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HomeMy WebLinkAbout9767-07 Amend Ordinance # 9672-06ORDINANCE No. Passed by the Common Council of the City of South Bend, Indiana June 25, Attest: Ciry Clerk Attest: President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana June 27, 07 20 . JOHN Ciry Clerk Approved and signed by me June 2 8 , 20 0 7 ~~ ayor 20 07 ORDINANCE NO. ~ ~ ~°~ -~~ AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING ORDINANCE N0.9672-06 ENTITLED "AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE ACQUISITION AND INSTALLATION OF CERTAIN IMPROVEMENTS TO THE CITY'S SEWAGE WORKS, THE ISSUANCE AND SALE OF ADDITIONAL REVENUE BONDS TO PROVIDE FUNDS FOR THE PAYMENT OF THE COSTS THEREOF, AND THE COLLECTION, SEGREGATION AND DISTRICT OF THE REVENUES OF SUCH SEWAGE WORKS AND OTHER RELATED MATTERS" The Common Council (the "Common Council") of the City of South Bend, Indiana (the "City"), has previously adopted Ordinance No. 9672-06 on April 10, 2006 (the "Bond Ordinance"), authorizing the issuance of multiple series of sewage works revenue bonds by the City in an aggregate principal amount not to exceed Fifty-six Million Three Hundred Eighty Thousand and 00/100 Dollars ($56,380,000.00) (the "Bonds"). The City issued its Sewage Works Revenue Bonds of 2006 on June 6, 2006, pursuant to the Bond Ordinance and desires to issue another series of such. bonds for additional improvements to the City's Sewage Works .pursuant to the Bond Ordinance in the aggregate principal amount of Sixteen Million Six Hundred Thousand and 00/100 Dollars ($16,600,000.00) (the "2007 Bonds") . In 1998, the City issued its Sewage Works Revenue Bonds of 1998 pursuant to Ordinance No. 8919-98 in the aggregate principal amount of Twenty-four Million Ninety-five Thousand and 00/100 Dollars ($24,095,000.00) (the "1998 Bonds"). The City sold the 1998 Bonds to the Indiana Bond Bank pursuant to the State of Indiana's (the "State") State Revolving Fund Loan Program (the "SRF Program"). As a requirement of the SRF Program, the State requires that the City obtain the approval of the State prior to issuing any additional bonds payable from the net revenues of the City's Sewage Works. The City obtained such approval for the 2006 Bonds. When the City asked for approval from the State for the issuance of the 2007 Bonds, the State indicated that certain amendments to the Bond Ordinance would be required. The Common Council desires to amend the Bond Ordinance to include certain additional provisions relating to obtaining the consent of the Indiana Finance Authority as part of its SRF Program prior to the issuance of additional sewage works revenue bonds authorized under the Bond Ordinance and prior to taking certain other actions. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: Section 1. The section of the Bond Ordinance labeled Section XVI. Additional Bonds. shall be amended to include a new subsection (e), which will read as follows: BDDBOI 4779285v1 (e) If the Bonds are sold to the Indiana Finance Authority (the "Authority") as part of its State Revolving Fund Loan Program (the "SRF Program"), (i) the City has obtained the consent of the Authority, (ii) the City has faithfully performed and is in compliance with each of its obligations, agreements, and covenants contained in the Financial Assistance Agreement and this Ordinance, and (iii) the City is in compliance with its National Pollutant Discharge Elimination System permits, except for non-compliance, if any, for which the additional parity bonds are issued, including refunding bonds issued prior to, but part of the overall plan to eliminate such non- compliance. Section 2. Subsections (d) and (e) of the section of the Bond Ordinance labeled Section XVII. Additional Covenants of the City. are hereby amended and restated in their entirety as follows: (d) So long as any of the Bonds herein authorized are outstanding, the City shall maintain insurance coverage (which must be acceptable to the Authority if any of the Bonds are sold to the Authority as part of its SRF Program), including fidelity bonds, to protect the sewage works and its operations on the insurable parts of said Sewage 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, provided, however, such insurance requirement may be satisfied, in part or in whole, through the City's self insurance program. If the Bonds are sold to the Authority as part of its SRF Program, use of the City's self-insurance program to satisfy any of the insurance requirements set forth herein shall be subject to the approval of the Authority. Insurance proceeds and condemnation awards shall be used to replace or repair the property, or, if not used for that purpose, shall be treated and applied as net revenues of the sewage works (provided such is consented to by the Authority if any of the Bonds are sold to the Authority as part of its SRF Program). (e) So long as any of the Bonds are outstanding, the City shall not mortgage, pledge or otherwise encumber such sewage works, or any part thereof, nor shall it sell, lease or otherwise dispose of any portion thereof except replace equipment which may become worn out or obsolete, without the prior written consent of the Authority if such Bonds are sold to the Authority as part of its SRF Program. Section 3. The sentence in Subsection (i) of the section of the Bond Ordinance labeled Section XVII. Additional Covenants of the City. that states: BDDBOI 4779285v1 - 2 - The Common Council reserves the right, however, to amend this Ordinance from time to time to preserve the Tax Exemption described in Section XIX hereof without the approval of any owner of the bonds so long as the Common Council certifies that such amendment does not violate subsection (i) of Section XVII. is amended by replacing the sentence with the following: The Common Council reserves the right, however, to amend this Ordinance from time to time to preserve the Tax Exemption described in Section. XIX hereof without the approval of any owner of the bonds so long as the Common Council certifies that such amendment does not violate subsection (i) of Section XVII, provided, however, that if the Bonds are sold to the Authority as part of its SRF Program, the City shall obtain the prior written consent of the Authority. Section 4. The section of the Bond Ordinance labeled Section XVII. Additional Covenants of the City. shall be amended to include a new subsection (j), which will read as follows: (j) If the. Bonds are sold to the Authority as part of its SRF Program, the City shall not borrow any money, enter into any contract or agreement or incur any other liabilities in connection with the Sewage Works, other than for normal operating expenditures, without the prior written consent of the Authority if such undertaking would involve, commit, or use the revenues of the Sewage Works. Section 5. This Ordinance shall be in full force and effect from and upon compliance with the procedures required bylaw. ~**** BDDBOI 4779285v1 - 3 - Passed and adopted by the Common Council of the City of South Bend, Indiana, on the day of June, 2007. .. rJ~ Member of th mmon Council w •r+rr. om. Presented by me, to the Mayor of the City of South Bend, Indiana, on the Z~N^ day of June, 2007, at ~ ~ `~.~~ o'clock ~.m. _. ~ City rk , ~~ Approved o'clock~.m. ~L and signed by me on the ~_ day of June, 2007, at ~= Mayor, City of South Bend, Indiana rr a~ 1st P,~ADING b ~~ `~ PUBLIC HEARING ~-LS-~~ 3 rd READING (~ ~ZS ~o l NOT APPROVED REFERRED PASSED ~ -zS~~) BDDBOI 4779285v1 -4- ~iS~.t~ SCI ~~Ll'~'~ Q~$~ICB ~ur~ ~ ~ JOHN VOQRDE CITY CLERK, S0. BENd, !N. TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 37-07 A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AMENDING ORDINANCE NO. 9672-06 ENTITLED AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE ACQUISITION AND INSTALLATION OF CERTAIN IMPROVEMENTS TO THE CITY'S SEWAGE WORKS, THE ISSUANCE AND SALE OF ADDITIONAL REVENUE BONDS TO PROVIDE FUNDS FOR THE PAYMENT OF THE COSTS THEREOF, AND THE COLLECTION, SEGREGATION AND DISTRICT OF THE REVENUES OF SUCH SEWAGE WORKS AND OTHER RELATED MATTERS Respectfully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with a favorable recommendation. Karen L. White Chairperson COUNTY-CITY BUILDING 227 W. JEFFERSON BLVD. SOUTH BEND, INDIANA 46601-1830 PHONE 574/ 235-9216 FAx 574/235-9928 TDD 574/ 235-5567 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR DEPARTMENT OF ADMINISTRATION AND FINANCE M. CATHERINE FANELLO CONTROLLER June 5, 2007 Mr. Timothy A. Rouse President, South Bend Common Council 4`'' Floor, County-City Building South Bend, IN 46601 Re: Ordinance Amending 9672-06 Dear Mr. Rouse: Attached for your consideration and approval is a Bill to amend previously enacted Ordinance 9672-06 which authorized sewage works improvements and the issuance of revenue bonds not to exceed $56,380,000. The bonds authorized by Ordinance 9672-06 were sold to the Indiana Bond Bank pursuant to the State Revolving Loan Program (SRF Program). The City has learned that certain amendments to the original ordinance are required which relate to obtaining consent of the Indiana Finance Authority. The attached Bill amends Ordinance 9672-06 to include the required consent language. I will present this Bill to the Council at its Committee meeting and at public hearing. Thank you for your favorable consideration of this Bill. Sincerely, ~i1C" !i~ i,+~~k~ a JUG! - 6 ZQ07 CI't'+' ClE'.:%., rC. 2E?v~D,1N. (~IYIA/G.J JANICE L. HAIL LIZ ROWE THOMAS SKARBEK SUSAN WALLACE ROBERT ALLEN DIRECTOR DIRECTOR DIRECTOR MANAGER DIRECTOR HUMAN RESOURCES CITY FINANCE BUDGETING HL FINANCIAL REPORTING BENEFIT'S INFORMATION TECHNOLOGY