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HomeMy WebLinkAboutS-39 Fed & State Grant/Sewers ORDINANCE NO. S-39 An Ordinance concerning the construction of additionS, extensions and improvements 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 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 Carmel now finds that the City has heretofore established and constructed, and now owns and operates ~ewage works for the collection, treatment and disposal of sewage and wastes in a sanitary manner; that said sewaqe works is in need of additions, extensions and improvements; that plans, specifications and estimates have been prepared and filed by the engineers employed by the City for the necessary additions, extensions and improve- ments to the sewage 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 Indiana State Board of Health; and WHEREAS, the Council further finds that bids have heretofore been advertised for and received for the construction of said additions, extensions and improvements to the sewage works, and on the basis of said bids the cost of said works, as defined in IC 19-2-5, will be in the amount of Six Million Four Hundred Thirty- One Thousand Three Hundred Thirty-Five Dollars ($6,431,3~5~00); that a federal × grant has been made to the City for application on~saq~project in the amount of Four Million Three Hundred Ninety-Five Thousand Two Hundred Ninety-Six Dollars ($4,395,296.00) and a state grant made in the amount of Five Hundred Eighty- Six Thousand Thirty-Nine Dollars ($586,039.00), leavin~ a balance of One Million Four Hundred Fifty Thousand Dollars ($1,450,000.00) to be financed by the City from the issuance of sewage works revenue bonds in the amount of One Million Four Hundred Fifty Thousand Dollars ($1,450,000.00); 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 issuance of revenue bonds under the provisions of IC 19-2-5, 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 Sixty Three Thousand Dollars ($163,000.00) bearing interest at a rate of 4-3/4% per annum and m~turing serially on January i in the years 1982 through 1995 inclusive; and pursuant to Ordinance No. S-ll 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 Thirty-Four Thousand Dollars ($234,000.00) bearing interest at the rates of 5-1/2% and 5-1/4% per annum and maturing serially on January 1 in the years 1982 through 1998 inclusive~ 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 Nine Hundred Twenty Thousand Dollars ($920,000.00) bearing interest at the rates of 6-1/4% and 6-3/8% per annum and maturing serially on January I in the years 1982 through 1998~inclusive; and WHEREAS, Ordinances Numbered S-1, S-ll and S-22 authorized the issuance of additional revenue bonds ranking on a parity with all said now out- standing bonds, provided certain conditions are met, and a certified public -2- accountant employed by the City for that purpose only has analyzed the records of the sewage works and such analysis demonstrates compliance with the conditions for the issuance of additional parity bonds; and WHEREAS, the Council now finds that all conditions precedent to the adoption of an ordinance authorizing the issuance of additional parity revenue bonds in the amount of One Mi~ll~on Four Hundred Fifty Thousand Dollars ($1,450,000.00) to provide the necessary funds to pay the balance of the cost of such works have been complied with in accordance with the provisions of the governing statute; now therefore, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA: Section I. 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 additions, extensions, and improvements to the sewage works of the City including the construction of approximately seven miles of interceptor sewer and a 1.39 million gallon wastewater equalization tank with support system as hereinafter described, under and pursuant to IC 19-2-5 (hereinafter sometimes referred to as the "Act" or "governing statute"). The terms "sewage works", "sewage treatment works", "works", and other like terms where used in this ordinance shall be construed to mean and include all existing structures and property useful and convenient for the collection, treatment, purification and disposal in a sanitary manner of the sewaqe and industrial wastes of said City, including the additions, extensions and improvements herein authorized, and any further additions, extensions and improvements hereafter constructed. -3- Section 2. Said additions, extensions and improvements, consisting of lands, rights-of-way, easements, main sewers, design engineering for proposed construction and future improvements of the total sewage system, and other necessary connecting pipes and structures, equipment and appurtenances, together with improvements and additions to the sewage treatment plant consistina of the construction of a 1.39 milliQn gallon equalization tank with support systems, pumping equipment, and other miscellaneous equipment and appurtenances shall be acquired and constructed in accordance with the plans, specifications and estimates heretofore prepared by Howard Needles Tammen & Bergendoff, Consultinq Enqineers 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 th6 officers of the City in and about the construction and financing of said sewage works be and the same are hereby approved, ratified and confirmed. The cost of construction of said sewage works project shall not exceed the sum of Six Million Four Hundred Thirty-One Thousand Three Hundred Thirty-Five Dollars ($6,431,335.00), said sum being the cost as estimated by the consultina 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 One Million Four Hundred Fifty Thousand Dollars ($1,450,000.00) for the purposes of procuring funds to be applied on the cost of said works, as defined in said Act. -4- Said bonds shall be designated "Sewage Works Revenue Bonds of 1981", shall be issued in the demonination of Five Thousand Dollars ($5,000.00), numbered consecutively from I upwards, dated 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 thirteen percent (13%) per annum, payable on the first days of January and July in each year, beginning on January 1, 1982. 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, or at the option of the holder, at the principal office of The Indiana National Bank, in the City of Indianapolis, Indiana, and such bonds shall mature serially in numerical order on January 1 in the years and amounts as follows: Year Amount Year Amount 1983 ~-25,000 1992 $ 75,000 1984 30,000 1993 85,000 1985 30,000 1994 95,000 1986 35,000 1995 105,000 1987 40,000 1996 120,000 1988 45,000 1997 135,000 1989 50,000 1998 155,000 1990 60,000 1999 300,000 1991 65,000 The bonds of this issue maturing on January 1, 1992, and thereafter, sha~l be redeemable prior to maturity at the option of the City, in whole or in part, on July 1, 1991, or any interest payment date thereafter, in inverse order of maturity and by lot within a maturity, at face value, together with a premium of four percent (4%) if redeemed on July 1, 1991 or thereafter on or before January 1, 1996 and two percent (2%) if redeemed on July 1, 1997 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 time in a newspaper of general circulation in the City of Carmel~ Indiana and a -5- newspaper or financial journal of general circulation published in the City of Indianapolis, Indiana, not less than thirty (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 fixed in such notice, if sufficient funds are available at the place of redemption to pay the redemption price on the date so named, and when said bonds shall be presented for redemption. Section 4. Said bonds shall be signed in the name of the City of Carmel by the facsimile or manual signature of the Mayor, and attested 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 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 registered. Upon presentation of any 6f'~the'bonds-at the office of the Clerk~Treasurer in the City of Carmel, said Clerk-Treasurer 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 bond, but bonds so registered may be discharged from registry by being in like -6- Both principal and interest of this bond are 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 Indiana National Bank, Indianapolis, Indiana. This bond is one of an authorized issue of two hundred ninety (290) 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 One Million Four Hundred Fifty Thousand Dollars ($1,450,000.00), numbered from I to 290 inclusive, issued for the purpose of providing funds to pay the cost of additions, extensions and improvements to the sewage works owned and operated by the City, as authorized by an ordinance adopted by the Common Council of the City of Carmel on the day of July, 1981, entitled "An Ordinance concerning the construction of additions, extensions and improvements 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 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 The Indiana Code, Title 19, Article 2, Chapter 5, Pursuant to the provisions of said Act and said ordinance, the principal and interest of this bond and all other boqds of said issue, certain now outstanding bonds issued pursuant to Ordinance No. S-1 adopted on December 9, 1959 in the amount of One Hundred Sixty-Three Thousand Dollars ($163,000.00) bearing interest at the rate of Four and Three Fourths Percent (4-3/4%) per annum and maturing serially on January i in the years 1982 through 1995 inclusive; certain now outstanding bonds issued pursuant to Ordinance No. S-11 approved January 30, 1968 in the amount of Two Hundred Thirty Four Thousand Dollars ($234,000.00) bearing interest at the rates of Five and One Half Percent (5-1/2%) per annum and Five and One Quarter Percent (5-1/4%) per annum depending on the maturities, and maturing serially on January 1 in the years of 1982 through 1998 inclusive; and certain now outstanding bonds in the amount of Nine Hundred Twenty Thousand Dollars ($920,000.00) issued pursuant to Ordinance No. S-22 approved March 26, 1974 bearing interest at the rates of Six and One Quarter Percent (6/1/4%) per annum and Six an'd Three Eights Percent (6-3/8%) per annum and maturing serially on January 1 in the years 1982 through 1998 inclusive, ranking on a parity therewith, and any bonds hereafter issued on a parity therewith are payable solely from the Sewaae Works Sinking Fund (heretofore created by Ordinance No. S-1 adopted December 9, I959), 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 existing sewage works and the additions, extensions and improvements constructed or acquired by the use of the proceeds of this bond and the issue of which it is a part, and all additions and improvements thereto and replacements thereof 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 consti- tution of the State of Indiana, and the City shall not b~ obligated to pay this bond or the interest thereon except from said special fund provided from said net revenues. -8- 1997, 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 (30) days prior to the date fixed for redemption in a newspaper of general circulation in the City of Carmel, Indiana, and a newspaper or financial journal or general circulation published in the City of Indianapolis, Indiana. 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 and 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 du~ 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 its Mayor, its corporate seal to be hereunto affixed and attested by its Clerk- Treasurer, and the interest coupons hereto attached to be executed by placing thereon the facsimile signatures of the Mayor and Clerk-Treasurer, as of the first day of , 1981. CITY OF CARMEL BY Mayor Attest: Clerk-Treasurer (Form of Interest Coupon) Coupon No. $ On 1, 1981 (unless the bond herein mentioned shall be subject to and shall have been called for previous redemption), the City of Carmel, Indiana will pay to bearer at The Fidelity Bank of Indiana in Carmel, Indiana and The Indiana National Bank of Indianapolis, Indiana,out of its Sewage Works Sinking Fund, the amount shown hereon in lawful money of the United States of America, being the interest then due on its Sewage Works Revenue Bond of 1981, dated 1, 1981, No. CITY OF CARMEL BY (facsimile) Mayor (facsimile) Clerk-Treasurer -10- 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 Registry 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 execute 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 provisions of this ordinance, provided that at the time of said delivery the Clerk-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 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 additions, extensions and improvements to the sewage works hereinbefore referred to, 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 -11- 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 Indiana- polis 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 character and amount of the bonds, 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 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 Fourteen Thousand Dollars ($14,000.00) 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 are ready for delivery, or at the time fixed in the notice of sale, then said check and tho proceeds thereof shall be the property of the City and shall be considered as its liquidated damages on account of such default. All bids for said bonds shall be sealed and shall be presented to the Clerk- Treasurer at her office. Bidders for said bonds shall be required to name the rate or rates of interest which the bonds are to bear, not exceeding the maximum rate hereinbefore fixed. Such interest rate or rates shall be in multiples of one-eighth (1/8) or one twentieth (1/20) of one percent (t%) payable on the first days of January and July and not more than four (4) different interest rates shall be named by each bidder. Bids specifying more than one interest rate shall -12- also specify the amount and maturities of the bonds bearing 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 submitted his bid in accordance with the terms of this ordinance and the notice of sale. The highest bi~dder 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 fixed 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 hiqhest bid offered at the advertised sale. Prior to the delivery of said bonds the Clerk-Treasurer shall obtain a legal opinion as to the validity of the bonds from Ice Miller Donadio & Ryan, acting as bond counsel for the City, and such opinion shall be furnished to the purchasers of the bonds at the expense of the City. 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. Section 8. The accrued interest and premium received at the time of the delivery of the bonds, if any, shall be deposited in the Sewage Works Sinking Fund hereinafter referred to. The remaining proceeds from the sale of said bonds shall be deposited in a bank or banks which are legally designated as depositories -13- level, and additional amounts of net revenues shall be deposited in said fund to the extent necessary to maintain such level. 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 redemption, together with all interest on the bonds payable in said period. Any such excess of funds above said required level may also be used in purchasing outstanding bonds at a price less than the then applicable redemption price, 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 and interest on the then outstanding bonds which will be payable during the then next succeeding twelve (12) calendar months, and funds in an amount sufficient for operation, repair, 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 "Sewage Works Improvement Fund". No such transfer shall be made, however, which will interfere with the requirements of the Sewage Works Sinking Fund, the accumulation of the required reserve therein, or with the requirements as to reserving funds for the operation, maintenance and repair of the works and depreciation. All or any portion of the funds accumulated and reserved for operation, repair and maintenance for the then next succeeding twelve (12) calendar months shall be transferred to the Sewage Works Sinking Fund if necessary to prevent a default in the payment of principal 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 and apart from all other funds of the City. Out of this fund the proper and reasonable expenses of operation, repair and 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 ~howing 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 thec~ose 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 indepen- dent certified public accountant retained for the purpose of preparin~ such statements. Copies of all such statements and reports shall be kept on file in the office of the Clerk-Treasurer. 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 insoectons may be made by representatives duly authorized by written instrument. -17- 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 buildinq 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 charqes shall be sufficient in each year for the payment of the proper and reasonable expenses of operation, repair and maintenance of the works and depreciationn, and for the payment of the sums required to be paid into the Sewage Works Sinking Fund by said governing Act. 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 charqes so established shall apply to any and all use of such works by and service rendered to the City and all departments thereo~, 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 financinq the cost of future additions, extensions and improvements to the sewage works or refunding bonds, subject to the following conditions: (a) The interest on and principal of all bonds payable from the revenues of the sewage works shall ha~e been paid to date in accordance with the terms thereof. (b) The net operating revenues of the sewage works in the fiscal year immediately preceding the issuance of any such bonds ranking on a parity with the bond 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 -18- bonds and the additional parity 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 operations would have produced net operating revenues for said year equal to not less than one hundred twetny-five percent (125%) of the maximum annual interest and principal requirements of the then outstanding 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 July 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 propose 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 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 percent (100%) of the amount of such contracts, to insure the completion of said contracts in accordance with their terms, and such contractors shall also be required to carry such employers' liability and public liabili~ty i'nsurance as~are required'under the laws'~f'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 Howard Needles Tammen & Bergendoff, Consulting Engineers of Indiana- polis, Indiana, or such other competent enaineer as shall be designated by the -19- (g) The City shall take all action or proceedings necessary and proper to require connection of all property where liquid and solid waste, sewage, niQht soil or industrial waste is produced, with available sanitary sewers. The City shall, insofar as ~ossible, cause all such sanitary sewers to be connected with said sewage works. (h) The provisions of this ordinance shall constitute a contract by and between the City of 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 law, ordinance or resolution which in any way adversely affects the rights of such holders so long as any of said bonds or the interest thereon remain unpaid. (i) The provisions of this ordinance shall be construed to create a trust in the proceeds of the sale of the bonds herein authorized for the uses and purposes herein set forth, and the holders of the bonds shall retain a lien on such proceeds until the same are applied in accordance with the ?provisions of this ordinance and of said governing Act. The provisions of this ordinance shall also be construed to create a trust in the portion of the net revenues herein directed to be set apart and paid into the Sewage Works Sinking Fund for the uses and~purposesn6f 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 oayment 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. -21- Section ~. If, when the bonds issued hereunder shall have become due and payable in accordance with their terms or shall have been duly called for redemption or irrevocable instructions 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 moneys, or (ii) direct obligations of~ or obligations the principal of and inter- est 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 obli- gations of the kind described in (ii) above of a bank or banks the principal of and interest on which when due will provide suf- ficient moneys, shall be held in trust for such purpose~ and pro- vision shall also be made for paying all fees and expenses for the redemption~ then and in that case the bonds issued hereunder shall no longer be deemed outstanding or entitled to the pledge of the revenues of the City's sewage works. Section 15. The estimate of the rates and charges are those set forth in proposed Ordinance No. S-40. Section ~ This ordinance shall be in full force and effect from and after its passage and signing by the Mayor. Passed and adopted by the Common Council of the City of Carmel on the day of July, 1981. d . l~cer Attest: ~ Clerk_Treasu~F~ r ~ Presented by me to the Mayor ofxt~he City of Carmel on the ~ day of July, 1981, at the hour of ~'~S~ ~T~/.M. ~1 erk-Trea~r~ This ordinance approved and signed by me on the at the hour of ~'.'~',l~ p .M. day of July, 1981, -22- ;"own H~I C~r~l, I;vJi~a 46032 Ci~0445