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October 1/4, 1984 Council Meeting October 1, 1984 lar scheduled meeting of Mayor and Oouncil was held pursuant to the Oharter 1, 1984 at Smyrna Oi ty Hall. T:!Je meeting was called to order at 7: 30 o' cJ.ock p.m. by presiding o:f:ficer Mayor Protem 3im TolJ.eson. All Council members were present. AJ.so present was Oity Attorney Oharles E. Oamp, Oity Olerk Willouise Spivey, Assistant PubJ.ic Works Director Vic Broyles, Police Ohiei' R. E. Little, Acting Pire Ohie:f Hubert Oochran, Parks and Recreation Director Sherry Reavis, Oity Engineer 3im Mallett, Assistant Oity Clerk Melinda Dameron, Building Inspector Larry Dunn, Oivil De:fense Director 3im Farley, Librarian Doris Morris and representatives o:f the press. Invocation was given by 3ames Williams, followed by the pledge to the :flag. 3im Tolleson recognized Frank Wyatt, candidate :for Ohairman o:f the missioners. 3im Tolleson said that Mayor Bacon was here earlier but :for a :few minutes and should be back soon. Board had to of go Oom- home There were no citizens reports. Variance: James Williams to place a directional there was no representa 6-0. made a motion the variance request by Post Properties on the right o:f way be tabled to the next meeting since present. Hugh Hagan seco:pded the motion which carried Variance: 3197 South store with used in the Paul Suggs requested a Variance :for an additional sign at SterChi's, Oobb Drive. Mr. Suggs said this sign would be directly in :front of the a changeable reader board and would replace the portable signs they have past :for advertising. Jim Hawkins said i:f the existing sign was relocated t ard and not need the variance. Mr. Suggs said it was ally relocate the other sign and they could not place a ard on this sign because o:f the poor visibility. Also, i:f t:!le present sign is moved to the :front o:f the building there will be a prOblem with it overhanging the right of way o:f Drive. A:fter :further discussion, Jim Hawkins made a motion the variance denied. James Williams seconded the motion which carried 6-0. John Ooss re a variance on the :front building setback line :from 30 :feet o:f America, Inc. Mr. Ooss said the proposed bUilding in the :front o:f Kroger shopping center on South Cobb Drive. In order to the bUilding on the site they need more depth and would like to reduce the :front setback :from 50 :feet to 30 :feet. The abandoned service station on tIle lot now has a canopy that extends 22 :feet :further on the :front than where they propose to place their building. aid their plans indicated they would be paVing over the detention area shopping center. Mr. Goss said they were propOSing ound detention area but the engineering work is costly, and needed to er or not it would be pOSSible f'or them to build on the location be:fore proceeding with the engineering work. Mr. Ooss said he had already met with their drainage engineer and knew the system could be built because it is done all the time. They have tr tion the building on the J.ot so that the var'iance would not be requir not able to work out the number o:f parking spaces would need. J d he Would like :for Mr. Ooss to meet with our and show had in mind :for' the detention area and also understood there was concerning the right o:f way. Jim Hawkins made a motion the variance be tabled to the next meeting. Max Bacon seconded the motion which carried 6-0. Walter E. Mof':fett r'equested a variance on :front building setback :from 40 :feet :for constr'uc of a canopy at Oobb Oenter Amoco on South Cobb Drive. project engineer 0 spoke and said he had met with Mr. Broyles as was r'equested at the last meeting. Vic Br'oyles said his recommendation was that the variance be approved because this addition will still be :t~urther :from the right of' way than the Union Oil station next door. Jack Shinall made a motion the variance be approved. seconded by Kathy Brooks. Mr'. Williamson f'rom the audience ted now and asked i:f t Mr. Mof'f'ett said they to get :further away :f radius onto South Cobb be elim o:f the Oity has the State are now looking spoke and said this intersection is terribly conges- ars :fr'om going le:ft onto Powder Springs Street. one o:f the driveways onto Powder Springs Street on and they ar'e also increasing the turn will help the tra:f:fic problem. They will also onto South Cobb Drive. Jack Shinall said t:!le about Changing the timing on the lights, with nO at the possibility oi' using turn signals. Vote on October J., 1984 - Continued the motion :failed 2-4, with Max Bacon, James Williams, Jim Hawkins and Hugh Ragan opposed. N. C. Sloan requested a variance on the rear yard setback 50 :feet to :for construction o:f a sel:f-serve mart at Union Oil, 269J. Drive. Mr. Sloan said this was a larger builcJ,ing tIlan they had originally and have received o:f the property owner to the rear. Vic Broyles said there may be some required by the o:f Transportation, one being that t:tley would close one o:f the curb cuts onto South Oobb Drive and thought they ask :for an extra on the curb. Mr. Sloan said he was not aware o:f requirements and had been contacted by the State at all. Kathy Brooks a motion the variance be until these questions could be resolved. Jack Shinall seconded the motion which carried 6-0. Variance: Charles Miller requested a variance to omit the 10 :foot landscaped strip :for construction o:f a new shopping center on Spring Road and Atlanta Hoad. Mr. Miller said Road to setback parking strip space to the an a:pd on There he had a J.20 :foot setback :from Spring Road and a 70 :foot setback :from Atlanta the property line. The proposed site is 50,000 square :feet and meets all req1J.irements. The varianCe, i:f approved, will allow them to pave their area up to the property I:f they are required to use landscaped will lose approximately square :feet, or 18 to 20% o:f leasable w01J.ld pJ.ace an economic on them. Mr. Miller said they have talked in the area, and received their approval. Also, they will have lane on Spring and Atlanta, as required by tIle State replace the sictewalkon Spring Street. Mr. Miller said the entrance has been approved i:t1 principal by the Department of' Transporation. discussion about tne owperstdp of' Atlanta Terrace and Max Bacon said like to see more detailed p1ans and something in writing f'rom the Transporation. Max Bacon made a motion the variance be tabled to the . James Williams seconded the motion which carried 6-0. commercial Buildi:pg Permits: Commercial building permits were presented by Building Inspector Larry Dunn and recorded as :follows: (1) Papa Pirozkie's requested a building permit :for construction o:f anew restaurant on Lake Park Drive at a total estimated cost o:f $250,000. James Williams made a permit be approved, subj ect to approval o:f the City Engineer and Fire Shinall seconded the motion which carried 6-0. (2) Road be requested a permit j"or an addition to the building at 1246 Concord estimated cost o:f $75,000. Jim Hawkins made a motion the permit s1J.bject to approval o:f the Oity Engineer and Fire Marshal. Jack Shinall motion which carried 5-1, with Max Bacon opposed. his the to 6-0. Kathy Brooks read a letter :frOIu Harry Hollingswortll occupy a mobile home (camper) 2538 Ole'Odale home at the same address burned and is unable to to rent :for the 4 to 6 weeks required to restore house because age children. ThilSWi1l be a 11t :foot camper to be USed :for sleeping Kathy said Mr. HollinglSworth is a 100% disabled veteran. Kathy said have been contacted and they have nO obj ection to them sleeping in Kathy Brooks made a motion approval be given to the Holli'Ogsworth' s camper :for 4 to 6 weeks. Jim Hawkins seconded the luotion which carried Bids :for two and recorded as ( 2 ) cab s :follows: and chassis :for the Sanitation Departme'Ot were Peach State Ford $30,200 each LN8000 Series Delivery date: 1985 model March or April 1985 ALTERNATE: $29,935.27 $28,630.42 For immediate delivery LN8000 LN7000 $30,200 each LN8000 series Delivery date: 1985 model March or April 1985 ALTERNATE: For immediate de:Livery $29,935.27 LNBooO $28,630.42 - LN7000 i~ Max Bacon made a motion the bids be turned over to the committee with their recommen- dation back at the :pext meeting. Jim HaWkins seconded the motion Which carried 6-0. There were no bids :for the installation o:f the Powder Springs Street bridge. Bacon made a motion bids be resubmitted :for the :first meeting in November. HaWkins seconded the motion which carried 6-0. Max Jim Heouest :for Bids: Jack Shinall made a motion bids be requested :for :for a 1970 model 350 series truck in the Parks Department to be opened 15th meeting. Jim Hawkins seconded the motion which carried 6-0. a new chassis at the October HUg:!l Hagan read two (2) proposed ordinance amendments as . and made a motion they be approved. Article XIII, Section 1307 or corporation violating any provision o:f this ordinance shall a misdemeanor and, upon conviction, shall be fined a minimum of $200.00 than $500.00 :for each of:fense. Each day such violation continues shall separate o:ffense. person, be guilty o:f and not more constitute a Chapter 19-8, Soil Erosion & Sedimentation ControJ. person or persons any provision o:f this ordinance shall upon conviction be punished by a :fine of not less than $200.00 and not more than $500.00 :for each of:fense. Each day such violation continues shall constitute a separate o:f:fense. The amendments have been advertised, and Jack Shinall seconded the motion which carried 6-0. Hugh Ragan made a motion the proposed amendments to the ordinance :for variance re- quirements be tabled to the :pext meeting. Max Bacon seconded the motion which carried 6-0. J.M.E.R.S. Kathy Brooks said there are two changes that must be made to our JMERS ordinance by December, 1984 in order for the City to comply with a 1983 Supreme Court ruling. This amendment will change the benefit formuJ.a from 1.25 to 2% and :from 1. (} to 1.75% and will not a:ffect any employees on roll now; only :future employees. Hugh Ragan also said the amendments would not a:f:fect anyone on council, only full time employees. Kathy Brooks made a motion the amendments to t:!le JMEHS plan be approved. Max Bacon seconded the motion which carried 6-0. A:pproval of' Minutes: Jim Hawkins made a motion the minutes o:f September 5, 17 and 24 be approved as submitted. Max Bacon seconded the motiOn which carried 6-0. Appointment to Parks Commission: James Williams made a motion that Maurice Blount, l801 Teasley Drive be appo'inted to the Parks and Recreation Commission representing Ward 3. Max Bacon seconded the motion whicl1 carried 6-0. Oommittee Reports: was very success:fuJ. On October 31st. (Parks) Sherry Heavis and stated the Halloween said the Fall Festival last Saturday Carnival would be at Cobb Center Mall Jack Shinall asked Vic Broyles to pursue the turn signals at the major intersections on South Cobb Drive. (Lib:pary) Doris Morris reported on library activities. Jim Tolleson announced that Jim David had retired September 26, 1984, and Vic BroyJ.es is now Director o:f Public Works. With nO :further business, meeting adjourned at 8:45 p.m. ************************ A special called meeting o:f Mayor andOouncil was held on October 4, :19134 at Smyrna Oity Hall. 'rhemeeting was called to order at 5: 00 p.m. by presiding o:f:ficer Mayor Arthur T. Bacon. All Oouncil members were present except Hugh Ragan and Jim Tolleson, who had engagements. Also present was City Attorney Charles Camp, Oity Clerk Spivey, Oordon Morton and Ed Wall, representing Lex Jolley & Assoc- iates Sharpe ~rom the Marietta Daily Journal. The o~ the special called meeting was to Bond issue. Mr. Morton stated rate and the City's bond rating is AAA. $4,315,000 Water and real good insurance :finalize the we received a A and proved the with the Trust carried 5-0. was read appoiI;lting a successor custodian o~ the City of' Water Sinking Fund. JilJ'il Hawkins made a motion the be ap- Water and Sewerage System Sinking Fund be moved to an escrow account Oompany Bank o:f Cobb Oounty. James Williams seconded the motion which A:fter James be approved as presented. Williams made a motion tIle Ordinance, as attached Jim Hawk:i:ps seCOnded the mot:ion wh:ich carried 5-0. hereto, James Williams made a motion the Mayor be given authority to sign the Bond Purchase Agreement. Jack ShinaJ.l seconded the motion which carried 5-0. With no :further business, meeting adjourned at 5:25 p.m. ************************ A RESOLUTION APPOINTING A SUCCESSOR CUSTODIAN OF THE CITY OF SMYRNA WATER AND SEWERAGE SYSTEM SINKING FUND, AND FOR OTHER PURPOSES: WHEREAS, pursuant to that certain ordinance ted on November 1, 1954, the City of Smyrna has heretofore authorized the issuance of $900,000 principal amount of "City of Smyrna Water and Sewerage Revenue Anticipation Certificates, Series 1954" (hereinafter sometimes referred to as "Series 1954 Certificates"); and WHEREAS, pursuant to said ordinance of November 1, 1954, the Cobb Exchange Bank, Marietta, Georgia was designated as Custodian of the "Water and Sewerage System Sinking Fund" (hereinafter sometimes referred to as "Sinking Fund") which said fund was created pursuant to provisions of said ordinance of November 1, 1954 and secures the payment of the City's Series 1956 Certificates, Series 1957 Bonds and Series 1960 Bonds now outstanding, and WHEREAS, it was provided in Section 2 of Article V of said ordinance of November 1, 1954, that the City could, from time to time, des te a SUCCessor Sinking Fund Custodian, and WHEREAS, it has now been determined that the Trust Company Bank, Atlanta, ia, should be des as the Successor Sinking Fund Custodian. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the City of Smyrna and it is he resolved by authority of the same, that pursuant to the provisions of Section 2 of Article V of said ordinance of November 1, 1954, the Trust Company Bank, Atlanta, ia be and the same is hereby designated as successor Custodian of the "Water and Sewerage System Sinking Fund" ef as of the date of the adoption of this resolution; and BE IT FURTHER RESOLVED by the authority aforesaid, and it is he resolved by authority of the same, that any and all ordinances and resolutions, or parts of ordinances and resolutions, in conflict with this resolution this day ed are hereby repealed, and this resolution shall be in full fOrce and effect from and after its adoption. ********** AN ORDINANCE TO PROVIDE FOR ADDING TO, IMPROVING, EXTENDING AND EQUIPPING THE EXISTING WATER AND SEWERAGE SYSTEM OF THE CITY OF SMYRNA AND TO ACQUIRE THE NECESSARY PROPERTY THEREFOR, TO PROVIDE FOR THE ISSUANCE OF WATER .AND SEWERAGE REVENuE BONDS, SERIES 1984, TO FINANCE IN WHOLE OR IN PART THE COST OF SUCH ADDITIONS, EXTENSIONS AND IMPROVEMENTS AND TO FUND IN PART A REASONABLY REQUIRED RESERVE FOR THE CITY'S REVENUE BONDS, PAYABLE SOLELY FROM THE EARNINGS OF SAID WATER AND SEWERAGE SYSTEM, AS NOW EXISTENT AND AS HEREAFTER ADDED TO, EXTENDED AND IMPROVED; TO PROVIDE FOR THE ADOPTION OF RATES AND THE COLLECTION OF FEES AND CHARGES FOR THE SERVICES AND FACILITIES OF SAID SYSTEM, TO PROVIDE FOR THE ISSUANCE UNDER CERTAIN CIRCUMSTANCES OF ADDITIONAL PARITY BONDS, TO PROVIDE FOR THE CREATION AND MAINTENANCE OF CERTAIN FUNDS, TO PROVIDE FOR THE REMEDIES OF THE OWNERS OF SAID BONDS, AND FOR OTHER PURPOSES: WHEREAS, under and by virtue of the authority of the "Revenue Bond Law" (Title 36, Chapter 82, Article 3 of the Otticial Code of Georgia Annotated, as amended) the City of smyrna. a rnmental body" as defined in said Revenue Bond Law (hereinafter sometimes referred to as "City") is authorized to re additional water and sewerage facilities by the addition thereto of improvements to its present water and sewerage system, and to acquire and construct such additions and to operate and maintain said system, as added to and extended tor its own use. and for the use of the public, and to prescribe and revise rates and collect fees and charges for the services, facilities and commodities furnished said water and sewerage system, as now existent and as hereafter added to, extended and improved, and in anticipation of the collection of revenues from such water and sewerage system, to issue revenue bonds to finance, in who.le or in part, the cost of such additions, extensions and improvements to the existing system, to estabiish a debt serVlce reserve and to pay expenses incident to accomplishing the foregoing, and WHER~AS, the City of Smyrna in order to tinance a water and sewerage system for the City has heretofore pursuant to an ordinance November 1, 1954, authorized the issuance of 1961 1962 ctual issued and delivered $900,000 princlpal amount of ion Certificates, Series and Sewerage Revenue Antic , dated Certif and the 1954 (hereinafter referred to as "Series ipal maturing on the 1st day of and amounts, as follows: 1967 1968 1969 1970 1971 1972 1973 1974 1975 Year 1976 1-977 1978 J.979 1980 .l981 1982 J.983 1984 Amount $ 37,000 $ 38,000 $ 39,000 $ 40,000 $ 42,000 $ 43,000 $ 45,000 $ 46,000 $ 48,000 , $ 28,000 S 28,000 $ 29,000 $ 30,000 S 31,000 $ 32,000 $ 3 3 , 000 S 34,000 $ 3 5 , 000 City pledged as security for the payment of said Series ordi ordi actua Certificates and any parity obligations there- issued much as to said ordinance of November 1, 1954, all and necessary of the net revenues of the water of Smyrna has heretofore pursuant to an 26, 1956, ratifying and reaffirming said 1, 1954, authorized the issuance of and delivered $150,000 principal amount of Water 1956 Anticipation Certificates, Series 1956, ed einafter referred to as "series 1956 principal maturing on the 1st day of January, in the years and amounts, as follows: i ") and Series 1954 Certif~catesr and ordinance of the 1960 to 1964, of the 1965 to 1-969, of the years 1970 to 1974, of the years 1975 to 1979, of the years 1980 to 1984, years 1985 and 1986, incJ.usive inc .lus i ve inclusive inc Lus ive inclusive $ $ d ies Certificates rank on a parity as to lien on he water and sewerage system with said revenues City of Smyrna has heretofore pursuant to an ng and reattirming said ordinances 9, J.957, ratlt 1, 1954 and March 26, 1956, authorized the issued and delivered $275,000 principal -2- Water and Sewerage Revenue Bonds, Series ~957, dated Bonds") and September 1, 1957 (hereinafter referred to as "Series 1957 yea rs and said revenues of the water and sewerage system with said Series 1954 principal maturing on the 1st day of January, in n in in in in in in in in the nts, as follows: year 1965, year 1966, r 1967, of the ars 1968 to 1971, r 197 , of the years 1973 to 1976, year 1977, year 1978, years 1979 and 1980, year 1981, year 1982, year 1983, year ~984, year 1985, inclusive, inclusive, s 1957 Bonds rank on a parity as to lien on the net and Series 1956 Certificates: and ed November 1, the is cipal t Bonds" ) the and series 23, the City of Smyrna has heretofore by an ordinance ratifying and reaffirming said ordinances of of , March 26, 1956 and July 9, 1957, authorized actual issued and delivered ~250,OOO prin- 1, 1 the and Sewerage Revenue Bonds, Series 1960, (hereinafter referred to as "Series 1960 pal maturing on the 1st of January, in as follows: the years of the years r 1968, of the years of the years of the years of the years of the years r 1983, 1984, year 1985, 1963 and 1964, 1965 to ~967, inc~usive, 1969 to 1972, inclusive, 1973 to 1975, inclusive, 6 and 1977, 8 to 1980, inClusive, 1982 and 1982, of water and sewerage system with said Series 1954 Bonds rank on a parity as to lien on the net Series 1956 Certificates and said Series 1957 Bonds: and matured and interest and series 1954 Certiricates have heretofore been paid in full as to both principal and no longer outstanding and sian having 3- been duly made with the Trust Company Bank, Atlanta, Georgia the Fund an for said Series 1956 Certificates, Series and s 1960 Bonas, for the payment of said Series fica ies 1957 Bonds and Series 1960 Bonds in with terms, said Series 1956 Certificates, Series 1960 Bonds are no longer outstanding and ordi of November 1, 1954, March 26, 1956, July 9, 1957 and May 23, 0 are null and void and of no force and effect the lien on the revenues of the water and sewerage sys under said ordinances has been fully and comp di the ot and rs that it is now necessary and essential tions, extensions and improvements to the sewerage system, and after due consideration by of the City of Smyrna, it has been deter- nditure of approximately $4,375,000, funds of the City legally available for such WHEREAS., to make further City's water and the Mayor and Ci water and sewerage system can be added to, extended, tially in accorda 1984, by ng nd equipped in accordance with, or substan- with, the Engineering Report, dated August, City's Consulting Engineers, Welker & ietta, Georgia, said Engineering Report of eers being hereinafter sometimes referred to d as fIe ng report"; and it appears that the most feasible method of funds required to finance the overall undertaking now is the issuance and sale of its water and raising t contempla sewerage bonds for that purpose; and the C~ty has made an application to the Municipal rance tion for the issuance of a Municipal Bond Guaranty Insurance policy on the Series 1984 Bonds hereinafter authorized to be issued and provision should be made to print a statement of the Series 1 e, if a policy is so issued, on the back of s; and -4- WHEREAS, upon the recommendation of the City's revenue bond underwriter, Mayor and Council of the City has determined reserve for the Series 1984 Bonds hereinafter should be partially funded, simu~tane- i and delivery of said Series 1984 Bonds, be ived from the sale of said Series 1984 ty has received and accepted the offer of Lex Jo $4,375 aut to be interest to Bonds at to finance . , Atlanta, Georgia, to purchase the Bonds hereinafter amount of Series 1984 at a price of $4,259,937.50, plus accrued delivery, and the sale of said Series 1984 will provide the City with moneys sufficient of the overall undertaking now contemplated; and the actual issuance and delivery of the ized to be issued, the City of Smyrna ract with the Trust Company Bank, Atlanta, ich the Bank will agree to act as Paying Registrar for the bonds hereinafter and to perform various functions with including, but not limited to, the authen- of this issue by the manual signature of a of the Bank, as Bond Registrar, the fer, exchange and related mechanical and well as the preparation, signing and drafts in payment of the principal of and as same become due and payable; and City of Smyrna has entered into a contract, th the Cobb County-Marietta Water referred to as "Authority") and said ly amended on February 23, 1957, pursuant ity has agreed to sell and de~iver potable the City has agreed to purchase such price and under the terms and conditions , author be regis cle of interest il contract to which t er to the pot water -5- set forth in said contract, as amended, and the cost of the water so purchased the City of Smyrna constitutes an operating charge ranking equal with the other costs of operating and maintaining the City's water and sewerage system, a duplicate ort nal of said contract, dated April 2, L952, and a duplicate original of said amendment, dated February 23, 1957, being on file and of record in the permanent records of the Mayor and Council of the Ci of Smyrna kept in the office of the Clerk of said City and said contract and amendment thereto, by this reference thereto, are incorporated herein and made a part hereof; and WHEREAS, the City of Smyrna has entered into an Agreement, dated April 13, 1971, with Cobb County (hereinafter referred to as "County") pursuant to which the County has agreed to provide sewage treatment and disposal services for the City's wastewater in accordance with and under the terms and conditions provided therein, and the cost of such sewage services constitutes an operating ranking equally with the other costs of operating and maintaining the City's water and sewerage system, a duplicate or inal of said Agreement, dated April 13, 1971, being on file and of record in the permanent records of the Mayor and Council of the City of Smyrna kept in the office of the Clerk of said City and said Agreement, by this reference thereto, is incorporated herein and made a part hereof; and WHEREAS, as additions, extensions and improvements are completed, additional demands are made for further additions, extensions and improvements and that in order to meet this situation, provision should be made for the issuance of addi- tional revenue bonds or obL1gations tor such purpose, said bonds to stand on a parity with and be of equal dignity as to lien on the net revenues of said water and sewerage system with the bonds hereinafter authorized to be issued or such bonds or obligations may be junior and subordinate to such Llen on said net revenues securing the payment of the bonds hereinafter authorized to be issued. -6- NOW, FORE, BE IT ORDAINED by the Mayor and Council of the City of Smyrna, and it is hereby ordained by authority of the same, as follows: -7- ARTICLE I AUTHORIZATION, FORM AND REGISTRATION OF BONDS Section 36, ed r the authority of the Revenue Bond Law 2, Article 3 of the Official Code of Georgia and the Charter of the City tor the s to be applied toward the cost of improving and equi ng the City's water acquiring the necessary property therefor, aI, to fund in part a reasonably required for the City's revenue bonds, and to pay to accomplishing tne roregoing, there be and authorized to be issued water and sewerage the City of Smyrna in the principal amount of solely from the special fund hereinafter as "City of Smyrna Water and Sewerage (hereinafter sometimes referred to as "Water inking Fund" or "Sinking Fund-) and all of nts and provisions of this ordinance shall proportionate benefit and security of all issued hereunder, including any parity bonds as adding and both debt re there is reve nue ewe t.he covenants, be for t 1 owners of the hereafter issued. 2. id water and sewerage revenue bonds shall be des Series ted as 1984" "Ci Smyrna Water (hereinafter sometimes and Sewerage Revenue Bonds, referred to as "Series 1984 Bonds"), sna be dated October 1, 1984, Shall be in the :torm of fully regis bonds without coupons, shall be in the denomi- nation of $5, or any integral multiple thereof, shall be numbered R-l shall be transferable to subsequent owners hereinafter provided, shall bear interest :trom date at the per forth below opposite each principal maturity, all interest shall be payable January 1, 1985 and semi-annually thereafter on the 1st days of January and July in each year and the principal mature on the 1st day of July, in the years and amounts, as 1-1 The pr Rate Year Rate $ 7.00% 1993 $ , 9.00% $ 7.25 1994 $ 180,000 9.20 $ 7.50 1995 $ 195,000 9.40 $ 7.75 1996 $ 215,000 9.60 $ 8.00 1997 $ 235,000 9.75 $ 8.25 1998 $ 255,000 9.90 8.50 1999 $ 285,000 10.00 150,000 8.75 2000 $ 310,000 10.10 2004 $1,600,uuO 10.375 of said bonds shall be payabJ.e at maturity, unless or thereto as hereinafter provided, upon present and surrender thereof at the principal corporate trust of Trust Company Bank, Atlanta, Georgia, Paying r, and payments of lnterest on the bonds or draft payable to the registered owner as sh.own on registration book of the City of Smyrna kept by the r at the close of business on the fifteenth of t month next preceding the January 1 and July 1 st and such payments shall be mailed to the tered owner at the address shown on said bond registration the pal of and interest on the bonds of this ue 11 be e in Lawful money of the United States of America. S 3. The bonds of this issue shall be executed on If of the C Smyrna by use of the facsimiLe slgnature of at by the facsimile signature of the CLerk of City a facsimile of the official seal of the ty shall be thereon and the bonds shall be authenti- cated by the signature of a duly authorized otticer of the Trust Atlanta, Georgia, as Bond Registrar. Said C.Lerk of the is hereby authorized to certity by the use of said Clerk's Ie signature as to the authenticity of a true and correct text of the legal opinion to be rendered Messrs. SU Asbill & Brennan (John H. Mobley & Associates), Bond Counsel, which opinion will be printed on the bonds of this The validation certificate to be printed on the bonds of sue Sha~L be executed by use of the tacsimile s of of the Superior Court of Cobb County and a facs of tal seal of said court shall be inted I-2 thereon. There shall be printed on the back of the Series 1984 Bonds a Statement Insurance prepared the Municipal Bond urance In case any otricer wnose slgnature shall on 11 to be such officer before s, such slgnature sha~l neverthe~ess be for all purposes the same as if such officer had rema ned in office until such delivery. The bonds of this issue, of authentication and registration, form of ass upon with or permitted and certificate of validation to be endorsed I be in substantial the following forms, omissions and insertions as may be required ordinance, to-wit: I-3 No. BOND Octo UNITED STATES OF AMERICA STATE OF GEORGIA CITY OF SMYRNA AND SEWERAGE REVENUE BOND SERIES 1984 RATE: MATURITY DATE: $ CUSIP: as t.er the City of Smyrna, a municipal ty of Cobb, State of Georgia, hereby from the special fund provided therefor, h, to or regis igns, the principal sum of i DOLLARS the United States of America, on the date ss redeemed prior thereto as hereinafter ation and surrender hereof at the princ of the Trust Company Bank, Atlanta, and Bond Registrar, and to pay to the solely from the said special fund ipal amount frOm the date hereof or from t payment date to which interest has been annum specified above, on January 1, ~985 fter on the 1st days of January and July an "Interest Payment Date"), until payment of hereof. Payments of interest on this bond ck or draft payab~e to the registered owner registration book of the City of Smyrna kept 1 in lawful regis id paid, and in e the ShaLl be as shown on the owner at the This r at the close of business on the fifteenth month next preceding each Interest Payment t payments shall be mailed to the registered s shown on the bond registration book. one of a duly authorized issue in the aggre- of $4,375,000 (hereinafter sometimes s 1984 Bonds") issued for the purpose of gate re.ferred to as 1-4 funas to be appiled toward the cost of adding to, ing and equipping the City's water and sewerage necessary property theretor, both real and part a reasonably required debt service is revenue bonds, and to pay expenses ishing the foregoing, and is issued under nue Bond Law (Title 36, Chapter 82, Article Code of Georgia Annotated, as amended) and the Smyrna, and was duly authorlzed by an and Council of the City of Smyrna adopted of October, 1984. In addition to the bonds of Ci may issue under certain terms and conditions if issued, will rank on a parity as to lien on the City's water and sewerage system with the Reference to said ordinance is hereby made ion of the fund Charged wltn, and pledged t of the principal of and the interest on the bonds ure and extent of the security for the for a statement of the rights, duties and ty, the rights of the owners of the bonds of ing extending, system, acqui to the to aut of the 3 of the Offici Charter the Ci ord i of the on the this issue, as provlded ligations the net of th for a c e to, the of this payment obiigat i f i bonds the owner hereof, The terms certain terms hereof and ail tions for all set forth This this piace. bond 1 not be valid or become obligatory any security or benefit under for any said and purpose or be ordinance until ordinance, adaitional revenue bonds or terms and conditions under which additional be issued, to ail the provisions ot wnich the acceptance of this bond, assents. provisions of this bond and definitions of in are continued on the reverse side tinued terms and provisions and detini- have the same effect as though fully itied to this bond the bond authenticated registered upon Registrar for shall be evidenced shall have been registration book kept by the Bond e, which authentication and registration the execution by the manual slgnature of a I-5 horlzed officer of the Bond Registrar of the certltlcate IN the City of Smyrna has caused this bond execut of the facsimile signature of its Mayor and Ie of ficial seal to be inted hereon and by the of the facsimile signature of its Clerk, as of the 1st October, 1984. CITY OF SMYRNA Attest: By: (S E A L) Date of Au ion and Registration: CERTIFICATE ION AND REGISTRATION is of Series 1984 Bonds described in the 1984. Bond Registrar By: cer ******** VALIDATION CERTIFICATE OF GEORGIA COBB rs lerk of the Superior Court of Cobb County, of DOES CERTIFY that this bond was validated and firmed by judgment of the Superior Court of Cobb on __ day of L984, and that no intervention or objection was filed in the proceedings validating same and that no appeal from sald judgment of vaLloation has been taken. facsimile signature and seal of the Superior Court of Cobb County, Georgia. (S E A L) *********** I-6 SHALL BE PRINTED ON THE BACK OF THE BONDS] This bond is ransferable only upon the bond registration book kept for rpose at the principal corporate trust the Registrar by the registered owner hereof in by duly authorized in writing, upon the and ation to the Bond Registrar of this bond du~y e for nsfer or accompanled by an assignment du executed the tered owner or attorney du authorized in writing and hereupon a new registered bond, in the same amount and of the same maturity shall be feree in exchange therefor. 4 Bonds are issuable in the form of regis- denomination of $5,000 or any integral and are exchangeable at the principal corporate Bond Registrar in the manner, subJect to the payment of charges, if any, provided in said iss to The tered bonds in multiple the trust or:t ice ions and nance. Said scribing revi provides, among other things, for pre- ng rates and COlLecting fees and charges for es and commodities furnished by the water as now existent ahd as hereafter added to, equipped, to the extent necessary to Clent to pay the reasonable and necessary maintaining said system, including the ctual obligations incurred pertaining into a special fund designated "City of System Sinking Fund" the amounts ncipal of and the interest on the bonds other bonds hereafter issued on a parity become due and payable, either at maturity mandatory tion, and to create and therein for that purpose, as well as to a reserve :tor extensions and ovements to the services, and sewerage costs of operat payment of any con thereto, and to Smyrna Water required to this issue therewith as the or by procee maintain a reserve create and maintain the system. I-7 This sna~l not be deemed to constitute a debt of the a pledge of the faith and credit of said City be subject to any peCunlary .LlabLLity 11 not payable from, nor a charge upon, the revenues pledged to the payment hereof, from the special fund provided therefor of said system, including all future additions moneys deposited therein. No owner of have the rlght to compel the exercise of the City to pay the same, or the interest payment hereof against any other property shall this bond constitute a charge, lien or or equitable, upon any other property of the revenues pledged to the payment hereof. this issue may be redeemed prior to their ties, either in whole or in part, at the option any interest payment date in any year not 1, 1995 from any moneys available for such said ordinance by payment of the princi- accrued interest thereon to date of of nor is the thereto t s the t n, of the en City other The ive amount a prem of 2% of such principal part., or prior to January 1, 1996, 1 1/2% of lf redeemed thereafter and on or prior to 1% of such principal amount if redeemed or prior to January 1, 1998: 1/2 of 1% of such if thereafter and on or prior to par without a premium if redeemed maturity. If the bonds are called in so cal~ed for redemption shall be called in ir maturities and if less than a full by lot in such manner as may be designated by the Bond ry 1, eafter principa ry 1, fter istrar. In are subJect Series 1984 Bonds maturing July 1, 2004 redemption prior to maturity in provisions of said ordinance, in part, by I-8 nce lot in such manner as may be designated by the Bond Registrar at par plus accrued interest to the redemption date, in the fo 11 owi ng pr amounts on July 1, in the years, as fo~lows: $ Year 2002 Amount $ 380,000 Year 2003 $ o ce ing the bonds (or the portion of the prin- c 1 amount of bonds) to be acquired by redemption, as aforesaid, sha~l be mai~ed, postage prepa1d, to a~l registered owners of bonds to be redeemed in whole or in part at the ich in the bond registration book at least thi prior to the redemption date, but failure so to mail any such notice s 1 not affect the validity of the proceedings for such or cause the interest to accrue on the principal of the bondS so des1gnated tor ion after the redempti To the extent and in the manner permitted by said ordi- cations, alterations, amendments, additions and s sions of the ordinance, or of any ordi- al thereto or of the bonds, may be made by the City with the of the owners of at least sixty-five per centum (65%) in te princ1pal amount of the bonds then outst inc any parity obligations therewith then sta and hout the necessity for notation hereon of reference thereto. This bond is ssued with the intent that the laws of the state of Georgia s govern its construction. case of It, the owner of this bond shall be entit~ed to the ies prov1ded in said ordinance authorizing its issuance and in said Revenue Bond Law and any amendments It is hereby recited and certified that all acts, condi- and things required to be done precedent to and in the issuance of this Water and Sewerage Revenue Bond have been done, have happened and have been performed in due and legal form as I-9 red by Law, and that provision has been made tor the aLlo- ion from the anticipated revenues of the water and sewerage system, as now stent and as hereafter added to, extended, and of amounts sufficient to pay the princi- of and rest on all of said bonds as same mature, or acquired tory redemption, and to create and maintain a reserve for purpose, and that sa1d revenues are i allocated and pledged to the payment of said bonds and the interest thereon. ******** ASSIGNMENT FOR IVED the unders ned hereby sells, ass ns and transfers the within bond and all thereunder, hereby constituting and appointing ____ ey tra this bond on the bond registration book kept for such pu the Bond Registrar, with full power of substitution in the premises. t ee s gna ure to nt must corres- pond wit the name as it appears upon the face of the within bond in every parti- cular, without alteration or enlargement or any change whatever I-IO Section 4. On those bonds which shall have endorsed a certl~~cate of authentlcation and registration substan- tially in the hereinbefore set forth, duly executed by the manual si of an authorlzed otticer of the Trust Company 8ank, as strar, shall be entitled to any benefit or ty ordinance and such certificate upon any of ly executed shall be conclusive evidence that duly authenticated, registered and delivered. be necessary that the same officer of the Rand ign the certificate of authentication and registration o~ the that may be issued hereunder at anyone time. person name any bond sha~~ be registered sha~l be deemed and as the absolute owner thereof for all purposes and payment of the principal amount, interest and if 11 be made only to or upon the order of the thereof. A~l such payments sha~l be va~ld and and discharge the liability upon such bond, premium, if any, and the interest thereon to said bonds such bond It shal of the Section 5. ion for t Sums so paid. Bond Registrar shall keep the bond regis- registration of the bonds of this issue and transfers of the bonds as herein r of any bond shall be registered upon the upon the surrender and presentation of the rar duly endorsed for transter or accom- nt du executed by the registered owner or writing in such form as shall be satisfac- Registrar. Upon any such registration of Registrar shall authenticate and deliver in bond bond The stration the panied an attorney tory to t trans fer, the exchange for such bond or bonds so surrendered, bonds registered in name of the transferee, of or denominations ized by this ordinance, a new bond or any denomination and in an aggre- gate princ the bonds so equal to the aggregate principal amount of and of the same maturity. I 11 matur Section 6. Any bond of this issue, upon presentation and surrender thereof to the Bond Registrar, together with an assign- ment du~y exe the registered owner or duly authorized at in such as may be satisfactory to the Bond Re , may be exchanged, at the option of the registered an principal amount of bonds of the same equal to the principal amount of the bond so surrendered authori denomination or denominations. The Bond and of Regi may make a charge tor every exchange or registration the bonds sufficient to reimburse it for any tax or rge required to be pald with respect to stration of transfer, but no other charge of t ot such or shall be made to the owner of bonds under this ordinance. Section 7. If any bond shall become mutilated, the Bond in its scretion and at the expense of the owner of shall icate and deliver a new bond of like tenor red in the name of' the owner in exchange and substitution such mutilated bond. If any bond shall become lost, des- troyed or wrongf'ul taken, evidence of such loss, destruction or wrongful taking n a reasonable time thereafter may be sub- mitted to the Ci and lf such eVldence sha~l be satisfactory and i a er and in an amount satisfactory shall be ven, then the C new bond of like authenticated at the expense of tne owner sha~l cause a tenor registered in the name of the owner to be the Bond Registrar and delivered to the registered owner. section 8. provisions for The City shall make all necessary and proper nsfer and exchange of the Series 1984 Bonds by Bond Registrar and the City shall deliver or cause to be to the Bond Registrar a sufficient quantity of biank bonds duly executed on behalf of the City, together with the certificate of validation pertaining thereto duly executed by the Clerk of the Court of Cobb County, as herein provided in order that istrar sha~~ at all times be able to register and cate the bonds of this issue at the earliest I-12 practicable time in accordance with the provisions of this ordinance. All bonas surrendered in any such exchange or regis- tration of transfer shall be forthwith cancelled by the Bond Reg and a record thereof du entered in the permanent pertaining to the Series 1984 Bonds maintained by the Bond istrar. Section 9. The Mayor and C~erk of the City of Smyrna are authorized and directed to execute, for and on behalf of here the Ci Smyrna, a certification, based upon facts, estimates and cir s, as to the reasonable expectations regarding the amount, ture and use of the proceeds derived from the sa~e of the 1984 Bonas, as we~~ as such other documents as may be neces delivery of or desirable in connection with the issuance and id Series 1984 Bonds. I-13 ARTICLE II REDEMPTION OF BONDS BEFORE MATURITY Section bonds issued hereunder may be redeemed at the City in part on any interest payment date in than July 1, 1995, from moneys in the "Ci ty Smyrna Wa Sewerage System Sinking Fund" not required far paying t ipal of and lnterest on the bands coming due, at ity or by proceedings far mandatory redemp- tion, in then current sinking fund year and the maintenance tare in an amount equal to the maximum debt se requirement coming due in any succeeding sinKing fund year an Ser 1984 Bonds, or in whole on any interest payment date n any year not earlier than July 1, 1995, from any moneys which available for such purpose and deposited the t Bank on or before tne date tlxed tor i The iona1 redemption of the bonds shall be made he of the principal amount of the bonds to be and interest thereon to date of redemption, toget her wi amount if one-half a urn of two per centum (2%) of such principal on or prior to January 1, 1996; and one and (1 l/L~) of such principal amount if and on or prior to January 1, 1997; one per principal amount if redeemed thereafter and ce centum (1%) on or prior to January (1/2%) of such 1 , 1998; one-half of one per centum amount if redeemed thereafter and on or 1999 and at par without a premium if and before maturity. If the bonds are in part, then any bonds so called for shall be called in inverse order of their maturities if less than a 11 maturity by lot in such manner as may be designated by the Bond Registrar. In addition, the Series 1984 Bonds maturing on July 1, 2004 are subject to tory redemption prior to maturity on July 1, 2001 and on ing July 1 to and including July 1, 2003, in part, by lot in such manner as may be deslgnated by the prior Janu r the cal for II-I istrar, at par plus accrued interest to the redemption in the following principal amounts on July 1, in the as fol $ Amount S 380,000 Amount $ 415,000 If less all of the bonas of a single maturity are to be redeemed, Registrar shall treat any bond of such maturity in a denomination of greater than $5,000 as two or more bonds in the denomination of $5,000 each and Sha asslgn separate numbers to each for the purpose of de s or the principal amount of such bonds in a nation r than $5,000 to be redeemed by lot. With respect to called for partial redemption, the regis- tered owner shall surrender such bond to the Bond Registrar in for one or more bonds in any authorized nation in the aggregate princlpal amount equal to the inc amount of such bond so surrendered. The shall furnish the City on or before the fi (45 next preceding each mandatory redemption date (or option ion date if such option is exercised by the City) with certificate setting forth the bonds that have been seJ_ected. tory ion (or optional redemption) ei r or in part on such date. (30) days before any date upon wnich any such optional ion is to be made a notice of intention so t_o redeem s i Mayor and attested by the Clerk of the City ing the redemption date and the bonds to be (in or in part) shall be filed at the place at which princ and interest on the bonds shall be and iled, postage prepaid, to all registered of be redeemed (in whole or in part) at addresses whi r upon the bond registration book. At leas (30 ) before the date upon which such mandatory is to be made a notice of such mandatory II-2 ion signed by a duly authorlzed o~ticer of the Bond istrar des ting the bonds to be redeemed (in whole or in part) shall be led at the p~ace at wnich the princlpal of and int on the s shall be payable and shall be mailed, id, to all registered owners of bonds to be or in part) at addresses which appear upon the bond reg ion book. It is provided, however, that the failure so to mail any such notice of optional redemption or mandatory redemp- tion of the Series 1984 Bonds shall not affect the validity of the proceedings such ion or cause the interest to continue to designated for on the principal amount of such bonds so ion after the redemption date. However, it is expressly understood and agreed that should the City here r e~ect to issue any parity bonds, as herein authorized, it shall have the right to redeem the bonds of any future issue or issues before it redeems the bonds of this issue or it may redeem the bonds of this issue before it redeems the bonds of any such future issue or issues, or it may redeem some of the bonds of this issue and some of the bonds of any such future issue or issues at tne same time, provlded that within each issue, if the bonds are redeemed in part, such ion as to said bonds shall be in the inverse order of their maturities and if less than a full maturity by lot in such manner as may be designated by the Bond Registrar. Section 2. Nothing herein contained shall be construed to limit the right of the City to purChase with any excess moneys, as hereinabove de in the Sinking Fund and for sinking fund purposes, the bonds of this issue in tne open market at a prj_ce not ing the callable price hereinabove set forth. Section 3. Notice having been given in the manner and under the conditions hereinabove provided, the bands sa desig- nated far redemption or the portion of the bonds so designated for partial ion shall, on the redemption date designated 11-3 in such notice, become and be due and payable at the redemption price hereinabove specified, and from and after the date of so ated, unless default shall be made in the of the so designated for redemption or the portion bonds so des ted for partial redemption, interest on principal amount of said bonds so designated for redemption shall cease to accrue on the redemption date. II-4 interest so received shall be deposited Smyrna Water and Sewerage System Sinking Fund" in Article IV hereof and credited to the designated as "Debt Service Account" to be used 1 toward the payment of interest on the Series 1984 The City Section 1. es 1984 r the shall be made, said Bonds, to ( a) The ance um on the fee of party. ( b ) The into the "Ci inafter ARTICLE III AND APPLICATION OF PROCEEDS OF BONDS s: From the proceeds derived from the sale of the including accrued interest, which are issued of this ordinance, the following payments Itaneously with the issuance and delivery of extent and in the manner herein set forth: te sum of $81,300 representing the insur- Municipal Band Guaranty Insurance Policy and & Poor shall be paid to the respective due an January 1, 1985. (c) $375, Water and Sewe Article IV s "Debt ice requi se shall be deposited into the "City of Smyrna tem sinking Fund" hereinafter created in and credited to the special account des ted Reserve Account" to fund in part a reasonably ce reserve far the Series 1984 Bands. (d) The balance of the proceeds sa received, and any other funds acquired such purpose by gift, donation, grant or otherwise, s deposited into the special fund which is hereby created nated "City of Smyrna Water and Sewerage Canst Fund, 1984" (hereinafter sometimes referred tion Fund"). The additions, extensions and improvements rage system now contemplated shall be accordance, or substantially in accordance. t, dated August, 1984, prepared by the ineers, Welker & Associates, Inc.. Said Engineering Report (herein sometimes ineering report") is hereby approved and to as the ion t water and accomplished the Engineer in C 's Consu Marietta, referred to as to with 111-1 rat the Clerk be and is hereby authorized and directed forthwith duly record a copy of said engineering report in the Minute the Mayor and Council of the City of Smyrna, said Minute ing kept in the orrice of said C~erk and said neering by this reference thereto, is incorporated herein and a part hereof. Sect The moneys in the Construction Fund shall be held by the ry and withdrawn and app~led in accordance with, or ly in accordance with, said engineering report the provisions and restrictions set forth in s Article the City will not cause or permit to be paid from the ruction Fund any sums except in accordance with, or in accordance with, said engineering report and i with such provisions and restrictions; ided, that any moneys in said fund not presently for of current ob~lgations during the course , as properly certified by the City's Consulting eers 1 be invested in securities, maturing within (3) years the date of purchase, as follows: (a) any bonds or other tions of the United States of America, as to and interest, constitute direct of United States of America, or any obiigations ions of the United States of America fully guaranteed as (b) obI ti payment by the United States of America; the Federal Land Bank; (c) obligations of the (d) obligations of the Federal nk; (e) obligations of the Central Bank certificates of deposit of national or in the State of Georgia which have the Federal Deposit Insurance Corporation the certificates of deposit of any bank custodian or trustee for any proceeds of ); provided, however, that the portion of deposit in excess of the amount insured by shall be secured by deposit with the Federal Fe Home iate for Cooperat state banks deposits i "FDIC") (incl acting as the Series such cert the FDIC, if III-2 Bank of Atlanta, Georgia, or with any national or state located within the state of Georgia, of any of the obligations amount and in (a) through (e) above, in a principal a marKet vaiue exciusive of accrued interest always at least equal to such excess. Any such securities so purchased shall be held by the Depository for the account of the Construction until maturity or until sold, and at maturity or upon such sale, the proceeds received therefrom, including interest i premium, if any, shall be immediately deposi by it in sald Construction Fund and shall be disbursed in the manner and for the purposes hereinafter set forth. All moneys in and ail securities held for the Construction Fund shall be subject to a lien and charge in favor of the owners of the Series 1 Bonds issued hereunder and shall be held for the security of owners until paid out as hereinafter provided. Section 4. Withdrawals from the Construction Fund may be for purpose of paying the cost of the undertaking herein lated, including the purchase of such property and equipment as may be useful in connection therewith, and without intending t to limit or restrict or to extend any definition of such cost contained in the Revenue Bond Law, as as it may hereafter be amended, shall inc 1 ude: ( a) rest ng upon the Series 1984 Bonds prior to the commen of and completion of tne undertaking herein contemplated and for six (6) months after the date of completion of the and the reasonable fees of the Paying Agent for the of such interest~ (b) The cost of indemnity and fidelity either to secure deposits in the Construction Fund or to the faithful completion of any contract pertaining to sald improvements~ (c) Any taxes or any charges lawfully levied or assessed against the undertaking; Cd) Fees and expenses of Consulting Engineers for engineering studles, surveys and estimates, and the preparation of plans and III-3 ising the construction; (e) Legal expenses and fees, 1 agent's expenses and fees, costs of audits and of ring and i the bonds and a~l other items of expense not in is Section specified incident to said (f) Payments made for labor, contractors, builders and ialmen connection with the improvements contemplated by t un de and payment for machinery and equ nt and for the restoration of property damaged or destroyed in connec- tion therewith; (g) The cost of acquiring by purchase, and the amount o~ any award or final judgment in any proceeding to re by condemnation, lands and rights of way necessary for the and appurtenances in connection therewith, and options and s thereon, and any easements or rights or any inc to or resulting from the making of such nts; (h) To repay any advances or loans made tor the purpose of paying any of the aforementioned costs prior to receipt the proceeas of the Serles 1984 Bonds. Section 5. All payments from the Construction Fund shall made upon signed by the officers of the City properly authorized to s in its behalf, but before they shall sign any such cnecks there shall be filed with the Depository: (a) A isition such payment (the above mentioned checks may be a ition for the purpose of this Section), stating each amount to be paid and the name of the person, firm or corporation to whom payment thereof is due; and (b) A certifi- cate att the requisition and certifying: 1. That an obligation in stated amount has been incurred, and that the same is a not been pa obligation in charge against the Construction Fund and has specifying the purpose and circumstances of such Ie detail and to whom such obligation is owed, accompanlea by tne bl~l or statement of account tor such obligation, or a copy thereof; 2. That they have no notice of any vendor's, mechanic's or other liens or rights to liens, chattel conditional sales contracts or any security 111-4 t, which should be satisfled or discharged before such nt is made, and 3. That such requisition contains no item sent account or any retained percentages which ity is; at the date of such certificates, entitled to ret (c) No isition for payment shall be made until the Ci been d with proper certificate of the Engineers that insofar as such obligation was incurred for work, materials, supplies or equipment in connection with the undertaking, such work was actually of the work for No certi City to make pursuant to (h} of 5e is rials, supplies or equ nt were actually the construction or delivered at the site purpose. of said Engineers shall be required for the s for the costs and expenses incurred s (a) through (e) and paragraphs (g) and 4 of this Article and not subject to the said Engineers. pe insta or such in or 5 6. assure That the City will do all things, and take all nt measures, necessary to effect the prompt ruction and to expend the moneys deposited Fund as expeditiously as possible in order ion of the ect, in accordance or in accordance with sald engineering report, on the reasonable and commencement of in the Construct t earliest practicable date following the issuance and delivery of the bonds of ue, and will indemnlfy itself against the usual hazards to the construction of an undertaking of this type, and in any way limiting the generality of the above, agrees subcon in amounts contracts and material aris each const all times adequate require each construction contractor, and furnish a bond, or bonds, of such type and to assure the faithful performance of their payment of all bl1~s and claims for labor and virtue of such contract; and (b) require ctor or the subcontractor to maintain at tion and acceptance of the undertaking ion insurance tor all of their employees and III-5 ppblic liability and property insurance for the and complete ction of the Ci from any and all claims ter wh may arise by virtue of the contracts, whether such operations be by or anyone directly or indirectly for them, or ir requisitions and certificates required by be retained either by the Depository or by ect at all times to inspection by any officer of Consulting Engineers and the duly authorized ive of original purchasers of the bonds issued this the Ci the her r. Section em Shall a certi the additions and improvements to the compl.eted, such :tact shall be ev:idenced the Consulting Engineers stating the date and should there then be any balance in the h balance, unless otherwise provided, he City of Smyrna Water and Sewerage System in Article IV hereof. sinking Fund 111-6 A.RTICLE IV REVENUES AND FUNDS ity covenants and agrees: 1. water and sewerage system is now being and wi inue to rated on a fiscal year basis commencing on 1st in each year and extending through the 30th day of the next year, but it reserves the right to change its fiscal year by adoption of proper proceedings to that effec ion 2. 1984 Bonds are actual ncing with the month in which the Series issued and delivered, all revenues arising sewerage existent be colle sys and rship and operation of the water and and propertles in connection therewith as then reafter added to, extended and improved shall the City or by its agents or employees and with the depository to the credit of a from ich is hereby created and and sewerage System Revenue to as "Revenue Fund") designated as "City Fund" (hereinafter and the City shall of sometimes re continue to mai said Revenue Fund separate and apart from its other funds so long as the series 1984 Bonds herein i issued and any future issue or issues of parity bonds t ter issued are outstanding and unpaid or until shall have been duly made for the payment thereof. Sa revenues shall be disbursed from the Revenue Fund to the extent and in the following manner and order: 1. shall first be paid from said Revenue F e and necessary costs of operating, repairing the water and sewerage system, s, wages, the payment of any contractual ~ncurred pertaining to the operation of said cost of materials and supplies, rentals of leased i uding obligat system, prope and or personal, insurance premiums, audit fees charges as may properly be made for the ing, maintaining and repairing said IV-I system in accordance with sound business practice, but before making provision for depreciation. 2. There shall next be paid from said Revenue Fund i the special fund which is hereby created and des as "City of Smyrna Water and Sewerage System Sinking (herein sometimes re:terred to as "Water and Sewe Sink system Sinking Fund" shall consist of or "Sinking Fund"), and said two accounts which are to be held therein, one of which is hereby created and des gnated as "Debt Service Account" and the other is hereby created and designated as "Debt service Reserve Account" (hereinafter sometimes referred to as "Reserve .Account" ) . After there have been paid from the Revenue the sums required or permitted to be paid pur- suant to the provisions of Paragraph 1 above, there shall be paid into said Debt Service Account for the purpose of paying the principal of and interest on the Series 1984 Bonds as same become due and payable, either maturity or by proceedings for mandatory in the then current sinking fund year, c with the month of October, 1984 and from month to h thereafter to June, 1985, inclusive, an amount equal to one-ninth (1/9) of the debt service coming due in the sinking fund year ending 1985 and commencing with the month of July, continuing from month to month thereafter an 1 to one-twelfth (1/12) of the maximum ice requirement on the Series 1984 Bonds July 1, 1985 debt coming due in the then current or any future sinking fund year, such monthly payments to continue from month to month until sufficient funds are on hand in said Sinking Fund to pay all of the outstanding 1 Bonds as same mature or are acquired by mandatory redemption and the interest which will IV-2 become due and payable thereon. Such monthly payments into the Debt Service Account shall be sufficient to provide funds required tor the mandatory redemption of the Series 1984 Bonds on July 1, in the principal amounts and in the years, as fol $ Year 2003 Amount $ 415,000 $ (b) After making the payments required to comply with subparagraph (a) above, there shall next be paid into said Debt Service Reserve Account, commencing with the month of October, 1984, in sub- ially equal monthly payments, taking into tion the amount deposited therein simul- taneously with the issuance and delivery of said Se~ies 1984 Bonds, amounts sufficient to create in Reserve Account by October 1, 1989 a debt service reserve equal to the maximum debt service requirement coming due in any succeeding sinking fund year on the Series 1984 Bonds. When the balance in the Reserve Account shail be equal to the maximum requi no further payments shall be required to be into the Reserve Account uniess the Reserve t shall fall below its required balance. the period of accumulation and after the rve Account shall have been accumulated in the full amount required to be maintained therein as it shall be maintained for the purpose of paying principal of and interest on the Series 1 4 s falling due in any year as to which chere would rwise be a detault and if money is taken from said Reserve Account for the payment of such principal and interest, the money so taken sha~l be said Reserve Account from the first in the Revenue Fund thereafter available and ired to be used for maintenance and operation IV-3 charges and not Serv ount required to be paid into the Debt as hereinabove provided in subpa ( a) . (c) All sums required to be paid to with the provisions of subparagraphs (a) and (b) above shall paid on or before the last day of the month in whi the payment is due, and if, in any month, for any reason, the full amount herein required to be paid in such month shall not be paid into the sinking Fund, any deficiency shall be added to and shall become a part of the amount required to be paid into the said Sinking Fund in the next succeeding month; provided, however, the City covenants and agrees that in event it hereafter elects to issue parity pursuant to the provisions of this ordinance, the above stated payments into the sinking Fund will be increased to the extent necessary to pay the ined debt service requirements on the Series 1984 Bonds on any parity bonds therewith then out- standi and on the bonds proposed to be issued coming due in the then current sinking fund year and create and maintain within five (5) years from the of bonds to be issued a reserve for that e in an amount at least equal to the maximum debt service requirement coming due in any succeeding sinking fund year on the then outstanding Series 1984 Bonds, any outstanding parity bonds and on the bonds to be issued. It is expressly provided, however, that if on the 2nd day of July in any year there are on deposit in said Sinking Fund moneys and securities (such securities to be valued at the lower of their market value or face amount, plus accrued interest thereon the aggregate amount of which is in of amount then required to be on deposit in said S~nking Fund, such excess snaIl be withdrawn IV-4 from sinking Fund and immediately deposited into the Revenue Fund. The calculation and determination of excess amounts in accordance with this ision shall be the responsibility of the chief fiscal ficer of the City and such fiscal officer shall not~fy the sinking Fund Custodian and make or cause to be made any transfer of funds required pu to the provisions of this subparagr revenues remaining in the Revenue Fund after the of sums required or permitted to be paid under is of the preceding parag 1 of this 2 hereby pledged to the payment of the princi- pal of and interest on the Series 1984 Bonds issued he any future parity bonds issued under the provi of this ordinance. Said revenues so pledged shall ly be subJect to the llen of tnis pledge wi ical delivery thereof or further act and the l1en s pledge shaJ_l be valld and binaing against it and all parties having claims of any kind nst her such claims shall have arisen in contract, not or otherwise and irrespective of whether or es have notice hereof. 3. r there have been paid from the Revenue Fund e h the sums required or permitted to be d r the provisions of Paragraphs 1 and 2 of this section and ter reserving in the Revenue Fund as a working month's 1 reserve an amount not to exceed one ed costs of operating and maintaining the system as ined by the chief fiscal officer of the city, then shall next be paid at the end of each month into a ial fund which is hereby created and designated as "City of Smyrna Water and Sewerage system Renewal Extension Fund" (hereinafter sometimes Renewal and Extension Fund"), all moneys remaining id Revenue Fund. Expenditures shall be IV-5 made from said Renewal and Extension Fund only tor the purpose of: (a) Effecting the transfer of moneys to the Ci 's general und to be used for any lawful corporate (b) In case of an emergency having a major effect upon the water and sewerage system caused by some extraordi occurrence which makes it necessary to use the funds of the said system for the alleviation or removal of such effects and an insufficiency of money exists in the Revenue Fund to meet such emergency; (c) Mak replacements, additions, extensions and nts and acquiring equipment deemed to be reasonable and to the best interest of the City and the bondholders; (d) Payment of the charges of the Depository for i services; or (e) Paying principal of and inte any revenue bonds then outstanding and falling due at any time for the payment of which money is not available in the sinking fund securing the payment of same and the interest thereon. It is expressly provided, however, that should bonds be hereafter issued ranking as to lien on the revenues of said system junior and subordinate to the lien securing the payment of the Series 1984 Bonds authorized to be is hereunder, including any issue or issues of parity bonds therewith hereafter issued, then such payments into the Renewal and Extension Fund as provided in parag 3 of this Section may be suspended and such moneys shall be available to the extent necessary to pay the principal of and interest on such junior lien bonds and to create and maintain a reasonable reserve therefor and such moneys may be allocated and pledged for that purpose. Section 3. That the City has placed into effect a schedule of rates, fees and charges for the services, facilities and commodities furnished by the water and sewerage system and as often as it shall appear necessary the city shall revise and adjust such Ie of rates, fees and charges for either water IV-6 services and facilities, or both, to tne extent sary to produce funds sufficient to operate and maintain water and sewerage system on a sound business like basis and to te and maintain the Sinking Fund as herein provided sufficient to discharge the payment of the principal the interest on the Series 1984 Bonds and any future issues as the same become due and payable in the then current sinking fund year, either at maturity or by proceedings redemption, and to create and maintain a reserve in of parity for ma therefor as may or is the amount as required herein or such larger amounts required in any proceedings authorizing any such issue parity bonds, as well as to create and maintain a reserve for rates, fees ments, shall ions and improvements to the system. Such charges, in addition to the foregoing require- maintained at such level so as to produce net revenues payment of the reasonable and necessary costs of operating maintaining said system, but before provision tor ciation) equal to at least one and two-tenths (1.2) times the amount required to be paid into the sinking Fund in the then current sinking fund year as herein provided, or such larger amount as may be required in any proceedings authorizing the ssuanceof parity bonds with the Series 1984 Bonds. In the that time the net revenues are not being maintained at such level, the governing body of the City shall revise its ~e of rates, tees and charges to the extent necessary to e net revenues at least equal to said 1.2 times requi The t. fees and charges shall be classified in a r to cover users of the services and faci~ities reasonable furnished by system so that as near as practicable such rates, fees and charges sha~~ be unitorm in app~lcation to all users falling within any reasonable class. No free services sha~l at any time be furnished trom the system and it will undertake wi n its health powers or such other applicable powers now or r provided by law, to require the owners IV-7 property abutting any water line or sewerage ne to connect with the system. No customer shall be connected to the served by the City without a proper meter having first installed. All services shall be furnished in s now or hereafter established, including to any County, municipal corporation or other services furni public board or In the event the City shall fail to t a schedule or schedules of rates, of of this defau fees and charges, or to revise its schedule fees and charges, in accordance with the Section, any bondholder without regard to as defined in Article VII of this or whether ordinance, shall have occurred, may institute and prosecute in any court of competent jurisdiction, an appropriate action to compel the to adopt a scheduLe or scheduLes of rates, fees and charges, or to revise its schedule or schedules of rates, fees and charges in accordance with the requirements of this Section. Section 4. All transfers from the Revenue Fund and all payments from said Revenue Fund shall be made by checks signed the proper officers of the City duly authorized for such purpose. 5. That the Slnking Fund herein provided shall be as a trust account in a bank separate from other deposits of the said bank to be designated as "Sinking Fund Custodlan-, and is hereinafter named in Article V hereof and it shall with all of the applicable provisions of this ordinance. Section 6. Subject to the terms and conditions set forth in ordi ce, moneys in the Sinking Fund sha~l be disbursed for (a) the payment of the interest on the bonds secured hereby as such interest becomes due and payable; (b) the payment of the principal of the bonds secured hereby as same becomes due and e, either at maturity or proceedings for mandatory ion; the optional redemption of bonds secured hereby IV-8 any, Fa maturity at the price and under the conditions provlded in Article II hereof; (d) the purchase of bonds in the ded, however, the price paid shall not exceed call price; (e) the transfer of excess moneys, if Sinking Fund (as defined in subparagraph (cl of 2 of ion 2 of this Article IV) to the Revenue the t of s for paying the bonds and and the charges for the registration of the and their transfer or exchange in accor- terms thereof; and (g) the payment of any charges the Fund; f) interest bonds dance for i the in t i red to in any year the govern de Serv ice s. in Sinking Fund not immediately required to pay due on January 1, and not immediately principal and interest falling due on Ju I I be invested upon passage of a resolution of body to that effect and proper evidence of same to the Custodlan, in the following securities n seven (7) years from date of purchase or the e of the Series 1984 Bonds or any additional th whichever is earlier: (a) any bonds or the United States of America, which as to t, constitute direct obligations of the of Amer a, or any obligations of subsidiary of the United States of America fully guaranteed as the United States of America; (b) obligations of (cl obligations of the Federal Home Loan of the Federal Intermediate Credit Bank; Central Bank for Cooperatives; (fl final parity s ed ions to payment Bank; (d) (e) obI gat certif of it of national or state banks located State of Georgia which have deposits insured by the ral Deposit Insurance Corporation ("FDIC") (inc.luding the certificates of deposit of any bank acting as depository, custodian or trustee pursuant to this ordinance; provlded, that the ion of such certificates of deposit in excess of the amount insured by the FDIC, if any, shall be IV-9 cured by deposit with the Federal Reserve Bank of Atianta, or with any national or state bank located within the Georgia, of any of the obligations included in (a) above, in a principal amount and with a market value exclusive of accrued interest always at least equal to such excess. Any such securities so purchased shall be held by the Sinking Fund Cus ian in trust until paid at maturity or sold, and all income or increments therefrom shall be immediately ited to the credit of said sinking Fund. The moneys in the Sinki and all securities held in and for said Sinking Fund, all income and increments therefrom are hereby piedged to and charged with the payments mentioned in this Section. Section 7. Moneys in the Renewal and Extension Fund, not immediate for the purposes set forth in Paragraph 3 of Section 2 of this Article shall be invested upon passage of a resolution of the governing to that effect and proper ev of same being delivered to the Depository in the fol ng securities: (a) any bonds or other obligations of the United States of America, which as to principal and interest, constitute direct obligations of the united States of America, or any obligations of subsidiary corporations of the United States of ca fully guaranteed as to payment by the United of ica; (b) obligations of the Federal Land Bank; (c) obligations of the Federal Home Loan Bank; (d) obligations of the Federal Intermediate Credit Bank; (e) obllgations of the Central Bank for Cooperatives; (f) certificates of it of national or state banks located within the State of Georgia which have its insured by the Federal Deposit Insurance Corporation ("FDIC") (including the certificates of deposit of any acting as depository, custodian or trustee pursuant to this ordinance; provided, however, that the portion of such certificates of deposit in excess of the amount insured by the FDIC, if any, shail be secured by deposit with the Federal Reserve Bank of Atlanta, Georgia, or with any national or state bank located within the State of Georgia, of any of the obliga- IV-IO included in (a) through (e) above, in a principal amount and with a market value exclusive of accrued interest always at least equa~ to such excess. Any such securities so purchased shall be Id the Depository of the Renewal and Extension Fund trust until paid at maturity or sold, and all income or increments therefrom shall be immediately deposited the credit of said fund. The moneys in the Renewal and Extension Fund and all securities held in and for said Renewal and Extension Fund, and all income and increments therefrom are hereby pledged in Paragraph 3 of to and charged with the payments set forth Section 2 of this Article. Section 8. That no other bonds or obligations of any kind or nature will hereafter be issued which are payabLe trom or enjoy a lien on the revenues of the water and sewerage system prior to the ien created for the payment of the Series 1984 and future issue or issues of parity bonds herein z to be issued. Nothing contained herein, however, icts the issuance of additional bonds or obligations from time to time payable from the net revenues of said system and secured by a lien on said revenues junior and subordinate to the lien herein created. It is expressly provided however, that additional revenue or obligations may be issued, from time to time, ranking to lien on the revenues of the system on a parity with the Series 19 Bonds herein authorized to be issued, provided all of the following conditions are met: (a) The payments covenanted to be made into the "City of Smyrna Water and Sewerage System Sinking Fund" created Paragraph 2 of Section 2 of this ArticLe, as the same have been enlarged and extended in any proceedings authorizing the issuance of any additional parity bonds, must be currently being made in full amount as required and said "Debt Service Account" and "Debt Service must be Account" held within said Sinking Fund their proper respective balances. IV-II (b) The net earnings of the system for a period of twelve (12) consecutive months out of the eighteen (18) consecu months preceding the month of adoption of the edi authorlzing the issuance of such additional bonds must have been equal to at least one and twenty- hundredths .20) times the maximum debt service require- ment for any succeeding sinking fund year on the series 1984 Bonds and any other issue or issues of parity bonds therewith then outstanding and on the bonds proposed to be issued, or in lieu of the foregoing :tormu1-a, if a new Ie of rates and charges for the services, facilities and commodities furnished by the system shaLL have been adopted an independent and recognized firm of Certi Public Accountants shall certify that had this new schedule been in effect during the period descr above the net earnings of the system would have been equal to at least one and twenty-hundredths (1.20) t the maximum debt service requirement tor any succeeding sinking fund year on the Series 1984 Bonds and any ity bonds therewith then outstanding and on the bonds to be issued. Net earnings for the purpose of th provision shall be construed to be the gross of the system remaining after the payment of the ired or permitted to be paid to operate and maintain said system pursuant to the provisions of Paragraph 1 of Section 2 of this Article, but betore provision for depreciation. (c) An independent and recognized firm of Certified Public Accountants shall certify in triplicate to the govern body of the City that the requirements of Paragraph (a) above are being complied with and that the requirements of Paragraph (b) above have been met. A copy of the certificate of the Certified Public Accountants shall be furnished to the des nated representative of the IV-12 original purchasers of the Series 1984 Bonds herein authorized. out ind Except when bonds are being issued solely for of refunding outstanding revenue bonas, the ineers for the City shall provide the City report recommending the additions, exten- nts he made to the system and stating feasible, deslgnatlng in reasonable detail work and installation proposed to be done and the cost of accomplishing such undertaking. Said 11 set forth in said report the projected net be derived from the system which wl~l be debt service payments over the life of the 4 Bonds and any parity bonds therewith then and the bonds proposed to be issued and shall the projected coverage of such debt service in each succeeding sinking fund year. Projected ings in each year for the purpose of this (d) shall be estimated gross earnings of the in each sinking fund year remaining after payment estimated cost required or permitted to be paid the provisions of Paragraph 1 of Section 2 of the Consulti with a sions and that same earnings avai Serles net of pu this cIe IV for said period to operate, said system as added to, extended provision for depreciation. executed duplicate original of such report of said Engineers as required by this provision shall be furnished to the gnated representatlve of the original the Series 1984 Bonds issued hereunder not (lO) days before any proceedings are taken issue such additional bonds. repair and and improved, maint but less to (e) The governing body of the City shall pass proper reciting that all of the above requirements , Shall authorize the issuance of said bonds have and shall provide in such proceedings, among other things, IV-13 the date such bonds shail bear, the rate or rates of interest and maturity dates, as well as the registration and redemption provisions. The interest on the bonds of any such issue shall fall due on January 1 and July I of each year, and the bonds shall mature in installments on July 1, but, as to principal, not necessarily in each year or in equal installments. Any such proceeding or pro- ceedings shall require the City to increase the monthly payments then being made into the Sinking Fund to the necessary to pay the principal of and the interest on the Series 1984 Bonds and on ail such parity bonds therewith n outstanding and on the bonds proposed to be issued as same become due and payable, either at maturity or by ings for mandatory redemption, in the then current sinking fund year, and to create within five (5) years the date of the bonds to be issued a reserve in the Reserve A.ccount at least equai to the maximum debt service requirement coming due in any succeeding sinking fund year on the Series 1984 Bonds and any parity bonds therewith then outstanding and on the bonds proposed to be issued and to maintain said reserve in an amount sufficient for that purpose. Any such proceeding or ngs shall restate and reaffirm, by reference, all of the applicable terms, conditions and provisions of this ordinance. (f) Such additional bonds or obligations and all proceedings relative thereto, and the security thereror, shall be validated as prescribed by law. section 9. Ail bonds paid, purChased or redeemed, either at maturity, shall be cancelled and destroyed and such shall not be reissued. A record of such destruction shall be made and preserved in the permanent records of the Bond Registrar pertaining to such bonds and in the permanent records of the City of Smyrna. IV-I4 Section 10. When sufficient moneys are deposited with the nking Fund Custodian or the Paying Agent Bank, as tne case may be, to all outstanding bonds of this issue, or any issue or issues of parity bonds therewith hereafter issued, and the interest due or to become due thereon, and also including any required be paid should said issue or issues be called for ion, or provision having been du made therefor, same shall constitute payment in fuil of said bonds of such issue or issues. IV-IS ARTICLE V DEPOSITORIES OF MONEYS AND SECURITIES FOR DEPOSIT longing to any of the funds created hereunder ted or remain on deposit with the Depository Fund Custodian in an amount in excess of the the Federal Deposit Insurance Corporation, institution shall have pledged for the benefit of the owners of the bonds as collateral security for ited direct obI ations of or obligations the i of which are unconditionally guaranteed States of America, or other marketable securities eligible security for the deposit of trust funds under regulations of the Board of Governors of the Federal Reserve System and having a market value (exclusive of accrued interest) at least I to amount of such deposits. Sect 2. Trust Company of Cobb County, Smyrna, Georgia, i hereby d as Depository for the Construction Fund; First Nationa~ of Cobb County, Smyrna. Georgia, is hereby desig- nated as tory for the Revenue Fund and for the Renewal and Extension Fund; and Trust Company of Cobb County, Smyrna, Georgia is hereby des Sinking Fund Custodian; and Trust Company Custodian the prov Federal applied forth attachment the City. No shall be 1. Except as otherwise provided in this ordinance, rece the city under the terms hereof shall, the ng of securi as hereinafter provided, be with proper Depository or with the sinking Fund the name of the City. All moneys deposited under shall be deposited in banks insured by the it corporation and such moneys shall be with the terms and for the purposes set is ordi and shall not be subject to lien or or of security interest any creditor of all t unless the City and the V-I lanta, Georgia, is hereby designated as Paying Agent and Bond Registrar for the Series 1984 Bonds. The City may, time to time, designate a successor Sinki Cus ian~ provided said Custodian complies with all provis~ons of this Article and the applicable provisions of this ordinance, and the City may, trom tlme to time, des a successor Depository or Depositories of any or all of said funds, lded said successor Depository or Depositories complies or comply with all of the provisions of this and the applicable provisions of this ordinance and the C may des te a successor Paying Agent Bank and Bond Registrar; provided said successor complies with all the applicable provisions of this ordinance. , V-2 ARTICLE VI PARTICULAR COVENANTS The City covenants: Section 1. That it will promptly pay the principal of, and interest on, every bond issued hereunder and secured hereby at the ace, on the dates and in the manner herein, and in said bonds specitled, and any premium required for the redemption of said bonds, according to the true intent and meaning thereof. The principal, interest and premiums, if any, and the charges of the P ng Agent Bank and Bond Registrar are payable solely out of t revenues of the system, which revenues are hereby pledged to the thereof in the manner and to the extent hereinbefore icularly specified, and nothing herein or in the bonds shall be construed as an obligation of the City to or to any form of taxation whatever therefor or to any appropriation for their payment, except from the nues of the system, and no bondholder shall ever have any recourse to the power of taxation. Section 2. That it has and wi~l continue to enforce reasonable rules and regulations governing the system and the operation thereof, and that all compensation, salarles, fees and s paid it in connection with the operation, repair and maintenance of such system will be reasonable, and that no more persons will be employed by it than are necessary, and that it will operate same in an efficient and economical manner, and will at all times maintain the same in good repair and in sound operating condition, and will make all necessary repairs, renewals and replacements, and that it will comply with all val~d acts, rules, regulations, orders and directions of any legislative, executive, administrative or judicial body applicable to such undertaking and enterprise. The City will also cause to be bonded its officials, emp s or agents ling funds of the system, same to be in such amount or amounts as may be considered adequate for its protection. VI-l Section 3. That any contract relating to the installation, extension, improvement, maintenance or repair of any water or sewerage lities shall provide for the retention of ten per %) of the gross value of the completed work; provided, that no amounts shall be retained on estimates or payments submitted after fifty per centum (50%) of the work has completed, if, in the opinion of the City, such work is factory and has been completed on schedule. If, after di inuing the retention, the City determines that the work is isfactory or has fallen behind schedule, the ten per (10%) retention may be resumed. Nothing herein contained 11 affect the retained amounts on the first fifty per centum (50%) of the work which shall continue to be held to ensure satisfactory completion of the work. Final payment shall be made after certification by the Consulting Engineers that the has been satisfactorily completed and is accepted in nce with the contract and plans and specifications pertaining thereto. Section 4. That it will not create or suffer to be created, in the operation and maintenance of the system, any lien, security interest or charge thereon, or any part thereof, or upon the revenues derived therefrom, ranking equally with or to the lien and charge herein authorized upon such revenues, and that it will pay, or cause to be discharged, or will make adequate provisions to satisfy and discharge, within sixty (60) after the same shall accrue, all lawful claims and demands for labor, materials, supplies or other objects, which, if unpaid, might by law become a lien upon such system, or any part thereof, or upon the revenues derived therefrom; ded, however, that nothing contained in this Section shall require the City to pay, or cause to be discharged, or make provision for, any such lien, security interest or charge, so long as the validity thereof shall be contested in good faith and by proceedings. Section 5. That it shall procure and maintain or cause to be procured and maintained so long as the bonds and any parity VI-2 therewith are outstanding; (a) Fire insurance on the insurable portions of the respons quali insurance company or companies and extended coverage system in a authorized and be business under the laws of the State of Georgia. such insurance shall be maintained in amounts not less eighty per centum (80%) of the full insurable value~ (b) Publ liability insurance relating to the operation of the system within the limits of not less than $100,000 for inquiry to or of one individual; $500,000 for injury or death growing out of anyone accident and $50,000 property damage ins for any one accident~ (c) Vehicular public liability in any cle owned by the City and used in the operation the system within the limits of not less than $100,000 injury to or death of one individual, $500,000 for injury or death groYling out of anyone accident and ~50,000 property insurance for anyone accident. The proceeds of fire extended coverage policles are pledged as security the but shall be available for and shall, to the extent necessary and desirable, be applied to the repair and replacement of the or destroyed property. In the event the proceeds of such policies are not used for that purpose, then same shall be deposited in the Renewal and Extension Fund. insurance policies shall be open to the inspection of the bondholders or their duly authorized representatives at all reasonable times. Section 6. That it will keep the funds and accounts of the system separate from all other funds and accounts of the City, or any of its departments, and no payment will be made from the revenues derived from the water and sewerage system which is not properly payable from such revenues, and that it will keep accurate records and accounts of all items of cost and all expenditures relating to the system, and of the revenues collected and the application thereof, and of the number of and that it will keep said records and accounts with VI-3 to the physical properties in such manner that it will possible at all times to indentify both the amounts and the items of accounts additions and retirements. Such records and be open to the inspection of all interested pe r so Section 7. of each fiscal That in the month immediately following the end or as soon thereafter as practicable, it will cause an annual audit to be made of the books and accounts pertaining to the system by an independent and recognized firm of Ce Public Accountants of suitable experience and respo lity, to be chosen by the governing body of the City. The a it shall include, among others, a statement of the income and es and a balance sheet, both in reasonable detail, a of insurance policies paid for and in force respecting system and its operation, comments by the auditor respecting iance by the City with the provisions of this nce and that it is complying therewith or point out where, if any, the City is not in compliance therewith. Such annual audit shall be open to the inspection of all interested persons and copies of the same shall be sent to the designated representative of the original purchasers of the bonds. It 11 also cause any additional reports or audits ing to such system to be made, as required by law, and that from time to time, as often as may be requested, it will furnish to the des ed representative of the original purchasers of the bonds i hereunder such other information concerning such system, or the operation thereof, as may be reasonab requested. Section 8. That it will permit the owner of any of the r agent or attorney duly appointed and authorized in to examine and inspect the system and all papers, books, records, accounts and data relating thereto at all reasonable times, and will permit copies or transcripts thereof be made any such person or persons at all reasonable s. VI-4 Section 9. That so long as any of the bonds shall be tanding, it wi~~ not encumber the system or any part thereof, and it will not sell or otherwise dispose of the system or any i 1 part thereof, except it may sell such system as a or substantially as a whole, if the proceeds of such sale be at least sufficient to provide for the payment of the bonds authorized under and secured by this ordinance and any interest accrued or to accrue thereon, and that the proceeds of any such sale shall be deposited with the Sinking Fund Custodian in trust and applied by it to the extent necessary to purchase or redeem the bonds. Nothing contained herein, however, shall preclude sale of a part of the system where the sale would not, in any way, adversely affect the revenues of the system, and provided r that the proceeds from such sale are used for extensions and nts to the system, or deposited with the Sinking Fund Custodian in trust and applied toward the purchase or redemption of the bonds. It will not create, or permit to be created, any charge, ~ien or en or any security interest in or on the revenues of such system, as it now exists and as it will hereafter be extended and improved, ranking prior to the lien on said revenues created to secure payment of the bonds, or ranking ly with said charge or lien of the bonds, except that it may issue additional bonds standing on a parity herewith in accordance with the provisions of this ordinance. VI-5 ARTICLE VII REMEDIES S 1. Each of the following events is hereby declared an .. of fault", that is to say, if: (a) Payment of the nc I of any of the bonds shall not be made when the same shaJ.l become due and payabl.e, at its maturity or by proceedings for mandatory redemption or optional redemption; or (b) Payment of any i alIment of interest shall. not be made when the same becomes and payable, or within thirty (30) days thereafter; or (c) City shall, for any reason, be rendered incapable of fulfi its obligations hereunder; or (d) An order or decree shall be entered, with the consent or acquiescence of the City, appointing iver, or Receivers, of the system, or of the revenues t or any proceedings shall be instituted, with the consent Or acquiescence of the City, for the purpose of effecting a composition between the City and its creditors, or for the purpose of adjusting claims of such creditors, pursuant to any Federal or State statute now or hereafter enacted, if the claims of such creditors are under any circumstances payable out of the revenues of the system, or if such order or decree, having been entered without the consent and acquiescence of the shall not be vacated or discharged or stayed on appeal in sixty (60) days after entry thereof, or if such proceeding, having been instituted without the consent or acquiescence of the City, shall not be withdrawn, or any orders entered shall not be vacated, discharged or stayed on appeal, within sixty (60) days after the institution of such proceedings, or the entry of such orders; or (e) The City shall make a default in the due and punctual performance of any other of the covenants, conditions, agreements or provisions contained in the bonds or in this ordinance, on the part of the City to be performed, and such default shall continue for thirty (30) days after written notice, specifying such default and requiring same to be remedied, shall have been given to the City by any bondholder. VII-I Section 2. Upon the ing and continuance of any event of default specified in Section 1 of this Article, then and in every such the owners of not less than fifty-five per centum in the principal amount of the bonds then out- may, by a notice in writing to the City, declare the 1 of all of the bonds then outstanding (if not then due and payable) to be due and payable immediately, and upon such decla the same shall become and be immediately due and payable, ing in the bonds or herein contained to the contrary ithstanding; provided, however, that if at any time after the principal of the bonds shall have been so declared to be due and Ie, all arrears of interest, if any, upon the bonds then outstanding, and all other indebtedness secured hereby, except the principal of any bonds not then due by their terms, and interest accrued on such bonds since the last interest ided for bonds of a date, shall have been paid, or shall have been deposit with the Paying Agent Bank for such sufficient to pay the same, and every other default in the observance or performance of any covenant, condition or agreement in the bonds, or herein contained, shall be made or provisions therefor satisfactory to such bondho 11 have been made, then and in every such case the owners of not less than fifty-five per centum (55%) in principal amount of the bonds then outstanding may, by written notice to the City, rescind and annul such declaration and its consequences, but no such rescission or annulment shall extend to, of affect. any t default or impair any right consequent to. Section 3. Upon the happening and continuance of any event of as provided in Section 1 of this Article, then and in every such case any bondholder may proceed, subject to the provisions of Section 5 of this Article, to protect and enforce the rights of the bondholders hereunder by a suit, action or special i in equity, or at law, either for the appointment of a Receiver of the system as authorized the VII-2 nue Bond Law, or for the special performance of any covenant or agreement contained herein or in aid or execution of any power he ted, or for the enforcement of any proper legal or as such bondholder shall deem most effectual to and the rights aforesaid, insofar as such may be authorized by law. Section 4. In case any proceeding taken by any bondholder on account of any default shall have been discontinued or for any reason, or shall have been determined adve such holder, then and in every such case the City positions remedies, though no Secti rs shall be restored to their former rights hereunder, respectively, and aLl rights, rs and duties of the bondholders shall continue as proceedings had been taken. No one, or more, owners of the bonds secured hereby shall have any right in any manner whatever by his or their action to affect, disturb, or prejudice the security granted and ided for herein, or to enforce any right hereunder, t in the manner herein provided, and all proceedings at law or in equity shall be instituted, had and maintained for the equal benefit of all owners of such outstanding bonds. See 6. No remedy herein conferred upon the bondholders is in be exclusive of any other remedy, or remedies, and each and every such remedy shall be cumulative, and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity, or by statute. Section 7. No delay or omission of any bondholder to exerc and any r ing t or power accruing upon any default occurring as aforesaid, shall impair any such default or be construed as an acquiescence therein and every power and remedy given by this Article to the owners of the bonds, respectively, may be exercised from time to time and as often as may be deemed expedient. VII-3 ARTICLE VIII SUPPLEMENTAL PROCEEDINGS Se 1. The City may, from time to time and at any time, ordinance or ordinances supplemental hereto as shall be deemed necessary or desirable for the purpose of modifying, altering, amending, adding to, or rescinding, in any particular, any of the terms or provisions contained in this ordinance or in any supplemental ordinance or in the Series 1984 Bonds; provided, however, that nothing herein contained shall permit, or be construed as permitting: (a) the extension of the matur of any bond issued hereunder; (b) the reduction in the principal amount of any bond or the alteration of the rate or rates of interest thereon or any other modification of the terms of payment such principal or interest; (c) the reduction of the percentage of the principal amount of bonds required tor consent to such supplemental ordinance; and (d) the creation of lien on the revenues of the system prior to or superior to the lien created on the revenues of the system as the security for the payment of the Series 1984 Bonds or any other issue of parity bonds with the Series 1984 Bonds and the interest thereon. A modification or amendment of the provisions with respect to the Sinking Fund is not to be deemed a change in the terms of payment. Nothing herein contained, however, shall be construed as making nece the approval by the bondholders of any ordi- nance not i istent with the terms and provisions of this ordinance any suppJ_emental proceedings forming a part hereof to cure any iguity or formal defect or omission in this ordinance or any supplemental proceedings or to grant any additional rights, remedies, powers, authority or security that may lawfully be granted to or conferred upon the bondholders by the City. After any supplemental ordinance requiring the consent of the bondholders shall have been adopted, the City shall publish a notice of the adoption of such ordinance once a week for two VIII-I ive weeks in a financial newspaper or journal of general circulation in the City of New York, New York, which said notice shaJ_l be in substantially the fO-Llowing form: TO THE OWNERS OF CITY OF SMYRNA, GEORGIA WATER AND SEWERAGE REVENUE BONDS, SERIES 1984 was adopted by the governing body of the City ia, on the day of , 19 ordinance authorizi the ssuance sa bonds 1984, wh supplemental ordinance will (30) days after the owners of at least principal amount of the said bonds now filed with the Ci proper executed the adoption of sai supplemental ordi- proof of ownership of the bonds to which such refers shall be such as is permitted by the provi- sions section 7 of Article VIII of the above mentioned ordinance of 1984. Attest: It is provided, however, that should any parity bonds or obligations with the Series 1984 Bonds be hereafter issued then the form of notice hereinabove set forth shall be modified to notify the owners of such issue or issues of parity bonds or obI as 11 as the owners of the Series 1984 Bonds. section 2. On or before the date of the first publication thereof, the City shall cause a copy of the above mentioned notice to be mailed, postage prepaid, to all registered owners of bonds appearing on the bond registration book kept by the Bond Registrar and a copy of such supplemental ordinance shall be mailed, postage prepaid, to the des ted representative of the original purchasers of the Series 1984 Bonds. Section 3. No such supplemental ordinance shall become effective unless the owners of at least sixty-five per centum (65%) in aggregate princ 1 amount of the Series 1984 Bonds and any parity bonds therewith then outstanding shall have filed with the Clerk within six months after the date of adoption of such ordinance proper executed instruments approving the VIII-2 of such supplemental ordinance, each such instrument to be accompanied by proof of ownership of the bonds to which such instrume rs, which proof shall be such as is permitted by the of Section 7 of this Article. on 4. Any action or proceeding in any court objecting 1 ordinance or to any of the terms and provi- ained or the operation thereof, or in any to such sions therei manner quest ng the propriety of the tion thereof or the execution bondholder of any instrument purporting to approve the on of such ordinance, or to enjoin or restrain the from taking any action pursuant to the provisions thereof, must be commenced within thirty (30) days after the City shall have determined that the owners of at least sixty- five per (65%) in aggregate principal amount of the Series 1984 Bonds then outstanding, including any parity bonds, have the adoption of such supplemental ordinance. Upon the expiration of such 30 day period, or, if any such action or proceedings shall be commenced, upon any judgment or decree sustaining such supplemental ordinance becoming final, this ordinance and any ordinance authorizing the issuance of parity bonds with the Series 1984 Bonds shall be, and be deemed to be, modified and amended in accordance with such supplemental and the respective rights, duties and obligations under is ordinance and any ordinance authorizing the issuance of parity bonds th the Series 1984 Bonds and all owners of outstanding bonds shall thereafter be determined, exercised and enforced hereunder; subject, in all respects, to such modiflca- tions and amendments. Section 5. Any supplemental ordinance adopted and becoming e1fect~ve in accordance with the provisions of this Article shall thereafter form a part of this ordinance and all condi- tions of this ordinance for any and all purposes, and shall be effective as to all owners of bonds then outstanding and no notation or of such modifications and amendments shall be required to be made thereon. VIII-3 never referred to herein as "supplemental ordinance" ame shall be construed to mean such action as shall be taken by the gove of the City, as may be required to comply with law then force and effect. on 6. In the event of the issuance of any bonds pari pas with the Series 1984 Bonds, then the provi- ons of this icle shall likewise be applicable in all respects bonds and ceedi given amendment to any such proceedings so authorizing such parity any lemental ordinance amending such pro- the notice of such supplemental ordinance shall be parity bondholders and any such modification and 11 apply to any such parity bonds and the owners of 7. Any request, waiver, direction, consent or required by this ordinance to be signed or rs may be in any number of concurrent lar tenor and may be signed or executed by such person or by agent appointed in writing. Proof of any such instrument, or of the writing agent, and of the ownership of bonds, if made manner, shall be sufficient for any purpose of and shall be conclusive in favor of the City with action taken under such instrument: (a) The fact and date of the execution by any person of any such ins t may be proved by the certificate of any officer in juri ction, who by the laws thereof, has power to take acknowledgments within such juriSdiction, to the effect that the person s ng such instrument acknowledged before him the thereof, or by an affidavit of a witness to such (b) The fact of the ownership of the Series 1984 Bonds or any issue of parity bonds therewith shall be determined and proved by reference to the bond registration book kept by the Bond Registrar for su issue or issues of bonds and the City VIII-4 may conclusively assume that such ownership continues until written notice to the contrary is served upon it. Any t or consent of the owner of any bond shall bind every owner of the same bond in respect of anything done by the City in pursuance of such request or consent. VIII-5 ARTICLE IX MISCELLANEOUS PROVISIONS AND DEFINITIONS 1. Whenever used in this ordinance, the singular shall si . the plural and the plural shall include unless the context otherwise indicates. the Section 2. In case anyone or more of the provisions of this , or the bonds issued hereunder, shall ror any reason be held illegal or invalid, such illegality or invalidity sha~l not affect any other provisions of this ordinance or the bonds, but is ordinance and said bonds shall be construed and enforced as if such lllegal or invalid provisions had not been contained therein. Section 3. tute a contract of the Seri The provisions of this ordinance shall consti- and between the City of Smyrna and the owners 1984 Bonds authorized to be issued hereunder and the owners of any pari passu bonds subsequently issued, and after the i of the bonds this ordinance shall not be repealed or nded in any respect which will adverse affect the r ts and interest of the owners of said bonds, nor shall the City pass any proceedings in any way adversely affecting the rights of such owners, so long as any of the bonds authorized by this or the interest thereon, shall remain unpaid; provided, however, that this covenant shall not be construed as ibiting modifications hereof or amendments hereto to the extent and in the manner as provided in Article VIII hereof. The provisions of this ordinance and every appropriate sentence reof shall be construed as including and as being appli to any future issue or issues of parity bonds, as as to the Series 1984 Bonds, and any parity bonds shall be treated all intents and purposes, unless otherwise specifi- cally stated, bonds of this just as if they had been issued together with the issue and pursuant to the terms of this ordinance. proceedings authorizing the issuance of provided in this ordinance shall in nowise terms and conditions of this ordinance, but Any additional conflict with the IX-I 1, for all legal purposes, reaffirm all of the applicable covenants, agreements and provisions of this ordinance for the equal on and benefit of all bondholders. on 4. or trust company with, or into which the Agent Bond Registrar, any Depository or Custo- dian designated in this ordinance may be merged or consolidated, or to which the asSets and the business of such Paying Agent Bank, Bond st any Depository or Custodian may be sold, shall be deemed the Successor of such institution for the this purpose inance. 5. The terms "Mayor and Council of the City of Smyrna", " and Council" and "governing body" shall mean the present ng of the City of Smyrna and any person, body or authority to whom, or to which, may hereafter be dele- gated by law the duties, powers, authority, obligations or liabilities the present body, either in whole or in relation the water and sewerage system. Section 6. For the purpose of this resolution and the bonds issued hereunder the terms "original purchasers", "repre- sentative of the inal purchasers" and "designated represen- tative of the original purchasers" shall be construed to mean Lex JO & Co., Inc., Atlanta, Georgia, its Successors or as Sect 7 . The terms "water and sewerage system" and "system" 1 be construed as one and the same, and as consti- tuting water facilities and sewerage facilities as now existent as hereafter added to, extended, and equ in furnishing and owned the City and used by it , water a rage services and facilities. 8. For purpose of this ordinance the terms nc pal and interest requirements" and "debt service require- ments" shall be construed to mean the amount required in each sinking fund year to pay the principal of and interest on the IX-2 I I I I I I I I I I I I I I ,~ ~ ;",; ,) <i' ,. ae.. Series 1984 Bonds and any parity bonds therewith hereafter issued as the same become due and payable either at maturity or by proceedings for mandatory redemption. Section 9. The term "fiscal year" shall be deemed to be the period commencing on the 1st day of July in each year and extending through the 30th day of June in the next year, or such other period as shall hereafter be adopted by the City as herein provided. The term "sinking fund year" shall be deemed to be the period commencing on the 2nd day of July in each year and extending through the 1st day of July in the next year. Section 10. The terms "Consulting Engineers", "Engineers", "engineers" and "engineer" shall be construed to mean Welker & Associates, Inc. Marietta, Georgia or such other engineers, engineer or engineering firm as may hereafter be employed to supervise the additions, extensions and improvements to the system and in relation to the services to be rendered as ~ontem- plated by this ordinance. Section 11. The term "engineering report" shall be con- strued to mean the Engineering Report, dated August, 1984, prepared by the City's Consulting Engineers,. same being approved and ratified and by reference incorporated herein and made a , ; J I part hereof. Section 12. The bonds herein authorized shall be validated in the manner provided by law, and to that end notice of the adoption of this ordinance and a copy thereof shall be served upon the District Attorney of the Cobb Judicial Circuit, in order that proceedings for the above purpose be instituted in the Superior Court of Cobb County. Section 13. Any and all ordinances or parts of ordinances in conflict with this ordinance this day adopted be and the same are hereby repealed, and this ordinance shall be in full force and effect from and after its adoption. Approved: ;J-A~ -:-r r3 a ~ Mayor, City of Smyrna, Georgia IX-3 .-! ,~ tJ V' \., '-