HomeMy WebLinkAboutD-1814-06 $35 ml Waterworks Ban
SPONSOR: Councilor Kirby
ORDINANCE D-1814-06
AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF
CARMEL, INDIANA, SUPPLEMENTING AND AMENDING
ORDINANCE NO. D-1735-04, ADOPTED BY THE COMMON COUNCIL
ON DECEMBER 20, 2004, AS PREVIOUSLY SUPPLEMENTED AND AMENDED,
AUTHORIZING THE ISSUANCE OF WATERWORKS REVENUE BONDS,
AND THE ISSUANCE OF BOND ANTICIPATION NOTES IN ANTICIPATION
OF THE ISSUANCE OF SAID REVENUE BONDS, FOR THE PURPOSE
OF FL~ANCING THE CONSTRUCTION OF ADDITIONS
AND IMPROVEMENTS TO THE WATERWORKS OF THE CITY OF
CARMEL, INDIANA, AND OTHER RELATED MATTERS
WHEREAS, the City of Carmel, Indiana (the "City") has heretofore established,
constructed and financed a municipal waterworks and now owns and operates said works
pursuant to Indiana Code 8-1.5, as amended from time to time (the" Act"); and
WHEREAS, on December 20, 2004, the Common Council of the City (the "Common
Council") adopted its Ordinance No.D-1735-04 (the "Original Bond Ordinance"), which
authorized the issuance of City of Carmel, Indiana Waterworks Revenue Bonds (referred to in
the Original Bond Ordinance as the "2004 Project Bonds"), and bond anticipation notes or notes
in anticipation of the issuance of such Bonds, for the purpose of providing interim financing for
the construction of certain improvements and extensions of the City's waterworks as described in
the Original Bond Ordinance (the "Project"); and
WHEREAS, on February 16, 2005, the City issued its Waterworks Bond Anticipation
Notes of 2005, in the aggregate principal amount of Seven Million Dollars ($7,000,000) (the
"Series 2005A BANs"); and
WHEREAS, on October 17, 2005, the Common Council adopted its Ordinance
No. 0-1783-05 (the "First Supplemental Bond Ordinance"), which supplemented and amended
the Original Bond Ordinance to authorize bond anticipation notes for the purpose of (i) refunding
the Series 2005A BANs and (ii) providing further interim financing for the construction of
certain improvements and extensions to the City's waterworks; and
WHEREAS, on November 17, 2005, the City issued its Waterworks Bond Anticipation
Notes of 2005, Series B, in the aggregate principal amount of Fifteen Million Dollars
($15,000,000) (the "Series 2005B BANs"); and
WHEREAS, the Common Council now desires to supplement and amend the Original
Bond Ordinance, as previously supplemented and amended by the First Supplemental Bond
Ordinance (the Original Bond Ordinance, as supplemented and amended by the First
Supplemental Bond Ordinance, shall hereinafter be referred to as the "Bond Ordinance"), by
adopting this Ordinance (the "Second Supplemental Bond Ordinance"), for the purpose of
authorizing the issuance and sale of an additional series of bond anticipation notes in an
aggregate principal amount not to exceed Thirty-Five Million Dollars ($35,000,000) (the
"Series 2006A BANs"), the proceeds of which shall be used to procure funds to (i) currently
refund the Series 2005B BANs, (ii) provide further interim financing for the construction of
certain additional improvements and extensions of the City's waterworks as described in
Exhibit A attached hereto, and (iii) pay costs of issuance of the Series 2006A BANs; and
WHEREAS, certain preliminary expenditures related to the payment of costs of the
Project (as such term is revised by Section 1 hereof) have been or will be incurred by or on
behalfofthe City prior to the issuance and delivery of the Series 2006A BANs; and
WHEREAS, the Common Council desires to express its intention to reimburse such
expenditures as have been or may be incurred prior to the issuance of the Series 2006A BANs,
pursuant to Indiana Code 5-1-14-6 and in compliance with Section 1.150-2 of the U.S. Treasury
Regulations promulgated by the Internal Revenue Service (the "Treasury Regulations");
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Carmel, Indiana, as follows:
Section 1. The Proiect and the Bonds. Except where the context otherwise requires,
the term "Project" as used in the Bond Ordinance and this Second Supplemental Bond Ordinance
is hereby revised to include those additional improvements and extensions to the City's
waterworks set forth in Exhibit A attached hereto (which improvements and extensions are in
addition to those improvements and extensions set forth in Exhibit A to the Original Bond
Ordinance and Exhibit A to the First Supplemental Bond Ordinance). The term "2004 Project
Bonds" as defined in the Original Bond Ordinance and the term "2006 Bonds" as defined in the
First Supplemental Bond Ordinance are each hereby revised to be the "Bonds."
Section 2. The Series 2006A BANs. In anticipation of the issuance and sale of the
Bonds authorized by the Bond Ordinance, as supplemented and amended hereby, and to refund
the Series 2005B BANs and provide further interim financing to apply to a portion of the costs of
the Project, including those additional improvements and extensions set forth in Exhibit A
attached hereto, the City is hereby authorized to have prepared and to issue and sell its negotiable
bond anticipation notes in an aggregate principal amount not to exceed Thirty-Five Million
Dollars ($35,000,000) (with the final principal amount of the Series 2006A BANs to be certified
in writing by the Mayor of the City (the "Mayor") prior to the sale of the Series 2006A BANs),
to be designated "City of Carmel, Indiana, Waterworks Bond Anticipation Notes of 2006,
Series A." The Series 2006A BANs shall be issued in fully registered form, shall be numbered
consecutively from 06AR-1 upwards, and shall be issued in denominations of Five Thousand
Dollars ($5,000) or integral multiples thereof. The Series 2006A BANs shall be dated the date of
their delivery or the first day of the month in which the Series 2006A BANs are issued as
determined by the Mayor with the advice of the City's financial advisor (with such determination
to be certified in writing by the Mayor prior to the sale of the Series 2006A BANs), and shall
bear interest at a fixed rate or rates not exceeding six percent (6.0%) per annum (the exact rate or
rates of interest to be determined by public bidding). The Series 2006A BANs shall mature not
later than one (I) year after the date of their issuance, and the interest on the Series 2006A BANs
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shall be payable semiannually on each May 1 and November 1, commencing not earlier than
November 1, 2006 (with such first interest payment date to be certified in writing by the Mayor
prior to the sale of the Series 2006A BANs), up to and including the final maturity date of the
Series 2006A BANs. Interest on the Series 2006A BANs shall be calculated on the basis of
twelve (12) thirty (30)-day months for a three hundred sixty (360)-day year.
The Series 2006A BANs shall be sold at a price of not less than ninety-nine percent
(99.0%) of the principal amount thereof. The principal of the Series 2006A BANs shall be
payable solely from the proceeds from the issuance and sale of the Bonds, when and if issued
pursuant to the Bond Ordinance, as supplemented and amended hereby, and the interest on the
Series 2006A BANs shall be payable solely from the proceeds of the Bonds, when and if issued,
and/or any other funds legally available to the City for the payment thereof. Notwithstanding the
foregoing, interest on the Series 2006A BANs may be paid as capitalized interest as determined
by the Mayor with the advice of the City's financial advisor (such amount of the proceeds of the
Series 2006A BANs to be used as capitalized interest, if any, to be certified in writing by the
Mayor prior to the sale of the Series 2006A BANs), and, after provision for payment of the
Parity Bonds (as defined in the Original Bond Ordinance), may be paid from the Net Revenues
(as defined in the Original Bond Ordinance) of the City's waterworks on a subordinate basis.
In connection with the issuance of the Series 2006A BANs and the Bonds, Baker &
Daniels LLP is hereby appointed to serve as bond counsel, and London Witte Group, LLC, is
hereby appointed to serve as financial advisor.
Section 3. PreD3vment of the Series 2006A BANs. The Series 2006A BANs are
prepayable by the City, in whole or in part (and, ifin part, in Authorized Denominations and by
lot in such manner as may be designated by the Registrar (as defined in the Original Bond
Ordinance)), on or after such date as is selected by the Mayor with the advice of the City's
financial advisor (with such selection to be certified in writing by the Mayor prior to the sale of
the Series 2006A BANs), at any time upon seven (7) days' written notice to the registered owner
or owners of the Series 2006A BANs, without any premium.
Section 4. Sale of the Series 2006A BANs. The Series 2006A BANs shall be sold by
public sale pursuant to the provisions of Indiana Code 5-1-11.
Section 5. Use of Proceeds of the Series 2006A BANs. Any accrued interest or
capitalized interest received at the time of delivery of the Series 2006A BANs shall be deposited
in a special account established hereby and designated as the "City of Carmel Waterworks
2006A BAN Interest Account," which shall be used to pay interest on the Series 2006A BANs
through their maturity. The remaining proceeds from the sale of the Series 2006A BANs shall
be deposited in a bank or banks which are legally qualified depositories for the funds of the City,
as follows:
(a) An amount of money which is sufficient to retire and defease the
outstanding Series 2005B BANs shall be deposited in a special account to be designated
as the "City of Carmel Waterworks Series 2005B BAN Refunding Account" (the
"Refunding Account") and used to refund or otherwise retire the Series 2005B BANs.
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Any amounts remaining in the Refunding Account after such refunding or retirement
shall be transferred to the hereinafter-described Project Fund.
(b) The remaining proceeds from the sale of the Series 2006A BANs shall be
deposited, on the date of issuance of the Series 2006A BANs, in the Project Fund, as
described in Section II of the Original Bond Ordinance. Amounts in the Capital Fund
shall be expended for the purposes set forth in Section 11 of the Original Bond
Ordinance.
Section 6. Credit Enhancement. If the City's financial advisor or the purchaser of the
Series 2006A BANs certifies to the City that it would be economically advantageous for the City
to acquire a municipal bond insurance policy or other credit enhancement for the Series 2006A
BANs, the City hereby authorizes and directs the Mayor and the Clerk-Treasurer of the City (the
"Clerk-Treasurer") to obtain such an insurance policy or other credit enhancement. The
acquisition of a municipal bond insurance policy or other credit enhancement is hereby deemed
economically advantageous if the difference between the present value cost of (a) the total debt
service on the Series 2006A BANs if issued without municipal bond insurance or other credit
enhancement and (b) the total debt service on the Series 2006A BANs if issued with municipal
bond insurance or other credit enhancement, is greater than the cost of the premium on the
municipal bond insurance policy or cost of such other credit enhancement. If deemed
economically advantageous as described in this paragraph, the cost of the premium for such
municipal bond insurance policy or cost of such other credit enhancement shall be deemed as a
proper cost of issuance of the Series 2006A BANs.
Section 7. Official Statement. The Series 2006A BANs may be offered and sold
pursuant to an Official Statement with respect to the Series 2006A BANs (the "Official
Statement"), to be made available and distributed in such manner, at such times, for such periods
and in such number of copies as may be determined by the Mayor with the advice of the City's
financial advisor. The City hereby authorizes the Mayor (a) to authorize and approve a
Preliminary Official Statement, as the same may be appropriately modified and amended for
distribution as the Preliminary Official Statement with respect to the Series 2006A BANs; (b) to
designate the Preliminary Official Statement a "final" Official Statement with respect to the
Series 2006A BANs, subject to completion; (c) to authorize and approve the Preliminary Official
Statement to be placed into final form and to enter into such agreements or arrangements as may
be necessary or advisable to provide for the distribution of a sufficient number of copies of the
Official Statement; and (d) to execute the Official Statement. The Mayor and the Clerk-Treasurer
are hereby further authorized to have prepared and execute an agreement for purposes of
evidencing the obligation of the City to comply with its continuing disclosure requirements with
respect to the Series 2006A BANs, if necessary.
Section 8. Reimbursement Allocation. The Common Council hereby declares that, for
the purpose of evidencing compliance with Indiana Code 5-1-14-6 and Section 1.150-2 of the
Treasury Regulations, it reasonably expects to reimburse with the proceeds of the Series 2006A
BANs (in an amount not to exceed and payable from the sources set forth above) expenditures
for the payment of costs of the Project made by or on behalf of the City prior to the issuance of
the Series 2006A BANs during the period beginning on the date sixty (60) days prior to the date
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of this Ordinance until the date of issuance of the Series 2006A BANs, which expenditures are
expected to be paid initially from other legally available funds of the City.
Section 9. Refunding of Series 20058 BANs. The Common Council hereby approves
the refunding of the Series 2005B BANs as provided in this Second Supplemental Bond
Ordinance. The Mayor and the Clerk-Treasurer are hereby authorized to enter into an escrow
deposit agreement, if determined to be necessary and appropriate for the refunding, defeasance
or retirement of the Series 2005B BANs. The Mayor and the Clerk-Treasurer are hereby
authorized to take such actions as are necessary and appropriate for the purpose of providing for
the refunding, defeasance and/or retirement of the Series 2005B BANs, including, if determined
to be necessary by the Mayor and the Clerk-Treasurer, entering into an escrow deposit agreement
and selecting an escrow agent.
Section 10. The Bonds. The maximum principal amount of the Bonds, as set forth in
the Bond Ordinance, shall be increased to a maximum aggregate principal amount of Thirty-Five
Million Five Hundred Thousand Dollars ($35,500,000) (as increased from the authorized
maximum principal amount of Fifteen Million Five Hundred Thousand Dollars ($15,500,000) as
set forth in the Bond Ordinance).
Section 11. Further Actions. The Mayor and the Clerk-Treasurer are hereby authorized
to execute all documents and take all actions necessary to provide for the issuance of the
Series 2006A BANs, provided such documents or actions are not inconsistent with the terms and
conditions of this Second Supplemental Bond Ordinance and the Bond Ordinance.
Section 12. Interpretation. This Second Supplemental Bond Ordinance is adopted by
the Common Council for purposes of supplementing and amending the Bond Ordinance, and the
terms and conditions of the Bond Ordinance, and all references to "BANs" and "2004 Project
Bonds" and "2006 Bonds" set forth in the Bond Ordinance, to the extent not inconsistent with the
terms of this Second Supplemental Bond Ordinance, are incorporated herein by reference and
shall apply to the Series 2006A BANs and the Bonds, as the case may be, as if set forth herein.
Section 13. Effectiveness. Except as hereby supplemented and amended, the Bond
Ordinance shall remain in full force and effect.
(), PASSED by the Common Council of the City of Carmel, Indiana, this.;1.1 s+- day of
\....Jl...I..J.? ' 2006, by a vote of ~ ayes and ~ nays.
*****
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COMMON COUNCIL FOR THE CITY OF CARMEL
)1-0. ~9
~~
C4UU-
Mark Rattermann
ATT~.
Diana L. Cordray, IAMC, Clerk-Tre rer
~.~ed
by me to the Mayor of the City of Carmel, Indiana this otl<S-\- day of
2006, at 9 :o'R ..e..M.
Diana L. Cordray, lAMC, Clerk-Tre surer
~ved by me, Mayor of the City of Carmel, Indiana, this
2006, at q: 08 P.M.
sf-
~ day of
!\
ATT
easurer
Prepared by: Scott E. Peck
Baker & Daniels LLP
300 North Meridian Street, Suite 2700
Indianapolis, Indiana 46204
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Exhibit A
Proiect Description
List of Additional Proiects
Proiect I:
Existing distribution system improvements, 20-in. along Hazel Dell Pkwy.
to 146th Street, 16-in. on 126th St. from WTP-5 and 16-in. along Hazel
Dell Pkwy. to WTP-4.
Estimated Cost: $2,400,000
Proiect 2:
Improvements to Indianapolis Water distribution system per agreement
(i.e., 16-in. on Westfield Blvd., 16-in. on 106th St.).
Estimated Cost: $2,500,000
Proiect 3:
30-in. Raw water main from Hazel Dell Pkwy. to WTP I & 4.
Estimated Cost: $1,200,000
Proiect 4:
Wells 23 & 24 with pumps, houses, controls and piping.
Estimated Cost: $1,200,000
Proiect 5:
Property acquisition for new wells and treatment facilities.
Estimated Cost: $1,700,000
Proiect 6:
Continued design of WTP-I, booster pump station and associated facilities.
Estimated Cost: $1,000,000
Proiect 7:
Water operations facility.
Estimated Cost: $5,000,000
Total Estimated Construction Cost: $15,000,000
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