, hoveever, to the giving of security as now or as hereafter may be required by lave, and provided that such depositories shall hold membership in the Federal Deposit Insurance Corporation, Section 9 . All funds created by Ordinances of the City authorizing -.~--- and securing the outstanding bonds of prior issues shall remain unchanged by this Ordinance and shall continue to be maintained by the City as required by and pursuant to the provisions of those Ordinances. Also, all of the covenants, re strictions , conditions and provisions set forth in those Ordinances , except where expressly inconsistent with the provisions of this Ordinance, are hereby, each and a li , ratified and confirmed , and sha 11 continue in force and inure to the security and benefit of the bonds of this issue , a s fully and a s effectively a s if herein set out in full, it being the intentic3n of this section to give the bonds of this issue the full benefit of all such covenants, restrictions, conditions ark provisions r '~~, . as well as the full benefits of ail applicable provisions of the Constitution and laws of the State of Arkansas, subject to the priority of pledge. in favor of the bonds of prior issues, so long as any of the bonds of prior issues are outstanding. Section 1.0. T974 Public Utility Bond Fund . (a) There is hereby established with a bank or banks that are members of the Federal Deposit Insurance Corporation, to be designated by the City from time to time , a special trust fund in the name of the City designated "I974 Public Utility Bond Fund" (the "Bond Fund "} which shall be maintained as long as the bonds are outstanding and unpaid , and into which there shall be paid the sums in the amounts and in the times hereinafter set forth in subparagraph (b} for the purpose of providing funds for the payment of the interest on and trustee's and paying agent's fees in connection with the bonds a s the- same become due . (b) Beginning on the first business day of the month after the delivery of the bonds and continuing on the first business day of each month thereafter there shall be paid into the Bond Fund from System revenue s a sum equal to one- sixth (l/6) of the next installment of interest (plus any additional amount that may be necessary together with accrued interest received at the time of the delivery of the bonds fully to provide for the first interest payment on the bonds} and an amount suff~ient to provide for the trustee's and paying agent's fees . Additional amounts of System revenues may be deposited into the Bond Fund each month and used for the purpose of redeeming the bonds if the City so elects but it shall not be mandatory that any additional amounts be so deposited into the B end Fund . _ erection 11. The bonds shall be subject to redemption prior to maturity in accordance with the terms set out in the face of the bond form in Section 5 of this Ordinance . Section 12. So long as the bonds are outstanding the City shall continuously operate the System as a revenue producing undertaking and , except as pcz~mitted by the provisions of Section 18 hereof, shall not iss~~e or attempt ~o ... .....a~i:.. .. .. .nr-. ~:..:~.-...+. 4 ..., .a. 4: __`__w:--.tN 'ss...,..."..•w..a u.....+r o..~.au.•~.._..~ . ..~.,..a~w:...` _..1......rt:r -..._iw _ .~.. ......y.. ._..e.. ...-.a. p. -•. t..t~ ~.....: ~...,. yr "Ter-,..N-~ ~....~ _ ~ _ _ ~ . issue any bonds or incur any obligations on a parity of security with the bonds of prior issues or issue any bonds or incur any obligations claimed to be entitled to a priority of lien on, or pledge of, System revenues over the lien and pledge in favor' of the bonds of this issue , including revenues derived from the herein authorized and any and all future extensions, betterments and improvements to the System . Section 13 . The Trustee of the bonds issued hereunder shall be Bank of Vlrest Memphis, West Memphis, Arkansas. The Trustee shall only be responsible for the exercise of good faith and reasonable prudence ~. in the execution of its Trust . The recitals in this Crdinnnce and in the face of - the bonds are recitals of the City and not of the Trustee . The Trustee. shall. not be required to to}:e any act,ion.as Trustee unless it shall have been ,requested to do so in writing by the holders and registered owners of not less than ten per cent {10`%} in principal amount of the bonds of this issue then outstanding and sl~ail h~~vE been offered reasonable securi.l:y and indemnity against the costs, expenses and liabilities to be incurred therein or tr~ereby. The Trustee may resig~~ at any time by ten (10) days notice in v,=riting to tl~e City Cler}. and is}zc ma~o,ity in value of the holders and reg3_si:ered ojl,~ncrs.of the out-- standing bonds of this issue at any time, with or v~rii:hout cause, may rer,~ove the Tri:stee ~ In the ev~~nt of a vacancy in the office of 'Trustee , eithor by resignation or by removal., the majority i_n value of"~he.lloluers zind zcc~ister~ed owners of Elie outstanding bot~ds of this issue may 'appoint a nev,r Z'rustec, such appoir~tmeni. to be evidenced--by a v,rrii:te?~ instrument or instruments filed with the City C1Urk, if the majority in vuluo of the holders and registered owners of the outstanding bonds of this issue s}gall fail to fill a vacancy ~t~~it}zin th~~:y (30} days aft.cr the same shall occur, il~ien t}~e City shall forthv,rith ~?esignai:e a new Trustee by a vTrittcn instrumenfi filed in the office of the City Cler}:. The ori.c~inal 'lrustec and any successor 'J.'ru ;tee shall file a written aCCOp~:anco and agzeeme~~i% to execute the tzust impo: ed upon it or tre~.~ by this Grda~nal~ce, ~~ y bUt Olll~% Ut~J3"t tl'le ~:C:)'i7jS az:d conuitions ~t?i; for~~h tI7. i }l.'~Sr...~rdinuii •^. ul"ld S'tiujc:C:.t to the provisions of tl-~is Ordinance, to all of whicl~~ tl~ie respective iio?.d~rs and rLgistercd o~~~~icrs of tl~e bonds agree . Such written acceptance shall be filed with the City Clerk and a cop~T thereof shall be placed in the board transcript . any successor Trustee shall have all the po~~rers hErein granted to the orl.ginal Trustee , In tie event. of a change in tine office of Trustee , the old Trustee w}~Ai ch has resignea Qr been removed -shall cease to be Paying Agent. Section 1.4. (a} If there be any aefault in th~~ pa,Tment cf the ....principal. of cr interest on any of the bonds of this issue, or if the City defaults in any fond Fund rcquuements or in the performance of any of the other covenal'.ts contained and set forth in this ordinance, the Trustee may, and upon the written request of the haldcrs of not Tess than ten per cent (10~~} in principal amount of the boards cif -this issue then outstanding shall, by proper suit ~ompcl the performance o~ ~:he duties of the officials of the City under the laws of Arkansas . l~.zzd, in t;~c:.cas~: ,of a dei:auli: in ttae payanci~t of th:~ principal of aracl iritc_rest on any of the outstanding bonds of tiffs issue, the Trustee may, and upon the wri~:f:erl request of holders of not less than ten per cent ~I.U~/~} in principal t~j~~2o~lzit of tl~e bonds of this issue then outstaalt3ia'~g shall, apply iri a proper actioa~ to a cour'~ of competent ;urlsdiction for rl~e appointnlc;ni: of a recUiv~'r to admir~isi:ca' ~~ the System on'ot half of the City ana the }~ondholders and registered ovrners ~;1it}~ ovJer to cllarg~ and collect for by mandatory injunction or othex-~vise to p .:- e ch~~r ed and. collected} rates sufficient to provide for the payi~'t~'nt cause to b g . of the expenses of operatioa.~, repair and maintenance aa~d to pay any bonds and interest outstanding and to apply the revenue in conformity with the lav.7s of ~'s~k.ansas and with this ordinance . ~~Vhen all defaults in principal and l.nterc` a Tments have been cured, the custody and operation of the System shall. p S revea•'c to tl~ie City . (l~} Igo }loldcr of any of the outstanding bonds of this issue shall have: any right to institute any :~ul-t, notion, mend-emus or other prooceding in z _ _ _ _ . . _. _ ... . equity or in la«* for the protection or enforceiraent of any right under this ~e or u~~cier the ].av~s of Arkansas unless such holder previously shell ord~zan.~ have given to tli° Trustee v~ritten notice of the default on account of v;rh~.cl~ suit, action or proceeding is to be taken, and unless the holders of not Jess that: ten per ce3it (IO%} in principal amount of the bonds of this issue then ~autstanding shall have made written request of the Trustee after the right to exercise such powers or right of action, as the case may be, shall. ha~~e accrued, and s3~a11 have afforded the Trustee a reasonable opportunil:y either to proceed to exercise tl~e pov,rers herein granted or granted by the laws of Arkansas, or to institute such action, suit or proceeding in its name, and unless, also, there shall. have been offered to the Trustee reasonable security and indemnity against the costs , expenses and liabilities to be incurred therein or thereby and the Trustee shall have refused or neglected to comply ~ri~:h such request v~ithin a reasonable time, and such zic~tific;~zl:i,on, rcc,ucst an~a offer of inden~t~iiy are l~icreby cleclarcd iiz every such case , at the: optio,~ of the Trustee, to be conclit3-ens preced~~~~l to the execution cif tl~c pe;,Tc~rs ~~rzd trusts of this ordi.nancc or to any other remedy hereunder. It is understood arzci intci~dcd that no ono or r~orc hoJ.clors or registered o~-,m~°rs of the ljonds hereby secured shall have any right in any manner whatever by his or their action to affect, disturb cr ~~rvjudice tl~.e securif~y of this ordinance, or to enforce any right hereunder except in i:he_manncr l~crein pro~~ided , that all ., . proceedings nt la~~r or in equity shall be instituted, had a.~d maintained in the manner herein provided a~zd for tl~ie benefit:. of all holders of the outstandl.ng I~o,zds and coupons , and that any individual righ~:s of action or other right given to one or more of such holders by lave are restricted by this ordinance to the rights and remedies herein provided . . (cj All. rights of action under tlzss ordin~~~~ce or undF.r any of the bonds secux~cd hereby, enforceable ley the Trustcc , ~r3y bc: enforced by ~ ~~yithc~:L the nos~essior~ of: any of the bonds or coupons apr~ei%ailzii~g tl-jereto, and any ~.; such suit, act~.on or proceeding a.nSL~GUiod by the 7'r.ustee shall be brougn~: in i.ts name for t}~e benefit of aJ_1 t}~E holders of such }ponds and cpupons, subject 1 to i:he provisions of this ordinance . . td} loo remed}T herein conferred upon or reserved to the TrLSiee or to the holders and registered owners of the bonds is intended to be exclusi~°e of any other remedy or remedies herein provided, and each and every such remedy shall be cumulative and shall be in addition to every other remedy g itre n here under or given by any other law . (e} ~~o delay or omission of the Trustee or of any holc}ers or registered owners of the bonds to exercise any right or power accrued upon any default shall impair any, such right or power or shall be construed to be a v.~aiver of any such default or an acquiescence t}~.crein; and every poE^,~Er and remedy given by this. ord}.Hance to the Trustee and to the holders and regs.stcred owners of the bands, respectively, may be exercised frorri time to time and as ., often as ~i~ay be deemed expedient.. ~ - .: _ ~ _. . . g That the Trustee may, and upon the written request of the holders (3 - ! . ~ ~. nd re istered owners of not less than ten percent (10%} in principal amount of a g the bonds then outstanding shall, v,~aive,any default which shall have been remedied before the entry of final judgment or decree in any suit, action or -oceedin instituted under the provisions of this Orda.nance or before the corn-- pi g -' n of the enforcement of any other remedy, but no such v4~a~ver s~:all extend pletio . to or affect any other existing or any subsequent default or defaults or impair any rights or remedies consequent thereon. ~ ~ ~. Section 15 . ~~Then the bonds have been executed and the seal ; of the City impressed as herein provided , they shall be delivered to the .Trustee , a~td the '.trustee shall authe37fiicate them and deliver t}~:em to the purchaser upon a -merit in cash of the purchase price of par plus accrued interest from p Y - ~, ~ , ..~ , . -, -~ une z , 1974 to the date of delivery (called "total Salo proceeds"} . The TrusiG{' T s}gall. }7andle the ~:ota1 sale proceeds a s follows: ., , -~ 1- The Tz-ustec shall deposit the amount of the accrued interest in ~~ the Bond Fund e Trustee shall pay expenses of the sale and issuance of the (2) Th letter of delivery instructions signed by the Mayor and bonds a s directed by a delivered to the Trustee . - ~` stee shall deposit the remainder of the total sale proceeds (3) The Tru of the City designated "].974 Public Utility in a special account xn the name . ~~ ed "Construction Fund") 1~~hich shall be established - Construction Fund (call • -~ 'to designated by the Gity and holding z~neznbersh'.P . and maintained z.n a uepos~ z`Y . • C -a .e Ger oration • The moneys. in the Construction fn the Federal Deposa.t In~uz nc• p - - s s of the amount insured by the Federal Deposit Insurance Corporation Fund ? n exc e tinuousl secured by bonds or other direct or fully guaranteed obligations s shall be .con Y -__ ~,.,.~ d States of America, except that any moneys invested as hereinafter of the Unite - secured. The moneys in the Construction Fuz?d shall authorized need not be so meat of the costs of accomplishing the improvements , . be disbursed solely an pay • - ~ - ex eases incid-ental -thereto and paying expenses of issuing paying nece.~sazy p - aid b the purchaser. Disbursements shall be on the basis of the bonds not p y uisitions which shall contain at least the following information: checks- or req ~on to whom payment is being made; the amount of the payment; and the the pets . oral classification of the payment. Each check or requisition purpose of gen the individual occupying the top managerial position. of the must be s z.g ned by S stem , and in the case of a 11 items of expense over which the Engineer sha 11 Y -_ - exercise supervision (v~hich shall include all expenses except engineering -ees, legal fees, and expenses pertaining to the issuance of the bonds) each c}zeck cr requisition shall be accompanied by a certificate signed by the Engineer (or by a representative thereof designated by the Engineer) certifying approval thereof . Ce of re uisitions, the depository shall issue its checl: upon the C;oi~S~r't:Ct1C` In the ca a q Fund payable to the person, firm or corporation designated in the rea~uisiti°r1• The de ository of the Construction Fund shall be required to ]~.eep records as to p meats made on the basis of requisitions, and the West Memphis Utility all pay ommissi~n shall l:cep records of all payments made on the basis of checf.s . C _. _ ~~ - ~ _ _ *_ When tie improven~er~ts 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 managerical position of the System and by the Engineer, 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 certificate sha 11 be filed with the depository of the Construction Fund , and upon receipt thereof the depository of the Construction Fund sha 11 transfer any remaining balance in the Construction Fund to the Bond Fund . Section 1 G , The Mayor is hereby d irected 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 Qrdinance, to which sha 11 be attached a Notice signed by him in substantially the following form: .~. NOTICE l~Totice is hereby given that the City Council of the City of V11~e st Memphis , Arkansas , had adopted the ordinance hereinafter set out; that the City contemplates the issuance of the Public Lrtility Revenue Bonds (Temporary} described ~n the ordinance; that any person interested may appear before the Council on the day of ~, 1974 , 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 day of ].974. t ~, ~ : r~ Mayor ~~ . ~~ Sectiol-i 17. (a~ ~,-Toz~cys hclci fcr i:hc credit of the Con truction f'tind or a~~y othc, fund nay be invested and rci~zvested pursuant to tl~~e direction of the City in direct o~~3i.~?ations of, or oblir~atior~s thc~ ~?rincipal of and interest o;l which are unconditionally guarantecc3 ley, the. ~~lited States Government, or Certific:ate:s of Deposit of banes that ar~^ mornl-~ers of the l,ederal De~3osi.t Insuranc:c Corporation, ~~vhi.clz iilvcstmcr~ts must mature not later th~ln the date or dates ~thc i-rior~cys held for tlzc credit of tl~e particular funu vYi.ll ~~e regti3i~-v<i for - -.ho purposes interdc,d {in the case of invc-:sinaci7ts of moneys in tho Constructio.z Fun:l the; City shall rel~r upo,z tl~e dctermi.natior.~= of the consulting engi?~ners as 'co the elates tf~e moneys in the Const~-uctzon 1`und ~F: ill' be needed} . (b} Investni~nts shall be deemed at all tunes a part of the applical~?e fund and interest accruing thereon and ~~rofit realized from i.nvestn~crri.s 'shall lie credited Lo the applicable fund, •ard lo: scs resulting from 3.nvest n~ents. ur::ll i~o ch~rgod io the applicable fund.. • Section 18. Since these Temporaary Bonds mature June 1, 197G , it ~'~i.ll bo necessary for the City to refund the bonds prior to their maturity., In this regard the City contemplates the issuance of .Public Utility P,evenue Bonds for furnishing the permanent financing of the City's costs of the improvements including the amount necessary to refund these Temporary Bonds and to pay any additional costs for further improvements that may be necessary at the time. Ther~sore,•the City expressly covenants with the Trustee and with the holders of these bonds that i t will , prior to the ma turity d a to of the bonds , issue Public Utility Revenue Bonds in at least that principal amount sufficient to pay, principal and interest, all outstanding bonds of this issue on or before maturity, and continuously to operate the System as a revenue producing undertaking charging sufficient rates for water, electric and sewer services to at least provide adequate moneys for the payment of the reasonable expenses of operation and maintenance of the System, for the payment of the principal of, interest on, and trustee's arr~ paying agent's fees in connection with all outstanding hon.ds and for the discharge a a• ~~' ~.J of any contractual obligation, to which System revenues ar~~ pledged (including particularly bonds that will be issued to accomplish the refunding of these bond s} , for making the required deposit for depreciation and for maintaining all funds at required levels set forth in ordinances authorizing such bonds and contractual obligations to the payment of which System revenues are pledged . It i.s understood that such refunding, or refunding and new money, bonds may be issued on a parity with any outstanding bonds of prior issues if the conditions required for the issuance of parity bonds can then be complied with. ~PCtion 19. The City covenants that it will not take any action or suffer or pe~~'mit any action to be taken or condition to exist tivhich causes or may cause the interest payable on the bonds to be subject to federal income taxation. ~,tiith- out limiting the generality of the foregoing, the City covenants that the proceeds of the sale of the bonds will not be used directly or indirectly in such manner a s to cause the bonds to be treated a s "arbitrage bonds" within the meaning of Section I03 (d} of the Internal Revenue Code of I954, as amended . Section 20. The ~provis~ions of this Ordinance .are her.eby..declar~d to be separable and if any provision shall for any reason be held iller~al or invalid., such holding shall not affect the validity of the remainder of the Ordinance . ~PC-ti ~n 2 I . All end ina nce s and parts of ordinances in conflict he~e~~%ith are hereby repealed to the extent of such conflict. Section 22. This Ordinance shall constitute a contract betv~leen the City and tale bondholders and no rights of any kind shall arise until the bond s '' authorized herein are issued and delivered . Section 23. Ordinance h7o. 799 adopted and approved March 26, 1974, being the ordinance authorizing these I973 Utility Bonds, is hereby rescinded. Section 24 . 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, sassty and welfare thereof are jeopardized , and that the issuance of the bonds and the taking of the other actic3z authorized by this Ordinance is nt~ce:~sary for-. the C~°, 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. Mayor Rodgers brought to the Councils attention a number of City vehicles had been sent to Midsouth Salvage Pool, and bids had been received as follows: Type 1961 Dump Truck No. Bids 12 Low $150 High $759.75 1971 Chevrolet 8 208 502 1972 Plymouth 6 201 x.00 1972 Plymouth Fury 5 201 l~00 1972 Plymouth Fury 5 201 l~20 1972 Plymouth Fury 5 201 x.20 1969 Oldsmobile 88 7 178 376.50 1968 Chevrolet Station Wagon 8 168 309 Motion was made by Alderman Bentley, seconded by Alderman Grimsley: That accept the high bids as presented. Upon vote, the voting was as follows: type: Aldermen: Bentley, Dickerson, Grimsley, Harris, Hutcherson, Payton, and Smith Nay: None . Alderman Horton returned to the meeting. Lee Cramer of the Park Commission requested permission to purchase a small road grader for use of the Commission at City parks and ball fields . Mr. Cramer related efforts to obtain a grader, and inspection of a suitable machine at Pine Bluff cost $3,750.00. After consideration of need, type machine, con~li.tion, and transporting, motion was made by Alderman Smith, seconded by Alderman Horton: That the City waive bid requirements, and authorize purchase of the grader by the Park Commission from Revenue Sharing Funds. Upon vote, the voting was as follows: Aye: Aldermen: Bentley, Dtickerson, Grimsley, Harris, Hutcherson, Payton, Horton, and Smith Nay: None. Mr. Jay Wood, the Mayor's Administrative Assistant, summarized requirements for a grant from Department of HUD and Arkansas Planning Association to employee a college student for three months to complete the City's employee job classification. After consideration of the program, job classification project started by the State, manual of procedure, motion was made by Alderman Bentley, seconded by Alderman Smith: That authorize $750.00 for Matching Funds for job classification project. Upon vote, the voting was as follows : ~: Aldermen: Bentley, Dickerson, Grimsley, Harris, Hutcherson, Payton and Smith ' Nay: Alderman: Horton. Alderman Piton inquired as to lights in front of Eug~e Woods Civic Center, and was informed additional lights ordered due to wind damage would have to be replaced. Alderman Harris brought to Councils attention the dumping of oil, and was advised the matter has been referred to the Pollution Board. Alderman Horton requested study be made of drainage in the eastern section of the City pertaining to ~t~erstate area. Mayor Rodgers stated the railroad representative informed him work at the S. Service Road crossing would be commenced within a month. Use of ball fields by the various Leagues was explained by Lee Cramer of the Park Commission. There being no further business, the Council adjourned. ~,3 .~, ,v-~-~'~. c~ ATE " MAYOR CIT APPROVED: MAY 28, 1971