Granville Community Calendar

Ordinance 15-1984

Davison
AN ORDINANCE TO PROVIDE FOR THE ISSUANCE AND SALE
OF $1, 100,000 OF SEWER SYSTEM MORTGAGE REVENUE
BONDS OF THE VILLAGE OF GRANVILLE, OHIO UNDER
SECTION 12, ARTICLE XVIII, OF THE CONSTITUTION OF
THE STATE OF OHIO FOR THE PURPOSE OF IMPROVING AND
EXTENDING THE MUNICIPAL SEWER SYSTEM BY
MODERNIZATION OF THE EXISTING WASTEWATER TREATMENT
PLANT TO INCREASE ITS CAPACITY AND UPGRADE THE
QUALITY OF TREATMENT AND THE CONSTRUCTION OF
SANITARY SEWERS; TO AUTHORI ZE THE EXECUTION OF A
MORTGAGE OF SUCH SYSTEM AND THE EXTENSIONS AND
IMPROVEMENTS THERETO AND THE REVENUES THEREOF TO
SECURE THE BONDS SO TO BE ISSUED AND FURTHER TO
SECURE ADDITIONAL PARITY BONDS HEREAFTER
AUTHORIZED; TO DEFINE THE TERMS OF A FRANCHISE
UNDER WHICH, IN CASE OF FORECLOSURE, THE PURCHASER
MAY OPERATE SUCH SYSTEM; AND TO PROVIDE, IN EVENT
OF DEFAULT, FOR THE APPOINTMENT OF A RECEIVER TO
ADMINISTER SUCH SYST.SM.
WHEREAS, the Village of Granville, Ohio (hereinafter called the
Municipality") now owns and operates as a public utility a municipal sewer
system (hereinafter called the U" tility"th)e, services of which are and are to be supplied to persons and corporations within and without the corporate limits of the Municipality;
WHEREAS, based ·upon the reports and recommendations of Lester H.
Poggemeyer, P. E.,Inc. h(ereinafter called the "Engineerst"h)i,s Council has
heretofore determined it to be necessary to improve and extend the Utility by
modernization of the existing wastekater treatment plant to increase its
capacity and upgrade the quality of treatment and the construction of sanitary
sewers, all in accordance with the plans, specifications and proposals
prepared by the Engineers and filed with the Municipality (said improvements
and extensions, including the acquisition of the necessary real estate and
interests therein, being hereinafter called the "Project");
WHEREAS, to provide funds to pay a portion of the costs of
construction and other costs of the Project as they become due, the
Municipality has determined to issue its $1, 100,000 Sewer System Mortgage Revenue Bonds h( ereinafter called the "Improvement Bonds"p)ursuant to Section 12, Article XVIII of the Constitution of the State of Ohio and the
Municipality may issue additional bonds on a parity therewith (hereinafter called A" dditional Bonds"t,he Improvement Bonds and the Additional Bonds being hereinafter collectively referred to as the "Bonds"t)o be secured by the Indenture of Mortgage hereinafter provided for (hereinafter called the
Mortgage"u)pon the properties, assets and revenues of the Utility and by a franchise to become effective in the event of foreclosure of the Mortgage;
WHEREAS, a portion of the costs of the Project not financed by the Improvement Bonds will be financed from the proceeds of a federal grant hereinafter called the "EPA Grant"a)warded to the Municipality by the United States Environmental Protection Agency;
WHEREAS, this Council has determined that the issuance of the Improvement Bonds, together with the proceeds to be received from the EPA Grant and the use of other funds available for the Prolect, will provide sufficient funds to finance the costs of the Project;
WHEREAS, the Engineers have provided this Council with estimates of construction payment schedules for the Project and estimates of reimbursements to this Municipality from the EPA Grant based on such schedules; and
WHEREAS, this Council will on this date also authorize by the adoption of Ordinance No. 168-4 h(ereinafter called "Temporary Revenue Bonds Ordinance"th)e issuance and sale of $450,000 of its mortgage revenue bonds to be designated Temporary Sewer System Revenue Bonds in accordance with Section 12 of Article XVIII of the Constitution of Ohio h(ereinafter called the Temporary Revenue Bonds") to provide funds for costs of the Project
ORDINANCE NO. 15- 84
BY:
anticipated to be due and payable prior to receipt from time to time of the
EPA Grant which Temporary Revenue Bonds are anticipated to be paid primarily
from the EPA Grant but are to be secured by a second mortgage to be provided
for upon the properties, assets, and revenues of the Utility, subordinated
however in priority to the Mortgage securing the Improvement Bonds, and by a
franchise to become effective in event of foreclosure of the second mortgage,
and by the covenants of the Municipality with respect to the issuance of
another issue of temporary Sewer System Revenue Bonds or long term Sewer
System Revenue Bonds; and
WHEREAS, this Council finds that all conditions precedent to the
issuance and sale of the Improvement Bonds and the receipt of the EPA Grant
that can be met at this time have been met;
NOW, THEREFORE, BE IT ORDAINED by the Council of the Village of
Granville, State of Ohio:
Section 1.
Section 2.
Section 3.
Determinations by Council. This Council hereby finds and
determines that the Utility has been, and shall hereafter
be, operated as a public utility, including all extensions
thereof and improvements thereto; that, prior to the
issuance of the Improvement Bonds, rates and charges for
the services of the Utility have been determined and fixed
in amounts sufficient to pay the costs of operating and
maintaining the Utility and to leave an amount of revenues
adequate to comply with the covenants herein contained;
that the issuance of the Improvement Bonds will be in the
best interests of the Municipality; and that it is
necessary forthwith to issue, sell and deliver the
Improvement Bonds in the principal amount of $1, 100,000 and
having the terms provided for herein, the proceeds thereof
to be used for the Prolect and purposes incidental thereto
and incidental to the issuance and sale of the Improvement Bonds.
Terms of Improvement Bonds.
a) Designation, Form and Numbering. The Improvement
Bonds shall be designated "Sewer System Mortgage Revenue
Bonds"s,hall be negotiable instruments and shall express
upon their faces the purpose for which they are issued and
that they are issued pursuant to Section 12, Article XVIII of the Constitution of the State of Ohio and this
ordinance. The Improvement Bonds shall be issued only in
fully registered form, shall be exchangeable for other
Improvement Bonds in the manner and on the terms provided
in the Mortgage and shall be numbered in order of
authentication from R-1 upwards. The Improvement Bonds
shall be issued in printed, typewritten or other manuscript
form as may be requested by the Original Purchaser, as hereinafter defined.
b) Denomination and Dates. The Improvement Bonds shall be in the denominations of $5,000 and any integral multiple
thereof.· The Improvement Bonds shall be dated as of July
1, 1984 if authenticated prior to November 1, 1984, and
otherwise shall be dated as of the May 1 or November 1 next preceding the date of their authentication except that if authenticated on a May 1 or November 1 they shall be dated
as of such date of authentication; provided that if, at the time of authentication, interest thereon is in default, they shall be dated as of the date to which interest has been paid.
Interest Rates and Maturities. The Improvement Bonds shall bear interest from the most recent date to which interest
has been paid or duly provided for or, if no interest has been paid or duly provided for, from their date. Interest
on the Lmprovement Bonds shall be payable semiannually on each May 1 and November 1, commencing on November 1, 1984,
at a rate or rates not to exceed 111- 2/%per annum, and principal of the Improvement Bonds shall mature on November 1 in the years and in the principal amounts indicated below:
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3-
Amount Amount
Section 4.
1985
1986
1987
1988
20,000
20,000
20,000
25,000
Redemption Provisions.
1989
1999
2004
25,000
490,000
500,000
a) Mandatory Redemption. The Improvement Bonds maturing
on November 1, 1999 shall be subject to mandatory
redemption in part, in the manner provided in Article IV of
the Mortgage, on November 1, 1990, and on each November 1
thereafter to and including November 1, 1998, at a
redemption price equal to 100%of the principal amount
thereof according to the following schedule:
Year
1990
1991
1992
1993
1994
Amount
30,000
35,000
35,000
40,000
45,000
Year
1995
1996
1997
1998
Amount
50,000
55,000
60,000
65,000
The Improvement Bonds maturing on November 1, 2004 shall
also be subject to mandatory redemption in part, in the
manner provided in Article IV of the Mortgage, on November
1, 2000 and on each November 1 thereafter to and including
November 1, 2003, at a redemption price equal to 100%of
the principal amount thereof according to the following
schedule:
Year
2000
2001
2002
2003
Amount
80,000
90,000
100,000
110,000
b) Optional Redemption. The Improvement Bonds maturing
on November 1, 1999 and November 1, 2004 are subject to
optional redemption at the direction of the Municipality,
in the manner provided in Article IV of the Mortgage, in
inverse order of maturity, either in whole or in part in
integral multiples of $5,000 on any May 1 or November 1,
commencing November 1, 1994, at the redemption prices
expressed as percentages of the principal amount redeemed) set forth below:
Redemption Dates
Dates Inclusive)
November 1, 1994 through
October 31, 1995
November 1, 1995 through
October 31, 1996
November 1, 1996 through
October 31, 1997
November 1, 1997 through
October 31, 1998
November 1, 1998 through
October 31, 1999
November 1, 1999 through
October 31, 2000
Redemption Prices
103.0%
102.5
102.0
101.5
101.0
100.5
November 1, 2000 and thereafter 100.0
Year Year
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Section 6.
Section 7.
Payment; Execution; Trustee, Registrar and Paying Agents.
Principal of and interest on the Improvement Bonds shall be
payable as provided in the Mortgage, in each instance
without the deduction for the services of any paying agent.
The Improvement Bonds shall be signed by the Executive and
the Fiscal Officer and shall be sealed with the corporate
seal; provided that one or both of such signatures may be a
facsimile and a facsimile of the corporate seal may be
used. When used in this ordinance, " Council" shall mean
the legislative authority of the Municipality, " Executive"
shall mean the Village Manager of the Municipality, F"iscal
Officer"shall mean the Director of Finance of the
Municipality, " Legal Officer" shall mean the Law Director
of the Municipality and "Original Purchaser"shall mean the
person to whom the Improvement Bonds are awarded and sold
pursuant to Section 6 hereof. Any authority, officer or
board which hereby succeeds, by operation of law, to the
powers and duties of such authority or any such officer
shall be deemed included in the applicable official
designation while having such powers and duties.
This Council hereby designates The Fifth Third Bank,
Cincinnati, Ohio as trustee under the Mortgage, as paying
agent under the Mortgage for the Improvement Bonds, as
registrar for the Improvement Bonds for the purpose of
keeping and maintaining the books and records for the
registration, exchange and trans f er of the Improvement
Bonds pursuant to the Mortgage and as authenticating agent
for the Improvement Bonds under the Mortgage.
Sale of Improvement Bonds. The Improvement Bonds shall be
awarded and sold to Seasongood &Mayer, Cincinnati, Ohio,
by the Executive at the interest rate or rates per annum
not to exceed the rate specified in Section 3 hereof and at not less than 97 1/2%of the par value thereof, together
with accrued interest on the aggregate principal amount of
the Improvement Bonds from their date to the date of their
delivery to the Original Purchaser and payment therefor and
the Improvement Bonds shall be delivered by, or under the
instructions of, the Executive upon payment of the purchase price.
Proceeds of Improvement Bonds. The proceeds received from
the sale of the Improvement Bonds shall be allocated and
are hereby appropriated as follows:
a) to the Debt Service Fund created by Section 10 hereof,
any accrued interest paid by the Original Purchaser; and
b) to the Debt Service Reserve Fund created by Section 10 hereof an amount equal to the maximum amount required to be paid into the Debt Service Fund with respect to the
Improvement Bonds during any future 12- month period ending October 31; and
C) to the Construction Fund created by Section 8 hereof, the balance Of the proceeds received from the sale of the Improvement Bonds.
The Municipality hereby covenants that it will restrict,
and take such actions as are reasonably necessary to restrict, the use of the proceeds of the Improvement Bonds in, such manner and to such extent, if any, as may be necessary, after taking into account reasonable
expectations at the time of the delivery of and payment for the Improvement Bonds, so that the Improvement Bonds will
not constitute arbitrage bonds under Section 103(c)of the Internal Revenue Code and the applicable income tax regulations under that Section. The Fiscal Officer or any other officer having responsibility for issuing the Improvement Bonds is authorized and directed, alone or in conjunction with any of the foregoing or with any other
Section 5.
Section 8.
officer, employee or consultant of the Municipality, to
give an appropriate certificate of the Municipality, for
inclusion in the transcript of proceedings, setting forth
the reasonable expectations of the Municipality regarding
the amount and use of all such proceeds and the facts and
estimates on which they are based, all as of the date of
delivery and payment for the Improvement Bonds. The Clerk
of Council shall furnish to the Original Purchaser a true
transcript, certified by the Clerk of Council, of all
proceedings had with reference to the issuance of the
Improvement Bonds along with such other information from
the records as is necessary to determine the regularity and
validity of the issuance of the Improvement Bonds.
Construction Fund. The Construction Fund is hereby created
by the Municipality but shall be in the custody of the
Trustee and is to be maintained in a separate deposit
account (except when invested as hereinafter provided)
fully secured by direct obligations of the United States of
America.
The Construction Fund shall consist of (i) the amounts
deposited pursuant to Section 7 hereof, (ii) the proceeds
of the Temporary Revenue Bonds as provided for in the
Temporary Revenue Bonds Ordinance; (iii) the EPA Grant,
together with any other moneys received as reimbursement
for any of the costs of the Proj ect and (iv) such
additional amounts as shall be paid into the Construction
Fund by the Municipality to pay the costs of the Project.
Until required for the purposes herein provided, moneys deposit on in the Construction Fund shall, when and as
directed by the Fiscal Officer, be invested by the Trustee
in Eligible Investments, as hereinafter defined, maturing
not later than the times when the moneys therein are
required for the payment of the costs of the Project or for
transfer to the Debt Service Fund in accordance with the
following paragraph of this Section, and shall be applied
to the purpose of paying costs of the Project and the
purposes described in the following paragraph of this
Section.
Not less than ten days prior to the maturity of any of the
Temporary Revenue Bonds, the Trustee shall transfer from
the Construction Fund to the Temporary Revenue Bonds Debt
Service Fund established by the Temporary Revenue Bonds
Ordinance that amount, not to exceed the principal amount of the Temporary Revenue Bonds, then on deposit in the
Construction Fund which exceeds the amount required for the
completion of the Proj ect as certified by the Engineers to
the Fiscal Officer, by a certificate to be dated not
earlier than 15 days prior to the maturity of the Temporary
Revenue Bonds, and the amount so transferred shall be used
to pay and retire at maturity that portion of the principal
of the Temporary Revenue Bonds equal in amount to the
amount so transferred. If the amount transferred from the
Construction Fund is less than the amount required to pay the principal amount of the Temporary Revenue Bonds, the
Fiscal Officer shall transfer to the Temporary Revenue Bonds Debt Service Fund from the Replacement and
Improvement Fund created hereby and, if necessary, from the Surplus Fund created hereby, such amount or amounts which,
together with the amount transferred from the Construction
Fund, equals the amount required to pay the principal of
the Temporary Revenue Bonds, to be used to pay and retire
at maturity that portion of the Temporary Revenue Bonds
equal in amount to the amounts so transferred.
Upon completion of the Project, as certified by the
Engineers, but prior to the discharge of the lien of the
Mortgage and after reserving therein an amount equal to the principal amount of the Temporary Revenue Bonds if the
Temporary Revenue Bonds have not been paid, the balance of
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Section 9.
First:
any moneys remaining in the Construction Fund shall be
applied to other extensions and improvements of the Utility
as and if recommended by the Engineers and approved by the
Municipality and, to the extent of any balance remaining
after paying or fully providing for such extensions and
improvements, or if such extensions and improvements are
not so recommended and approved, the balance shall be paid
to the Debt Service Reserve Fund created hereby, unless it
is fully funded in which event such balance shall be paid
to the Replacement and Improvement Fund created hereby,
unless it is fully funded in which event such balance shall
be paid to the Surplus Fund created hereby.
Sewer Revenue Fund and Application Thereof; Special Funds.
So long as any Bonds secured by the Mortgage remain
outstanding and notwithstanding any other ordinance or
resolution to the contrary, all revenues from the operation
of the Utility, as now constituted or hereafter improved or
extended (but excluding moneys on deposit in the
Construction Fund, the EPA Grant and any other grant moneys
received as reimbursement for any costs of the Proj ect)
shall be deposited in the Sewer Revenue Fund, which shall
be maintained in the custody of the Municipality as a
separate deposit account (except when invested as
hereinafter provided).Until required or used for the
purposes hereafter described, moneys on deposit in the
Sewer Revenue Fund may be invested in Eligible Investments.
Out of the Sewer Revenue Fund, and after reserving therein
at all times an adequate sum as working capital for the
Utility, the following payments only shall be made and in
the following order:
All reasonable and proper expenses of operating and
maintaining the Utility and all its appurtenances,
such expenses to exclude those of any other utility
of the Municipality whether or not such other
utility shall be operated as a single unit with the
Utility and further to exclude depreciation and
capital replacements.
Second: On the 20th day of each month, commencing August
20, 1984, into the Debt Service Fund (i)( A) third of the one- amount necessary, after taking into
account any moneys then on deposit in or certified
by the Trustee to be on depodit by, November 1,
1984, and (B) after November 1, 1984, one- sixth of
the amount necessary, after taking into account any
moneys then on deposit in or certified by the
Trustee to be on deposit by, the next succeeding
interest payment date, to, in both cases, provide
for the payment of the interest due on such next
succeeding interest payment date upon all Bonds
outstanding; and (ii) on the 20th day of each
month, commencing November 20, 1984, into the Debt Service Fund one- twelfth of the amount necessary to
provide for the payment of the next succeeding
principal maturity of all Bonds outstanding and, if
any of such Bonds shall be term Bonds, to provide
for the payment of the mandatory redemption
requirements thereof.
Third: On the 20th day of each month, commencing August
20, 1984, so long as the Improvement Bonds are outstanding, into the Debt Service Reserve Fund,
beginning when required, a sum at least equal to 50%of the amount payable on such deposit date into
the Debt Service Fund under Paragraph Second, which
sum, for so long as the Improvement Bonds are outstanding, shall be paid in for so long and
resumed as often, and to the extent only, as may be
necessary to create and thereafter maintain an aggregate Debt Service Reserve Fund balance (after
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Section 10.
crediting any other payments made therein by the
Municipality, including any such payment so made
under other provisions of this ordinance) at least
equal to the maximum amount required to be paid
into the Debt Service Fund with respect to the
Improvement Bonds during any future 12- month period
ending October 31; and, in the event of the
issuance of Additional Bonds, there shall be paid
into the Debt Service Reserve Fund, commencing with
the first such monthly deposit date occurring after
the issuance of the Additional Bonds, such further
monthly amounts as shall be provided for in the
ordinance authorizing the Additional Bonds but not
less than 50%of the amount required on such
monthly deposit date to be paid into the Debt
Service Fund with respect to the Additional Bonds,
such further amounts to be paid only so often and
to the extent necessary to establish and maintain
an aggregate Debt Service Reserve Fund balance at
least equal to the maximum amount required to be
paid into the Debt Service Fund with respect to all
Bonds from time to time outstanding during any
future twelvem-onth period ending October 31.
Fourth: On the 20th day of each month, commencing August
20, 1984, into the Replacement and Improvement
Fund, $2,300, or such lesser sum as may then be
required, to create and thereafter maintain a
balance in the Replacement and Improvement Fund at
least equal to $110,000.
Fifth: On the 20th day of each month, commencing August
20, 1984, such sum in addition to any of the
foregoing allocations as may be necessary and
available, after meeting the requirements of the
preceding Paragraphs First, Second, Third and
Fourth, to make up any previous deficiency in any such monthly allocation.
Sixth: Monthly, as aforesaid, beginning August 20, 1984,
into the Temporary Revenue Bonds Debt Service Fund
established by the Temporary Revenue Bonds
Ordinance one- fifth of the amount necessary, after
taking into account any moneys then on deposit in
or certified by the Temporary Revenue Bonds Trustee
to be on deposit by, January 1, 1985 and after
January 1, 1985, one- sixth of the amount necessary,
after taking into account any moneys then on
deposit or certified by the Temporary Revenue Bonds
Trustee to be on deposit by, the next succeeding
interest payment date, to, in both cases, provide
for the payment of interest due upon such next
succeeding interest payment date upon the Temporary Revenue Bonds.
Seventh: Annually on November 20, commencing November 20,
1984, into the Surplus Fund, the revenues then
remaining in the Sewer Revenue Fund, after
reserving in the Sewer Revenue Fund an amount
sufficient to maintain adequate working capital for
the Utility for the balance of the then current
calender year and to provide necessary accruals as determined by the Municipality against the
requirements for the twelvem-onth period beginning
January 1 of each year of Paragraphs Second, Third and Fourth.
Special Funds and Use Thereof. There are hereby
established and ordered maintained by the Municipality the following funds: S"ewer Revenue Fund"D,e b"t Service Fund"D,e b"t Service Reserve Fund"R,e p"lacement and Improvement Fund" and "Surplus Fund".
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The Debt Service Fund and the Debt Service Reserve Fund
shall be maintained as trust funds in the custody of the
Trustee and shall be used solely for the payment of the
principal of and interest on the Bonds and, to the extent
provided in this ordinance, for the redemption and the
purchase for retirement of Bonds. Moneys on deposit in the
Debt Service Reserve Fund shall, to the extent necessary
from time to time, after applying to the following purpose
any moneys then in the Replacement and Improvement Fund and
the Surplus Fund, be transferred to the Debt Service Fund
to permit the payment of all obligations payable from the
Debt Service Fund.
Until required for the foregoing purposes, moneys on
deposit in the Debt Service Reserve Fund shall, when and as
directed by the Fiscal Officer, be invested in any bonds or
other obligations of the United States of America which as
to principal and interest constitute direct obligations of
or are guaranteed by the United States of America. Moneys
in the Debt Service Fund shall, when and as directed by the
Fiscal Officer, be invested in any bonds or other
obligations of the United States of America which as to
principal and interest constitute direct obligations of or
are guaranteed by the United States of America maturing, or
redeemable by the holder, not later than the interest
payment date next following such investment, as to moneys
held for the payment of interest, and not later than the
principal payment date next following such investment, as
to moneys held for the retirement of principal. If at any
time the Municipality shall have provided the Trustee with
moneys sufficient, together with moneys and investments
then on deposit in the Debt Service Fund and Debt Service
Reserve Fund, to retire on the next available redemption
date any outstanding Bonds, without thereby reducing the
balance thereafter remaining in the Debt Service Fund and
Debt Service Reserve Fund below the amount which on such
redemption date would be required to be on hand therein
with respect to Bonds not so to be retired, the Trustee
shall make available out of the Debt Service Fund and the
Debt Service Reserve Fund the amount required, together
with the other moneys provided, to accomplish such
retirement.
When the amount on deposit in the Debt Service Reserve Fund
is at any time in excess of the amount from time to time
required to be therein maintained, the excess amount shall,
at the request of the Fiscal Officer, be paid by the
Trustee to the Municipality and credited to the Debt
Service Fund.
When the amount on deposit in the Debt Service Reserve
Fund, together with the amount on deposit and available in
the Debt Service Fund, is equal to the outstanding
principal amount of the Bonds, the Trustee shall transfer
from the Debt Service Reserve Fund to the Debt Service Fund
an amount equal to the principal of the Bonds maturing stated at maturity or pursuant to mandatory redemption on the
next succeeding date on which principal is due.
The Replacement and Improvement Fund shall be maintained in
the custody of the Municipality as a separate deposit
account (except when invested as hereinafter provided),
shall, to the extent necessary from time to time, after
applying to that purpose any moneys then in the Surplus
Fund, be transferred to the Debt Service Fund to permit the
payment of all obligations payable from the Debt Service
Fund without drawing on the Debt Service Reserve Fund and, otherwise, shall be used solely to replace obsolete or worn- out equipment or to make improvements and extensions
of or extraordinary repairs to the Utility or, together with available funds on deposit in the Debt Service Fund
and the Debt Service Reserve Fund and other funds made
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Section 11.
Section 12.
available by the Municipality, to retire by purchase or by
call for redemption, in accordance with applicable
redemption provisions of the Mortgage, all or part of the
Bonds from time to time outstanding. Until required for
such purposes, moneys in the Replacement and Improvement
Fund may be invested in Eligible Investments.
The Surplus Fund shall be maintained in the custody of the
Municipality as a separate deposit account (except when
invested as hereinafter provided) and shall, to the extent
necessary from time to time, be transferred to the Debt
Service Fund to permit the payment of all obligations
payable from the Debt Service Fund without drawing upon the Debt Service Reserve Fund or the Replacement and
Improvement Fund and, otherwise, may be used for any other
lawful Utility purpose, including, without limitation, the
retirement of outstanding Bonds by call for redemption by purchase for cancellation, or payments, if any, required to be made to the Ohio Water Development Authority, payments with respect to principal of and interest on revenue bonds
hereafter issued which are subordinated to the Bonds, and
the payment of debt service requirements on general
obligation bond anticipation notes and bonds heretofore or hereafter issued for improvements to the Utility. Until
required or used for such purposes, moneys in the Surplus
Fund may be invested in Eligible Investments.
Any Bonds purchased for cancellation shall be purchased at
a price not exceeding their fair market value.
Disposition of Interest. Interest on any moneys or
investments in the Debt Service Fund and the Debt Service
Reserve Fund shall be credited to the Debt Service Fund.
Interest on any moneys or investments in the Replacement
and Improvement Fund shall be credited to the Replacement
and Improvement Fund; provided that if the amount of moneys on deposit in the Replacement and Improvement Fund when
combined with such interest exceeds $110,000, then such
excess interest shall be credited to the Debt Service Fund.
Interest on any moneys or investments in the Construction
Fund, the Sewer Revenue Fund and the Surplus Fund shall be credited to, respectively, the Construction Fund, the Sewer Revenue Fund and the Surplus Fund.
Eligible Investments. As used in this ordinance, the term Eligible Investments" shall include any of the following:
i) any bonds or other obligations of the United States of America which as to principal and interest constitute direct obligations of or are guaranteed by the United States of America, i(i)obligations of the Government National Mortgage Association, i(ii) obligations of the Federal Farm Credit Banks, i(v)obligations of Federal Home Loan Banks, v( ) certificates of deposit of banks or trust companies, including the Trustee, organized under the laws of the United States of America or any state thereof which have a combined capital and surplus of at least $50,000,000 in dollars of the United States of America, provided that such certificates of deposit are secured at all times by collateral security described in clauses (i),i i(),i i(i) and i(v)hereof or (vi) any repurchase agreement, including those of the Trustee, of a bank or savings and loan association, organized under the laws of the United States of America or any state thereof, fully collateralized by interest bearing obligations described in clause i()above; provided that for purposes of clauses v( )and v( i) hereof, the securities or obligations collateralizing the certificate of deposit or the repurchase agreement, as applicable, are in the possession of the Trustee or his agent and ar2 free and clear of all liens or rights of any third party, and in which security or obligation the Trustee has D first perfected security interest; and provided further that any of the foregoing investments or deposits is Got prohibited by law.
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10-
Section 13. Additional Bonds. The Municipality shall have the right
from time to time, prior to the absolute maturity date of
the Lmprovement Bonds, to issue Additional Bonds for the
purpose only of (i) providing additional funds, if
necessary, for the completion of the Proj ect, but not to
exceed 10%of the principal amount of the Improvement
Bonds, (ii) making replacements, extensions and
improvements to the Utility, (iii) refunding or advance
refunding for any lawful purpose any outstanding Bonds the or Temporary Revenue Bonds, or a portion thereof, or (iv)
any combination of (i), ii() , i(ii) and (iv).Such
Additional Bonds shall be payable from the Special Funds
hereinabove established and shall be secured by a lien upon the properties and revenues of the Utility on a parity with the Improvement Bonds. The Trustee shall authenticate and
deliver such Additional Bonds; provided that when any such
Additional Bonds are issued, the Municipality shall have
furnished to the Trustee the following:
a) A certificate of the Fiscal Officer and the Legal
Officer certifying that, to the best of their knowledge,
the Municipality is not, on the date of issuance of such
Additional Bonds, in default in the performance of any of
its covenants provided in this ordinance, the Mortgage or the Bonds;
b) A certificate of an independent engineer, satisfactory to the Trustee, showing:
1) That, where issued for such purpose, the
Additional Bonds are necessary for the completion of
the Project and will provide sufficient funds to
effect such completion, or if the Additional Bonds are issued to finance replacements, extensions or improvements to the Utility, such replacements,
extensions or improvements are reasonably necessary for the proper and economical operation of the Utility
or for meeting existing or prospective demands for its services or both;
2) That, if issued to finance replacements,
extensions or improvements to the Utility or for
refunding any outstanding Bonds or the Temporary
Revenue Bonds, or a portion thereof, (i) the aggregate
revenues of the Utility received during the 12
calendar months immediately preceding the passage of the ordinance authorizing such Additional Bonds,
adj usted to reflect, if necessary, rates in effect at the time of passage of such ordinance authorizing the Additional Bonds, less the expense of operation and
maintenance e(xcluding from such expense of operation and maintenance payments on capitalized lease
obligations) of the Utility during the aforesaid 12 calendar months must be equal to at least 100%of the largest amount required to be paid in the Debt Service Fund in any succeeding 12m-onth period ending November 30 to meet interest, premium and principal w( hether at maturity or mandatory redemption)of all Bonds to be outstanding immediately after the issuance of the Additional Bonds and i(i)the aggregate revenues of the Utility received during the 12 calendar months immediately preceding the passage of the ordinance
authorizing the issuance of such Additional Bonds, adjusted to reflect, if necessary, rates in effect at the time of passage of such ordinance authorizing the issuance of the Additional Bonds, less the expense of operation and maintenance e(xcluding from such expense of operation and maintenance payments on capitalized lease obligations) of the Utility during the aforesaid 12 calendar months, plus such engineer's estimate of the increase in annual operating revenues projected to be derived from the replacements, extensions or
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improvements to be financed by the Additional Bonds,
where issued for such purpose, averaged over the two
calendar years following completion of such
replacements, extensions, or improvements less such
engineer's projection of additional expenses of
operation and maintenance (excluding from such expense
of operation and maintenance payments on capitalized
lease obligations) averaged over the two calendar
years following completion of such replacements,
extensions or improvements, will aggregate an amount
at least equal to 130%of the largest amount required
to be paid into the Debt Service Fund in any
succeeding 12- month period ending November 30 to meet
interest, premium and principal (whether at maturity
or mandatory redemption) of all Bonds to be
outstanding immediately after the issuance of the
Additional Bonds;
c) A certified copy of the ordinance authorizing the
issuance of such Additional Bonds; and
d) In the case of Additional Bonds to be issued for the
purpose of refunding any outstanding Bonds or the Temporary
Revenue Bonds, or a portion thereof, evidence satisfactory
to the Trustee (i) that provision has been made to assure that moneys sufficient to retire the Bonds to be refunded
will be available in the possession of the Trustee at the
time provided for retirement thereof under the plan for
refunding and are committed to such purpose and (ii) that
moneys sufficient to pay interest accrued and to accrue and
principal, if any, payable on such Additional Bonds prior
to such retirement of the Bonds to be thereby refunded have
been deposited in the Debt Service Fund without impairment
of any provision or covenant of this ordinance, and from
sources other than the Sewer Revenue Fund except to the
extent of any moneys therein in excess of the balances
required to be maintained in the same under the provisions
of this ordinance, the transfer of which excess moneys for
such purpose is hereby authorized, or will be deposited
directly in the Debt Service Fund from appropriate portions
of the proceeds from the sale of such Additional Bonds
pursuant to the ordinance identified above. in paragraph c( )
In making the calculation for purposes of the certificate
of the independent engineer provided for in paragraph (b) above, in the case of the issuance of Additional Bonds for
the purpose of refunding any outstanding Bonds, payments into the Debt Service Fund on account of interest and
principal requirements of such Additional Bonds shall be
used in lieu of and to the exclusion of such payments on account of interest and principal requirements of the Bonds
being refunded thereby.
To the extent that the amounts of deposits required to be made under Section 9 of this ordinance are to be determined
on the basis of the principal amount or the principal and interest requirements of Bonds outstanding, in determining
the amounts of such deposits made or to be made while there
remain outstanding Bonds for the refunding of which
Additional Bonds have been issued, the principal amount and the principal and interest requirements of such Additional Bonds shall be disregarded.
The proceeds of any sale of any issue of Additional Bonds,
except Additional Bonds issued for the purpose of refunding
any outstanding Bonds, shall be allocated in substantially the same manner as provided in this ordinance with respect to the Improvement Bonds, and a construction fund for such proceeds shall be created in connection with ach such issue of Additional Bonds and shall be applid*»]to.c,he
purposes set forth in the applicable certificats of the
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Section 14.
Section 15.
Section 16.
independent engineer and to defray costs and expenses
incidental thereto or incidental to the sale or issuance of
such Additional Bonds.
The Additional Bonds shall bear such designation as may be
necessary to distinguish them from the Improvement Bonds or
other Additional Bonds having different provisions and
shall have maturities, interest rates, interest payment
dates, redemption provisions, denominations and other
provisions as provided in this ordinance or in the
ordinances hereafter adopted providing for issuance of
Additional Bonds; provided that such terms and provisions
shall not be inconsistent with this ordinance, the Mortgage
or the then outstanding Bonds.
Additional Bonds shall not be redeemable earlier than the
maturity date for the Improvement Bonds.
Terms of All Bonds. The Bonds shall be designated provided as in the ordinance authorizing their issuance, shall
be payable in lawful money of the United States of America,
shall be in fully registered form without coupons u( nless a supplemental indenture of mortgage shall have been executed
and delivered pursuant to Section 12.01(7) of the
Mortgage)s,hall be negotiable instruments, shall express
upon their face the purpose for which they are issued,
shall be issued pursuant to Section 12 of Article XVIII of
the Constitution of the State of Ohio and shall be signed
by the Executive and the Fiscal Officer and sealed with the
corporate seal or shall be signed and sealed in such manner
as may be required in such ordinance or by law or charter
provision, if any, applicable at the time of issuance of the respective Bonds.
Security. The principal of and interest on the Bonds and
any premium thereon shall be payable solely from the
revenues of the Utility and shall be secured only, but
equally and ratably without priority of one over another by
reason of a number or of date of Bonds, sale, execution or delivery, by the Mortgage constituting a lien upon said
revenues and properties, after provision for the reasonable
operation and maintenance expenses of the Utility, and by
the franchise hereinafter provided for under which, in case of foreclosure of the Mortgage, the purchaser may operate the Utility; and anything in the Mortgage, in this
ordinance or in the Bonds or the legislation authorizing
their issuance to the contrary notwithstanding, neither the general resources of the Municipality shall be required to be used, nor the general credit of the Municipality pledged
for the performance of any duty under the Mortgage, this ordinance or the Bonds; provided that, if otherwise lawful,
nothing herein shall be deemed to prohibit the Municipality
from using, of its own volition, any of its general
resources for the fulfillment of any of the terms and conditions of the Mortgage, this ordinance or the Bonds.
Covenants of Municipality. The Municipality, by the
issuance of the Improvement Bonds, covenants and agrees with the holders of the Bonds and with the Trustee that:
a) The Municipality will at all times prescribe and charge such rates for the services of the Utility, and will
so restrict the operation and maintenance expenses of the Utility, as shall result in Utility revenues at least adequate, after meeting such operation and maintenance
expenses, to provide for (i) the payments required by this ordinance to be made into the Debt Service Fund, the Debt Service Reserve Fund, the Replacement and Improvement Fund and the Surplus Fund, i(i)sufficient earnings coverage to permit the issuance of any Additional Bonds required for the construction of necessary or advisable extensions or improvements, ( iii)proper improvement and replacement
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reserves and (iv) in each 12- month period ending November
30, an amount at least equal to 130%of the amount required
to be paid into the Debt Service Fund during such 12- month
period; provided that the failure in any such 12- month
period to meet such test shall not constitute an event of
default under the Mortgage. In such event, the
Municipality shall immediately employ an independent firm
of engineers or consultants, knowledgeable in the operation
of municipal sewer systems and rate studies applicable
thereto and having a good repute for skill and experience
in such work, to submit a written report and
recommendations with respect to the rates and charges of
the Utility and with respect to improvements or changes in
the operations Of the Utility, stating the extent to which
prior recommendations of consultants or engineers may not
have been complied with by the Municipality. A copy of
such report and recommendations shall be filed with the
Municipality, the Trustee, the Original Purchaser and any
holders of Bonds requesting the same. The Municipality
covenants and agrees that, from time to time and in
accordance with law and all other applicable covenants, it
shall exercise its best efforts to revise its rates and
charges in conformity with such recommendations and
otherwise follow such recommendations.
b) The Municipality will segregate the revenues, funds
and properties of the Utility from all other funds and
properties of the Municipality, and will keep, or cause to be kept, proper books and records in such manner as to show
the complete financial results of the operation of the
Utility, the revenues and operating and maintenance
expenses thereof, all capital expenditures therefor and the
amounts deposited under Section 9 hereof.
c) The Municipality will furnish to the Trustee and to the Original Purchaser semiannually reports of the
operation and income of the Utility and also an annual
report of the accounts and operations of the Utility and
will permit, or cause to be permitted, the Trustee and the
holder or holders of 25%of the aggregate principal amount
of the Improvement Bonds at the time outstanding to inspect
the Utility and all records, accounts and data relating
thereto at all reasonable times.
d) The Municipality will operate, or cause to be
operated, the Utility in an efficient and economical
manner, maintain, or cause to be maintained, the same in good a state of repair and operating efficiency and provide,
or cause to be provided, adequate insurance covering all of
the Municipality's insurable properties and insurable
operations included in the Utility against hazards which
might interfere with the operations thereof or liabilities
which might be imposed upon the Municipality because of such operations.
e) The Municipality will not, except as expressly
permitted by this ordinance, create, or suffer to be
created, any lien or charge which would constitute a lien
prior to, or on a parity with, the lien upon the pledged
revenues provided for herein.
f) The Municipality will not voluntarily cause the
curtailment of the use of the Utility or provide other similar facilities which would be operated so as to interfere with the prompt performance of all of the obligations and covenants contained herein or in the Improvement Bonds.
g) The Municipality will not, without consent of the Original Purchaser and the holders of all of the
outstanding Improvement Bonds, extend, or assent to the extension of, the time for payment of any Improvement Bonds.
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Section 17.
h) The Municipality will comply in a timely manner with
all terms, conditions and obligations of the EPA Grant and
will deposit in the Construction Fund the EPA Grant and any
and all other funds, grants or other moneys received from
any federal or state agency as reimbursement for costs of
the Project.
i) The Municipality will, at any and all times, cause to
be done all such further acts and things and cause to be
executed and delivered all such further instruments as may
be necessary to carry out the purpose of the Improvement
Bonds and any ordinance authorizing the same or as may be
required by Section 12, Article XVIII of the Constitution
of the State of Ohio and will comply with all requirements
of laws applicable to the Utility and the operation
thereof.
j) The rates and charges for all services and facilities
rendered by the Utility shall be reasonable and just,
taking into consideration the costs and value of the
Utility and the costs of maintaining, repairing and
operating the same and the amounts necessary to meet the
requirements of this Section and Section 9 hereof.
k) All of the obligations set forth and covenants made
under this ordinance are hereby established as duties
specifically enjoined by law and resulting from an office,
trust or station upon the Municipality within the meaning
of Section 2731.01, Ohio Revised Code.
1) The Municipality will observe and perform all of its
agreements and obligations provided for by the Bonds, the
Mortgage and this ordinance.
Mortgage. In order to secure the payment of the principal
of and interest on the Bonds as the same shall become due
and payable and the performance of the obligations of the
Municipality in this ordinance, the Bonds or the Mortgage,
the Executive and the Fiscal Officer are hereby authorized
and directed in the name of and on behalf of the
Municipality to make, execute, acknowledge and deliver to
the Trustee the Mortgage, which shall be a good and
sufficient mortgage deed mortgaging in trust, for the
holders of the Bonds, all of the properties and assets of
the Utility now owned or hereafter acquired by the
Municipality during the time any of the Bonds shall remain
outstanding and unpaid, in such form and containing such
terms, covenants and conditions not inconsistent with this
ordinance as shall be approved by the Original Purchaser and by the Legal Officer.
Provision shall be made therein that in case the
Municipality shall default for more than 60 days in the
payment of any Bonds or the interest thereon or for than 90 days more in performing any of the covenants or requirements of the Mortgage, this ordinance or the Bonds,
the Trustee may elect to, and upon request of the owners or holders of 25%in aggregate principal amount of the
outstanding Bonds shall, declare the entire principal
amount of the Bonds then outstanding due and payable, and proceed to foreclose the Mortgage; but such provision shall be sublect to the condition that if at any time after the principal of said Bonds may have been so declared due and
payable, and before there shall have been any sale of the properties mortgaged thereunder, all sums payable under the
Mortgage, except the principal of Bonds thereby secured
which have not reached their maturity dates, shall have been duly paid and all existing defaults shall have been made good, then and in every such case such payment shall
constitute a waiver of such default and its consequences; provided that no such waiver shall extend to or affect any subsequent default nor impair any rights consequent thereon.
The Mortgage shall contain the usual covenants and
provisions as to foreclosure and sale and as to other
remedies of the Trustee and holders of the Bonds, and shall
provide for the appointment of a receiver with powers
customary in general equity cases to operate the Utility
and to apply. the revenues thereof to the payment of the
Bonds and the interest thereon, in accordance with this
ordinance and the provisions of the Mortgage, in the event
of litigation involving the operation or administration of
the Utility by the Municipality or default by the
Municipality in performance of the terms and conditions of
this ordinance, the Mortgage or the Bonds.
The Mortgage shall also contain covenants as to prompt and
efficient construction of the Project, proper maintenance
of Utility properties and efficient operation thereof,
maintenance of title to such properties and of the priority
of lien of the Mortgage, disposition of unnecessary or worn
out properties, maintenance of adequate insurance upon
Utility properties, recordation of the Mortgage and any supplement thereto, compliance with applicable requirements
of law, and such other covenants as may be appropriate necessary or for the due protection of the rights and
securities of the holders of the Bonds.
The Mortgage shall contain appropriate provisions for the
appointment and succession of a registrar for the Bonds,
the establishment of a register for the Bonds, and
procedures for the registration, transfer and exchange of
Bonds by that registrar on that register. The Mortgage
shall also contain appropriate provisions for the
designation and succession and the duties of paying agents and authenticating agents for the Bonds.
The Mortgage shall contain appropriate provisions whereby
the Municipality, by ordinance of this Council and with the
written consent of the holders of not less than 66-2/3%in
aggregate principal amount of outstanding Bonds (excluding
Bonds held or owned by the Municipalitym),ay modify or amend any covenant, condition or provision of the Mortgage
or any supplement thereto so long as such action shall not result in changing the redemption provisions or interest
and principal maturity dates nor reducing the principal
amount of the Bonds or in modifying the rights or obligations of the Trustee without its consent, nor reducing the percentage herein specified, nor imposing upon any part of the properties or revenues of the Utility
described in the Mortgage or any supplement thereto any mortgage or lien ranking prior to the lien of the Mortgage.
In the event of the foreclosure of the Mortgage, the purchaser or purchasers at such foreclosure sale shall be entitled to operate the Utility as improved or extended
under the terms of the following franchise, which is hereby ordained and established to take effect immediately upon the confirmation of such foreclosure sale, to wit:
FRANCHISE TO CONSTRUCT, MAINTAIN AND OPERATE A
PUBLIC UTILITY IN AND FOR THE MUNICIPALITY, UPON,
ALONG AND UNDER THE STREETS, LANES, ALLEYS, AVENUES
AND OTHER PUBLIC THOROUGHFARES OF THE MUNICIPALITY·, AND TO FIX AND PRESCRIBE THE TERMS AND CONDITIONS
UNDER WHICH SAID OPERATION SHALL BE CONDUCTED.
Section A: Hereafter when the word G" rantee" appears in this franchise, it shall be held to mean and include the purchaser or purchasers at a judicial sale upon foreclosure of the Mortgage on the municipal
Utility referred to in the ordinance granting this franchise and any person, association of persons, partnership or corporation who shall, upon such foreclosure, become the owner of said public
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1
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utility by assignment from said purchaser; and this
franchise shall inure to the benefit of such
person, association, partnership or corporation and
their heirs, executors, administrators, successors
and assigns. The term M" unicipalityw",here used
herein, shall refer to the Municipality granting
this franchise.
Section B: The Grantee is hereby granted the right, for the
full period of twenty years after the date of the
final confirmation of such judicial sale on
foreclosure of the Mortgage, to construct,
maintain, operate and extend upon, along and under
the streets, lanes, alleys, avenues and other
public thoroughfares, and public property of the
Municipality, with the full and necessary
privileges for the use of the streets, lanes,
alleys, avenues and other public thoroughfares or
property for the purpose of constructing, erecting,
maintaining, operating and extending mains, valves,
meters, outlets, connections, manholes and all
other apparatus necessary or appropriate to the
operations of the Utility.
Section C: This franchise shall be held to apply to and give
the right to own and operate all the properties,
property rights and interests theretofore owned or
operated by the Municipality as or in connection
with said Utility, with all extensions,
betterments, replacements and new equipment which
have been made or added thereto by said
Municipality prior to the taking effect of this
franchise, together with the extensions and
betterments and equipment which may thereafter be
made from time to time by the Grantee during the
life of this franchise.
Section D: The Grantee, in the maintenance, repair or
extension of said Utility, shall not unnecessarily
interrupt or obstruct the use of any street, lane,
alley or public thoroughfare, and in connection
with any such work shall obtain such permits and
approvals as may be required by the ordinances of
the Municipality.
When any streets, alleys or public grounds are entered upon, or facilities removed therefrom, the
Grantee shall restore the same to their original
condition and shall clear all such places of dirt,
obstructions and anything that might constitute a nuisance, or prevent such street, alley or public
ground from being open and in repair. Such
restoration to original condition shall be made by
the Grantee under the supervision and control of
the appropriate officer of the Municipality, who
shall determine what part, if any, of such work,
shall be done by the Municipality and charged to the Grantee. Upon the doing of such work, the
Municipality shall furnish the Grantee with
itemized bills of the cost thereof, which bills
shall be paid by the Grantee within ten (10) days after the receipt thereof.
Section E: The Grantee shall at all times be subject to the
regulations imposed by the laws of the State of
Ohio and such general reasonable regulatory
ordinances of the Municipality as may exist at the effective date of this franchise or thereafter be
adopted, including the continuing right of said
Municipality's Council to require such
reconstruction, relocation, change or discontinuance of the appliances used by said
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Utility in the streets, alleys, avenues and
highways of the Municipality, as shall in the
opinion of the Council be necessary in the public
interest. The Grantee, however, shall have a right
to a fair return on its investment; it being
understood, however, that the Municipality cannot
waive or surrender any of the police powers granted
to, or inherent in, municipal corporations and
nothing herein contained shall be construed as a
waiver or surrender of such powers or other rights
conferred by law on municipal corporations.
In construction, maintenance or repair of its
properties, the Grantee shall comply with all
regulations existing or that may thereafter be made
by the Municipality applicable to said Grantee, and
the Grantee shall be liable for damages that may
arise by reason of its failure or neglect to comply
with such regulations and shall save the
Municipality harmless from any and all claims for
damages by reason of such failure or neglect.
Section F: The Grantee shall fully indemnify the Municipality
and save it harmless from any and all damages that
the Municipality may sustain and from all
judgments, decrees, costs and expenses which the
Municipality may, in any manner, suffer, or incur,
and which may be recoverable from or obtained
against the Municipality for or by reason of the
granting of the rights hereby conferred upon the
Grantee or growing out of or resulting from the
exercise and use by the Grantee of any of the
rights hereby granted to it.
Section G: For a period of ten years after the taking effect
of this franchise the Grantee may charge for
supplying the service of said Utility to the
Municipality and inhabitants thereof rates
equivalent to the highest schedule of rates in
effect under the Municipality's operation of said
Utility during the period from the granting of this
franchise to the effective date of this franchise,
increased by ten percent.
The payments to be made by said Municipality to
said Grantee for services or products of the
Utility to be furnished to said Municipality shall
be paid to the Grantee semiannually on or before
the tenth day of June and December in each during the year term of this contract; and in order to
provide means for the payment of all amounts to be
paid by said Municipality under this contract, in
the event funds are not available from any other
source, the said Municipality in its annual budget
and taxation and appropriation ordinances each year
during the term of this contract, obligates itself
to include and levy a sufficient sum on all the
taxable property in said Municipality to pay for
such services or products, the proceeds of which
levy shall be placed in a separate fund and which
taxes, when collected, shall be held inviolate for that purpose.
Section H: In the event that the above rates w(hich are minimum rates -not maximum rates)s,hall prove insufficient to provide revenues yielding, after meeting operating and maintenance charges in amount consistent with sound management and commensurate with the services required by the Municipality, an annual return of approximately six percent on the reasonable value of the Utility, including a reasonable allowance for depreciation, plus the
1
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Section 18.
Section 19.
cost of betterments, improvenents and extensions,
less depreciation thereon, as may have been
required or approved by the Municipality, the
Municipality, by appropriate ordinances, shall
raise such rates, or approve; and authorize action
of the Grantee raising such rates, sufficiently to
produce such return in the manner required by any'
applicable law, but the duty of the Municipality to
raise, or to approve and authorize the Grantee to
raise, such rates shall arise forthwith upon the
request of the Grantee, any law to the contrary
notwithstanding. In the event such action by the
Municipality is not taken, complaint may be filed
to the Public Utilities Commission of Ohio or its
successors in office and proceedings had before
said commission as provided in Section 4909.34 to
4909.37, inclusive, Ohio Revised Code. The
Grantee's right to complain to said commission ,
shall be cumulative to its right to enforce the
performance of the above imposed duty on the
Municipality under the provisions of Section
2731.01 et seq.,Ohio Revised Code.
Section I: For the second ten- year period of this franchise,
the rates to be charged by said Grantee shall be
fixed by the Council of said Municipality by and
with the consent of the Grantee or in any event of
the inability of the Municipality and Grantee to
agree, shall be such as may be fixed or determined
in accotdance with the provisions of the Ohio
Revised Code, including Section 4909.16 to 4909.19
thereof, but, in any event, the rates shall be such
as to produce to the Grantee the same return as provided in Section H hereof.
Section J: The Grantee shall keep all records and accounts of
the Utility in such form as shall be prescribed by
the Public Utilities Commission of Ohio, subject
always to the right of Council of the Municipality
to require more detailed forms and to exact more
comprehensive statements than may be prescribed by
said Commission. The Municipality shall at all
times have access to and opportunity for inspecting
all properties of the Utility and auditing,
examining and keeping copies of all records and
accounts in any way pertaining to the ownership operations of the Utility, or together with the right
to require of the Grantee at any time detailed
reports relating to the finances, operation,
management and ownership thereof. The Municipality
shall have the further right to establish standards
of service, to prevent unjust discrimination in
service or rates, and to require adequate extension
of plant, equipment and service.
Section K: No rights herein granted to the Grantee to
construct, maintain or operate said public utility shall be construed as exclusive or as preventing
the Municipality from granting a franchise or privilege to any other person, firm or corporation.
Separability Clause. Each section of this ordinance and each subdivision of any section thereof is hereby declared to be independent, and the finding or holding of any section or subdivision of any section thereof to be invalid
or void shall not be deemed or held to affect the validity of any other section or subdivision of this ordinance.
Open Meeting Determination. It is hereby found and
determined that all formal actions of this Council
concerning and relating to the passage of this ordinance
were adopted in an open meeting of this Council, and that
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t'-
Section 20.
Section 21.
Adopted: May 23
all deliberations of this Council and of any of its
committees that resulted in such formal action, were in
meetings open to the public, in compliance with all legal
requirements including Section 121.22, Ohio Revised Code.
Official Statement. If in the judgment of the Executive a
disclosure document in the form of an Official Statement is
appropriate or necessary in connection with the original
issuance of the Improvement Bonds, the Executive and the
Fiscal Officer in their official capacities are authorized
to prepare or cause to be prepared on behalf of the
Municipality an Official Statement and any necessary
supplements thereto, and on behalf of the Municipality to
use and distribute, or authorize the use and distribution
of, that Official Statement and any supplements thereto in
connection with the original issuance of the Improvement
Bonds. Those officers are each further authorized to
execute, on behalf of the Municipality and in their
official capacities, that Official Statement and any
supplements thereto approved by such officers. The
Executive and Fiscal Officer are each authorized to execute
and deliver, on behalf of this Municipality and in their
official capacities, such certificates in connection with
the accuracy of the Official Statement and any supplements
thereto as may, in their judgment, be necessary or
appropriate.
Effective Date. This ordinance shall be in full force and
effect on the 30th day after its passage.
Attest:42**
CISrk of 4C4o)uncil ,
1984
t*3
Malyor
I, Catherine M. Miller, Clerk of Council, of the Village of Granville, Ohio,
do hereby certify, that. the foregoing ordinance is. a true and exact copy of Ordinance No. 15-85.
Catherine M. Miller, Clerk of Council

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