HomeMy WebLinkAboutS-42 Sewer Improvement BondNo.
An Ordinance concerning the construction of improve-
ments to the sewage works owned and operated by the
City of Carmel, Indiana, the issuance of additional
revenue bonds to provide the cost thereof, the collec-
tion, 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 Carmel now finds
that the City has heretofore established and constructed, and
now owns and operates sewage works for the collection, treat-
ment and disposal of sewage and wastes in a sanitary manner;
that said sewage works is in need of certain improvements; that
plans, specifications and estimates have been prepared and
filed by the engineers employed by the City for the necessary
improvements to the sewage Works, which plans and specifica-
tions have been approved by all governmental authorities having
jurisdiction, particularly the Stream Pollution Control Board
of the State of Indiana, and the Indiana State Board of Health;
and
WHEREAS, the Council further finds that bids have hereto-
fore been advertised for and received for the construction of
said improvements to the sewage works, and on the basis of said
bids and estimates as to other costs incident ot the project,
the cost of said works, as defined in IC 36-9-1-8, will be in
the estimated amount Of Six Million One Hundred Eighty-two
Thousand Seven Hundred Seventy Dollars ($6,182,770); that a
federal grant has been made to the City for application on said
project in the approximate amount of Four Million Five Hundred
Sixteen Thousand Six Hundred Ninety Dollars ($4,516,690), a
state grant has been made in the approximate amount of Six
Hundred Two Thousand Two Hundred Twenty-five Dollars ($602,225),
Eight Hundred Fifty-five Dollars ($223,855) of funds on hand
and available for application on the costs of the project,
leaving a balance of Eight Hundred Forty Thousand Dollars
($840,000) to be financed by the City from the ~issuance of
sewage works revenue bonds in the amount of Eight Hundred Forty
Thousand Dollars ($840,000); and
WHEREAS, the Council finds that the cost of said works,
over and above the amounts available from said federal and
state grants and funds on hand, should be financed by the issu-
ance of revenue bonds under the provisions of IC 36-9-23; and
WHEREAS, pursuant to Ordinance No. S-1 adopted on December
9,. 1959, the City now has outstanding revenue bonds payable
from the revenues of the sewage works in the amount of One
Hundred Fifty-five Thousand Dollars ($155,000) bearing interest
at a rate of 4-3/4% per annum and maturing serially on January
1 in the years 1983 through 1995 inclusive; and pursuant to
Ordinance No. S-11 approved January 30, 1968, the City now has
outstanding revenue bonds payable from the revenues of the
sewage works in the amount of Two Hundred Twenty-seven Thousand
Dollars ($227,000) bearing interest~ at the rates of 6%, 5.-1/2%
or 5-1/4% per annum, depending upon the maturities, and matur-
ing serially on January 1 in the years 1983 through 1998 inclu-
sive; and pursuant to Ordinance No. S-22 approved March 26,
1974, the City now has outstanding revenue bonds payable from
the revenues of the sewage works in the amount of Eight Hundred
Ninety Thousand Dollars ($890,000) bearing interest at the
rates of 6%, 6-1/4% or 6-3/8% per annum, depending upon the
($1,450,000), bearing interest at the rate of 11-3/4%, 12.2%,
12~4%, 12.6%, 12.8%, 12.9%, 13% or 13.5% per annum, depending
up,gn their maturities, and maturing serially on January 1 in
the years 1983 through 1999 inclusive; and
WHEREAS, Ordinances Numbered S-l, S-11, S-22 and S-39
authorized the issuance of additional revenue bonds ranking on
a parity with all said now outstanding bonds, provided certain
conditions are met~ and H. J. Umbaugh & Associates, Certified
Public Accountants employed by the City, have prepared an
accounting report on the sewage works and have advised the City
that it can meet the conditions for the issuance of additional
parity bonds; and
WHEREAS, the Board of Public Works and Safety has adopted a
resolution recommending the issuance of the proposed bonds; and
WHEREAS, the Council now finds that all conditions precedent
~ the adoption of an ordinance authorizing the issuance of
additional parity revenue bonds in the amount of Eight Hundred
Forty Thousand Dollars ($840,000) to provide the necessary
f'~nds to pay the balance of
complied with in accordance
ing statute; now therefore,
the cost of such works have been
with the provisions cf the govern-
BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF CARMEL,
INDIANA:
Section 1. That the Board of Public Works and Safety and
the other proper officers of the City be and they are hereby
authorized and directed to proceed with the construction of the
improvements to the sewage works of the City under and pursuant
collection, treatment, purification and disposal in a sanitary
manner of the sewage and industrial wastes of said City,
including the additions, extensions and improvements herein
authorized, and any further additions, extensions and improve-
ments hereafter constructed.
Section 2. Said improvements, consisting of increasing the
capacity of the City's south treatment plant from 3,000,000
gallons per day to 6,000,000 gallons per day, shall be acquired
and constructed in accordance with the plans, specifications
and estimates heretofore prepared by Howard Needles Tammen &
Bergendoff, Consulting Engineers of Indianapolis, Indiana,
which are now on file in the office of the Clerk-Treasurer and
are hereby adopted and approved, and by reference made a part
of this ordinance as fully as if the same were attached hereto
or incorporated herein; that the actions of the officers of the
City in and about the construction and financing of said sewage
works be and the same are hereby approved, ratified and con-
firmed. The cost of construction of said sewage works project
shall not exceed the sum of Six Million One Hundred Eighty-two
Thousand Seven Hundred Seventy Dollars ($6,182,770) without
further approval of this Council, said sum being the cost as
estimated by the consulting engineers employed by the City.
Said additions, extensions and improvements shall be construCted
and the bonds herein authorized shall be issued pursuant to and
in accordance with the provisions of said Act.
Section 3. The City of Carmel shall issue its sewage Works
revenue bonds in the amount of Eight Hundred Forty Thousand
as of the first day of the month in which said bonds are sold,
and shall bear interest at a rate or rates not exceeding fourteen
percent (14%) per annum, payable on the first days of January and
July in each year, beginning on January 1, 1983. 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 Fidelity Bank of Indiana, in the
City of Carmel, Indiana, or at the option of the holder, at the
principal office of the Indiana National Bank,' in the City of
Indianapolis, Indiana, ans such bonds shall mature serially in
numerical order on January 1 in the years and amounts as follows:
Years Amounts Years Amounts
1984 $ 85,000 1988 $135,000
1985 95,000 1989 145,000
1986 105,000 1990 160,000
1987 115,G00
The bonds of this issue shall not be redeemable prior to
maturity.
Section 4. Said bonds shall be signed in the name of the
City of Carmel by the facsimile or manual signature of the
Clerk-Treasurer, who shall affix the seal of the City to each
of said bonds, provided one such signature shall be manual.
The interest coupons attached to said bonds shall be executed
by placing thereon the facsimile signatures of the Mayor and
Clerk-Treasurer, and said officials, by the signing of said
bonds, shall adopt as and for their own proper signatures their
facsimile signatures appearing on said coupons. Said bonds
shall have all of the qualities and incidents of negotiable
instruments under the laws of the State of Indiana.
Said bonds shall be negotiable by delivery unless regis-
tered. Upon presentation of any of the bonds at the office of
tt~e Clerk-Treasurer in the City of Carmel, said Clerk-Treasurer
st~all 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 bond, but
b¢~nds 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
s.]ch coupons shall continue to pass by delivery merely and
shall remain payable to bearer.
The bonds herein authorized, certain now outstanding bonds
h~reinbefore referred to, and any bonds hereafter issued on a
parity therewith, 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
defined as gross revenues after deduction only for the payment
of reasonable expenses of operation, repair and maintenance) of
the sewage works of the City of Carmel, including the existing
works and all additions and improvements thereto and replace-
ments thereof subsequently constructed or acquired. The City
shall not be obligated to pay said bonds or the interest there-
on except from the net revenues of said works, and said bonds
shall not constitute an indebtedness of the City of Carmel
within the meaning of the provisions and limitations of the
CITY OF CARMEL
SEWAGE WORKS REVENUE BOND
OF 1982
The City of Carmel, in Hamilton County, State of Indiana,
for value received, hereby provises to pay to the bearer, or if
this bond be registered then to the registered holder, solely
out of the special revenue fund hereinafter referred to, the
principal amount of
FIVE THOUSAND DOLLARS
on the first day of January, 19.__ (unless this bond be subject
to and be called for redemption prior to matUrity as hereinafter
provided), and to pay interest thereon from the date hereof
un'ail the principal is paid, at the rate of
perCent (__%) per annum, payable on the first days of
January and July in each year, beginning on January l, 1983,
upon presentation and surrender of the annexed coupons as they
severally become due.
Both principal of and interest on this bond are payable in
lawful money of the United States of America at the principal
office of The Fidelity Bank of Indiana, in the City of Carmel,
Indiana, or, at the option of the holder, at the principal
office of The Indiana National Bank, in the City of
II~dianapolis, Indiana.
This bond is one of an authorize!d issue of one hundred
sixty-nine (169) bonds of the City of Carmel, of like date,
tenor and effect, except as to numbering, interest rates and
dates of maturity, in the total amount of Eight Hundred Forty
Thousand Dollars ($840,000), numbered from 1 to 169 inclusive,
issued for the purpose of providing funds to pay the cost of
i~provements to the sewage works owned and operated by the
City, as authorized by an ordinance adopted by the Common
Ccuncil of the City of Carmel on the __ day of July, 1982,
entitled "An Ordinance concerning the construction of addi,
t~ons, extensions and improvements to the sewage works owned
and operated by the City of carmel, Indiana, the issuance of
a~ditional 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 provlolons of the Indiana Code,
Title 36, Article 9, Chapter 23.
Pursuant to the provisions of said Act and said ordinance,
the principal of and interest on this bond and all other bonds
of said issue, certain now outstanding bonds issued pursuant to
Ordinance No. S-t adopted on December 9, 1959, in the amount of
One Hundred Fifty-five Thousand Dollars ($155,000), b~a{~n~
Hundred Ninety Thousand Dollars ($890,000) issued pursuant to
Ordinance No. S-22 approved March 26~ 1974, bearing interest at
the rate of six and one-fourth percent (6-1/4%), slx and
tkree-eighths percent (6-3/8%) or six percent (6%) per annum,
depending upon the maturities, and maturing serially on January
1 in the years 1982 through 1998 inclusive; and certain now
outstanding bonds issued pursuant to Ordinance No. S-39 adopted
oD July 22, 1981, in the amount of One Million Four Hundred
Fifty Thousand Dollars ($1,450,000), bearing interest at the
rate of 11-3/4%, 12.2%, 12.4%, 12.6%, 12.8%, 12.9%, 13% or
13.5% per annum, depending upon the ~maturities, and maturing
serially on January 1 in the years 1983 through 1999 inclusive,
ranking on a parity therewith, and any bonds hereafter issued
on ~ parity herewith are payable solely from the Sewage Works
Sinking Fund (heretofore created by Ordinance No. S-1 adopted
December 9, 1959), 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 works of the City of Carmel, including the exist-
i~g sewage works and improvements constructed or acquired by
t~e use of the proceeds of this bond and the issue of which it'
is a part, and all additions, extensions and improvements
t~ereto and replacements thereof subsequently constructed or
acquired. This bond shall not constitute an indebtedness of
the City of Carmel 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 inter-
est hereon except from said special fund provided from said net
revenues.
The City of Carmel irrevocably pledges the entire net
revenues of said sewage works to the prompt payment of the
p~incipal of and interest on the bonds issued on account of the
construction of said improvements to the sewage works, of which
this is one, the now outstanding bonds, and any bonds hereafter
issued on a parity therewith, and covenants that it will cause
to be fixed, maintained and collected suc5 rates and charges
for service rendered by said works as are sufficient in each
year for the payment of the proper and reasonable expenses of
operation, repair and maintenance of said'works, to provide for
proper depreciation, and for the payment of the sums required
to be paid into said Sinking Fund under the provisions of said
Act. In the event the City of Carmel, 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 IC 36-9-23, including the right to have a receiver'
appointed to administer the works and to charge and collect
rates sufficient to provide for the payment of this bond and
the interest hereon.
The City of Carmel further covenants that it will set aside
amounts so required to be paid into said Sinking Fund. Such
re,~uired payments shall constitute a~ first charge upon all the
net revenues of said works.
This bond and all other bonds of said issue shall have all
th~ qualities and incidents of negotiable instruments under the
laws of the State of Indiana. This bond may be registered as
to principal at the office of the Clerk-Treasurer in the City
of Carmel, Indiana, in the name of the owner hereof~ and such
registration noted hereon by said Clerk-Treasurer. Thereafter
no transfer hereof shall be valid unless made at said office by
the registered owner in person or by his duly .authorized attor-
ney and similarly noted hereon, but this bond may be discharged
fro~ 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 negotiability of the interest coupons hereto
attached by delivery only, but such interest coupons shall
always be payable to bearer.
The bonds of this issue are not redeemable prior to
maturity.
It is hereby certified and recited that all acts, condi-
tions and things required to be done precedent to and in the
execution, issuance and delivery of ~this bond have been done
and performDd in regular and due form as provided by law.
IN WITNESS WHEREOF, the City of Carmel, in Hamilton County,
State of Indiana, has caused this bond to be executed in its
corporate name by the facsimile signature of its Mayor, its
corporate seal to be hereunto affixed and attested by its Clerk-
T~easurer, and the interest coupons hereto attached to be exe-
cuted by placing thereon the facsimile signatures of the Mayor
and Clerk-Treasurer, as of the first day of , 1982.
CITY OF CARMEL
Attest:
By.
Mayor
Clerk-Treasurer
(Form of Interest Coupon)
Coupon No. $
A~.erica, being the interest then due on its Sewage Works
Revenue Bond of 1982, dated 1, 1982, No.
CITY OF CARMEL
Clerk-Treasurer
(f acsimile)
By (facsimile)
Mayor
REGISTRATION ENDORSEMENT
This bond can be registered only at the office of the
Clerk-Treasurer in the City of Carmel, Indiana. No.writing
hereon except by the Clerk-Treasurer.
Date of
R__.~g istry
In whose Name
Registered
Clerk-Treasurer
Section 6. The Clerk-Treasurer is hereby authorized and
directed to have said bonds and coupons prepared, and the Mayor
and Clerk-Treasurer are hereby authorized and directed to exe-
cute said bonds and the interest coupons to be attached thereto
in the form and manner herein provided. The Clerk-Treasurer is
hereby authorized and directed to deliver said bonds to the
purchaser thereof after sale made in accordance with the pro-
visions of this ordinance, provided that at the time of said
delivery the Clerk-Treasurer shall collect the full amount
~hich the purchaser has agreed to pay therefor, which shall not
be less than the face value of said bonds, plus accrued inter-
est from the date thereof to the date of delivery. The bonds
herein authorized, when fully paid for and delivered to the
cost of acquisition, construction and installation of said
improvements to the sewage works herainbefore referred to, and
th.~ 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 bonds the Clerk-
Treasurer shall cause to be published a notice of such sale
once each week for two (2) weeks in the Noblesville Daily
Ledger and in The Noblesville Times and one time in The
I~dianapolis Commercial, 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 char-
acter and amount of the bonds, the maximum rate of interest
thereon, the terms and conditions upon which bids will be
r~ceived and the sale made, and such other information as the
Clerk-Treasurer 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 Fifteen Thousand Dollars ($15,000) to
guarantee performance on the part of the bidder, and that in
the event the successful bidder shall fail or refuse to accept
delivery of the bonds and pay for the same as soon as the bonds
ace 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
rates shall be in multiples of one-eighth (1/8) or one-tenth
(1/10) of one percent (1%). Bids may name a different rate for
each maturity. Bids specifying more than one interest rate
shall also specify the amount and maturities of the bonds bear-
ii%g each rate, but all bonds maturing on the same date shall
bear the same single rate of interest. The interest due on any
bond on any interest payment date shall be represented by a
single interest coupon. The bonds shall be awarded by the
Clerk-Treasurer to the highest qualified bidder who has sub-
mitted his bid in accordance with the terms of this ordinance
ar.d the notice of sale. The highest bidder shall 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
fi. xed in the notice, the Clerk-Treasurer shall be authorized to
continue the sale from day to day for a period of 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.
Prior to the delivery of said
shall obtain a legal opinion as
from Ice Miller Donadio & Ryan,
City, and such opinion shall be
the bonds at the expense of
counsel shall be considered
bonds the Clerk-Treasurer
to the validity of the bonds
acting as bond counsel for the
furnished to the purchasers of
the City. The fee of such bond
as a part of the cost of the proj-
to. The remaining proceeds from the sale of said bonds shall
be deposited in a bank or banks which are legally designated as
deDositorie.s for the funds of the City in a special account or
accounts to be designated as "City of Carmel, Sewage works 1982
Construction Account." All funds deposited to the credit of
said Sewage Works Sinking Fund or Sewage Works Construction
Account shall be deposited, held, secured or invested in accor-
dance with the laws of the State of irndiana relating to the
depositing, holding, securing or investing 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 IC 39-9-23, or as otherwise required by said Act,
and as hereinbefore set forth 'in this ordinance. Any balance
or balances remaining unexpended in such special account or
accounts after completion of the improvements 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 purposes of said fund.
Any interest or other accretions derived from any such invest-
ments shall become a part of the funds invested. In conformity
w~th 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. The special fund designated "Sewage Works Sink-
ing Fund" created by Ordinance No. S-l, adopted on December 9,
1959, for the payment of the principal of and interest on the
is~sued on a parity therewith, or subordinate thereto, and the
payment of any fiscal agency charges in connectioh with the
payment of bonds and interest coupons. 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
all bonds payable from the revenues of the sewage works as such
interest shall fall due, (b) the necessary fiscal agency
charges for paying the bonds and interest, (c) the principal of
a~l bonds payable from the revenues of the sewage works as such
principal shall fall due, and (d) an additional amount as a
margin of safety 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 praced-
ing year, shall equal not less than ten percent (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
required for such payments during the
twelve (12) calendar months and shall
(1/12) of the amount
then next succeeding
continue until such time
as said fund shall contain an amount sufficient to pay all of
the bonds then outstanding, together with the interest thereon
to the dates of maturity thereof. In addition to said required
monthly payments into the Sewage Works Sinking Fund, all of the
net revenues of said sewage works not used in making said
required sinking fund payments shall be set aside and paid into
said Sinking Fund monthly as available until there has been
Thereafter, such debt reserve shall be maintained in said
Sinking Fund as a minimum level, and additional amounts of net
revenues shall be deposited in said fund to the extent neces-
sa~y to maintain such level.
In
be used
except
no event shall any part of the Sewage Works Sinking Fund
in calling bonds for redemption prior to maturity
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 redemption, together with all interest on the
bonds payable in said period. Any such excess of funds above
payable
months,
repair,
said required level may also be used in purchasing outstanding
bonds at a price less than the then applicable redemption
price, if first approved by the Common Council. Moneys in said
Sinking Fund shall not be used for any other purpose whatsoever
except as provided in this ordinance.
Section 10. In the event all required payments into the
Sewage Works Sinking Fund have been met to date and there has
been accumulated as a debt reserve in said fund over and above
said payments an amount equal to the sum of the principal of
and interest on the then outstanding bonds which will be
during the then next succeeding twelve (12) calendar
and funds in an amount sufficient for operation,
maintenance and depreciation for a like period have
been accumulated and reserved for that purpose, then any excess
net revenues may be transferred into a fund for extensions,
betterments and additions to the works, to be designated as
depreciation. Ail or any portion of the funds accumulated and
reserved for operation, repair and maintenance ~or the then
next succeeding twelve (12) calendar months shall be trans-
ferred to the Sewage Works Sinking Fund if necessary to prevent
a default in the payment of pr~incipal of or interest on the
bonds payable from said Sinking Fund.
Section 11. All revenues received on account of the sewage
works shall be segregated and kept in a special fund separate
a~d apart from all other funds of the City. Out of this fund
the proper and reasonable expenses of operation, repair arm
maintenance of the works shall be paid and the requirements of
the Sewage Works Sinking Fund shall be met. 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
transactions relating to said works. There shall be prepared
and furnished to the original purchasers of the bonds and, upon
written request, to any subsequent holder of the bonds, not
more than ninety (90) days after the close of each fiscal year,
complete operating and income statements of the works, covering
the preceding fiscal year, and a statement showing the balances
in each of the funds as of the close of the fiscal year, which
annual statements shall be certified by the Clerk-Treasurer, or
be prepared by an independent certified public accountant
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 services rendered by said works, to be paid by
the owner of each and every lot, parcel of real estate or
building that is connected with and uses said sewage works by
or through any part of the sewerage system of the City, or that
in any way uses or is served by such works. Such rates or
charges shall be sufficient in each year for the payment of the
proper and reasonable expenses, of operation, repair and main-
tenance of the works and depreciation, and for the payment of
the sums required to be paid into the Sewage Works Sinking Fund
by said governing Act and the ordinances authorizing the bonds
outstanding. Such rates or charges shall, if necessary, be
changed and readjusted from time to time so that the revenues
therefrom shall always be sufficient to meet the requirements
hereof. The rates or charges so established shall apply to any
ar~ all use of such works by and service rendered to the City
a~ all departments thereof, and shall be paid by the City or
the various departments thereof as the charges accrue.
Section 13. The City reserves the right to authorize and
issue additional bonds, payable out of the revenues of its
sewage works, ranking on a parity with the bonds authorized by
this ordinance, for the purpose of financing the cost of future
additions, extensions and improvements to the sewage works or
refunding bonds, subject to the following conditions:
bonds ranking on a parity with the bonds authorized by this
ordinance shall be not less than one hundred twenty-five
percent (125%) of the maximum annual interest and principal
requirements of the then outstanding bonds and the additional
p.~rity bonds proposed to be issued; or, prior to the issuance
of said parity bonds, the sewage rates and charges shall be
increased sufficiently so that said increased rates and charges
applied to the previous fiscal year's oper~ations would have
produced net operating revenues for said year equal to not less
than one hundred twenty-five percent (125%) of the maximuIa
annual interest and principal requirements of the then out-
standing bonds and the additional parity bonds proposed to be
issued. For purposes of this subsection, the records of the
sewage works shall be analyzed .and all showings shall be
prepared by an independent certified public accountant retained
by the City for that purpose.
(c) The interest on said additional bonds shall be payable
semi-annually on January 1 and J'uly 1, and the principal thereof
shall be payable annually on January 1, in the years in which
principal and interest are payable.
Section 14. For the purpose 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 works shall be let after due adver-
tisement as required by the laws of the State of Indiana, and
all contractors shall be required to furnish surety bonds in an
Indiana in the case of
in all respects by the
public contracts.
(b) The works
an~ subject to the
public contracts, and shall be governed
laws of the State of Indiana rela~ing to
shall be constructed under the supervision
approval of Howard Needles Tammen &
Bergendoff, Consulting Engineers of Indianapolis, Indiana, or
such other competent engineer as shall be designated by the
City. All estimates for work done or material furnished shall
first be checked by the engineers and approved by the appro-
priate officers of the City.
(c) The City shall at all times maintain its sewage works
in good condition and operate the same in an efficient manner
and at a reasonable cost.
(d) So long as any of the bonds herein authorized are
outstanding, the City shall maintain insurance on the insurable
parts of said works and public liability and property damage
insurance of a kind and in an amount such
carried by private companies engaged in a
ness. All insurance shall be placed with
as would normally be
similar type of busi-
responsible insurance
companies qualified to do business under the laws of the State
o~ Indiana. Insurance proceeds shall be used in replacing or
repairing the property destroyed or damaged; or, if not used
for that purpose shall be deposited in the Sewage Works Sinking
Fund.
(e) So long as any of the bonds are outstanding, the City
shall not mortgage, pledge or otherwise encumber such works, or
a~y part thereof, nor shall it sell, lease or otherwise dispose
additional bonds or other obligations pledging any portion of
the revenues of said sewage works shall be authorized, executed
or issued by the City except such as shall be made subordinate
a~ junior in all respects to the bonds herein authorized,
unless all of the bonds herein authorized are redeemed and
retired coincidentally with the delivery of such bonds or other
obligations, or are duly called for redemption in accordance
with the terms thereof, and sufficient funds to effect such
redemption have been deposited at the place of redemption on
the date fixed for redemption.
(g) The City shall take all action or proceedings neces-
s~}ry and proper to require connection of all property where
l~quid and solid waste, sewage, night soil or industrial waste
is produced, with available sanitary sewers. The City shall,
iDsofar as possible, cause
connected with said sewage
(h) The provisions of
all such sanitary sewers to be
works.
this ordinance shall constitute
a
contract by and between the City of Carmel 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 lawt ordinance or resolution which in any way
adversely affects the rights of such holders so long as any of
s~id 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
portion cf the net revenues herein directed to be set apart and
paid into the Sewage Works Sinking Fund for the uses and pur-
poses of said fund as in this ordinance set forth. The holders
of said bonds shall have all of the rights, remedies and
privileges set forth in the provisions of the governing Act
hereinbefore referred to, including the right to have a
receiver appointed to administer said sewage works, in the
event of default in the payment of the principal of or interest
on any of the bonds herein authorized or in the event of
default in respect to any of the provisions of this ordinance
or the governing Act.
Section 15. If, when the bonds issued hereunder shall have
become due and payable in accordance with their terms or shall
ha~e been duly called for redemption or irrevocable i~struc-
tions to call the bonds for redemption shall have been given,
and the whole amount of the principal and the interest and the
premium, if any, so due and payable upon all of the bonds and
coupons then outstanding shall be paid; or (i) sufficient
meneys, or (ii) direct obligations of, or obligations the prin-
cipal of and interest on which are unconditionally guaranteed
by, the United States of America, the principal of and the
interest on which when due will provide sufficient moneys, or
(iii) time certificates of deposit fully secured as to both
principal and interest by obligations of the kind described in
(ii) above of a bank or banks the principal of and interest on
which when due will provide sufficient moneys, shall be held in
t~ust for such purpose, and provision shall also be made for
Section 16. The estimate .of the rates and charges are
tkose set forth in proposed Ordinance No. S-40.
Section 17. This
effect from and after
Passed an~
ordinance shall be in full force and
its passage and signing by the ~ayor.
C~rmel on the
adopted by the Co~u~on Council of the City of
/~_ day of July~ 1982.
Attest:
C]~r~r -
Presented by me to the Mayor of the City of Carmel on the
day of July, 1982, at the ho~r of ~-.~_~.m.
Clef k-Tre~rer
This ordinance approved and~sig,~ by me on the ____
of July~ 1982, at the hour of ~_:~.m.
day