06/13/2005 Board of Public Works Minutes

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REGULAR MEETING JUNE 13, 2005 WHEREAS, the City has previously issued and there are now outstanding bonds issued on account of the Waterworks and payable out of the revenues therefrom designated as the "Waterworks Revenue Bonds of 1997" dated December 1, 1997 (the "1997 Bonds") originally issued in the amount of $22,500,000 authorized by Ordinance No. 8801-97 adopted by the Common Council on June 23, 1997 (the "1997 Ordinance"), now outstanding in the amount of $13,035,000. WHEREAS, the City has previously issued and there are now outstanding bonds issued on account of the Waterworks and payable out of the revenues therefrom designated as the "Waterworks Revenue Bonds of 1993" dated November 1, 1993 (the "1993 Bonds") (the 2002 Bonds, the 2000 Bonds, 1997 Bonds and the 1993 Bonds together, the "Prior Bonds"), originally issued in the amount of $5,100,000 authorized by Ordinance No. 8318-92 adopted by the Common Council on November 23, 1992, as amended by Ordinance No. 8419-93 adopted by the Common Council on September 27, 1993 (the "1993 Ordinance" and together with the 2002 Ordinance, the 2000 Ordinance and the 1997 Ordinance, the "Prior Ordinances"), now outstanding in the amount of $1,915,000. WHEREAS, the Board deems it advisable and recommends to the Common Council that the City issue revenue bonds payable from the revenues of the Waterworks in an original amount not to exceed Four Million Seven Hundred Ten Thousand Dollars ($4,710,000) (the "2005 Bonds"), for the purpose of providing together with certain other funds on hand, for the payment of (i) the Project, and (ii) the costs of issuing such 2005 Bonds. WHEREAS, the Prior Ordinances permit the issuance of additional bonds payable from the revenues of the Waterworks and ranking on a parity with the Prior Bonds for the purpose of financing additions, extensions and improvements to the Waterworks provided certain conditions can be met, and the Board has determined, based upon information provided to the Board by Crowe Chizek and Company LLC, the City's financial advisors, that the finances of the Waterworks will enable the City to meet the conditions for the issuance of additional parity bonds and that, accordingly, the 2005 Bonds shall rank on a parity with the Prior Bonds. WHEREAS, the Board has reviewed the form of a bond ordinance to be adopted by the Common Council authorizing the City to issue and sell the 2005 Bonds for the purpose of financing the Project (the "2005 Bond Ordinance"), and the Board has found the 2005 Bond Ordinance to be satisfactory. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF PUBLIC WORKS OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: Section 1. The Board hereby recommends to the Common Council that the upgrades, expansions, additions, replacements, extensions and improvements to the Waterworks, as more particularly described on Exhibit A hereto (collectively, the "Project") be made to the Waterworks. Section 2. To provide funds necessary to pay for the costs of the Project, the Board hereby approves and recommends to the Common Council the issuance by the City of Waterworks revenue bonds in a principal amount not to exceed Four Million Seven Hundred Ten Thousand Dollars ($4,710,000). Section 3. The Board hereby approves the substantially final form of the 2005 Bond Ordinance presented to this meeting and recommends to the Common Council the adoption of such 2005 Bond Ordinance which sets forth the terms and conditions of the 2005 Bonds to be issued thereunder. Section 4. The Board hereby ratifies the actions taken to file the 2005 Bond Ordinance with the Clerk of the City ("City Clerk") for presentation to the Common Council, and the Clerk of the Board is hereby directed to present a copy of this Resolution to the City Clerk for presentation to the Common Council for its consideration, as soon as may be done, thereby requesting the issuance of the 2005 Bonds. Section 5. This Resolution shall be in full force and effect from and after its adoption by the Board. Adopted at a meeting of the Board of Public Works of the City of South Bend, Indiana, on this 13th day of June, 2005.