HomeMy WebLinkAboutOrdinance concerning the Construction and Operation of Sewage Treatment Works, the Issuance of Revenue BondsORDINANCE No._ 3959
Passed by the Common Council of the City of South Bend,
FEBRIIARY 5T$ 19,)4
Presented by me to the Mayor of the City of South Bend,
RIIARY 9TH 1�¢
Clerk
of Common Council
Clerk
Approved and signed by mP FaRanaav gTg
z9 §4
'4910-7
ORDINANCE NO.
An Ordinance concerning the construction
and operation by the City of South Bend,
Indiana, of sewage treatment works, the
issuance of 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 Common Council of the City of South Bend,
Indiana, now finds that the Stream Pollution Control Board of
the State of Indiana, acting under the provisions of Chapter
214 of the Acts of 1943, issued a final order on the 14th day
of December, 1945, to cease polluting the streams and water
courses in and about said City, and to provide sewage treatment
works sufficient to correct or abate such pollution; that there-
after plans, specifications and estimates were prepared and
filed by the engineers employed by the City for the necessary
sewage treatment works, which plans and specifications have been
approved 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 by the adoption of
Ordinance No. 3951 on the 14th day of December, 19531 the Council
approved said plans, specifications and estimates and determined
to establish, construct, equip, own, operate and maintain the
sewage treatment works, together with intercepting sewers,
river crossings, lift stations and appurtenances thereto,
provided for therein, under and pursuant to the provisions of
Chapter 61 of the Acts of the Indiana General Assembly for the
year 1932 (Special Session), and the Acts amendatory thereof and
supplemental thereto-, and-determined to finance the cost of such
works by the issuance of revenue bonds under the provisions of
said Act, the amount, terms and conditions of such bonds to be
subsequently determined by the Council; that said Ordinance set
out an estimate of the rates to be charged for the several classes
of users or property to be served, but that said estimate of rates
should now be revised, and
WHEREAS, the Common Council further finds that said Ordinance
also authorized the Board of Public Works and Safety to receive
bids for the construction of said works; that bids for construction
of said works have been received, and on the basis of said bids
the cost of said works, as defined in Section 7 of the governing
act, will be in the amount of Eight Million Five Hundred Thousand
Dollars ($8,500,000.00); that all conditions precedent to the
adoption of an Ordinance authorizing the issuance of revenue bonds
to provide the necessary funds to pay the cost of such works have
been complied with in accordance with the provisions of the govern-
ing statute; now therefore
BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA:
Section 1. That the Board of Public Works and Safety be,
and it is hereby, authorized and directed to proceed with the
construction of said sewage treatment works together with
intercepting sewers, river crossings, lift stations and appur-
tenances thereto, in accordance with the plans and specifications
heretofore prepared and filed by Consoer, Townsend & Associates,
Consulting Engineers employed by the City, which plans and speci-
fications are by reference made a part of this Ordinance as fully
as if the same were attached hereto and incorporated herein,
also to acquire the necessary property therefore; that the cost
of construction of said works and the acquisition of the necessary
property therefore shall not exceed the sum of Eight Million Five
Hundred Thousand Dollars ($8,500,000.00). The terms "sewage
�1
treatment works ", "works" and other like terms where used in this
ordinance shall be construed to mean and include all structures,
intercepting sewers, river crossings, lift stations, and such
other equipment and appurtenances as may be necessary, and all
easements and property. Said works shall be constructed and the
bonds herein authorized shall be issued pursuant to and in accord-
ance with the provisions of Chapter 61 of the Acts of the Indiana
General Assembly for the year 1932 (Special Session), and all acts
amendatory thereof and supplemental thereto, hereinafter sometimes
referred to as the "Act ".
Section 2. The City of South Bend shall issue its sewage
works revenue bonds in the amount of Eight Million Five Hundred
Thousand Dollars, ($8,500,000.00) for the purpose of procuring
funds to be applied on the cost of said works, as defined in
Section 7 of said Act.
Said bonds shall be issued in the denomination of One
Thousand Dollars ($1,000.00), numbered consecutively from One (1)
to Eight Thousand Five Hundred (8,500) inclusive, dated as of
April 1, 1954, and shall bear interest at a rate or rates not
exceeding Four per cent (41,) per annum (the exact rate or rates
to be determined by bidding), payable on the 1st day of April
and October of each year, beginning on October 1, 1954. Such
interest 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 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 in the amounts and on the
dates as follows:
3
MATURITY DATE
April
11
1957
April
1,
1958
April
12
1959
April
11
1960
April
11
1961
April
19
1962
April
17
1963
April
1,
1964
April 1, 1965
April 1, 1966
April 1, 1967
April 1, 1968
April 1, 1969
April 1, 1970
April 1, 1971
April 1, 1972
April 1, 1973
April 11 1974
April 1, 1975
April 1, 1976
April 1, 1977
April 1, 1978
April 11 1979
April 1, 1980
April 1, 1981
April 1, 1982
April 1, 1983
April 1, 1984
AMOUNT
$80,000
85,000
90,000
95,000
95,000
100,000
105,000
110,000
115,000
120,000
125,000
130,000
135,000
140,000
145,000
150,000
155,000
165,000
170,000
175,000
185,000
190,000
200,000
205,000
215,000
MATURITY DATE
October 11 1956
October 1, 1957
October 11 1958
October 1, 1959
October 11 1960
October 11 1961
October 11 1962
October 1, 1963
October 1, 1964
October 1, 1965
October 1, 1966
October 11 1967
October 1, 1968
October 1, 1969
October 11 1970
October 11 1971
October 11 1972
October 1, 1973
October 11 1974
October 1, 1975
October 1, 1976
October 1, 1977
October 11 1978
October 1, 1979
October 1, 1980
October 1, 1981
220,000 October 11 1982
230,000 October 1, 1983
2403000 October 1, 1984
4
AMOUNT
$80,000
8 5, 000
90,000
90,000
95,000
100,000
105,000
105,000
110,000
115,000
120,000
125,000
130,000
135,000
140,000
145,000
155,000
160,000
165,000
170,000
180,000
185,000
195,000
200,000
210,000
220,000
230,000
240,000
250,000
Section 3. The bonds of this issue maturing on April 11
1960 and thereafter, shall be redeemable at the option of the
City in whole or in part, on October 11 1959, or at any interest
payment date thereafter, in their inverse numerical order, at'
face value, together with the following premiums:
4% if redeemed on October 11 19592
or thereafter on or before April 11 1965;
3% if redeemed on October 11 1965,
or thereafter on or before April 11 1971;
2% if redeemed on October 19 19712
or thereafter on or before April 12 1977;
1% if redeemed on October 12 1977,
or thereafter prior to maturity;
plus in each case accrued interest to the date fixed for redemption.
Notice of such redemption shall be published at least one (1) time
in a newspaper or financial journal of general circulation pub-
lished in each of the following named cities: South Bend, Indiana;
Chicago, Illinois; and New York, New York. Such publication shall
be not less than 30 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 records of the City. The notice
shall specify the date and place of redemption, and the serial
numbers of the bonds called for redemption. The place of redemption
may be as determined by the City. Interest on the bonds so called
for redemption shall cease on the redemption date of said notice,
if sufficient funds are available at the place of redemption to
pay the redemption price on the date so named, or thereafter when
said bonds shall be presented for redemption.
Section 4. Said bonds shall be.signed in the name of the
City of South Bend, by the Mayor, counter- signed 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
'5
0
facsimile signature of the City Controller, and the said o£ficial2
by the signing of said bonds, shall adopt as and for his own
proper signature his facsimile signature appearing on said coupons.
Said bonds shall have all the qualities and incidents of negotiable
instruments under the Negotiable Instruments Law 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, in the City of South Bendt 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 authorized and similarly noted on such bond2 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 registered as before.
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
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 of 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 treatment works of the City of South Bend, includ-
ing the works herein authorized to be acquired and constructed
and all additions and improvements thereto and replacements
thereof subsequently constructed or acquired. The City shall
not be obligated to pay said bonds or the interest thereon
except from the net revenues of said works) and said bonds shall
not constitute an indebtness of the City of South Bend, within
ri
the meaning of the provisions and limitations of the Constitu-
tion of the State of Indiana.
Section 5. The form and tenor of said bonds, the interest
coupons to be attached thereto, and the form of registry endorse-
ment thereon shall be substantially as follows, omitting pro-
visions as to redemption prior to maturity in the case of bonds
not subject to redemption prior to maturity, all blanks to be
filled in properly prior to delivery thereof:
State of Indiana
No.
UNITED STATES OF AMERICA
CITY OF SOUTH BEND
SEWAGE WORKS REVENUE BOND
The City of South Bend, in
for value received hereby
this bond be registered th
out of the special revenue
principal amount of
ONE
County of St. Joseph
$1,000.00
St. Joseph County, State of Indiana,
promises to pay to the bearer, or if
3n to the registered holder, solely
fund hereinafter referred to, the
THOUSAND DOLLARS
on the first day of 19 , (unless this bond
be called for redemption prior to maturity as hereinafter pro-
vided) and to pay interest thereon from the date hereof until
the principal is paid, at the rate of per cent
) per annum, payable on the first days of April and
October of each year, beginning on October 1, 1954, upon pre-
sentation 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 Eight Thousand Five
Hundred (8,500) bonds of the City of South Bend, of like date,
tenor and effect, except as to numbering, interest rate, and
dates of maturity, in the total amount of Eight Million Five
Hundred Thousand Dollars ($8,500 000.00), numbered from One (1)
to Eight Thousand Five Hundred (,500) inclusive, issued for
the purpose of providing funds to pay the cost of sewage treat-
ment works, as authorized by an Ordinance adopted by the Common
Council of the City of South Bend, Indiana, on the
day of 1 1954, entitled 11 An Ordinance con-
cerning the construction and operation by the City of South Bend,
Indiana, of sewage treatment works, the issuance of 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 61 of the Acts of the Indiana General Assembly for
the year 1932 (Special Session) and the acts amendatory thereof
and supplemental thereto.
7
Purauant 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 Sewage Works Sinking Fund
(created by said ordinance) 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
maintenance) of the sewage treatment works of the City of South
Bend, including the works 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 there-
of subsequently constructed or acquired. This bond shall not
constitute an indebtedness of the City of South Bend, within
the meaning of the provisions 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 treatment works to the prompt payment of the
principal and interest of the bonds issued on account of the
construction of said sewage treatment works, of which this is one,
and all bonds on a parity therewith, and covenants that during
the period in which the works are being constructed and prior
to the completion thereof, it will cause to be fixed, maintained
and collected such rates and charges for services to be rendered
by the works in an amount sufficient to meet the interest on the
bonds prior to the completion of the works, and further covenants
that after the completion of the works it will cause to be fixed,
maintained and collected such rates and charges for services
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 payment of the sums required to be
paid into said sinking fund under the provisions of said Act.
In the event the City of South Bend, 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 on or principal of this bond, the holder of this
bond shall have all of the rights and remedies provided for in
said Chapter 61, Acts of 1932 (Special Session), 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 pay-
ment of this bond and the interest thereon.
The City of South Bend 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
this bond and the other bonds of the issue herein referred to,
and all bonds on a parity therewith, as such interest shall fall
due, (b) the necessary fiscal agency charges for paying the bonds
and interest, (c) the principal of this bond and the other bonds
of said issue, and all bonds on a parity therewith, as the same
are payable, 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. Such required payments shall con -
stitute a first charge upon all the net revenues of said works.
If any bond or interest coupon shall not be presented for pay-
ment or redemption 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 or the redemption price
thereof, as the case may be, and thereafter the holder shall
R
look only to the funds so deposited in trust with said bank,, for
payment and the City shall have no further obligation 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
Negotiable Instruments Law of the State of Indiana. This bond may
be registered as to principal at the office of the City Controller
of the City of South Bend, Indiana, in the name of the owner hereof,
and such registration noted hereon by said City Controller. There-
after, 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 negotiabil-
ity of the interest coupons hereto attached by delivery only, but
such interest coupons shall always be payable to bearer.
The bonds of this issue maturing on April 1 1960, and thereafter
shall be redeemable at the option of the City, in whole or in part,
on October 1, 1959, or at any interest payment date thereafter, in
their inverse numerical order, at face value, together with the
following premiums:
1+% if redeemed on October 1, 1959,
or thereafter on or before April 1, 1965;
3% if redeemed on October 1, 1965,
or thereafter on or before April 1, 1971;
2% if redeemed on October 1, 1971,
or thereafter on or before April 1, 1977;
1% if redeemed on October 1, 1977s
or thereafter prior to maturity;
plus in each case accrued interest to the date fixed for redemption.
Notice of such redemption shall be published one time at least thirty
days prior to the date fixed for redemption in a newspaper or finan-
cial journal published in each of the following named cities: South
Bend, Indiana; Chicago, Illinois- and New York, New York. 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 funds are
available at the place of redemption to pay the redemption price on
the date so named or when presented for payment.
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 signed in its corporate
name by its duly elected, qualified and acting Mayor, counter- signed
by its City Controller its corporate seal to be hereunto affixed,
and attested by its dUy elected, qualified and acting City Clerk,
and the interest coupons hereto attached to be executed by placing
thereon the facsimile signature of said City Controller, all as of
the first day of April, 1954.
CITY OF SOUTH BEND,
Attest:
City Clerk
9
By.
Mayor
Counter- signed:
By
City Controller
( INTEREST COUPONS)
Coupon No.
mentioned shall have been called for (unless the bond herein
City f South Bend Indiana will previous redemptioni the
y , , pay to bearer at the First
Bank and Trust Company of South Bend, in said City, 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, Dollars in lawful money
of the United States of America being the interest then due
on its Sewage Works Revenue Bond, dated April 1, 1954, No. .
CITY OF SOUTH BEND
By. (Facsimile)
City Controller
REGISTRATION ENDORSEMENT
This bond can be registered only at the office of the City
Controller of the City of South Bend, Indiana. No writing
hereon except by the City Controller.
Date of Registry In Whose Name Registered City Controller
Section 6. The City Controller is hereby authorized and
directed to have said bonds and coupons prepared, and the Mayor,
City Controller and City Clerk are hereby authorized and directed
to execute said bonds and the interest coupons to be attached
thereto, in the form and manner herein provided. After said bonds
shall have been properly executed, the City Controller shall de-
liver the same to the City Treasurer, and shall take his receipt
therefor, and upon the consummation of the sale of said bonds the
City Controller shall then certify to the Treasurer the amount
which the purchaser is to pay for the same; thereupon said
Treasurer shall be authorized to receive from the purchaser the
amount so certified by the Controller and to deliver the bonds
to such purchaser. At the time of said delivery the City
10
Treasurer 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 of the City's Sewage Treatment 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 acquisition)
construction and installation of said sewage treatment works
hereinbefore referred tog and the expenses necessarily incurred
in connection therewith. The proper officers of the City are
hereby directed 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.
Section 7. Prior to the sale of said bonds2 the City Con-
troller 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$ and one (1)
time in The Bond Buyer, published in the City of New York, and
one (1) time in the Indianapolis Commercial, published in the
City of Indianapolis$ the last publication to be at 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 bonds9 the maximum rate of interest thereon, the
terms and conditions upon which bids will be received 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
Fifty Thousand ($50,000.00) Dollars to guarantee performance on
the part of the bidder, and that in the event the successful
11
bidder shall fail or refuse 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 thereof shall be the property of the City and shall be
considered as its liquidated damages on account of such default;
that the opinion of Ross, McCord, Ice and Miller, bond counsel
of Indianapolis, 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.
Bidders shall be required to name the rate or rates of
interest which the bonds are to bear not exceeding four per cent
()+ %) per annum. Such interest rate or rates shall be in
multiples of one - eighth (1/8) of one per cent (1,%) and not more
than four ()+) different interest rates shall be named by each
bidder. Bids specifying two or more interest rates shall also
specify the amount and maturities of the bonds bearing each rate,
but all bonds maturing on the same date shall bear the same rate.
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. 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 not
to exceed Thirty (30) days, but during such continuation no bid
shall be accepted which is lower than the highest bid offered at
the advertised sale. --
Section 8. The accrued interest received at the time of
the delivery of the bonds, if any, together with such amount of
12
the proceeds of the bonds as shall equal three months interest
requirements on the bonds, shall be deposited in the Sewage
Works Sinking Fund hereinafter created. 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 Fund shall be deposited, held
and secured in accordance with the laws of the State of Indiana
relating to the depositing, holding and securing of public
funds. The funds in said special account or accounts shall be
expended only for the purpose of paying the cost of the works,
as defined in Section 7 of said Chapter 61 of the Acts of 1932,
as amended or as otherwise required by said Act. Any balance
or balances remaining unexpended in such special account or
accounts after completion of the works, which are not required
to meet unpaid obligations incurred in connection with such
construction, shall be paid into the Sewage Works Sinking Fund
and shall be used solely for the purpose of said fund.
Subject to the approval of the Board of Public Works and
Safety, the City Controller shall be authorized to invest in
direct obligations of the United States Government 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 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 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 accordance
13
with the provisions of Chapter 9 of the Acts of the Indiana
General Assembly for the year 1945, and any interest or other
accretions derived from any such investments shall become a
part of the funds invested. The Treasurer of the City shall
be the legal custodian of any such securities acquired, and
upon depositing any such securities with the Treasurer, the
City Controller shall take his receipt therefor. In con-
formity 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.
Section 9. There is hereby created a Sinking Fund for
the payment of the interest on and principal of the revenue
bonds issued on account of the construction of said sewage
treatment works and the payment of any fiscal agency charges
in connection with the payment of the bonds and interest
coupons, which fund shall be designated as "Sewage Works
Sinking Fund." 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, as hereinbefore defined,
for the payment of (a) the interest on the bonds as such
interest shall fall due, (b) the necessary fiscal agency
charges for paying the bonds and interest, (c) the principal
of the bonds as they 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, 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
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 during the next succeeding twelve (12)
14
calendar months, and shall continue until such time as said
funds 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 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 bonds which will mature
within a period of twelve (12) calendar months next following
the date of such redemptions 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 price2
if first approved by the Board of Public Works and Safety.
Monies in said Sinking Fund shall not be used for any other
purpose whatsoever except as stated in this section.
Section 10. In the event all required payments into the
Sewage Works Sinking Fund have been met to date and there has
been accumulated in said fund an amount sufficient to meet the
requirements of said fund for the then next succeeding twelve
(12) calendar months, and funds in an amount sufficient for
operation7 repair and maintenance of the works for a like
period have been accumulated and reserved for that purpose,
then any excess revenues shall be placed in a fund to be designated
as "Sewage Works Depreciation Fund" to the extent and in the
manner hereinafter provided.
Out of such excess revenues there shall be deposited in
said Depreciation Fund on or before the first day of each
calendar month not less than the sum of Three Thousand Dollars
($32000.00)until such time as said Depreciation Fund shall con-
tain the sum of Three Hundred Sixty Thousand Dollars ($360,000.00).
After the accumulation of said amount in said funds no further
deposits need be made therein except to the extent necessary to
15
maintain a minimum balance in said fund of Three Hundred Sixty
Thousand Dollars ($360,000.00). Such further deposits, if any,
shall be made at the rate of not less than Three Thousand Dollars
($3,000.00) per month from such excess revenues until said
minimum balance shall have again been attained. The moneys in
said Depreciation Fund may be expended in making good deprecia-
tion in the works, or to meet unforeseen contingencies in the
repair and maintenance of the works, but no part thereof shall
be expended for additions or extensions to the works unless and
until the amount of the Sewage Works Sinking Fund shall equal
the principal of all outstanding bonds of this issue and the
interest payable thereon to maturity. The City Controller shall,
if needed to prevent a default in the payment of the interest
on or principal of the bonds) transfer to the Sewage Works
Sinking Fund a sufficient amount of the moneys then in said
Depreciation Fund to prevent such default. Any accumulations
in the Depreciation Fund not required for immediate use may be
invested in obligations of the United States Government to the
extent permitted by law, and any income from such investment
shall accrue to the Depreciation Fund.
If all other conditions precedent have been met and the
monthly deposits have been made in the Sewage Works Depreciation
Fund to date, then any excess revenues of the works available
may be placed in a fund to be designated as "Sewage Works
Improvement Fund" and be used to pay the cost of additions
and extensions to the works. No revenues of the works shall
be deposited in or credited to the Sewage Works Depreciation
Fund or Sewage Works Improvement Fund which will interfere with
the requirements of the Sewage Works Sinking Fund or with the
requirements as to reserving funds for the operation$ maintenance
and repair of the works.
Section 11. All revenues derived from the collection of
rates and charges during the construction period and all revenues
16
derived from the operation of the works, when completed and
placed in operation, 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 deposited in said fund) and all disbursements
made therefrom on account of the operation of the works, or to
meet the requirements of the Sewage Works Sinking Fund, also all
other financial transactions relating to said works, including
the amounts set aside or credited to the Sewage Works Deprecia-
tion Fund and Sewage Works Improvement Fundy 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 purchasers of the bonds, and, upon written request2 to
any subsequent holder of the bonds,, not more than Ninety (90)
days after the close of each fiscal year, complete financial
statements of the works, covering the preceding fiscal year,
which annual statements shall be certified by the City Controller
or independent auditors. 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.
Section 12. The City shall, by ordinance of the Common
Council) establish just and equitable rates or charges for the
use of and the service 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 treatment
works by or through any part of the sewage system of the City,
or that in any way uses or is served by such works. Such rates
17
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, and for the payment of the sums
required to be paid into the Sewage Works Sinking Fund by said
governing Act, and for the payment of the sums to be paid into
the Sewage Works Depreciation Fund pursuant to this ordinance.
Such rates or charges shall, if necessary, be changed and re-
adjusted from time to time so that the revenues therefrom shall
always be sufficient to meet the expenses of operation, repair
and maintenance, and the requirements of the Sewage Works Sinking
Fund and Sewage Works Depreciation 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. Provided, however, that during the period
in which the works are being constructed, and prior to the com-
pletion thereof, rates and charges shall be collected for the
service to be rendered by the works in an amount sufficient
to meet the interest on the bonds herein authorized and other
expenses payable prior to the completion of the works.
Section 13. For the purposes of further safeguarding the
interests of the holders of the bonds herein authorized, it is
specifically provided as follows:
(a) All contracts let by the City in connection with
the construction of said sewage treatment 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 (1000
of the amount of such contracts, to insure the completion of
said contracts in accordance with their terms, and such con-
tractors shall also be required to carry such employers'
liability and public liability insurance as are required
under the law 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 supervision
and subject to the approval of Consoer, Townsend & Associates
or such other competent engineer as shall be designated by the
Board of Public Works and Safety. All estimates for work done
or material furnished shall first be checked by the engineer
and approved by the Board of Public Works and Safety.
(c) The City shall at all times maintain its sewage
treatment works in good condition and operate the same in an
efficient manner and at a reasonable cost.
(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 re-
placing or repairing the property 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 thereo£q nor shall it sellq lease or otherwise dispose
of any portion thereof except replaced equipment which may be-
come worn out or obsolete.
(f) So long as any of the bonds herein authorized are
outstandingg no additional bonds or other obligations pledging
any portion of the revenues of said sewage treatment works shall
be authorized, executed or issued by the City except such as
shall be made subordinate and junior in all respects to the
bonds herein authorized2 unless all of the bonds herein
authorized are redeemed and retired coincidently with the delivery
of such additional bonds or other obligations or funds sufficiert
to effect such redemption are available and set aside for that
purpose at the time of issuance of such additional bonds; provided
19
however, the City reserves the right to issue additional bonds
ranking on a parity with the bonds herein authorized and payable
from the Sewage Works Sinking Fund, for the purpose of completing
the works provided for by this ordinance in accordance with the
plans and specifications therefor now on file in the office of the
Board of Public Works, in the event the proceeds derived from the
sale of the bonds authorized by this ordinance are not sufficient
to pay the cost of said works, but only in the event there shall
first be submitted to the Common Council a certificate prepared
by the consulting engineers employed by the City on the sewage
works project, showing the total amount of work completed to date,
the total cost thereof, the total amount of work to be completed,
and the estimated cost of completion thereof, and said certificate
shall be approved by the Common Council and placed on file in the
office of the City Clerk for public inspection.
(g) The City shall take all action 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. The City shall, in so far as
possible, cause all such sanitary sewers to be connected with said
sewage treatment 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 adopt any law,
ordinance or resolution which in any way adversely affect 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
WE
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, includ-
ing the right to have a receiver appointed to administer said
sewage treatment works, in the event of default in the payment of
the principal of or interest on any of the bonds herein authorized
or in the event of default in respect to any of the provisions of
this ordinance or the governing Act.
Section 14. This ordinance shall be in full force and effect
from and after its passage and signing by the Mayor.
Member of Council
1st & 2nd READINO a --,? -'vim"- 7
C`,I TEE OF THE WHOLE"
NSLIC HEARINT
3rd MUD!HS
PLOT AttROVEV
REFERRED FX
a
�� -� - (6- � 7E�