11/22/88 Board of Public Works Special Meeting Minutes

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SPECIAL MEETING NOVEMBER 22, 1988 found that in order to finance that portion of the cost of the Improvements not paid for with the Grants it will be necessary to issue Revenue Bonds in the amount of Nine Million Five Hundred Thousand Dollars ($9,500,000) payable out of the revenues of the sewage works of the City of South Bend, Indiana; and WHEREAS, a proposed form of bond ordinance to finance that portion of the cost of the Improvements to the Plant not be paid for with the Grants has been duly considered by the Board of Public Works and found satisfactory, a copy of which proposed bond ordinance is attached hereto as Exhibit A; and WHEREAS, the Board of Public Works desires to recommend the adoption of the proposed ordinance to the Common Council of the City of South Bend (the "Common Council"), NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF SOUTH BEND BOARD OF PUBLIC WORKS AS FOLLOWS: 1. The Board of Public Works requests the Common Council to authorize the issuance of Waste Water Treatment Revenue Bonds in the amount of Nine Million Five Hundred Thousand Dollars ($9,500,000), on the terms and conditions set out in the proposed form of bond ordinance presented at this meeting, by the adoption of said proposed ordinance. 2. The Clerk of the Board of Public Works is hereby directed to present a copy of this Resolution and said proposed ordinance to the City Clerk for presentation to the Common Council as soon as may be done. 3. This Resolution shall be in full force and effect after its adoption by the Board of Public Works. ADOPTED at a special meeting of the City of South Bend Board of Public Works held in the Department of Public Works conference room on the thirteenth floor of the County -City Building, 227 W. Jefferson Blvd., South Bend, Indiana 46601, this 22nd day of November, 1988. CITY OF SOUTH BEND BOARD OF PUBLIC WORKS s/John E. Leszczynski s/Patricia E. DeClercq ATTEST: s/Maryrose Putz, Acting Clerk APPROVE STIPULATION AND AGREEMENT - SIBLEY MACHINE AND FOUNDRY CORPORATION In a letter to the Board Carolyn V. Pfotenhauer, Assistant City Attorney, advised that Sibley Machine and Foundry is in reorganization under Chapter 11 of the Bankruptcy Code. Sibley was indebted to the City of South Bend evidenced by a Loan Agreement and Subordinated Security Agreement in the original principal amount of $187,500.00 dated September 1, 1987. There is a current principal balance owing of $187,500.00 with interest past due. They were to have made a $24,282.11 payment to the City on September 1, 1988. Sibley failed to make that payment and this agreement requires them to pay the City $4,000.00 per month until the full amount of $24,282.11 is paid. Mr. Leszczynski advised that this Agreement is to make sure the City's interests are covered. Upon a motion made by Mrs. DeClercq, seconded by Mr. Leszczynski and carried, the above referred to Stipulation and Agreement was approved.