§ 14-164-402 - Definitions. - Arkansas Statutes

14-164-402. Definitions.

As used in this subchapter:

(1) "Bonds" means revenue bonds issued pursuant to this subchapter;

(2) "Capital improvements" means any of the following:

(A) (i) City or town halls;

(ii) Courthouses; and

(iii) Administrative, executive, or other public offices;

(B) Court facilities;

(C) Jails;

(D) Police and sheriff stations, apparatus, and facilities;

(E) Fire fighting facilities and apparatus;

(F) Public health facilities and apparatus;

(G) Hospitals, homes; and facilities;

(H) Facilities for nonprofit organizations engaged primarily in:

(i) (a) Public health;

(b) Health systems support;

(c) Safety;

(d) Disaster relief; and

(ii) Related activities;

(I) Residential housing for low and moderate income, elderly, or individuals with disabilities and families;

(J) Parking facilities and garages;

(K) Educational and training facilities for public employees;

(L) Auditoriums;

(M) Stadiums and arenas;

(N) Convention, meeting, or entertainment facilities;

(O) Ambulance and other emergency medical service facilities;

(P) Civil defense or early warning facilities and apparatus;

(Q) Air and water pollution control facilities;

(R) Drainage and flood control facilities;

(S) Storm sewers;

(T) Arts and crafts centers;

(U) Museums;

(V) Libraries;

(W) Public parks, playgrounds, or other public open space;

(X) Marinas;

(Y) Swimming pools, tennis courts, golf courses, camping facilities, gymnasiums, and other recreational facilities;

(Z) Tourist information and assistance centers;

(AA) Historical, cultural, natural, or folklore sites;

(BB) Fair and exhibition facilities;

(CC) Streets and street lighting, alleys, sidewalks, roads, bridges, and viaducts;

(DD) Airports, passenger or freight terminals, hangars, and related facilities;

(EE) Barge terminals, ports, harbors, ferries, wharves, docks, and similar marine services;

(FF) Slack water harbors, water resource facilities, waterfront development facilities, and navigational facilities;

(GG) Public transportation facilities;

(HH) Public water systems and related transmission and distribution facilities, storage facilities, wells, impounding reservoirs, treatment plants, lakes, dams, watercourses, and water rights;

(II) Sewage collection systems and treatment plants;

(JJ) Maintenance and storage buildings and facilities;

(KK) Incinerators;

(LL) Garbage and solid waste collection disposal, compacting, and recycling facilities of every kind;

(MM) Gas and electric generation, transmission, and distribution systems, including, without limiting the generality of the foregoing, hydroelectric generating facilities, dams, powerhouses, and related facilities;

(NN) Social and rehabilitative service facilities;

(OO) Animal control facilities and apparatus; and

(PP) Communication facilities and apparatus;

(3) "Chief executive" means the mayor of a municipality or the county judge of a county;

(4) "Clerk" means the clerk or recorder of a municipality or county clerk of a county;

(5) "County" means any county in the State of Arkansas;

(6) "Efficiency savings" means the savings in operational cost realized by the issuer as a result of a performance-based efficiency project, which are capable of being verified by comparing the applicable project's annual operational cost after the implementation, construction, and installation of the performance-based efficiency project with:

(A) The applicable project's actual annual operational cost before the implementation, construction, and installation of the performance-based efficiency project; or

(B) In the case of a new performance-based efficiency project, the applicable project's projected annual operational cost without the implementation, construction, and installation of the performance-based efficiency project as determined by a licensed professional engineer not affiliated or associated with the qualified efficiency engineering company;

(7) "Issuer" means a municipality or a county;

(8) "Legislative body" means the quorum court of a county or the council, board of directors, board of commissioners, or similar elected governing body of a city or town;

(9) "Municipality" means any city or incorporated town in the State of Arkansas;

(10) "Operational cost" means any expenditure by an issuer for the operation of a project, including, but not limited to, utility costs, maintenance costs, payments required for third-party services, service contracts, including, but not limited to, commodities purchase contracts, labor costs, equipment costs, and material costs;

(11) "Ordinance" means an ordinance, resolution, or other appropriate legislative enactment of a legislative body;

(12) "Performance-based efficiency project" means an undertaking throughout which a qualified efficiency engineering company oversees the procurement of materials and services for a capital improvement or a project and the acquisition, development, design, installation, construction, maintenance, monitoring, and operation of a capital improvement or a project, causing an issuer to generate efficiency savings;

(13) "Project" means all, any combination, or any part of the capital improvements defined in subdivision (2) of this section;

(14) "Project revenues" means revenues derived from the capital improvements financed, in whole or in part, with the proceeds of bonds issued under this subchapter;

(15) "Qualified efficiency contract" means a written contract between an issuer and a qualified efficiency engineering company for the completion of a performance-based efficiency project that contains the following terms and conditions:

(A) The qualified efficiency engineering company shall guarantee to the issuer in writing that the issuer will derive efficiency savings from the performance-based efficiency project;

(B) The qualified efficiency engineering company shall guarantee to the issuer the annual amount of efficiency savings to be derived by the issuer from the performance-based efficiency project;

(C) The aggregate efficiency savings guaranteed by the qualified efficiency engineering company shall be in an amount at least equal to the aggregate principal and interest due or projected to become due on any bonds issued under this subchapter for the purpose of accomplishing a performance-based efficiency project;

(D) The qualified efficiency engineering company shall guarantee to the issuer the aggregate amount of efficiency savings to be derived by the issuer from the performance-based efficiency project by providing in favor of the issuer:

(i) A letter of credit issued by a federally insured banking institution;

(ii) An amount of cash equal to the aggregate projected efficiency savings to be placed in escrow with an independent escrow agent;

(iii) A multiyear surety bond insuring the aggregate amount of efficiency savings guaranteed by the qualified efficiency engineering company that must remain in force throughout the term of any revenue bonds issued under this subchapter to finance any costs and expenses associated with the performance-based efficiency project;

(iv) If the qualified efficiency engineering company has an investment-grade credit rating as established in writing addressed to the issuer by an independent third-party credit rating agency, a corporate guarantee of the qualified efficiency engineering company; or

(v) Any combination of subdivisions (16)(D)(i)-(iv) of this section;

(E) The qualified efficiency engineering company shall utilize the International Performance Measurement and Verification Protocol to measure and value the efficiency savings throughout the term of any revenue bonds issued pursuant to this subchapter;

(F) The qualified efficiency engineering company on at least an annual basis shall monitor and reconcile, in units of energy or other appropriate basis depending on the type of operational cost compared, the actual energy savings derived by the issuer from the performance-based efficiency project with the projected energy savings guaranteed by the qualified efficiency engineering company;

(G) If the reconciliation required by subdivision (16)(F) of this section discloses that the issuer derived from the performance-based efficiency project actual energy savings in an amount less than the projected energy savings, the qualified efficiency engineering company shall pay to the issuer the difference between the projected energy savings and the actual energy savings;

(H) (i) Performance-based efficiency project plans and specifications must be prepared by the qualified efficiency engineering company for the issuer and shall bear the seal of the professional engineer who prepared the plans and specifications.

(ii) The professional engineer shall hold a valid professional engineer's license in good standing issued by the State Board of Licensure for Professional Engineers and Professional Land Surveyors; and

(I) The qualified efficiency engineer shall provide in favor of the issuer a payment and performance bond insuring the qualified efficiency engineering company's faithful performance of the installation and construction required under the qualified efficiency contract.

(16) "Qualified efficiency engineering company" means any person or entity that:

(A) Holds a valid general contractor's license in good standing issued by the Contractors Licensing Board; and

(B) Develops, designs, installs, constructs, maintains, measures, monitors, and verifies the operation of a performance-based efficiency project, pursuant to a qualified efficiency contract with an issuer;

(17) "Revenue bonds" means all bonds, notes, certificates or other instruments or evidences of indebtedness the repayment of which is secured by user fees, charges or other revenues other than assessments for local improvements and taxes:

(A) Derived from the project, or improvements financed in whole or in part by such bonds, notes, certificates or other instruments or evidences of indebtedness;

(B) From the operations of any government unit; or

(C) From any other special fund or source other than assessments for local improvements and taxes; and

(18) "Revenues" means project revenues or any other special fund or source other than taxes or assessments for local improvements including, without limitation, any acquired with bond proceeds and the revenues to be derived from them, and any other user fees, charges or revenues derived from the operations of any municipality or county and any agency, board, commission, or instrumentality.