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HomeMy WebLinkAboutA-55, Const. Extensions, Additions, Improvements An Ordinance concerning the construction of exten- sions, additions and improvements to the municipal waterworks in the City of Carmel, authorizing the issuance of additional revenue bonds to provide for the cost thereof, and matters connected therewith. WHEREAS, the City of Carmel is the owner of and operates an unencumbered waterworks system furnishing the public water supply to said City and its inhabitants; and WHEREAS, the Common Council now finds that said waterworks ~s in need of certain extensions, additions and improvements in order to serve adequately the inhabitants of the City; and that said extensions, additions and improvements are required in order to protect properly the health, Well-being and property of the City and its inhabitants; and WHEREAS, Howard Needles Tammen & Bergendoff, consulting engineers of Indianapolis, Indiana, employed by the City, have 'recommended the extensions, additions and improvements required, and have prepared plans, specifications and estimates~ therefor; and the Council finds that said extensions, additions and improvements to the waterworks as shown on said plans and specifications are necessary and that the cost of said exten- sions, additions and improvements will be in the approximate amount of Nine Hundred Ninety Thousand Dollars ($990,000), including all incidental expenses necessary to be incurred in connection with the issuance of bonds on account thereof; and WHEREAS, the Council finds that the funds required for said project should be provided by the issuance and sale of revenue bonds payable solely out of the revenues of said waterworks and not constituting a general obligation of the City; and ~HEREAS, pursuant to Ordinance No. A-8 adopted by the Board Of Trustees of the City of Carmel oh the t0th day of Jull, 1965, Ordinance No. A-18, as amended, adopted by the Board of Trustees of the City of Carmel on the 12th day of April, 1971, Ordinance No. A-43 adopted by the Board of Trustees of the City of Carmel on the 26th day of March, 1974, and Ordinance No. A-49 adopted by the Common Council of the City of Carmel on March 7, 1977, the City has heretofore issued and now has outstanding four series of bonds payable from the revenues of said waterworks; and WHEREAS, the series issued pursuant to Ordinance No. A-8 (the "1965 Bonds") are now outstanding in the total aggregate principal amount of Two Hundred Forty Thousand Dollars ($240,000) and mature annually over a period ending November 1, 2000, which bonds said waterworks nance authorizing constitute Under the said bonds a first charge on the revenues of terms and conditions of the ordi- the City has the right to issue additional waterworks revenue bonds provided such additional bonds are made'junior and subordinate to said 1965 Bonds; and WHEREAS, the series of bonds issued pursuant to Ordinance No. A-18, as amended Cthe "].971 Bonds"), are now outstanding in a .total aggregate principal amount of Eight Hundred Thirty Thousand Dollars ($830,000) maturing annually over a period ending November 1, 1996, which bonds are junior and subordinate to the 1965 Bonds; and WHEREAS, the series of bonds issued pursuant to ordinance No..A-43 (the "1974 Bonds") are now Outstanding in the aggre- gate principal of Three Hundred Seventy-five Thousand Dollars $375,000) maturing annually over a period ending November 1, 1992, which bonds are junior and subordinate to the Waterworks Revenue Bonds of 1965 and on a parity with the 1971 Bonds; and WHEREAS, the series of bonds issued pursuant to Ordinance No. A-49 (the "1977 Bonds") are now outstanding in the aggre- gate principal amount of Four Hundred Eighty Thousand Dollars ($480,000). maturing annually over a period ending November 1, - 2 - 1995, which bonds are junior and subordinate to the Waterworks Revenue Bonds of 1965 and on a parity with the 1971 and 1974 Bonds; and WHEREAS, the Ordinances authorizing the 1971 Bonds, the 1974 Bonds and the 1977 Bonds permit the issuance of additional bonds ranking on a parity with said series of revenue bonds; provided certain conditions are met; WHEREAS, McCullough & Associates, accountants of Indianapolis, Indiana, certified public employed by.the City, have prepared an accounting report on the proposed bond issue and have advised the City that the parity conditions can be satisfied for the 1971 Bonds, the 1974 Bonds and the 1977 Bonds and the City now'finds that said conditions can be met; now therefore, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA: Section 1. That engaged in operating the City of Carmel, being the owner of and an unencumbered waterworks system sup- plying the City and its inhabitants with water for public and domestic use, now provide for certain needed extensions, addi- tions and improvements to such waterw0rk~ and the payment for such extensions, additions and improvements from the revenues and receipts of such waterworks pursuant to and in the manner prescribed in I.C. 19-3-17, and all acts amendatory thereof or supplemental thereto (sometimes hereinafter referred to as the "Act"), provided, however, that the additional revenue bonds authorized by this ordinance shall be junior and subordinate in all respects to the 1965 Bonds, and none of the provisions of this ordinance shall be so construed as to affect the rights of the holders of said outstanding revenue bonds, and provided further that the additional revenue bonds authorized by this ordinance shall be of equal p~iority with the 1971 Bonds, the - 3 - 1974 Bonds and the '1977 Bonds.. system," "system," and "waterworks system," where ordinance, shall be construed to mean and include waterworks system owned by the City of Carmel and The terms "waterworks," "water used in this the existing all exten- s~.ons, additions and improvements thereto and replacements thereof now Or subsequently constructed or acquired. See. 2. Said extensions, additions and improvements shall be constructed and installed in accordance with the plans, specifications and estimates prepared by Howard Needles Tammen & Bergendoff, consulting engineers of Indianapolis, Indiana, which plans, specifications and estimates a~e hereby approved. The extensions, additions and improvements shall consist prin- cipally of improvements to the Gray Road pumping station, including installation Of water softening facilities, installa- tion of water mains to connect the Gray Road facility to the Carmel system and installation of appropriate controls, together with necessary appurtenances. Sec. 3. The proper officers of the authorized and directed to proceed with City are hereby the construction and installation of said extensions, additions and improvements, and to enter into all contracts necessary for such purpose in conformity with the provisions of this ordinance and of said Act, subject, however, to the following conditions: (a) The approval of the Public Service Commission of Indiana for the making of said extensions, addi- tions and improvements, and the issuance of the required amount of revenue bonds; (b) That the principal and interest of the bonds issued on account of such extensions, additions and improvements shall be paid solely and exclu- sively from the revenues of said waterworks system and shall not constitute a general obligation of the City. Sec. 4. The income and revenues of the existing water- works, together with the income and additions,, improvements thereto and revenue of all extensions, replacements thereof made © pursuant ~o 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 deprecia- tion account~ and~ for the payment of the principal of and interest on now outstanding revenue bonds and the revenue bonds authorized by this ordinance. The proportion of the gross revenues of said waterworks that shall be paid into the several accounts of said special fund, heretofore established by Ordi- nance No.'A-8, adopted on July 10, 196~, and as provided by said Act, is hereby fixed and determined Rs follows: (a) Operation and Maintenance Account. Thirty-six percent (36%) of the gross revenues of said waterworks shall be set aside and paid into the "Operation and Maintenance Account," and shall be used to pay the necessary cost of the reasonable and proper operation and maintenance of the waterworks, including any taxes required to be paid. ~he 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 A6count which shall be equal to the cost of maintaining and operating the waterworks during the ~emainder of the calendar, operating or fiscal year then current and the cost of maintaining and. opera'ting the waterworks during the calendar, operating or fiscal year then next'ensuing. Any excess over such surplus may be transferred by the Common Council to either the Depre- ciation Account or the Bond and Interest Redemption Account. (b) Depreciation Account. six percent (6%) of the gross revenues of said water- works shall be paid into the "Depreciation Account," and shall be expended in making good the depreciation in the waterworks, or ~n the'new construction, extensions or additions to the property ~f the waterworks. Any accumulations in such Depre- ciation Account not required for. immediate 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. Fifty-eight percent (58%) of the gross revenues of the waterworks shall, as such revenues are received, be set apart and paid into a special account identified as the "Bond and Interest' Redemption Account." The funds in said account shall be used solely for the purpose of paying the pr.incipal of and interest on any bonds which by their~terms are payable from the revenues of the waterworks and in the following order: (I) Paying the interest on and principal of the 1965 Bonds in accordance with the terms thereof; (2) Paying the interest on and principal of the 1971 Bonds, the 1974 Bonds, the 1977 Bonds and the bonds issued pursuant to the provisions of this ordinance in accordance with the terms hereof, and any bonds hereafter issued ranking on a parity therewith; and (3) Paying the interest on and principal of any other bonds payable from the revenues of the waterworks; to the extent required for said purposes. If and when a surplus shall be created in s~id Bo~d and Interest Redemption Account which shall be in excess of the interest on and principal of the bonds,.plus ten percent (10%), which are payable during the then-current calendar, operating or fiscal year, together with the amount of interest on and become due and payable during year then next ensuing, then any ~xcess over such surplus .tenance Account or to may also direct that principal o2 the bonds which will the calendar, operating or fiscal the Common Council may transfer to either the Operation and Main- the Depreciation Account. The Council any such excess over such required surplus may also be used in the purchase or redemption of outstanding bonds prior to maturity at a price not exceeding the then applicable redemption price and on such terms as are provided in the ~onds so being called for redemption. No further payments need be made into the Bond and Interest Redemption Account when the amount contained therein amount of the principal of the bonds then interest thereon to the dates of maturity equals or exceeds outstanding and thereof. the Ail of the funds of said several accounts shall be deposited' in lawful depositories of the City, and shall be continuously held and secured or invested as provided by the laws of Indiana relating to the depositing, securing, holding and investing of public ~unds. The funds in said Bond and Interest Redemption Accoun~ shall be kept in a separate bank account apart from all other bank accounts of the City. In no event shall any of the revenues of said waterworks be trans- ferred or used for any purpose not authorized by this ordinance so long as any of the bonds issued pursuant to the provisions of this ordinance shall be outstanding. Sec. 5. For the purpose of procuring funds with which to pay the cost of construction and installation of the exten- sions, additions and improvements to its waterworks, the City'~ of Carmel shall issue its revenue bonds ~nder and pursuant to the provisions of this ordinance and said Act, which bonds shall be payable only out of the special Bond and Interest Redemption Account hereinabove referred to, subject to the prior servicing of the outstanding 1965 Bonds, but on a parity with the outstanding 1971 Bonds, the 1974 Bonds and the 1977 Bonds hereinbefore referred to, in accordance with the terms thereof. The bonds authorized by this ordinance shall be designated as "Waterworks Revenue Bonds of 1982," shall be in a principal amount not exceeding' Nine Hundred Ninety Thousand - 7 - Dollars ($990,000), in the denomination of Five Thousand Dollars ($5,000) each, numbered consecutively from 1 up, dated as of the first day of the month in which said bonds are. sold, and shall bear interest at a rate not exceeding fiftee ercent (15 1/2%) per annum, the exact rate or'rates to be determined by bidding, Which interest shall be payable semi-annually on MaY 1 and November 1 in each year, beginning on November 1, 1982, and shall be evidenced by'coupons attached to said bonds. Both bonds and interest cou'pons shall be payable at the Union State Bank, in the City of Carmel, Indiana, or, at the ~ption of the holder, at the principal office of Merchants National Bank & Trust Company of Indianapolis, in the City of Indianapolis, INdiana, in lawful money of the United States of America, and said bonds'shall mature on November 1 in the years and amounts as follows: Years' Amounts Years Amounts 1983 $ 20,000 1991 1984 25,000 1992 1985 30,000 1993 1986 '30,000 1994 1987 35,000 1995 1988 40,000 1996 1989 50,000 1997 1990 55,000 $ 65 000 70 000 85000 95 000 110.000 130000 150.000 The bonds of this issue maturing November 1, 1992, and there- after shall be redeemable at the option of the City, in whole or in part, on May 1, 1992, or any interest payment date there- after, in their inverse order, at faCe value, together with the following premiums: 4% if redeemed on May 1, 1992, or thereafter on or before November 1, 1996; 2% if redeemed on May 1, 1997, or thereafter prior to maturity; plus' in each case ac6rued interest to the date fixed for redemption. Sec. 6. Said bonds shall be signed in the name of the City ~f Carmel by the manual or facsimile signature of the Mayor and shall be attested by the manual or facsimile signature of the Cler'k-Treasurer, who shall affix the seal of the City to each of said b~nds, provided one of said signatures must be manual. The interest coupons attached to said bonds shall be executed by placing thereon the facsimile signatures of the Mayor and Clerk-Treasurer. 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 regis.- tered. Upon presentation of ~he bonds at the office of the Clerk-Treasurer in the City of Carmel, said Clerk-Treasurer shall register said bonds as to the principal thereof, without Charge or expense to the holder. Such registry shall be noted on the ~bonds, after which no transfer thereof will be valid unless made by the registered owner in person or by his attorney duly authorized, and similarly noted on the bonds, but said bonds may be discharged from registry by being in like manner transferred to bearer, after which they shall be trans- ferable by delivery, but may again be.registered as before. The registration of any bond Shall not affect the negotiability of the interest coupons, attached thereto, but such coupons shall continue to pass by delivery merely and shall remain · payable to bearer. Sec. 7. -Notice of redemption of lished one time at least thirty (30) fixed for redemption and a second time at days prior to the date of redemption in a any bonds shall be pub- days prior to the date least fifteen (15) newspaper of~general - 9 circulation printed and published in Hamilton County and cir- culating in the City of Carmel, Indiana, .and in a newspaper or finahcial journal of general circulation published in the City of Indianapolis, Indiana. If any of the bonds so to be redeemed are registered, such notice shall also be mailed to the address 'of the registered holder as shown on the registra- tion records of the City. The notice shall specify the date and place of redemption and the numbers of the bonds called'for redemption. The place of redemption may be the place of pay- ment named in the bonds, or otherwise as determined 'by the City. 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 pay the principal of and premium and interest on the bonds so called for redemption, on the date fixed in said notice and thereafter when presented for payment. Coincidentally with the payment of the redemption price, the bonds so called for redemption shall be surrendered for cancellation, together with the unmatured interest coupons appurtenant thereto. Sec. 8. The form and tenor of said coupons to be attached thereto, and the endorsement thereon, shall bonds, the interest form of registry be substantially as follows, to-wit: State of No. UNITED STATES OF AMERICA Indiana County of Hamilton CITY OF CARMEL WATERWORKS REVENUE BOND OF 1982 The City of Carmel, in Hamilton County, State of Indiana, for value received, hereby promises to pay to bearer, or if this bond be registered then to the registered holder hereof, solely out of the special revenue fund hereinafter referred to, the principgl amount of - 10 - FIVE-THOUSAND DOLLARS on the first'day of November, 19__, and to pay inter- est thereon from the date hereof until the principal .is paid at the rate of percent ( %) per annum, payable semi-annually on the first days of May and November in each year, beginning on November 1, 1982, upon presentation and surrender of the annexed coupons as they severally become due. Both principal and interest of this bond are pay- able in lawful money of the United States of America · at the Union State Bank, in the City of Carmel, Indiana, or, at the option of the holder, at the principal office of Merchants National Bank & Trust Company of Indianapolis, in the City of Indianapolis, Indiana. This bond is one of an authorized issue of one hundred ninety-eight (198) bonds of the City of Carmel, of like date, denomination, tenor and effect, except as to numbering, interest rates and dates of maturity, in the total amount of Nine Hundred Ninety Thousand Dollars ($990,000), numbered consecutively from 1 to 198 inclusive, issued for the purpose of providing funds to pay the cost of construction of extensions, additions and improvements to the munici- pally owned waterworks of said City, pursuant to an ordinance passed by the Common Council of said City on April , 1982, entitled "An Ordinance concerning the construction of extensions, additions and improvements to the municipal waterworks in the City of Carmel, authorizing the issuance of additional revenue bonds to provide for the cost thereof, and matters connected therewith," and in strict compliance with the provi- ~sions of the governing statutes, particularly IC 19-3-17, and all acts amendatory thereof or supple- mental thereto. The principal and interest of this bond and all other bonds of said issue, and any bonds ranking on a parity therewith, are equally and ratably secured by and constitute a charge upon fifty-eight percent (58%). of the gross income and revenues of the municipally owned waterworks of the City as the same now exists or may hereafter be improved or extended, which per- centage of such income and revenues is to be deposited in a ~pecial fund designated as the "Bond and Interest Redemption Account,"' heretofore duly created; all subject, however, to the proper payment in accordance with the terms thereof of the interest on and prin- cipal of certain now outstanding Waterworks Revenue Bonds of 1965, bearing interest at the rates of three and three-fourths percent (3-3/4%) or three and seven-eighths percent (3-7/8%) per annum, depending upon the maturity, issued under date of October 1, 1965, now outstanding in the principal amount of Two Hundred Forty Thousand Dollars ($240,000), maturing annually over a period ending November 1, 2000, which bonds.were authorized by Ordinance No. A-8, adopted on July 10, 1965, and constitute a first charge upon the revenues allocated to said Bond and Interest Redemp- tion Accouht; and that the principal and interest of - 11 - this'bond and all other bonds of said issue shall rank · on a parity with bonds issued pursuant ·to Ordinance No. A-18, as amended, adopted on April 12, 1971, now outstanding in the principal amount of Eight Hundred Thirty Thousand Dollars ($830,000), bearing interest at a rate of six and one-half percent (6-1/2%) per annum, issued under date of September 1,· 1971, and · maturing annually over a period ending November 1, 1996, ~and on a parity with bonds issued pursuant to Ordinance No. A-43 adopted March 26, 1974, now out- 'standing in the principal amount of Three Hundred Seventy-five Thousand Dollars ($375,000), bearing interest at the rate of six and three-quarters percent (6-3/4%) or seven and one-fourth percent (7-1/4%) per annum depending upon the maturity and maturing annually over a period ending November 1, 1992, and on a parity with bonds issued pursuant to Ordinance NO. A-49, adopted March 7, 1977, now outstanding in the principal amount of Four Hundred Eighty Thousand Dollars ($480,000), maturing annually over a period ending November 1, 1995, and bearing interest at the rates of five and thirty hundredths percent (5.30%) per annum or five and seventy hundredths percent (5.70%) per annum, depending on the maturities. 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 indebted- ness of the City within the provisions and limitations of the constitution of the State of Indiana. The bonds of this issue maturing on November 1, 1992, and thereafter shall be redeemable at the option of the City on May 1, 1992, or any interest payment date thereafter in whole or in part, in inverse numerical order, at face value, together with the following premiums: 4% if redeemed on May 1, 1992, or thereafter on or before November 1, 1996; 2% if redeemed on May 1, 1997, or thereafter prior to maturity; plus, in each case, accrued interest to the date fixed for redemption; provided notice of said redemption shall be given one time at least thirty (30) days, and a second time at least fifteen (15) days, prior to the redemption date by publication in a newspaper of general circulation printed and published in Hamilton County and circulated in the City of Carmel, Indiana, in a newspaper or financial journal published in the City of Indianapolis, Indiana, and a notice shall be sent by mall 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 sur- · rendered for cancellation, together with unmatured interest coupons appurtenant thereto. - 12 - 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 waterworks which will be sufficient to pay all costs of operation and maintenance of said waterworks, to provide a proper and adequate deprecia- tion account, and to create and maintain the sinking fund required for the payment of all bonds which by their~terms are payable from the revenues of said waterworks, 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 statute§, including the right to compel the collection of suffi.cient rates and charges to provide for the payment of this bond and the interest hereon. This bond and ail other bonds of said issue shall, in the hands of bona fide holders, have all of the qualities of negotiable instruments under the laws of the State of Indiana. This bond may be registered in the name of the owner, in the manner and with the effect provided in said ordinance, but unless regis- tered 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 execution, issuance and delivery of this bond have been done and performed in regular and due form as provided by law. IN WITNESS WHEREOF, the City of Carmel, in Hamilton County, State of Indiana, has caused this bond to be signed in its corporate name by the facsimile signature of its duly elected, qualified and acting Mayor, its corporate seal to be hereunto affixed and attested by its duly elected, qualified and acting Clerk-Treasurer, all as of the first day of , 1982. Attest: CITY OF CARMEL . Clerk-Treasurer Interest Coupon) Coupon No. On. 1, 19 , the City of Carmel, Indiana, will pay to.b-~er, at,he Union State Bank, in the City of Carmel, Indiana, or, at the option of the - 13 - holder, at the principal office of Merchants National Bank & Trust Company of Indianapolis, in the City of Indianapolis, Indiana, 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 1982, dated , 1982, No. CITY OF CARMEL dF',~acslmile) (facsimile) Clerk-Treasurer REGISTRATION ENDORSEMENT This bond can be registered only at the office of the Clerk-Treasurer of the City of Carmel, Indiana. No writing hereon except by the Clerk-Treasurer. Date of Registry .In Whose Name Registered Clerk-Treasurer Sec. 9. 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 coupons to be attached thereto in the form and manner hereinbefore provided. The Clerk-Treasurer is hereby authorized'to sell said bonds at public sale. Prior to the sale of the bonds, the Clerk-Treasurer shall cause to be published a notice of sale once each week for two weeks in The Noblesville Ledger, and The Noblesville Times, and one time in The Indianapolis Commercial. The date fixed for the sale shall be not earlier than seven (7) days after the last of said publications. 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 the bonds are being issued, the terms and conditions, for which including ]¸4 -- provisiohs for insurance on said bonds, on which bids will be received and the sal~ made, and shall set out such other infor- mation as the Clerk-Treasurer, acting on the advice of the City Attorney and bond counsel, shall deem necessary. All bids for said. bonds shall be sealed and shall be pre- sented to the Clerk-Treasurer at his office. Bidders shall be required to name the rate or rates of interest which the bonds are to fixed. (i/8) bear, not exceeding the maximum rate hereinbefore Such interest rates shall be in multiples of one-eighth or One-tenth (1/10) of one percent (1%), and not more than four (4) interest rates shall be named by each bidder. The rate bid on any maturity shall be equal to or greater than the'rate bid on the immediately preceding maturity. The Clerk-Treasurer shall award the bonds to the highest qualified. 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 Clerk-Treasurer. shall have the right to reject any and ali. bids, and in the _. event no satisfactory bids are received, the Clerk-Treasurer shall be authorized to continue the sale from day t~ 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. .The Clerk-Treasurer shall obtain a legal opinion as to the · validity of the bonds from Ice Miller Donadio & Ryan, acting as band counsel for the City, and 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 - 15 which said bonds are issued and shall be paid out of the pro- ceeds of said bonds. Sec. 10. 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 Clerk- Treasurer~ shall be authorized to sell and deliver 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, special revenue obligations of the City payable out of the income and revenues of the waterworks system of said City according to their tenor and effect, and the proceeds derived'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, additions and improvements to said water- in connection in connection with the payment of works and the expenses necessarily incurred therewith, including the expenses incurred the issuance and sale of the bonds, and for interest accruing on the bonds during the period of construc- tion, if required for that purpose. 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 out the provisions of this ordinance. 11. Any accrued interest and any premium received at of the delivery of the bonds shall be deposited in the Interest Redemption Account hereinbefore referred to. from the sale of banks which are for the funds of the bonds shall be' legally designated and the City~ in a special to carry Sec. the time Bond and The remaining proceeds deposited in a bank or qualified depositories - 16 - account or accounts to be designated as "City of Carmel, 1982 Waterworks Construction Account." Each of such special accounts shall be deposited, secured and held or invested as provided by the laws relating to the depositing, securing and holding or investing of public funds, including I.C. 5-13-1, as may be amended or supplemented from time to time by the Indiana Gen- eral. Assembly. The funds in such special account or accounts shall be expended for the purpose of paying the cost of the extensions, additions and improvements to said waterworks as herein authorized, the incidental expenses incurred in connec- tion therewith and with the issuance of bonds, and for the 'payment of interest accruing on the bonds during the period of construction, if required for that purpose. Any balance or. balances remaining unexpended in such special account or accounts after the completion of the works, 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 Account. Sec. 12. 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 water- works. There shall be prepared and furnished to the original purchaser 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 annual fiscal period, complete opera- ting and income statements of the waterworks, in ~easonable detail covering such annual fiscal period, which statements shall be certified by the Clerk-Treasurer or a certified public accountant retained for the purpose of making an accounting - 17 - study of the records of said waterworks. Copies of all such statements and reports shall at ali. times be kept on file in the office of the Clerk-Treasurer. Any 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. '13. 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 ~ufficient to pay t~e 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 all bonds which by their terms are payable from the revenues of the waterworks, as the same become due, and provide a surplus or margin of ten percent (10%) of the principal and interest due each year. So long as any of the bonds herein authorized are outstanding, none of the facilities and service 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 revenue so received shall be deemed to be revenue derived from the operation of the waterworks and shall be used and accounted for in the same manner as other revenues derived from the operation of the waterworks. Sec. 14. The City reset?es the right to-authorize and issue additional bonds, payable ou~ of the revenues of the waterworks, of equal priority with the bonds authorized by this ordinance, for the purpose of financing the cost.of future - 18 additions, extensions and improvements to the waterworks, or refund any outstanding bonds, subject to the following con- ditions: (a) from the to The interest on and principal of all bonds payable revenues of. the waterworks shall have been paid to date in accordance with the terms thereof, and all required payments into the Bond and Interest Redemption Account have been made in accordance with the provisions of this ordinance. (b) (1) The amount of gross revenues of the waterworks allocated'by Sec. 4(c) of this ordinance to and deposited in the Bond and Interest Redemption Account in the calendar year immediately preceding the issuance of any such additional equal priority bonds 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 equal priority bonds proposed to be issued; or (2) Prior to the issuance of said equal priority.bonds, the proportion of the gross revenues allocated to said Bond and Interest Redemption Account shall be increased sufficiently so that said increased proportion applied to the previous calendar year's gross, revenues would have produced revenues in said Bond and Interest Redemption Account for said year equal to not less than one hundred twenty-five percent (125%) of the maximum annual interest and principal requirements of the then out- standing bonds and the additional'equal priority bonds proposed to be issued; or (3) Prior to the issuance of said equal priority bonds, the water rates and charges.shall be increased sufficiently and the proportion of gross revenues allocated to said Bond and Interest Redemption Account increased sufficiently so that said increased water rates and charges applied to the previous calendar year's'operations would have produced gross revenues - ].9 in an amount so that such proportion thereof allocated to said Bond and Interest Redemption Account for said year would have equaled not less than one hundred twenty-fire-percent (125%) of the maximum annual interest and principal requirements of ~he then outstanding bonds and the additional equal priority bonds~ proposed to be issued. (4) 'Provided, however, that if the bonds being issued are to refund outstanding bonds, the parity tests in this sub- section shall be applied to either the refunding bonds or the bonds to be refunded, but not to. both. (5) 'For purposes of this subsection, the rec6rds of the waterworks shall be analyzed and all showings shall be prepared by a certified publlc accountant retained by the City for that purpose who shall certify that the foregoing conditions for parity have been satisfied. (c) To the extent required by law, the issuance of the proposed additional equal priority bonds and any necessary increase in water rates and charges shall have been approved by the Public Service Commission of Indiana. (d) The interest on said bonds shall be payable semi- 9nnually on May 1 and November 1, and the principal on said bonds shall be payable annually on November 1, in the years in which principal and interest are payable. Sec. 15. For the purpose of further safeguarding the interests of the holders of the bonds, it provided as follows: (a) All construction contracts to be is s~ecifically let shall be let to responsible contractors who shall be required to furnish con- struction bonds running to the City of Carmel, in an amount equal to one hundred percent (100%) of the amount of such contracts, to insure the completion of such contracts in accordance 'with their terms, and such'contractors shall be - 20 - required to carry such employer's liability and public liability insurance as are required under the laws of the State of Indiana in the case of public contracts. (b) The extensions, additions and improvements shall be contracted~ for and constructed pursuant to the plans and specifications prepared by Howard Needles Tammen & Bergendoff, consulting engineers of Indianapolis, Indiana, and constructed under their supervision such other consulting engineers as may hereafter be employed by the City. 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 reasonable cost. (d) So long as any of the bonds herein authorized are outstanding, 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. Ali. insurance shall be placed with responsible insurance companies qualified to do business in the State of Indiana, and any insurance proceeds collected shall be used in replacing the property destroyed or damaged. (e) So long as any of the bonds herein authorized are outstanding, the City shall not mortgage, pledge or otherwise encumber its waterworks'or any part thereof, and shall not sell, lease or otherwise dispose of any portion thereof except such property or equipment as may become surplus, worn out or obsolete; nor shall the City execute or issue any additional bonds or other obligations pledging any portion of the revenues of said waterworks, except as provided in Sec. 14 of this ordinance, unless the same be made subordinate and junior in all respects~to' the bonds herein authorized. - 21 - (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 revenues of the water- works 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 (g) The provisions contract by and between ordinance set forth. of this ordinance shall constitute a the City of Carmel 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 privi- leges, either expressly set forth in the provisions of IC 19-3-17, and all acts amenda~ory thereof and supplemental thereto, or implied there~n, including the right to compel the collection of sufficient rates and charges to provide for the payment of the bonds issued hereunder and the interest thereon. Sec. 16. Ali. ordinances and parts of ordinances in con- flict herewith are hereby repealed; provided, however, that none of the provisions of this ordinance shall be so construed as to. repeal or modify the provisions of the Ordinances autho- rizing the now outstanding bonds, So long as 'said bonds are outstanding. - 22- Sec. 17. If, when the bonds issued hereunder shall have become due and payable in accordance with their terms, and the whole amount of the principal and the interest so due and pay- able upon all of the bonds and coupons then outstanding shall be paid; or(l) sufficient moneys, or (2) direct obligations of, or obligations the principal 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 (3) time certificates of' deposit fully secured as to both principal and interest by obligations of the kind described in (2) above of a bank or banks the principal of and interest on which when due will provide sufficient moneys, shall be held in trust for such purpose, and provision shall also be made' for paying all fees and expenses for the redemp- tion, 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 waterworks. Sec. 18. This ordinance shall from and after its passage. Passed and.~ad°pted by the Common Council Carmel on the · ~---. day of April, Attest: be in full force and effect of the City of 1982. Presented by me to the Mayor of the City-of ~_~ day of~, 1982, at the hour of /~/d-)-~?~-~'Carmel on the - 23 - This ordinance approved and signed by me on the day 1982, at the hour of /~.'Os"~.m. - 24 -