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HomeMy WebLinkAboutAuthorizing $4,000,000 Soild Waste Disposal Revenue BondsORDINANCE No 7141 -82 Passed by the Common Council of the City of South Bend, Indiana A—' Attest: 77 VV� December 6, ig 82 IRENE K. GAMMON Presented by me to the Mayor of the City of South Bend, Indiana December 7 �9 82 Clerk of Common Council IRENE K. GAMMON Approved and signed by me �9 2 City Clerk BILL NO. 134 -82 ORDINANCE NO. Z/ � AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF $4,000,000 SOLID WASTE DISPOSAL REVENUE BONDS OF THE CITY OF SOUTH BEND, INDIANA, FOR THE PURPOSE OF MAKING A LOAN TO WASTE MANAGEMENT, INC. IN ORDER TO FINANCE THE ACQUISITION AND CONSTRUCTION OF CERTAIN POLLUTION CONTROL FACILITIES LOCATED IN ST. JOSEPH COUNTY, INDIANA; AUTHORIZING EXECUTION OF A LOAN AGREEMENT; AUTHORIZING AN INDENTURE OF TRUST APPROPRIATE FOR THE PROTECTION AND DISPOSITION OF THE REVENUES FROM SUCH LOAN AGREEMENT; A14D AUTHORIZING THE TERMS AND SALE OF SAID BONDS. WHEREAS, the City of South Bend, Indiana (hereinafter called the "City ") is a municipal corporation and political subdivision of the State of Indiana and by virtue of IC 36 -7 -12 (formerly 18- 6 -4.5) as amended (hereinafter called the "Act "), is authorized and empowered to adopt this ordinance (the "Bond Ordinance ") and to carry out its provisions; and WHEREAS, Waste Management, Inc. (the "Company ") is a corpora- tion duly organized and existing under and by virtue of the laws of Delaware, with its principal office in Oak Brook, Illinois, and duly qualified to conduct business in the State of Indiana; and WHEREAS, the Company has agreed to acquire and construct pollution control facilities near the City if the City will finance a portion of the cost of such acquisition and construction; and WHEREAS, the South Bend Economic Development Commission has performed all action required of it by the Act preliminary to the adoption of this Bond Ordinance and has approved and forwarded to this Common Council the forms of (1) Indenture of Trust (the "Indenture ") dated as of December 1, 1982, between the City and St. Joseph Bank & Trust Company, South Bend, Indiana (the Trustee "), containing a form of solid waste disposal revenue bond; (2) Loan Agreement (the "Loan Agreement ") dated as of December 1, 1982 between the City and the Company; and (3) this Bond Ordinance; NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: Section 1. Findings; Public Benefits. The Common Council of the City hereby finds and determines that the building, equip- ment and facilities in connection therewith (the "Project ") to be acquired and constructed with the proceeds of the Solid Waste Disposal Revenue Bonds herein authorized are "pollution control facilities" as that phrase is used in the Act; that acquisition and construction of the Project will abate, reduce and prevent pollution and will benefit the public health in and near the City; and that the public benefits to be accomplished by this Bond Ordinance are greater than the cost of public services (as that phrase is defined in the Act) which will be required by the Project. Section 2. Authorization of Solid Waste Disposal Revenue Bonds. In order to pay a portion of the cost of acquiring and constructing the Project, there are hereby authorized to be issued, sold and delivered $4,000,000 aggregate principal amount of Solid Waste Disposal Revenue Bonds, Series 1982 (Waste Management, Inc. Project) of the City (the "Series 1982 Bonds "). Any additional costs of the Project will be paid for by the Company unless paid for with the proceeds of additional parity bonds (the "Additional Bonds ") as identified in the Indenture. Section 3. Terms for the Series 1982 Bonds. The Series 1982 Bonds shall be issuable as coupon bonds registrable as to principal only, in the denominations of $5,000, and as fully registered bonds without coupons in denominations of $5,000 and any authorized multiple thereof, shall bear interest until paid at a rate or rates not exceeding 11% per annum, payable on June 1 and December 1 of each year, commencing on June 1, 1983, and shall mature in such principal amount or amounts at such time or times on December 1 of the years (not later than December 1, 2012), the specific interest rate or rates, maturity date or dates and principal amounts to be determined by the Company and the Underwriter in the Bond Purchase Agreement at the time the Series 1982 Bonds are sold. Each Series 1982 coupon Bond shall be dated as of December 1, 1982. Each Series 1982 fully registered Bond authenticated prior to .June 1, 1983 shall be dated as of December 1, 1982; otherwise, each Series 1982 fully registered Bond shall be dated as of the interest payment date to which interest has been paid next preced- ing the date on which it is authenticated unless it is authenti- cated on an interest payment date, in which case it shall be dated as of such date. Principal and interest and premium, if any, shall be payable in lawful money of the United States of America at the principal office of the Trustee in South Bend, Indiana. Each Series 1982 Bond shall be executed on behalf of the City by the manual or facsimile signature of the Mayor and City Clerk of the City,sealed with the corporate seal of the City, and delivered to the purchasers of the Bonds, all on or before June 1, 1983. The Series 1982 Bonds shall be in such form, shall have such registration privileges and terms of redemption, and shall be subject to such other terms and conditions all as set forth in the Indenture. The Series 1982 Bonds and the interest thereon do not and shall never constitute an indebtedness of or a charge against the general credit or taxing power of the City, but are limited obligationsof the City payable solely from revenues and other amounts derived from the Loan Agreement and shall be secured as provided in the Indenture. Forms of the Loan Agreement and Indenture are before this meeting and are by this reference incorporated in this Bond Ordinance, and the City is hereby directed to insert them into the minutes of the Common Council and to keep them on file. In compliance with Indiana Code 36- 1 -5 -4, two copies of the Bonds, Loan Agreement, and Indenture are on file in the City Clerk's Office for public inspection. Section 4. Indenture. In order to secure the payment of the principal of and interest on the Bonds, the Mayor and the City Clerk shall execute, acknowledge and deliver, in the name and on behalf of the City, an Indenture of Trust in substantially the form submitted to this Common Council, which is hereby approved in all respects. Section 5. Loan Agreement. In order to provide for the loan of the proceeds of the Series 1982 Bonds to acquire and construct the Project and the payment by the Company of an amount sufficient to pay the principal of and premium, if any, and interest on the Series 1982 Bonds, the Mayor and the City Clerk shall execute, acknowledge and deliver, in the name and on behalf of the City, a Loan Agreement in substantially the form submitted to this Common Council, which is hereby approved in all respects. Section 6. General. The Mayor and the City Clerk be and they are each hereby authorized and directed, in the name and on behalf of the City, to execute any and all instruments, perform any and all acts, approve any and all matters, and do any and all things deemed by them, or any of them, to be necessary or desirable in order to carry out the purposes of this Bond Ordinance (includ- ing the preambles hereto), the acquisition and construction of the Project by the Company, the issurance and sale of the Series 1982 Bonds, and the securing of the Series 1982 Bonds under the Indenture. The Mayor and City Clerk are hereby authorized to approve changes and amendments to the Bond, Loan Agreement, Indenture, Bond Purchase Agreement and other related documents if such changes and amendments do not affect terms contained in this Bond Ordinance pursuant to Sections 25 and 27 of the Act. Section 7. Effective Date. Th Bond Ordinance shall be in full force and effect immediately on its adoption byt he Common Council and approval by the Mayo r. r Counci M. EDWARD DORAN CHARLES M. BOYNTON GERALD A. KAMM JOHN E. DORAN DONALD E. ESMONT FREDERICK C. BOYNTON DANIEL A. MANION Law offices of DORAN, MANION, BOYNTON, KAMM & ESMONT Suite 725 5t.J05eph BankBuildin9 SOUT14 BEND, INDIANA 46601 Common Council City of South Bend South Bend, IN November 16, 1982 Re: City of South Bend, Indiana, Solid Waste Disposal Revenue Bond, Series 1982 (Waste Management, Inc. Project) Ladies and Gentlemen: CLARENCE MANION (1896 -1979) TELEPHONE 233 -6117 AREA CODE 219 Enclosed herewith is the original and one copy of the Loan Agreement and the Indenture of Trust involved in the Solid Waste Disposal Revenue Bond (Waste Management, Inc. Project), Series 1982. This bond is in the sum of Five Million Dollars of Revenue Bonds. The said bonds will be issued in registered form as to principal only in denominations of Five Thousand Dollars and will carry a rate of interest not exceeding 11% payable on May 1 and November 1st of each year, and as of May 1, 1983. The bond is for the purposes of establishing the Solid Waste Disposal System which is located approximately 2,800 feet West of State Road, Route 331 on Shively Road at St. Joseph County, Madison Township, Indiana. The bond is a thirty year bond and the proceeds thereof will be used for the development of the cemetery landfill and attendant facilities and equipment. The purchase of facilities, vehicles, containers and machinery for the collection of storage and transportation for the disposal of solid waste will be used from the proceeds. No request for tax abatement has been made and the operation of the landfill will create one new job and preserve six other positions. Common Council City of South Bend November 16, 1982 Page 2 The Economic Development Commission has made a report to the City of South Bend for the Economic Development Commission's estimates and the property is appeared zoned for the use and operations of the sanitary landfill_. The Economic Development Commission held public hearings on said application and has found that there is no adverse competitive effect by the operation of this landfill in St. Joseph County. The St. Joseph Bank and Trust Company, South Bend, Indiana, has agreed to act as trustee in this matter and will act as a trustee for the City of South Bend, as well as the bond holders. Merrill Lynch, White, Weld Capital Markets Group has agreed to underwrite the bond issue and a letter of commitment has been received by the Economic Development Commission. A report of the Area Plan Commission as to the zoning has been received by the Economic Development Commission, as well as a letter of the Penn - Harris- Madison School Corporation supporting the issuance of the bond issue. The Economic Development Commission by resolution passed on November 5, 1982, has approved the form of the Loan Agreement and the Bond Indenture, and forwards the said instruments, together with a copy of an ordinance for the passage and approval of this bond issue, is forwarded to the Common Council for appropriate action. The public hearing on said matter was set for October 15, 1982, and was continued twice to the final hearing on November 5, 1982, at which time the instruments and the financing was approved as provided by statute by the Economic Development Commission of the City of South Bend, Indiana. Very trtyIy your Charles D 'Boynton e Special Counsel to the South Bend Economic Development Commission CMB:jsb Encs. South Bend Economic Development Commission South Bend, Indiana November 5, 1982 Common Council City of South Bend South Bend, Indiana Re: City of South Bend, Indiana Solid Waste Disposal Revenue Bonds Series 1982 .(Waste Management, Inc. Project) Ladies and Gentlemen: Pursuant to the provisions of IC 36- 7 -12 -24 (formerly 18 -6- 4.5-17)., there are enclosed copies of the following: 1. A resolution and a report on the proposed financing of pollution control facilities (.the "facilities "), which report has been submitted to the plan commission and the school board having jurisdiction where the facilities are to be located, together with excerpts from the minutes of the July 31, 1981 meeting of the South Bend Economic Development Commission evidencing adoption of such resolution. You adopted inducement Resolution No. 901 -81 on August 10, 1981, concerning the facilities. 2. A resolution approving the proposed financing and approving the form and terms of Solid Waste Disposal Revenue Bonds, Loan Agree- ment, Indenture of Trust, and Form of Bond Ordinance, together with excerpts from the minutes of the October 15, October 19, 1982, and November 5, 1982 meetings of the South Bend Economic Development Commission evidencing a public hearing on the proposed financing of the facilities and adoption of such resolution. 3. Each of the documents referred to in the preceding paragraph. The South Bend Economic Development Commission requests that you consider these enclosures and the proposed financing contemplated thereby and take such additional action as is necessary to complete such financing. SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION J IN ER11 OFFICE Walter A. Mucha, Secretary N a''9' 91982 Irene Gammon CITY CLERK, SOUTH BEND, IND. fg.umwtuyet Irvar# go #4t (fammou 010undt of Or MUD of 60194 Neud: Your Committee OF THE: WHOLE to whom was referred BILL NO- 134-82 A BILL AUTHORIZING THE ISSUANCE AND SALE OF $5,000,000 SOLID WASTE DISPOSAL REVENUE BONDS OF THE CITY OF SOUTH BEND, INDIANA, FOR THE PURPOSE OF MAKING A LOAN TO WASTE MANAGEMENT, INC., IN ORDER TO FINANCE THE ACQUISITION AND CONSTRUCTION OF CERTAIN POLLUTION CONTROL FACILITIES LOCATED IN ST. JOSEPH COUNTY, INDIANA; AUTHORIZING EXECUTION OF A LOAN AGREEMENT; AUTHORIZING AN INDENTURE OF TRUST APPROPRIATE FOR THE PROTECTION AND DISPOSITION OF THE REVENUE FROM SUCH LOAN AGREEMENT; AND AUTHORIZING THE TERMS AND SALE OF SAID BONDS. Respectfully report that they have examined the matter and that in their opinion THIS BILL SHOULD BE RECOMMENDED TO THE COUNCIL FAVORABLE, AS AMENDED: BY SUBSTITUTION OF A NEW BILL JOHN VOORDE Chairman FREE PRESS PUBLISHING CO.