HomeMy WebLinkAbout~Master - Authorizing Issuance of Sewer Revenue Bonds ORDINANCE NO. 953
AN ORDINANCE authorizing and providing for the issuance
and securing the payment of $745, 000 Sewer Revenue Bonds
of the City of Ames, Iowa, under the provisions of Chap-
ter 394 of the Code of Iowa, for the purpose of defraying
the cost, to that amount, of constructing sewage works and
facilities in and for said City.
WHEREAS in order to adequately provide for the collection,
treatment, purification and disposal in a sanitary manner of waste
and sewage in the City of Ames, Story County, Iowa, it is necessar
and desirable that said City construct sewage works and facilities,
identified as "Division I,", consisting generally of approximately
4424 lineal feet of 18" pipe, 988 lineal feet of 21" pipe, 12, 014
lineal feet of 36 " pipe, 212 lineal feet of 36 " extra strength
concrete pipe, 15 standard manholes, eleven 5 ' diameter manholes,
syphons under. Squaw Creek and the Skunk River, three special
structures and appurtenances and accessories including street
crossing, rebuilding of drives, removal and replacement of top
soil and clearing and grubbing, all as contemplated by the plans
and specifications therefor prepared by the Engineering Department
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of the City of Ames now on file in the Office of the City Clerk,
and the cost of said works and facilities is estimated to be
$400, 000; and
WHEREAS it is also necessary and advisable that additional
sewage works and facilities, identified as "Division II ", be con-
structed consisting generally of rearranging the raw sewage pumps,
including modification of the wet well, alterations in pump piping
and wiring and structural modifications, installing a new fully
equipped sludge digestion tank, including piping and electrical
and structural modifications to the control building and connectin
tunnel to the main building, and alterations in the piping of the
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existing digesters and piping and controls of the heat exchange '
equipment in the main building, building additional sludge drying
beds and storage lagoons, converting the present primary digester
to high-rate operation by installing gas mixing equipment and
additional feed and draw-off lines and changing gas collection
provisions, and acquiring a new floating steel dome gas holder
for the present secondary digester, including modifications of
existing structure and piping, all as contemplated by the report
of the City Engineer now on file in the office of the City Clerk,
and the cost of said additional works and facilities, identified
as "Division II ", is estimated to be $345,000; and
WHEREAS in order to pay the cost of said sewage works and
facilities, in the aggregate amount of $745,000, it is necessary
that said City issue its revenue bonds as authorized and permitted
by Chapters 23 and 394 of the Code of Iowa, 1958, as amended, such
bonds to be payable solely from the net revenues of the municipal
sewage disposal works and facilities of said City, but with the
right reserved to the City to issue additional revenue bonds from
time to time ranking on a parity therewith; and
WHEREAS bonds in the amount of $400, 000 must be issued immed-
iately to pay the cost of the trunk sewer line, hereinbefore iden-
tified as "Division I " of said project, and the remaining bonds
are to be issued as and when additional funds are required in
order to pay the cost of the sewage treatment plant improvements,
hereinbefore identified as "Division II " of said project; and
WHEREAS a notice of the intention of this City Council to
take action for the issuance of $745, 000 Sewer Revenue Bonds of
said City has heretofore been duly published and no petition
setting forth objections to such proposed action has been filed
in the office of the City Clerk and no petition has been filed
requesting that the proposition of issuing said bonds be submitted
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to the voters of said City; and
WHEREAS said City has heretofore established charges, rates
or rentals for sewer services to be collected as revenues of the
municipal sewage disposal works and facilities of said City and
said revenues have not been heretofore pledged and are available
for the payment of the revenue bonds hereinafter authorized;
NOW, THEREFORE, Be It and It Is Hereby Ordained by the City
Council of the City of Ames, Iowa, as follows:
Section 1. That for the purpose of defraying the cost, to
the amount of $745, 000, of constructing sewage works and facilities
necessary for the collection, treatment, purification and disposal
in a sanitary manner of waste and sewage in said City, as referred
to in the preamble hereof, there be and there are hereby authorized
to be issued the negotiable interest bearing revenue bonds of said
City of Ames in the principal amount of $745,000, each of which
shall be known and designated as a "Sewer Revenue Bond", bearing
date of December 1, 1959. Said bonds shall be numbered consecu-
tively from 1 to 745, inclusive, of the denomination of $1000 eac ,
and shall mature in numerical order as follows:
Bonds Numbered Amount Maturity
1 to 20, inclusive $20,000 December 1, 19 0
21 to 65, inclusive 45,000 December 1, 19 1
66 to 115, inclusive 50, 000 December 1, 19 2
116 to 175, inclusive 60,000 December 1, 19 3
176 to 230, inclusive 55,000 December 1, 19 4
231 to 285, inclusive 55, 000 December 1, 19 5
286 to 335,inclusive 50, 000 December 1, 19 6
336 to 390, inclusive 55,000 December 1, 19 7
391 to 445,inclusive 55, 000 December 1, 19 8
446 to 500, inclusive 55,000 December 1, 19 9
501 to 555, inclusive 55, 000 December 1, 19 0
556 to 610, inclusive 55,000 December 1, 19 1
611 to 665, inclusive 55,000 December 1, 1972
666 to 705, inclusive 40,000 December 1, 1973
706 to 745, inclusive 40, 000 December 1, 1974
Provided, however, that bonds numbered 501 to 745, inclusive, shall
be redeemable by said City prior to maturity in whole, or from
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time to time in part in the inverse order of their numbering, on
December 1, 1969, or on any interest payment date thereafter, upon
terms of par and accrued interest to the redemption date. Notice
of any such redemption as aforesaid, identifying the bond or bonds
to be redeemed, shall be published at least once not less than
thirty (30) days prior to such redemption date in a newspaper of
general circulation throughout the State of Iowa. All of such
bonds as to which said City reserves and exercises the right of
redemption and as to which notice as aforesaid shall have been
given and for the redemption of which funds are duly provided,
shall cease to bear interest on the redemption date.
Bonds of said issue numbered 1 to 350, inclusive, 391 to 400,
inclusive, 446 to 455, inclusive, 501 to 510, inclusive, 556 to
565, inclusive, and 611 to 620, inclusive, in the principal amount
of $400, 000, shall be currently issued to pay the cost of "Division
I " of the project as referred to in the preamble hereof, such
bonds to bear interest at the rate of Three and three-quarters per
cent (3-3/4/) per annum. The remaining bonds of said issue shall
be issued as and when additional funds are required, to pay the
cost of "Division II " of the project as referred to in the preambl
hereof, and shall bear interest at such rate or rates as may be
determined at the public sale of said remaining bonds. Interest
to maturity of all of the bonds of said issue shall be payable
semiannually on June 1 and December 1 of each year.
Both principal and interest of said bonds shall be payable
in lawful money of the United States of America, at the office of
the City Treasurer in and of the City of Ames, Iowa. All of said
bonds and the interest thereon, together with the principal of and
interest on any additional bonds as may be hereafter issued and
outstanding from time to time ranking on a parity therewith as
hereinafter provided, shall be payable solely from the bond and
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interest redemption sinking fund hereinafter created and shall be
a valid claim of the holder thereof only against said fund, and
none of said bonds shall be a general obligation of said City nor
payable in any manner by taxation, nor shall the City be in any
manner liable by reason of the failure of the net earnings of sai
municipal sewage disposal works and facilities to be sufficient
for the payment in whole or in part of said bonds and interest
thereon, but said bonds, together with any additional bonds as
may be hereafter issued and outstanding on a parity therewith,
shall be payable, both as to principal and interest, solely and
only from the future net earnings of said works and facilities
pledged therefor as hereinafter provided.
Section 2. That upon presentation at the office of the City
Treasurer of said City of any of said bonds same may be registere
as to principal in the name of the owner on the books in his
office, such registration to be noted on the reverse side of the
bonds by the City Treasurer, and thereafter the principal of such
registered bonds shall be payable only to the registered holder,
his legal representatives or assigns. Such registered bonds shall
be transferable to another registered holder, or back to bearer,
only upon presentation to said City Treasurer with a legal assign-
ment duly acknowledged or proved. Registration of any of such
bonds shall not affect the negotiability of the coupons thereto
attached, but such coupons shall be transferable by delivery
merely.
Section 3. That said bonds and coupons shall be in substan-
tially the following form:
(Form of Bond)
UNITED STATES OF AMERICA
STATE OF IOWA
COUNTY OF STORY
CITY OF AMES
SEWER REVENUE BOND
No• $1000
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KNOW ALL MEN BY THESE PRESENTS: That the City of Ames, in
the County of Story, and State of Iowa, for value received, hereb
promises to pay to bearer or, if this bond be registered as to
principal, to the registered holder hereof, from the special
fund provided therefor, as hereinafter set forth, the sum of One
Thousand Dollars ($1000) on the first day of December, 19 and
from said special fund to also pay interest on said sum from the
date hereof at the rate of per cent
( N per annum, payable semiannually on the first days of
June and December in each year until said principal sum is paid,
except as the provisions hereinafter set forth with respect to
redemption prior to maturity may be and become applicable hereto,
all such interest as may accrue on and prior to the maturity of
this bond to be paid only upon presentation and surrender of the
coupons hereto attached as they severally become due; both the
principal of and interest on this bond being payable in lawful money
of the United States of America at the office of the City Treasur r
in and of the City of Ames, Iowa.
This bond is one of a duly authorized series of bonds number Ed
consecutively from 1 to 745, inclusive, issued by said City pur-
suant to the provisions of Chapters 23 and 394 of the Code of
Iowa, 1958, and all laws amendatory thereof and supplementary
thereto, and in conformity with an ordinance of the City Council
of said City duly enacted on the 22nd day of December, 1959, for
the purpose of defraying the cost of constructing sewage works
and facilities necessary for the collection, treatment, purifi-
cation and disposal in a sanitary manner of waste and sewage in
said City, which ordinance is constituted a part of the contract
evidenced by this bond to the same extent as if herein fully set
forth.
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This bond and the series of which it is one, together with
any additional bonds as may be hereafter issued and outstanding
from time to time ranking on a parity therewith under the con-
ditions set forth in the ordinance authorizing said series as
hereinbefore referred to, are payable solely and only from and
are secured by net earnings to be derived from the operation of
the municipal sewage disposal works and facilities of said City,
which shall be sufficient to pay the principal of and interest
upon said bonds as and when the same become due and payable, and
a sufficient portion of which has been ordered set aside as a
special fund and is hereby pledged for that purpose. This bond
is not a general obligation of said City nor payable in any manner
by taxation or from other funds. Said City covenants it will fix
such rates for the services of said works and facilities and will
collect and account for income and revenues therefrom sufficient
to promptly pay the principal of and interest on this bond, the
series of which it is one, and any additional bonds as may from
time to time be outstanding ranking on a parity therewith as the
same will become due.
The City of Ames reserves the right to call and redeem bonds
of this issue numbered 501 to 745, inclusive, prior to maturity
in whole, or from time to time in part in the inverse order of
their numbering, on December 1, 1969, or on any interest payment
date thereafter, upon terms of par and accrued interest to the
redemption date. Notice of any such redemption as aforesaid,
identifying the bond or bonds to be redeemed, will be published
at least once not less than thirty (30) days prior to the redemp-
tion date in a newspaper of general circulation throughout the
State of Iowa. All of such bonds as to which said City reserves
, and exercises the right of redemption and as to which notice as
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aforesaid shall have been given and for the redemption of which
funds are duly provided, shall cease to bear interest on the re-
demption date.
This bond is fully negotiable but may be registered as to
principal only in the name of the holder on the books of said City
in the office of its City Treasurer, such registration to be evi-
denced by notation on the back hereof by the Treasurer, after
which no transfer shall be valid unless made on said books and
similarly noted hereon, but it may be discharged from such regis-
tration by being transferred to bearer, after which it shall be
transferable by delivery but it may be again registered as before.
The registration of this bond as to principal shall not restrain
the negotiability of the coupons by delivery merely.
It Is Hereby Certified, Recited and Declared that all acts,
conditions and things required to exist, happen and be performed
precedent to and in the issuance of this bond and the series of
bonds of which it is one, have existed, have happened and have
been performed in due time, form and manner as required by law,
and that the issuance of this bond does not exceed or violate any
constitutional or statutory limitation or provision and that a
sufficient amount of the income and revenues of said municipal
sewage disposal works and facilities of said City has been pledge
to and will be set aside into said special fund by said City for
the prompt payment of the principal of and interest on this bond
and the series of which it is one.
IN TESTIMONY WHEREOF said City of Ames, by its City Council,
has caused this bond to be signed by its Mayor and attested by it
City Clerk, with the seal of said City affixed, and the coupons
hereto attached to be executed with the facsimile signatures of
the said Mayor and City Clerk, which officials by the execution o
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this bond do adopt as and for their own proper signatures their
respective facsimile signatures appearing on said coupons, this
first day of December, 1959.
'+ Mayor
Attest:
City Clerk
(Form of Coupon)
No. $
On the first day of_ 19 , the City of
Ames, Iowa, will pay to bearer
Dollars ($ ) out of the special fund provided therefor, at
the office of the City Treasurer, Ames, Iowa, as provided in and
for semiannual interest then due on its Sewer Revenue Bond, dated
December 1., 1959, No.
Mayor _—__--
Attest:
City Clerk
On the back of each bond there shall be printed the certifi-
cate of the City Treasurer in the following form:
"The issuance of this bond has been
duly and properly registered in my office
as of the First day of December, 1959.
Treasurer of the City of Ames "
jForm for Registration to be
printed on the back of each bond)
Date of In Whose Signature of
Registration Name Registered City Treasurer
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Section 4. That said bonds shall be signed by the Mayor and
attested by the City Clerk and sealed with the corporate seal of
said City and the interest on said bonds shall be evidenced by
coupons attached thereto, which shall be executed with the facsi-
mile signatures of said Mayor and City Clerk, and said officials
by the execution of said bonds shall adopt as and for their own
proper signatures their facsimile signatures on said coupons.
When and as executed said bonds shall be delivered to the City
Treasurer to be by him duly registered as to issuance as provided
by law; and said Treasurer shall sign the certificate hereinbefor
set out in Section 3 and endorsed upon the back of each bond and
shall thereupon deliver said bonds to the purchasers thereof,
upon payment of the purchase price, same being at least par and
accrued interest, and all action heretofore taken in connection
with the sale of said bonds, to the amount of $400, 000, is hereby
ratified and confirmed in all respects. The proceeds received by
the sale of said bonds shall be applied to defraying the cost of
constructing said sewage works and facilities as referred to in
the preamble hereof, provided that upon the issuance of the bonds
there shall be withdrawn from the proceeds thereof all sums re-
ceived as accrued interest, which shall be paid into the "Sewer
.Revenue Bond Sinking Fund", hereinafter created, to be used for
the purpose of paying interest on the bonds. Any balance of said
proceeds remaining after the completion of the sewage works and
facilities shall be deposited in said Sinking Fund and shall be
used to pay said bonds and the interest thereon.
Section 5. That from and after the issuance of the bonds
hereby authorized the municipal sewage disposal works and facilities
of said City of Ames shall be continuously operated by said City
as a revenue producing, self-liquidating undertaking and the
revenues derived from the rates and charges for sewer services
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furnished by and through said works and facilities shall be set
aside into a separate special fund to be used (1) to pay the
reasonable expenses of operation, repair and maintenance of the
works and facilities; (2) to pay the interest on and principal
of the bonds hereby authorized and any bonds ranking on a parity
therewith from time to time outstanding or bonds issued to refund
the same; (3) to accumulate and maintain a margin of safety and
reserve for the payment of said bonds and interest thereon; and
(4) to pay the cost of additional sewage disposal works and
facilities or necessary improvements and extensions to the sewage
disposal works and facilities of said City or bonds issued for
account thereof or to refund the same.
There is hereby created a special fund to be known and desig-
nated as the "Sewer Revenue Operation and Maintenance Fund " into
which there shall be paid each month from the gross revenues the
amount of the reasonable expenses of operation, repair and main-
tenance of the municipal sewage disposal works and facilities of
said City; and said special fund shall be used and disbursed only
for that purpose.
There is hereby created a special fund to be known and desig-
nated as the "Sewer Revenue Bond Sinking Fund" (hereinafter some-
times referred to as the "Sinking Fund") into which there shall be
paid such portion of the balance of said earnings as shall be suf-
ficient to pay the interest upon and principal of the bonds here-
by authorized and any additional bonds ranking on a parity therewi h
as may be issued and outstanding from time to time under the res-
trictions and conditions specified in Section 10 hereof as the
same become due and to create and maintain a reserve therefor, and
it is hereby determined that the minimum amount so to be paid into
said Sinking Fund during the periods of twelve months preceding
1..
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December 1 of each year shall be not less than as follows:
A sum equal to 100% of the principal of all of said
bonds maturing on the December 1 next succeeding,
plus a sum equal to 100% of the interest becoming
due on and prior to December 1 next succeeding on
all of said outstanding bonds; provided, that until
there has been accumulated in such Sinking Fund as
a reserve an amount equal to interest for two (2)
years on the bonds then outstanding, the amounts to
be so set apart and paid shall be 110% of said
principal and interest instead of 100%; and pro-
vided also, that no further payments need be made
into said Sinking Fund when and so long as the
amount therein is sufficient to retire all of said
bonds then outstanding and to pay all interest to
become due thereon prior to such retirement.
If and to whatever extent additional bonds are
issued ranking on a parity with the bonds herein
authorized under the conditions set forth in Sec-
tion 10 of this ordinance, provision shall be made
for increasing such payments into said Sinking Fund
to meet maturing installments of principal of and
interest on such additional bonds and to create
and maintain a reasonable reserve therefor.
The amount by which any such payment into said Sinking Fund
in any year exceeds the aggregate amount properly payable from
said fund in such year shall be held in said Sinking Fund as a
reserve for contingencies and used solely as herein provided. If
in any year the City shall for any reason fail to pay into said
Sinking Fund the full amount above stipulated, then an amount
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equivalent to such deficiency shall be set apart and paid into sai
fund from the first available revenues of the following year or
years, as the case may be, and same shall be in addition to the
amount otherwise herein provided to be so set apart and paid durin
such succeeding year or years.
If for any reason the City shall fail to make any such payme t
into said Sinking Fund, as aforesaid, during any such year, any
sums then held as a reserve for contingencies shall be used for th
payment of any portion of the interest on or principal of said
bonds as to which there would otherwise be default, but such re-
serve shall be reimbursed therefor from the first available payments
made into the Sinking Fund in the following year or years in excess
of the required payment for the then current year.
Such annual payments provided to be made into said fund pre-
ceding each December 1 shall be made in equal monthly installments
on or before the first day of each month, except that when the
first day of any month shall be a Sunday or a legal holiday, then
such payments shall be made on the next succeeding secular day.
Such Sinking Fund shall be used solely and only and is hereby
pledged for the purpose of paying the principal of and interest on
the bonds herein authorized to be issued and additional bonds rank-
ing on a parity therewith as may be issued and outstanding from
time to time, and for no other purpose.
All money held in said Sinking Fund shall be deposited in
banks and all such deposits exceeding $10, 000 in any one bank shall
be continuously secured by a valid pledge of direct obligations of
the United States Government having an equivalent market value or
may be invested in direct obligations of the United States Govern-
ment; provided, however, that sale shall be made of a sufficient
amount of such obligations in the event that it shall prove neces-
sary to draw upon said reserve so invested.
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Section 6. There shall be and there is hereby created a
special fund to be known and designated as the "Surplus Fund" into
which there shall be set apart and paid all of the net earnings
remaining after first making the required payments into the "Sewer
Revenue Bond Sinking Fund". All moneys credited to said Surplus
Fund shall be used for the payment of the principal of and interest
on the bonds authorized to be issued under the terms of this ordi-
nance and bonds ranking on a parity therewith whenever for any
reason the funds on deposit in the "Sewer Revenue Bond Sinking
Fund" are insufficient to pay such principal and interest when due
or may be used to purchase any of said bonds then outstanding at
not exceeding par and accrued interest, to call and redeem such
bonds as may be then subject to redemption prior to maturity, to
pay the principal of and interest on bonds issued to refund any
of the bonds herein authorized to be issued or bonds ranking on a
parity therewith, to pay the cost of sewage disposal works and
facilities or necessary improvements and extensions to the sewage
disposal works and facilities of said City, or to pay the principal
of and interest on subordinate revenue bonds of said City issued
to pay the cost of sewage disposal works and facilities or improve-
ments and extensions to the sewage disposal works and facilities
of said City, or bonds issued to refund such subordinate revenue
bonds.
Section 7. The rates for all services rendered by the muni-
cipal sewage disposal works and facilities shall be billed and
collected at the same time as rates and charges for water and wate
service furnished by and through the municipal waterworks of said
City and such sewer service charges shall be equitable, reasonable
and just, taking into account and consideration the cost and value
of said works and facilities and the cost of maintaining, repairin
and operating the same and the proper and necessary allowances for
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depreciation thereof and the amounts necessary for the retirement
of all outstanding bonds and the accruing interest on all such
bonds and to create and maintain the reserve therefor as herein-
before provided, and there shall be charged such rates and amounts
as shall be adequate to meet the requirements of this and the pre-
ceding sections hereof. No free service shall be furnished by the
municipal sewage disposal works and facilities.
The City of Ames agrees that so long as any of the bonds
hereby authorized or any bonds ranking on a parity therewith remai
outstanding it will keep proper books of record and account,
separate from all other municipal records and accounts, showing
complete and correct entries of all transactions relating to said
municipal sewage disposal works and facilities, and that the
holders of any of said bonds shall have the right at all reasonable
times to inspect the works and facilities and all records, account
and data relating thereto. -The City further agrees that it will
within sixty days following the close of each calendar year cause
an audit of such books and accounts to be made by a certified
public accountant not in the regular employ of the City showing
the receipts and disbursements for account of the municipal sewage
disposal works and facilities and that copies of such audit will
be forwarded to the original purchasers of the bonds authorized t
be issued under the terms of this ordinance. Each such audit, in
addition to whatever matters may be thought proper by the account-
ant to be included therein, shall include the following:
(a) A statement in detail of the income and expendi-
tures of the municipal sewage disposal works and
facilities for such year.
(b) The accountant 's comments regarding the manner in
which the City has carried out the requirements
of this ordinance, and his recommendations for
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any changes or improvements in the operation of
the works and facilities.
(c) A list of all the insurance policies in force
at the end of the year, setting out as to each
policy the amount of the policy, the risks
covered, the name of the insurer and the ex-
piration date of the policy.
(d) The number of customers served by the municipal
sewage works and facilities.
All expenses incurred in the making of the audits required by this
Section shall be regarded as a maintenance and operation expense.
It is hereby represented and certified that pursuant to
Chapter 28 of the Municipal Code of said City as amended by Ordi-
nance Number 897 of said City, just and equitable rates, charges
or rentals for the use of and service rendered by the sewage dis-
posal works and facilities of said City have been established and
are being collected by said City for services of said works and
facilities and that copies of such rates, charges and rentals will
be continuously on file in the office of the City Clerk of said
City which shall be open to inspection by all parties interested.
The schedule of rates, charges and rentals shall at all times be
adequate to produce gross revenues and income from said works and
facilities to pay the expenses of operation, repair and maintenance
thereof and leave a balance of net revenues and income sufficient
to make the prescribed payments into the Sinking Fund, as herein-
before set forth, and such schedule shall be revised, changed and
readjusted whenever necessary so that the aggregate of the rates
or charges will be sufficient for such purpose. All rates or
charges if not paid within sixty days from their due date shall
constitute a lien upon the premises served by such works and
i
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facilities and shall be collected in the same manner as taxes.
Section 8. The City of Ames hereby covenants and agrees
with the holder or holders of the bonds herein authorized to be
issued, or any of them, that it will faithfully and punctually
perform all duties with reference to said municipal sewage dis-
posal works and facilities required by the Constitution and laws
of the State of Iowa, including the making and collection of
reasonable and sufficient rates for services rendered by said
works and facilities, and will segregate the revenues therefrom
and make application thereof consistent with and as contemplated
and provided by this ordinance; and said City hereby irrevocably
covenants, binds and obligates itself not to sell, lease, mortgag
or in any manner dispose of any integral part of said works and
facilities, including any and all appurtenances thereto and exten-
sions and additions that may be made thereto, until all the bonds
herein authorized to be issued and any additional bonds ranking
on a parity therewith shall have been paid in full, both principal
and interest, or until legal and sufficient provision for such
payment shall have been made, and further covenants and agrees
with the holders of said bonds to maintain in good condition and
continuously operate said works and facilities and appurtenances
and to charge and collect such rates and charges for services
rendered thereby so that the gross revenues will be sufficient at
all times to provide for the payment of the operation, repair and
maintenance of said works and facilities and leave net amounts to
be paid into the bond and interest redemption fund as provided
herein.
Section 9. That any holder of said bonds or of any of the
coupons may either at law or in equity, by suit, action, mandamus
or other proceedings protect and compel performance of all duties
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imposed or required by this ordinance or the law pursuant to which
said bonds are to be issued, including the making and collection
of sufficient rates and the segregation of the income and revenues
and the application thereof.
Section 10. The bonds hereby authorized and from time to
time outstanding shall not be entitled to priority or preference,
one over the other, in the application of the net earnings of the
municipal sewage disposal works and facilities, regardless of the
time or times of the issuance of such bonds, it being the intentio
that there shall be no priority among the bonds authorized to be
issued under this ordinance regardless of the fact that they may
have been actually issued and delivered at different times. Said
City hereby covenants and agrees that so long as any of the bonds
issued pursuant to this ordinance are outstanding and unpaid no
other bonds or obligations payable from the earnings of the muni-
cipal sewage disposal works and facilities of said City will be
issued except upon the basis of such additional bonds or obligations
being subject to the priority and security for payment of the
Sewer Revenue Bonds then outstanding under the provisions of this
ordinance; provided, however, that said City of Ames hereby re-
serves the right and privilege of issuing additional bonds from
time to time payable from the same source and ranking on a parity
with the bonds herein authorized or permitted to be issued as may
be then outstanding in order to pay the cost of sewage disposal
works and facilities or necessary improvements and extensions to
the municipal sewage disposal works and facilities or for refunding
any bonds issued to pay the cost of sewage works and facilities
or improvements thereto, but only if there shall have first been
procured and filed with the City Clerk of said City a statement
by an independent certified public accountant not in the regular
employ of the City reciting the opinion based upon necessary
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investigations that the net earnings of the municipal sewage dis-
posal works and facilities of said City for the preceding calendar
year (with adjustments as hereinafter provided) were equal to at
least one and one-third times the maximum amount that will become
due in any calendar year for both principal of and interest on the
bonds then outstanding and the bonds then proposed to be issued
which mature prior to the longest maturity of any of the then out-
standing bonds, and provided also that the interest payment dates
for any such additional bonds shall be semiannually on June 1 and
December 1 of each year, and the principal maturities of such add-
itional bonds shall be on December 1 of the year in which any of
such principal is scheduled to become due, and provided also that
at the time the City issues any such additional bonds it shall
have entered into written contracts for the immediate acquisition
of substantially all of the necessary materials for the works and
facilities to be constructed or acquired through the application
of the proceeds of such additional bonds. The terms "net earning "
or "net revenues" are defined as gross revenues, less operating
expenses which shall include salaries, wages, cost of maintenance
and operation, materials and supplies and insurance, as well as
all other items as are normally included under recognized account-
ing practices, but shall not include allowance for depreciation
in the value of physical properties, and the amount of gross re-
venues aforesaid shall be adjusted for the purpose of the fore-
going computations by an independent consulting engineer not in
the employ of the City and not otherwise interested in the munici-
pal sewage disposal works and facilities of said City, or the
additions or improvements or extensions thereto, so as to reflect
any revision in the schedule of rates and charges being imposed
at the time of the issuance of any such additional bonds. It is
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hereby recognized and agreed that the bonds in the amount of
$345,000 authorized under the terms of this ordinance to pay the
cost of "Division II " of the project, as referred to in the pre-
amble hereof, may be issued as and when the proceeds of said bond
are required for that purpose and without respect to the conditions
hereinbefore prescribed for the issuance of parity bonds.
Section 11. The provisions of this ordinance shall constitute
a contract between the City of Ames and the holders of the bonds
herein authorized to be issued, and after the issuance of any of
the bonds no change, variation, or alteration of any kind of the
provisions of this ordinance shall be made until such time as all
of said bonds issued hereunder and the interest thereon have been
paid in full.
Section 12. If any section, paragraph, clause or provision
of this ordinance shall be held invalid, the invalidity of such
section, paragraph, clause or provision shall not affect any of
the remaining provisions of this ordinance.
Section 13. All ordinances, resolutions and orders, or part
thereof in conflict with the provisions of this ordinance are, to
the extent of such conflict, hereby repealed.
Passed and approved December 23, 1959.
Mayor
Attest:
City Cler
Published December 29, 1959.
Recorded December 23, 1959.
City C1
Moved by Lawlor and seconded by Judge that Ordinance No. 953 be
passed on its first reading.
Voting Aye: Judge, Smith, Lawlor, King, and Schilletter
Voting Nay: None
Absent: Armstrong
Moved by Smith and seconded by Schilletter that rules governing
the passage of ordinances be suspended, the second and third
readings be omitted, and Ordinance No. 953 be placed on its final
passage.
Voting Aye: Judge, Smith, Lawlor, King, and Schilletter
Voting Nay: None
Absent: Armstrong
Moved by Schilletter and seconded by King that Ordinance No. 953
do now pass.
Voting Aye: Judge, Smith, Lawlor, King, and Schilletter
Voting Nay: None
Absent: Armstrong
Mayor De Hart declared Ordinance No. 953 duly adopted.
I, M. W. Jordan, City Clerk of the City of Ames, Iowa, do hereby
certify that the above and foregoing Ordinance No. 953 was duly
and properly passed at a meeting of the City Council on the 23rd
day of December, 1959, and published in the Ames Daily Tribune on
the 29th day of December, 1959.
M. W. Jorda , City Clerk