02/28/85 Board of Public Works Special Meeting Minutes

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NO SPECIAL MEETING FEBRUARY 28, 1985 A Special Meeting of the Board of Public Works was convened at 9:32 a.m. on Thursday, February 28, 1985, by President John E. Leszczynski, with Mr. Leszczynski, Mr. Richard L. Hill and Mr. Michael L. Vance present. Also present was Assistant City Attorney Carolyn V. Pfotenhauer. APPROVE ADDENDA TO LEASE PURCHASE AGREEMENTS - CLAY UTILITIES, INC. (WATERWORKS FACILTTIES AND SEWAGE DISPOSAL FACILITIES) Mr. Robert M. Parker, Attorney at Law, Parker, Brunner and Hamilton, 120 West LaSalle Avenue, South Bend, Indiana, special counsel regarding the Clay Utilities transaction, submitted to the Board for approval an Addendum to Lease for Clay Utilities, Inc. Sewage Disposal Facilities and an Addendum to Lease for Clay Utilities, Inc., Waterworks Facilities. Mr. Parker advised that the original Lease Agreements were approved and executed by the Board of Public Works on September 4, 1985, and after subsequent approval by the Common Council, dated October 9, 1984. He further advised that a subsequent remonstrance filed with the Public Service Commission has since been dismissed. It was further noted that on February 19, 1985, the Stream Pollution Control Board determined that the provisions for sewage treatment by Clay Utilities, Inc. are sufficient. Additionally, on February 26, 1985, the State Board of Health determined that the provisions for sewage treatment by Clay Utilities, Inc. are sufficient. The Addenda presented today establishes the beginning date of the Lease Purchase Agreements, said date being March 1, 1985. The beginning date stated in the Addenda differs from the original Lease Agreement in that the original Agreements indicate that the term is for sixteen (16) years beginning on the 15th day of the month following the date all conditions set -forth in Paragraph One have been satisfied. The Addenda state that the parties have determined that it is in their mutual best interest to establish a beginning date on the 1st day of the month instead of the 15th day of the month following the date all of said conditions have been satisfied. Therefore, the 1st day of March 1985, has been established as the beginning date of the Leases. Mr. Parker further advised that Clay Utilities, Inc. is responsible for the payment of 1984, payable 1985, personal and property taxes. The execution of the Addenda today establishes a cut-off date for the payment of 1985, payable 1986, taxes by the City entering to a Lease Purchase Agreement prior to March lst which is the assessment date. The City will be responsible for taxes for ten (10) months of 1985, payable in 1986, but anticipates an exemption from the payment of these taxes. There being no further discussion or questions regarding this matter, upon a motion made by Mr. Hill, seconded by Mr. Vance and carried, the above referred to Addenda to Leases between the City and Clay Utilities, Inc. for Waterworks Facilities and Sewage Disposal Facilities were approved and executed.