HomeMy WebLinkAboutIssue Revenue Bonds for Waterwork ImprovementsORDINANCE No. 3679
Passed by the Common Council of the City of South Bend, Indiana
DECEMBER 13TH- Ig� 48
Presented by me to the Mayor of the City of South Bend, Ind'ana
DEMSER 14TH. 193/ 48
Approved and signed by
-NM-7
v Clerk
of Common Council
191 -1L
Clerk
ORDINANCE 110. 'J— - '9
An Ordinance concerning the construction of extensions
and additions to the waterworks owned and operated by
the City of South Bend, Indiana, authorizing the issu-
anoe of revenue bonds to. provide for the cost thereof,
and matters connected therewith
WHEREAS, the City of South Bend is the owner of and operates
an unencumbered waterworks furnishing the public water supply to said
City and its inhabitants; and
WHEREAS, the Board of Public Works and Safety, having the manage-
ment of said waterworks, has determined and the Council now finds that
said waterworks is in need of certain extensions and additions, consist-
ing chiefly of additional storage capacity and feeder supply mains,
booster station improvement, and two new wells; that said extensions
and additions are required in order to protect properly the health,
well -being and property of the City and its inhabitants; and
WHEREAS, the Board of Public Yorke and Safety has employed
Charles W. Cole & Son, of South Bend, Indiana, as consulting engineers
to determine the extensions and additions required and the cost thereof,
and has found from the report of said engineers that said cost will
be in the approximate amount of Nine Hundred Fifty Thousand Dollars
($950,000.00), including all incidental expenses necessary to be in-
ourred in connection therewith, and has represented to the Council and
the Council now finds that, subject to the approval of the Public Ser-
vice Commission, funds for said project may be provided by the issuance
and sale of revenue bonds payable solely out of the revenues of said
waterworks and not constitutir4 a general obligation of the City; and
that the revenues of the waterworks are sufficient to provide for the
operation and maintenance thereof, depreciation, and the servicing of
said bonds; now therefore,
BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND:
Section 1. That the City of South Bend (hereinafter sometimes
referred to as the "City "), being the owner of and engaged in operating
unencumbered waterworks supplying the City and its inhabitants with
water for public and domestic use, now provide for certain needed ex-
tensions and additions to such waterworks and the payment for such ex-
tensions and additions from the revenues and receipts of such waterworks
pursuant to and in the manner prescribed in Chapter 155 of the Acts of
1929, and all acts amendatory thereof and supplemental thereto (some-
times hereinafter referred to as the "Act "). The term "waterworks,"
"water system" and "systems" wherever used in this ordinance shall be
construed to mean and include the existing waterworks owned by the City
of South Bend and all extensions, additions and improvements thereto and
replacements thereof now or subsequently constructed or acquired.
See. 2. Said extensions and additions shall include two new
wells, seven million gallon elevated ground storage concrete tank,
addition to booster station, and certain mains designated as "South
Side Main," "Coquillard Supply Main, "' "Pample Street Supply Main,"
and "Northwest Supply Main." The Board of PulRe Works and Safety is
hereby authorized to proceed with the construction and installation
of said extensions and additions, and to enter into all contracts neces-
sary for such purpose in conformity with the provisions of this ordinance
and of said act, subject, however, to the approval of the Public Service
Commission for the making of said extensions and additions and the is-
suance of the required amount of revenue bonds, and that the principal
and interest of the bonds issued on account of such extensions and ad-
ditions shall be paid solely and exclusively from the revenues of said
waterworks system and shall not constitute a general obligation of the
City. The Board of Public Storks and Safety is hereby authorized to
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file a proper petition with the Public Service Commission for the
purpose of securing the required approval of said Commission.
Sec. 3. Beginning as of the date of issuance of the bonds
herein authorized, the income and revenues of the existing waterworks,
together with the income and revenues of all extensions, additions,
Improvements thereto and replacements thereof made pursuant to this
ordinance, or subsequently, shall be set aside into a separate and
special fund to be used and applied in the maintenance and operation
thereof, in establishing a depreciation account, and payment of the
bonds authorized by this ordinance and the interest thereon. The pro-
portion of the gross revenues of said waterworks that shall be paid
into the several accounts of said special fund, as provided by said
Act, is hereby fixed and determined as follows:
(a) Operation and Maintenance Account. Sixty -seven per cent
(67%) of the gross revenues of said waterworks shall be set aside into
the Operation and Maintenance Account and shall be used to pay the neces-
sary cost of the reasonable and proper operation and maintenance o f the
waterworks, including any taxes required to be paid. The sum so set
aside for operation and maintenance shall be applied exclusively to that
purpose until a surplus shall have been accumulated in the Operation and
Maintenance Account which shall be equal to the cost of maintaining and
operating the waterworks during the remainder of the calendar, operating
or fiscal year then current and the cost of maintaining and operating the
waterworks during the calendar, operating or fiscal year then next ensu-
ing. Any excess over such surplus may be transferred to either the De-
preciation Account or the Bond and Interest Redemption Account.
(b) Depreciation Account. Eleven per cent (11'%) of the gross
revenues of said waterworks shall be set aside into the Depreciation Ao-
count and shall be expended in making good depreciation in the waterworks,
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or in new construction, extensions or additions to the property of
the waterworks. Any accumulations in such Depreciation Account not
required for lm diate use may be invested in direct obligations of
the United States Government, and if so invested the income from the
investment shall accrue to the Depreciation Account. Said account
shall not be used for any purpose other than as herein provided.
(c) Bond and Interest Redemption Account. Twenty -two per
cent (22%) of the gross revenues of the waterworks shall, as such
revenues are received, be set apart and paid into a special account
to be identified as the "Bond and Interest Redemption Account," The
funds in said account shall be used solely for the purpose of paying
theinterest on and principal of the bonds issued pursuant to the pro-
visions of this ordinance, to the extent herein required. If and when
a surplus shall be created in said Bond and Interest Redemption Account
which shall be in excess of the interest on and principal of the bonds,
plus ten per went (10%), which are payable during the then current
calendar, operating or fiscal year, together with the amount of inter-
est on and principal of the bonds which will become due and payable dur-
ing the calendar, operating or fiscal year then next ensuing, plus ten
per cent (10%), then any excess over such surplus may be transferred to
either the Operation and Maintenance Account or to the Depreciation Ac-
count. Any such excess over such surplus may be used in the purchase
or redemption of outstanding bonds at a price not exceeding the redemp-
tion prices hereinafter set out. No further payments need be made into
the Bond and Interest Redemption Account when the funds therein equal
or exceed the amount of the principal of the bonds then outstanding
and interest thereon to the maturity date thereof.
All of the funds of said several accounts shall be deposited
in lawful depositories of the City, and shall be continuously held and
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secured as provided by the laws of Indiana relating to the depositing,
securing and holding of public funds. In no event shall any of the
revenues of said waterworks be transferred or used for any purpose not
authorized by this ordinance so long as any of the bonds issued pur-
suant to the provisions of this ordinance shall be outstanding. The
funds derived from the operation of the waterworks, on hand on the date
of issuance of the bonds herein authorized, may be applied on the cost
of the additions and extensions to the'waterworks, in the event such
cost shall exceed the amount now estimated, but if not so used shall
be set aside in and credited to the Operation and Maintenance Account
or the Depreciation Account, as determined by the Board of Public Works
and Safety.
Sec, 4. For the purpose of procuring funds with which to pay
the cost of construction and installation of the extensions and addi-
tions to its waterworks, the City of South Bend shall issue its revenue
bonds under and pursuant to the provisions of this ordinance and said
Act, which bonds shall be payable only out of the special Bond and In-
terest Redemption Account herein provided for, and shall be designated
as "Waterworks Revenue Bonds of 1949.° Said bonds shall be in a prin-
cipal amount not exceeding Wine Hundred Fifty Thousand Dollars ($950,000.00),
in the denomination of One Thousand Dollars ($1,000.00), numbered con-
secutively from 1 up, dated as of March 1, 1949, and shall bear inter-
est at a rate not exceeding three and one -half per cent (3-1/2%) per
annum, the exact rate to be determined by bidding, which interest shall
be payable semi - annually on March 1 and September 1 in each year, beginning
on September 1, 1949, and shall be evidenced by coupons attached to said
bonds. Both bonds and interest coupons shall be payable at the American
Trust Company, in the City of South Bend, Indiana, in lawful money of
the United States of America, and said bonds shall mature serially in
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the amounts and on the dates as follows:
$35,000•00
September
1, 1949
$40,000.00
September 1, 1955
35,000.00
March 1,
1950
..4o,000.00
March 1, 1956
35,000.00
September
1, 1950
45,000.00
September 1, 1956
35,000.00
March 1,
1951
45,000.00
March 1, 1957
35,000.00
September
1, 1951
45,000.00
September 1, 1957
35,000.00
March 1,
1952
45,000.00
March 1, 1958
40,000.00
September
1, 1952
45,000.00
September 1, 1958
40,000.00
March 1,
1953
45,000.00
March 1, 1959
40,000.00
September
1, 1953
45,000.00
September 1, 1959
40,000.00
March 1,
19%
45,000.00
March 1, 1960
40,000.00
September
1, 1954
50,000.00
September 1, 1960
40,000.00
March 1,
1955
10,000.00
March 1, 1961
The bonds of this issue shall be redeemable at the option of the
City, in whole or in part, in inverse numerical order, on any interest
payment .date after issuance, at face value, together with the following
premiums:
6� if redeemed on or before March 1, 1953;
4% if redeemed after March 1, 1953, and on or before
March 1, 1957,
2% if redeemed after March 1, 1957, and prior to maturity;
plus in each case accrued interest to the date fixed for redemption.
Notice of such redemption shall be published at least thirty (30) days
prior to the date fixed for redemption at least one time in a newspaper
or financial journal of general circulation published in the City of In-
dianapolis, Indiana, and a newspaper or financial journal of general cir-
culation published in the City of Chicago, Illinois, and a like notice
shall be sent by mail to the holders of such bonds as are then registered.
The notice shall specify the date and place of redemption and the serial
numbers of the bonds called for redemption. Interest on the bonds so
called for redemption shall cease on the date fixed in said notice,
if funds are available at the place of redemption to redeem the bonds
when presented.
Sec. 5. Said bonds shall be signed in the name of the City by
the Mayor, countersigned by the City Controller, and attested by the
City Clerk, who shall affix the seal of the City to each of said bonds.
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The interest coupons attached to said bonds shall be executed by plac-
ing thereon the facsimile signature of the City Controller, and said
official, by the signing of said bonds, shall adopt as and for his proper
signature his facsimile signature appearing on said coupons. In case
any officer whose signature appears on the bonds and coupons shall cease
to be such officer before the delivery of such bonds, his signature
shall nevertheless be valid and sufficient for all purposes the same
as if such officer had remained in office until such delivery.
Said bonds shall be negotiable by delivery unless registered.
Upon presentation of the bonds at the office of the City Clerk in the
City of South Bend, said City Clerk shall register said bonds without
charge or expense to the holder, as to the prinipal thereof. Such registry
shall be noted on the bond, after which no transfer thereof will be valid
unless made by the registered owner in person or by his attorney duly au-
thorized and similarly noted on the bond, but said bond may be discharged
from registry by being in like manner retransferred to bearer, after which
it shall be transferable by delivery but may be again registered as before.
The registration of any bond shall not affect the negotiability of the in-
terest coupons attached thereto, but such coupons shall continue to pass
by delivery only and shall remain payable to bearer.
Sec. 6. The form and tenor of said bonds and the interest cou-
pons to be attached thereto, together with the form of registry endorse-
ment thereon, shall be substantially as follows, to -wit:
No.
UNITED STATES OF AMERICA
State of Indiana County of St. Joseph
CITY OF SOUTH BEND
WATERWORKS REVENUE BOND OF 1940
$1,000.00
The City of South Bend, in St. Joseph County, State of
Indiana, for value received, hereby promises to pay to bearer
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solely out of the special revenue fund hereinafter referred
to, the principal amount of
a�i ca " ea •..
on the first day of , 19�_ (unless
this bond be called for redemption prior to maturity as
hereinafter provided), and to pay interest thereon from the
date hereof until the principal is paid, at the rate of
per cent ( %) per annum, payable
semi - annually on the first days of March and September in
each year, beginning on 'September 1, 1949, 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 American
Trust Company in the City of South Bend, Indiana.
This bond is one of an authorized issue of nine hundred
fifty.(950) bonds of the City of South Bend, of like date, de-
nomination, tenor and effect, in the total amount of Nine
Hundred Fifty Thousand Dollars ($950,000.00), numbered con-
secutively from 1 to 950 inclusive, issued for the purpose of
providing funds to pay the cost of extensions and additions
to the municipally owned waterworks of said City pursuant to
an ordinance passed by the Common Council of said City on the
day of , 1948, entitled "An Ordi-
nance concerning the construction of extensions and additions
to the waterworks owned and operated by the City of South
Bend, Indiana, authorizing the issuance of revenue bonds to
provide for the cost thereof, and matters connected therewith,"
and in strict compliance with the provisions of the governing
statutes, particularly Chapter 155 of the Acts of the General
Assembly of the State of Indiana for the year 1929, and all
acts amendatory thereof or supplemental thereto.
The principal and interest of this bond and all other
bonds.of said issue are equally and ratably secured by and
constitute a first charge upon twenty -two per cent (22 %) of
the gross income and revenues of said waterworks as_the_same
now exist or may hereafter be improved and extended, which
percentage of such income and revenues is to be deposited
in a special fund to be known as the "Bond and Interest Re-
demption Account" which has been duly,created by said ordi-
nance. The City,shall not be obligated to pay said bonds
or the interest thereon except from said special fund, and
neither this bond nor the issue of which it is a part shall
in any respect constitute a corporate indebtedness of the
City within the provisions and limitations of the constitution
of the State of Indiana.
The bonds of this issue are redeemable at the option of
the City, in whole or in part, in inverse numerical order, on
any interest payment date after issuance, at face value, to-
gether with the following premiums: six per cent (6%) if re-
deemed on or before March 1, 1953; four per cent (4%),if re-
deemed after March 1, 1953, and on or before March 1, 1957;
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two per cent (2 %) if redeemed after March 1, 1957, and
prior to maturity; plus accrued interest to the date of
redemption; provided notice of such redemption shall be
given at least thirty days prior to the date fixed there-
for by one publication in a newspaper or financial journal
of general circulation published in the City of Indianapolis,
Indiana, and a newspaper or financial journal of general
circulation published in the City of Chicago, Illinois,
and a like notice be sent by mail to the holders of such
bonds as are then registered. Interest on the 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 redeem the bonds when presented. The bonds
so redeemed prior to maturity shall be surrendered for can-
cellation, together with unmaturedinterest coupons appur-
tenant thereto.
The.City covenants that it will, to the fullest extent
permitted.by law, fix, maintain and collect an aggregate of
rates and charges for the services rendered by said water-
works which will be sufficient to pay all costs of operation
and maintenance of said waterworks, to provide a proper and
adequate depreciation account, and to create and maintain the
sinking fund required for the payment of this issue of bonds,
and that it will in all other respects faithfully comply with
all of the provisions of the governing statutes pursuant to
which this bond is issued. In the event the City shall make
any default in the payment of the principal of or interest on
this bond, the holder hereof shall have all of the rights and
remedies provided by the governing statutes, including the
right to compel the collection of sufficient rates and charges
to provide for the payment of this bond and the interest hereon.
This bond and all other bonds of said issue shall, in the
hands of bona fide holders, have all of the qualities of nego-
tiable instruments under the law merchant. This bond may be
registered as to principal only in the name of the owner, in
the manner and with the effect provided in said ordinance, but
unless registered shall pass by delivery. The interest coupons
attached hereto shall at all times pass by delivery.
It is hereby certified and recited that all acts, conditions
and things required to be done precedent to and in the execu-
tion, issuance and delivery of this bond have been done and per-
formed in regular and due form as provided by law.
IN WITNEa'S 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, countersigned by its City Controller, its corporate seal
to be hereunto affixed, and attested by its duly elected, quali-
fied and acting City Clerk, and the interest coupons hereto
attached to be executed by placing thereon the facsimile signa-
ture of said City Controller, all as of the first day of
March, 1949.
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Attest:
City Clerk
CITY OF SOUTH BEND
By
Mayor
Countersigned:
City Controller
(Interest Coupon)
Coupon No. $
On 1, - 19 ,
(unless the bond herein mentioned shall have been called
for previous redemption) the City of South Bend, Indiana,
will pay to bearer at the American Trust Company in said
City, out of its waterworks Bond and Interest Redemption
Account Dollars in lawful money of the
United States of America, being the interest then due on
its Waterworks Revenue Bond of 1949, dated March 1, 19490
No.
CITY OF SOUTH BEND
By (Facsimile)
City-,Controller
�u�• s i
This bond can be registered only at the office of
the City Clerk in the City of South Bend, Indiana. No
writing hereon except by the City Clerk.
Date of Registry In Whose Name Registered City Clerk
See. 7. The City Controller is hereby authorized and directed
to have said bonds and coupons prepared, and the Mayor,:City Controller
and City Clerk are hereby authorized and directed to execute said bonds
and the coupons to be attached thereto in the form and manner hereinbe-
fore provided. The City Controller shall sell said bonds at public
sale, prior to the sale of the bonds, the Controller shall cause to be
.published a notice of sale once each week for two weeks in the South
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Bend Tribune and the South Bend Mirror, and one time in a newspaper
published in the City of Indianapolis. The date fixed for the sale
shall not be earlier than seven (7) days after the last of said publi-
cations. The bond sale notice shall state the time and place of sale,
the total amount of bonds, the maximum rate of interest thereon, the
maturities thereof, the purpose for which the bonds are being issued,
the terms and conditions on which bids will be received and the sale
made, and shall set out such other information as the Controller, acting
on the advice of the City Attorney and bond counsel, shall deem neces-
sary.
A11 bids for said bonds shall be sealed and shall be presented
to the Controller at his office. Bidders shall be required to new the
rate of interest which the bonds are to bear, not exceeding three and
one -half per cent (3 -1/2 %) per annum. Such interest rate shall be in
multiples of one- eighth (1/8) of one per cent (1%), and not more than
one interest rate shall be named by each bidder. The Controller shall
award the bonds to the highest gdalified bidder. The highest bidder
shall be the one who offers the lowest interest cost to the City, to be
determined by computing the total interest on all of the bonds to their
maturities and deducting therefrom the premium bid, if any. No bid for
less than the par value of said bonds, including accrued interest to the
date of delivery, shall be considered. The Controller shall have the
right to reject any and all bids, and in the event no satisfactory bids
are received, the Controller shall be authorized to continue the sale
from day to day for a period of thirty (30) days without readvertisement;
provided, however, that if said sale be continued no bid shall be accepted
which is lower than the highest bid received at the time fixed for such
sale in the bond sale notice.
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Prior to the sale of said bonds the Controller shall be authorized
to obtain a legal opinion as to the validity of the bonds from Ross McCord
Ice & Miller, acting as bond counsel for the City, and to furnish such
opinion to the purchasers of the bonds. The fee of such bond counsel
shall be considered as a part of the cost of the project on account of
which said bonds are issued and shall be paid out of the proceeds of
said bonds or out of revenues of the waterworks.
Sec. 8. In the event it shall be hereafter determined that it
is not necessary to issue all of the bonds authorized by this ordinance,
or the Public Service Commission shall not approve the issuance of said
total amount of bonds, the Controller shall be authorized to sell and de-
liver a lesser amount of bonds than herein authorized, in which case the
bonds not sold or delivered shall be of the last maturity or maturities.
The bonds herein authorized, when fully paid for and delivered
to the purchaser, shall be the binding and special revenue obligations
of the City payable out of the income and revenues of the waterworks sys-
tem of said City according to their tenor and effect, and the proceeds de-
rived from the sale of said bonds shall be and are hereby set aside for
the purpose of paying the cost of construction and installation of the
aforesaid extensions and additions to said waterworks and the expenses
necessarily incurred in connection therewith, including the expenses in-
curred in connection with the issuance and sale of the bonds. The proper
officers of the City are hereby directed to draw all proper and necessary
warrants, and to do all acts and things which may be necessary to carry out
the provisions of this ordinance.
Sec. 9. Any accrued interest received at the time of the delivery
of the bonds shall be deposited in the Bond and Interest Redemption Account
hereinbefore created. The remaining proceeds from the sale of the bonds
shall be deposited in a bank or banks which are legally designated and
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qualified depositories for the funds of the City, in a special account
or accounts to be designated as "City of South Bend, Waterworks Construe-
tion Account." Each of such special accounts shall be deposited, secured
and held as provided by the laws relating to the depositing, securing and
holding of public funds, and may be secured in any other lawful manner
agreed upon by the Controller and the purchaser of the bonds. The funds
in such special account or accounts shall be expended only for the pur-
pose of paying the cost of the extensions and additions to said waterworks
as herein authorized, the incidental expenses incurred in connection there-
with and with the issuance of bonds, and for the payment of interest ac-
cruing on the bonds during the period of construction, if required for that
purpose. Any balance or balances remaining unexpended in such special ac-
count or accounts after the completion of the work, which are not required
to meet unpaid obligations incurred in connection with the construction
of the work, shall be deposited in the Bond and Interest Redemption Ac-
count.
Sec. 10. 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
waterworks and deposited in the special accounts hereinbefore established
and all disbursements made therefrom and all transactions relating to said
waterworks. There shall be prepared and furnished to the 'original pur-
chaser of the bonds, so long as it holds any of the bonds, and, upon written
request, to any holder of the bonds not more than ninety (90) days after
the close of each annual fiscal .period, operating and income statements
of the waterworks, in reasonable detail, covering such annual fiscal period,
which statement shall be certified by the City Controller or the Auditor
of the waterworks. Copies of al.1 such statements and reports shall at
all time be kept on file in the office of the City Controller. Any
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holder of the bonds shall have the right at all reasonable times to
inspect the waterworks and the records, accounts and data of the City
relating thereto.
Sec. 11. The City shall, to the fullest extent permitted by
law, establish, maintain and collect reasonable and just rates and charges
for the services and facilities afforded by said waterworks which will
provide revenues at least sufficient to pay the reasonable and proper
cost of the maintenance and operation of the waterworks, to provide a
proper and reasonable depreciation account, and to pay the principal
of and interest on the bonds as the same become due, and provide a sur-
plus or margin of ten per cent (10%) of the principal and interest due
each year, which shall be cumulative. So long as any of the bonds herein
authorized are outstanding, none of the facilities and services afforded
by said waterworks shall be furnished without a reasonable and just charge
being made therefor. The reasonable value of any facility or service
rendered to the City, or to any department, agency or instrumentality
thereof, including the use of water for hydrants for fire protection or
for any other purpose, shall be charged against the City and shall be
paid for as the charges accrue, and the revenues so received shall be
deemed to be revenues derived from the operation of the waterworks and
shall be used and accounted for in the soma manner as other revenues
derived from the operation of the waterworks; provided, however, that
the payment of such charges against the City may be emitted to the extent
permitted by law so long as the revenues derived from the operation of the
waterworks are sufficient to pay the cost of operation, to provide for
the payment of the principal and interest of the bonds herein authorized,
to maintain the waterworks in good operating condition, and to provide
for a proper depreciation fund.
Sec. 12. For the purpose of further safeguarding the interests
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of the holders of the bonds, it is specifically provided as follows!
(a) AU construction contracts shall, be let to responsible con -
tractors who shall be required to furnish construction bonds running to
the City of South Bend, in an amount equal to one hundred per cent (100%)
of the amount of such contracts, to insure the completion of such con-
tracts in accordance with their terms, and such contractors shall be
required to carry such employergs liability and public liability in-
surance as are required under the laws of the State of Indiana in the
case of public contracts.
(b) The extensions and additions sha11 be contracted for and
constructed to the approval of Charles V. Cole & Son, consulting engineers
of South Bend, Indiana., how employed by the City, or such other consult-
ing engineers as may hereafter be employed by the City, with the approval
of the purchaser of the bonds. All estimates for work done and material
furnished shall first be checked by the consulting engineers before being
approved by the City.
(c) The City shall, at all times, maintain said waterworks in
good condition and operate the same in an efficient manner and at a rea-
sonable cost.
(d) So long as any of the bonds herein authorized are outstand-
Ingo the City shall maintain insurance on the insurable parts of the
waterworks of a kind and in an amount such as is usually carried by
private companies engaged in a similar type of business. AU insurance
shall be placed with responsible insurance companies qualified to do busi-
ness in the State of Indiana, and any insurance proceeds colUcted shall
be used in replacing the property destroyed or damaged.
(e) So long as any of the bonds herein authorized are outstand-
ing, the City shall not mortgage, pledge or otherwise encumber its water-
works or any part thereof, and shall not sell, lease or otherwise dispose
15 -
of any portion thereof except such equipment which may become worn out
or obsolete, and shall be replaced; nor shall the City execute or issue
any additional bonds or other obligations pledging any portion of the
revenues of said waterworks unless the same be made subordinate and ,junior
in all respects to the bonds herein authorized, or unless all of the bonds
herein authorized are redeemed and cancelled coincidently with the delivery
of such additional bonds or other obligations.
(f) The provisions of this ordinance shall be construed to
create a trust in the proceeds derived from the sale of the bonds herein
authorized, for the uses and purposes herein set forth, and so long as
any of said bonds are outstanding, the provisions of this ordinance shall
also be construed to create a trust in the fixed proportion of the rev-
enues of the waterworks herein directed to be set apart and paid into
the Bond and Interest Redemption Account for the uses and purposes of
said account as in this ordinance set forth.
(g) The provisions of this ordinance shall constitute a contract
by and between the City of South Bend and the holders of the bonds herein
authorized, all of the terms of which shall be enforceable in law or in
equity, and after the issuance of the bonds this ordinance shall not be
repealed or amended in any respect which will adversely affect the rights
and interests of the holders of said bonds, nor shall the Common Council
of the City adopt any law, ordinance or resolution in any way adversely
affecting the rights of such holders so long as any of the bonds or the
interest thereon remain unpaid. The holders of the bonds shall have all
of the rights, remedies and privileges, either expressly set forth in the
provisions of Chapter 155 of the Acts of the Indiana General Assembly for
the year 1929, and all acts amendatory thereof and 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 bonds issued
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hereunder and the interest thereon.
(h) bone of the provisions of this ordinance shall be con-
strued as requiring the expenditure of any funds of the City derived
from any sources other than the proceeds of said bonds and the revenues
derived from the operation of said waterworks system.
See. 13. All ordinances and parts of ordinances in conflict
herewith are hereby repealed.
See. 14. This ordinance shall be in full force and effect from
and after its passage.
Passed and adopted by the Common Council of the City of South
Bend on the 13th day of December , 1948.
Pr Office
Attest: g,
City Clerk
Presented by me to the Mayor of the City of South Bend on the
14th day of December , 1948, at the hour of 8130
o`olock A—. M.
This ordinance approved and signed by me on the 14th day
of December , 1948, at the ur of 9 :00 o'clock
A. M.
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