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HomeMy WebLinkAboutAuthorizing the Issuance and Sale of Bonds Said City in Order to Provide Funds for Various PurposesORDINANCE N0.6881 -81 Passed by the Common Council of the City of South Bend, Indiana January 12, tq 81 Presented by me to the Mayor of the City of South Bend, x— Clerk IRENE K. GAMMON of Common Council iR :i1 IRENE K. GAMMON Clerk ORDINANCE NO. (.,�j- S AN ORDINANCE OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE ISSUANCE AND SALE OF BONDS OF SAID CITY IN ORDER TO PROVIDE FUNDS FOR VARIOUS PURPOSES WHEREAS, the Board of Public Works of the City of South Bend, Indiana, by resolution passed the fifth day of January, 1981, has found that it would be in the best interest of said City and its citizens to provide funds for the cost of the purchase of Police Department motor equipment, communications equipment and weapons; the purchase of Fire Department motor equipment, breathing apparatus, the retrofitting of motor equipment, the remodeling of a fire station and purchase of various equipment for the equipping of the fire station; the construction of a salt storage facility; the construction of an equipment storage facility and repair and reconstruction of the existing storage facility; the reconstruction of the municipal services facility parking lot area, including the relocation and re- modeling of a diesel fuel storage and pumping facility; the re- modeling of portions of the municipal services facility; the con- struction, reconstruction and improvement of streets and necessary materials for the construction and reconstruction of said streets; the purchase of Street Department motor equipment, and other paving and street maintenance equipment and tree maintenance equipment; guardrail installation along certain public right -of -ways; and for miscellaneous equipment and the engineering, architectural, and legal fees and expenses incidental thereto and the expenses and legal fees incidental to the issuance of said bonds and has determined that the estimated cost thereof and the incidental expenses necessary to be incurred in connection therewith, including the issuance of bonds, will be in an amount not exceeding Five Million Nine Hundred Seventeen Thousand Five Hundred Forty Dollars ($5,917,540.00); and WHEREAS, a petition has been filed under the provisions of I.C. 6- 1.1 -20 -3, by more than fifty (50) owners of taxable real estate in the City of South Bend, Indiana, requesting the Common Council to issue bonds in an amount not exceeding Five Million Nine Hundred Seventeen Thousand Five Hundred Forty Dollars ($5,917,540.00) for the purpose of procuring funds to be applied on the cost of the projects herein described; and WHEREAS, the Council now finds that said projects are necessary and will be of general benefit to the City and its citizens; NOW THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: SECTION 1. That the City of South Bend (hereinafter referred to as the "CITY "), by and through its Board of Public Works, proceed with the following activities, as recommended by said Board: The purchase of Police Department motor equipment, communications equip- ment and weapons; the purchase of Fire Department motor equipment, breathing apparatus, the retrofitting of motor equipment, the re- modeling of a fire station and purchase of various equipment for the equipping of the fire station; the construction of a salt storage facility; the construction of an equipment storage facility and repair and reconstruction of the existing storage facility; the reconstruction of the municipal services facility parking lot area, including the relocation and remodeling of a diesel fuel storage and pumping facility; the remodeling of portions of the municipal services facility; the construction, reconstruction and improvement of streets and necessary materials for the construction and reconstruction of said streets; the purchase of Street Department motor equipment, and other paving and street maintenance equipment and tree maintenance equipment; guardrail installation along certain public right -of -ways; together with the incidental expenses in connection therewith. SECTION 2. For the purpose of providing funds with which to pay the cost of said projects and the incidental expenses necessary to be incurred in connection therewith, the City shall make a loan in the amount of Five Million Nine Hundred Fifteen Thousand Dollars ($5,915,000.00). In order to procure said loan, the City Controller is hereby authorized and directed to have prepared and to issue and sell the negotiable general obligation bonds of the City, to be designated as "Municipal Bonds of 1981 ", in the aggregate principal amount of Five Million Nine Hundred Fifteen Thousand Dollars ($5,915,000.00), which bonds shall be issued in the denomination of Five Thousand Dollars ($5,000.00), shall be numbered consecutively from one (1) upwards, shall be dated as of the first day of the month in which said bonds are sold, and shall bear interest at a rate not exceeding ten per cent (10 %) per annum (the exact rate to be determined by bidding), which interest shall be payable on July 15, 1982, and semi- annually thereafter on January 15 and July 15 of each year and shall be evidenced by coupons attached to said bonds. Both bonds and interest coupons shall be payable at the First Bank and Trust Company of South Bend, in the City of South Bend, Indiana. The bonds shall mature serially semi - annually in the amounts as follows: DATE AMOUNT July 15, 1982 $265,000.00 January 15, 1983 $600,000.00 July 15, 1983 $650,000.00 January 15, 1984 $650,000.00 July 15, 1984 $700,000.00 January 15, 1985 $700,000.00 July 15, 1985 $750,000.00 January 15, 1986 $750,000.00 July 15, 1986 $850,000.00 Said bonds shall be executed in the name of the City of South Bend, Indiana by the Mayor, countersigned by the City Controller, and attested by the City Clerk who shall affix the seal of the City to each of said bonds. The interest coupons attached to said bonds shall be executed with the facsimile signature of the City Controller and said official, by the countersigning of said bonds, shall adopt as and for his own proper signature his facsimile signature appearing on said coupons. Said bonds shall, in the hands of bona fide holders, have all of the qualities of negotiable instruments under the laws of the State of Indiana. SECTION 3. The form and tenor of said bonds and the interest coupons to be attached thereto shall be substantially as follows (all blanks to be properly completed prior to the printing of the bonds): UNITED STATES OF AMERICA State of Indiana County of St. Joseph No. $5,000.00 CITY OF SOUTH BEND MUNICIPAL BONDS OF 1981 The City of South Bend, in St. Joseph County, Indiana, for value received, hereby acknowledges itself indebted and promises to pay to the bearer hereof the principal amount of FIVE THOUSAND DOLLARS on 19_, and to pay interest thereon from -2- the date hereof until the principal is paid, at the rate of per cent ( %) per annum, payable on July 5199822 and semi_- -an u1y_ thereafter on January 15 and July 15 in each year, upon presentation and sur- render of the annexed coupons as they severally become due. Both principal and interest of this bond are payable in lawful money of the United States of America, at the option of the holder, at the First Bank and Trust Company of South Bend, in the City of South Bend, Indiana. This bond is one of an authorized issue of one thousand one hundred eighty -three (1,183) bonds of the City of South Bend, of like date, denomination, tenor and effect, except as to dates of maturity, aggregating Five Million Nine Hundred Fifteen Thousand Dollars ($5,915,000.00), numbered consecutively from 1 to 1,183 inclusive, issued pursuant to an ordinance adopted by the Common Council of said City on , 1981, entitled "An Ordinance of the City of South Bend, Indiana, authorizing the issuance and sale of bonds of said City in order to provide funds for various purposes." It is hereby certified and recited that all acts, conditions and things required to be done precedent to and in the execution, issuance and delivery of this bond have been done and performed in regular and due form as provided by law; that this bond and said total issue of bonds is within every limit of indebtedness prescribed by the constitution and laws of the State of Indiana, and that the full faith and credit of the City of South Bend, together with all of its taxable property, both real and personal, are hereby irrevocably pledged to the punctual payment of the principal and interest of this bond according to its terms. IN WITNESS WHEREOF, the City of South Bend, in St. Joseph County, Indiana, by ordinance of its Common Council, has caused this bond to be executed in its corporate name by the facsimile signature of its Mayor, countersigned by the facsimile signature of its City Controller, its corporate seal to be hereunto affixed and attested by the manual signa- ture of its City Clerk, and the interest coupons hereto attached to be executed by placing thereon the facsimile signatures of said Mayor and City Controller as of the day of , 1981. Attest: City Clerk CITY OF SOUTH BEND By (facsimile) Mayor Countersigned: By (facsimile) City Control er -3- INTEREST COUPON Coupon No. W On , 19 , the City of South Bend, Indiana will pay to bearer, at the option of the holder, at the First Bank and Trust Company of South Bend, in South Bend, Indiana, the amount shown hereon, in lawful money of the United States of America, being the interest then due on its Municipal Bond of 1981, dated 1981, No. CITY OF SOUTH BEND By (facsimile) Mayor (facsimile) City 'Controller SECTION 4. As soon as can be done after the passage of this ordinance, the City Clerk shall give notice of the filing of the petition for and determination to issue bonds. Said notice shall be published once each week for two (2) weeks in the South Bend Tribune and the Tri- County News, newspapers of general circulation published in the City of South Bend, and said notice shall also be posted in three (3) public places in the City, as provided by I.C. 6- 1.1 -20 -4 and I.C. 6- 1.1 -20 -5. Said bonds shall not be advertised for sale prior to the expiration of the period during which taxpayers may file remonstrances or objecting petitions to the issuance of said bonds. In the event a remonstrance shall be filed by the owners of taxable real estate under the provisions of I.C. 6- 1.1 -20 -4, then no further steps toward the issuance of said bonds shall be taken unless and until the Common Council shall have determined that such remonstrance is insufficient. In the event an objecting petition or petitions are filed by taxpayers under the provisions of I.C. 6- 1.1 -20 -5, then no further steps towards the issuance of said bonds shall be taken unless and until the State Board of Tax Commissioners shall issue its order approving the issuance of said bonds. In the event it shall be determined by the State Board of Tax Commissioners, or otherwise, that the whole amount of the bonds herein authorized shall not be issued, then the City Controller shall be authorized to advertise and sell a lesser amount of bonds, and the bonds not issued and sold shall be the bonds of the longest maturity or maturities. SECTION 5. Prior to the sale of said bonds, the City Controller shall cause to be published a notice of such sale once each week for two (2) weeks in the South Bend Tribune and the Tri- County News, and one (1) time in the Indianapolis Commercial. In the discretion of the City Controller, a summary notice may be published in The Bond Buyer, a financial journal published in the City and State of New York. The date fixed for the sale shall not be earlier than seven (7) days after the last of said publications. Said bond sale notice shall state the time and place of sale, the purpose for which the bonds are being issued, the total amount thereof, the maximum rate of interest thereon, the time and place of payment, the terms and conditions on which bids will be received and the sale made, and such other information as the City Controller shall deem necessary. All bids for said bonds shall be sealed and shall be presented to the City Controller at his office, and said Controller shall continue to receive all bids offered until the hour named on the date fixed in the bond sale notice, at which time and place he -4- shall open and consider said bids. Bidders for said bonds shall be required to name the rate of interest which the bonds are to bear, not exceeding the maximum rate hereinbefore fixed, and such interest rate shall be in multiples of one - fourth (1/4) or one - tenth (1/10) of one per cent (1 %) and not more than three (3) interest rates shall be named by each bidder. Bids specifying two (2) or more interest rates shall also specify the amount and maturity of the bonds bearing each rate, but all bonds maturing on the same date shall bear the same single coupon rate. A rate may be repeated without constituting a different interest rate. The rate on any maturity shall be equal to or greater than the rate on the immediately preceding maturity. The interest due on any bond on any interest payment date shall be represented by a single interest coupon. The Controller shall award the bonds to the highest responsible and qualified bidder. The highest bidder shall be the one who offers the lowest net interest cost to the City, computing the total interest on all of the bonds to their maturities and deducting therefrom the premium bid, if any. No bid for less than the par value of said bonds, including accrued interest at the rate named to the date of delivery, shall be considered. The Controller shall have full right to reject any and all bids. In the event no acceptable bid is received at the time fixed in said notice for the sale of said bonds, the Controller shall be authorized to continue to receive bids from day to day thereafter 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 the highest bid received at the time fixed for such sale in the bond sale notice. Prior to the delivery of said bonds, the City Controller shall be authorized to obtain a legal opinion as to the validity of said bonds from Ice Miller Donadio & Ryan, bond counsel of Indianapolis, Indiana, and to furnish such opinion to the purchaser of said bonds. The cost of said opinion shall be considered a part of the cost of said projects, and shall be paid out of the proceeds of said bonds. SECTION 6. The City Controller is hereby authorized and directed to have said bonds and coupons prepared, and the Mayor, City Controller and City Clerk are hereby authorized and directed to execute said bonds and the interest coupons to be attached thereto in the form and manner herein provided. After said bonds have been properly executed, the City Controller shall deliver the same to the City Treasurer and shall take his receipt therefor, and upon the con- summation of the sale of said bonds the City Controller shall then certify to the City Treasurer the amount which the purchaser is to pay for the same, thereupon, the City Treasurer shall be authorized to receive from the purchaser the amount so certified by the Controller and to deliver the bonds to such purchaser. SECTION 7. This ordinance shall be in full force and effect immediately upon its passage and signing by the Mayor. 1 6 Member of the Common Counci I signed on].v fo proTZde an +-, j'L'bl:iC :11:,C uss, on opportunJ FILED IIJ CLE:.,'IYS OFFICE -5- Irene Gammon CITY CLERK, SOUTH BEND, IND. RESOLUTION NO. 1 -81 RESOLUTION OF THE BOARD OF PUBLIC WORKS OF THE CITY OF SOUTH BEND, INDIANA. WHEREAS, the Board of Public Works of the City of South Bend has determined that it would be in the best interest of said City and its citizens to provide for the purchase of Police Department motor equipment, communications equipment and weapons; the purchase of Fire Department motor equipment, breathing apparatus, the retrofitting of motor equipment, the remodeling of a fire station and purchase of various equip- ment for the equipping of the fire station; the construction of a salt storage facility; the construction of an equipment storage facility and repair and reconstruction of the existing storage facility; the reconstruction of the municipal services facility parking lot area including the relocation and remodel- ing of a diesel fuel storage and pumping facility; remodeling of portions of the municipal services facility; the construction, reconstruction and improvement of streets and necessary materials for the construction and reconstruction of said streets; the purchase of Street Department motor equipment, and other paving and street maintenance equipment and tree maintenance equipment; guardrail installation along certain public right -of -ways; and WHEREAS, said Board has determined that the funds necessary to be provided to pay the cost of said projects, including the incidental expenses necessary to be incurred in connection there- with, will be in the amount of Five Million Nine Hundred Seven- teen Thousand Five Hundred Forty Dollars ($5,917,540.00); now therefore, BE IT RESOLVED, by the Board of Public Works of the City of South Bend, that this Board requests the City Controller and Common Council to take proper steps immediately to provide the funds necessary for said purpose, in the amount of Five Million Nine Hundred Seventeen Thousand Five Hundred Forty Dollars ($5,917,540.00), and to that end that a copy of this Resolution be filed with the City Controller and presented to the Common Council as soon as may be done. ADOPTED THIS Attest: Bar ara Byers, C e . t k day of <` «_,ti.. . 1981. �N z Bonn a. LeszczynsKi Richard L. Hili d C. J sep E. Kern Joseph E. Kernen Director, Administration and Finance CITY of SOUTH BEND ROGER O. PARENT, Mayor COUNTY -CITY BUILDING SOUTH BEND, INDIANA 46601 January 8, 1981 South Bend Common Council 4th Floor County -City Building South Bend, Indiana 46601 Dear Members of the Council: 219/284 -9742 The Board of Public Works of the City of South Bend has requested an appropriation in the amount of Five Million Nine Hundred Sev- enteen Thousand Five Hundred Forty Dollars ($5,917,540.00) for application on the cost of the purchase of Police Department motor equipment, communications equipment, breathing apparatus, the retro- fitting of motor equipment, the remodeling of a fire station and purchase of various equipment for the equipping of a fire station; the construction of a salt storage facility; the construction of an equipment storage facility and repair and construction of the existing storage facility; the reconstruction of the municipal services facility parking lot area including the relocation and remodeling of a diesel fuel storage and pumping facility; remodel- ing portions of the municipal services facility; the construction, reconstruction and improvement of streets and necessary materials for the construction and reconstruction of said streets; the pur- chase of Street Department motor equipment, and other paving and street maintenance equipment and tree maintenance equipment; guard- rail installation along certain public right -of -ways, together with the incidental expenses in connection therewith. Submitted herewith is the Resolution of the Board of Public Works. In order to provide funds to meet said appropriation, it will be necessary to authorize, issue and sell bonds of the City in the -- amount of Five Million Nine Hundred Fifteen Thousand Dollars ($5,915,000.00), and I am submitting herewith a form of ordinance drawn for that purpose. Respectfully submitted, Joseph E. Kernan City Controller des TOMM Irk arvad Ma tae faammu (10umil of tot tatty of Ooufl! Brim Your Committee OF THE WHOLE to whom was referred A BILL OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE ISSUANCE AND SALE OF BONDS OF SAID CITY IN ORDER TO PROVIDE FUNDS FOR VARIOUS PURPOSES. Respectfully report that they have examined the matter and that in their opinion TH I S BILL SHOULD BE RE TO THE COUNCIL FAVORABLE. JOHN VOORDE Chairman I... ..... a •......... CO.