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HomeMy WebLinkAboutPurchase of Land and the Construction , off Street Parking Facilities Issuance of revenue Bonds and Distribution of the RevenuesORDINANCE No. 5089 -69 Passed by the Common Council of the City of South Bend, June 9, __69 Clerk of Common Council Presented by me to the Mayor of the City of South Bend, June 10, 69 �9 Clerk Approved and signed by me 'ru%ow.4. U IDEAL e0JEW PRESS ORDINANCE NO. 5089 -69 An Ordinance of the City of South Bend con- cerning the purchase of land and the con - struction, maintenance, operation and financ- ing of off- street parking facilities thereon, the issuance of revenue bonds to provide the cost thereof, the collection, segregation and distribution of the revenues of said project, the safeguarding of the interests of the hold- ers of said bonds, and other matters connected therewith, as amended. WHEREAS, the Common Council of the City of South Bend finds that surveys and studies have been made by the Area Plan Commission of St. Joseph County, Indiana, and Harland Bartholomew and Associates of Memphis, Tennessee, and rec- ommendations of said organizations have been made showing that a necessity exists for the acquisition, construction and installation of off- street parking structures at cer- tain locations in the downtown area of the City of South Bend hereinafter more particularly set forth; that the pur- chase of land and the construction and operation thereon of said off - street parking facilities are necessary for the proper protection of the public safety and welfare and will be of public utility and benefit to the City and its citi- zens; that the cost of the acquisition of land and construc- tion thereon of said off - street parking facilities may be provided by the issuance of revenue bonds which will not con- stitute a general obligation of the City; and WHEREAS, said surveys, field studies, analyses and rec- ommendations have heretofore been considered and approved by the Board of Public Works and Safety and the Common Council, and the Common Council has heretofore directed the Board of FILED IN CLERK'S OFFICE MAY 2 6 1969 KATHRYN L. BLOUGH GTY CLERK, SOUTH BEND, IND. Public Works and Safety to proceed with said facilities as provided by law; and WHEREAS, the Common Council further finds that the Board of Public Works and Safety has obtained options for the purchase of the major portions of the following described lands for use as off- street parking facilities in the City of South Bend, St. Joseph County, Indiana, to -wit: Site I located at the Southeast Corner of Colfax and Main Streets in the City of South Bend, Indi- ana, more particularly Lots 22, 23 and 24 as shown on the recorded original plat of the Town, now City, of South Bend; Site III located at the Northwest Corner of St. Joseph Street and Jefferson Boulevard in the City of South Bend, Indiana, more particularly Lots 38, 39 and 40 as shown on the recorded original plat of the Town, now City, of South Bend; and also caused plans, specifications and estimates of the cost of the purchase and construction of said facilities to be prepared, and adopted a resolution declaring the public utility and benefit of the facilities to the City and its citizens; that the Board of Public Works and Safety caused to be published, as provided by law, notice of the adoption of said resolution and of a public hearing open to all per- sons interested in or affected by such proceedings to be held on October 29, 1968; that on said date said Board held a pub- lic hearing and the same was continued to November 4, 1968, at which time said Board took final action determining the public utility and benefit of the proposed facilities to the City and its citizens and confirmed its declaratory resolu- tion; and WHEREAS, the Common Council further finds that the Board of Public Works and Safety has fixed and determined the cost of acquisition of said described property by obtaining options - 2 for the purchase of the major portion thereof and has re- ceived bids for the construction of said facilities after published notice as required by law, and the cost thereof, including all incidental expenses necessary to be incurred in connection therewith and in connection with the issuance of bonds on account thereof, will be in the amount of Three Million Six Hundred Thousand Dollars ($3,600,000); that said Board has requested the Common Council to authorize the issu- ance of revenue bonds for that purpose under the provisions of Chapter 190 of the Acts of the Indiana General Assembly for the year 1955; and WHEREAS, the Council finds that all conditions preced- ent to the adoption of an ordinance authorizing the issuance of revenue bonds to provide the necessary funds to pay the cost of said off - street parking facilities have been complied with in accordance with the provisions of the governing stat- utes; now therefore, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA: Section 1. The Board of Public Works and Safety be, and it is hereby, authorized and directed to proceed with the pur- chase and construction of the off - street parking facilities which shall be designated on the books of the City as "Off - Street Parking Project 1969" (sometimes herein referred to as "Project 1969 "). Said facilities so designated shall include the following described lands: Site I located at the Southeast Corner of Colfax and Main Streets in the City of South Bend, Indi- ana, more particularly Lots 22, 23 and 24 as shown on the recorded original plat of the Town, now City, of South Bend; - 3 - Site III located at the Northwest Corner of St. Joseph Street and Jefferson Boulevard in the City of South Bend, Indiana, more particularly Lots 38, 39 and 40 as shown on the recorded original plat of the Town, now City, of South Bend; and all improvements thereto and structures, equipment and appurtenances now or hereafter placed thereon. Said facili- ties shall be constructed on said lands as described herein - above and in accordance with the descriptions, plats, speci- fications and estimates adopted by said Board. The cost of acquisition and construction of said facilities to be paid from the proceeds of bonds, including all incidental ex- penses necessary to be incurred in connection therewith and in connection with the issuance of bonds on account thereof, shall not exceed the sum of Three Million Six Hundred Thou- sand Dollars ($3,600,000). No obligation shall be incurred beyond the extent to which money has been or may be made avail- able to the Board of Public Works and Safety by the Common Council. Said project shall be constructed and operated, and the bonds herein authorized shall be issued, pursuant to and in accordance with the provisions of Chapter 190 of the Acts of the Indiana General Assembly for the year 1955, and acts sup- plemental thereto, hereinafter sometimes referred to as the "Act." The terms "parking facility," "facility," "off- street parking facilities," "facilities," or "project," as used in this ordinance, shall mean and refer to the Project 1969 as herein defined, and shall include the lands therein described on which said projects are to be located, all structures and improvements at, placed or made on said lands, entrances, exits, equipment and all other accessories or appurtenances necessary or desirable for safety and convenience in the off- - 4 - street parking of vehicles. Sec. 2. For the purpose of procuring on the cost of said Project 1969,.the City issue its off- street parking revenue bonds Three Million Six Hundred Thousand Dollars Said bonds shall be issued in the den( funds to be applied of South Bend shall in the amount of ($3,600,000). )mination of Five Thousand Dollars ($5,000) each, numbered consecutively from 1 to 720 inclusive, dated as of July 1, 1969, and shall bear interest at a rate or rates not exceeding seven and one -half per cent (7 -1/2 %) per annum, the exact rate or rates to be de- termined by bidding, payable on the first days of January and July in each year, beginning on January 1, 1970. Such inter- est shall be evidenced by coupons attached to said bonds. Both bonds and interest coupons shall be payable in lawful money of the United States of America at the main office of First Bank and Trust Company of South Bend, in the City of South Bend, In- diana, and, at the option of the holder, at such other bank or trust company as may be mutually agreed upon with the success- ful bidder at the time of sale of the bonds. Said bonds shall mature serially in numerical order on January 1 in the years and amounts as follows: Year Amount Year Amount Year Amount 1972 $30,000 1976 $50,000 1981 75,000 1973 50,000 1977 60,000 1982 75,000 1974 50,000 1978 60,000 1983 75,000 1975 50,000 1979 75,000 1984 75,000 1980 75,000 2000 2,800,000 Sec. 3. The bonds of this issue maturing on January 1, 2000, shall be redeemable prior to maturity at the option of the City from available revenues, in whole, or from time to time in part, by lot in such manner as the City determines to be fair and equitable, on January 1, 1984, or any interest payment date thereafter, at the principal amount thereof and - 5 - accrued interest to the date fixed for redemption, plus the following premiums: 3% if redeemed on January 1, 1984, or thereafter on or before July 1, 1987; 2% if redeemed on January 1, 1988, or thereafter on or before July 1, 1991; 1% if redeemed on January 1, 1992, or thereafter on or before July 1, 1995; 0% if redeemed on January 1, 1996, or thereafter prior to maturity; and, from any funds regardless of source, in whole only, on January 1, 1984, or any date thereafter, at the principal amount thereof and accrued interest to the date fixed for redemption, plus the following premiums: 5% if redeemed on January 1, 1984, or thereafter on or before December 31, 1987; 4% if redeemed on January 1, 1988, or thereafter on or before December 31, 1991; 2% if redeemed on January 1, 1992, or thereafter on or before December 31, 1995; 1% if redeemed on January 1, 1996, or thereafter prior to maturity. Notice of such redemption shall be published in a newspaper published in the City of South Bend, Indiana, and shall also be published in The Bond Buyer, or in the event of suspension of publication of such financial journal, then in another fi- nancial journal, published in the Borough of Manhattan, City and State of New York, or in a financial journal published in the City of Chicago, Illinois. If the date fixed for redemp- tion is an interest payment date, said notice shall be so pub- lished one (1) time at least thirty (30) days prior to the redemption date; if the date fixed for redemption is other than an interest payment date, said notice shall be so pub- lished by two (2) insertions, the first to be at least thirty (30) days prior to the date fixed for redemption and the sec- ond to be not more than thirty (30) nor less than fifteen (15) days prior to the date fixed for redemption. If any of the bonds so to be redeemed are registered,,such notice shall be mailed to the address of the registered holder as shown on the registration record of the City. The notice shall spec- ify the date and place of redemption and the serial numbers of the bonds called for redemption. The place of redemption may be any bank determined by the City. Interest on the bonds so called for redemption shall cease on the redemption date fixed in such notice, if sufficient funds are available at the place of redemption to pay the redemption price on the date so named and when said bonds shall be presented for re- demption. If any unmatured bond and coupon or coupons so called for redemption shall not be presented on the date fixed for redemption at the place of redemption, the City may place in trust at the bank constituting the place of redemption suf- ficient funds to effect such redemption, and thereafter the holder of such bond and coupon or coupons shall be entitled to payment only from such trust funds and the redemption there- of shall be deemed to have been effected and the bonds no long- er outstanding. Sec. 4. Said bonds shall be signed in the name of the City of South Bend 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 Con- troller, and said officials, by the signing of said bonds, shall adopt as and for their own proper signatures the fac- simile signatures appearing on said coupons. Said bonds shall have all of the qualities and incidents of negotiable instru- - 7 - ments under the laws of the State of Indiana. Said bonds shall be negotiable by delivery unless regis- tered. Upon presentation of any of the bonds at the office of the City Controller in the City of South Bend, 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 holder in person or by his attorney duly authorized and similarly noted on such bond, but bonds so registered may be discharged from registry by being in like manner retransferred to bearer, after which they shall be transferable by delivery but may again be regis- tered as before. The registration of any bond shall not af- fect the negotiability of the interest coupons attached there- to, but such coupons shall continue to pass by delivery merely and shall remain payable to bearer. Said bonds, as to both principal and interest, shall be payable from and secured by an irrevocable pledge of and shall constitute a first charge upon all the net revenues (herein de- fined as gross revenues after deduction only for the payment of the reasonable expenses of operation, maintenance and re- pair) of the off - street parking facilities herein designated as Project 1969, and all additions and improvements thereto and replacements thereof subsequently constructed or acquired; also the unobligated net revenue derived from on- street park- ing meters to the extent hereinafter specifically provided. The City shall not be obligated to pay said bonds or the in- terest thereon except from said revenues, and said bonds shall not constitute an indebtedness of the City of South Bend with- in the meaning of the provisions and limitations of the consti- tution of the State of Indiana. - 8 Sec. 5. The form and tenor of said bonds, the interest coupons to be attached thereto, and the form of registry en- dorsement 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 OFF - STREET PARKING REVENUE BOND SERIES 1969 PROJECT The City of South Bend, in St. Joseph County, State of Indiana,.for value received, hereby prom- ises to pay to the bearer hereof, 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 January, (unless this bond be subject to and be called for redemption prior to maturity as hereinafter provided), and to pay inter- est thereon from the date hereof until the principal is paid, at the rate of per cent ( %) per annum, payable on the first days of January and July in each year, beginning on January 1, 1970, upon presentation 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 main office of First Bank and Trust Company of South Bend, in the City of South Bend, Indiana, or, at the option of the holder, at .................... ...... ................... in the City of ' This bond is one of an authorized issue of ( ) bonds of the City of South Ben of Ike a te tenor and effect, except as to numbering, rates of interest, and dates of maturity, in the total amount of .....I. ...... numbered-from. 1 to inclusive, issued for the purpose of provid- ing funds to pay the cost of off - street parking facili- ties in the City designated as "Project 1969," as au- thorized by an ordinance adopted by the Common Council of the City of South Bend on the day of , 1969, entitled "An Ordinance of the City of South Ben concerning the purchase of land and the construction, maintenance, operation and financing of off - street parking facilities thereon, the issuance of revenue bonds to provide the cost thereof, the collection, segregation and distribution of the revenues of said project, the safeguarding of the interests of the holders of said bonds, and other matters con- nected therewith," and in strict compliance with the provisions of Chapter 190 of the Acts of the Indiana General Assembly for the year 1955, and acts supplemental thereto. Pursuant to the provisions of said Act and said ordinance, the principal and interest of this bond and all other bonds of said issue are payable solely from the Parking Sinking Fund - Project 1969 (created by said ordinance) to be provided from the net reve- nues (herein defined as gross revenues after deduc- tion only for the payment of the reasonable expenses of operation, maintenance and repair) of the off- street parking facilities, Project 1969, including the facili- ties 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, and from the unobligated net revenues derived from on- street parking meters pledged to said fund. This bond shall not constitute an indebtedness of the City of South Bend within the meaning of the provisions and limita- tions 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. The City irrevocably pledges the entire net reve- nues of said Project 1969, off- street parking facili- ties, together with the unobligated net revenue derived on and after July 1, 1969, from on- street parking meters to the extent provided in said ordinance, to the prompt payment of the interest and principal of the bonds is- sued on account of the construction of said Project 1969 facilities, of which this is one, and covenants that it will cause to be fixed, maintained and collected such charges for service rendered by said facilities which, together with the pledged unobligated net revenues de- rived from on- street parking meters, are sufficient in each year for the payment of the proper and reasonable expense of operation, maintenance and repair of said facilities and for the payment of the sums required to be paid into the Parking Sinking Fund - Project 1969 under the provisions of said Act and said authorizing ordinance. The holder of this bond or any coupon ap- pertaining thereto may, by appropriate legal action, enforce and compel performance of all the duties re- quired by the governing Act or by the authorizing ordi- nance to be performed by the City or any officer or body thereof, including the fixing and collecting of proper parking charges, or charges for other service' rendered by off- street parking Project 1969. If there be any failure to pay the interest on or principal of this issue of bonds in accordance with the terms there- of, a receiver may be appointed to administer said park- - 10 - ing facilities, with power to fix and collect charges sufficient to provide for the payment of this bond and the interest thereon, and to apply the revenues in conformity with the provisions of said Act and or- dinance. The City further covenants that all of the income and revenues of said Project 1969 facilities shall be set aside daily, as received, into a separate and spe- cial fund to be designated as "Parking Fund - Project 1969 "; that out of said fund there shall be paid the cost of operation, maintenance and repair of the fa- cilities for the current calendar month and a suffici- ent amount reserved to pay such cost for the calendar month then next succeeding; that the balance of the moneys in said fund shall be deemed to be the net rev- enues of the facilities and shall, on the first day of each calendar month, be transferred and set aside into a separate and special fund designated as "Parking Sink- ing Fund - Project 1969" to the extent provided in said ordinance; that on the first day of each calendar month, beginning July 1, 1969, it will set aside revenues de- rived from its on- street parking meters into said Sink- ing Fund to the extent provided in said ordinance. The bonds of this issue maturing on January 1, 2000, are redeemable prior to maturity at the option of the City from available revenues, in whole, or from time to time in part, by lot in such manner as the City determines to be fair and equitable, on January 1, 1984, or any interest payment date thereafter, at the princi- pal amount thereof and accrued interest to the date fixed for redemption, plus the following premiums: 3% if redeemed on January 1, 1984, or there- after on or before July 1, 1987; 2% if redeemed on January 1, 1988, or there- after on or before July 1, 1991; 1% if redeemed on January 1, 1992, or there- after on or before July 1, 1995; 0% if redeemed on January 1, 1996, or there- after prior to maturity; and, from any funds regardless of source, in whole only, on January 1, 1984, or any date thereafter, at the prin- cipal amount thereof and accrued interest to the date fixed for redemption, plus the following premiums: 5% if redeemed on January 1, 1984, or there- after on or before December 31, 1987; 4% if redeemed on January 1, 1988, or there- after on or before December 31, 1991; 2% if redeemed on January 1, 1992, or there- after on or before December 31, 1995; 1 %.if redeemed on January 1, 1996, or there- after prior to maturity. Notice of such redemption shall be published in a news- paper published in the City of South Bend, Indiana, and - 11 - shall also be published in The Bond Buyer, or in the event of suspension of publication of such financial journal, then in another financial journal, published in the Borough of Manhattan, City and State of New York, or in a financial journal published in the City of Chicago, Illinois. If the date fixed for redemp- tion is an interest payment date, said notice shall be so published one (1) time at least thirty (30) days prior to the redemption date; if the date fixed for redemption is other than an interest payment date, said notice shall be so published by two (2) inser- tions, the first to be at least thirty (30) days prior to the date fixed for redemption and the second to be not more than thirty (3.0) nor less than fifteen (15) days prior to the date fixed for redemption. A like notice shall be sent by mail to the holders of such bonds as are then registered. Interest on bonds so called for redemption shall cease on the redemption date fixed in said notice, if sufficient funds are available at the place of redemption to pay the re- demption price on the date so named and when presented for payment. If any unmatured bond and coupon or cou- pons so called for redemption shall not be presented on the date fixed for redemption at the place of re- demption, the City may place in trust at the bank con- stituting the place of redemption sufficient funds to effect such redemption, and thereafter the holder of such bond and coupon or coupons shall be entitled to payment only from such trust funds and the redemption thereof shall be deemed to have been effected and the bonds no longer outstanding. This bond and all other bonds of said issue shall have all the qualities and incidents of negotiable in- struments 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 registration by being in like manner transferred to bearer and may again from time to time be registered or transferred to bearer as before. Such registration shall not restrict or affect the ne- gotiability 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, - 12 countersigned by its 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 signa- tures of said Mayor and City Controller, as of the first day of July, 1969. Attest: City Clerk CITY OF SOUTH BEND By Mayor Countersigned: City Controller (Interest Coupon) Coupon No. $ On if (unless the bond herein mentione shall be subject to and shall have been called for previous redemption), the City of South Bend, Indiana, will pay to bearer at the main office of First Bank and Trust Company of South Bend, in the City of South Bend, Indiana, or, at the option of the holder, at ... . in the City of out of its Parking Sinking Fund - Project 1969, Dollars in lawful money of the United States o America, being the interest then due on its Off - Street Parking Revenue Bond, Series 1969 Project, dated July 1, 1969, No. CITY OF SOUTH BEND By (Facsimile) Mayor (Facsimile) City Control ler 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 Con- troller. In Whose Name Date of Registry Registered - 13 - City Controller Sec. 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 pro- vided. The City Controller is hereby authorized and directed to deliver said bonds to the purchaser thereof after sale made in accordance with the provisions of this ordinance, provided that at the time of said delivery the City Controller shall collect 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 the binding special revenue obligations of the City, payable out of the revenues to be set aside into the Parking Sinking Fund - Project 1969, 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 acquisition, construction and installation of said Project 1969 parking facilities hereinbefore referred to, and the expenses necessarily incurred in connection therewith or in connection with the issuance of bonds on account there- of, including interest during construction if required for that purpose. The proper officers of the City are hereby di- rected to draw all proper and necessary warrants, and to do whatever acts and things which may be necessary to carry out the provisions of this ordinance. Sec. 7. Prior to the sale of said bonds the City Control- ler shall cause to be published a notice of said sale once each - 14 week for two (2) weeks in the South Bend Tribune and Tri- County News and a summary notice one time in The Indianapolis Commercial and The Bond Buyer, the last publication to be least seven (7) days prior to the date fixed for said sale. The bond sale notice shall state the time and place of sale, the character and amount of the bonds, the maximum interest rate, the terms and conditions upon which bids shall 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. Said notice shall provide, among other things, that each bid shall be accompanied by a certified or cashier's check in the amount of two per cent (2%) of the par value of the bonds, to guarantee performance on the part of the bidder, and that in the event the successful bidder shall fail or re- fuse to accept delivery of the bonds and pay for the same as soon as the bonds are ready for delivery, or at the time fixed in the notice of sale, then said check and the proceeds there- of shall be the property of the City and shall be considered as its liquidated damages on account of such default; also, that bidders for said bonds will be required to name the rate or rates of interest which the bonds are to bear and that such interest rate or rates shall be in multiples of one - fourth (1/4) or one -tenth (1 /10) of one per cent (1%); also that the opinion of Ice Miller Donadio & Ryan, bond counsel of Indian- apolis, Indiana, approving the legality of said bonds, will be furnished to the purchaser at the expense of the City, and that no conditional bids will be considered. The bonds shall be awarded by the City Controller to the highest qualified bidder who has submitted his bid in accord- - 15 - ance 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. The right to reject any and all bids shall be reserved. The City Control- ler shall be authorized to continue the sale from day to day for a period of thirty (30) days without readvertisement; pro- vided, however, that if the sale be continued no bid shall be accepted which is lower than the highest bid received at the time fixed for said sale in the bond sale notice. Sec. 8. The accrued interest and the premium received at the time of the delivery of the bonds, if any, together with such amount of the proceeds of the bonds as shall equal the interest accruing on the bonds for a period of eighteen (18) months following delivery of the bonds, shall be depos- ited in the Parking Sinking Fund - Project 1969 hereinafter created. The remaining proceeds from the sale of said bonds shall be deposited in a bank or banks which are legally desig- nated depositories for the funds of the City, in a special account or accounts, separate and apart from all other bank accounts of the City, to be designated as "City of South Bend, 1969 Project Parking Facilities Acquisition and Con- struction Account." All funds deposited to the credit of said acquisition and construction account shall be depos- ited, held and secured in accordance with the laws of the State of Indiana relating to the depositing, holding and securing of public funds, subject to the provision for in- vestment hereinafter provided in this section. The moneys in said special account or accounts shall be expended only - 16 - for the purpose of paying the cost of said Project 1969 park- ing facilities or as otherwise required by said Act and this ordinance. Any balance or balances remaining unexpended in such special account or accounts within ninety (90) days after completion of the facilities which are not required to meet unpaid obligations incurred in connection with such construc- tion shall be paid into the Parking Sinking Fund - Project 1969, and shall be used solely for the purposes of said fund. Subject to the approval of the Board of Public Works and Safety, the proper officer of the City is hereby authorized to invest in direct obligations of the United States Govern- ment such portion of the funds in said acquisition and con- struction account as shall not be required for immediate use, provided that no such investment shall be made at a cost in excess of the par value of the securities purchased, and that none of the funds shall be invested in any securities the ma- turity 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 investment shall be made only in securities having a maturity date of one (1) year or less from the date of purchase. Such investment shall be made in strict accord- ance with the provisions of Chapter 9 of the Acts of the Indi- ana General Assembly for the year 1945, as amended, and any interest or other accretions derived from any such investments shall become a part of the funds invested. Sec. 9. The income and revenues of off - street parking Project 1969 shall be set aside and deposited daily as re- ceived in a separate and special fund to be designated as "Parking Fund - Project 1969" (herein called the "Parking - 17 - Fund "). The moneys in said fund shall be kept on deposit in legally designated depositories for funds of the City, in an account separate and apart from all other bank ac- counts of the City, and shall be continuously held and se- cured as provided by the laws of the State of Indiana re- lating to the depositing, securing and holding of public funds. In no event shall any of the revenues or funds of said facilities be transferred or used for any purpose not authorized by this ordinance, or reasonably implied by the provisions thereof, so long as there are outstanding any bonds payable out of the income and revenues of the facili- ties. The City Controller shall be the custodian of all funds received or derived from the operation of said Proj- ect 1969 facilities, and all checks or warrants payable out of said funds shall be signed by the City Controller. The City Controller shall be authorized to make the transfers to the various funds and accounts herein provided for and to apply the funds in the Parking Sinking Fund - Project 1969 to the payment of the interest on and principal of the bonds payable from the revenues of the facilities without further order or direction. Sec. 10. The Parking Fund shall be divided into two accounts, viz., the Operation and Maintenance Account - Project 1969, and the Net Revenue Account - Project 1969 (herein called "Operation and Maintenance Account" and "Net Revenue Account" respectively). All income and reve- nues received in the Parking Fund shall as received be cred- ited to such accounts in the following order: there shall be credited to the Operation and Maintenance Account as of the first business day of each calendar month an amount, which, together with the unexpended balance remaining therein, is equal to the estimated reasonable expenses of operation, main- tenance and repair for the then current month and the then next succeeding calendar month. The reasonable expenses of operation, maintenance and repair shall include, but not be limited to, salaries, wages, cost of materials and supplies, purchase of power for light; also, paying agency fees on bonds, insurance premiums, the reports provided for in this ordinance, and the monthly pro -rata portion of other similar costs nor- mally paid on a quarterly, semi- annual, annual or quadrennial basis; provided, however, that such expenses shall exclude the cost of replacements, additions, extensions, improvements or other capital items, depreciation, and any general administra- tive expenses of the City. There shall be credited to the Net Revenue Account all remaining income and revenues derived from the Project 1969 off-street parking facilities after meeting the requirements of the Operation and Maintenance Account. Sec. 11. There is hereby created a fund to be desig- nated as "Parking Sinking Fund - Project 1969" (herein called the "Parking Sinking Fund "), which fund shall, subject to the provisions hereinafter provided for investment, be kept on de- posit in legally designated depositories for funds of the City in an account separate and apart from all other bank accounts of the City and shall be continuously held and secured, or invested, in accordance with the laws of the State of Indiana relating to the depositing, holding and securing, or investing of public funds. Said Parking Sinking Fund shall be divided into two accounts, viz., Bond and Interest Account - Project 1969, and Term Bond Redemption Account - Project 1969 (here- in called "Bond and Interest Account" and "Term Bond Redemp- - 19 - tion Account" respectively), and the funds in said Parking Sinking Fund shall be credited to such accounts in the fol- lowing manner: (a) Bond and Interest Account. Upon delivery of the bonds herein authorized, the accrued interest and premium, together with such amount of the proceeds of the bonds as shall equal the interest accruing on the bonds for a peri- od of eighteen (18) months following delivery of the bonds, shall, as provided in Sec. 8 hereof, be credited to the Bond and Interest Account. Beginning January 1, 1971, there shall be withdrawn as of the first calendar day of each month from the Net Revenue Account of the Parking Fund and deposited in the Parking Sinking Fund and credited to the Bond and Inter- est Account an amount equal to the sum of not less than one fifth (1/5) of the interest payable on the then next succeed- ing interest payment date and one -tenth (1 /10) of the prin- cipal payable on the then next succeeding principal payment date on all then outstanding bonds until the amount of in- terest and principal payable on the then next succeeding respective principal and interest payment dates shall have been so credited; provided, however, that beginning January 1, 1984, said monthly credits to the Bond and Interest Ac- count shall be in an amount equal to not less than one - fifth (1/5) of the interest payable on the then outstanding bonds payable on the then next succeeding interest payment date and shall continue until the amount of interest payable on the then next succeeding interest payment date shall have:. been credited to said account. (b) Term Bond Redemption Account. On the first day of each calendar month, beginning as of the first day-of - 20 - the calendar month succeeding the delivery of the bonds herein authorized, sufficient sums in the Net Revenue Ac- count, after meeting the requirements of the Bond and In- terest Account, shall be withdrawn and deposited in the Parking Sinking Fund to the credit of the Term Bond Redemp- tion Account, and it is hereby determined that the total of such monthly credits in each year shall aggregate not less than the following amounts for the following years: Year End Sum Year End Sum Year End Sum Dec. 31 Per Year Dec. 31 Per Year Dec. 31 Per Year 1969 $ 25,000 1987 $115,000 1993 $145,000 1970 200,000 1988 120,000 1994 155,000 1971 -83 50,000 1989 125,000 1995 1651000 1984 100,000 1990 130,000 1996 175,000 1985 105,000 1991 135,000 1997 190,000 1986 110,000 1992 140,000 1998 220,000 1999 235,000 Said monthly credits for the particular year shall be as near- ly equal in amount as possible. Whenever the balance remaining in the Bond and Interest Account plus the balance in the Term Bond Redemption Account is equal to the amount of principal of bonds then outstanding plus the premium at the next call date and the amount of in- terest to become due at the next call date, then no further deposits need to be made to said Term Bond Redemption Account, provided the then outstanding bonds are so called for redemp- tion on such call date. The Council hereby recognizes that in order to assure prompt payment and to avoid default on the bonds maturing January 1, 2000, provision for the payment of such principal must be made annually by setting aside the above credits, and that portions of such bonds need to be redeemed from time to time prior to maturity by the use of moneys accumulated by - 21 - such credits in order to retire said bonds and to reduce the interest on unpaid outstanding bonds. The Council hereby de- termines and agrees that any balance remaining at any time in the Term Bond Redemption Account resulting from such an- nual credits shall, insofar as the pledge of on- street meter revenues as hereinafter provided is concerned, be deemed to constitute a minimum balance equal to the sum of the interest on the then outstanding bonds payable during the twelve (12). months then next succeeding and the principal requirements of the then outstanding bonds the payment of which needs to be provided for during the twelve (12) months then next succeed- ing. During the time and to the extent that any such balance exceeds such minimum balance there shall not be deemed to be a deficiency in any of such deposits as hereinafter provided to be made up from unobligated net revenues from on- street parking meters. The City hereby pledges all of the unobligated net reve- nues derived from on- street parking meters received on and after July 1,1969, to the extent required, to make up any deficiencies in such annual deposits from the Net Revenue Account to the Parking Sinking Fund and credited to the Term Bond Redemption Account. The phrase "unobligated net reve- nues derived from on- street parking meters," as used in this ordinance, shall be construed to mean the gross revenues re- ceived by the City from the operation of on- street parking meters after deduction only for the reasonable expense of operation, maintenance and repair of the on- street meters owned and operated by the City, not including the purchase price of any additional meters acquired; provided, that the City reserves the right to acquire additional meters from 22 time to time and pledge a portion of the revenues collected from such additional meters to the payment of the purchase price thereof. Beginning January 1, 1984,. whenever the balance in the Term Bond Redemption Account is in excess of an amount equal to the interest which will be payable during the two (2) cal- endar years on the bonds which will be outstanding after the next subsequent date on which the bonds are called for redemp- tion, such excess over such balance, to the extent possible, may be used to purchase bonds maturing January 1, 2000, at a price not exceeding the then applicable redemption price, or if such bonds are not then callable, at a price not exceeding the next applicable redemption price, and if not so used, shall be used on and after January 1, 1984, to redeem bonds matur- ing January 1, 2000, by call at the then applicable redemption price. No bond shall be purchased, however, less than forty (40) days prior to an interest payment date on which bonds may be called for redemption. Any funds credited to the Term Bond Redemption Account shall be transferred to and credited to the Bond and Interest Account if necessary to prevent a default in the payment of principal of and interest on the bonds issued pursuant to this ordinance. Sec. 12. There is hereby created a fund to be desig- nated as "Parking Replacement and Improvement Fund - Project 1969" (herein called the "Replacement and Improvement Fund "), which fund shall be maintained as a separate bank account apart from all other bank accounts of the City and the moneys there- in shall be deposited, held and secured, or invested in accord- ance with the laws of the State of Indiana relating to the de- - 23 Positing, holding and securing, or investing of public funds including particularly Chapter 9 of the Acts of 1945, as amended. Any residual revenues of the Project 1969 off - street parking facilities remaining after meeting the foregoing re- quirements of the Parking Fund and Parking Sinking Fund shall be deposited in said Replacement and Improvement Fund and, to- gether with any other funds from other sources which may from time to time be made available by the 'City, may be used to pay the cost of extraordinary repairs, replacements, additions, extensions and improvements to the Project 1969 facilities or any other legal obligations of the Project 1969 facilities; provided, however, that any moneys in said Replacement and Improvement Fund shall be transferred to the Parking Sinking Fund to the extent needed to make up any deficiencies in the credits to the accounts thereof. Sec. 13. Subject to the approval of the Board of Public Works and Safety, the proper officer of the City is hereby au- thorized to invest in direct obligations of the United States Government, or obligations of instrumentalities and agencies thereof which are fully guaranteed by the United States of America, such portion of the funds in said Parking Sinking Fund, and the accounts thereof, and the Replacement and Im- provement Fund as shall not be required for immediate use, provided that no such investment shall be made at a cost in excess of the par value of the securities purchased, and that none of the funds shall be invested in any securities the ma- turity date of which is later than the time when such funds are required to be available for the purposes thereof, which in the case of the Term Bond Redemption Account shall be not to exceed five (5) years from the date of such investment, - 24 - or if the time when such funds will be required for use can- not be determined, such investment shall be made only in se- curities having a maturity date of one (1) year or less from the date of purchase. Such investment shall be made in strict accordance with the provisions of Chapter 9 of the Acts of the Indiana General Assembly for the year 1945, as amended, and any interest or other accretions derived from any such invest- ments shall become a part of the respective accounts of said Parking Sinking Fund, or Replacement and Improvement Fund, as the case may be, so invested. Sec. 14. The City shall cause to be prepared and dis- tributed quarterly construction progress reports, certified by the architect or engineer in charge of construction of the Project 1969 parking facilities, to the original purchas- er of the bonds, and to any bondholder who requests the same, setting forth the amount of dollars expended to date of the report, the percentage completion of each parking facility in the Project 1969, and the scheduled date of completion of each. The City shall keep proper books of record and account, separate from all of its other records and accounts, in which complete and correct entries shall be made showing all income and revenues derived from the operation of said Project 1969 parking facilities and all disbursements made therefrom on account of the operation of the facilities and all other fi- nancial transactions relating to the facilities. There shall be prepared and furnished to the original purchaser of the bonds and, upon written request, to any holder or holders of outstanding bonds, not more than ninety (9.0) days after the close of each calendar year, an annual statement containing operating and income statements and balance sheets of the - 25 - facilities and the on- street parking operations in reason- able detail, covering the preceding calendar year, and a statement of the amounts transferred and credited to the Parking Sinking Fund, and the accounts thereof, and the cash balances therein and in the Parking Fund and Replace- ment and Improvement Fund as of the end of such calendar year; also, including a statement of the number of parking spaces in the facilities, the number of on- street parking meters, and any changes in off- street and on- street parking rates and charges, as of the end of such calendar year, which annual statement shall be certified by the City Controller or by the person charged with the duty of auditing the books and records relating to the facilities. Annually in each year after completion of Project 1969 until January 1, 1974, and once every four (4) years thereafter, the City shall employ nationally recognized parking consultants to review the opera- tion of the City's off - street parking facilities and the opera- tion and administration of the on- street parking meter system. Said review shall include, but not be limited to, the adequa- cy of rates and charges and enforcement for the effective con- trol of traffic and to meet financial requirements and as to the location and mode of operation of the foregoing. Said re- view shall be embodied in a written report including the con- sultants' comments and recommendations which shall be filed and maintained in the office of the City Controller, and a copy thereof shall be furnished to the original purchaser of the bonds, and, upon written request, to any holder or holders of outstanding bonds. The cost of such review and report shall be considered a maintenance and operation expense. Copies of all such statements and balance sheets and other reports relating to - 26 - said Project 1969 shall be kept on file in the office of the City Controller, and the original purchaser of the bonds, or any bondholder, shall have the right at all reasonable times to inspect the facilities and all records, accounts and data of the City relating thereto. Such inspections may be made personally or by representatives duly authorized by written instrument. Sec. 15. The City shall, to the fullest extent permit- ted by law, establish, maintain and collect reasonable charges for the services afforded by said Project 1969 parking facili- ties which, together with the on- street parking revenues pledged by the City to the Parking Sinking Fund - Project 1969, will provide revenues sufficient to pay the reasonable and proper cost of operation, maintenance and repair of the facilities, to pay the principal of and interest on all bonds payable from the revenues of the facilities as the same become due, and to maintain the Parking Sinking Fund - Project 1969 at the minimum level herein provided. So long as any of the bonds herein authorized are outstanding, none of the serv- ices afforded by said facilities shall be furnished without a reasonable charge being made therefor, and such charge shall be made for any service rendered to the City or any department, agency or instrumentality thereof, and shall be charged against the City and paid for as the charges accrue. Sec. 16. For the purpose of further safeguarding the interests of the holders of the bonds, it is specifically pro- vided as follows: (a) All contracts to be let for the construction of said facilities shall be let after due advertisement as required by the laws of the State of Indiana, and all contractors shall be - 27 - required to furnish surety bonds in an amount equal to one hun- dred per cent (100 %) of the amount of such contracts to insure the completion of such contracts in accordance with their terms, and contractors shall be required to carry such employers' lia- bility, public liability and other insurance as required under the laws of the State of Indiana. (b) All construction shall be contracted for and per- formed under the supervision of qualified architects or engi- neers. All estimates for work done and material furnished in connection with such construction shall first be checked and approved by such engineers prior to approval by the Board of Public Works and Safety for payment. No change orders shall be authorized or approved which would cause completion of said Project 1969 parking facilities to be delayed beyond December 31, 1970. (c) The City shall at all times maintain the facilities and its on- street parking meters in good condition and oper- ate the same in an efficient manner and at a reasonable cost. (d) To the extent that the City owns, leases, or in any manner controls the revenues from any additional off- street parking facilities, rates and charges for parking at such ad- ditional facilities shall be set at such a level as will not materially reduce the revenues of the Project 1969 facilities. (e) The Board of Public Works and Safety, subject to the approval of the Common Council, shall establish regula- tions governing the use and operation of the facilities so as to promote the maximum use thereof by the public in a safe, orderly and efficient manner, prior to the opening of said facilities for operation. (f) So long as any bonds payable from the revenues of said Project 1969 are outstanding, the City shall carry in- surance on said facilities of the kinds and in the amounts which are usually carried by private parties operating simi- lar projects, including fire and public liability insurance, and all additional insurance covering such risks as shall be found necessary or advisable by the Board of Public Works and Safety, including particularly business interruption insurance covering loss of revenue by reason of necessary interruption, total or partial, in the use of the Project 1969 off - street parking facilities resulting from direct physical loss or damage to such facilities, caused by any of the risks custom- arily insured against in such policies of insurance, in an amount equal to the estimated gross revenues for the next two (2) succeeding calendar years; provided that such insur- ance may exclude loss sustained by the City during the first seven (7) days of any total or partial interruption of use; and provided further, that if the City at any time shall be unable to obtain or maintain such business interruption in- surance to the extent above required, either as to the amount of such insurance or as to the risks covered thereby, it will not constitute a default in the performance of the covenants in this ordinance if the City shall carry such insurance to the extent reasonably obtainable. All moneys received for loss under such insurance policies except business interrup- tion insurance shall be used in making good the loss or dam - age, and all moneys received for loss under business inter- ruption insurance policies shall be treated as revenues of the Project 1969 off- street parking facilities. The payment of premiums for all insurance herein required shall be con- sidered a maintenance and operation expense. (g) So long as any bonds payable from the revenues of off- street parking facilities - Project 1969 are outstanding, - 29 - the City shall not mortgage, pledge or hypothecate the facili- ties or any part thereof, and shall not sell, lease or other- wise dispose of any portion thereof, except such equipment which may become worn out or obsolete and shall be replaced. (h) So long as any of the bonds authorized by this ordi- nance are outstanding, no additional bonds or other obligations pledging any portion of the revenues of Project 1969 parking facilities shall be issued by the City unless the same be made subordinate and junior in all respects to the bonds authorized by this ordinance, unless all of the bonds authorized by this ordinance are redeemed and cancelled coincidentally with the delivery of such additional bonds or other obligations. (i) The provisions of this ordinance shall constitute a contract by and between the City and the holders of the bonds herein authorized, all of the terms of which :shall be enforceable at law or in equity, and after the issuance of said bonds this ordinance shall not be repealed or amended in any way .which will adversely affect the rights and inter- ests of the holders of said bonds; nor shall the Common Coun- cil of the City adopt any law, ordinance or resolution in any way adversely affecting the rights of such holders so long as any of said bonds or the interest thereon remain unpaid. The holders of said bonds shall have all of the rights, remedies and privileges either expressly set forth in the provisions of Chapter 190 of the Acts of the Indiana General Assembly for the year 1955, and the acts supplemental thereto, or implied therein, including the right to compel the collection of suf- ficient rates and charges to provide for the payment of the interest on and principal of the bonds authorized by this or- dinance or the transfer of sufficient revenues derived from - 30 - the operation of on- street parking meters for that purpose; also, in the event of any default in the payment of interest or principal of the bonds, in accordance with the terms there- of, to have a receiver appointed to administer the facilities and collect and apply the revenues thereof in accordance with the provisions of the governing Act and this ordinance. (j) None of the provisions of this ordinance shall be construed as requiring the expenditure of any funds of the City derived from any source other than the proceeds of the bonds authorized by this ordinance, the revenues derived from the operation of said Project 1969 parking facilities, and the unobligated net revenues derived from the operation of on- street parking meters. Sec. 17. Subject to the terms and provisions contained in this section, and not otherwise, the holders of not less than sixty -six and two - thirds per cent (66 -2/3 %) in aggre- gate principal amount of the bonds issued pursuant to this ordinance and then outstanding shall have the right from time to time, anything contained in this ordinance to the contrary notwithstanding, to consent to and approve the adoption by the Common Council of the City of South Bend of such ordinance or ordinances supplemental hereto, as shall be deemed necessary or desirable by the City of South Bend for the purpose of modifying, altering, amending, adding to or rescinding in any particular any of the terms or provisions contained in this ordinance, or in any supplemental ordinance; provided, however, that nothing herein contained shall permit or be con- strued as permitting: (a) An extension of the maturity of the principal of or interest on any bond issued pur- - 31 suant to this ordinance; or (b) A reduction in the principal amount of any bond or the redemption premium or the rate of interest thereon; or (c) The creation of a lien upon or a pledge of the revenues of the Project 1969 off- street parking facilities ranking prior to the pledge thereof created by this ordinance; or (d) A preference or priority of any bond or bonds issued pursuant to this ordinance over any other bond or bonds issued pursuant to the provi- sions of this ordinance; or (e.) A reduction in the aggregate principal amount of the bonds required for consent to such supplemental ordinance. The holders of not less than sixty -six and two- thirds per cent (6.6- 2/3 %), in aggregate principal amount of the bonds outstand- ing at the time of adoption of such supplemental ordinance shall have consented to and approved the adoption thereof by written instrument to be maintained on file in the office of the City Controller of the City of South Bend. No holder of any bond issued pursuant to this ordinance shall have any right to ob- ject to the adoption of such supplemental ordinance or to ob- ject to any of the terms and provisions contained therein or the operation thereof, or in any manner to question the pro- priety of the adoption thereof, or to enjoin or restrain the Common Council of the City of South Bend from adopting the same, or from taking any action pursuant to the provisions thereof. Upon the adoption of any supplemental ordinance pursuant to the provisions of this section, this ordinance - 32 - shall be, and shall be deemed, modified and amended in accord- ance therewith, and the respective rights, duties and obliga- tions under this ordinance of the City of South Bend and all holders of bonds issued pursuant to the provisions of this ordinance then outstanding,.shall thereafter be determined exercised and enforced in accordance with this ordinance,, subject in all respects to such modifications and amendments. Notwithstanding anything contained in the foregoing provisions of this ordinance, the rights and obligations of the City and of the holders of the bonds authorized by this ordinance, and the terms and provisions of the bonds and this ordinance, or any supplemental ordinance, may be modified or altered in any respect with the consent of the City of South Bend and the consent of the holders of all the bonds issued pursuant to this ordinance then outstanding. Sec. 18. All ordinances and parts of ordinances in con- flict herewith are hereby repealed. Sec:. 19. This ordinance shall be in full force and ef- fect from and after its passage. - 33 A�. . Passed and adopted by the Common Council of the City. of South Bend on the '. 9th day of JAI 1969. Attest:. ' / City Clerk 61 Presented by me to the Mayor of the City of South Bend on the '10th day of June. , 1969, at the hour of 1:00 p.m. .M. City Clerk This ordinance approved and signed by me on the day of t ,,Z 1969, at the hour of J0 fl-.M. Mayor 1st & 2nd READING 5 -26 -69 COMMITTEE OF THE WHOLE 6 -9 -69 PUBLIC HEARING 6 -9 -69 3rd READIP!!. 6 -9 -69 1T prrrtuvc. FERRED SSED 6 -9 -69 - 34 - (ImltlImuttr Irport June 9, 1969 Mo At (Commit (foundl of tilt pCltg of #a# fknd: Your Committee of the Whole to whom was referred An Ordinance of the City of South Bend con- cerning the ,purchase of land and the con- struction, maintenance, operation and financ- ing of off - street ,parking facilities thereon, the issuance of revenue bonds to ,provide the cost thereof, the collection, segregation and distribution of the revenues of said ,project, the safeguarding of the interests of the hold- ers of said bonds, and other matters connected therewith. Respectfully report that they have examined the matter and that in their opinion said Ordinance should be amended as follows: In Section 2, page 5, 8th line, strike out the words and figures "seven per cent (7%)" and insert in lieu thereof the words and figures "seven and one -half per cent (7- 1/2%)" In Section 16, page 28, strike out all of subparagraph (d) and insert in lieu thereof the following: "(d) To the extent that the City owns, leases, or in any manner controls the revenues from any additional off - street parking facilities, rates and charges for .parking at such additional facilities shall be set at such a level as will not materially reduce the revenues of the Project 1969 facilities." and that the Ordinance go to the Council favorable, as