HomeMy WebLinkAboutORDINANCES-1984-119-O-84• ORDINANCE NO. 119-0-84
AN ORDINANCE authorizing and providing for the
issue of $3,300,000 Water Revenue Bonds, Series
1984, 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, prescribing all the
details of said bonds, and providing for the
collection, segregation and distribution of the
revenue of the waterworks system of said City.
WHEREAS, it is deemed advisable, necessary and for the
best interest 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 the fol-
lowing: providing additional funds for the improvement program
initiated in 1980, including the construction of a new storage tank
• and installing connecting water mains, 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 is
the sum of $3,300,000, all in accordance with the preliminary report
and estimate of cost prepared by Alvord, Burdick & Howson, consult-
ing engineers employed by the City, and 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 said project, and it will be necessary
for the City to borrow the principal sum of $3,300,000 and in evi-
dence thereof issue its revenue bonds therefor; and
0
• WHEREAS, pursuant to the provisions of Division 129 of
Article 11 of the Illinois Municipal Code, approved May 29, 1961,
as amended, and its powers as a home rule unit,. the City is author-
ized to issue water revenue bonds for the purpose of paying the
cost of said improvements and extensions; and
WHEREAS, the City Council has heretofore, pursuant to
Ordinance adopted on April 13, 1964, authorized and issued
$4,080,000 Water Revenue Bonds, dated May 1, 1964, of which bonds
in the amount of $2,420,000 are presently outstanding, and pursuant
to Ordinance No. 76-0-72, adopted on November 6, 1972, authorized
and issued Water Revenue Bonds in the aggregate principal amount of
$2,000,000, being Series 1972 in the amount of $600,000, of which
bonds in the amount of $50,000 are presently outstanding, and Series.
• 1973 in the amount of $1,400,000, of which bonds in the amount of
$1,000,000 are presently outstanding, and pursuant to Ordinance No.
25-0-80, adopted on April 8, 1980, authorized -and issued $5,000,000
Water Revenue Bonds, Series 1980, dated May 1, 1980, all of which
are presently outstanding, and pursuant to Ordinance No. 99-0-82,
adopted on October 4, 1982, authorized and issued $5,000,000 Water
Revenue Bonds, Series 1982, dated October 1, 1982, all of which are
presently outstanding, which said outstanding bonds aggregate the
principal amount of $13,470,000; and
WHEREAS, pursuant to the provisions of said ordinances
adopted by the City Council of said City of Evanston authorizing the
• outstanding Water Revenue Bonds of the City, while said Water
Revenue Bonds are outstanding no additional bonds shall be issued
to share ratably and equally in the income derived from the opera-
tion of the waterworks 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 said ordinances;
and
WHEREAS, this City Council has caused an audit of the
earnings of the waterworks system to be made for the last preceding
fiscal year, and this City Council has heretofore determined and
does hereby determine that the earnings of the waterworks system
for the last preceding fiscal year comply with the covenants and
restrictions provided for in and by each of the ordinances author-
izing the outstanding Water Revenue Bonds, and that the earnings
for such last preceding fiscal year are sufficient to permit the
issuance of the $3,300,000 additional Water Revenue Bonds herein
provided for, to share ratably and equally in the income derived
from the operation of the waterworks system with the outstanding
Water Revenue Bonds of the City:
NOW, THEREFORE, Be It Ordained by the City Council of the
City of Evanston, Cook County, Illinois, as follows:
Section 1. The City Council has caused an estimate to be
made of the cost of making improvements and extensions to the water-
works system of the City, as described in the preambles hereof, and
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all in accordance with the preliminary report therefor heretofore
• approved and now on file in the office of the City Clerk for public
inspection, and has heretofore determined and does hereby determine
and estimate that the total estimated cost of such improvements and
extensions is the sum of $3,300,000.
Section 2. The City Council does hereby determine the
period of usefulness of said waterworks system, including the im-
provements and extensions hereby proposed, to be forty (40) years
from the date of the Water Revenue Bonds, Series 1984 (the "Bonds"
or "Bond", as applicable), herein authorized to be issued.
Section 3. For the purpose of paying the cost of con-
struc-ting and installing necessary improvements and extensions to
the waterworks system of the City of Evanston, as referred to and
•
described
hereinabove
in
the
preambles of
this ordinance,
there
shall be
issued Bonds
of
the
City in the
principal amount
of
$3,300,000, each to be designated "Water Revenue Bond, Series 1984",
which Bonds shall be dated December 1, 1984 and shall also bear the
date of authentication, shall be in fully registered form, shall be
in denominations of $5,000 each and authorized integral multiples
thereof (but no single Bond shall represent installments of prin-
cipal maturing on more than one date), shall be numbered 1 and
upward, and shall bear interest at such rate or rates as shall be
determined at the time of sale of the Bonds.
The Bonds shall mature serially on January 1 of each of
• the years and in the amounts as follows (subject to the right of
prior redemption hereinafter set forth in Section 4 hereof):
Principal Year of
Amount Maturity
$ 50,000
1986-
75,000
1987
100,000
1988
75,000
1989
75,000
1990
100,000
1991
125,000
1992
125,000
1993
125,000
1994
125,000
1995
125,000
1996
125,000
1997
125,000
1998
125,000
1999
125,000
2000
1503000
2001
7253000
2002
825,000
2003
• The Bonds, together with interest thereon, shall be pay-
able solely from the revenues derived from the operation of the
waterworks system of the City, including all improvements and ex-
tensions thereto, and such Bonds shall not in any event constitute
an indebtedness of the City within the meaning of any constitutional
or statutory provision or limitation.
Each Bond shall bear interest from its date or from the
most recent interest payment date to which interest has been paid
or duly provided for, whichever date is later, such interest (com-
puted upon the basis of a 360-day year of twelve 30-day months)
being payable on the first days of January and July of each year,
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commencing on July 1, 1985. Interest on each Bond shall be paid
• by check or draft of the American National Bank and Trust Company
of Chicago, in Chicago, Illinois, or its successor, as Bond Regis-
trar and paying agent to the person in whose name such Bond is
registered at the close of business on the 15th day of the calendar
month next preceding the interest payment date. The principal of
the Bonds and premium, if any, shall be payable in lawful money
of the United States of America at the principal corporate trust
office of the Bond Registrar in Chicago, Illinois.
The Bonds shall be executed on behalf of the City with
the facsimile signature of its Mayor and attested with the facsimile
signature of its City Clerk, -and shall have impressed or imprinted
thereon the City seal or facsimile thereof. In case any officer
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.
Each Bond shall have thereon a certificate of authentica-
tion substantially in the form hereinafter set forth, duly executed
by the Bond Registrar as authenticating agent of the City and show-
ing the date of authentication. No Bond shall be valid or obliga-
tory 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 Registrar by manual signa-
ture, 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 authentica-
tion 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.
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 regis-
trar of the.City. The City is authorized to prepare, and the Bond
Registrar, or an agent of either, shall keep custody of, multiple
Bond blanks executed by the City for use in the transfer and ex-
change of Bonds.
•
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 herein. Upon surrender for transfer or exchange of
any Bond at the principal corporate trust office of the Bond Regis-
trar, duly endorsed by or accompanied by a written instrument or
instruments of transfer in form satisfactory to the Bond Registrar
and duly executed by the registered owner or his attorney 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 the same interest rate and
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• maturity of authorized denominations for a like aggregate principal
amount.
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
outstanding Bonds of each maturity authenticated by the Bond Regis-
trar shall not exceed the authorized principal amount of Bonds for
such maturity less previous retirements.
The Bond Registrar shall not be required to transfer or
exchange any Bond during the period from the 15th day of the
calendar month next preceding any interest payment date on such
Bond to such interest payment date, nor to transfer or exchange
. any Bond after notice calling such Bond for redemption has been
mailed, nor during a period of fifteen (15) days next preceding the
mailing of a notice of redemption of any Bonds.
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, premium, if any, or in-
terest on any Bond shall be made only to or upon the order of the
registered owner thereof or his legal representative. 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.
In the event any of the Bonds are registered in the name of a
n
U
•
securities depository which uses a book entry system, the standing
of the registered owner to enforce any of the covenants herein may
be established through the books and records of such securities
depository or a participant therein.
No service charge shall be made for any transfer or ex-
change of Bonds, but the City or the Bond Registrar may require
payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any transfer or ex-
change of Bonds, except in the case of the issuance of a Bond or
Bonds for the unredeemed portion of a Bond surrendered for redemp-
tion.
Section 4. The Bonds maturing on or after January 1,
1996 shall be callable for redemption prior to maturity at the
option of the City as a whole, or in part in integral multiples
of $5,000 in inverse order of their maturity (less than all of the
Bonds of a single maturity to be selected by lot by the Bond Regis-
trar), on January 1, 1995 and on any interest payment date there-
after, at the redemption price (expressed as a percentage of the
principal amount), in accordance with the following schedule plus
accrued interest to the date fixed for redemption:
Date of Redemption
January 1 and July 1, 1995
January 1 and July 1, 1996
January 1 and July 1, 1997
January 1 and July 1, 1998
January 1 and July 1, 1999
January 1 and July 1, 2000
January 1 and July 1, 2001
January 1 and July 1, 2002
January 1, 2003
Redemption Price
102%
101-3/4%
101-1/2%
101-1/4%
101%
100-3/4%
100-1/2%
100-1/4%
Par
The Bonds shall be redeemed only in the principal amount
• of $5,000 each and integral multiples thereof. The City shall, at
-least 45 days prior to the redemption date (unless a shorter time
period shall be satisfactory to the Bond Registrar), notify the
Bond Registrar of such redemption date and of the principal amount
of Bonds to be redeemed. For purposes of any redemption of less
than all of the outstanding Bonds of a single maturity, the partic-
ular Bonds or portions of Bonds to be redeemed shall be selected
by the Bond Registrar by such method as the Bond Registrar shall
deem fair and appropriate and which may provide for the selection
for redemption of Bonds or portions of Bonds in principal amounts
of $5,000 and integral multiples thereof.
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.
Notice of the call for any such redemption shall be given
by_the Bond Registrar on behalf of the City by mailing the redemp-
tion notice by certified or first class mail at least 30 days and
not more than 60 days prior to the date fixed for redemption to the
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 Registrar.
All notices of redemption shall state:
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(1) The redemption date;
• (2) The redemption price;
(3) If less than all outstanding Bonds are to be re-
deemed, the identification (and, in the case of
partial redemption, the respective principal
amounts) of the Bonds to be redeemed;
(4) That on the date fixed for redemption, the redemp-
tion 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 redemp-
tion price of all the Bonds or portions of Bonds which are to be
redeemed on that date.
•
Notice of redemption having been given as aforesaid, the
Bonds or portions of Bonds so to be redeemed shall, on the date
fixed for redemption, become due and payable at the redemption
price therein specified, and from and after such date such Bonds
or portions of Bonds shall cease to bear interest. Upon surrender
of such Bonds for redemption in accordance with said notice, such
Bonds shall be paid by the Bond Registrar at the redemption price.
Installments of interest due on or prior to the redemption date
shall be payable as herein provided for payment of interest. Upon
surrender for any partial redemption of any Bond, there shall be
prepared for the registered holder a new Bond or Bonds of the same
• interest rate and maturity in the amount of the unpaid principal.
Section 5. The Bonds shall be prepared in compliance
with the National Standard Specifications for Fully Registered
Municipal Securities, prepared by the American National Standards
Committee. The Bonds, the certificate of authentication to be
endorsed thereon and the form of assignment are all to be in sub-
stantially the following form:
•
• -12-
(Form of Bond - Face)
•
UNITED STATES OF AMERICA
STATE OF ILLINOIS COUNTY OF COOK
CITY OF EVANSTON
WATER REVENUE BOND, SERIES 1984
No. $
Maturity Date Dated Date Interest Rate CUSIP
January 1, December 1, 1984 y
Registered Owner:
Principal Amount:
• The City of Evanston, in the County of Cook and State of
Illinois (the "City"), for value received hereby promises to pay to
the Registered Owner identified above, or registered assigns as
hereinafter provided, on the Maturity Date shown above the Prin-
cipal Amount shown above and to pay interest (computed on the basis
of a 360-day year of twelve 30-day months) on such Principal Amount
from the date of this Bond or from the most recent interest payment
date to which interest has been paid, whichever is later, at the
Interest Rate per annum set forth above on January 1 and July 1 of
each year, commencing July 1, 1985, until said Principal Amount is
paid, except as the provisions hereinafter set forth with respect
to redemption prior to maturity may be and become applicable hereto.
0 -13-
Principal of this Bond and premium, if any, are payable in lawful
• money of the United States of America at the principal corporate
trust office of American National Bank and Trust Company of Chicago,
in Chicago, Illinois, as bond registrar and paying agent (the
"Bond Registrar"). Payment of the installments of interest shall
be made to the Registered Owner hereof as shown on the registration
books of the City maintained by the Bond Registrar at the close of
business on the 15th day of the calendar month next preceding the
interest payment date, and shall be paid by check or draft of the
Bond Registrar mailed to such Registered Owner at the address as
it appears on such registration books, or at such other address
furnished in writing by such Registered Owner to the Bond Registrar.
This Bond and the issue of which it forms a part are
payable solely from revenues derived from the operation of the
• waterworks system of the City and not otherwise, and are issued
under authority of Division 129 of Article 11 of the Illinois
Municipal Code, approved May 29, 1961, and all laws amendatory
thereof and supplementary thereto, and the home rule powers of
the City, for the purpose of paying the cost of constructing and
installing improvements and extensions to the waterworks system
of the City, and this Bond does not constitute an indebtedness of
the City within the meaning of any constitutional or statutory
provision or limitation.
Reference is hereby made to the further provisions of
this Bond set forth on the reverse side hereof, and such further
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provisions shall for all purposes have the same effect as if set
• forth at this place.
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.
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 facsimile signature of its Mayor and
attested by the duly authorized facsimile signature of its City
Clerk, and its corporate seal or a facsimile thereof to be im-
pressed or reproduced hereon, all as of the Dated Date shown above.
(Facsimile Signature)
Mayor,
[SEAL] City of Evanston, Cook County, Illinois.
Attest:
(Facsimile Signature)
City Clerk,
City of Evanston, Cook County, Illinois.
CERTIFICATE OF AUTHENTICATION
Date of Authentication:
This Bond is one of the Bonds described in the within
mentioned ordinance and is one of the Water Revenue Bonds, Series
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1984, of the City of Evanston, Cook County, Illinois.
• P
AMERICAN NATIONAL BANK AND TRUST COMPANY
M A
OF CHICAGO, as Bond Registrar,
LIM
Authorized Officer
(Form of Bond - Reverse Side)
CITY OF EVANSTON, COOK COUNTY, ILLINOIS
WATER REVENUE BOND, SERIES 1984
This Bond is one of an authorized issue of Bonds aggre—
• gating the principal amount of $3,300,000 (the "Bonds"), of which
Bonds maturing on or after January 1, 1996 are subject to redemp-
tion prior to maturity at the option of the City as a whole, or in
part in integral multiples of $5,000 in inverse order of their
maturity (less than all of the Bonds of a single maturity to be
selected by lot by the Bond Registrar), on January 1, 1995 and on
any interest payment date thereafter, at the redemption price
(expressed as a percentage of the principal amount), in accordance
with the following schedule plus accrued interest to the date fixed
for redemption:
0 - -16-
• Date
of Redemption
Redemption Price
January
1
and
July
1,
1995
102%
January
1
and
July
1,
1996
101-3/4%
January
1
and
July
1,
1997
101-1/2%
January
1
and
July
1,
1998
101-1/4%
January
1
and
July
1,
1999
101%
January
1
and
July
1,
2000
100-3/4%
January
1
and
July
1,
2001
100-1/2%
January
1
and
July
1,
2002
100-1/4%
January
1,
2003
Par
Notice of any such redemption shall be sent by certified
or first class mail not less than thirty (30) days nor more than
sixty (60) days prior to the date fixed for redemption to the
Registered Owner of each Bond to be redeemed at the address shown
on the registration books of the City maintained by the Bond Regis-
trar, or at such other address as is furnished in writing by such
Registered Owner to the Bond Registrar. When so called for redemp-
tion, this Bond will cease to bear interest on the specified re-
demption date, provided funds for redemption are on deposit at the
place of payment at that time and shall not be deemed to be out-
standing.
This Bond is transferable by the Registered Owner hereof
in person or by his attorney duly authorized in writing at the
principal corporate trust office of the Bond Registrar in Chicago,
Illinois, but only in the manner, subject to the limitations and
upon payment of the charges provided in the authorizing ordinance,
and upon surrender and cancellation of this Bond. Upon such
transfer, a new Bond or Bonds of authorized denominations of the
is - -17-
same interest rate and maturity and for the same aggregate prin-
cipal amount will be issued to the transferee in exchange therefor.
The Bonds are issued in fully registered form in the
denomination of $5,000 each or authorized integral multiple thereof.
This Bond may be exchanged at the principal corporate trust office
of the Bond Registrar for a like aggregate principal amount of
Bonds of the same interest rate and maturity of other authorized
denominations, upon the terms set forth in the authorizing ordi-
nance.
The City and the -Bond Registrar may deem and treat the
Registered Owner hereof as the absolute owner hereof for the
purpose of receiving payment of or on account of principal hereof,
premium, if any, and interest due hereon, and for all other pur-
• poses, and neither the City nor the Bond Registrar shall be
affected by any notice to the contrary.
Pursuant to the provisions of the Illinois Municipal
Code and the ordinance adopted pursuant thereto, authorizing the
issuance of this Bond and the series of which it forms a part,
the revenues from the operation of the waterworks system of the
City shall be deposited in a separate fund designated as the
"Water Revenue Fund of the City of Evanston," which shall be used
only and is hereby pledged for paying the cost of operation and
maintenance of said system, providing an adequate depreciation
fund and paying the principal of and interest on the bonds of the
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• City that are issued under the authority of said Code and are
payable by their terms only from the revenues of said waterworks
system, and in making all payments required to maintain the
accounts created under the terms of the ordinance pursuant to
which this Bond is issued.
The rights and obligations of the City and of the
holders 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 of not less than two-thirds (2/3rds)
of the principal amount of all the Bonds authorized by this
ordinance and all bonds heretofore issued and hereafter issued on
a parity therewith then outstanding (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 outstanding Water Revenue Bonds of said City dated May 1, 1964
have been paid in full, both as to principal and interest, or pro-
vision made for the payment thereof; and provided further, that
no such modification or amendment shall extend or change the ma-
turity of, or date of redemption prior to maturity, or reduce the
interest rate on, or otherwise alter or impair the obligation of
the City to pay the principal of and interest on the Bonds herein
authorized at the time, place and at the rate and in the currency
provided therein of any Bond herein authorized then outstanding,
without the express consent of the holder of such Bond, nor shall
any such modification or amendment permit the creation of a
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preference or priority of any Bond or Bonds over any other Bond
• or Bonds, nor reduce the percentage of the holders of outstanding
Bonds required for the written consent to.such modification or
amendment.
It is hereby certified and recited that all acts, condi-
tions and things required to be done precedent to and in the issu-
ance 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 in said Water Revenue Fund the revenues
received from the operation of said waterworks system to be applied
in the manner as hereinabove set forth, and the City hereby cov-
enants and agrees that it will fix and maintain rates for the use
and service of said waterworks system, and collect and account for
the revenues from said waterworks system, sufficient at all times
• to pay*the cost of maintenance and operation of said system, pro-
vide an adequate depreciation fund, and to promptly pay principal
of and interest on all bonds issued by the City which by their
terms are payable solely from the revenues of said waterworks
system, and to comply with all of the covenants of the ordinance
under which this Bond and the series of which it forms a part were
issued.
• -20-
0
• ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and
transfers unto
(Name and Address of Assignee)
the within Bond, and rights thereunder, and does hereby irrevocably
constitute and appoint
as attorney to transfer the said Bond on the books kept for regis-
tration thereof, with full power of substitution in the premises.
Dated:
0 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.
• -21-
• Section 6. Upon the issuance of any of the Water Revenue
Bonds, Series 1984, herein provided for, the entire municipal water-
works system of the City of Evanston, for the purpose of this
ordinance and while any of the Water Revenue Bonds heretofore issued
are 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. •The City reserves the right to adopt a new fiscal
year for the waterworks system at such time as the outstanding Water
Revenue Bonds dated May 1, 1964, December 1, 1972 (Series 1972) and
May 1, 1974 (Series 1973) have been paid in full, or provision made
for their payment, both principal and interest.
From and after the delivery of any Bonds issued under the
provisions of this ordinance, all of the gross revenues from any
• source whatsoever derived directly or indirectly from the use and
operation of the waterworks system of the City, including all future
improvements and extensions thereof, shall be set aside as collected
and be deposited in a bank account separate and apart from all other
City accounts and to be designated and accounted for as a separate
fund designated as the "Water Revenue Fund of the City of Evanston,"
which shall constitute a trust fund for the sole purpose of carry-
ing out the covenants, terms and conditions of this ordinance, and
of the ordinances adopted by the City Council authorizing the issu-
ance of Water Revenue Bonds now outstanding. Said ordinances author-
izing the outstanding bonds did establish, continue and maintain a
separate fund designated as the "Water Fund of the City of Evanston,"
• -22-
into which sufficient revenues derived from the operation of'the
waterworks system were required to be deposited, to be used only
in paying the cost of operation and maintenance of said system,
providing an adequate depreciation fund, and paying the principal
of and interest on all Water Revenue Bonds of said City of Evanston
which are payable by their terms only from such revenues, and for
the creation of an interest reserve account.
Section 7. The functions and obligations of the Water
Fund of the City of Evanston, heretofore created and established,
shall be continued and maintained by the establishment in the Water
Revenue Fund of separate special accounts designated severally
"Operation and Maintenance Account," "Depreciation Account," "Bond
and Interest Account" and "Bond Reserve Account". In addition,
there have been created and established separate special accounts
40 designated "Depreciation, Improvement and Extension Account" and
"Surplus Revenue Account". Into said 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 Revenue
Fund of the City, in accordance with the following priority:
(a) Operation and Maintenance Account:
There shall be credited to the Operation and
Maintenance Account on the first business day of
each month an amount sufficient to pay the reason-
able expenses of operation and maintenance of said
waterworks system for the next succeeding month,
including all of such expenses usual in such a
system, and including one -twelfth of all such ex-
penses computed on an annual basis.
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goney in this account shall be used to pay
• all costs reasonably incurred in connection with
the continued operation, use and maintenance of
the system, other than capital improvements, neces-
sary to keep the system in efficient and economical
operating condition, including the payment of
premiums for insurance hereinafter required to be
carried, and generally for all expenses (except
depreciation) which under good accounting practice
are properly chargeable to and are reasonable and
necessary to the efficient maintenance and opera-
tion of the system. Money in this account shall
not be used to pay the costs of extraordinary or
unusual repairs and maintenance, capital expend-
itures, or to provide for any transfer in lieu of
corporate taxes, or general supervision or admin-
istrative charges by the City.
(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,l, 1964 remain outstanding and
unpaid. Said fund shall be used from time to time
only for the purpose of meeting any emergency or
expense in the replacement of any of said water-
works properties.
Inasmuch as all of the outstanding bonds dated
July 1, 1955 have been retired, said depreciation
fund may be reduced to $300,000, and no further
transfers into the depreciation fund shall be re-
quired while any of the bonds dated May 1, 1964
are outstanding, except that any moneys used from
the depreciation fund shall be restored from the
first moneys available for that purpose. At such
time as all of the outstanding bonds dated May 1,
1964 shall have been retired, any amount remaining
in said Depreciation Account shall be transferred
to the Depreciation, Improvement and Extension
Account as hereinafter established and maintained
pursuant to paragraph (e) of this section, and said
Depreciation Account shall thereafter be discon-
tinued.
(c) Bond and Interest Account:
All amounts required to be set aside for the
purpose of paying principal of and interest on
• -24-
the outstanding bonds dated May 1, 1964, as pro-
vided in Section 6 of the ordinance authorizing
the issuance of said bonds, shall be set aside
monthly as directed.
In addition, beginning on the first day of
the month following delivery 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 outstanding bonds authorized and issued
pursuant to Ordinances No. 76-0-72, No. 25-0-80,
No. 99-0-82 and this ordinance, and including .
the interest to become due on all bonds hereafter
issued and on a parity with the 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 In-
terest 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 Ordinances No. 76-0-72,
No. 25-0-80, No. 99-0-82 and this ordinance, and
including all bonds hereafter issued and on a
parity with the Bonds herein authorized, until
there is on hand in said account the full amount
of the principal becoming due on the next succeed-
ing principal maturity date.
Credits to the Bond and Interest Account may
be suspended in any fiscal year at such time as
there shall be sufficient money in said account
to pay principal and interest due on the next pay-
ment date, but such credits shall again be resumed
at the beginning of the new fiscal year.
All moneys in said Bond and Interest Account
shall be used only for the purpose of paying in-
terest and principal on outstanding bonds, the
Bonds hereby authorized, and including such bonds
as may hereafter be issued and on a parity with
the Bonds herein authorized. Any and all sums re-
ceived from the purchaser of the Bonds as accrued
interest thereon to the date of delivery shall be
credited to said Bond and Interest Account.
Funds to pay all of said principal and in-
terest, together with the fees and expenses of
the paying agent or Bond Registrar for said Bonds,
• -25-
shall be remitted to the paying agent or Bond
• Registrar at least fifteen (15) days prior to
the date of payment of said principal or in-
terest; provided that all fees therefor shall
be paid from the. Operation and Maintenance
Account.
(d) Bond Reserve Account:
Beginning on the first business day of the
month following the delivery of the Bonds herein
authorized, the sum of $12,150 is to be credited
each month to the interest reserve fund hereto-
fore 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 herein authorized have been paid or
provision shall have been made for their payment.
Moneys in said Bond Reserve Account shall be
retained and used only for the payment of prin-
cipal of or interest on all outstanding Water Rev-
enue Bonds of said City, on all Bonds authorized
pursuant to this ordinance, and including such
bonds as may hereafter be issued and on a parity
with the Bonds herein authorized, 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; pro-
vided, however, that whenever the balance in said
account is equal to the maximum principal and in-
terest requirements on all of said outstanding bonds
and parity bonds for any succeeding fiscal year,
any surplus over and above said maximum amount, in
the discretion of the City Council, may be trans-
ferred to any other account within the Water Rev-
enue Fund of said City, or may be used for calling
and redeeming bonds prior to their maturity, or for
purchasing on the open market at not more than par
and accrued interest any of the bonds which are pay-
able from the revenues of the waterworks system.
No bonds shall be purchased within the sixty (60)
days immediately prior to the next succeeding re-
demption date of any bonds, and all such bonds pur-
chased or redeemed shall be cancelled.
(e) Depreciation, Improvement and Extension Account:
There shall be credited to the Depreciation,
Improvement and Extension Account, after distribu-
tion has been made to accounts (a) to (d), inclu-
sive, the sum of at least $3,000 each month while
0 -26-
any of the Water Revenue Bonds of said City dated
• May 1, 1964 are outstanding. At such time as said
outstanding bonds have been paid in full, both
principal and interest, the amount remaining in
the Depreciation Account shall be transferred to
the Depreciation, Improvement and Extension
Account as provided in paragraph (b) of this sec-
tion.
Beginning on the first day of the month fol-
lowing the payment of said outstanding bonds, 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 provide an adequate allowance for depreciation
as shall be determined 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 improvement or extension of the system. Said
funds shall be used at any time to pay principal of
or interest on any outstanding bonds payable from
the waterworks system whenever there are no other
funds available to pay the same; provided, however,
•, that from and after such time as said account aggre-
gates the sum of $400,000, any sums in excess there-
of may be transferred to any other account within
the Water Revenue Fund of said City, at the discre-
tion of the City Council.
All proceeds received from the disposition of
any property of the waterworks system shall be
credited to this account, and may be used to pay
the cost of improvements or extensions to the sys-
tem remaining, or transferred to the Bond Reserve
Account and used for calling and redeeming bonds
prior to their maturity, or for purchasing on the
open market at not more than par and accrued inter-
est any of the bonds which are payable from the
revenues of the waterworks system.
(f) Surplus Revenue Account:
All revenues remaining in the Water Revenue
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
0 -27-
Revenue Account, and the amount so credited shall
• be held and used for the following purposes:
(1) For making up any deficiency neces-
sary to credit accounts (a) to (e),
inclusive, with the required amounts
therefor for each month as herein -
above 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 opera-
tion and maintenance of the system
not otherwise 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) Moneys remaining 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 investments fully
guaranteed by the United States Government, matur-
ing 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. Such securities
shall be sold from time to time without further
authority 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 Revenue Fund of said City and then credited
to the account for which the investment was made.
All uninvested money on hand shall be de-
posited in banks selected as depositories by the
City Council from time to time so as to be avail-
able when needed. Such bank accounts shall be
separate from all other City accounts, provided
that all money in the Water Revenue Fund may be
deposited in a single bank account, except money
in accounts (c) and (d) thereof, which shall be
deposited in one or more separate bank accounts.
0' -28-
Section 8. The City of Evanston covenants and agrees
• with the holders of the Bonds hereby authorized that, so long as
the Bonds or any of them remain outstanding and unpaid, either as
to principal or interest:
(a) The City will maintain said waterworks sys-
tem and all improvements and extensions thereto
in good repair and working order, will operate
the same efficiently and faithfully, and will
punctually perform all duties with respect there-
to required by the Constitution and laws of the
State of Illinois.
(b) The City will establish and maintain at all
times reasonable fees, charges and rates for all
users of the service of said system, and provide
for the collection thereof and for the segrega-
tion and application of the revenues of said sys-
tem in the manner provided by this ordinance, and
sufficient at all times to pay the reasonable
costs of operation and maintenance, to pay the
principal of and interest on all revenue bonds of
said City which by their terms are payable from
the revenues of said system, and to provide for
• the creation and maintenance of the respective
accounts as provided in Section 7 of this ordi-
nance, and from time to time make all needful
and proper repairs, replacements, additions and
betterments 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 said
system shall be at all times fully maintained.
The City covenants that the City will esta-
blish and maintain fees, charges and rates that
will be adequate to produce net revenues, as
hereinafter defined in Section 9(b), in an amount
not less than 125% of the principal and interest
requirements 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 Revenue Fund created by
9 -29-
this ordinance,
• eration of the
manner as other
posited.
as revenues derived from the op -
waterworks system, in the same
revenues are required to be de -
No free service of the system shall be fur-
nished to any person, firm, organization or cor-
poration, public or private, and to the extent
permitted by law it is expressly herein covenanted
and agreed that said City will not grant a fran-
chise for the operation of any other or competing
waterworks system within the City of Evanston,
and that the Bonds herein authorized to be ex-
ecuted shall constitute legally enforceable liens
on the revenues of the waterworks system of said
City, including all further extensions, additions
and improvements thereto, whether acquired through
purchase, contract or otherwise.
(c) The City will establish such rules and regula-
tions for the control and operation of said system
necessary for the efficient and economical opera-
tion 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 here-
in provided until all of the Bonds authorized by
this ordinance have been paid in full, both as to
principal and interest.
• (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 said system, and hereby covenants that within
ninety (90) days following the close of each fiscal
year it will cause the books and accounts of said
system to be audited annually by independent cer-
tified public accountants showing the receipts and
disbursements on account of said 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
expenditures of the system for such
fiscal year, and including credits to
the various accounts provided herein.
• -30-
(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 recom-
mendations for any changes or improve-
ments 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.
All expenses incurred in the making of the audit
required by this section shall be regarded and paid
as an operation and maintenance expense, and it is
further covenanted and agreed that a copy of each
such audit shall be furnished upon completion to the
original purchaser of the Bonds herein authorized,
and a summary thereof shall be furnished to any
• registered owner of Bonds upon request. In addition,
statements of revenues and expenditures of the system
shall be furnished to the City Council at least
quarterly during each fiscal year, and a copy of such
statement shall be furnished to the original pur-
chaser of the Bonds herein authorized, and shall also
be furnished to any registered owner of Bonds upon
request.
(e) The City will not sell, lease, loan, mortgage,
or in any manner dispose of or encumber said system
(subject to the reserved right of said City to
issue additional obligations as provided in Section
9 hereof), until all of the Bonds herein authorized
shall be paid in full, both principal and interest,
or unless and until provision shall have been made
for the payment thereof; provided, however, that
this covenant shall not prevent said City from dis-
posing of any property which in the judgment of the
City Council is no longer useful or profitable in
the operation of said system, nor essential to the
continued operation of said system.
• -31-
The proceeds from the sale of any property
shall be credited to the Depreciation, Improve-
ment and Extension Account.
(f ) The provisions of this 'ordinance shall consti-
tute a contract between the City and the holders
of the Bonds authorized to be issued, and after the
issuance of said Bonds no changes, additions or
alterations of any kind shall be made hereto, ex-
cept as hereinafter provided in Section 10, until
all of said Bonds and the interest thereon shall
have been paid in full, or unless and until provi-
sion shall have been made for the payment thereof.
Any 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 required
by law and this ordinance, including the making and
collecting of sufficient charges and rates for the
water services supplied by said system, and the
application of the income and revenue therefrom.
(g) The City will carry insurance on said system
of the kinds and in the amounts which are usually
carried by private parties operating similar prop-
erties, 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 de-
posited in the Depreciation, Improvement and Exten-
sion Account, and used in making good the loss or
damage in respect of which they were paid, either
by repairing the property damaged or replacing 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 considered an operation and
maintenance expense.
The proceeds derived from any and all pol-
icies 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.
• -32-
(h) The City recognizes that the initial pur-
chasers and the owners from time to time of the
. Bonds will have accepted them on, and paid there-
for a price which reflects, the understanding that
interest thereon is exempt from federal income
taxation under laws in force at the time the Bonds
shall have been delivered. In this connection,
the City covenants that it will take no action
which may render the interest on any of the Bonds
subject to federal income taxation.
(i) The City covenants that it will at all times
retain a Bond Registrar with respect to the Bonds,
that it will maintain 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 obliga-
tions imposed upon it by this ordinance in a manner
consistent with the standards, customs and prac-
tices of the municipal securities industry.
The Bond Registrar shall signify its accept-
ance of the duties and obligations imposed upon
it by this ordinance by executing the certificate
of authentication on any Bond, and by such execu-
tion 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 authentica-
tion 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 in-
capable 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 thereof,
the City covenants and agrees that it will there-
upon appoint a successor Bond Registrar. The City
shall mail notice of any such appointment made by
-33-
•
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 9. 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 of the waterworks system which is prior to the
lien on such revenues of the Bonds herein authorized.
(a) It is further covenanted and agreed that,
while any of the Water Revenue Bonds dated May 1,
1964 remain outstanding, additional revenue bonds
to share ratably and equally in the income derived
from the operation of said waterworks system shall
not be issued unless the revenues derived from the
waterworks system for the fiscal year then next
preceding were sufficient to pay all costs of op-
eration and maintenance, provide the required de-
preciation 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 require-
ments for such year on the bonds then
outstanding;
(2) One year's interest on the total issue
of such additional bonds then proposed
to be issued; and
(3) An amount of principal of such addi-
tional bonds computed by dividing the
total amount of such issue by the num-
ber of years to the final maturity date
of such additional bond issue.
(b) The City reserves the right to issue at such
time as all of said outstanding bonds dated May 1,
1964 have been paid in full, and from time to time
as shall be found necessary and for the best in-
terest of the City, additional bonds on a parity
with the Bonds authorized herein for the purpose
• -34-
of constructing or acquiring improvements, replace-
ments and extensions of the system, or for the
purpose of refunding any of the Water Revenue Bonds
of the City, or for any combination of such purposes,
but only provided.the City shall have complied with
the following requirements:
(1) The amounts required to have been credited
to the respective accounts (a) to (e), in-
clusive, of Section 7 of this ordinance,
up to the date of authorization of said
additional 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 hun-
dred thirty per cent (130%) of the maximum
combined principal and interest require-
ments for any succeeding fiscal year dur-
ing the life of the then outstanding bonds,
of -
(i) all bonds then outstanding pay-
able from the revenues to be
derived from the operation of
• the system, and
(ii) on the additional revenue bonds
then proposed to be issued.
Net revenues for the purpose of this sub-
paragraph (2) shall mean the gross revenues
of the system less the actual costs of op-
eration and maintenance before making pro-
vision for depreciation or other accounts
as required by this ordinance for such fis-
cal year or years, and shall be evidenced
by an audit of an independent certified
public accountant. Principal and interest
requirements shall include principal and
interest due January 1 as a requirement of
the fiscal year ending December 31 imme-
diately preceding such January maturities.
In the event there shall have been a change
in the rates of the system from the rates
0
-35-
in effect for the immediately preceding
fiscal year, which change is in effect at
• the time of the issuance of any such
additional 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 preced-
ing 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 addi-
tional bonds and filed with the City Clerk
upon its approval.
(c) Notwithstanding the foregoing provisions, the
City reserves the further right to issue bonds to
refund any of these Bonds, or bonds on a parity
therewith, provided they are issued to refund bonds
due within three ( 3 ) months of the date of refund-
ing and for the payment of which no other funds are
or will be available at the maturity thereof.
(d) Any additional bonds issued as parity bonds
shall be on an equal basis in all respects with the
. Bonds herein authorized, shall share ratably and
equally in the revenues of said system, and shall
mature as to principal on January 1 and as to in-
terest on January 1 and July 1.
Section 10. At such time as all of the Water Revenue Bonds
of said City dated May 1, 1964 have been paid in full, both as to
principal and interest, or provision made for the payment thereof,
the rights and obligations of the City and of the holders 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 registered owners of not less than two-thirds (2/3rds) of the
principal amount of all of the Bonds authorized by this ordinance,
0
-36-
and all bonds heretofore issued and hereafter issued on a parity
. therewith, then outstanding (excluding any of said bonds owned by
or under the control of the City); provided, however, that no such
modification or amendment shall extend or change the maturity of
or date of redemption prior to maturity, or reduce the interest
rave on, or otherwise alter or impair the obligation of the City to
pay the principal of and interest on the Bonds herein authorized,
at the time, place, rate, and in the currency provided therein, of
any Bond herein authorized then outstanding, without the express
consent of the registered owner of such Bond, nor shall any such
modification or amendment permit the creation of a preference or
priority of any Bond or Bonds over any other Bond or Bonds, nor
reduce the percentage of the registered owners of outstanding Bonds
required for the written consent of such modification or amendment.
Each such consent must be on file with the City Clerk prior to the
• adoption of such modifying or amendatory ordinance.
Section 11. As soon as may be after this ordinance be-
comes effective, the Bonds herein authorized shall be sold as a
whole or in part, and from time to time by the City Council in
such manner as they may hereafter determine. The City Council
shall, upon making the award of sale of said Bonds to such bidder,
adopt a resolution confirming 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
0 -37-_
resolution confirming sale thereof, and after the execution of said
Bonds in the manner as herein provided, the same shall then be de-
livered to the purchaser thereof upon receipt of the purchase price
therefor.
Section 12. The proceeds of sale of the Bonds authorized
herein, exclusive of accrued interest, shall be placed in a bank or
banks designated as depositories by the City Council in a separate
account to be designated the "Waterworks Construction Fund Account
(1984) of the City of Evanston". The accrued interest shall be
credited to the Bond and Interest Account herein established. The
funds in said Construction Fund Account shall be held for the benefit
of said City for the purposes herein provided, and for the benefit
of the registered owners of the Bonds hereby authorized as their
interest may appear, and said funds shall be withdrawn from the de-
pository 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) Each order for withdrawal of funds by the
Comptroller for payment to a contractor or con-
tractors for work done in connection with the con-
struction of said 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 guar-
anteed obligations of the United States Government having a maturity
date not later than the date or dates on which such funds will be
needed. 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 work in
accordance with the plans and specifications therefor, as approved
by the City Council, and after all costs have been paid in connec-
tion 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 comple-
tion 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 certificate and file it with the
depository certifying that the work has been completed in accord-
ance 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 transmitted 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.
• -39-
Section 13. The proceeds of sale of the Bonds will be
• used and devoted with due diligence for the purposes as provided
herein, and the City of Evanston hereby covenants and agrees that,
so long as any of the Bonds hereby authorized remain outstanding,
and notwithstanding any provisions in this bond ordinance to the
contrary with respect to investment of moneys on deposit in the
various special funds or accounts herein mentioned, whether such
moneys were derived from Bond proceeds, from revenues of the sys-
tem, or from any other source, it will make no use of such moneys
which, if such use could have been reasonably expected on the date
of issue of said bonds would have caused such Bonds to be classi-
fied as "arbitrage bonds" within the meaning of Section 103(c) of
the Internal Revenue Code of 1954, as amended, and any lawful regu-
lations promulgated thereunder, including Treas. Reg. H 1.103-13,
1.103-14 and 1.103-15 (1979), as the same presently exist or may
46
hereafter from time to time be amended and supplemented. The Mayor,
City Clerk and Finance Director are hereby authorized to execute
on behalf of the City an arbitrage certificate to that effect.
Section 14. If any section, paragraph, clause or provi-
sion 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 15. All ordinances, resolutions or orders, or
parts thereof, in conflict with the provisions of this ordinance,
are, to the extent of such conflict, hereby repealed.
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Section 16. This ordinance within ten (10) days after
• its passage by the City Council shall be published once in The
Evanston Review, being a newspaper published in and having a
general circulation in the City of Evanston, Illinois, and shall
be in full force and effect, as provided by law.
PASSED:
VOTE:
October 22
, 1984.
AY ES: Aldermen Ream, Borah, Pabst, Juliar. Drummer. Neems. Davis.
Morton, Summers, Wold, Nelson, Bleveans. Collens. Rainev. and Romain.
NAYS: None.
ABSENT. Aldermen Barr, Raden, and Korshak.
Attest:
City Clerk
APPROVED:
or
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