HomeMy WebLinkAboutORDINANCES-1990-092-O-90•
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ORDINANCE NO. 92-0-90
AN ORDINANCE authorizing and providing for the
issue of not to exceed $11,330,000 Water Revenue
Bonds, Series 1990, of the City of Evanston, Cook
County, Illinois, for the purpose of defraying the
cost of improving and extending the present water-
works system of said City, and for the purpose of
refunding certain water revenue bonds of the City,
prescribing all the details of said bonds, and
providing for the collection, segregation and dis-
tribution of the revenue of the waterworks system
of said City.
WHEREAS it is deemed advisable, necessary and for the
best interests of the City of Evanston, Cook County, Illinois
(the "City") that improvements and extensions to its municipally -
owned waterworks system be constructed and installed, including,
but not limited to, constructing a. chlorine storage and handling
building, upgrading the existing electrical substation and re-
placing and upgrading various electrical switch gears, together
with all necessary pipes, valves, fittings, connections,
ancillary facilities and appurtenances, costs of engineering,
legal and financing services, and contingencies, and the total
estimated cost of such project (the "Project") is the sum of
$3,500,000, all in accordance with the 1990-1994 Long Range
Capital Improvement Program of the City, heretofore approved by
the City Council and now on file in the office of the City Clerk
for public inspection; and
WHEREAS the City does not have funds available for the
purpose of paying the cost of the Project, and it will be neces-
sary for the City to borrow the principal sum of $3,000,000 and
in evidence thereof issue its revenue bonds therefor; and
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WHEREAS pursuant to the provisions of Division 129 of
Article 11 of the Illinois Municipal Code, as amended, and its
powers as a home rule unit (collectively, such code and con-
stitutional powers being the "Act"), the City is authorized to
issue water revenue bonds for the purpose of paying the cost of
said improvements and extensions; and
WHE.RF�►� the City Council (the "City Council") of the
City has heretofore issued water revenue bonds, as follows:
Name and
Original
Pursuant to
Currently
Dated Date
Amount($)
Ordinance
Outstanding($)
Water Revenue Bonds
May 1, 1964
4,080,000
40-0-64
1,100,000
Water Revenue Bonds,
Series 1973
May 1, 1974
1,400,000
76-0-72
375,000
Water Revenue Bonds,
Series 1980
May 1, 1980
5,000,000
25-0-80
4,550,000
Water Revenue Bonds,
Series 1982
October 1, 1982
5,000,000
99-0-82
4,575,000
Water Revenue Bonds,
Series 1984
December 1, 1984
3,300,000
119-0-84
2,925,000
Water Revenue Bonds,
Series 1988
October 1, 1988 1,000,000 60-0-88 975,000
all which said outstanding bonds aggregate the principal amount
of $14,500,000; and
WHEREAS of the aforesaid water revenue bonds, the
Series 1982 Bonds ("Series 1982 Bonds") and the Series 1984 Bonds
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("Series 1984 Bonds") which become due on and after the
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respective first date of optional redemption therefor (to -wit,
January 1, 1993, for the Series 1982 Bonds and January 1, 1995,
for the Series 1984 Bonds) bear interest at higher rates than
those currently available in the bond markets, and may be advance
refunded for net debt service savings; and
WHEREAS pursuant to the Act, the City is authorized to
issue water revenue bonds to accomplish such refunding (the
"Refunding") and it is deemed necessary and desirable to provide
for the issuance of not to exceed $8,330,000 principal amount
water revenue bonds for such purpose and for the purpose of
realizing such net debt service savings as additional proceeds of
bonds available for the Project, and also for expenses incidental
to the Refunding and to the issuance of all such bonds; and
WHEREAS upon the Refunding occurring simultaneously with
the delivery of the hereinafter defined Bonds, there shall remain
outstanding and unpaid all of the aforesaid water revenue bonds,
less the principal of all Series 1982 Bonds due on and after
January 1, 1993, and also less the principal of all Series 1984
Bonds due on or after January 1, 1995 (such bonds less such
principal being the "Currently Outstanding Bonds"); and
WHEREAS pursuant to the provisions of said ordinances (the
"Currently Outstanding Bond Ordinances") adopted by the City
Council authorizing the Currently Outstanding Bonds, while the
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Currently Outstanding Bonds are outstanding, no additional bonds
shall be issued to share ratably and equally in the income
derived from the operation of the waterworks system (as herein-
after more specifically defined, the "System") of the City unless
the revenues for the fiscal year then next preceding were
sufficient to comply with the specific restrictions set forth in
each of the Currently Outstanding Bond Ordinances; and
WHEREAS the City Council has caused an audit of the
earnings of the System to be made for the last preceding fiscal
year, and the City Council has heretofore determined and does
hereby determine that the earnings of the System for the last
preceding fiscal year comply with the covenants and restrictions
provided for in and by each of the Currently Outstanding Bond
Ordinances, and that the earnings for such last preceding fiscal
year are sufficient to permit the issuance of the not to exceed
$11,330,000 additional Water Revenue Bonds, Series 1990, herein
provided for, to share ratably and equally in the income derived
from the operation of the System with the Currently Outstanding
Bonds;
NOW, THEREFORE, Be It Ordained by the City Council of
the City of Evanston, Cook County, Illinois, in the exercise of
its home rule powers, as follows:
Section 1. Definitions
The following words and terms used in this ordinance
shall have the following meanings unless the context or use
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"Act" means the Illinois Municipal Code, as supple-
mented and amended, and the home rule powers of the City under
Section 6 of Article VII of the Illinois Constitution of 1970.
In the event of conflict between the provisions of said code and
home rule powers, the home rule powers shall be deemed to
supersede the provisions of said code.
"Bond" or "Bonds" means one or more, as applicable, of
the $11,330,000 Waterworks Revenue Bonds, Series 1990, authorized
to be issued by this Ordinance.
"Bond Register" means the Books of the City kept by the
Bond Registrar to evidence the registration and transfer of the
Bonds.
"Bond Registrar" means American National Bank and Trust
Company of Chicago, a national banking association, with princi-
pal corporate trust offices located in Chicago, Illinois, in its
capacity as bond registrar and paying agent hereunder, or
successor thereto or designated hereunder.
"City" means the City of Evanston, Cook County, Illi-
nois.
"City Council" means the City Council of the City.
"Code" means the Internal Revenue Code of 1986.
"Currently Outstanding Bonds" means the bonds less
applicable principal due to the Refunding described and defined as
such in the preambles hereto.
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"Currently Outstanding Bond Ordinances" means the
ordinances described and defined as such in the preambles hereto.
"Fiscal Year" means a twelve-month period beginning
January 1 of the calendar year and ending on December 31 of such
year or such other fiscal year as the City may select in accord-
ance with the limitations herein set forth.
"Maximum Annual Debt Service" means an amount of money
equal to the highest future principal and interest requirement of
all Outstanding Bonds required to be deposited into the Bond and
Interest Account created by this ordinance in any Fiscal Year,
including and subsequent to the Fiscal Year in which the compu-
tation is made. Any Outstanding Bonds required to be redeemed
pursuant' to mandatory redemption from said Bond and Interest
Account shall be treated as falling due on the date required to
be redeemed (except in the case of failure to make any such man-
datory redemption) and not on the stated maturity date of such
Outstanding Bonds.
"Net Revenues" means Revenues minus Operation and Main-
tenance Costs.
"Operation and Maintenance Costs" means all costs of
operating, maintaining and routine repair of the System, includ-
ing wages, salaries, costs of materials and supplies, taxes,
power, fuel, insurance, purchase of water or sewage treatment
services (including all payments by the City pursuant to long
term contracts for such services to the extent provided in such
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contracts); but excluding debt service, depreciation, or any
reserve requirements; and otherwise determined in accordance with
generally accepted accounting principles for municipal enterprise
funds.
"Outstanding Bonds" means Currently Outstanding Bonds,
Bonds and Parity Bonds which are outstanding and unpaid; pro-
vided, however, such term shall not include Bonds or Parity Bonds
(i) which have matured and for which moneys are on deposit with
proper paying agents, or are otherwise properly available,
sufficient to pay all principal thereof and interest thereon, or
(ii) the provision for payment of which has been made by the City
by the deposit in an irrevocable trust or escrow of funds, which
may be invested in direct, full faith and credit obligations of
the United States of America, the principal of and interest on
which will be sufficient, with any funds left uninvested, to pay
at maturity or as called for redemption all the principal of and
interest on such Bonds or Parity Bonds.
"Parity Bonds" means bonds or any other obligation to
be issued subsequent in time to the Bonds and which will share
ratably and equally in the earnings of the System with the
Currently Outstanding Bonds and the Bonds.
"Project" means the project described and defined as
such in the preambles hereto.
"Refunding" means the refunding of all of the principal
of the Series 1982 Bonds due on and after January 1, 1993 (to
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wit, $4,300,000 consisting of $200,000 due on said date and
$4,100,000 to be called for redemption on said date at a price of
102% of par) and all of the principal of the Series 1984 Bonds
due on and after January 1, 1995.(to wit, $2,450,000 consisting
of $125,000 due on said date and $2,325,000 to be called for
redemption on said date at a price of 102% of par); and means
further, incident thereto, the payment of interest on the
allocable share of the bonds for each such series refundings to
the respective dates of such series refundings.
"Revenues" means all gross revenues or income from
whatever source derived from the System, including (i) investment
income; (ii) connection, permit and inspection fees and the like;
(iii) penalties and delinquency charges; (iv) capital develop-
ment, reimbursement, or recovery charges and the like; (v)
annexation or pre -annexation charges insofar as designated by the
City Council as paid for System connection or service; but
excluding expressly (a) non -recurring income from the sale of
property of the System; (b) governmental or other grants; (c)
advances or grants made from the City; and as otherwise de-
termined in accordance with generally accepted accounting prin-
ciples for municipal enterprise funds.
"System" refers to all property, real, personal or
otherwise owned or to be owned by the City or under the control
of the City, and used for waterworks purposes, and any and all
further extensions, improvements and additions to the System.
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"Water Fund" means the "Water Fund of the City of
Evanston."
Section 2. Incorporation of Preambles
The City Council hereby finds that all of the recitals
contained in the preambles to this ordinance are full, true and
correct and does incorporate them into this ordinance by this
reference.
Section 3. Determination To Issue Bonds for Project
It is necessary and in the best interests of the City
to issue the Bonds to acquire and construct the Project for the
public health, safety and welfare and to provide for the Refund-
ing to achieve net debt service savings, to be realized through
further proceeds of Bonds for the Project.
Section 4. Determination of Useful Life
The City Council does hereby determine the period of
usefulness of the System and the Project to be 40 years from the
date of the Bonds.
Section 5. Bond Details
For the purpose of paying a part of the costs of the
Project, there shall be issued and sold the Bonds in the princi-
pal amount of not to exceed $11,330,000. The Bonds shall each be
designated "Water Revenue Bond, Series 1990" and be dated as of
September 1, 1990 (the "Dated Date"), and shall also bear the
date of authentication thereof. The Bonds shall be in fully
registered form, shall be in denominations of $5,000 and autho-
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rized integral multiples thereof (but no single Bond shall repre-
sent principal maturing on more than one date), shall be numbered
in such reasonable fashion as may be selected by the Bond Regis-
trar, shall bear interest at a rate or rates not to exceed the
maximum interest rate provided by law at the time of the sale of
Bonds, and shall mature serially on January 1 of the years and
not to exceed the amounts as follows (subject to the right of
prior redemption hereinafter stated):
Year Amount ($) Year Amount ($)
1993 300,000 1999 1,135,000
1994 690,000 2000 1,220,000
1995 970,000 2001 11080,000
1996 815,000 2002 1,515,000
1997 1,010,000 2003 1,545,000
1998 11050,000
subject to reduction of up to $50,000 in each year, as aforesaid,
so as to provide funds sufficient (only) to provide $3,000,000
for the Project, to pay costs of issuance of the Bonds, and to
provide such further funds for the Project as are realized from
the net debt service savings from the Refunding.
Each Bond shall bear interest at a rate not to exceed
10% per annum from the later of its Dated Date as herein provided
or from the most recent interest payment date to which interest
has been paid or duly provided for, until the principal amount of
such Bond is paid or duly provided for, such interest (computed
upon the basis of a 360-day year of twelve 30-day months) being
payable on July 1, 1991, and semiannually thereafter on January 1
and July 1 of each year. Interest on each Bond shall be paid by
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check or draft of the Bond Registrar, payable upon presentation
in lawful money of the United States of America, to the person in
whose name such Bond is registered at the close of business on
the 15th day of the month next .preceding the interest payment
date. The principal of and premium (if any) on the Bonds shall
be payable upon presentation in lawful money of the United States
of America at the principal corporate trust office of the Bond
Registrar or at successor Bond Registrar and locality.
Section 6. Redemption
Those of the Bonds due on or after January 1, 1998, are
subject to redemption and payment prior to their maturity, at the
option of the City, in whole or in part, from any available
funds, on any date on or after January 1, 1997, and if in part,
in integral multiples of $5, 000, in such order of maturity as determined by the C_ _
and within any maturity selected by lot by the Bond Registrar as
hereinafter provided, at a redemption price of par plus a
premium, expressed as a percentage of principal amount redeemed,
plus .accrued interest to the date fixed for redemption, during
the years as follows:
Year Premium ($)
1997 1.00
1998 0.75
1999 0.50
2000 0.25
2001 and each
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Unless waived by the Bond Registrar, the City shall
notify the Bond Registrar of the redemption of Bonds (by maturity
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and amount per maturity, if less than all Bonds of a maturity are
to be redeemed) not less than 45 days prior to the date of
redemption. In the event of a partial redemption of Bonds of a
given maturity, the particular Bonds or portions thereof to be
redeemed shall be selected by lot not more than 60 days prior to
the redemption date by the Bond Registrar. With respect to par-
tial redemptions, the Bond Registrar shall select the Bonds or
portion thereof to be redeemed by such method of lottery as the
Bond Registrar shall deem fair and appropriate; provided that
such lottery shall provide for the selection for redemption of
Bonds or portions thereof so that any $5,000 Bond or $5,000 por-
tion of a Bond shall be as likely to be called for redemption as
any other such $5,000 Bond or $5,000 portion.
The Bond Registrar shall promptly notify the City in
writing of the Bonds or portions of Bonds selected for redemption
and, in the case of any Bond selected for partial redemption, the
principal amount thereof to be redeemed.
Unless waived by the registered owner of Bonds to be
redeemed, official notice of any such redemption shall be given
by the Bond Registrar on behalf of the City by mailing the re-
demption notice by registered or certified mail not less than 30
days and not more than 60 days prior to the date fixed for re-
demption to each registered owner of the Bond or Bonds to be
redeemed at the address shown on the Bond Register or at such
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other address as is furnished in writing by such registered
owners to the Bond Registrar.
All official notices of redemption shall include the
name of the Bonds and at least the information as follows:
(1) the redemption date;
(2) the redemption price;
(3) if less than all of the Bonds of a single maturity are
to be redeemed, the identification (and, in the case of partial
redemption of any Bonds, the respective principal amounts) of the
Bonds to be redeemed;
(4) a statement that on the redemption date the redemption
price will become due and payable upon each such Bond or portion
thereof called for redemption and that interest thereon shall
cease to accrue from and after said date; and
(5) the place where such Bonds are to be surrendered for
payment of the redemption price, which place of payment shall be
the principal corporate trust office of the Bond Registrar.
Prior to any redemption date, the City shall deposit
with the Bond Registrar an amount of money sufficient to pay the
redemption price of all the Bonds or portions of Bonds which are
to be redeemed on that date.
Official notice of redemption having been given as
aforesaid, the Bonds or portions of Bonds so to be redeemed
shall, on the redemption date, become due and payable at the
redemption price therein specified, and from and after such date
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(unless the City shall default in the payment of the redemption
price) such Bonds or portions of Bonds shall cease to bear inter-
est. Neither the failure to mail such redemption notice, nor any
defect in any notice so mailed, to any particular registered
owner, shall affect the sufficiency of such notice with respect
to other Bonds. Notice having been properly given, failure of a
Bondholder to receive such notice shall not be deemed to invali-
date, limit or delay the effect of the notice or redemption
action described in the notice. Such notice may be waived in
writing by the registered owner entitled to receive such notice,
either before or after the event, and such waiver shall be the
equivalent of such notice. Waivers. of notice by registered
owners shall be filed with the Bond Registrar, but such filing
shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.
Upon surrender of such Bonds for redemption in accor-
dance with said notice, such Bonds shall be paid by the Bond
Registrar at the redemption price. The procedure for payment of
interest due on or prior to the redemption date shall be as here-
in provided for payment of interest otherwise due. Upon sur-
render for any partial redemption of any Bond, there shall be
prepared for the registered owner a new Bond or Bonds of like
tenor, of authorized denominations, of the same maturity and
bearing the same rate of interest in the amount of the unpaid
principal. If any Bond or portion of Bond called for redemption
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shall not be so paid upon surrender thereof for redemption, the
principal shall, until paid or duly provided for, bear interest
from the redemption date at the rate borne by the Bond or portion
of Bond so called for redemption. All Bonds which have been
redeemed shall be cancelled and destroyed by the Bond Registrar
and shall not be reissued.
In addition to the foregoing notice, further notice
shall'be given by the Bond Registrar on behalf of the City as set
out below, but no defect in said further notice nor any failure
to give all or any portion of such further notice shall in any
manner invalidate, limit or delay the redemption action if notice
thereof is given as above prescribed.
Each further notice of redemption given hereunder shall
contain the information required above for an official notice of
redemption plus (a) the CUSIP numbers of all Bonds being re-
deemed; (b) the date of issue of the Bonds as originally issued;
(c) the rate of interest borne by each Bond being redeemed; (d)
the maturity date of each Bond being redeemed; and (e) any other
descriptive information needed to identify accurately the Bonds
being redeemed.
Each further notice of redemption shall be sent at
least 35 days before the redemption date by registered or certi-
fied mail or overnight delivery service to all registered secu-
rities depositories then in the business of holding substantial
amounts of.obligations of types comprising the Bonds (such depos-
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itories now including Depository Trust Company of New York, New
York, and Midwest Securities Trust Company of Chicago, Illinois)
and to one or more national information services, chosen in the
discretion of the Bond Registrar, that disseminate notice of
redemption of obligations such as the Bonds.
Each such further notice shall be published one time in
The Bond Buyer, New York, New York or, if such publication is
impractical or unlikely to reach a substantial number of the reg-
istered owners of the Bonds, in some other financial newspaper or
journal which regularly carries notices of redemption of other
obligations similar to the Bonds, such publication to be made at
least 30 days prior to the date fixed for redemption.
Upon the payment of the redemption price of Bonds being
redeemed, each check or other transfer of funds issued for such
purpose shall bear the CUSIP number identifying, by issue and
maturity, the Bonds being redeemed with the proceeds of such
check or other transfer.
Parity Bonds hereinafter issued pursuant to the terms
hereof may be redeemable at such times and upon such terms as may
be determined at the time of authorization thereof.
Section 7. Amendment
The rights and obligations of the City and of the reg-
istered owners of Outstanding Bonds may from time to time be
modified or amended by a supplemental ordinance adopted by the
City Council with the written consent of the holders and regis-
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tered owners of not less than two-thirds of the principal amount
of all Outstanding Bonds (excluding any of said bonds owned by or
under the control of the City); provided, however, that no such
modification or amendment may become effective until all of the
outstanding Water Revenue Bonds, dated May 1, 1964, of the City
have been paid in full, both as to principal and interest, or
provision made for the payment thereof; and, provided further,
that no such modification or amendment shall extend or change the
maturity of or date of redemption prior to maturity, or reduce
the interest rate on, or permit the creation of a preference or
priority of any Outstanding Bond or Outstanding Bonds over any
other Outstanding Bond or Outstanding Bonds, or otherwise alter
or impair the obligation of the City to pay the principal of,
interest on and redemption premium (if any) on any of the Out-
standing Bonds at the time, place, rate, and in the currency
provided therein, or alter or impair the obligations of the City
with respect to registration, transfer, exchange or notice of
redemption of Bonds, without the express consent of the holders
and registered owners of all the Outstanding Bonds affected; nor
shall any such modification or amendment reduce the percentage of
the holders and registered owners of Outstanding Bonds required
for the written consent of such modification or amendment without
the consent of the holders and owners of all of the Outstanding
Bonds. .
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Ownership of Bonds for purposes of consent by the reg-
istered owners thereof shall be conclusively proved by the Bond
Register. In obtaining or receiving the consents of registered
owners, the City may establish reasonable rules of procedure
including, without limitation, rules relating to (i) a record
date to fix the registered owners who are entitled to vote, (ii)
solicitation of proxies and (iii) a meeting of the registered
owners for the taking of actions. The registered owners of Bonds
may vote their Bond interest in fractional shares. In the event
that Bonds are registered in the name or names of nominees or
depositories, consent of such owners by proxy in accordance with
u.the applicable customs of the securities industry or rules of the
Securities Exchange Commission, Municipal Securities Rulemaking
Board or other association or agency having jurisdiction shall be
sufficient.
Section 8e Execution; Authentication
The Bonds shall be executed on behalf of the City with
the manual or facsimile signature of the Mayor and attested with
the manual or facsimile signature of the City Clerk, as they may
determine, and shall have impressed or imprinted thereon the cor-
porate seal or facsimile thereof of the City. In case any offi-
cer whose signature shall appear on any Bond shall cease to be
such officer before the delivery of such Bond, such signature
shall nevertheless be valid and sufficient for all purposes, the
same as if such officer had remained in office until delivery.
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All Bonds shall have thereon a certificate of authenti-
cation substantially in the form hereinafter set forth duly exe-
cuted by the Bond Registrar as authenticating agent of the City
and showing the date of authentication. No Bond shall be valid
or obligatory for any purpose or be entitled to any security or
benefit under this ordinance unless and until such certificate of
authentication shall have been duly executed by the Bond Regis-
trar by manual signature, and such certificate of authentication
upon any such Bond shall be conclusive evidence that such Bond
has been authenticated and delivered under this ordinance. The
certificate of authentication on any Bond shall be deemed to have
been executed by it if signed by an authorized officer of the
Bond Registrar, but it shall not be necessary that the same
officer sign the certificate of authentication on all of the
Bonds issued hereunder.
Owners
Section 9. Registration of Bonds; Persons Treated as
The City shall cause books (the Bond Register) for the
registration and for the transfer of the Bonds as provided in
this ordinance to be kept at the principal corporate trust office
of the Bond Registrar, which is hereby constituted and appointed
the registrar of the City for the Bonds. The City is authorized
to prepare, and the Bond Registrar or such other agent as the
City may designate shall keep custody of, multiple Bond blanks
executed by the City for use in the transfer and exchange of
Bonds.
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Any Bond may be transferred or exchanged, but only in
the manner, subject to the limitations, and upon payment of the
charges as set forth in this ordinance. Upon surrender for
transfer or exchange of any Bond 4t the principal corporate trust
office of the Bond Registrar, duly endorsed by or accompanied by
a written instrument or instruments of transfer or exchange in
form satisfactory to the Bond Registrar and duly executed by the
registered owner or an attorney for such owner duly authorized in
writing, the City shall execute and the Bond Registrar shall
authenticate, date and deliver in the name of the transferee or
transferees or, in the case of an exchange, the registered owner,
a new fully registered Bond or Bonds of like tenor, of the same
maturity, bearing the same interest rate, of authorized denomina-
tions, for a like aggregate principal amount.
The Bond Registrar shall not be required to transfer or
exchange any Bond during the period from the close of business on
the 15th day of the calendar month preceding an interest payment
date on the Bonds to the opening of business on such interest
payment date or during the period of 15 days preceding the giving
of notice of redemption of Bonds or to transfer or exchange any
Bond all or a portion of which has been called for redemption.
The execution by the City of any fully registered Bond
shall constitute full and due authorization of such Bond, and the
Bond Registrar shall thereby be authorized to authenticate, date
and deliver such Bond; provided, however, the principal amount of
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Bonds of each maturityauthenticated b the Bon •
y d Registrar shall
not at any one time exceed the authorized principal amount of
Bonds for such maturity less the amount of such Bonds which have
been paid.
The person in whose name any Bond shall be registered
shall be deemed and regarded as the absolute owner thereof for
all purposes, and payment of the principal of or interest on or
premium on any Bond shall be made only to or upon the order of
the registered owner thereof or said owner's legal represen-
tative. All such payments shall be valid and effectual to
satisfy and discharge the liability upon such Bond to the extent
of the sum or sums so paid.
No service charge shall be made for any transfer or
exchange of Bonds, but the City or the Bond Registrar may require
payment of a sum sufficient to cover any tax or other govern-
mental charge that may be imposed in connection with any transfer
or exchange of Bonds except in the case of the issuance of a Bond
or Bonds for the unredeemed portion of a Bond surrendered for
redemption.
Section 10. Form of Bond
The Bonds shall be in substantially the form herein-
after set forth; provided, however, that if the text of the Bonds
is to be printed in its entirety on the front side of the Bonds,
then the second paragraph on the front side and the legend "See
Reverse Side for Additional Provisions" shall be omitted and the
text of paragraphs set forth for the reverse side shall be
inserted immediately after the first paragraph.
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REGISTERED
NO.
[Form of Bond - Front Side]
UNITED STATES OF AMERICA
See Reverse Side for
Additional Provisions
Interest Maturity
:i::Rate: Date:
Registered Owner:
Principal Amount:
STATE OF ILLINOIS
COUNTY OF COOK
CITY OF EVANSTON
WATER REVENUE BOND
SERIES 1990
Dated
Date: September 1, 1990
REGISTERED
CUSIP
KNOW ALL PERSONS BY THESE PRESENTS that the City of
Evanston, Cook County, Illinois, a municipality and political
subdivision of the State of Illinois (the "City") hereby acknow-
ledges itself to owe and for value received promises to pay to
the Registered Owner identified above, or registered assigns as
hereinafter provided, on the Maturity Date identified above, the
Principal Amount identified above and to pay interest (computed
on the basis of a 360-day year of twelve 30-day months) on such
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Principal amount from the later of the Dated Date of this Bond
identified above or from the most recent interest payment date to
which interest has been paid or duly provided for at the Interest
Rate per annum identified above, - such interest to be payable on
July 1, 1991, and semiannually thereafter on January 1 and July 1
of each year until said Principal Amount is paid or duly provided
for, and except as the provisions hereinafter set forth with
respect to redemption prior to maturity may be and become appli-
cable hereto. Principal of and premium (if any) on this Bond are
payable in lawful money of the United States of America upon
presentation hereof at the principal corporate trust office of
American National Bank and Trust Company of Chicago, Chicago,
Illinois, as bond registrar and paying agent (the "Bond Regis-
trar"). Payment of interest shall be made to the Registered
Owner hereof as appearing on the registration books of the City
maintained by the Bond Registrar at the close of business on the
15th day of the month next preceding the interest payment date
and shall be paid by check or draft of the Bond Registrar, pay-
able upon presentation in lawful money of the United States of
America, mailed to the address of such Registered Owner as it
appears on such registration books or at such other address
furnished in writing by such Registered Owner to the Bond Regis-
trar.
Reference is hereby made to the further provisions of
this Bond set forth on the reverse hereof, and such further pro-
•
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•
visions shall for all purposes have the same effect as if set
forth at this place.
It is hereby certified and recited that all acts,
conditions and things required to•be done precedent to and in the
issuance of this Bond have been done and have happened and have
been performed in regular and due form of law and that provision
has been made for depositing into the Water Fund the entire
Revenues received from the operation of the System to be applied
in the manner as hereinabove set forth; and the City hereby
covenants and agrees that it will fix and maintain rates for the
use and service of the System and collect and account for the
Revenues derived therefrom sufficient at all time to pay
Operation and Maintenance Costs, to promptly pay principal of and
interest on all bonds issued by the City which are payable solely
from the Revenues of the System, and to provide an adequate de-
preciation fund, and to comply with all the covenants of and to
maintain the accounts created by the Ordinance. The City cove-
nants that in each Fiscal Year the Net Revenues shall be adequate
to produce an amount sufficient to provide not less than 125% of
the principal and interest requirements of all Outstanding Bonds
for such Fiscal Year.
This Bond shall not be valid or become obligatory for
any purpose until the certificate of authentication hereon shall
have been signed by the Bond Registrar.
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IN WITNESS WHEREOF the City of Evanston, Cook County,
Illinois, by its City Council, has caused this Bond to be
executed with the duly authorized manual or facsimile signature
of its Mayor and attested by the duly authorized manual or facsi-
mile signature of its City Clerk and its corporate seal or a fac-
simile thereof to be impressed or reproduced hereon, all as
appearing hereon and as of the Dated Date identified above.
Attest:
City Clerk, City of Evanston
Cook County, Illinois
(SEAL)
Date of Authentication:
Mayor, City of Evanston
Cook County, Illinois
CERTIFICATE OF AUTHENTICATION
This Bond is one of the Bonds
described in the within mentioned
Ordinance and is one of the
Water,Revenue Bonds, Series 1990,
having a Dated Date of September 1,
1990, of the City of Evanston,
Cook County, Illinois.
American National Bank and
Trust Company of Chicago
as Bond Registrar
By
Authorized Officer
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Bond Registrar and
Paying Agent:
American National Bank and
Trust Company of Chicago
Chicago, Illinois
•
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[Form of Bond - Reverse Side)
City of Evanston, Cook County, Illinois
Water Revenue Bond, Series 1990
This bond and the bonds.of the series of which it forms
a part ("Bond" and "Bonds"
respectively) are
of an
authorized
issue of
Dollars
($
) of
like Dated Date and tenor except as to maturity, rate of interest
and privilege of redemption. The Bonds are payable solely from
the Revenues derived from the operation of the waterworks system
of the City (the "System") after payment of operation ana
Maintenance Costs, and not otherwise, and are issued under au-
thority of the provisions of Division 129 of Article 11 of the
Illinois Municipal Code, as supplemented and amended, and as
further supplemented and, where necessary, superseded, by the
powers of the City as a home rule unit under the provisions of
Section 6 of Article VII of the Illinois Constitution of 1970
(such code and powers being the "Act"), for the purpose of paying
a part of the cost of a Project for the improvement and extension
of the System and the Refunding of certain Water Revenue Bonds as
more fully described in the Ordinance herein defined. The Bonds
axe issued pursuant to Ordinance Number 83-0-90, passed by the
City Council of the City on the day of 1990 (the
"Ordinance"), to which reference is hereby expressly made for
further definitions and terms and to all the provisions of which
the holder and registered owner by the acceptance of this Bond
• -26-
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assents. This Bond does not constitute an indebtedness of the
City within the meaning of any constitutional or statutory
provision or limitation.
Under the Act and the Ordinance, the Revenues from the
operation of the System shall be deposited into the Water Fund,
which shall be used only and is hereby pledged for paying
Operation and Maintenance Costs, paying the principal of and
interest on all bonds of the City that are payable by their terms
only from the Revenues of the System, providing an adequate de-
preciation fund, and in making all payments required to maintain
the accounts established under the terms of the Ordinance.
Parity Bonds may be issued pursuant to the terms of the
Ordinance.
Outstanding Bonds issued and authenticated pursuant to
the Ordinance are coequal as to the lien on the Revenues of the
System for their payment and share ratably, without any prefer-
ence, priority, or distinction, the one over the other, as to the
source or method of payment and security of the Outstanding
Bonds.
The rights and obligations of the City and of the
holders and registered owners of the Bonds may from time to time
be modified or amended by a supplemental ordinance adopted by the
City Council with the written consent of the holders and regis-
tered owners of not less than two-thirds of the principal amount
of all Outstanding Bonds (excluding any of said bonds owned by or
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•
under the control of the City); provided, however, that no such
modification or amendment may become effective until all of the
outstanding Water Revenue Bonds, dated May 1, 1964, of the City
have been paid in full, both as. to principal and interest, or
provision made for the payment thereof; and, provided further,
that no such modification or amendment shall extend or change the
maturity of or date of redemption prior to maturity, or reduce
the interest rate or premium on, or permit the creation of a
preference or priority of any Outstanding Bond or Outstanding
Bonds over any other Outstanding Bond or Outstanding Bonds, or
otherwise alter or impair the obligation of the City to pay the
principal of, interest on and redemption premium (if any) on any
of the Outstanding Bonds at the time, place, rate and in the
currency provided therein or alter or impair the obligations of
the City with respect to registration, transfer, exchange or
notice of redemption of Bonds, without the express consent of the
holders and registered owners of all the Outstanding Bonds
affected; nor shall any such modification or amendment reduce the
percentage of the holders and registered owners of Outstanding
Bonds required for the written consent to such modification or
amendment without the consent of the holders and owners of all of
the Outstanding Bonds.
Those of the Bonds due on or after January 1, 1998, are
subject to redemption at the option of the City, in whole or in
part, on any date on or after January 1, 1997, in integral
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•
multiples of $5,000. in such order of maturity as determined by the City and with:-:
any maturity selected by lot by the Bond Registrar in the manner
provided in the Ordinance, at a redemption price of par plus a
premium, expressed as a percentage of principal amount redeemed,
plus accrued interest to the date fixed for redemption, during
the years as follows:
Year
1997
1998
1999
2000
2001 and each
year thereafter
Premium M
1.00
0.75
0.50
0.25
Unless waived by the Registered Owner of Bonds to be
redeemed, notice of any such redemption shall be given by the
Bond Registrar on behalf of the City by mailing the redemption
notice by registered or certified mail not less than 30 days and
not more than 50 days prior to the date fixed for redemption to
each Registered Owner of the Bond or Bonds to be redeemed at the
address shown on the Bond Register or at such other address as is
furnished in writing by such Registered Owner to the Bond Regis-
trar. Neither the failure to mail such redemption notice, nor
any defect in any notice so mailed, to any particular Registered
Owner of a Bond, shall affect the sufficiency of such notice with
respect to other Registered Owners. Notice having been properly
given, failure of a Registered Owner of a Bond to receive such
notice shall not be, deemed to invalidate, limit or delay the
effect of the notice or redemption action described in the
•
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notice. Such notice may be waived in writing by a Registered
Owner of a Bond entitled to receive such notice, either before or
after the event, and such waiver shall be the equivalent of such
notice. Notice of redemption having been given as aforesaid, Jthe
Bonds or portions of Bonds so to be redeemed shall, on the re-
demption date, become due and payable at the redemption price
therein specified, and from and after such date (unless the City
shall default in the payment of the redemption price) such Bonds
or portions of Bonds shall cease to bear interest. Upon surren-
der of such Bonds for redemption in accordance with said notice,
such Bonds shall be paid by the Bond Registrar at the redemption
price. The procedure for the payment of interest due on or prior
;r
to the redemption date shall be as herein provided for payment of
interest otherwise due. Upon surrender for any partial redemp-
tion of any Bond, there shall be prepared for the Registered
Owner a new Bond or Bonds of like tenor, of authorized denomina-
tions, of the same maturity, and bearing the same rate of
interest in the amount of the unpaid principal.
This Bond may be transferred or exchanged, but only in
the manner, subject to the limitations, and upon payment of the
charges as set forth in the Ordinance. Upon surrender for trans-
fer or exchange of this Bond at the principal corporate trust
office of the Bond Registrar in the City of Chicago, Illinois,
duly endorsed by or accompanied by a written instrument or
instruments of transfer or exchange in form satisfactory to the
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Bond Registrar and duly executed by the Registered Owner or an
attorney for such owner duly authorized in writing, the City
shall execute and the Bond Registrar shall authenticate, date and
deliver in the name of the transferee or transferees or, in the
case of an exchange, the Registered Owner, a new fully registered
Bond or Bonds of like tenor, of the same maturity, bearing the
same interest rate, of authorized denominations, for a like
aggregate principal amount.
The Bond Registrar shall not be required to transfer or
exchange any Bond during the period from the close of business on
the 15th day of the calendar month preceding an interest payment
date on the Bonds to the opening of business on such interest
payment date or during the period of 15 days preceding the giving
of notice of redemption of Bonds or to transfer or exchange any
Bond all or a portion of which has been called for redemption.
The City and the Bond Registrar may deem and treat the
Registered Owner hereof as the absolute owner hereof for the pur-
pose ,of receiving payment of or on account of principal hereof,
premium, if any, hereon and interest due hereon and for all other
purposes, and neither the City nor the Bond Registrar shall be
affected by any notice to the contrary.
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ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and transfers
unto
(Name and Address of Assignee)
the within Bond and does hereby irrevocably constitute and
appoint
as attorney to transfer the said Bond on the books kept for
registration thereof with full power of substitution in the
premises.
Dated:
Signature Guaranteed:
NOTICE: The signature to this assignment must correspond with
the name of the Registered Owner as it appears upon the
face of the within Bond in every particular, without
alteration or enlargement or any change whatever.
Section 11. Bonds Limited Obligations
The Bonds shall be payable solely from the Net Revenues
as derived from the operation of the System, and shall not con-
stitute an indebtedness of the City within the meaning of any
constitutional or statutory limitation.
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Section 12. Fiscal Year and Deposit of Revenues
Upon the issuance of any of the Bonds the entire
System, for the purpose of this ordinance and while any of the
Bonds remain outstanding, shall'be operated on a fiscal year
basis commencing the first day of January and ending the last day
of December of each succeeding year; provided, however, that the
City reserves the right to adopt a new Fiscal Year for the System
at such time as the outstanding Water Revenue Bonds, dated May 1,
1964, and dated May 1, 1974 (Series 1973) have been paid in full,
or provision made for their payment, both as to principal and
interest.
From and after the delivery of any of the Bonds, all of
the Revenues shall be set aside as collected and be deposited
into a bank account separate and apart from all other City
accounts and heretofore designated, accounted for and known as
the "Water Revenue Fund of the City of Evanston." The fund shall
constitute a trust fund for the sole purpose of carrying out the
covenants, terms and conditions of this ordinance, and of the
Currently Outstanding Bond Ordinances. Said ordinances did
establish, continue and maintain such fund; sufficient revenues
derived from the operation of the System were thereby and are
hereby required to be deposited to be used only in paying the
cost of operation and maintenance of the System, providing an
adequate depreciation fund, and paying the principal of and
interest on all bonds of the City which are payable by their
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•
terms only from the Revenues, and for the creation of and main-
tenance of the several respective accounts hereinafter named.
Section 13. Accounts and Flow of Funds
The functions and obligations of the Water Fund shall
be continued and maintained by the maintenance in the Water Fund
of separate special accounts designated severally the "Operation
and Maintenance Account," "Depreciation Account," "Bond and
Interest Account' and "Bond Reserve Account". In addition, there
have been created and established and are hereby maintained
separate special accounts designated the "Depreciation, Improve-
ment and Extension Account" and "Surplus Revenue Account". Into
,;asaid accounts, there shall be set aside on the first business day
of each month without any further official action or direction
all moneys held in the Water Fund of the City, in accordance with
the following priority:
A. Operation and Maintenance Account
There shall be credited to the Operation and Main-
tenance Account on the first business day of each month an amount
sufficient to pay the reasonable Operation and Maintenance Costs
of the System for the next succeeding month.
Money in this account shall be used to pay Operation
and Maintenance Costs. Money in this account shall not be used
to pay the costs of extraordinary or unusual repairs and main-
tenance, capital expenditures, or to provide for any transfer in
lieu of corporate taxes, or general supervision or administrative
• charges by the City.
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B. Depreciation Account
The Depreciation Fund heretofore created shall continue
to be accumulated at an annual rate of $25,000 while any of the
Water Revenue Bonds of the City, dated May 1, 1964 (which herein-
after may be referred to as the "1964 Bonds") remain outstanding
and unpaid, or until provision has been made for the payment
thereof, as to both principal and interest. Said fund shall be
used from time to time only for the purpose of meeting any
emergency or expense in the replacement of any portion of the
System.
Said Depreciation Fund shall be maintained in the
amount of $300,000, and no further transfers into the Deprecia-
tion Fund shall be required while any of the 1964 Bonds are out-
standing, as aforesaid, except that any moneys used from the
Depreciation Fund shall be restored from the first moneys avail-
able for that purpose. At such time as all of the 1964 Bonds
shall have been paid, or until provision has been made for the
payment thereof, as to both principal and interest, any amount
remaining in said Depreciation Account shall be transferred to
the Depreciation, Improvement and Extension Account as herein-
after established and maintained pursuant to paragraph (E) of
this section, and said Depreciation Account shall thereafter be
discontinued.
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C. Bond and Interest Account
All amounts required to be set aside for the purpose of
paying principal of and interest on the 1964 Bonds as provided in
Section 6 of the ordinance authorizing the issuance of said
bonds, shall be set aside monthly as directed.
Beginning on the first day of the month following de-
livery of the Bonds herein authorized, there next shall be
credited to the Bond and Interest Account an amount at least
equal to one -fifth of the interest becoming due on all Outstand-
ing Bonds authorized and issued pursuant to the Currently Out-
standing Bond Ordinances and this ordinance (except said
ordinance for the 1964 Bonds, which shall have been provided for
under the first paragraph hereof), and including the interest to
become due on all Parity Bonds herein authorized, until there is
on hand in said account the full amount of the interest payable
on the next succeeding interest payment date; and there shall be
credited to the Bond and Interest Account on the first business
day of each month an amount at least equal to one -tenth of the
principal of all Outstanding Bonds authorized and issued pursuant
to the Currently Outstanding Bond Ordinances (except said ordi-
nance for the 1964 Bonds, which shall have been provided for
under the first paragraph hereof) and this ordinance, and includ-
ing all Parity Bonds herein authorized, until there is on hand in
said account the full amount of the principal becoming due (or
subject to mandatory redemption) on the next succeeding principal
payment date.
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•
Credits to the Bond and Interest Account may be
suspended at such time as there shall be sufficient money in said
account to pay principal and interest due on the next payment
date, but such credits shall again be resumed at the time of such
payment date.
All moneys in the Bond and Interest Account shall be
used only for the purpose of paying interest on and principal of
Outstanding Bonds. Any and all sums received from the purchaser
of the Bonds as accrued interest thereon to the date of delivery
shall be credited to said Bond and Interest Account and applied
to pay interest on the Bonds.
Funds to pay all of said principal and interest, to-
gether with the fees and expenses of any paying agent or bond
registrar for outstanding Bonds (including the Bond Registrar
hereunder), shall be remitted to any such paying agent or bond
registrar at least fifteen (15) days prior to the date of payment
of such principal or interest; provided that all fees therefor
shall be paid from the Operation and Maintenance Account, and,
provided further, that the City may make arrangements with the
Bond Registrar for investment of said funds to the benefit of the
City.
D. Bond Reserve Account
Beginning on the first business day of the month
following the delivery of the Bonds, the sum of $12,150 is to be
credited each month to the interest reserve fund heretofore
C7
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•
created and established and now designated as the Bond Reserve
Account, and to be accumulated at an annual rate of $145,800 each
year until all of the Bonds shall have been paid or otherwise are
no longer deemed Outstanding.
Moneys in said Bond Reserve Account shall be retained
and used only for the payment of principal of or interest on
Outstanding Bonds, at any time when there are insufficient funds
available in the Bond and Interest Account to pay such principal
of or interest on such bonds as the same become due; provided,
however, that whenever the balance in said account is equal to
Maximum Annual Debt Service, any surplus over and above said
maximum amount shall be transferred to any other account within
the Water Fund as directed by the City Council.
E. Depreciation, Improvement and Extension Account
There shall be credited to the Depreciation, Improve-
ment and Extension Account, after distribution has been made to
accounts enumerated in paragraphs (A) to (D), inclusive, the sum
of at least $3,000 each month while any of the 1964 Bonds are
outstanding; provided, however, that at such time as the 1964
Bonds have been paid in full, both principal and interest, or
provision made for their payment, the amount remaining in the
Depreciation Account shall be transferred to the Depreciation,
Improvement and Extension Account as provided in paragraph (B) of
this section.
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Beginning on the first day of the month following the
payment of or provision for payment of the 1964 Bonds, as afore-
said, there shall be credited to the Depreciation, Improvement
and Extension Account on the first business day of each month the
sum of $5,100, or such greater amount as may be designated from
time to time by the City Council.
The moneys in said account shall be used first to pro-
vide an adequate allowance for depreciation as shall be deter-
mined from time to time by the City Council, and may be used from
time to time to pay for any extraordinary maintenance, repairs
and necessary replacements, or if not so needed then for improve-
ment or extension of the System. Said funds shall be used at any
time to pay principal of or interest on any Outstanding Bonds
whenever there are no other funds available to pay the same.
From and after such time as said account aggregates the
sum of $400,000, any sums in excess thereof may be transferred to
any other account within the Water Fund of the City, at the
discretion of the City Council.
All proceeds received from the disposition of any prop-
erty of the System shall be credited to this account.
F. Surplus Revenue Account
All revenues remaining in the Water Fund, after all
credits have been made to the respective accounts herein provided
for, shall at the end of each month be credited to the Surplus
Revenue Account, and the amount so credited shall be held and
used for the following purposes:
•
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1. For making up any deficiency necessary to credit accounts
enumerated in paragraphs (A) to (E), inclusive, with the
required amounts therefor for each month as hereinabove
provided.
2. For paying principal of and interest on any junior lien
bonds (subordinate issue).
3. For transfer to any other account of the fund, or at the
discretion of the City Council for any lawful corporate
purpose, including, but not limited to, any extraordinary
costs of operation and maintenance of the System not other-
wise provided for, or any authorized payments in lieu of
taxes, general supervision and administrative charges by the
City.
4. For any lawful corporate purpose, in the discretion of the
City Council.
G. Investments
Moneys on deposit in any of the accounts above may by
resolution of the City.Council be invested from time to time in
direct obligations of the United States Government, or invest-
ments fully guaranteed by the United States Government, maturing
not later than the earliest date on which it is estimated the
moneys in said account will be needed, but in no event later than
five (5) years from the date of such investment; provided, how-
ever, that at such time as the Currently Outstanding Bonds have
been paid in full, both principal and interest, or provision made
-40-
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for their payment, then moneys in deposit in said Accounts may be
invested by appropriate officers of the City in the aforesaid
investments and, from time to time, in money market mutual funds
registered under the Investment Company Act of 1940, as from time
to time amended, provided that the portfolio of any such money
market mutual fund is limited to bonds, notes, certificates of
indebtedness, treasury bills or other securities now or hereafter
issued, which are guaranteed by the full faith and credit of the
United States of America as to principal and interest. Such
securities shall be sold from time to time without further autho-
rity of the City Council as moneys may be needed for the purpose
for which said accounts have been created. All accrued interest
on any moneys so invested shall first be credited to the Water
Fund of said City and then credited to the account for which the
investment was made.
All uninvested money on hand shall be deposited in
banks selected as depositories by the City Council from time to
time so as to be available when needed. Such bank accounts shall
be separate from all other City accounts, provided that all money
in the Water Fund may be deposited in a single bank account,
except money in accounts enumerated in paragraphs (C) and (D)
thereof, which shall be deposited in one or more separate bank
accounts.
•
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Section 14. General Covenants
The City covenants and agrees with the holders and
registered owners of the Outstanding Bonds as follows:
A. The City will maintain the System and all improve-
ments and extensions thereto in good repair and working order,
will operate the same efficiently and faithfully, and will
punctually perform all duties with respect thereto required by
the Constitution and laws of the State of Illinois and the United
States.
B. The City will establish and maintain at all times
reasonable fees, charges and rates for all users of the service
_Of the System, and provide for the collection thereof and for the
segregation and application of the Revenues in the manner pro-
vided by this ordinance, and sufficient at all times to pay the
reasonable Operation and Maintenance Costs, to pay the principal
of and interest on all revenue bonds of the City which by their
terms are payable from the Revenues, and to provide for the
creation and maintenance of the respective accounts as provided
in Section 13 of this ordinance, and from time to time make all
needful and proper repairs, replacements, additions and better-
ments thereto, so that the System may at all times be operated
properly and advantageously, and when any equipment or facility
shall have been worn out, destroyed or otherwise is insufficient
for proper use, it shall be promptly replaced or repaired so that
the value and efficiency of the System shall be at all times
• fully maintained.
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C]
The City covenants that the City will establish and
maintain fees, charges and rates that will be adequate to produce
Net Revenues in an amount not less than 125% of the principal and
interest requirements for all Outstanding Bonds for the then
current Fiscal Year.
Charges for service rendered the City shall be made
against said City, and payment for the same from the corporate
funds shall be made monthly into the Water Fund, as Revenues, in
the same manner as other Revenues are required to be deposited.
No free service of the System shall be furnished to any
person, firm, organization or corporation, public or private, and
to the extent permitted by law it is expressly herein covenanted
and agreed that the City will not grant a franchise for the
operation of any other or competing waterworks system within the
City, and that the Bonds herein authorized to be executed shall
constitute legally enforceable liens on the Revenues.
C. The City will establish such rules and regulations
for the control and operation of the System necessary for the
efficient and economical operation thereof, and rates and charges
shall be fixed and revised from time to time as may be necessary
to produce funds sufficient for all purposes herein provided.
D. The City will make and keep proper books and
accounts (separate and apart from all other records and accounts
of said City), in which complete entries shall be made of all
transactions relating to the System, and hereby covenants that
•
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within ninety (90) days following the close of each Fiscal Year
it will cause the books and accounts of the System to be audited
annually by independent certified public, accountants showing the
receipts and disbursements on .account of the System, and that
said audit will be available for inspection by the registered
owners of any of the Bonds.
Each such audit, in addition to whatever matters may be
thought proper by the accountants to be included therein, shall,
without limiting the generality of the foregoing, include the
following:
1. A statement in detail of the income and expendi-
tures of the system for such Fiscal Year, and including credits
to the various accounts provided herein.
2. A balance sheet as of the end of such Fiscal Year.
3. The accountant's comment regarding the manner in
which the City has carried out the accounting requirements of
this ordinance, and the accountant's recommendations for any
changes or improvements in the operation of the System.
4. A list of all insurance policies in force at the
end of the fiscal year, setting out as to each policy the amount
of the policy, the risks covered, the name of the insurer, and
the expiration date of the policy.
5. The number of metered water customers and the
number of unmetered water customers at the end of the year, and
the quantity of water pumped and billed.
•
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C]
All expenses incurred in the making of the audit
required by this section shall be regarded and paid as an
Operation and Maintenance Cost. In addition, statements of
revenues and expenditures of the System shall be furnished to the
City Council at least quarterly during each Fiscal Year. Copies
of the audits and statements shall be supplied to any registered
owner of a Bond upon request.
E. The City will not sell, lease, loan, mortgage, or
in any manner dispose of or encumber the System (subject to the
reserved right of the City to issue additional obligations as
provided in Section 15 hereof); provided, however, that this
covenant shall not prevent said City from disposing of any prop-
erty which in the judgment of the City Council is no longer use-
ful or .profitable in the operation of the System, nor essential
to the continued operation of the System.
The proceeds from the sale of any property shall be
credited to the Depreciation, Improvement and Extension Account.
F. The provisions of this ordinance shall constitute a
contract between the City and the holders and registered owners
of the Bonds, and after the issuance of the Bonds no changes,
additions or alterations of any kind shall be made hereto, except
as hereinabove provided for amendments hereto. Any holder or
registered owner of a Bond or Bonds issued hereunder may proceed
by civil action, mandamus, or other proceeding to enforce or
compel performance by the officials of said City of all duties
•
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required by law, the Act and this ordinance, including the making
and collecting of sufficient charges and rates for the water
services supplied by the System, and the application of the
income and revenue therefrom.
G. The City will carry insurance on the System of the
kinds and in the amounts which are usually carried by private
parties operating similar properties, including, without limiting
the generality of the foregoing, fire, windstorm insurance,
public liability, and all additional insurance covering such
risks as shall be recommended by a competent consulting engineer
employed for the purpose of making such recommendation, and all
moneys received for loss under such insurance policies shall be
deposited in the Depreciation, Improvement and Extension Account,
and used in making good the loss or damage in respect of which
they were paid, either by repairing the property damaged or re-
placing the property destroyed, and provision for making good
such loss or damage shall be made within ninety (90) days from
date of loss. The payment of premiums for all insurance policies
required under the provisions of this covenant shall be con-
sidered an operation and maintenance expense. The proceeds
derived from any and all policies for public liability shall be
credited to the Operation and Maintenance Account and used in
paying the claims on account of which they were received.
H. The City covenants that it will at all times retain
a Bond Registrar with respect to the Bonds, that it will maintain
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at the designated office of such Bond Registrar a place or places
where Bonds may be presented for payment or registration of
transfer or exchange, and that it will require that the Bond
Registrar properly maintain the .Bond Register and perform the
other duties and obligations imposed upon it by this ordinance in
a manner consistent with the standards, customs and practices of
the municipal securities industry.
The Bond Registrar shall signify its acceptance of the
duties and obligations imposed upon it by this ordinance by
executing the certificate of authentication on any Bond, and by
such execution the Bond Registrar shall be deemed to have
certified to the City that it has all requisite power to accept
and has accepted such duties and obligations. The Bond Registrar
is the agent of the City and shall not be liable in connection
with the performance of its duties except for its own negligence
or willful wrongdoing. The Bond Registrar shall, however, be
responsible for any representation in its certificate of au-
thentication on the Bonds.
The City may remove the Bond Registrar at any time. In
case at any time the Bond Registrar shall resign, shall be
removed, shall become incapable of acting, or shall be adjudged
as bankrupt or insolvent, or if a receiver, liquidator or con-
servator of the Bond Registrar, or of the property thereof, shall
be appointed, or if any public officer shall take charge or
control of the Bond Registrar, or of the property or affairs
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thereof, the City covenants and agrees that it will thereupon
appoint a successor Bond Registrar. The City shall mail notice
of any such appointment made by it to each registered owner of
any Bond within twenty (20) days after such appointment. Any
Bond Registrar appointed under the provisions of this Section
shall be a bank, trust company or national banking association.
Section 15. Parity Bonds.
It is hereby covenanted and agreed that, while any of
the Bonds issued hereunder are outstanding, the City will not
issue any other bonds or obligations of any kind or nature having
a pledge on the Revenues which is prior to the lien on the
Revenues of the Bonds herein authorized.
The City further covenants and agrees as follows:
A. While any of the 1964 Bonds remain outstanding,
Parity Bonds shall not be issued unless the Revenues for the
Fiscal Year then next preceding were sufficient to pay all
Operation and Maintenance Costs, provide the required deprecia-
tion fund and interest reserve fund, and leave a balance equal to
at least one hundred ten per cent (110%) of the aggregate of -
1. The principal and interest requirements for such year on all
then Outstanding Bonds;
2. One year's interest on the total issue of Parity Bonds then
proposed to be issued; and
3. An amount of principal of such Parity Bonds computed by
dividing the total amount of such issue by the number of
• years to the final maturity date of such issue.
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B. At such time as all of the 1964 Bonds shall have
been paid, or provision made for their payment, both as to prin-
cipal and interest, and from time to time as shall be found
necessary and for the best interests of the City, Parity Bonds
may be issued for the purpose of constructing or acquiring
improvements, replacements and extensions of the System, or for
the purpose of refunding any of the Outstanding Bonds of the
City,. or for any combination of such purposes, but only provided
the the City shall have complied with the following requirements:
1. The amounts required to have been credited to the
respective accounts enumerated in paragraphs (A) to (E), inclu-
sive, of Section 13 of this ordinance, up to the date of autho-
rization of said Parity Bonds shall have been credited to said
respective accounts; and
2. The Net Revenues of the System for the Fiscal Year
then next preceding, or the adjusted Net Revenues of the System
for the next preceding Fiscal Year, if such revenues are adjusted
as herein provided, have been equal to not less than one hundred
thirty per cent (130%) of Maximum Annual Debt Service on
(a) all then Outstanding Bonds; and
(b) on the additional Parity Bonds then proposed to be
issued.
Net Revenues shall be evidenced by an audit of an independent
certified public accountant.
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In the event there shall have been a change in the
rates of the System from the rates in effect for the immediately
preceding Fiscal Year, which change is in effect at the time of
the issuance of any such Parity Bonds, then the Net Revenues as
provided in this subparagraph (2) shall be adjusted to reflect
the Net Revenues of the System for the immediately preceding
Fiscal Year as they would have been had said then existing rates
been in effect during all of said year. Any such adjusted Net
Revenues shall be evidenced by the certificate of a certified
public accountant or an independent consulting engineer employed
for that purpose, which certificate shall be approved by the City
Council prior to the issuance of the Parity Bonds and filed with
the City Clerk upon its approval.
C. Notwithstanding the foregoing provisions, the City
reserves the further right to issue Parity Bonds to refund any of
Outstanding Bonds, provided they are issued to refund such bonds
due within three (3) months of the date of refunding and for the
payment of which no other funds are or will be available at the
maturity thereof.
D. Parity Bonds shall be on an equal basis in all
respects with the Bonds herein authorized, shall share ratably
and equally in the Revenues, and shall mature as to principal on
January 1 and as to interest on January 1 and July 1.
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Section 16. Sale of Bonds
As soon as may be after this ordinance becomes effec-
tive, the Bonds shall be sold as a whole or in part, and from
time to time by the City Council in such manner -as they may here-
after determine. The City Council shall, upon making the award
of sale of the Bonds to such bidder, adopt a resolution confirm-
ing the sale and fixing the interest rate or rates on such Bonds
in accordance with the terms of the acceptable bid. Such Bonds
shall thereafter be prepared bearing interest at such interest
rate or rates in accordance with the resolution confirming sale
thereof, and after the execution of said Bonds in the manner as
herein provided, the same shall then be delivered to the pur-
chaser thereof upon receipt of the purchase price therefor. The
sale of Bonds as provided in said resolution may be further
reduced in accordance with the requirements of this ordinance and
the terms of the offer of sale of the Bonds by the Comptroller of
the City acting subsequent to the time of said resolution.
Section 17. Application of Proceeds to Funds
The proceeds derived from the sale of the Bonds shall
be used as follows:
A. Accrued interest shall be credited to the Bond and
Interest Account.
B. The amount necessary of the proceeds of the Bonds
shall be deposited into a separate fund, hereby created, de-
signated the "Expense Fund" to be used to pay expenses of
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issuance of Bonds. Disbursements from such fund shall be made
from time to time upon the direction of the City Council. Any
excess in said fund shall be deposited into the Waterworks
Construction Fund Account (1990) .of the City of Evanston herein-
after created after six months from the date of issuance of the
Bonds.
C. The sum necessary shall be used to provide for the
Refunding, and the payment of such expenses as may be designed,
pursuant to the provisions of an Escrow Agreement with the Escrow
Agent as is designated, all in accordance with the provisions of
-an Escrow Agreement, substantially in the form attached hereto as
Exhibit A to this ordinance, made a part hereof by this
reference, and hereby approved; the officers appearing signatory
to such Escrow Agreement are hereby authorized and directed to
execute same, their execution to constitute conclusive proof of
action in accordance with this ordinance, and approval of all
completions or revisions necessary or appropriate to effect the
Refunding.
D. The remaining proceeds of the Bonds shall be
deposited into the "Waterworks Construction Fund Account (1990)
of the City of Evanston, hereby created.
The money in said Construction Fund Account shall be
held for the benefit of the City for the purposes herein
provided, and for the benefit of the registered owners of the
Bonds hereby authorized as their interests may appear, and said
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funds shall be withdrawn from the depository from time to time by
the Comptroller of the City only upon submission to him of the
following:
(a) An order signed by the Mayor and City Clerk, or
such other officers that may from time to time be by law
authorized to sign and countersign orders on the Comptroller
of the City, stating specifically the purpose for which the
order is issued and indicating that the payment for which the
order is issued has been approved by the City Council; and
(b) For each order for withdrawal of funds by the
Comptroller for payment to a contractor or contractors for
work done in connection with the construction of the Project
shall also be accompanied by a certificate executed by the
engineer in charge of the construction, stating the nature of
the work completed and the amount due and payable thereon.
The moneys deposited in the Construction Fund Account
may be temporarily invested from time to time in direct or fully
guaranteed obligations of the United States Government having a
maturity date not later than the date or dates on which such
funds will be needed or be invested from time to time in money
market mutual funds registered under the Investment Company Act
of 1940, as from time to time amended, provided that the
portfolio of any such money market mutual fund is limited to
bonds, notes, certificates of indebtedness, treasury bills or
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other securities now or hereafter issued, which are guaranteed by
the full faith and credit of the United States of America as to
principal and interest. All payments received as principal or
interest derived from such investment shall be credited to the
Construction Fund Account.
Within sixty (60) days after completion of the Project
in accordance with the plans and specifications therefor, as
approved by the City Council, and after all costs have been paid
in connection with the construction thereof, the engineers shall
certify to the City Council the fact that the work has been
completed according to said plans and specifications, and upon
Approval of the completion of the work based upon the engineer's
certificate by the City Council, and after all costs have been
paid, the Mayor, City Clerk and Engineer shall execute a certifi-
cate and file it with the depository certifying that the work has
been completed in accordance with the plans and specifications,
that all costs have been paid, and if at that time any funds
remain in said Construction Fund Account the same shall be trans-
mitted by said depository to the Comptroller of said City, who
shall credit said funds to the Depreciation, Improvement and
Extension Account.
The costs of engineering, legal and financing services,
the costs of surveys, designs, soundings, borings, rights -of -way,
and all other necessary and incidental expenses, shall be deemed
items of cost of construction of the Project.-
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Said fund may also be closed by action of the
Comptroller alone, but only upon its being fully depleted, and
notwithstanding that the Project has not then been completed.
Section 18. Not Private Activity Bonds
None of the Bonds is a "private activity bond" as
defined in Section 141(a) of the Code. In support of such
conclusion, the City certifies, represents and covenants as
follows:
A. None of the proceeds of the Bonds is to be used and
neither the Project nor the System is to be used, directly or
indirectly, in any trade or business carried on by any person
other than a state or local governmental unit.
B. No direct or indirect payments are to be made on
any Bond with respect to any private business use by any person
other than a state or local governmental unit.
C. None of the proceeds of the Bonds are to be used,
directly or indirectly, to make or finance loans to persons other
than a state or local governmental unit.
D. No user of the Project or the System other than the
City or another local government unit will use the same on any
basis other than the same basis as the general public; and no
person other than the City will be a user of the Project or the
System as a result of (i) ownership or (ii) actual or beneficial
use pursuant to a lease, a management or incentive payment
contract, or (iii) any other similar arrangement including a take
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or pay contract for use of service from the System (other than
from another local government unit).
Section 19. General Arbitrage Covenants
The City represents and certifies as follows with
respect to the Bonds:
A. The City has not been notified of any disqualifi-
cation or proposed disqualification of it by the Commissioner of
the Internal Revenue Service as a bond issuer which may certify
bond issues under Treasury Regulations Section 1.103-13
(a)(2)(ii) (1979).
B. Moneys on deposit in any fund or account in connec-
tion with the Bonds, whether or not such moneys were derived from
the proceeds of the sale of the Bonds or from any other source,
will not be used in a manner which will cause the Bonds to be
"arbitrage bonds" within the meaning of Code Section 148 and any
lawful regulations promulgated thereunder, including Treasury
Regulations Sections 1.103-13, 1.103-14 and 1.103-15 (1979) as
the same presently exist or may from time to time hereafter be
amended, supplemented or revised.
Section 20. Registered Form
The City recognizes that Section 149 of the Code
requires the Bonds to be issued and to remain in fully registered
form in order for the interest thereon to be and remain tax-
exempt. In this connection, the City agrees that it will not
take any action to permit the Bonds to be issued in, or converted
• into, bearer or coupon form.
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Section 21. Further Tax Covenants
The City agrees to comply with all provisions of the
Code which, if not complied with by the City, would cause the
interest on the Bonds not to be*Tax-exempt. In furtherance of
the foregoing provisions, but without limiting their generality,
the City agrees: (a) through its officers, to make such further
specific covenants, representations as shall be truthful, and
assurances as may be necessary or advisable; (b) to comply with
all representations, covenants and assurances contained in certi-
ficates or agreements as may be prepared by counsel approving the
Bonds; (c) to consult with such counsel and to comply with such
advice as may be given; (d) to pay to the United States, if
necessary, such sums of money representing required rebates of
excess arbitrage profits relating to the Bonds; (e) to file such
forms, statements and supporting documents as may be required and
in a timely manner; and (f) if deemed necessary or advisable by
its officers, to employ and pay fiscal agents, financial advis-
ors, attorneys and other persons to assist the City in such
compliance.
Section 22. Opinion of Counsel Exception
The City reserves the right to use or invest moneys in
connection with the Bonds or operate the System in any manner,
notwithstanding the covenants in Sections 18 to 21 herein, pro-
vided it shall first have received an opinion from an attorney or
a firm of attorneys of nationally recognized standing as
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municipal bond counsel to the effect that such use or investment
of such moneys or such operation of the System as contemplated
will not result in loss of or otherwise adversely affect the Tax-
exempt status of interest on the Bonds.
Section 23. Provisions a Contract
The provisions of this ordinance shall constitute a
contract between the City and the holders and registered owners
of the Outstanding Bonds; and no changes, additions, or altera-
tions of any kind shall be made hereto, except as herein pro-
vided, so long as there are any Outstanding Bonds.
Section 24. Defeasance
Bonds which are no longer Outstanding Bonds as defined.
in this Ordinance shall cease to have any lien on or right to
receive or be paid from Revenues and shall no longer have the
benefits of any covenant for the holders or registered owners of
Outstanding Bonds as set forth herein.
Section 25. Severability
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 other
provisions of this ordinance.
Section 26. Superseder
All ordinances, resolutions or orders, or parts there-
of, in conflict with the provisions of this ordinance are to the
• extent of such conflict hereby superseded.
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Section 27. Publication
This ordinance within ten (10) days after its passage
by the City Council shall be published once in pamphlet form by
authority of the City Council, and shall thereupon be in full
force and effect immediately.
VOTE
AYES:
NAYS:
ABSENT:
Attest:
PASSED: , 1990.
APPROVED: , 1990
City Clerk
Mayor
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