HomeMy WebLinkAboutConstruction of Additions and Improvements to the Sewage Works Bonds ORDINANCE No. 7951-88
Passed by the Common Council of the City of South Bend, Indiana
December 12, iq 88
Attest: `-4"`t— City Clerk
IRENE K. GAMMON
Attest: 6,....,-,....A.4.....) President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
December 13 , ig 88
O(.2%."--.-1/4,2... City Clerk
IRENE K. GAMMON
Approved and signed by me -2` I<--
Ig
d Mayor
ORDINANCE NO. 17W'Sle
AN ORDINANCE CONCERNING THE CONSTRUCTION OF
ADDITIONS AND IMPROVEMENTS TO THE SEWAGE
WORKS OWNED AND OPERATED BY THE CITY OF
SOUTH BEND, INDIANA, THE ISSUANCE OF ADDITIONAL
REVENUE BONDS TO PROVIDE THE COST THEREOF,
THE COLLECTION, SEGREGATION AND DISTRIBUTION
OF THE REVENUES OF SAID WORKS, THE SAFEGUARDING
OF THE INTERESTS OF THE HOLDERS OF SAID BONDS,
AND OTHER MATTERS CONNECTED THEREWITH
WHEREAS, the City of South Bend, Indiana (the "City")
has previously established and now owns and operates through the City
of South Bend Board of Public Works (the "Board of Public Works") , a
sewage works, including the South Bend Waste Water Treatment Plant
(the "Plant") , pursuant to IC 36-9-23 (the "Act") ; and
WHEREAS , the Indiana Department of Environmental
Management (the "I.D.E.M. ") , acting pursuant to 33 U.S.C. 1251 et
seq. and IC 13-7 et seq. on the 16th day of August, 1988 issued a
revised National Pollution Discharge Elimination System ("NPDES")
permit to the City which established new effluent limitations for the
operation of the Plant and revoked the prior NPDES permit issued by
the I.D.E.M. on September 16, 1985; and
WHEREAS, compliance with the requirements of the NPDES
permit by the Board of Public Works will require, and the I.D.E.M.
has ordered, the construction of certain improvements to the Plant to
abate water pollution, said improvements being generally described as
the construction and equipping of additions to the existing
48 , 000 , 000 gallons per day conventional activated sludge plant to
upgrade it and to provide a higher quality of effluent through
chlorination/dechlorination facilities and the upgrading of sludge
thickening digestion and handling facilities (the "Improvements") ;
and
WHEREAS, the City has applied for grants from the
United States Environmental Protection Agency (the "E.P.A. ") and from
the I.D.E.M. in the amount of Twelve Million Twenty-Three Thousand
Eight Hundred Twenty-Six Dollars ($12, 023 ,826) and Three Million Six
Hundred Sixty-Seven Thousand Eight Hundred Twenty-Five Dollars
($3, 667,825) , respectively (hereinafter referred to collectively as
the "Grants") to construct the Improvements; and
WHEREAS, the City has been awarded a total of Thirteen
Million Seven Hundred Fifty-Four Thousand Three Hundred Twenty-Five
Dollars ($13 , 754 , 325) pursuant to the Grants consisting of Ten
Million Eighty-Six Thousand Five Hundred Five Dollars ($10, 086,505)
from the the E . P.A. and Three Million Six Hundred Sixty-seven
Thousand Eight Hundred Twenty Dollars ($3, 667,820) from the I.D.E.M. ;
and
WHEREAS, plans, specifications and cost estimates for
the Improvements have been prepared by engineers employed by the City
and have been approved by the I . D. E.M. , said approval also
constituting the approval of the E.P.A. pursuant to the Grants; and
WHEREAS, the plans, specifications and cost estimates
have been filed with and approved by the Board of Public Works on
October 17, 1988, which on that date authorized the publication of
notice of bids for the construction of the Improvements with the
award of said bids being subject to the award of the Grants and the
issuance of revenue bonds; and
WHEREAS, the cost of the Improvements as estimated by
the engineers is Twenty-Three Million Two Hundred Seventy-Eight
Thousand Seven Hundred Twenty-Five Dollars ($23,278,725) ; and
WHEREAS, the Board of Public Works on November 9th,
1988 adopted a resolution recommending to the Common Council of the
City of South Bend (the "Common Council") the adoption of a new rate
and use ordinance applicable to the sewage works and on November 22,
1988 adopted a resolution recommending to the Common Council the
adoption of a bond ordinance ordering the issuance of sewage works
revenue bonds in an aggregate principal amount of Nine Million Five
Hundred Thousand Dollars ($9 , 500 , 000) to pay for the cost of
acquiring and constructing those portions of the Improvements to the
Plant not paid for with the proceeds of the Grants pursuant to the
provisions of the Act; and
WHEREAS, the Common Council finds that there are now
outstanding bonds payable out of the revenues of the City's sewage
works, designated as "Sewage Works Revenue Bonds, Second Series"
dated July 1, 1971 (the "1971 Bonds") issued pursuant to Ordinance
No. 5298, adopted on May 25, 1971 (the "1971 Bond Ordinance") . Said
1971 Bonds are presently outstanding in the amount of One Million Two
Hundred Five Thousand Dollars ($1,205, 000) maturing annually over a
period ending on October 1, 1990 and bearing interest at the per
annum rate of 6. 10 percent with respect to the 1971 Bonds maturing on
October 1, 1989, and 6.25 percent with respect to the 1971 Bonds
maturing on October 1, 1990;
WHEREAS, the 1971 Bond Ordinance permits the issuance
of additional bonds subordinate and junior in all respects to the
1971 Bonds in respect to the application of the revenues of said
sewage works; and
WHEREAS , the Common Council hereby finds that to
provide funds necessary to pay for the cost of acquiring and
constructing those portions of the Improvements to the Plant not paid
for with the proceeds of the Grants pursuant to the provisions of the
Act, it will be necessary for the City to issue revenue bonds in the
amount of Nine Million Five Hundred Thousand Dollars ($9, 500, 000)
payable solely from the revenues of the City's sewage works; and
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WHEREAS , the Common Council now finds that all
conditions precedent to the adoption of an ordinance authorizing the
issuance of said junior revenue bonds to provide the funds necessary
to pay for the cost of acquiring and constructing those portions of
the Improvements to the Plant not paid for with the proceeds of the
Grants have been complied with in accordance with the provisions of
the Act;
NOW THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF
THE CITY OF SOUTH BEND, INDIANA AS FOLLOWS:
Section 1. The actions of the Board of Public Works in
approving the plans, specifications, and cost estimates and in
advertising for the receipt of bids for the construction of the
Improvements in accordance with said plans, specifications, and cost
estimates are hereby approved, ratified and confirmed and the Board
of Public Works is hereby authorized and directed to proceed with the
construction of the Improvements in accord with said plans,
specifications, and cost estimates which are hereby approved by the
Common Council and by reference made a part of this Ordinance as if
the same were attached hereto and incorporated herein.
The Improvements to the Plant shall be as described above
and shall be acquired and constructed and the bonds herein authorized
shall be issued pursuant to and in accordance with the provisions of
the Act and all acts amendatory thereof and supplemental thereto.
The term "sewage works" , "works", and other like terms when
used in this Ordinance, shall be construed to mean and include the
existing City of South Bend sewage works and all additions,
extensions and improvements thereto, and replacements thereof,
hereafter constructed or acquired, whether from the proceeds of the
bonds herein authorized or otherwise. The term "City" where used in
this Ordinance shall be construed to also include any department,
board, commission, offices or officers of the City.
Section 2 . For the purpose of providing funds necessary to
pay a portion of the costs of acquiring and constructing the
Improvements, together with expenses incidental thereto, including
expenses in connection with the issuance of the bonds and any other
related costs as set forth in the Act, the City shall issue and sell
sewage works revenue bonds designated "City of South Bend, Indiana
Sewage Works Revenue Bonds of 1989" (the "Series 1989 Bonds") in the
aggregate principal amount of Nine Million Five Hundred Thousand
Dollars ($9,500, 000) . The Series 1989 Bonds shall be payable solely
out of the Sinking Fund referred to hereinbelow. Any other
provisions of this Ordinance to the contrary notwithstanding, the
revenue bonds herein authorized to be issued shall be junior and
subordinate in all respects to said now outstanding 1971 Bonds.
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The Series 1989 Bonds shall be issued in fully registered
form in the denomination of Five Thousand Dollars ($5, 000) or any
integral multiple thereof not exceeding the aggregate principal
amount of the Series 1989 Bonds maturing in any one year, shall be
numbered consecutively from 89R-1 upwards and shall bear interest at
a rate or rates not exceeding twelve percent (12%) per annum (the
exact rate or rates to be determined by bidding) . The interest shall
be payable semiannually on the first day of August and the first day
of February of each year beginning August 1, 1989. Interest shall be
calculated on the basis of twelve (12) thirty-day months for a 360
day year. The Series 1989 Bonds shall mature serially on February 1
in the years and amounts as follows:
Years Amounts Years Amounts
1992 $275,000 2001 $500,000
1993 300, 000 2002 550, 000
1994 300, 000 2003 600,000
1995 325, 000 2004 625,000
1996 350,000 2005 675,000
1997 375, 000 2006 750,000
1998 400, 000 2007 800,000
1999 425, 000 2008 850,000
2000 475, 000 2009 925,000
Section 3 . First Interstate Bank of Northern Indiana, N.A.
in the City of South Bend, Indiana is hereby appointed as the
Registrar and the Paying Agent for the Series 1989 Bonds, and is
hereby charged with the responsibility of authenticating the Series
1989 Bonds. The Registrar and Paying Agent shall keep and maintain
at its principal office books for the registration and for the
transfer of the Series 1989 Bonds (the "Series 1989 Bond Register") .
The Controller is hereby authorized and directed, on behalf of the
City, to enter into such agreements or understandings with the
Registrar and Paying Agent as will enable the Registrar and Paying
Agent to perform the services required of a registrar and paying
agent, and is directed to pay the Registrar and Paying Agent for its
services out of available funds of the City.
The principal of and premium, if any, on the Series 1989
Bonds shall be payable at the principal office of the Registrar and
Paying Agent. Interest on the Series 1989 Bonds shall be paid by
check or draft mailed or delivered to the registered owners of the
Series 1989 Bonds at the address as it appears on the Series 1989
Bond Register as of the 15th day of the month immediately preceding
the interest payment date or at such other address as is provided to
the Registrar and Paying Agent in writing by such registered owners.
All payments on the Series 1989 Bonds shall be made in lawful money
of the United States of America.
The Registrar and Paying Agent may at any time resign as
Registrar and Paying Agent by giving thirty (30) days written notice
to the City and by first-class mail to each registered owner of the
Series 1989 Bonds then outstanding, and such resignation will take
effect at the end of such thirty (30) days or upon the earlier
appointment of a successor Registrar and Paying Agent by the City.
Such notice to the City may be served personally or be sent by
registered mail. The Registrar and Paying Agent may be removed at
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any time as Registrar and Paying Agent by the City, in which event
the City may appoint a successor Registrar and Paying Agent. The
City shall notify each registered owner of the Series 1989 Bonds then
outstanding by first-class mail of the removal of the Registrar and
Paying Agent. Notices to registered owners of the Series 1989 Bonds
shall be deemed to be given when mailed by first-class mail to the
addresses of such registered owners as they appear on the Series 1989
Bond Register. Any predecessor Registrar and Paying Agent shall
deliver all the Series 1989 Bonds and cash in its possession and the
Series 1989 Bond Register to the successor Registrar and Paying
Agent.
The Series 1989 Bonds shall be executed in the name of the
City by the manual or facsimile signature of the Mayor of the City
and countersigned by the manual or facsimile signature of the
Controller, and the official seal of the City shall be impressed or a
facsimile thereof shall be printed on each of the Series 1989 Bonds
and attested by the manual or facsimile signature of the City Clerk.
In case any officer whose signature appears on the Series 1989 Bonds
shall cease to be such officer before the delivery of such Series
1989 Bonds, such signature shall nevertheless be valid and sufficient
for all purposes the same as if such officer had remained in office
until delivery thereof. Subject to the provisions for registration,
the Series 1989 Bonds shall be negotiable under the laws of the State
of Indiana.
The Series 1989 Bonds shall be authenticated with the manual
signature of an authorized representative of the Registrar and Paying
Agent and no Series 1989 Bond shall be valid or obligatory for any
purpose until the certificate of authentication on such Series 1989
Bond shall have been so executed.
Section 4. The Series 1989 Bonds shall bear an original
date which shall be the first day of the month in which the Series
1989 Bonds are to be delivered and each Series 1989 Bond shall also
bear the date of its authentication. Series 1989 Bonds authenticated
on or before July 15, 1989, shall be paid interest from the original
date. Series 1989 Bonds authenticated after July 15, 1989, shall be
paid interest from the interest payment date next preceding the date
of authentication of such Series 1989 Bonds unless the Series 1989
Bonds are authenticated between the fifteenth day of the month
preceding an interest payment date and the interest payment date, in
which case interest thereon shall be paid from the next succeeding
interest payment date.
Each Series 1989 Bond shall be transferable or exchangeable
only upon the Series 1989 Bond Registrar by the registered owner
thereof in person, or by his attorney duly authorized in writing,
upon surrender of such Series 1989 Bond together with a written
instrument of transfer or exchange satisfactory to the Registrar and
Paying Agent duly executed by the registered owner or his attorney
duly authorized in writing, and thereupon a new fully registered
Series 1989 Bond or Series 1989 Bonds in the same aggregate principal
amount and of the same maturity shall be executed and delivered in
the name of the transferee or transferees or the registered owner, as
the case may be, in exchange therefor. Series 1989 Bonds may be
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transferred or exchanged without cost to the registered owner, except
for any tax or governmental charge required to be paid with respect
to the transfer or exchange. The Registrar and Paying Agent shall
not be required to transfer or exchange any Series 1989 Bond called
for redemption or during the period from the fifteenth day of any
calendar month immediately preceding an interest payment date to such
interest payment date. The City and the Registrar and Paying Agent
may treat and consider the person in whose name such Series 1989
Bonds are registered as the absolute owner thereof for all purposes
including for the purpose of receiving payment of, or on account of,
the principal and premium, if any, thereof and interest due thereon.
In the event any Series 1989 Bond is mutilated, lost, stolen
or destroyed, the City may execute and the Registrar and Paying Agent
may authenticate a new Series 1989 Bond of like date, maturity and
denomination as that mutilated, lost, stolen or destroyed, which new
Series 1989 Bond shall be marked in a manner to distinguish it from
the Series 1989 Bond for which it was issued, provided that, in the
case of any mutilated Series 1989 Bond, such mutilated Series 1989
Bond shall first be surrendered to the City and Registrar and Paying
Agent, and in the case of any lost, stolen or destroyed Series 1989
Bond there shall be first furnished to the City and the Registrar and
Paying Agent evidence of such loss, theft or destruction satisfactory
to the City and the Registrar and Paying Agent, together with
indemnity satisfactory to them. In the event any such lost, stolen
or destroyed Series 1989 Bond shall have matured, instead of issuing
a duplicate Series 1989 Bond, the City and the Registrar and Paying
Agent may, upon receiving indemnity satisfactory to them, pay the
same without surrender thereof. The City and the Registrar and
Paying Agent may charge the owner of such Series 1989 Bond with their
reasonable fees and expenses in connection with the above. Every
substitute Series 1989 Bond issued by reason of any Series 1989 Bond
being lost, stolen or destroyed shall, with respect to such Series
1989 Bond, constitute a substitute contractual obligation of the
City, whether or not the lost, stolen or destroyed Series 1989 Bond
shall be found at any time, and shall be entitled to all the benefits
of this Ordinance, equally and proportionately with any and all
other Series 1989 Bonds duly issued hereunder.
The Series 1989 Bonds and any bonds hereafter issued on a
parity therewith, as to principal, premium, if any, and interest,
shall be payable from and secured by an irrevocable pledge of and
shall constitute a charge upon all the net revenues (herein defined
as gross revenues after deduction only for the payment of the
reasonable expenses of operation, repair and maintenance but not
including depreciation and payments in lieu of taxes) of the sewage
works of the City of South Bend, including the existing works, the
Improvements and all additions and improvements thereto and
replacements thereof subsequently constructed or acquired; subject
however, to the prior charge against and payment from said net
revenues of the principal of and interest on the now outstanding 1971
Bonds. The City shall not be obligated to pay the bonds herein
authorized or the premium, if any, or the interest thereon except
from the net revenues of said works and said bonds shall not
constitute an indebtedness of the City within the meaning of the
provisions and limitations of the Constitution of the State of
Indiana.
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Section 5. Series 1989 Bonds maturing on or after February
1, 1998, shall be subject to prior redemption on and after February
1, 1997, at the option of the City (to be exercised by the Board of
Public Works) , on any date, in whole or in part, only in authorized
denominations, in inverse order of maturity, and by lot (in such
manner as the Registrar and Paying Agent shall determine) , within a
maturity. Series 1989 Bonds so redeemed shall be redeemed on such
redemption date at a price of 100% of the principal amount of the
Series 1989 Bonds outstanding to be redeemed plus accrued interest to
the redemption date on the principal amount to be redeemed, and
without premium.
Unless waived by any holder of Series 1989 Bonds to be
redeemed, official notice of any such redemption shall be given by
the Registrar and Paying Agent on behalf of the City by mailing a
copy of an official redemption notice by registered or certified mail
at least thirty (30) days and not more than sixty (60) days prior to
the date fixed for redemption to the registered owner of the Series
1989 Bond or Series 1989 Bonds to be redeemed at the address shown on
the Series 1989 Bond Register or such other address as is furnished
in writing by such registered owner to the Registrar and Paying
Agent; provided, however, that failure to give such notice by
mailing, or any defect therein, with respect to any Series 1989 Bond
shall not affect the validity of any proceedings for the redemption
of other Series 1989 Bonds.
All official notices of redemption shall be dated and shall
state:
(1) The redemption date,
(2) The redemption price,
(3) If less than all outstanding Series 1989
Bonds are to be redeemed, the identification
(and, in the case of partial redemption, the
respective principal amounts) of the Series
1989 Bonds to be redeemed,
(4) That on the redemption date the redemption
price will become due and payable upon each
such Series 1989 Bond or portion therof
called for redemption, and that interest
thereon shall cease to accrue from and after
said date, and
(5) The place where such Series 1989 Bonds are to
be surrendered for payment of the redemption
price, which place of payment shall be the
place provided for the payment of the
principal of and premium, if any, on the
Series 1989 Bonds.
Prior to any redemption date, the City shall deposit with
the Registrar and Paying Agent an amount of money sufficient to
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pay the redemption price of all the Series 1989 Bonds or portions of
the Series 1989 Bonds which are to be redeemed on that date.
Official notice of redemption having been given as
aforesaid, the Series 1989 Bonds or portions of the Series 1989 Bonds
so to be redeemed shall, on the redemption date, become due and
payable at the redemption price therein specified, and from and after
such date (unless the City shall default in the payment of the
redemption price) such Series 1989 Bonds or portions of the Series
1989 Bonds shall cease to bear interest. Upon surrender of such
Series 1989 Bonds for redemption in accordance with said notice, such
Series 1989 Bonds shall be paid by the Registrar and Paying Agent at
the redemption price. Series 1989 Bonds redeemed in part may be
exchanged for a Series 1989 Bond or Series 1989 Bonds of the same
maturity in authorized denominations equal to the remaining principal
amount. In addition to the foregoing notice, further notice may be
given by the Registrar and Paying Agent as it deems appropriate by
mail, publication or otherwise to registered securities depositories,
national information services or others containing the above
information and such further information as the Registrar and Paying
Agent may deem appropriate, but no defect in said further notice, nor
any failure to give all or any portion of such further notice shall
in any manner defeat the effectiveness of a call for redemption if
notice therof is given as above described.
Section 6. The form and tenor of the Series 1989 Bonds
shall be substantially as follows (all blanks to be properly com-
pleted prior to the printing of the Series 1989 Bonds):
UNITED STATES OF AMERICA
STATE OF INDIANA COUNTY OF ST. JOSEPH
No. 89R-_ $
CITY OF SOUTH BEND, INDIANA
SEWAGE WORKS REVENUE BOND OF 1989
Interest Maturity Original Authentication
Rate Date Date Date CUSIP
Registered Owner:
Principal Sum:
The City of South Bend, in St. Joseph County, State of
Indiana, for value received, hereby promises to pay to the Registered
Owner as stated above, or registered assigns, solely out of the
special revenue fund hereinafter referred to, the principal sum as
stated above, on the Maturity Date stated above and to pay interest
on said principal sum to the Registered Owner of this bond until the
City's obligation with respect to the payment of said principal sum
shall be discharged, at the rate per annum as specified above from
the interest payment date immediately preceding the date of
authentication of this bond, unless this bond is authenticated on or
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before July 15, 1989, in which case the interest shall be paid from
the Original Date stated above or unless this bond is authenticated
between the 15th day of the month preceding an interest payment date
and the interest payment date, in which case interest shall be paid
from such interest payment date. Interest is payable commencing on
August 1, 1989, and semiannually thereafter on February 1 and August
1 of each year. Interest shall be calculated on the basis of twelve
(12) thirty day months for a three hundred sixty (360) day year.
The principal of and premium, if any, on this bond are
payable at the principal office of First Interstate Bank of Northern
Indiana, N.A. in the City of South Bend, Indiana as Registrar and
Paying Agent (which term shall include any successor Registrar and
Paying Agent) . Interest on this bond shall be paid by check or draft
mailed or delivered to the registered owner hereof at the address as
it appears on the books kept by the Registrar and Paying Agent for
the registration and for the transfer of the bonds (the "Series 1989
Bond Register") as of the 15th day of the month immediately preceding
the interest payment date or at such other address as is provided to
the Registrar and Paying Agent in writing by the Registered Owner.
All payments on this bond shall be made in lawful money of the United
States of America.
This bond is one of an authorized issue of bonds of the City
of South Bend, Indiana aggregating Nine Million Five Hundred Thousand
Dollars ($9 , 500, 000) , numbered consecutively from 89R-1 upwards,
issued for the purpose of providing funds to pay a portion of the
cost of additions and improvements to the City's sewage works,
pursuant to an Ordinance adopted by the Common Council of said City
on December 12 , 1988 entitled "An Ordinance Concerning the
Construction of Additions and Improvements to the Sewage Works Owned
and Operated by the City of South Bend, Indiana, the Issuance of
Additional Revenue Bonds to Provide the Cost Thereof, the Collection,
Segregation and Distribution of the Revenues of said Works, the
Safeguarding of the Interests of the Holders of said Bonds, and Other
Matters Connected Therewith" (the "Ordinance") and in strict compli-
ance with the provisions of IC 36-9-23, and the acts amendatory there-
of and supplemental thereto.
Pursuant to provisions of said Act and said Ordinance, the
principal of and interest on this bond and all other bonds of said
issue and any bonds hereafter issued ranking on a parity therewith,
are payable solely from the Sewage Works Sinking Fund (heretofore
created by Ordinance No. 3959 , adopted February 8 , 1954 , and
maintained by Ordinance No. 5298, adopted on May 25, 1971) to be
provided from the net revenues (herein defined as gross revenues
after deduction only for the payment of the reasonable expenses of
operation, repair, and maintenance but not including depreciation and
payments in lieu of taxes) of the sewage works of the City of South
Bend, including the additions and improvements constructed or
acquired by the use of the proceeds of this bond and the issue of
which it is a part, and all additions and improvements thereto and
replacements thereof subsequently constructed or acquired; subject
however to the prior payment from said Sinking Fund of the principal
of and interest on certain "City of South Bend Sewage Works Revenue
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Bonds, Second Series", dated July 1, 1971, now outstanding in the
principal amount of One Million Two Hundred Five Thousand Dollars
($1,205, 000) , payable annually on October 1, 1989 and October 1, 1990
in accordance with the terms thereof, which bonds constitute a first
lien against said net revenues. This bond, together with interest
hereon, shall not constitute an indebtedness of the City of South
Bend within the provisions and limitations of the Constitution of the
State of Indiana, and the City shall not be obligated to pay this
bond or the interest thereon except from said special fund provided
from said net revenues. Subject to the provisions for registration,
this bond is negotiable under the laws of the State of Indiana.
The City of South Bend irrevocably pledges the entire net
revenues of said sewage works, to the extent necessary for that
purpose, to the prompt payment of principal of and interest on the
bonds authorized by said Ordinance, of which this is one, any bonds
hereafter issued on a parity therewith, and the other outstanding
bonds hereinabove referred to. The City covenants that it will cause
to be fixed, maintained, and collected such rates and charges for
services rendered by said works, as are sufficient in each year for
the payment of the proper and reasonable expenses of operation,
repair, and maintenance of said works, to provide for proper
depreciation and improvement, and for the payment of the sums
required to be paid into said Sinking Fund under the provisions of
said Act and said Ordinance. In the event the City, or proper
officers thereof shall fail or refuse to so fix, maintain and collect
such rates or charges, or if there be a default in the payment of the
interest on or principal of this bond, the owner of this bond shall
have all of the rights and remedies provided for in said Act, and the
acts amendatory thereof and supplemental thereto, including the right
to have a receiver appointed to administer the works and to charge
and collect rates sufficient to provide for the payment of this bond
and the interest thereof.
The City further covenants that it will set aside and pay
into its Sewage Works Sinking Fund a sufficient amount of the net
revenues of said works to meet (a) the interest on all bonds payable
from the revenues of the sewage works as such interest shall fall
due, (b) the necessary fiscal agency charges for paying the bonds and
interest, and (c) the principal of all bonds payable from the
revenues of the sewage works as such principal shall fall due.
The terms and provisions of this bond are continued on the
reverse side hereof. Such continued terms and provisions shall for
all purposes have the same effect as though fully set forth at this
place.
It is hereby certified and recited that all acts,
conditions, and things required by law and the Constitution of the
State of Indiana to be done precedent to and in the execution,
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issuance, sale and delivery of this bond have been properly done,
happened and performed in regular and due form as prescribed by law,
and that the issuance of this bond by the City of South Bend does not
cause any constitutional or statutory limitations of indebtedness to
be exceeded.
This bond shall not be valid or become obligatory for any
purpose until the certificate of authentication hereon shall have
been duly executed by an authorized representative of the Registrar
and Paying Agent.
IN WITNESS WHEREOF, the City of South Bend, in St. Joseph
County, State of Indiana, by ordinance of its Common Council, has
caused this bond to be executed in its corporate name by the manual
or facsimile signature of the Mayor of said City and countersigned by
the manual or facsimile signature of the Controller of said City, and
has caused the seal of said City to be impressed or a facsimile
thereof to be printed hereon and attested by the manual or facsimile
signature of its Clerk.
CITY OF SOUTH BEND, INDIANA
By: (Facsimile)
Mayor
Countersigned: (Facsimile)
City Controller
(Seal of the City)
ATTEST:
(Facsimile)
City Clerk
Registrar' s Certificate of Authentication
This bond is one of the bonds described in the within
mentioned Ordinance.
FIRST INTERSTATE BANK OF
NORTHERN INDIANA, N.A. ,
as Registrar
By:
Authorized Representative
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(Reverse of Bond)
This bond is one of an authorized issue of bonds of the City
of South Bend, Indiana aggregating Nine Million Five Hundred Thousand
Dollars ($9, 500, 000) , numbered consecutively from 89R-1 upwards,
issued pursuant to an Ordinance adopted by the Common Council of said
City on December 12 , 1988 entitled "An Ordinance Concerning The
Construction of Additions and Improvements to the Sewage Works Owned
and Operated by the City of South Bend, Indiana, the Issuance of
Additional Revenue Bonds to Provide the Cost Thereof, the Collection,
Segregation and Distribution of the Revenues of said Works, the
Safeguarding of the Interests of the Holders of said Bonds, and Other
Matters Connected Therewith" (the "Ordinance") and in strict
compliance with the provisions of IC 36-9-23, and the acts amendatory
thereof and supplemental thereto (the "Series 1989 Bonds") .
Reference is hereby made to the Ordinance for a description
of the nature and extent of the rights, duties and obligations of the
owners of the Series 1989 Bonds and the City and the terms on which
this bond is issued, and to all the provisions of the Ordinance to
which the holder hereof by the acceptance of this bond assents.
The City reserves the right pursuant to the terms and
conditions of the Ordinance to authorize and issue additional bonds
hereafter payable out of the revenues of the sewage works, ranking on
a parity herewith or junior hereto for the purpose of financing the
cost of completion of the project for which the Series 1989 Bonds
were issued and future extensions and improvements to the sewage
works.
Series 1989 Bonds maturing on or after February 1, 1998,
shall be subject to prior redemption on and after February 1, 1997,
at the option of the City (to be exercised by the Board of Public
Works), on any date, in whole or in part, only in authorized
denominations in inverse order of maturity and by lot (in such manner
as the Registrar and Paying Agent shall determine) , within a
maturity. Series 1989 Bonds so redeemed shall be redeemed on such
redemption date at a price of 100% of the principal amount of the
Series 1989 Bonds outstanding to be redeemed plus accrued interest to
the redemption date on the principal amount to be redeemed, and
without premium.
Unless waived by any holder of Series 1989 Bonds to be
redeemed, official notice of any such redemption shall be given by
the Registrar and Paying Agent on behalf of the City identifying the
Series 1989 Bonds, by mailing a copy of an official redemption notice
by registered or certified mail at least thirty (30) days and not
more than sixty (60) days prior to the date fixed for redemption to
the registered owner of the Series 1989 Bond or Series 1989 Bonds to
be redeemed at the address shown on the Series 1989 Bond Register or
such other address as is furnished in writing by such registered
owner to the Registrar and Paying Agent; provided, however, that
failure to give such notice by mailing, or any defect therein, with
respect to any Series 1989 Bond shall not affect the validity of any
proceedings for the redemption of other Series 1989 Bonds.
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Prior to any redemption date, the City shall deposit with
the Registrar and Paying Agent an amount of money sufficient to pay
the redemption price of all the Series 1989 Bonds or portions of the
Series 1989 Bonds which are to be redeemed on that date.
Official notice of redemption having been given as
aforesaid, the Series 1989 Bonds or portions of the Series 1989 Bonds
so to be redeemed shall, on the redemption date, become due and
payable at the redemption price therein specified, and from and after
such date (unless the City shall default in the payment of the
redemption price) such Series 1989 Bonds or portions of the Series
1989 Bonds shall cease to bear interest. Upon surrender of such
Series 1989 Bonds for redemption in accordance with said notice, such
Series 1989 Bonds shall be paid by the Registrar and Paying Agent at
the redemption price. Series 1989 Bonds redeemed in part may be
exchanged for a Series 1989 Bond or Series 1989 Bonds of the same
maturity in authorized denominations equal to the remaining principal
amount. In addition to the foregoing notice, further notice may be
given by the Registrar and Paying Agent as it deems appropriate by
mail, publication or otherwise to registered securities depositories,
national information services or others containing the above
information and such further information as the Registrar and Paying
Agent may deem appropriate, but no defect in said further notice, nor
any failure to give all or any portion of such further notice shall
in any manner defeat the effectiveness of a call for redemption if
notice thereof is given as above described.
In the manner provided in the Ordinance, the Ordinance and
the rights and obligations of the City and of the owners of the
Series 1989 Bonds may (with certain exceptions as stated in the
Ordinance) be modified or amended with the consent of the owners of
at least sixty (60%) percent in aggregate principal amount of
outstanding Series 1989 Bonds exclusive of Series 1989 Bonds, if any,
owned by the City.
This bond is transferable or exchangeable only upon the
Series 1989 Bond Register by the registered owner hereof in person,
or by his attorney duly authorized in writing, upon surrender of this
bond together with a written instrument of transfer or exchange
satisfactory to the Registrar and Paying Agent duly executed by the
registered owner or his attorney duly authorized in writing and
thereupon a new fully registered bond or bonds of the same aggregate
principal amount and of the same maturity shall be executed and
delivered in the name of the transferee and transferees or to the
registered owner, as the case may be, in exchange therefore. This
bond may be transferred or exchanged without cost to the registered
owner, except for any tax or governmental charge required to be paid
with respect to the transfer or exchange. The Registrar and Paying
Agent shall not be required to transfer or exchange this bond if it
is called for redemption or during the period from the 15th day of
any calendar month immediately preceding an interest payment date to
such interest payment date.
The City and the Registrar and Paying Agent for this bond
may treat and consider the person in whose name this bond is re-
gistered as the absolute owner hereof for all purposes including for
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the purpose of receiving payment of, or on account of, the principal
and premium, if any, hereof and interest due hereon.
The bonds maturing in any one year are issuable only in
fully registered form in the denomination of Five Thousand Dollars
( $5 , 000 ) or any integral multiples thereof not exceeding the
aggregate principal amount of the bonds maturing in such year.
In the event this bond is mutilated, lost, stolen or
destroyed, the City may execute and the Registrar and Paying Agent
may authenticate a new bond of like date, maturity and denomination
as this bond, which new bond shall be marked in a manner to
distinguish it from this bond; provided that, in the case of this
bond being mutilated, this bond shall first be surrendered to the
City and the Registrar and Paying Agent, and in the case of this bond
being lost, stolen or destroyed, there shall first be furnished to
the City and the Registrar and Paying Agent evidence of such loss,
theft or destruction satisfactory to the City and the Registrar and
Paying Agent, together with indemnity satisfactory to them. In the
event that this bond, being lost, stolen or destroyed, shall have
matured, instead of issuing a duplicate bond, the City and the
Registrar and Paying Agent may, upon receiving indemnity satisfactory
to them, pay this bond without surrender hereof. The City and the
Registrar and Paying Agent may charge the owner of this bond with
their reasonable fees and expenses in connection with the above.
Every substitute bond issued by reason of this bond being lost,
stolen or destroyed shall, with respect to this bond, constitute a
substitute contractual obligation of the City, whether or not this
bond, being lost, stolen or destroyed shall be found at any time, and
shall be entitled to all the benefits of the Ordinance, equally and
proportionately with any and all other bonds duly issued thereunder.
The Registrar and Paying Agent may at any time resign as
Registrar and Paying Agent by giving thirty (30) days written notice
to the City and by first-class mail to the registered owners of bonds
then outstanding, and such resignation will take effect at the end of
such thirty (30) days or upon the earlier appointment of a successor
Registrar and Paying Agent by the City. Such notice to the City may
be served personally or be sent by registered mail. The Registrar
and Paying Agent may be removed at any time as Registrar and Paying
Agent by the City, in which event the City may appoint a successor
Registrar and Paying Agent. The City shall cause the registered
owner of this bond, if then outstanding, to be notified, by first-
class mail of the removal of the Registrar and Paying Agent. Notices
to registered owners of bonds shall be deemed to be given when mailed
by first-class mail to the addresses of such registered owners as
they appear in the registration books kept by the Registrar and
Paying Agent.
If this bond shall have become due and payable in accordance
with its terms or this bond or a portion hereof shall have been duly
called for redemption or irrevocable instructions to call this bond
or a portion hereof for redemption shall be given and the whole
amount of the principal and the premium, if any, and interest, so due
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and payable upon this bond or such portion hereof shall be paid, or
(i) sufficient monies, or (ii) direct obligations of, or obligations
the principal of and interest on which are unconditionally guaranteed
by the United States of America the principal of and the interest on
which when due will provide sufficient monies for such purpose, or
(iii) time certificates of deposit of a bank or banks, fully secured
as to both principal and interest by obligations of the kind
described in (ii) above, the principal of and interest on which when
due will provide sufficient monies for such purpose, shall be held in
trust for such purpose, then and in that case this bond or such
portion hereof shall no longer be deemed outstanding or an
indebtedness of the City.
The following abbreviations, when used in the inscription of
the face of this bond, shall be construed as though they were written
out in full according to applicable laws or regulations:
TEN. COM. as tenants in common
TEN. ENT. as tenants by the entirety
JT. TEN. as joint tenants with right of
survivorship and not as tenants
in common
UNIF. GIFT
MIN. ACT Custodian
(Cust. ) (Minor)
under Uniform Gifts to Minors Act of
(State)
Additional abbreviations may also be used although not in
the above list.
Assignment
For value received, the undersigned hereby sells, assigns
and transfers unto
(Please print or typewrite name and address of transferee)
this bond and all rights hereunder and hereby irrevocably constitutes
and appoints attorney,
to transfer this bond on the books kept for the registration hereof
with full power of substitution in the premises.
Date:
Notice: The signature above must
correspond with the name of the
registered owner as it appears on
the front of this bond in every
particular without alteration or
enlargement or any change
whatsoever. )
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Signature Guaranteed:
NOTICE: Signature(s) must be guaranteed
by a member firm of the New York Stock
Exchange or a commercial bank or trust
company.
Section 7. The City Controller is hereby authorized and
directed to have the Series 1989 Bonds prepared. After said Series
1989 Bonds have been properly executed, the City Controller shall
deliver the same to the Treasurer of St. Joseph County, ex officio
Treasurer of the City of South Bend, and shall take his receipt
therefor, and upon the consummation of the sale of said Series 1989
Bonds the City Controller shall certify to the Treasurer the amount
which the purchaser is to pay for the same together with the name and
address of the purchaser ; thereupon, the Treasurer shall be
authorized to receive from the purchaser the amount so certified by
the Controller, and to deliver the Series 1989 Bonds to such
purchaser and take the purchaser ' s receipt for the Series 1989
Bonds. The amount to be certified by the Controller and collected by
the Treasurer shall be the full amount which the purchaser has agreed
to pay therefore, which shall not be less than Ninety-Seven and Five
Tenths per cent (97.5%) of the face value of said Series 1989 Bonds,
plus accrued interest from the date thereof to the date of delivery.
If the Treasurer of St. Joseph County is not available, then the
Controller shall deliver the Series 1988 Bonds to the purchaser, and
deliver the proceeds to the Treasurer of St. Joseph County. The
Controller and the Treasurer of St. Joseph County shall then report
the proceedings to the Common Council of the City. The Series 1989
Bonds herein authorized, when fully paid for and delivered to the
purchaser, shall be binding special revenue obligations of the City,
payable out of the revenues of the City's sewage works to be set
aside into the Sewage Works Sinking Fund as herein provided, and the
proceeds derived from the sale of said Series 1989 Bonds shall be and
are hereby set aside for application to the cost of acquisition and
construction of the Improvements and the expenses necessarily
incurred in connection therewith and on account of or in connection
with the issuance of said Series 1989 Bonds. The proper officers of
the City are hereby directed to do all acts and things which may be
necessary to carry out the provisions of this Ordinance.
Section 8. Prior to the sale of said Series 1989 Bonds the
City Controller shall cause to be published a notice of such sale two
(2) times at least one week apart in the South Bend Tribune and The
Tri-County News published in the City of South Bend, Indiana, the
first publication made at least fifteen (15) days before the date of
the sale, and the second publication made at least three (3) days
before the date of the sale. Said notice, or a summary of the terms
thereof, may be published in The Indianapolis Commercial, published
in Indianapolis, Indiana and The Bond Buyer, published in New York,
New York and/or other newspapers at the discretion of the
Controller. The bond sale notice shall state the time and place of
sale, the character and amount of the Series 1989 Bonds, the maximum
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rate of interest thereon, the maturities thereof, the purpose for
which the bonds are being issued, the terms and conditions upon which
bids will be received and the sale made, and such other information
as the City Controller and the attorneys employed by the City shall
deem advisable and as provided by the Act. Said notice shall
provide, among other things, that each bid shall be accompanied by a
certified or cashier's check in the amount of Ninety-Five Thousand
Dollars ($95, 000) to guarantee performance on the part of the bidder,
and that in the event the successful bidder shall fail or refuse to
accept delivery of the Series 1989 Bonds and pay for the same within
the time fixed in the notice of sale, then said check and the
proceeds thereof shall be the property of the City and shall be
considered as its liquidated damages on account of such default.
All bids for the Series 1989 Bonds shall be sealed and shall
be presented to the City Controller at her office. Bidders for said
Series 1989 Bonds shall be required to name the rate or rates of
interest which the Series 1989 Bonds are to bear, not exceeding the
maximum rate hereinbefore fixed. Such interest rate or rates shall
be in multiples of one-eighth (1/8) or one-twentieth (1/20) of one
percent (1%) . Bids specifying more than one interest rate shall also
specify the amount and maturities of the Series 1989 Bonds bearing
each rate, but all Series 1989 Bonds maturing on the same date shall
bear the same interest rate. The interest rate on Series 1989 Bonds
of a given maturity must be at least as great as the interest rate on
Series 1989 Bonds of any earlier maturity. The Series 1989 Bonds
shall be awarded by the City Controller to the highest qualified
bidder who has submitted his bid in accordance with the terms of this
Ordinance and the notice of sale. The highest bidder will be the one
who offers the lowest net interest cost to the City, to be determined
by computing the total interest on all of the Series 1989 Bonds from
the date thereof to the date of maturity and deducting therefrom the
premium bid, if any, or adding thereto the amount of any discount, if
any. No bid for less than Ninety-Seven and Five Tenths percent
(97 . 5%) of the par value of said Series 1989 Bonds, plus accrued
interest at the rate or rates named to the date of delivery, shall be
considered. The right to reject any and all bids shall be reserved.
In the event an acceptable bid is not received on the date fixed in
the notice, the City Controller shall be authorized to continue the
sale from day to day for a period of not to exceed thirty (30) days
without readvertisement, but during such continuation no bid shall be
accepted which is lower than or equal to the highest bid offered at
the advertised sale.
Prior to the delivery of the Series 1989 Bonds, the City
Controller shall be authorized to obtain a legal opinion as to the
validity of the Series 1989 Bonds from Baker & Daniels, acting as
bond counsel for the City, and to furnish such opinion to the
purchaser of the Series 1989 Bonds. The fee of such bond counsel
shall be considered as a part of the cost of the project on account
of which the Series 1989 Bonds are issued, and shall be paid out of
the proceeds of said Series 1989 Bonds.
Section 9. The Series 1989 Bonds herein authorized, when
fully paid for and delivered to the purchaser, shall be valid and
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binding special revenue obligations of the City, payable solely out
of the revenues of the City of South Bend Sewage Works to be fixed
and set aside into the hereinafter referenced Sinking Fund, and the
proceeds derived from the Series 1989 Bonds shall be and hereby are
set aside for application by the City solely to the payment of the
cost of acquiring and constructing the Improvements, together with
expenses incidental thereto, including expenses in connection with
the issuance of the Series 1989 Bonds. The proper officers of the
City are hereby authorized and directed to draw all proper and
necessary warrants and to do whatever acts and things may be
necessary or appropriate in their judgment to carry out the provi-
sions of this Ordinance.
Section 10. The first proceeds of the Series 1989 Bonds
shall be used to repay all amounts advanced by the City for
preliminary expenses in accordance with the Act. Any accrued
interest, premium and unused discount received at the time of the
delivery of the Series 1989 Bonds shall be placed in the Capitalized
Interest Fund described below. The remaining proceeds from the sale
of the Series 1989 Bonds shall be deposited in a special fund to be
designated as the "City of South Bend Sewage Works Construction Fund"
(the "Construction Fund") less an amount equal to the difference
between those interest payments becoming due and payable on August 1,
1989, February 1, 1990 and August 1, 1990 on the Series 1989 Bonds
and such accrued interest, premium and unused discount, which amount,
together with such accrued interest, premium and unused discount
shall be deposited in a special fund to be designated as the "Series
1989 Bonds Sewage Works Capitalized Interest Fund" (the "Capitalized
Interest Fund") and used to pay interest becoming due and payable on
the Series 1989. Bonds on such dates, with such accrued interest,
premium and unused discount to be applied first commencing with that
interest payment due on August 1, 1989. Both such funds shall be in
the custody and under the control of the Board of Public Works and
shall be deposited with a legally qualified depository or
depositories for funds of the City as provided by law and shall be
segregated and kept separate and apart from all other funds of the
City and may be invested as permitted by law. The money in the
Construction Fund shall be expended only for the purpose of paying
the cost of acquiring and constructing the Improvements together with
expenses incidental thereto, including expenses in connection with
the issuance of the Series 1989 Bonds and any other costs as set
forth in the Act. Any balances in the Construction Fund after the
completion of the acquisition and construction of the Improvements
which are not required to meet unpaid obligations incurred in
connection with the acquisition and/or construction of the
Improvements together with expenses incidental thereto, including
expenses in connection with the issuance of the Bonds, shall be
deposited in the Sewage Works Sinking Fund and used solely for the
purposes of that fund as provided for herein.
Subject to the approval of the Board of Public Works, the
City Controller shall be authorized to invest, subject to the
provisions of IC 5-13 as may be amended from time to time, and
subject to Section 148 of the Code as defined below, as may be
amended from time to time, the funds in said Construction Fund and
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other funds hereunder. Any interest or other accretions derived
from any such investment shall become a part of the funds invested
unless not required for the purpose of such funds in which case such
interest and other accretions shall, subject to the requirements of
Section 148 of the Code as defined below, be deposited into the
hereinbelow described Sinking Fund. In conformity with the pro-
visions of the governing statutes, the holders of said Series 1989
Bonds shall be entitled to a lien on the proceeds of the Series 1989
Bonds until the same are applied to the costs of the acquisition and
contruction of the Improvements as provided for herein.
Section 11. All of the revenues derived from the operation
of the City's sewage works shall be segregated and kept in a special
fund, separate and apart from all other funds of the City. Out of
this fund all proper and reasonable expenses of operation, repair and
maintenance of the works shall be paid, and the requirements of the
funds and accounts designated hereunder shall be provided.
Section 12 . The special fund designated "Sewage Works
Sinking Fund, " created by Ordinance No. 3959, adopted on February 8,
1954 for the payment of the Sewage Works Revenue Bonds, dated April
1, 1954, and maintained by Ordinance No. 5298 adopted on May 25,
1971, for the payment of the 1971 Bonds is hereby designated and
constituted as the special fund for the payment of the interest on
and principal of the bonds authorized by this Ordinance and the
payment of any fiscal agency charges in connection with the payment
of the bonds and interest thereon. Said fund shall be continued
until all of the bonds issued under said prior ordinances and this
Ordinance have been paid. There shall be set aside and paid into
said Sinking Fund monthly, as available, a sufficient amount of the
net revenues of said sewage works for the payment of (a) the interest
on all bonds which by their terms are payable from the revenues of
the sewage works, as such interest shall fall due, (b) the necessary
fiscal agency charges for paying said bonds and interest, (c) the
principal of all bonds which by their terms are payable from the
revenues of the sewage works, as such principal shall fall due, and
(d) an additional amount as a margin of safety and for the payment of
premiums upon bonds redeemed by call or purchase, which margin,
together with any unused surplus of such margin carried forward from
the preceding year, shall equal not less than ten percent (10%) of
all other amounts so required to be paid into said Sinking Fund;
provided, however, that the 1971 Bonds shall have priority in respect
to the payment of interest and principal from the funds in said
Sewage Works Sinking Fund. The term "net revenues" as used in this
section shall be construed to mean the revenues remaining after the
costs of operation, maintenance and repair have been paid. The
monthly payments into said Sinking Fund shall be in an amount equal
to at least one-twelfth (1/12) of the amount required for such
payments during the then next succeeding twelve (12) calendar months
and shall continue until such time as said fund shall contain an
amount sufficient to pay all of the bonds then outstanding, together
with the interest thereon to the dates of maturity thereof. In
addition to said required monthly payments into the Sewage Works
Sinking Fund, all of the net revenues of said sewage works not used
in making said required Sinking Fund payments shall be set aside and
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paid into said Sinking Fund monthly, as available, until there has
been accumulated in said Sinking Fund an amount sufficient to meet
the requirements of that fund for the then next succeeding twelve
(12) calendar months, which amount shall be the maximum amount
required to be maintained at any time in said Sinking Fund.
In no event shall any part of the Sewage Works Sinking Fund
be used in calling bonds for redemption prior to maturity, except to
the extent that the amount then in said Sinking Fund exceeds the
amount required to pay the principal of the bonds payable therefrom
which will mature within a period of twelve (12) calendar months next
following the date of such redemption, together with all interest on
the bonds payable in said period. Any such excess funds above said
required level may also be used in purchasing outstanding bonds at a
price less than the then applicable redemption price, if first
approved by the Board of Public Works. Monies in said Sinking Fund
shall not be used for any other purpose whatsoever except as provided
in this Ordinance.
Section 13 . In the event all required payments into the
Sewage Works Sinking Fund have been met to date and there has been
accumulated in said Sewage Works Sinking Fund an amount sufficient to
meet the requirements of said Sinking Fund for the then next
succeeding twelve (12) calendar months, and (1) funds in an amount
sufficient for the operation, repair, and maintenance of the works
for the next succeeding twelve (12) calendar months have been
accumulated and reserved for that purpose and deposited in a fund
hereby designated as the "Sewage Works Operation and Maintenance
Reserve Fund" (the "Operation and Maintenance Reserve Fund") , and (2)
the requirements of Ordinance No. 3959 as to the Sewage Works
Depreciation Fund have been met, then any excess revenues of the
sewage works available may be placed in the fund designated as the
"Sewage Works Improvement Fund", created by said ordinance, and be
used to pay the cost of additions and extensions to the sewage
works. No revenues of the sewage works shall be deposited in or
credited to the Sewage Works Depreciation Fund or Sewage Works
Improvement Fund which will interfere with the requirements of the
Sewage Works Sinking Fund or with the requirements as to reserving
funds for the operation, maintenance and repair of the sewage works.
Section 14 . When the 1971 Bonds shall have matured and all
principal and interest payments on said bonds have been made, or
funds in an amount sufficient to pay when due at maturity the
principal of all of the 1971 Bonds then outstanding, together with
the interest thereon to the date of maturity thereof (the "Defeasance
Amount") have been deposited with a financial institution appointed
by the City as escrow trustee for purposes of holding the Defeasance
Amount in trust for the holders of the 1971 Bonds and making, when
due, all required principal and interest payments on said 1971 Bonds,
then the provisions of Section 12 herein shall no longer be appli-
cable to the Series 1989 Bonds and the provisions of this section
shall be applicable and in full force and effect for the Series 1989
Bonds and any additional bonds issued pursuant to the provisions of
this Ordinance.
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The special fund designated "Sewage Works Sinking Fund",
created by Ordinance No. 3959 , adopted on February 8, 1954 and
maintained by Ordinance No. 5298 adopted on May 25, 1971, for the
payment of the 1971 Bonds is hereby designated and constituted as the
special fund for the payment of the interest on and principal of the
Series 1989 Bonds and the payment of any fiscal agency charges in
connection with the payment of the bonds and interest. Said fund
shall be continued until all of the bonds issued under this Ordinance
have been paid. The Sinking Fund shall consist of a Debt Service
Account and a Reserve Account. There shall be set aside and paid into
the Debt Service Account of said Sinking Fund monthly, as available,
a sufficient amount of the net revenues of said sewage works for the
payment of (a) the interest on all bonds which by their terms are
payable from the revenues of the sewage works, as such interest shall
fall due, (b) the necessary fiscal agency charges for paying said
bonds and interest and (c) the principal of all bonds which by their
terms are payable from the revenues of the sewage works, as such
principal shall fall due. The term "net revenues" as used in this
section shall be construed to mean the gross revenues remaining after
the monthly costs of operation, maintenance and repair have been paid
but not including depreciation or payments in lieu of taxes. The
monthly payments into said Sinking Fund shall be in an amount equal
to at least one-sixth (1/6th) of the amount required for the interest
on all bonds which by their terms are payable from the revenues of
the sewage works during the next succeeding six (6) calendar months
and an amount equal to one-twelfth (1/12th) of the amount required
for such payments during the next succeeding twelve (12) calendar
months for the hereinabove described purposes other than interest
payments. All of the net revenues of the sewage works not used in
making the required Debt Service Account payments shall next be set
aside as available and paid into the Reserve Account monthly in an
amount at least equal to the maximum annual debt service on the
Series 1989 Bonds multiplied by a fraction the numerator of which is
one (1) and the denominator of which is the number of whole months
remaining from the date of the earlier of maturity or defeasance of
the 1971 Bonds to January 1, 1991 until there has been accumulated in
said Reserve Account an amount equal to said maximum annual debt
service.
In no event shall any part of the Sewage Work Sinking Fund
be used in calling the Series 1989 Bonds for redemption prior to
maturity, except to the extent that the amount then in said Sinking
Fund exceeds the amount required to pay the principal of the Series
1989 Bonds payable therefrom which will mature within a period of
twelve (12) calendar months next following the date of such redemp-
tion, together with all interest on the Series 1989 Bonds payable in
said period. Any such excess of funds above said required level may
also be used in purchasing outstanding bonds at a price less than the
then applicable redemption price, if first approved by the Board of
Public Works. Monies in said Sinking Fund shall not be used for any
other purpose whatsoever except as provided in this Ordinance.
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Section 15. When the 1971 Bonds shall have matured and all
interest and principal payments on said bonds have been made, or the
Defeasance Amount has been deposited with the escrow trustee as
provided for herein, the provisions of Section 13 herein shall no
longer be applicable to the Series 1989 Bonds and the provisions of
this section shall be applicable and in full force and effect for the
Series 1989 Bonds and any additional bonds issued pursuant to the
provisions of this Ordinance.
The Sewage Works Depreciation Fund created by Ordinance No.
3959 shall be terminated and all amounts in said fund at the time of
termination shall be placed in the fund designated as the "Sewage
Works Improvement Fund" created by said ordinance.
In the event all required monthly payments into the Sewage
Works Sinking Fund have been met to date, then any excess revenues of
the sewage works shall be placed monthly as available in the fund
hereby designated as the "Operation and Maintenance Reserve Fund" in
an amount at least equal to one-fourth (1/4) of the then current
annual budget for operation, repair and maintenance of the sewage
works ( including depreciation and payments in lieu of taxes)
multiplied by a fraction the numerator of which is one and the
denominator of which is the number of whole months from the earlier
of maturity or defeasance of the 1971 Bonds to January 1, 1991,
provided that on January 1, 1991 sufficient revenues shall have been
deposited, to the extent available, in such fund so that the balance
in such fund shall equal one-fourth (1/4) of the then current annual
budget for operation, repair and maintenance of the sewage works and
thereafter deposits to such fund shall be made, to the extent
revenues are available, in an amount sufficient to maintain a reserve
equal to one-fourth (1/4) of the then current annual budget for
operation, repair and maintenance of the sewage works. Funds in such
Operation and Maintenance Reserve Fund shall be used as a reserve to
pay the expenses of operation, maintenance and repair of the sewage
works including depreciation and payments in lieu of taxes. Any
excess revenues of the sewage works thereafter available may be
placed in the fund designated as the "Sewage Works Improvement Fund",
created by Ordinance No. 3959 , and be used to pay the cost of
additions, improvements and extensions to the sewage works. No
revenues of the sewage works shall be deposited in or credited to the
Sewage Works Improvement Fund which will interfere with the
requirements of the Sewage Works Sinking Fund or the Operation and
Maintenance Reserve Fund.
In the event of any deficiency at any time in the Sewage Works
Sinking Fund for the purposes of paying the interest on or principal
of the Series 1989 Bonds or such additional bonds as authorized
herein or any required fiscal agency charges, funds may be withdrawn
from the Operation and Maintenance Reserve Fund and the Sewage Works
Improvement Fund for deposit into said Sinking Fund in the amount of
such deficiency. Additionally, funds may be transferred from the
Sewage Works Improvement Fund to the Operation and Maintenance
Reserve Fund as may be required by the purposes of such fund.
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Section 16. All revenues received on account of the sewage
works shall be segregated and kept in a special fund separate and
apart from all other funds of the City. The City shall keep proper
books of records and accounts, separate from all of its other records
and accounts, in which complete and correct entries shall be made
showing all revenues collected from said works and all disbursements
made therefrom on account of the operation of the works, to meet the
requirements of the Sewage Works Sinking Fund, also all other
financial transactions relating to said works, including the amounts
set aside or credited to the Sewage Works Depreciation Fund, until
terminated as provided for hereinabove, the Operation and Maintenance
Reserve Fund and the Sewage Works Improvement Fund, and the cash
balances in each of said funds as of the close of the preceding
fiscal year. There shall be prepared and furnished upon written
request to the original purchaser of the Series 1989 Bonds and to any
subsequent holder of the bonds at the time then outstanding, not more
than ten (10) months after the close of each fiscal year, operating
income and expense and balance sheet statements of the sewage works,
covering the preceding fiscal year, which annual statements shall be
certified by the City Controller, or the person charged with the duty
of auditing the books and records relating to said works, or be
prepared by an independent certified public accountant retained for
that purpose. Copies of all such statements and reports shall be
kept on file in the office of the City Controller. Any holder or
holders of the bonds then outstanding shall have the right at all
reasonable times to inspect the sewage works and all records,
accounts and data of the City relating thereto. Such inspections may
be made by representatives duly authorized by written instrument.
Section 17 . The City shall, by ordinance of the Common
Council, maintain just and equitable rates or charges for the use of
and the services rendered by the sewage works, to be paid by the
owner of each and every lot, parcel of real estate or building that
is connected with and uses said sewage works by or through any part
of the sewage system of the City, or that in any way uses or is
served by such works. Such rates or charges shall be sufficient in
each year for the payment of the proper and reasonable expenses of
operation, repair and maintenance of the works, for depreciation and
improvement, and for the payment of the sums required to be paid into
the Sewage Works Sinking Fund by said governing Act. Such rates or
charges shall, if necessary, be changed and readjusted from time to
time so that the revenues therefrom shall always be sufficient to
meet the expenses of operation, repair and maintenance, depreciation
and improvement, and the requirements of the Sewage Works Sinking
Fund. In no event shall the annual gross revenues of the sewage
works after the payment of the expenses of operation, repair and
maintenance (but not including depreciation and payments in lieu of
taxes) be less than One Hundred and Twenty-Five percent (125%) of the
annual interest and principal requirements of the Series 1989 Bonds
and said additional bonds.
Section 18. If the proceeds of the Series 1989 Bonds plus
the amount of the Grants awarded are less than the cost of the sewage
works to be financed in part hereunder, the City reserves the right
to issue additional revenue bonds to provide the amount of the
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deficit and costs associated therewith including the cost of issuing
such additional revenue bonds (the "Completion Bonds") . Unless the
context otherwise requires, such additional revenue bonds shall be
considered part of the issue of the Series 1989 Bonds and are
entitled to payment from the same fund, without priority for the
Series 1989 Bonds.
In addition, the City reserves the right to authorize and issue
additional bonds, payable out of the revenues of its sewage works,
ranking on a parity with the bonds authorized by this ordinance, for
the purpose of financing the cost of future additions, extensions and
improvements to the sewage works. In the event any parity bonds are
issued pursuant to this Section 18 , the term "bonds" in this
Ordinance shall, unless the context otherwise requires, be deemed to
refer to the bonds authorized to be issued by this Ordinance and such
parity bonds and other changes may be made herein as required to
reflect the issuance of such parity bonds. The authorization and
issuance of parity bonds (other than Completion Bonds) shall be
subject to the following conditions precedent:
(a) The interest on and principal of all bonds payable from
the revenues of the sewage works shall have been paid to date.
(b) All deposits in the Sewage Works Sinking Fund required
by Ordinance No. 5298, adopted May 25, 1971, and by this Ordinance,
shall have been made.
(c) (i) The net operating revenues of the sewage works in
the fiscal year immediately preceding the issuance of any such bonds
ranking on a parity with the bonds authorized by this Ordinance shall
not be less than one hundred twenty-five percent (125%) of the
maximum annual interest and principal requirements of the then
outstanding bonds and the additional parity bonds to be issued; or
prior to the issuance of said parity bonds the sewage rates and
charges shall be increased or the service area or customer base shall
be expanded sufficiently so that said increased rates and charges
and/or volume applied to the previous fiscal year's operations would
have produced net operating revenues for said year equal to not less
than one hundred twenty-five percent (125%) of the maximum annual
interest and principal requirements of the then outstanding bonds and
the additional parity bonds proposed to be issued. (ii) The
anticipated net revenues of the sewage works shall be sufficient to
provide, within forty-eight (48) months of the issuance of such
parity bonds, a balance in the Reserve Account at least equal to the
maximum annual interest and principal requirements of the then
outstanding bonds and the additional parity bonds proposed to be
issued. (iii) For the purposes of this subsection, the records of
the sewage works shall be analyzed and all showings shall be prepared
by a certified public accountant or independent financial advisor
employed by the City for that purpose.
(d) The principal of the additional parity bonds shall be
payable annually on February 1 and the interest semiannually on
February 1 and August 1 in the years in which principal and interest
are payable.
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(e) The date of earliest redemption in advance of maturity
of additional parity bonds issued pursuant to this section shall be
no earlier than February 1, 1997:
Section 19. For the purpose of further safeguarding the
interests of the holders of the bonds herein authorized, it is
specifically provided as follows:
(a) All contracts let by the City in connection with the
acquisition and construction of the Improvements to the sewage works
shall be let after due advertisement as required by the laws of the
State of Indiana, and all contractors shall be required to furnish
surety bonds in an amount equal to at least one hundred percent
(100%) of the amount of such contracts, to insure the completion of
said contracts in accordance with their terms, and such contractors
shall also be required to carry such employers' liability and public
liability insurance as are required under the laws of the State
of Indiana in the case of public contracts, and shall be governed in
all respects by the laws of the State of Indiana relating to public
contracts.
(b) The works shall be constructed under the supervision and
subject to the approval of Tenech Engineers, or such other competent
engineers as shall be designated by the Board of Public Works. All
estimates for work done or material furnished shall first be checked
by the engineer and approved by the Board of Public Works.
(c) The City shall at all times maintain its sewage works in
good condition and operate the same in an efficient manner and at a
reasonable cost.
(d) So long as any of the bonds herein authorized are
outstanding, the City shall maintain insurance on the insurable parts
of said works of a kind and in an amount such as would normally be
carried by private companies engaged in a similar type of business.
All insurance shall be placed with responsible insurance companies
qualified to do business under the laws of the State of Indiana.
Insurance proceeds shall be used in replacing or repairing the
property destroyed or damaged; or if not used for that purpose shall
be treated and applied as net revenues of the works.
(e) So long as any of the bonds herein authorized are
outstanding, the City shall not mortgage, pledge or otherwise
encumber such works, or any part thereof, nor shall it sell, lease or
otherwise dispose of any portion thereof except replaced equipment
which may become worn out or obsolete or other property not required
for the proper operation and maintenance of the works.
(f) Except as otherwise provided in Section 18 of this
Ordinance, so long as any of the bonds herein authorized are
outstanding, no additional bonds or other obligations pledging any
portion of the revenues of said sewage works shall be authorized,
executed or issued by the City except such as shall be made
subordinate and junior in all respects to the bonds herein
authorized, unless all of the bonds herein authorized are redeemed
-25-
and retired coincidentally with the delivery of such additional bonds
or other obligations, or, as provided in section 20 herein, funds
sufficient to effect such redemption are available and set aside for
that purpose at the time of issuance of such additional bonds.
(g) The City shall take all actions or proceedings necessary
and proper to require connection of all property where liquid and
solid waste, sewage, night soil, or industrial waste is produced,
with available sanitary sewers; and further take necessary action to
regulate the use of public and private sewers and drains. The City
shall, insofar as possible, cause all such sanitary sewers to be
connected with said sewage works.
(h) The provisions of this Ordinance shall constitute a
contract by and between the City of South Bend and all the holders of
the bonds herein authorized, and after the issuance of said bonds
this Ordinance shall not be repealed or amended in any respect which
will adversely affect the rights of the holders of said bonds, nor
shall the Common Council or other body of the City adopt any law,
ordinance or resolution which in any way adversely affects the rights
of such holders so long as any of said bonds or the interest thereon
remains unpaid.
(i) The provisions of this Ordinance shall be construed to
create a trust in the proceeds of the sale of the Series 1989 Bonds
herein authorized for the uses and purposes herein set forth, and the
holders of the Series 1989 Bonds shall retain a lien on such proceeds
until the same are applied in accordance with the provisions of this
Ordinance and of said governing Act. The provisions of this
Ordinance shall also be construed to create a trust in the portion of
the net revenues herein directed to be set apart and paid into the
Sewage Works Sinking Fund for the uses and purposes of said fund as
in this Ordinance set forth. The holders of said bonds shall have
all of the rights, remedies and privileges set forth in the pro-
visions of the governing Act hereinbefore referred to, including the
right to have a receiver appointed to administer said sewage works,
in the event of default in the payment of the principal of or
interest on any of the bonds herein authorized not cured within a
period of thirty (30) days.
Section 20. If, when the Series 1989 Bonds or a portion
thereof shall have become due and payable in accordance with their
terms or shall have been duly called for redemption or irrevocable
instructions to call the Series 1989 Bonds or a portion thereof for
redemption shall have been given, and the whole amount of the prin-
cipal of and premium, if any, and interest so due and payable upon
all of the Series 1989 Bonds or a portion therof then outstanding
shall be paid or (i) sufficient monies, or (ii) direct obligations
of, or obligations the principal of and interest on which are uncon-
ditionally guaranteed by, the United States of America, the principal
of and the interest on which when due will provide sufficient monies
for such purpose, or (iii) time certificates of deposit of a bank or
banks fully secured as to both principal and interest by obligations
of the kind described in (ii) above, the principal of and interest on
which when due will provide sufficient monies for such purpose, shall
-26-
be held in trust for such purpose, and provision shall also have been
made for paying all fees and expenses in connection with the
redemption, then and in that case the Series 1989 Bonds or such
portion thereof issued hereunder shall no longer be deemed
outstanding or an indebtedness of the City.
Section 21 . To the extent necessary to preserve the
exclusion from gross income of interest on the Series 1989 Bonds
under federal law, the City on behalf of itself and the Board of
Public Works represents, covenants and agrees that:
(a) No person or entity or any combination thereof, other
than the City and the Board of Public Works, will use proceeds of the
Series 1989 Bonds or property financed by said proceeds other than as
a member of the general public. No person or entity or any combina-
tion thereof, other than the City and the Board of Public Works, will
own property financed by the Series 1989 Bond proceeds or will have
actual or beneficial use of such property pursuant to a lease, a
management or incentive payment contract, an arrangement such as a
take-or-pay or other type of output contract or any other type of
arrangement that differentiates that persons's or entity's use of
such property from the use by the public at large of such property;
(b) No Series 1989 Bond proceeds will be loaned to any
entity or person. No Series 1989 Bond proceeds will be transferred
directly, or indirectly transferred or deemed transferred to a person
other than a governmental unit in a fashion that would in substance
constitute a loan of said Series 1989 Bond proceeds;
(c) Neither the City nor the Board of Public Works will
take any action or fail to take any action with respect to the Series
1989 Bonds that would result in the loss of the exclusion from gross
income for federal tax purposes of interest on the Series 1989 Bonds
pursuant to Section 103 (a) of the Internal Revenue Code of 1986 (the
"Code") , as in effect on the date of delivery of the Series 1989
Bonds, nor will the City or the Board of Public Works act in any
manner which would adversely affect such exclusion. The City and the
Board of Public Works further covenant that they will not make any
investment or do any other act or thing during the period that any
Series 1989 Bond is outstanding hereunder which would cause any
Series 1989 Bond to be an "arbitrage bond" within the meaning of
Section 148 of the Code and the regulations applicable thereto. The
City and the Board of Public Works shall comply with the arbitrage
rebate requirements under Section 148 of the Code to the extent
applicable; and
(d) All officials, officers, members, employees and agents
of the City and the Board of Public Works are authorized and directed
to provide certifications of facts and estimates that are material to
the reasonable expectations of the City and the Board of Public Works
as of the date the Series 1989 Bonds are issued, to enter into cove-
nants on behalf of the City and the Board of Public Works evidencing
the commitments made herein and to do all such other acts necessary
or appropriate to carry out this Ordinance, including preparation of
and execution of preliminary and final official statements describing
-27-
the Series 1989 Bonds and matters related thereto. In particular,
all or any officials, officers, members, employees and agents of the
City and the Board of Public Works are authorized to certify and/or
enter into covenants for the City and the Board of Public Works
regarding the facts and circumstances and reasonable expectations of
the City and the Board of Public Works on the date the Series 1989
Bonds are issued and the commitments made by the City and the Board
of Public Works herein regarding the amount and use of the proceeds
of the Series 1989 Bonds.
Section 22. Notwithstanding any other provisions of this
Ordinance, the covenants and authorizations contained in this
Ordinance ("Tax Sections") which are designed to preserve the
exclusion of interest on the Series 1989 Bonds from gross income
under federal law ("Tax Exemption") need not be complied with if the
City receives an opinion of bond counsel that any Tax Section is
unnecessary to preserve the Tax Exemption.
Section 23. The following are the rates and charges to the
several classes of users or property to be served by the works as of
the date hereof:
All Class I Users
(1) The sewage rates and charges shall be based on the
quantity of water used on or in the property or premises subject to
such rates and charges as the same is measured by the water meter
there in use, plus a base charge based on the size of water meter
installed except as herein otherwise provided. For the purpose of
billing and collecting the charges for sewage service, the water
meters shall be read monthly and the users shall be billed each month
(or period equaling a month) . The water usage schedule on which the
amount of said rates and charges shall be determined is as follows:
Treatment rate per 100 cubic feet of usage per month:
User Debt
Charge Service Total
$ .59 $ 0. 15 $ 0. 74
plus base rate per month:
Water Meter
5/8" $ 5. 66 $ 2 .24 $ 7. 90
3/4" 7.52 3 . 13 10. 65
1" 12 .60 5. 60 18.20
1-1/4" - 1-1/2" 27.85 13. 00 40.85
2" 47.24 22 .41 69. 65
3" 107. 30 51.70 159. 00
4" 190.46 92. 04 282 .50
6" 426. 08 206.42 632.50
8" 758.72 368.28 1,127. 00
10" 1, 183 .76 574.24 1,758. 00
12" 1,705.82 827. 18 2,533 . 00
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(2) For users of the sewage works that are unmetered water
users or accurate meter readings are not available, the monthly charge
shall be determined by equivalent single family dwelling units, except
as herein provided. Sewage service bills shall be rendered once each
month (or period equaling a month) . The schedule on which said rates
and charges will be determined is as follows:
Monthly Rate
User Debt
Charge Service Total
Residential: Single
family dwelling unit $ 9.79 $ 3 . 30 $ 13 . 09
(3) For the service rendered to the City of South Bend said
City shall be subject to the same rates and charges established in
harmony therewith.
(4) In order to recover the cost of monitoring industrial
wastes, the City shall charge the user not less than $100. 00 per
sampling event plus the actual cost for collecting and analyzing
the sample (s) as determined by the City or by an independent
laboratory. This charge will be reviewed on the same basis as all
other rates and charges in this ordinance.
(c) All Class II Users (Wholesale Users)
(1) Billing for sewage services shall be in accordance
with the executed intermunicipal contract for wastewater
treatment services.
(d) All Class III Users (Clay Service Area)
(1) The sewage rates and charges shall be based on the
quantity of water used on or in the property or premises
subject to such rates and charges as the same is measured
by the water meter there in use, plus a base charge based
on the size of water meter installed except as herein
otherwise provided. For the purpose of billing and
collecting the charges for sewage service, the water
meters shall be read monthly and the users shall be billed
each month (or period equaling a month) . The water usage
scheduled on which the amount of said rates and charges
shall be determined as follows:
Treatment rate per 100 cubic feet of usage per month:
User Clay Area
Charge Debt Service Total
$ .74 $ 0. 26 $ 1. 00
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plus base rate per month:
User Clay Area
Water Meter Charge Debt Service Total
5/8" $ 7.90 $ 2 .90 $ 10.80
3/4" 10.65 4. 10 14.75
1" 18.20 7.25 25.45
1 1/2" 40.85 16.85 57.70
2" 69.65 29. 00 98. 65
3" 159.00 66.70 255.70
4" 282 .50 118.90 401.40
6" 632.50 266.80 899. 30
8" 1, 127. 00 475. 60 1, 602 . 60
10" 1,758.00 742 .40 2,500.40
12" 2,533 .00 1, 070.10 3, 603 . 10
(2) For users of the sewage works that are unmetered water
users or if accurate meter readings are not available, the
monthly charge shall be determined by equivalent single
family dwelling units, except as herein provided. Sewage
service bills shall be rendered once each month (or period
equaling a month) .
The schedule on which said rates and charges will be determined
is as follows:
Monthly Rate
User Clay area
Charge Debt Service Total
Residential: Single family
dwelling unit $ 13 .12 $ 4.75 $17.85
(3) In order to recover the cost of monitoring industrial wastes,
the City shall charge the user not less than $ 100. 00 per sampling
event plus the actual cost for collecting and analyzing the
sample(s) as determined by the City or by an independent
laboratory. This charge will be reviewed on the same basis as
all other rates and charges in this ordinance.
Heavy Demand Surcharge.
(a) In order that the rates and charges may be justly and
equitably adjusted to the service rendered to users, the City shall
base its charges not only on the volume, but also on strength and
character of the stronger-than-normal domestic sewage and wastes which
it is required to treat and dispose of. The City shall require the
user to determine the strength and content of all sewage and wastes
discharged, either directly or indirectly into the sanitary sewage
system, in such manner, by such method and at such times as the City
may deem practicable in light of the conditions and attending
circumstances of the case, in order to determine the proper change.
The user shall furnish a central sampling point available to the City
at all times.
-30-
(b) Normal sewage domestic waste strength should not exceed
ammonia-nitrogen in excess of 25 milligrams per liter of fluid,
suspended solids in excess of 250 milligrams per liter of fluid,
biochemical oxygen demand in excess of 250 milligrams per liter of
fluid, or phosphorus in excess of 10 milligrams per liter of fluid.
Additional charges for treating stronger-than-normal
domestic waste shall be made on the following basis:
1. Rate Surcharge Based Upon Suspended Solids. There
shall be an additional charge of 7.5 cents per pound of suspended
solids for suspended solids received in excess of 250 milligrams
per liter of fluid.
2 . Rate Surcharge Based Upon BOD. There shall be an
additional charge of 10 cents per pound of biochemical oxygen
demand for BOD received in excess of 250 milligrams per liter of
fluid.
3 . Rate Surcharge Based Upon Ammonia-Nitrogen. There
shall be an additional charge of 52 cents per pound of
ammonia-nitrogen received in excess of 25 milligrams per liter of
fluid.
4. Rate Surcharge Based Upon Phosphorus. There shall be
an additional charge of 88.7 cents per pound of phosphorus received
in excess of 10 milligrams per liter of fluid.
(c) The determination of Suspended Solids, Biochemical
Oxygen Demand, Ammonia-Nitrogen, Phosphorus, Ammonia and COD
contained in the waste shall be in accordance with the latest copy
of "Standard Methods for the Examination of Water and Wastewater",
as written by the American Public Health Association, the American
Water Works Association and the Water Pollution Control Federation,
and in accordance with "Guidelines Establishing Test Procedures for
Analysis of Pollutants", 40 C.F.R. Part 136.
(d) If the City and the user can agree upon the relation-
ship between BOD and COD, then COD may be used for calculating the
BOD surcharge.
Section 24. Without notice to or consent of the owners of
the bonds herein authorized, the City may, from time to time and at
any time , adopt such ordinance supplemental hereto (which
supplemental ordinance shall thereafter form a part hereof) :
(a) To cure any ambiguity or formal defect or omission in
this Ordinance or in any supplemental ordinance or to make any other
change authorized herein;
(b) To grant to or confer upon the owners of the bonds
herein authorized any additional benefits, rights, remedies, powers,
authority or security that may lawfully be granted to or conferred
upon the owners of the bonds herein authorized or to make any change
which, in the judgment of the City, is not to the prejudice of the
owners of the bonds herein authorized;
-31-
(c) To modify, amend or supplement this Ordinance to permit
the qualification of the bonds herein authorized for sale under the
securities laws of the United States of America or of any of the
states of the United States of America or to obtain or maintain bond
insurance with respect to payments of principal of and interest on
bonds herein authorized;
(d) To provide for the refunding or advance refunding of
the bonds herein authorized;
(e) To procure a rating on the bonds herein authorized from
a nationally recognized securities rating agency designated in such
supplemental ordinance if such supplemental ordinance will not
adversely affect the owners of the bonds herein authorized;
(f) Any other purpose which in the judgment of the City
does not adversely impact the interest of the owners of the bonds
herein authorized.
This Ordinance and the rights and obligations of the City and the
owners of the bonds herein authorized may be modified or ammended at
any time by supplemental ordinances adopted by the City with the
consent of the owners of the bonds herein authorized holding sixty
percent (60%) in aggregate principal amount of the outstanding bonds
herein authorized (exclusive of bonds herein authorized, if any,
owned by the City) ; provided, however, that no such modification or
amendment shall without the express consent of the owners of the
bonds herein authorized affected, reduce the principal amount of any
bonds herein authorized, reduce the interest rate payable thereon,
advance the earliest redemption date, extend its maturity or the
times for paying interest thereon, permit a privilege or priority of
any bond or bonds herein authorized over any other bond or bonds
herein authorized, create a lien securing any bonds herein authorized
other than a lien ratably securing all of the bonds herein authorized
outstanding, or change the monetary medium in which principal and
interest is payable, nor shall any such modification or amendment
reduce the percentage of consent required for amendment or
modification.
Any act done pursuant to a modification or amendment so consented to
shall be binding upon all the owners of the bonds herein authorized
and shall not be deemed an infringement of any of the provisions of
this Ordinance or of the Act, and may be done and performed as fully
and as freely as if expressly permitted by the terms of this
Ordinance, and after such consent relating to such specified matters
has been given, no owner shall have any right or interest to object
to such action or in any manner to question the propriety thereof or
to enjoin or restrain the City or any officer thereof from taking any
action pursuant thereto.
If the City shall desire to obtain any such consent, it shall cause
the Registrar and Paying Agent to mail a notice, postage prepaid, to
the respective owners of the bonds herein authorized at their
addresses appearing on the Series 1989 Bond Register. Such notice
shall briefly set forth the nature of the proposed supplemental
ordinance and shall state that a copy thereof is on file at the
-32-
office of the Registrar and Paying Agent for inspection by all owners
of the bonds herein authorized. The Registrar and Paying Agent shall
not, however, be subject to any liability to any owners of the bonds
herein authorized by reason of its failure to mail the notice
described in this Section 24, and any such failure shall not affect
the validity of such supplemental ordinance when consented to and
approved as provided in this Section 24.
Whenever at any time within one (1) year after the date of the
mailing of such notice, the City shall receive an instrument or
instruments purporting to be executed by the owners of the bonds
herein authorized of not less than sixty percent (60%) in aggregate
principal amount of the bonds herein authorized then outstanding
(exclusive of bonds herein authorized, if any, owned by the City) ,
which instrument or instruments shall refer to the proposed
supplemental ordinance described in such notice and shall
specifically consent to and approve the adoption thereof in
substantially the form of the copy thereof referred to in such notice
as on file with the Registrar and Paying Agent thereupon, but not
otherwise, the City may adopt such supplemental ordinance in
substantially such form, without liability or responsibility to any
owners of the bonds herein authorized, whether or not such owner
shall have consented thereto.
If AMBAC Indemnity Corporation or any other municipal bond insurance
company agrees to insure the bonds herein authorized, whenever in
this Ordinance the consent of and notice to any owners of the bonds
herein authorized is required, the consent of and notice to AMBAC
Indemnity Corporation, One State Street Plaza, New York, New York,
10004, or such other insurer shall also be required.
Upon the adoption of any supplemental ordinance pursuant to the
provisions of this Section 24, this Ordinance shall be, and be deemed
to be , modified and amended in accordance therewith, and the
respective rights, duties and obligations under this Ordinance shall
thereafter be determined, exercised and enforced hereunder, subject
in all, respects to such modifications and amendments.
Section 25. If any section, paragraph or provision of this
Ordinance shall be held to be invalid or unenforceable for any reason
the invalidity or unenforceability of such section, paragraph or
provision shall not affect any of the remaining provisions of this
Ordinance.
Section 26. If the date of making any payment or the last
date for performance of any act or the exercising of any right, as
provided in this Ordinance, shall be a legal holiday or a day on
which banking institutions in the City or the city in which the
Registrar and Paying Agent is located are typically closed, such
payment may be made or act performed or right exercised on the next
succeeding day not a legal holiday or a day on which such banking
institutions are typically closed, with the same force and effect as
if done on the nominal date provided in this Ordinance, and no
interest shall accrue for the period after such nominal date.
-33-
Section 27. All ordinances in conflict herewith are hereby
repealed to the extent of such conflict, but none of the provisions
of this Ordinance shall be so construed as adversely affecting the
rights of holders of said outstanding 1971 Bonds.
Section 28 . This Ordinance shall be in full force and
effect from and upon compliance with the procedures required by law.
Member of the Common Council
Passed and adopted by the Common Council of the City of
South Bend on the day of 1988.
Presiding Officer
Attest:
Irene K. Gammon, City Clerk
Presented by me to the Mayor of the City of South Bend on
the day of , 1988, at the hour of
o'clock m.
Irene K. Gammon, City Clerk
This Ordinance approved and signed by me on the day
of , 1988, at the hour of o'clock m.
Joseph E. Kernan, Mayor
1st READING (I"
PUBLIC HEARING I a H --
2nd READING
NOT APPROVED -34-
REFERRED
PASSED i1_ VC
SOUTH 4,,
,o� � Iii
Z.tom\�\'if o City of South Bend
/lll v4'� -I-)/ a~ Joseph E. Kernan, Mayor
5
114 -4.---`mo w..-`d} 1
111\\, 1865
Board of Public Works
November 22 , 1988 ,
Common Council of the City of South Bend
County-City Building
South Bend, Indiana 46601
Dear Members of the Common Council :
Enclosed please find a copy of the Waste Water Treatment
Plant Revenue 'Bond Ordinance which the Board of Public Works
today, by resolution, has approved and recommended to you for
adoption.
The Ordinance orders the issuance of bonds in an aggregate
principal amount of Nine Million Five Hundred Thousand NO/100
Dollars ($9 ,500 , 000) to pay for the cost of acquiring and
constructing those portions of the improvements to the Waste
Water Treatment Plant which will not be paid with the proceeds
of the federal and state . grants the City has received from the
E.P.A. and from the Indiana Department of Environmental
Management .
In addition to determining the amount and maturities of
the bonds , the Ordinance makes provision for the handling of
the net revenues of the sewage works and makes other
representations important to the interests of the bondholders .
Very truly yours ,
BOARD OF PUBLIC WORKS
1,10 q ViA/T./A.8,1i ‘
John E. Leszczynski
President
JEL/mp
Enclosure
1308 County-City Building • South Bend, Indiana 46601 • 219/284-9412
John E. Leszczynski Patricia E. DeClercq Katherine Humphreys