04/27/92 Board of Public Works Minutes

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}� 6 REGULAR MEETING APRIL 27, 1992 to prepay the full cost of the installation at $264,939.04 and pay normal service costs of $5,196.36 per month. The final option, and the one chosen by the City, is to finance the prepayment amount through Ameritech Credit Corporation with a monthly payment of $3,091.84 plus the $5,196.36 per month for the normal service cost. Mr. Leisenring noted that by utilizing this option the City would be reducing what it currently pays by two per cent (2%) and he therefore recommended that the Board approve this Lease Purchase Agreement. Board Attorney Mary H. Mueller advised that she has reviewed the Lease Purchase Agreement for legality and deleted one paragraph. Mrs. Mueller therefore made a motion that the Lease Purchase Agreement, with the elimination of Paragraph #14, be approved and executed. Mr. Caldwell seconded the motion which carried. FILING OF DISCLOSURE OF CONFLICT OF INTEREST In a letter to the Board, Ms. Elizabeth Leonard, Director, Financial & Program Management, Department of Economic Development, advised that the letter which she is submitting, which shall be received and filed at a public meeting of the Board of Public Works of the City of South Bend, Indiana, will serve as public disclosure of a determination of conflict of interest under 24 CFR 570.611 for the following person: Jon R. Hunt, Executive Director of the City of South Bend's Department of Economic Development, is acting as the President of the Neighborhood Housing Services Board of Directors. NHS is a recipient of funds through the Community Development Block Grant (CDBG) Program. Mr. Hunt, in his position with the City, oversees this office's monitoring of the CDBG Program. NHS is being monitored in the same manner as other sub - grantees. Ms. Leonard noted that public consideration and acceptance of the letter satisfies the Department of Housing and Urban Development's (HUD) regulations which require public disclosure of any potential conflict of interest involving the use of Community Development funds. This is a required step toward gaining HUD approval of the transaction. Ms. Leonard further noted that the office of the South Bend City Attorney has determined that the above described situation does not constitute a conflict of interest under state law. The Department of Economic Development will be requesting a waiver from the United States Department of Housing and Urban Development, Indianapolis area office, pursuant to 24 CFR 570.611. Mr. Jon Hunt, Executive Director, Department of Economic Development, was present and advised members of the Board that he is the President of NHS and Executive Director of the Department of Economic Development which oversees Community Block Grant funds of which the NHS is a recipient. He noted that in 1992, NHS received $30,000.00 in funds for administrative purposes and in the past received funds for housing rehabilitation and the revolving loan fund activity. Mr. Hunt noted that as he understands it no conflict of interest exists under state law but the action of the Board today is required by HUD. Mr. Hunt noted that first in this process is this public disclosure and then the request from HUD for a waiver. Mrs. Mueller made a motion that the public disclosure letter as submitted be accepted for filing. Mr. Leszczynski seconded the motion which carried. Mr. James R. Caldwell abstained from voting as he is a member of the NHS Board.