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HomeMy WebLinkAboutA-49, Const. Extensions, Additions, Improvements ORDINANCE NO? An Ordinance Concerning the construction of extensions, additions and improvements to the municipal waterworks of the City of Carmel, authorizing the issuance of,revenue bonds provide for the cost thereof and all matters connected therewith. This Io~rum~ot, Recorded,. ~l.l~ ~. HEPGFS, RECORDER, WHEREAS, the City of Carmel, ~ndiana is ,the..,owner and operates an unencu~bered"waterworks system furnishing the public water supply to said City and its inhabitants; and WHEREAS, the City has determined that said waterworks is in need of certain extensions, additions and improvements' in order to provide an adequate volume and quality of water at proper pressure to the inhabitants of the City and for fire protection; and that said extensions, additions and improve- ments are required in order to protect properly the health, well being and property of the City and its inhabitants; and WHEREAS, the Town has employed Clyde. E. Williams & Associates, Inc., consulting engineers of South Bend, Indiana and Indianapolis, Indiana, to determine the extensions, addi- tions and improvements required and the costs thereof and to prepare.plan~, specifications and estimates therefor; and the City has..found from .the existing unsatisfactory report of said engineers that the conditions can be remedied by the con- struction of certain extensions, additions and improvements consisting of rights-of-way, land acquisitions, a new well of approximately 1,000 gpm capacity, approximately 4,500 feet of raw water transmission main, a 1,000,000.gallon ground storage reservoir, pumps and all other necessary appurtenances to be constructed according to said plans, specifications and esti- mates prepared by Clyde E. Williams & Associates, Inc.; and WHEREAS, the City haS heretofore advertised for and received bids for the construction of such extensions, addi- tions and improvements to said waterworks and on the basis of : bids"and estimates as to the expenses and costs, both construc- tion and non-cons{ruction -~ ............. - ' ........ , ~?lgz._q?.St of' sa.].d~ pro3ect, w:l. ll-be in the amount o15 Seven Hundred ghi~rty-three Thousand ~our Hundred Eleven Dollars ($733,411) and th~City has on hand for applica- tion on such~costs the amount of'Two Hundred. Thirteen Thousand Four'Hundred Eleven Dollars~..¢$213,411) and that the remaining balance of said project in the amount of Five Hundred Twenty Thousand Dollars ($520,000) 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 WHEREAS, pursuant to Ordinance No. A~8 adopted by the Board of Trustees of the Town of Carmel on the 10th day of July, 1965, Ordinance No. A-18, as amended, adopted by the Board of Trustees of the Town of Carmel on the 12th day of · April, .1971, and Ordinance_NQ. A-43 adopted by the' Board of Trustees of the Town of Carmel on the 26th day of March, 1974, the City has heretofore issued and now has outstanding three series of bonds payable from the revenues of said waterWorks; and WHEREAS, A-8 (the "1965 gate principal the series issued pursuant to Ordinance No. Bonds") are now outstanding in the total aggre- amount of Two Hundred Sevent~ Thousand Dollars ($270,000) maturing annually over a period ending November 1, 2000, which bonds constitute a first charge on the revenues of said waterworks provided that under the' ter~s and conditions of ~said bonds th~ City has the right to issue additional water- works revenue bonds provided such additional bonds are made junior and subordinate to said 1965 Bonds; and WHEREAS the series of bonds issued pursuant to Ordi- nance No. A-LB, as amended, (the "1971 Bonds") are now out- standing in a total aggregate principal amount of Nine Hundred -2- Eighty'five Thousand'Dollars. ($985,000) maturxnq, annually over a period ending November 1, 1996, which bonds are ]unior and. subordinate to the 1965 Bonds; and WHEREAS, the series of. bonds issued pursuant to Ordi- nance NO..:A-43 are now outs%anding mn the aggregate principal amount_of Four Hundred Seventy-five Thousand Dollars ($475,000) 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 Ordinances authorizing the 1971 Bonds and the 1974 Bonds permit the issuance of additional revenue bonds ranking on a parity with said series of revenue bonds; provided certain'conditions are met, which conditions the City finds can be met; now therefore, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA: Section 1. That the City'of Carmel being the owner of and engaged in the operation-of a waterworks system supplying the City and its inhabitants with a public water supply now ~rovide for certain needed extensions, additions and improve- ments of such w~terworks by the issuance of revenue bonds pay- aDle solel~ from the revenues and receipts of such waterworks pursuant to and in the manner prescribed in the Indiana Code, Title 19, Article 3, Chapter 17, and all laws amendatory.or supplemental thereto (sometimes hereafter referred to as the "Act"); provided however, that the revenue bonds authorized by this Ordinance shall be on a parity with the 1971 Bonds and the 1974 Bonds; and provided further that the revenue bonds author- ized 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 -3- holders o said 1965 Bonds, . The terms Waterworks," "Water System," "SyStem and Waterworks System" as were used in this Ordinance shall be construed to mean and include the existing Waterworks system owned by the City of Carmel, Indiana, and.all extensions, additions and improvements thereto and replacements thereof now or ~ubsequently constructed or acquired. Section '2. Said extensions, additions and improvements as described in the'preamble hereto Shall be constructed and installed in accordance with the plans, specifications and esti- mates prepared by Clyde E. Williams,.'Inc., consulting engineers of' South Bend, Indiana and Indianapolis, Indiana. Section 3. The City shall proceed with 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 for the making of said extensions, additions and improvements, and the refunding, and the issuance of the required amount'of bonds. (b) That the principal and isterest of the bonds issued on account of such extensions, additions and improvements, and the refunding, shall be paid solely and exclusively from the revenues Of said waterworks system and shall not constitute a general obligation of.the City. Section 4. The income and revenues of the existing waterworks, together with the income and revenues of all exten- sions,.additions and improvements thereto and replacements thereof made pursuant to this Ordinance, or subsequently, shall be set aside into a separate and special fund to be used and applied in the maintenance and operation thereof, in establish- ing a depreciation account, and payment of the now outstanding revenue bonds and the revenue bonds authoriZed by this Ordi- nance and the interest thereon. The proportion of the gross revenues of said waterworks shall be paid into the several -4- '-" -" · ', ....... : ..... - 347 accounts of said'_sp~e±a~ fund, heretofore established by Ord±- nance No. A-8, adopted en July 10, 1~5, is hereby fixed and- ao Operation and ~aintenan~e Ao¢ount. Thirty--six cent (3~%) of the gross revenues of sa±d'.wate~orks sha,ll,~d paid into the "Operation and ~aintenance Aooount," a~:sha-ll ~e operation and maintenance of the waterworks, inoluding taxes require~ ~o be'paid. The su~ so set aside for operation and maintenance shall 5e appl±ed exolusively ~o that purpose until & surplus shall have ~een aocu~ulate~ in the ©peration and ~aintenance Aoooun~.which shall 5e equal to the cost of mainta±ning and operating the waterworks during the remainder cost of ma±nta±ning and operating the waterworks during the calendar, operating o~ £iscal year then next ensuing. excess over .such surplus may ~e transf~rred:~y the City to either the Depreciation Aooount or the Bond and Interest Hede~p- b. Depreciation Account. Six per cent (6%) of the gross 'revenues of said waterworks shall be paid into the "Depre- ciation Account," and shall be expended in making good deprecia- 'tion in the waterworks, or in new construction, extensions or additions to the property of the system. Any accumulation in such Depreciation Account not required for immediate use may be invested as provided by the laws governing the investment of municipal funds, and if so invested, the income from th~ invest- ment shall accrue to the Depreciation Account. Said account shall not be used for any purpose other tha~ as herein provided. c. Bond and Interest Redemption Account. Fifty-eight per cent (58%) of the gross revenues of the waterworks shall, as such revenues are received, be set ap~rt and paid into the -5- ~he pal accordance with the2terms thereof, and on and principal of the i971 interest on and principal of provisions of this Ordinance special account identified as the "Bond and Interest Redemption Account." The funds in~ said account shall be used solely for purpose of (1) first paying the interest on and the princi- of the 1965 Bonds issued pursuant to Ordinance No. A-8, in (2) paying the interest Bon.~,~he 1974 Bonds .and the the bonds issued pursuant to the in accordance with the terms here- of, and any bonds hereafter issued ranking on a parity ~there- with, to' the extent required for said purpose. If and when a surplus shall be created in excess of the interest on and prln- cipal of the bonds, plus ten per cent (10%) during the then current calsndar, operating together with the amount of interest on and which are payable or fiscal year, principal of the bonds which wilt become due and payable during the calendar, operating or fiscal year then next ensuing, then the City may transfer any excess over such required surplus to either the Operation and Maintenance .Account or the Depreciation Account, or may direct that any such excess plDs shall be used in the purchase bonds at a price not exceeding the price specified in the Ordinance said bonds. No further payments Interest Redemption Account when funds over such required sur- or redemption of outstanding then applicable redemption authorizing the issuance of need be made into the Bond and the amount contained therein equals or exceeds the~amount of the principal of the bonds then outstanding and interest thereon to the dates of maturity thereof. .The City shall not be obligated to pay said bonds or the interest thereon except from said special fund and said bonds shall not constitute an indebtedness of the City within the meaning of the provisions and limitations of the constitution of the State of Indiana. ~ -6- 'Section 5.. For the purpose of procuring funds to apply on the cos~ of construction' and installation of the extensions, additions and improvements to its waterworks, the City of Carmel shall issue its revenue bonds under and pursuant to the provi§ions _of this Ordinance' and said Act, which bonds shall be payable only3o.qt of the special Bond and Interest Redemption Account hereinabove referred to, subject to the prior servicing of the 0utstanding 1965 Bonds, hereinabove referred ~o~ in accordance with the terms thereof. The bonds authorized by this Ordinance shall be designated as "Waterworks Revenue Improvement Bonds of 1977" and shall be in a principal amount not exceeding Five Hundred Twenty Thousand Dollars ($520,000) numbered consecutively from one (1) up to one hundred four (104) inclusive, 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 seven .per ce~t (7%) per annum (the exact rate or rates to be determined by bidding) which interest shall be payable on November 1, 1977, and each May 1 and November 1 thereafter and such interest shall be evidence, d by coupons attached to said bonds. Both bonds and interest coupons shall be payab, le 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 Indianap- olis in the City of Indianapolis, Indiana, in lawful money of the United States of America, and said bonds shall mature seri- ally on November Years 1978-1981 1982-1985 1986-1989 1990-1991 1992- 1993. 1994-1995 The bonds 1 in the years and amounts as follows: incl. incl. incl. and thereafter shall be Amounts $10 000 .15 000 20 000 25 000 30 000 80 000 90 000 of this issue maturing on November 1, 1987, redeemable at the option of.the City, -7- -in whole or in part on M~y 1, 1987, 151 or any interest payment date thereafter, in their inverse numerical order, at face value, together with the following premiums':~.- 4% if redeemed on May 1, 1987, or thereafter on or before November 1, 1991; 2% if redeemed on May 1, 1992, or thereafter ~' prior to.maturity, plus in each case accrued interest to the date fixed for redemp- tion. Notice of'such redemption shall be published one time at least thirty (30) days prior to the date fixed for redemption 'and a second time at least ~fteen (15) days prior, to the date 0f redemption in a newspaper of. general circulation printed and published in Hamilton County and circulating in the City of -Carmel, Indiana, and in a newspaper or financial journal of general circulation published in the City Of Indianapolis, Indiana. If.a~y of the bonds so to be redeemed are registered,. such notice shall also be mailed t0 the address of the regis- tered holder as shown on the registration records of the City. The no~iee 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 payment 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 redemp- tion 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. Coincident- ally 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. Section 6. Said bonds shall be signed either manually or by facsimile signature in the name of the City by the Mayor and a~tested by the Clerk-Treasurer of said City who shall -8- affix-the seal of the City ~o each of said bonds. 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 officers whose signa~ur~ appears on the bonds or coupons shall cease to be such officer'before the ...... ;: delivery of such bonds such~-signature shall nevertheless be~x~ valid and sufficient for all purposes the same as if such offi- cer had remained in office until delivery thereof. Said bonds shall have all of the qualities and~incidents of negotiable ~ instruments under the law of the Sta~e of Indiana. Said bonds- shall~be negotiable by delivery unless registered. Upon presen- tation of any of the bonds at the office of the Clerk-Treasurer of the City of Carmel, Indiana, said Clerk-Treasurer shall register said.bonds as to the principal'there0f without charge or expense to the holder. ~uch register shall be noted on each bond presented after which no transfer thereof shall be valid unless made by the registered owner in person or by his attor- ney duly authorized and similarly noted on such bond but said bonds may be discharged from registry by beinq in like manner transferred to bearer after which they shall be transferable by delivery but may again be registered as before. The registra- tion of any bonds shall not affect the negotiability of the interest coup6ns attached thereto but such coupons shall con-. tinue to pass by delivery and shall remain payable to bearer. Section 7. The form and tenor of said bonds, the inter- est coupons~ to be attached thereto, and registration endorse- ment thereof shall be substantially as follows, to-wit: State No.. WATERWORKS UNITED STATES OF AMERICA of Indiana County of Hamilton $5,000 CITY OF CARMEL REVENUE IMPROVEMENT BOND OF 1977 ~'~i?'~.,~·:~-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, to the · registered holder hereof, solely out of the special · revenue ~fund hereinafter referred _to,~ the principal amount of · FIVE THOUSAND DOLLARS on the first day of November, 19' (un~ess this bond be subject to and called for pri~.~.redemption· and payment provided therefor), and to?pay' interest ~thereon from the date hereof until the principal is paid at the.rate of p~r cent '( %) per annum payable s~mi-annually on th~ first days of May and November in each year, beginning on November 1, 1977, upon presentation and surrender of the annexed coupons as· they severally become due. Both principal and interest of this bond are payable in lawful money·of the United States of America at the 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 Indian- apolis, Indiana. This bond is one of an authorized issue of one hundred four (104) bonds of the C~ty of Carmel, of like date, denomination, tenor and effect, except as to numbering, dates of maturity and rates of inter- est, in the total· amount of Five Hundred Twenty Thousand Dollars ($520,000) numbered consecutively from 1 to 104 inclusive, issued for the purpose of providing funds to apply on the cost of construction of extensions, additions and improvements to the municipally owned waterworks of said City, pursuant to an ordinance passed by the City on 19 , entitled "An Ordinance concerning the construc- tion of extensions, additions and improvements to the municipal waterworks of the City of Carmel, authorizing the issuance of additional revenue bonds to provide for the cost thereof, and matters con- nected therewith," and in strict compliance with the provisions of the governing statutes, particularly Title 19, Article 3, Chapter 17 of the Indiana Code, and all laws amendatory thereof or supplemental 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 per cent (58%) of the gross income and revenues of the munici- pally owned waterworks of the City as the same now exists or may hereafter be improved or extended, which percentage of such income and revenues is to be deposited in a special 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 principal of certain now outstanding ' ~' * Waterworks Revenue Bonds of 1965, bearing interest at the rates of three and three-fourths per'dent (3-3/4%) or three and seven-eighths per cent (317/8%) per, annum, depending'upon the maturity, issued under d-ate~of.October.l., 1965, now outstand- ing in the principal amount of Two Hundred Twenty Thousand Dot-l~s._.(i$220,000),*maturing annually over a period ending.-:No~ember 1, 2000, which bonds were authorized b~.Ordinance No. A-8, adopted on July 10, 1965, .and constituting a first cha~ge upon the reve- nues allocated*~to said Bond and Interest Redemption Account;.and that the principal and interest of this bond and all. other bonds of said issue shall rank on a parity with ~onds issued pursuant to Ordinance.No. A-18, as amended~ adopted;on April 12, 1971, now out- standing in the*principal amount of Nine Hundred .. Eighty-five Thousand Dollars ($985,000), bearing interest at a per annum rate of six and three- eighths per cent (6-3/8%) or six and one-half per cent (6-1/2%), depending upon the maturity, issued under the date of September 1, 1971 and maturing annually over a period ending November 1, 1996, and ~n a parity with bonds issued pursuant to Ordinance No. A-43 adopted March 26, 1974, now outstanding in the principal amount of Four Hundred Seventy-five Thousand Dollars ($475,000), bearing interest at the rate of six and one-half per cent (6=1/2%) or seven and one-fourth per cent (7-1/4%) per annum depehding upon the maturi*ty and maturing annually over a period ending November 1, 1992. The City shall not be obligated to pay said bonds or the interes= 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 cor- porate.indebtedness of the City within the provisions and limitations of the constitution of the State of Indiana. The bonds of this issue maturing oh November 1, 1987, and thereafter shall be redeemable at the option of*the City on May 1, 1987, 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, 1987, or there- after on or before November i, 1991; 2% if redeemed on May 1, 1992, or there- after prior to maturity; plus, in each case, accrued interest to the date fixed for redemption; provided notice of said redemp- tion 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 pub- lished in Hamilton County and circulated in the City of Carmel, Indiana, in a newspaper or financial jour- nal published in the City of'Indianapolis, Indiana, and a notice shall be sent by mail to the holders of such bonds as are then registered. Interest on the bonds so called for redemption shall cease on the redemption date fixed in said notice, if funds are available at the place of redemption to redeem the bonds where presented. The bonds so redeemed prior -11- to maturity ~hall be surrendored for cancellation together with unmatured interest coupons appurte- nant thereto. The City covenants that it will, to the f~llest extent permitted by law, fix, maintain and-:col:lect 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 depreci- ation a~count, and to create and maintain the sinking fund required for the payment of all bonds ~hich by their terms are p~Fable from the revenues of said waterworks, and that it will in all other respects faithfuliy Compiy with all of the provisions of the governing statutes pursuant to which this bond is issued. In the event the City shall made any default in the payment of the principal of or interest On this bond,' the holder'hereof shall hav~ all of the rights and remedies provided by the governing stat- utes, including the right to compel the collection of sufficient rates and charges to provide for the payment of this bond and the interest thereon. This bond and all 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 registered shall pass by delivery. The inter- est coupons-attached here~to ~sh~ll 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 ~s 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 fac- simile signature of its duly elected, qualified and acting Mayor, its corporate seal to be ~ereunto affixed and attested by its duly elected, qualified and acting Clerk-Treasurer, and the interest coupons hereto attached to be executed by placing thereon of the facsimile 'signatures of the Mayor and Clerk- Treasurer, all as of the first day of , 1977. CITY OF CAR~EL Mayor Attest: Clerk-TreaSurer -12- the original purchaser of the bonds, ahd upon written request, to any holder of the bonds not more than ninety (90) days after the close of each annual fiscal period, complete operatinq_and income statements of the waterworks:;'-in reasonable detail:.c~er- ing such annual fiscal period, which s~a~ements shall be ~r'ti- fled by the Clerk~Treasurer or~.~a. competent auditor employed for the purpose of making an audit of the records of said water- works. Copies of all such statements and reports shall at all times be kep~ on file in the office of the Clerk-Treasurer. Any holder of the bonds shall have the r~ght at all reasonable times to inspect the waterworks and the records, accounts and data of ~he City relating thereto. Section 12. The City shall, ~o the fullest extent per- 'mitted 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 suffi- cient to pay the reasonabie and proper cost of the maintenance and operation of the waterworks, to provide a proper and reason- able 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 to create a surplus or margin of ten per cent '(10%) of the princi- pal 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 reason- able value of any facility or service'rendered to the City, or to any department, agency or instrumentality thereof, including the use of water for hydrants for fire protection or for any other purpose, shall be charged against the City and shall be paid for as the charges accrue, and the revenues so received -17- 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 wa te two rk s. ?:~-.~ ; ~' ~ Section 13. The City reserves the right~t6~uthorize and issue additional bonds, payable out of the reve~ues~of the waterworks, of equal priority with the bonds author~zed~by .this ordinance, for the purpose 6f financing the cost of future addi- tions, extensions and improvements to the waterworks subject to the following conditions: (a) .The interest on and principal of all bonds pay- able from the revenues of the waterworks shall have been paid to date in accordance with the terms thereof, and all required paymen.ts into the Bond and Interest Redemption. Account have been made in accordance.with the provisions of the'ordinances authorizing the now outstanding bonds and the provisions of this Ordinance. (b) (1) The amount of gross revenues of the water- works allocated by Section 4(c) of this Ordinance to and depos- ited in the Bond and Interest Redemption Account in the. calen- dar year immediately preceding the issuance of any.such addi- tional equal priority bonds shall be not less than one hundred twenty-five per cent (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 suffi- ciently so Ghat said increased proportion applied to the previ- ous calendar year's gross revenues would have produced revenues in said Bond and Interest Redemption Account for said year -18- · ~eq~al ~to not le~'S,~th~n one ~ufidred~ twenty-fi~e per cen{ (125%) · :' of the maximUm~ annual inter'est and principal requirements of' the then ou~sta.nding bonds and~.the_additional equal priority bonds" Prop'~ed ~ ~be ~ is sued; or~::~ (3') p~ior ~to the issuance :of,'said equal priority bonds, 'the water rates and charges sh.a~_l.~.l~?~be .increased Sufficiently and the proportion of gross. ~ve~ues allocated to said Bond and Interest Redemption Account increased sufficiently, so that rates and charges applied to the previous calendar year's oper- ations would have produced gross revenues in an amount so that the proport!qni~l~gca~ed to said Bond' and Interest Redemption Account for sgid year- wou~d have equaled not less than one hun- d~ed tw~nty-fiV~ per-cent (125%) of the maximum annual interest and Principal r~q~ireme~ts of. the then 0ut~tandin'g bonds and the additional equal priority bonds proposed to be issued. For purposes of this subsection, the records of the waterworks shall be analyzed an~ all showings shall be pre- pared by an independent certified public accountant emplOyed by the City for that purpose. (c). The interest on the additional parity bonds shall be payable semi=annua!ly on May 1 and November 1 and the prin- cipal shall be payable annually on November 1 in the years in which interest and principal' are payable. (d) The issuance of the proposed additional equal pri- ority bonds and any necessary increase in water rates and charges shall have been approved by the Public Service Commis- sion of Indiana in the manner and to the extent provided by law. Section 14. For the purpose of further safeguarding the interests of the holders of the bonds, it is specifically pro- Vided as follows: -19- ~ .' (a) All. construction contracts shall be le,t to ~ - responsible contractors who shali be, required to furnish con- structionibonds running to the City of Carmel, in an amount equal to~ohe'~'.hundred per cent (100%) of the amount of such c0ntractsT"to~insure the completion of such contracts in accordance_~ith their terms, ~nd such contractors shall be required~to carry such employer's liability and public bility ihsurance as are required under the laws of the State of Indiana in the case 'of public contract. (b) The extensions, additions and improvements shall be contracted for and constructed to the approval, of Clyde E. Williams & Associates, Inc., consulting engineers of South Bend, Indiana and Indianapolis, Indiana, now employed by the City, or sUCh other consulting engineers as may hereafter be employed by the City. All estimatss for work d6ne and mate- rial furnished shall first be checked by the consUlting engi- neers before being approVed by the City. (c) The City shall, at all times, maintain Said-water- works in good condition and operate the same in an efficient manner and at a reasonable cost. (d) So ~ong as any of the bonds herein authorized are outstanding, the City shall maintain insurance on the insur- able parts of the waterworks of a kind and in an amount such as is usUally carried by private companies engaged in similar type of business. All insurance shall be plac~d with respons- ible insurance companies qualified to do business in the State of Indiana~ and any insurance proceeds collected Shall bemused in replacing the prOperty destroyed or damaged. (e) So long-as any of the bonds herein authorized are outstanding, the C~ty 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 as may become worn out, obsolete or no longer needed; nor shall the City execute or issue any additional 'bonds or other ~bligations pledging any'portion of the reve- nues of said waterworks, except as provided in Section 13 of this Ordinance, unless the same be made subordinate and junior ~ in all respects to the bonds herein authorized. (f) The provisions '~his>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 to cre- ate a trust in the fixed proportion of the revenues of~.the . waterworks herein directed ~o be set apart and paid into the Bond and Interest Redemption Account for the uses and purposes of said accoun~ as in this Ordinance set forth. (g) The provisions of this Ordinance shall constitute a contract by and between 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 issu- ance 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 City adopt any law, ordinance or resolution in anyway, 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 Chapter 17, Article 3, Title 19 of the Indiana Code, and all laws amendatory thereof and {upplemental thereto, or implied therein, including the right to compel the collection of suffi- cient ra~es and charges to provide for the payment of the bonds' issued hereunder and the interest thereon. -21- 15. ,. . . . All ordinances and ..,. parts of ''''5' ..... '<,d~A, " .;&....::.l.>~.. ordinances in .'.. ..' conflict herewith are .hereby'repealed;provided, however, that none of the"provisions,of this Ordinance shall be so construed. '/ as to repeal or modi.fy the provisions of Ordfnance No. A".8:~m""u"":,,,',~;.. hereinbefore referred to; so. as to adverseilYll'affect. the righ'ts',:\::". interests or priorities of the holders of the outstanding.-,. r'"'" Waterworks Revenue Bonds of 1965 issued pursuant to said ordi.... nance. Section 16. If, when the. bonds secured hereby shall , '. . have become due and payable in accordance with their terms, or shall have been duly called for redemption, or irrevocable . . instructions so calling , the bonds for redemption shal1hav~ been given by the City; 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 sufficient moneys or direct obligations of the ~nited States Government'," the principal of and the interest. on, which, . when due will provide sufficient moneys, shall be held. in trust for such purpose under the provisions of.this:Ordinance,. and provision shall also be made for paying all "other sums pay'" able hereunder by the City, then and in that case,' the right, title and interesthereunder,shall thereupon cease,determine' and become void. Section 17. 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, Indiana, on the 11 day of '---1!1 ~ 19i7. Att~S'('''-~ /-/ J ~ ',/ / '6ir~ ' \ /' ,L ~ ~k"'Treasurer . C2t~(j],~ reSIding Of icer . ".22". '.~ , '. '.,",' . 151. ".;.1L.3.f3lL ...... . .'Presented byrne to the Mayor of .. ...... the City of Carmel, 1 of 721~ , 1977. .' ./ } . '. ./ ( ~~ /' , , .,. ~ . '. d-;;;;/" ....~~ '.' . Cl k-Treasurer . Indiana,' on this 1977 . day Approved and signed by me ontrhis-- '7 day of ;/Jl~,--, TlI1s Instrument ~ecordeil, IItNE M. HEOr.ES.RECOROER.HA tJ f), I/) .D41 N COUNTY. Irlil. . ^ . Mayor :x: ::u:: )> <- ~ '"T1 J: c:: OAl -:02 c::> ::0 rn Irnn"t -1("")J: - ::0" oc). . - rr1rr1 2:l;l:r: .~ .("')Orn ,,<: orno ~ :l;l G'") ::z:a o rr1 :z: rn :JC: ::00 0 V> . 0 --.I --.I -23-