Formalizing the intent of the Council with regards to the aquisition of Clay Utilities as proposed by the Mayor of South Bend

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RESOLUTION NO. A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA FORMALIZING THE INTENT OF THE COUNCIL WITH REGARDS TO THE ACQUISITION OF CLAY UTILITIES AS PRO- POSED BY THE MAYOR OF SOUTH BEND. WHEREAS, the South Bend Common Council has judged that the acquisition of Clay Utilities would be beneficial to the City, but are left unconvinced due to the insufficiency of evidence that it should be purchased at any price; WHEREAS, the Council by a 7 -2 vote on March 14, 1977, and an 8 -1 vote on April 13, 1977, clearly showed that the Mayor should continue to negotiate down the purchase price by excluding contribution in aid of construction and lower- ing the rate of interest to a figure similar to interest rates on municipal bonds; and WHEREAS, a more reasonable and justifiable price should be sought especially in light of the inconclusive data show- ing that the acquisition will have any significant impact on pending annexations. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana: SECTION I. That the Common Council formally proposes that the Mayor and all Administrative officers continue in their efforts to acquire the waterworks and sewage disposal facilities of Clay Utilities, Inc., at a price which excludes contributions in aid of construction and includes a lower in- terest rate. Should negotiations fail to attain significant reductions in the overall cost of Clay Utilities, Inc., steps should be taken by the City to acquire Clay Utilities through the condemnation procedure. SECTION II. That the Common Council recommends that the formal steps be taken by the Administration to introduce a bill which would appropriate up to five percent (50) of the total estimated cost of acquiring the facilities. Such a procedure is necessary and required by Indiana law to pay the expenses of a preliminary investigation, a proper survey, en- gineering plans and cost of acquisition. SECTION III. That the Common Council rededicate its efforts in supporting the Administration in acquiring Clay Utilities, Inc., at a fair and equitable price which is founded on both sound economic and humanistic principles. SECTION IV. That this resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. FILED IN CLERK'S OFFICE PRESENTED 1977 NOT APPROVED ADOPTED .s -— Irene Gammon CITY CLERK, SOUTH VEND, MD be of the Common Council