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HomeMy WebLinkAboutD-2729-24 As Amended (2024 Property Tax Bonds - New Money and Refunding) KGR 10.7VERSION A – 10/07/2024 Sponsors: Councilors Worrell, Locke, Taylor and Snyder ORDINANCE D-2729-24 AS AMENDED AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA, APPROVING CERTAIN CARMEL REDEVELOPMENT AUTHORITY LEASE RENTAL BONDS TO FINANCE VARIOUS ROAD IMPROVEMENTS AND OTHER CAPITAL PROJECTS IN THE CITY AND TO REFINANCE CERTAIN OUTSTANDING BONDS Synopsis: This ordinance approves the issuance of Carmel Redevelopment Authority lease rental bonds in the maximum principal amount of $110,000,000 for the purpose of financing various local and arterial road and street system and other capital projects in the City and refinancing certain outstanding bonds, together with the related financing Leases, which Leases are payable from a special benefits tax to be levied on all owners of taxable property in the City. WHEREAS, the City of Carmel Redevelopment Authority (the “Authority”) has been created pursuant to Indiana Code 36-7-14.5 as a separate body corporate and politic, and as an instrumentality of the City of Carmel, Indiana (the “City”) to finance local public improvements for lease to the City of Carmel Redevelopment Commission (the “Commission”), as the governing body of the City of Carmel Redevelopment District (the “District”); and WHEREAS, the Authority has adopted, or is expected to adopt, one or more resolutions indicating its intent to issue one or more series of its lease rental revenue bonds, all or any portion of which may be taxable or tax-exempt for federal income tax purposes, in the maximum aggregate principal amount of One Hundred Ten Million Dollars ($110,000,000) (collectively, the “Bonds”), to provide funds for the purposes of: (a) financing the acquisition by the Authority from the City of all or any portion of the real property described in Exhibit B to the form of the New Money Lease (as hereinafter defined) (the “Real Property”), and the use by the City of the proceeds of such sale to finance or reimburse the cost of the acquisition, design, construction, renovation, improvement and/or equipping of the local and arterial road and street system projects and one or more other independent capital projects at facilities owned or operated by or on behalf of the City or a related party, each of which will not cost the City more than $6,350,000, all as more particularly identified on Exhibit A hereto and made a part hereof (clause (a), collectively, the “Projects”); (b) effecting a current refunding of the Authority’s outstanding County Option Income Tax Lease Rental Revenue Refunding Bonds, Series 2014B, currently outstanding in the aggregate principal amount of $15,570,000 (the “2014B Bonds”), which 2014B Bonds were previously issued to refund prior bonds that originally financed various local and arterial road and street system in the City; (c) paying capitalized interest on any series of the Bonds, if necessary; and (d) paying all costs incurred on account of or in connection with the issuance and sale of the Bonds, including the premiums for any credit enhancement or credit facility purchased in connection with the issuance of the Bonds (clauses (a) through and including (d), collectively, the “Program”); and Docusign Envelope ID: 98451C03-3FDF-4CC1-89D2-C5902F8C15A4 VERSION A – 10/07/2024 2 WHEREAS, prior to the issuance of the Bonds, the Common Council, the Mayor, and the Board of Public Works shall enter into an agreement regarding the scope and funding of the Projects containing substantially the terms included in Exhibit C; and WHEREAS, the Authority and the Commission have adopted, or are expected to adopt, resolutions approving a Second Amendment to Lease Agreement between the Authority, as lessor, and the Commission, as lessee, related to the series of Bonds to be issued to provide funds to refund the 2014B Bonds (the “Refunding Lease”), and a Lease Agreement between the Authority, as lessor, and the Commission, as lessee, related to the series of Bonds to be issued to provide for funds to pay the costs of the Projects (the “New Money Lease” and, together with the Refunding Lease, the “Leases”), for the purpose of paying the principal and interest on the Bonds issued pursuant to Indiana Code 36-7-14.5 to finance the Program; and WHEREAS, the annual rentals (the “Lease Rentals”) payable by the Commission under the Leases will be pledged by the Authority to pay debt service on the Bonds; and WHEREAS, the payment of the Lease Rentals will be secured solely by a pledge of the revenues derived by the Commission from the levy of a special benefits tax pursuant to Indiana Code 36-7-14-27; and WHEREAS, the Commission scheduled a public hearing regarding the Leases pursuant to Indiana Code 36-7-14-25.2, as amended, and published a notice of such public hearing on the respective Leases pursuant to Indiana Code 5-3-1, and said public hearings have been held and all interested parties were provided the opportunity to be heard at the hearings; and WHEREAS, pursuant to Indiana Code 36-7-14.5-14 and Indiana Code 36-7-14-25.2, the Commission has adopted a resolution finding that the lease rental payments to be paid by the Commission to the Authority pursuant to the Leases are fair and reasonable, and that the terms of the Leases are based upon the value of the Leased Premises (as defined in the form of Leases) and the use of the Leased Premises and the Projects throughout the term of the Lease will serve the public purpose of the City and is in the best interests of its residents; and WHEREAS, the Common Council desires to approve the forms of the Leases pursuant to Indiana Code 36-7-14-25.2, which provides that any lease approved by a resolution of the Commission must be approved by an ordinance or resolution of the fiscal body of the City; and WHEREAS, the proceeds of the sale of the Real Property to the Authority (the “Sale Proceeds”) have not been included in the existing budget for the City, and the City now desires to appropriate the Sale Proceeds for the purpose of being applied to the payment of the costs of the Program; and WHEREAS, notice of a hearing on said appropriation has been duly given by publication as required by law, and the hearing on said appropriation has been held, at which all taxpayers had an opportunity to appear and express their views as to such appropriation; NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA, as follows: Docusign Envelope ID: 98451C03-3FDF-4CC1-89D2-C5902F8C15A4 VERSION A – 10/07/2024 3 Section 1. Approval of Leases, Bonds and Trust Indenture. The Common Council hereby approves the issuance of the Bonds by the Authority pursuant to Indiana Code 36-7-14.5- 19, the execution and delivery of the Leases, as approved by the Commission, pursuant to Indiana Code 36-7-14-25.2, including the levy by the Commission of a special benefits tax pursuant to Indiana Code 36-7-14-27 during the term of the Leases to provide necessary funds from which to pay the Lease Rentals under the Leases, the execution and delivery of a Trust Indenture for the Bonds, to be entered into between the Authority and a trustee bank to be chosen by the CFO/Controller, as trustee, and the pledge of the lease rentals thereunder to the payment of the Bonds, pursuant to IC 36-7-14.5-21, all subject to the following conditions: (a) the maximum aggregate original principal amount of the Bonds shall not exceed $110,000,000; (b) any series of the Bonds issued to refund the 2014B Bonds, together with a portion of the costs of issuance allocable thereto, shall have a term ending no later than July 15, 2027, and any series of Bonds issued to finance the costs of the Projects, together with any capitalized interest and a portion of the costs of issuance allocable thereto, shall have a term not longer than twenty (20) years, commencing from the date of issuance of such series of bonds; (c) the maximum aggregate annual lease rental payments during the terms of the Leases shall not exceed Eight Million Five Hundred Thousand Dollars ($8,500,000); (d) the maximum interest rate on the Bonds shall not exceed five percent (5.0%) per annum; (e) the Bonds may be subject to redemption prior to maturity on any date not earlier than eight (8) years following the date of issuance of the applicable series of Bonds, with such specific dates and redemption terms determined at the time of the sale of such series of Bonds and approved by the Authority in the purchase agreement for the applicable series of Bonds, all upon the advice of the financial advisor to the Authority; (f) the maximum term of any Lease shall not exceed twenty-two (22) years, provided however, that the lease rental schedule allocable to any given series of the Bonds may not exceed twenty (20) years following the commencement of such term; and (g) interest on any series of the Bonds may be capitalized for a period not to exceed three (3) years from the date of issuance thereof. Notwithstanding anything herein to the contrary, the Common Council acknowledges and agrees that the Authority and the Commission may execute separate Leases in order to effectuate the intent of this Ordinance, so long as the terms and conditions of such Leases, in the aggregate, are consistent with the terms and conditions of this Ordinance. Section 2. Sale of Right-of-Way; Appropriation of Sale Proceeds. The Common Council hereby authorizes the sale to the Authority of the existing Real Property which will comprise or be included in the Leased Premises under the New Money Lease, for a price sufficient to cover the costs of the Program, but in any event not to exceed $110,000,000. The Mayor, Clerk, CFO/Controller and other officers of the City are hereby authorized to take such actions and execute such documents as may be necessary to effectuate such sale and transfer. There is hereby appropriated a sum of $110,000,000, together with all investment earnings thereon, to be provided for out of the Sale Proceeds for the purpose of providing funds to be applied to the costs of the Program. Such appropriation shall be in addition to all appropriations provided for in the existing budget and shall continue in effect until the completion of the Program. The Mayor, the CFO/Controller and the Clerk are hereby authorized to take all such actions and execute all such instruments as are necessary or desirable to effectuate this appropriation, including the filing of a report of this appropriation with the Indiana Department of Local Government Finance. Docusign Envelope ID: 98451C03-3FDF-4CC1-89D2-C5902F8C15A4 VERSION A – 10/07/2024 4 Section 3. Authorization of Other Actions. Each of the Mayor, any member of the Common Council, the CFO/Controller and the Clerk, and any other officer, employee or agent of the City is hereby authorized and directed, for and on behalf of the City, to execute and deliver any contract, deed, agreement, certificate, instrument or other document and to take any action as such person determines to be necessary or appropriate to accomplish the purposes of this Ordinance, such determination to be conclusively evidenced by such person’s execution of such contract, deed, agreement, certificate, instrument or other document or such person’s taking of such action. Section 4. Effectiveness. This Ordinance shall be in full force and effect from and after its adoption by the Common Council and upon compliance with the procedures required by law. [Signature Page Follows] Docusign Envelope ID: 98451C03-3FDF-4CC1-89D2-C5902F8C15A4 VERSION A – 10/07/2024 5 PASSED by the Common Council of the City of Carmel, this _____ day of _____________, 2024, by a vote of ______ ayes and _____ nays. COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA ___________________________________ Anthony Green, President Adam Aasen, Vice-President ___________________________________ ____________________________________ Teresa Ayers Anita Joshi ___________________________________ ____________________________________ Ryan Locke Shannon Minnaar ___________________________________ ___________________________________ Matt Snyder Rich Taylor ___________________________________ Jeff Worrell ATTEST: __________________________________ Jacob Quinn, Clerk Presented by me to the Mayor of the City of Carmel, Indiana this ____ day of _________________________ 2024, at _______ __.M. ____________________________________ Jacob Quinn, Clerk Approved by me, Mayor of the City of Carmel, Indiana, this _____ day of ________________________ 2024, at _______ __.M. _________________________________ Sue Finkam, Mayor ATTEST: ___________________________________ Jacob Quinn, Clerk Prepared by: Bradley J. Bingham, Esq. Barnes & Thornburg LLP 11 South Meridian Street Indianapolis, IN 46204 Docusign Envelope ID: 98451C03-3FDF-4CC1-89D2-C5902F8C15A4 8th October P 8th 7th October 3:30 Not Present 8 4:00 October 0 P VERSION A – 10/07/2024 A-1 EXHIBIT A 1 2 DESCRIPTION OF PROJECTS 3 4 All or any portion of (a) engineering, land and right-of-way acquisition, construction, 5 resurfacing, maintenance, restoration, and rehabilitation exclusively for, or of, (i) the City’s local 6 road and street systems, including bridges that are designated as being in the local road and street 7 system, (ii) the City’s arterial road and street systems, including bridges that are designated as being 8 in an arterial road and street system, or (iii) any combination of the City’s local and arterial road and 9 street systems, including designated bridges (each, an “LRS Non-Controlled Project”), and (b) land 10 and right-of-way acquisition, design, engineering, inspection, construction, renovation, replacement, 11 improvement and/or equipping of one or more projects or purposes, each with an independently 12 desirable end in itself without reference to another capital project, at facilities owned or operated by 13 or on behalf of the City or a related party, each of which will not cost the City more than $6,350,000 14 (excluding any expenditures permitted to be excluded from the project cost pursuant to Indiana 15 Code 6-1.1-20-0.7) (each, an “Other Non-Controlled Project”), including the following projects in 16 the following order of priority: 17 Level 1 Priority Projects 18 1. Roundabout with enhanced crosswalks and related improvements at the 136th Street 19 and Ironwood Drive intersection, together with land acquisition for the roundabout 20 and related improvements and an adjacent public park, so long as the cost of land 21 acquisition allocable to park purposes constitutes an Other Non-Controlled Project; 22 2. Roundabout and related improvements at the 106th Street and Lakeshore Drive East 23 intersection together with land acquisition for the roundabout and related 24 improvements; 25 3. Thoroughfare study for potential local road and street systems projects along 116th 26 Street between Keystone Avenue and Gray Road; 27 4. Various thoroughfare improvements to Carmel Drive from Keystone Avenue to 28 Range Line Road, including roundabouts, multi-use paths, related utility system 29 upgrades and other related improvements; 30 5. Design, engineering, construction, land acquisition and all other related 31 improvements of a new multi-use trail (Autumn Greenway Trail) from at or about 32 Rotary Plaza on the Monon Greenway Trail to at or about Carmel Drive and Old 33 Meridian Street and at or about the SW property corner of 300 S. Guilford 34 (commonly known as the Organic Gardens); 35 6. Design, engineering, construction, land acquisition and all other related 36 improvements of a new multi-use trail (Memorial Greenway Trail) from at or about 37 Grand Boulevard between Old Meridian and Guilford to at or about Fairfax Manor 38 Drive and Old Meridian and Old Meridian and Main Street, so long as the cost of 39 land acquisition allocable to non-multi-use trail purposes constitutes an Other Non-40 Controlled Project; 41 7. Design, engineering, construction, land acquisition and any related improvements of 42 one or more LRS Non-Controlled Project or Other Non-Controlled Projects at Bear 43 Creek Park, including inter-park trails in conformance with the comprehensive plan, 44 Docusign Envelope ID: 98451C03-3FDF-4CC1-89D2-C5902F8C15A4 A-2 multi-use paths along Shelborne Road and within adjacent neighborhoods, 45 Pedestrian Crossing Improvements along Shelborne Road, Extension of the Bear 46 Creek Greenway, vehicular roads, parking areas, restroom facilities, playground 47 amenities, building structures, fire tower, storm water improvements, creek bank 48 stabilization, naturalization of land, and overall site development as laid out in the 49 master plan; 50 8. Roundabout and related improvements at the 116th Street and River Road 51 intersection, together with land acquisition for the roundabout and related 52 improvements; 53 9. Procurement and installation of a man lift and technology upgrades to include 54 hardware and software within the Koorsen S.A.F.E House and Community Room 55 inside the Carmel Clay Building at 210 Veterans Way; 56 10. Design, engineering, construction and/or installation of pedestrian crossing 57 improvements and enhancements at the Monon Greenway Trail and 106th Street and 58 111th Street intersections; 59 11. Design, engineering, construction, procurement and/or equipping projects of a new 60 HVAC, dumpster and generator corral at Fire Station 341 and upgrades, associated 61 infrastructure and gear replacement for the Fire Training Facility; 62 12. Design, engineering, construction and/or installation of pedestrian safety 63 improvements and enhancements at the 106th Street and Town Road Intersection; 64 13. Design, engineering, construction and/or installation of pedestrian safety 65 improvements and enhancements at the Town Road and Glebe Street Intersection; 66 14. Design, engineering, construction, land acquisition, equipping and all other related 67 improvements of new multi-use paths to increase connectivity throughout the area of 68 the City bounded by the Carmel city limits to the south, Carmel city limits to the 69 west, actual and theoretical Ditch Road Alignment to the east, and the actual and 70 theoretical alignment of Clay Center Road to the west; 71 15. Design, engineering, construction, land acquisition, equipping and all other related 72 improvements of new multi-use paths to increase connectivity throughout the area of 73 the City bounded by Shelborne Road to the west, Carmel City Limits to the north, 74 Main Street to the south, and the actual and theoretical north/south alignment of 75 Roher Road to the east; 76 16. Design, engineering, construction, procurement and/or installation of Fiber Ring 77 enhancements (as defined by IT Department); 78 17. Roundabout and related improvements at the Hazel Dell Road and Canton Drive 79 intersection; 80 18. Streetscaping improvements and enhancements along River Road between Haverton 81 Way and 146th Street; 82 19. Design, engineering, construction and/or installation of pedestrian crosswalk safety 83 improvements and enhancements at select roundabouts and mid-block crossings 84 throughout the City from the list set forth on Exhibit B hereto, as determined by City 85 Engineering with deviations approved by the Council; 86 Docusign Envelope ID: 98451C03-3FDF-4CC1-89D2-C5902F8C15A4 A-3 20. Roundabout and related improvements at the 141st Street and Shelborne Road 87 intersection; 88 21. Design, engineering, construction and/or installation of a tunnel and/or bridge at the 89 intersection of the Monon Greenway Trail and 106th Street; 90 22. Design, engineering, construction and/or installation of bunk conversions to 91 individual quarters at Fire Station 345, and the design of bunk conversations at Fire 92 Stations 342 and 346; 93 23. Design, engineering, construction and/or installation of a tunnel and/or bridge at the 94 intersection of the Monon Greenway Trail and 111th Street; 95 24. Design, engineering, construction and/or installation of a facilities workshop at City 96 Hall; 97 25. Site selection, feasibility, and need study for potential Fire Station 347 enhancing 98 fire service coverage on the west side and potential Fire Station 348 enhancing fire 99 service coverage on the East side of Carmel; 100 26. Facilities use study for 30 acre parcel of land with the parcel identification number of 101 17-09-29-00-00-005.000, currently addressed as 3562 W. 131st Street, commonly 102 known as the “Street Department”; 103 27. Urban Core comprehensive traffic study for the area of the City bounded by 116th 104 Street to the south, U.S. 31 to the west, Smokey Row to the north, and Keystone 105 Avenue to the east; 106 28. Urban Core comprehensive parking and study for the area of the City bounded by 107 116th Street to the south, U.S. 31 to the west, Smokey Row to the north, and 108 Keystone Avenue to the east; 109 29. Design, engineering, construction and/or installation of upgrades for public gathering 110 spaces within the Brookshire neighborhood on the east side; 111 30. Land and right-of-way acquisition exclusively for road and street system 112 improvements and related infrastructure within the area of the City bounded by City 113 Center Drive, Congressional Blvd, and Pennsylvania Street; 114 31. Design, engineering, construction and/or installation of ADA and other pedestrian 115 safety improvements and enhancements along Main Street from 4th Avenue to 116 Richland Avenue; and 117 32. Roundabout and pedestrian improvements at the Main Street and Old Meridian 118 intersection and at the Old Meridian and Grand Boulevard intersection. 119 Level 2 Priority Projects 120 In the event that there are any proceeds of the Bonds remaining after the completion of the 121 Level 1 Priority Projects, or if there are any savings in the expected cost of the Level 1 Priority 122 Projects as a result of bids coming in lower than estimated or alternative sources of funds being 123 used to pay costs of the Level 1 Priority Projects, the remaining Bond proceeds shall be used for the 124 following projects in the following order of priority: 125 1. Design, engineering, land acquisition, construction and/or installation of new multi-126 use paths to enhance connectivity by extending the system and filling gaps; 127 Docusign Envelope ID: 98451C03-3FDF-4CC1-89D2-C5902F8C15A4 A-4 2. Roundabout and related improvements at the 106th Street and Haverstick Road 128 intersection; 129 3. Design, engineering, construction and/or installation of bunk conversions to 130 individual quarters at Fire Station 342; 131 4. Drainage and pedestrian improvements along 3rd Avenue between American Way 132 and Carmel Drive; 133 5. Design, engineering, construction and/or installation of bunk conversions to 134 individual quarters at Fire Station 346; 135 6. Connectivity and infrastructure improvements related to improving ingress and 136 traffic flow on Autumn Drive, Wilson Drive and City Center Drive; 137 7. Design, engineering, construction and/or installation of pedestrian safety 138 improvements and enhancements at roundabouts along Hazel Dell road from 146th 139 Street to 96th Street; 140 8. Design, engineering, construction and/or installation of pedestrian crosswalk safety 141 improvements and enhancements at select roundabouts and mid-block crossings 142 throughout the City from the list set forth on Exhibit B hereto, as determined by City 143 Engineering with deviations approved by the Council; 144 9. Various thoroughfare improvements along 116th Street from Keystone Avenue to 145 Gray Road, including roundabouts, multi-use paths, related utility system upgrades 146 and other related improvements; 147 10. Roundabout and related improvements at the 106th and Haverstick Road 148 intersection; 149 11. Roundabout and related improvements at the Illinois Street and Zotec Way 150 intersection; 151 12. Design, engineering, construction and/or reconstruction of outdoor dining and 152 gathering space at Fire Station 341 to enhance the living conditions for members of 153 the fire department as well as enhance the public interaction experience with CFD 154 throughout the year, especially during public events; 155 13. Design, engineering, construction and/or installation of pedestrian and storm water 156 improvements along 3rd Avenue from City Center Drive to Carmel Drive; 157 14. Various thoroughfare improvements along 96th Street from Meridian Street to Spring 158 Mill Road, including roundabouts, multi-use paths, related utility system upgrades 159 and other related improvements; and 160 (the Level 1 Priority Projects and the Level 2 Priority Projects, collectively, the “Projects”); 161 provided, however, that any proceeds of the Bonds remaining after the completion of the Projects 162 and in the priority described above may only be used for additional projects specifically approved 163 by a majority of the members of the Common Council, or to pay debt service on the Bonds. 164 165 Except for any LRS Non-Controlled Project identified above, the total cost to the City of 166 any single Project from the foregoing list (including an allocable portion of any capitalized interest 167 and the costs of issuing the Bonds, but excluding any costs permitted to be excluded therefrom 168 pursuant to Indiana Code 6-1.1-20-0.7), whether financed with proceeds of the Bonds or other 169 legally available revenues of the City, shall not exceed $6,350,000. 170 Docusign Envelope ID: 98451C03-3FDF-4CC1-89D2-C5902F8C15A4 VERSION A – 10/07/2024 B-1 EXHIBIT B 171 172 LIST OF PRIORITY ROUNDABOUTS AND PEDESTRIAN CROSSINGS 173 174 Pedestrian Crosswalk improvements to include rapid flashing beacons and/or raised walking 175 surfaces and/or additional technology as deemed appropriate by City Engineering at the following 176 intersections: 177 178 Hazel Dell Parkway 179 106th 180 116th 181 126th 182 Main Street 183 Cherry Creek Boulevard 184 185 Towne Road 186 106th 187 116th 188 126th 189 136th 190 141st 191 192 Gray Road 193 116th 194 126th 195 Main Street 196 197 Old Meridian 198 Main Street 199 200 Range Line Road 201 Smoky Row 202 203 116th Street 204 Range Line Road 205 206 Main Street 207 Crosswalk from neighborhood to Dad’s Club 208 209 Grand Blvd 210 Autumn Greenway crossing 211 212 Old Meridian 213 Autumn Greenway crossing 214 Memorial Trail Crossing 215 216 136th Street 217 Oak Ridge Road 218 Docusign Envelope ID: 98451C03-3FDF-4CC1-89D2-C5902F8C15A4 EXHIBIT C 219 MATTERS RELATING TO PROJECT CHANGES 220 Prior to the issuance of the Bonds, the Common Council, the Mayor and the Board of Public 221 Works shall enter into an agreement memorandum of understanding containing substantially the 222 following terms: 223 224 Section 1. Contract Approvals and Bidding. 225 226 The Board of Works (hereinafter “BPW”) shall conduct all bid proceedings for the 227 expenditures of the proceeds of this bond issue in accordance with applicable law and subject to the 228 provisions of Sections Two (2), Three (3), Four (4) and Five (5) hereinafter. 229 230 The BPW shall also approve all agreements, contracts and change orders for the expenditure 231 of the proceeds of this bond issue in accordance with applicable law and subject to the provisions of 232 Sections Two (2), Three (3), Four (4) and Five (5) hereinafter. All agreements, contracts and change 233 orders shall clearly state that they are not binding upon the BPW or the City of Carmel until passage 234 of the seven (7) business day review period or approval by the Council as outlined hereinafter. 235 236 Section 2. Council Approval for Bids and Change Orders, and Contracts 237 238 Estimated project costs are the individual project estimated costs listed herein on Exhibit A 239 (hereinafter “EPC”). Soft costs such as right-of-way cost, legal and engineering fees and other soft 240 costs (hereinafter “soft costs') that are paid from these bond proceeds shall be included when 241 calculating EPC. Soft costs to be paid from other previously appropriated monies shall not be 242 included when calculating EPC. 243 244 After the BPW approves any bids, change orders or contracts that: (1) exceed the EPC, (2) 245 reduce the EPC on any of the Parks Projects (defined below), or (3) are related to Level 2 Priority 246 Projects, the Council shall have the right to approve or disapprove said bid, change order or contract 247 in accordance with Sections Three (3), Four (4) and Five (5) herein below. The parties agree that, 248 except for any LRS Non-Controlled Project (as defined in the Ordinance), each of the other 249 individual Projects will be an independently desirable end in itself without reference to another 250 project and the total cost to the City of any individual Project (including an allocable portion of any 251 capitalized interest and the costs of issuing the Bonds, but excluding any costs permitted to be 252 excluded therefrom pursuant to Indiana Code 6-1.1-20-0.7), whether financed with proceeds of the 253 Bonds or other legally available revenues of the City, shall not exceed $6,350,000. 254 255 Section 3. Process for Approving Bids that Exceed the EPC. 256 By the close of business within three (3) business days after the day the BPW approves any 257 Change Order that exceeds the EPC, the Clerk of the City of Carmel shall deliver copies of said 258 Change Order to each member of the Council, along with any explanation requested to be 259 transmitted to the Council by the City Engineer, or his designee, at the time of the BPW approval. 260 Thereafter, the Council shall have deemed to have agreed to the proposed Change Order at 261 the close of business on the seventh (7th) day after the date of the BPW approval (hereinafter 262 Docusign Envelope ID: 98451C03-3FDF-4CC1-89D2-C5902F8C15A4 “Effective Date”), unless: (a) by the close of business on the Effective Date, any member of the 263 Council who disputes in writing such proposed Change Order requests in writing that the Clerk 264 place such issue on the agenda for the next meeting of the Council; and (b) at such meeting, Council 265 disapproves such Change Order by a vote of a majority of the elected members of the Council. 266 Section 4. Parks Projects and Change Orders. 267 The management of all Parks Projects, from design to completion, including the scope, 268 timing, and acceptance of bids, shall be directed by the Carmel Clay Parks Department (“Parks 269 Department”), and the Director of the Parks Department shall serve as the owner’s representative on 270 all Parks Projects. Upon request from the Parks Department, BPW shall initiate the bid proceedings 271 for the Parks Projects. By the close of business, within three (3) business days after the day the 272 BPW approves any bids, change orders or contracts, or makes any determination that reduces the 273 EPC on any of the Parks Project (“Parks Change Orders”), the Clerk of the City of Carmel shall 274 deliver copies of said Change Order to each member of the Council and the Carmel Clay Board of 275 Parks and Recreation (“Parks Board”), along with any explanation requested to be transmitted to the 276 Council and the Parks Board by the City Engineer, or his designee, at the time of the BPW 277 approval. 278 Thereafter, the Council and the Parks Board shall have deemed to have agreed to the 279 proposed Parks Change Order at the close of business on the seventh (7th) day after the date of the 280 BPW approval (the “Effective Date”), unless: (a) by the close of business on the Effective Date, any 281 member of the Council or Parks Board who disputes in writing such proposed Parks Change Order 282 requests in writing that the Clerk place such issue on the agenda for the next meeting of the 283 Council; and (b) at such meeting, the Council disapproves such Change Order by a vote of a 284 majority of the elected members of the Council. 285 Section 5. Process for Approval of Level 2 Priority Projects. 286 By the close of business within three (3) business days after the day the BPW approves any 287 bids, change orders or contracts on Level 2 Priority Projects (“Level 2 Agreements”), the Clerk of 288 the City of Carmel shall deliver copies of said Level 2 Agreements to each member of the Council, 289 along with any explanation requested to be transmitted to the Council by the City Engineer, or his 290 designee, at the time of the BPW approval. 291 Thereafter, the Council shall have deemed to have agreed to the proposed Level 2 292 Agreements at the close of business on the seventh (7th) day after the date of the BPW approval (the 293 “Effective Date”), unless: (a) by the close of business on the Effective Date, any member of the 294 Council who disputes in writing such proposed Level 2 Agreement requests in writing that the Clerk 295 place such issue on the agenda for the next meeting of the Council; and (b) at such meeting, Council 296 disapproves such Level 2 Agreement by a vote of a majority of the elected members of the Council. 297 Section 6. Definitions. For purposes of this Agreement, each of the· following terms 298 shall have the meaning assigned to it by this Section 6: 299 (a) “Parks Projects” means those Level 1 Priority Projects numbered 5, 6, and 7 on 300 Exhibit A to the Ordinance. 301 (b) “Expenditure” means any payment or other disposition of any Proceeds, excluding: 302 (i) any payment of principal of or premium, if any, or interest on the Bonds, including use of 303 Docusign Envelope ID: 98451C03-3FDF-4CC1-89D2-C5902F8C15A4 Proceeds to pay capitalized interest, (ii) any payment of any costs of issuance of the Bonds, (iii) any 304 investment of any Proceeds in any interest-bearing instruments, or (iv) any payment(s) or other 305 disposition(s), in the aggregate if the contracted matter for which payment(s) or disposition(s) is/are 306 being made is completed in one or more steps or is part of a set or series of related contracted 307 matters with a single person or vendor, on each project listed on Exhibit A of any Proceeds in an 308 amount less than $250,000. 309 (c) “Ordinance” means Ordinance D-2729-24, As Amended. 310 (d) “Proceeds” means any amounts received on behalf of the Authority and the City 311 from the original issuance and sale of the Bonds, and any interest earnings thereon. 312 Section 7. Amendments. This Agreement may be amended or terminated only by the written 313 agreement of all the parties hereto. 314 Section 8. Governing Law. This Agreement and the rights and obligations hereunder shall be 315 governed by and construed and enforced in accordance with the internal laws of the State of 316 Indiana, without reference to any choice of law principles. 317 Section 9. Severability. If any portion of this Agreement is held or deemed to be, or is, 318 invalid, illegal, inoperable or unenforceable, the validity, legality, operability and enforceability of 319 the remaining portions of this Agreement shall not be affected, and this Agreement shall be 320 construed as of it did not contain such invalid, illegal, inoperable or unenforceable portion. 321 Section 10. Interpretation. The use herein of the singular shall be construed to include the 322 plural, and vice versa. Unless otherwise indicated, the words 'hereof herein,” “hereby and 323 “hereunder,” and words of similar import, refer to this Agreement as a whole and not to any 324 particular section, subsection, clause or other portion of this Agreement. 325 Section 11. Captions. The captions appearing in this Agreement are included herein for 326 convenience of reference only, and shall not be deemed to define, limit or extend the scope or intent 327 of any rights or obligations under this Agreement. 328 329 Docusign Envelope ID: 98451C03-3FDF-4CC1-89D2-C5902F8C15A4