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HomeMy WebLinkAboutConstruction Additions & Improvements to the Sewage WorksORDINANCE NO. 5298 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, has heretofore established and now owns and operates a sewage works pursuant to Chapter 5, Article 2, Title 19, of The Indiana Code of 1971; and WHEREAS, the Stream Pollution Control Board of the State of Indiana, acting pursuant to Chapter 214 of the Acts of the General Assembly for the year 1943 on October 23, 1964, issued a final order to the City of South Bend ordering said City to cease and desist from causing and con- tributing to the pollution of the St. Joseph River downstream from the point of entry of sewage treatment plant effluent into said water; and said Board has ordered the City to construct facilities for adequate disinfection of the City's sewage treatment plant effluent; and WHEREAS, the Board of Public Works of the City of South Bend has represented to the Common Council and the Council now finds that said sewage works is in need of certain additions and improvements in order to comply with said final order; and that plans, specifications and estimates have been prepared and filed by the engineers employed by the City for the necessary additions and improvements to the sewage works owned and opera- ted by said City, which plans and specifications have been approved by the Board of Public Works of said City and by all governmental authorities having jurisdiction, particularly the Stream Pollution Control Board of the State of Indiana, and the State Board of Health; and WHEREAS, the Council further finds that the Board of Public Works has advertised for and received bids for the construction of said additions and improvements to the sewage works of said City, and on the basis of said bids the cost of said project, as defined in Section 1 of the governing act, will be in the amount of Seven Million Six Hundred Forty One Thousand Two Hundred Seventy Five Dollars ($7, 641, 275). WHEREAS, a federal grant in the amount of Three Million Sixty Thousand Two Hundred Fifty Dollars ($3, 060, 250) and a grant from the State of Indiana in the amount of One Million Three Hundred Ninety One Thousand Twenty Five Dollars ($1, 391, 025) will be made to the City for application on the cost of the project, leaving a balance of Three Million One Hundred Ninety Thousand Dollars ($3, 190, 000) to be financed by the issuance of revenue bonds under the provisions of said Act; and WHEREAS, the Council finds that there are now outstanding bonds payable out of the revenues of the City's sewage works, designated "Sewage Works Revenue Bonds ", dated April 1, 1954, issued pursuant to Ordinance No. 3959, adopted February 8, 1954. Said bonds are presently outstanding in the amount of Five Million One Hundred Eighty Thousand Dollars ($5, 180, 000), maturing semi - annually over a period ending on October 1, 1984, and bearing interest at the rate of 2 -5/8%, 2 -7/8%, or 3%, depending upon the maturities thereof; and WHEREAS, said ordinance does not authorize the issuance of parity bonds, but does authorize the issuance of additional revenue bonds junior and subordinate in all respects to said outstanding bonds in respect to the application of the revenues of said sewage works; and WHEREAS, the Common Council finds that all conditions precedent to the adoption of an ordinance authorizing the issuance of said junior revenue bonds have been complied with in accordance with the pro- visions of the governing statute; now therefore, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA: Section 1. That the actions of the Board of Public Works in - 2 - and about the making of additions and improvements to the sewage works of the City of South Bend be and the same are hereby approved, ratified and confirmed, and that said Board be and it is hereby authorized and directed to proceed with the construction of additions and improvements to said sewage works in accordance with the plans and specifications heretofore prepared and filed by Clyde E. Williams & Associates, Inc. , consulting engineers of South Bend, Indiana, which plans and specifica- tions are hereby approved and by reference made a part of this ordinance as fully as if the same were attached hereto and incorporated herein, provided that the cost of construction of said additions and improvements therefor shall not exceed the sum of Seven Million Six Hundred Forty One Thousand Two Hundred Seventy Five Dollars ($7, 641, 275), The terms "sewage works ", "works ", and other like terms where used in this ordinance shall be construed to mean and include all existing structures and property and all additions, extensions and improve- ments hereafter constructed or acquired, whether from the proceeds of the bonds herein authorized or otherwise. The additions and improvements to said works shall be constructed and the bonds herein authorized shall be issued pursuant to and in accordance with the provisions of Chapter 5, Article 2, Title 19, of The Indiana Code of 1971, and all acts amendatory thereof and supplemental thereto, hereinafter sometimes referred to as the "Act ". Sec. Z. Said additions and improvements shall include ease- ments, rights -of -way, improvements to the existing 48 MGD capacity (48 MGD primary and 24 MGD secondary) sewage treatment plant to 60 MGD Capacity (60 MGD primary and 48 MGD secondary) including addition of degritting facilities, sludge thickening, one aeration tank, two final tanks, chlorination, and phosphate removal facilities. Sec. 3. The City of South Bend shall issue its sewage works revenue bonds in the amount of Three Million One Hundred Ninety Thousand ( $3, 190, 000) Dollars - 3 - for the purpose of procuring funds to be applied on the cost of said additions and improvements to said works, as defined in Section 1 of said Act. The bonds authorized by this ordinance shall be designated as "Sewage Works Revenue Bonds, Second Series ". Any other pro- visions 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 Sewage Works Revenue Bonds, dated April 1, 1954. Said bonds shall be issued in the denomination of Five Thousand Dollars ($5, 000) each, numbered consecutively from 1 up, dated as of the first day of the month in which sold, and bear interest at a rate or rates not exceeding seven and one -half per cent (7 -1/2 %) per annum, payable on the first days of April and October of each year, beginning on April 1, 1972. Such interest shall be evidenced by coupons attached to said bonds. Both bonds and interest coupons shall be payable in law- ful money of the United States of America at The First Bank and Trust Company of South Bend, in the City of South Bend, Indiana, or, at the option of the holder, at the Harris Trust and Savings Bank, in the City of Chicago, Illinois, and such bonds shall mature serially in numerical order on October 1, in the years and amounts as follows: MATURITY DATE AMOUNT 1985 $ 450,000 1986 480,000 1987 510,000 1988 545,000 1989 580,000 1990 625,000 - 4 - Sec. 4. The bonds of this issue are not redeemable at the option of the City prior to maturity. Sec. 5. Said bonds shall be signed in the name of the City by the Mayor, countersigned by the City Controller, and attested by the City Clerk, who shall affix the seal of said City to each of said bonds. The interest coupons attached to said bonds shall be executed by placing thereon the facsimile signatures of the Mayor and City Controller, and said officials, by the signing of said bonds, shall adopt as and for their own proper signatures their facsimile signatures appearing on said coupons. In case any officer whose signature appears on the bonds or coupons shall cease to be such officer before the delivery of such bonds, such signature shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until the delivery thereof. Said bonds shall have all of the qualities and incidents of negotiable instruments under the laws of the State of Indiana. Said bonds shall be negotiable by delivery unless registered. Upon presentation of any of the bonds at the office of the City Controller, said City Controller shall register said bonds as to principal without charge or expense to the holder. Such registry shall be noted on each bond so presented, after which no transfer thereof shall be valid unless made by the registered owner in person or by his attorney duly author- ized and similarly noted on such bond, but bonds so registered may be discharged from registry at the expense of the holder by being in like manner retransferred to bearer, after which they shall be transferable by delivery but may again be registered as before at the expense of the holder. The registration of any bond shall not affect the negotiability of the interest coupons attached thereto, but such coupons shall continue to pass by delivery merely and shall remain payable to the bearer. Said bonds and any bonds hereafter issued on a parity therewith, as to both principal and interest, shall be payable from and secured by an irrevo- -5- cable 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) of the sewage works of the City of South Bend, including the existing works, the improvements and additions herein authorized to be ac- quired and constructed, and all additions and improvements thereto and replacements thereof subsequently constructed or acquired; sub- ject, however, to the prior charge against and payment from said net revenues of the principal of and interest on certain now outstanding bonds designated "Sewage Works Revenue Bonds ", dated April 1, 1954. The City shall not be obligated to pay the bonds herein authorized 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. Sec. 6. The form and tenor of said bonds, the interest coupons to be attached thereto, and the form of registry endorsement thereon shall be substantially as follows, all blanks to be filled in properly prior to delivery thereof: UNITED STATES OF AMERICA State of Indiana County of St. Joseph No. $5, 000 CITY OF SOUTH BEND SEWAGE WORKS REVENUE BOND, SECOND SERIES The City of South Bend, in St. Joseph County, State of Indiana, for value received, hereby promises to pay to the bearer, or if this bond be registered then to the registered holder, solely out of the special revenue fund hereinafter referred to, the principal amount of FIVE THOUSAND DOLLARS on the first day of , and to pay interest thereon from the date hereof until the principal is paid, at the rate of %) per annum, payable on the first - 6 - per cent days of and in each year, beginning on upon presenta- tion and surrender 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 First Bank and Trust Company of South Bend, in the City of South Bend, Indiana, or, at the option of the holder, at the Harris Trust and Savings Bank, in the City of Chicago, Illinois. This bond is one of an authorized issue of bonds of the City of South Bend, of like date, tenor and effect, except as to interest rates and dates of maturity, in the total amount of , numbered from 1 to in- clusive, issued for the purpose of providing funds to pay the cost of additions and improvements to the City's sewage works, as authorized by an ordinance adopted by the Common Council of the City of South Bend on , entitled "An Ordinance concerning the congtruction 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 ", and in strict compliance with the provisions of Chapter 5, Article 2, Title 19 of The Indiana Code of 1971, and the acts amendatory thereof and supplemental thereto. Pursuant to the 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 here - after issued on a parity therewith, are payable solely from the Sewage Works Sinking Fund (heretofore creat- ed by Ordinance No. 3959, adopted February 8, 1954) 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 main- tenance) 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 sub- sequently constructed or acquired; subject, however, to the prior payment from said Sinking Fund of the principal of and interest on certain Sewage Works Revenue Bonds, dated April 1, 1954, now outstanding in the principal amount of Five Million One Hundred Eighty Thousand Dollars ($5, 180, 000), payable semi- annually over a period ending on October 1, 1984, in accordance with the terms thereof, which bonds constitute a first charge against said net revenues. This bond shall not constitute an indebtedness of the City of South Bend within the meaning of the provisions - 7 - 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. 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 the 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 service 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 for the pay- ment of the sums required to be paid into said Sink- ing Fund under the provisions of said Act and said ordinance. In the event the City, or the 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 or on principal of this bond, the holder of this bond shall have all of the rights and remedies pro- vided for in said Chapter 5, Article 2, Title 19 of The Indiana Code of 1971, 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 thereon. 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, (c) the principal of all bonds payable from the revenues of the sewage works as such principal shall fall due, and (d) an additional amount as a margin of safety, which margin, together with any unused surplus of such margin carried forward from the preceding year, shall equal not less than ten per cent (10%) of all other amounts so required to be paid into said Sinking Fund. The bonds of this issue are not redeemable at the option of the City prior to maturity. If any bond or interest coupon shall not be presented for payment on the date fixed therefor, the City may deposit in trust with The First Bank and Trust Company of South Bend, in the City of South Bend, Indiana, an amount sufficient to pay such bond or interest coupon, as the case may be, and thereafter the holder shall look only to the funds so deposited in trust with said bank for pay- ment and the City shall have no further obligation - 8 - or liability in respect thereto. This bond and all other bonds of said issue shall have all the qualities and incidents of negotiable instruments under the laws of the State of Indiana. This bond may be registered as to principal at the office of the City Controller in the City of South Bend, Indiana, in the name of the owner hereof, and such registration noted hereon by said City Controller. Thereafter no transfer hereof shall be valid unless made at said office by the registered owner in person or by his duly authorized attorney and similarly noted hereon, but this bond may be discharged from regis- tration at the expense of the holder by being in like manner transferred to bearer and may again from time to time be registered or transferred to bearer as be- fore at the expense of the holder. Such registration shall not restrict or affect the negotiability of the interest coupons hereto attached by delivery only, but such interest coupons shall always be payable to bearer. 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. IN WITNESS WHEREOF, the City of South Bend, in St. Joseph County, State of Indiana, has caused this bond to be executed in its corporate name by its Mayor, countersigned by it s City Controller, its corporate seal to be hereunto affixed and attested by 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 first day of 197 . CITY OF SOUTH BEND By Mayor Countersigned: City Controller Attest: City Clerk (Interest Coupon) Coupon No. On 1, 197_ the City of South Bend, Indiana, will pay to the bearer at The First Bank and Trust Company of South Bend, in the City of South Bend, Indiana, or, at the option of the holder, at the Harris Trust and Savings Bank, in the City of Chicago, Illinois, out of its Sewage Works Sinking Fund, - 9 - Dollars in lawful money of the United States of America, being the interest then due on its Sewage Works Revenue Bond, Second Series, dated 1, 1971 No. , CITY OF SOUTH BEND M csimile) MAYOR (Facsimile) City Controller REGISTRATION ENDORSEMENT This bond can be registered only at the office of the City Controller in the City of South Bend, Indiana. No writing hereon except by the City Controller. In Whose Name Date of Registry Registered City Controller Sec. 7. 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 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 bonds the City Controller shall certify to the Treasurer the amount which the purchaser is to pay for the same; thereupon, the Treasurer shall be authorized to re- ceive from the purchaser the amount so certified by the Controller, and to deliver the bonds to such purchaser. 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 therefor, which shall not be less than the face value of said bonds, plus accrued interest from the date thereof to the date of delivery. The bonds herein authorized, when fully paid for and delivered to the purchaser, shall be binding special revenue obligations of - 10 - 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 bonds shall be and are hereby set aside for application on the cost of construction of said additions and improvements to the City's sewage works hereinbefore referred to, and the expenses necessarily incurred in connection therewith and on account or in connection with the issuance of said 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. Sec. 8. 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 Tri- County News published in the City of South Bend, Indiana, and one time in a newspaper or financial journal published in the City of Indianapolis, Indiana, the last publication to be at least seven (7) days prior to the date fixed for said sale. Said notice, or a summary of the terms thereof, may also be published in The Bond Buyer, published in the City and State of New York, in the discretion of the City Controller. The bond sale notice shall state the time and place of sale, the character and amount of the bonds, the maximum 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 re- ceived and the sale made, and such other information as the City Controller and the attorneys employed by the City shall deem advisable and as by Chapter 5, Article 2, Title 19, of The Indiana Code of 1971 provided. Said notice shall provide, among other things, that each bid shall be accompanied by a certified or cashier's check in the amount of Thirty Five Thousand Dollars ($35, 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 bonds and pay for the same at the time fixed in the notice of sale, then said check and the proceeds thereof shall be the - 11 - property of the City and shall be considered as its liquidated damages on account of such default. All bids for said bonds shall be sealed and shall be presented to the Controller at his office. Bidders for said bonds shall be required to name the rate or rates of interest which the bonds are to bear, not exceeding the maximum rate hereinbefore fixed. Such in- terest rate or rates shall be in multiples of one - eighth (1/8) or one -tenth (1 /10) of one per cent (I%), and not more than four (4) different interest rates shall be named by each bidder. Bids specify- ing more than one interest rate shall also specify the amount and matur- ities of the bonds bearing each rate, but all bonds maturing on the same date shall bear the same single coupon rate, and the difference between the highest and lowest rate shall not exceed 2%. The interest due on any bond on any interest payment date shall be represented by a single inter- est coupon. The 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 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 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 the highest bid offered at the advertised sale. Prior to the delivery of said bonds, the City Controller shall be authorized to obtain a legal opinion as to the validity of the bonds from Ice Miller Donadio & Ryan, acting as bond counsel for the City, and to furnish such opinion to the purchasers of the bonds. The fee of such - 12 - bond counsel shall be considered as a part of the cost of the project on account of which said bonds are issued, and shall be paid out of the proceeds of said bonds. Sec. 9. The accrued interest and premium received at the time of the delivery of the bonds, if any, shall be deposited in the Sewage Works Sinking Fund heretofore created by Ordinance No. 3959, adopted on February 8, 1954. The remaining proceeds from the sale of said bonds shall be deposited in a bank or banks which are legally designated depositories for the funds of the City, in a special account or accounts to be designated as "City of South Bend, Sewage Works Construction Account. " All funds deposited to the credit of said Sewage Works Sinking Fund or Sewage Works Construction Account shall be deposited, held and secured or invested in accordance with the laws of the State of Indiana relating to the depositing, holding land securing or investing of public funds; provided, however, that any such investment shall be made in accordance with Chapter 1, Article 13, Title 5, of The Indiana Code of 1971. The funds in said special construction account or accounts shall be expended only for the purpose of paying the cost of the additions and improvements to the works, as defined in Section 1 of the Act, or as otherwise required by said Act. Any balance or balances remaining unexpended in such special account or accounts after comple- tion of the works, which are not required to meet unpaid obligations incurred in connection with such project, shall be paid into the Sewage Works Sinking Fund and shall be used solely for the purposes of said fund. Subject to the approval of the Board of Public Works, the City Controller shall be authorized to invest, subject to the provisions of Chapter 1, Article 13, Title 5, of The Indiana Code of 1971, such portion of the funds in said Construction Account as shall not be required for immediate use, provided that no such investment shall be made at a - 13 - cost in excess of the par value of the securities purchased, and that none of the funds shall be invested in any securities the maturity date of which is later than the time when such funds are required to be available for the purposes thereof, or if the time when such funds will be required for use cannot be determined, such investments shall be made only in securities having a maturity date of one (1) year or less from the date of purchase. Any interest or other accretions derived from any such investment shall become a part of the funds invested. In conformity with the provisions of the governing statutes, the holders of said bonds shall be entitled to a lien on the proceeds of said bonds until the same are applied on the project on account of which said bonds were issued. Sec. 10. All of the revenue derived from the operation of the City's serge works shall be segregated and kept in the 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 Sewage Works Sinking Fund, Sewage Works Depreciation Fund, and Sewage Works Improvement Fund shall be provided. Sec. 11. 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, is hereby designated and constituted as the special fund for the payment of the interest on and principal of the revenue bonds authorized by this ordinance and the payment of any fiscal agency charges in connection with the payment of the bonds and interest coupons. Said fund shall be continued until all of the bonds issued under said prior ordin- ances 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 in- terest on all bonds which by their terms are payable from the revenues - 14 - 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, to- gether with any unused surplus of such margin carried f orward from the preceding year, shall equal not less than ten per cent (10 %) of all other amounts so required to be paid into said Sinking Fund; provided, how- ever, that the Sewage Works Revenue Bonds, dated April 1, 1954, 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 dur- ing 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 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. 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 - 15 - 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 of funds above said required level may also be used in purchasing outstanding bonds at a price less than the then applicable redemption price, it first approved by the Board of Public Works. Moneys in said Sinking Fund shall not be used for any other purpose whatsoever except as provided in this ordinance. Sec, 12. 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 re- quirements of said Sinking Fund for the then next succeeding twelve (12) calendar months, and funds in an amount sufficient for operation, repair and maintenance of the works for a like period have been accumu- lated and reserved for that purpose, and the requirements of Ordinance No. 3959 as to the Sewage Works Depreciation Fund have been met, then any excess revenues of the works available may be placed in the fund designated as "Sewage Works Improvement Fund ", created by said ordinance, and be used to pay the cost of additions and extensions to the works. No revenues of the 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 works. Sec. 13. 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 - 16 - Sewage Works Sinking Fund, also all other financial transactions relat- ing to said works, including the amounts set aside or credited to the Sewage Works Depreciation Fund and 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 to the original purchaser of the bonds, and, upon written request, to any subsequent holder of the bonds at the time then outstanding, not more than ninety (90) days after the close of each fiscal year, operating income and expense and balance sheet statements of the 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 Con- troller. Any holder or holders of the bonds then outstanding shall have the right at all reasonable times to inspect the works and all records, accounts and data of the City relating thereto. Such inspections may be made by representatives duly authorized by written instrument. Sec. 14. 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 said 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 sewerage 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 for the payment of the sums required to be paid into the Sewage Works Sinking Fund by said governing Act. Such ratesor charges shall, if necessary, be changed and readjusted from time to time so that the revenues therefrom shall always be sufficient to meet - 17 - the expenses of operation, repair and maintenance, and depreciation, and the requirements of the Sewage Works Sinking Fund. The rates or charges so established shall apply to any and all use of such works by and service rendered to the City and all departments thereof, and shall be paid by the City or the various departments thereof as the charges accrue. Sec. 15. The City reserves the right to authorize and issue additional bonds, payable out of the revenues of its sewage works, ranking oUia parity with the bonds authorized by this ordinance, for the purpose of finahicing the cost of future additions, extensions and improve- ments to the sewage works, subject to the following conditions: (a) The interest on and principal of all bonds payable from the revenues of the sewage works shall have been paid to date in accordance with the terms thereof. (b) All monthly deposits in the Sewage Works Sinking Fund required by Ordinance No. 3959, adopted February 8, 1954, and by this ordinance, have been made. (c) 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 per cent (125%) of the maximum annual interest and principal requirements of the then outstanding bonds and the additional parity bonds pro- posed to be issued; or prior to the issuance of said parity bonds the sewage rates and charges shall be increased sufficiently so that said increased rates and charges 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 per cent (125%) of the maximum annual interest and principal requirements of the then outstanding bonds and the additional parity bonds pro- M:M posed to be issued. For purposes of this subsection, the records of the sewage works shall be analyzed and all showings shall be prepared by a certified public accountant employed by the City for that purpose. (d) The principal of the additional parity bonds shall be payable annually on October 1 and the interest semi - annually on April 1 and October 1 in the years in which principal and interest are payable. Sec. 16. For the purpose of further safeguarding the interests of the holders of the bonds herein authorized, it is specifi- cally provided as follows: (a) All contracts let by the City in connection with the construction of said additions and 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 one hundred per cent (100 0%) 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 super- vision and subject to the approval of Clyde E. Williams & Associates, Inc. , or such other competent engineer 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. - 19 - (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 prop- erty 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 are outstanding, the City shall not mortgage, pledge or otherwise encumber such works, or any part thereof, nor shall it sell, lease or other- wise 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 15 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 author- ized, executed or issued by the City except such as shall be made subordinate and junior in all respects to the bonds herein author- ized, unless all of the bonds herein authorized are redeemed and retired coincidentally with the delivery of such additional bonds or other obligations, or 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 - 20 - 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 the holders of the sewage works revenue 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 remain unpaid. (i) The provisions of this ordinance shall be construed to create a trust in the proceeds of the sale of the bonds herein authorized for the uses and purposes herein set forth, and the holders of the 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 provisions 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 for a period of thirty (30) days, or in the event of default in respect to any of the provisions of this ordinance or the governing Act. - 21 - Sec. 17. The following is the estimate of the rates and charges to the several classes of users: Ttr-.e above rates and charges are in addition to water rates and charges and the minimum charge per month for each bill shall be $3.40. Sec. 18. All ordinances and parts of ordinances in conflict herewith are hereby repealed, but none of the provisions of this ordin- ance shall be so construed as adversely affecting the rights of holders of said outstanding Sewage Works Revenue Bonds, dated April 1, 1954. Sec. 19. This ordinance shall be in full force and effect from and after its passage and signing by the Mayor. 444x'II-1zjI ' - Member of the CornmoR Council Passed and adopted by the Common Council of the City of South Bend on the R 6 1zday of Attest: 17 00 -dI -22- 11cO1u111 �, V1111.Ct RATE PER 100 CU, FT. Quantity of water used per month PER MONTH First 500 cu. ft. $ 0. 68 per 100 cu, ft. From 501 to 2,000 cu. ft. 0.47 per 100 cu. ft. From 2,001 to 4,500 cu. ft. 0.40 per 100 cu. ft. From 4,501 to 12,000 cu. ft. 0. 32 per 100 cu. ft. From 12,001 to 30, 000 cu, ft. 0.30 per 100 cu, ft. From 30,001 to 50,000 cu. ft. 0.26 per 100 cu, ft. From 50,001 to 100,000 cu. ft. 0.21 per 100 cu. ft. From 100,001 to 500, 000 cu, ft. 0.19 per 100 cu. ft. From 500,001 to 1,000,000 cu. ft. 0. 15 per 100 cu. ft. Over 1,000,000 0.11 per 100 cu, ft. Ttr-.e above rates and charges are in addition to water rates and charges and the minimum charge per month for each bill shall be $3.40. Sec. 18. All ordinances and parts of ordinances in conflict herewith are hereby repealed, but none of the provisions of this ordin- ance shall be so construed as adversely affecting the rights of holders of said outstanding Sewage Works Revenue Bonds, dated April 1, 1954. Sec. 19. This ordinance shall be in full force and effect from and after its passage and signing by the Mayor. 444x'II-1zjI ' - Member of the CornmoR Council Passed and adopted by the Common Council of the City of South Bend on the R 6 1zday of Attest: 17 00 -dI -22- 11cO1u111 �, V1111.Ct Presented by me to the Mayor of the City of South Bend on the 9 day of , 1971, at the hour of o 4-.M. f v ity Clerk This ordinance approved and signed by me on the Is f day of �r,_,� 1971, at the hour of . ��% w M. 1st & 2nd READING 5 -24 -71 COMMITTEE OF THE WHOLE PUBLIC HEARING 3rd READING 5 ^25 -71 NOT APPROVED REFERRED PASSED 5 -25 -71 - 23 - yor FILED IN CLERK'S OFFICE MAY 2 41971 KATHRYN L. BLOUGH CITY CLERK, SOUTH BEND, IND.