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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OFFICE OF THE MAYOR CITY of SOUTH BEND PETER J. NEMETH, Mayor COUNTY -CITY BUILDING SOUTH BEND, INDIANA 46601 May 16, 1977 Mr. Roger O. Parent, President South Bend Common Council County -City Building South Bend, Indiana 46601 Dear Council President Parent: AREA 219 284 - 9261 Please be advised that I am vetoing Resolution No. 558 -77 of the Common Council regarding Clay Utilities which was passed at the Council meeting held on May 9, 1977. I am vetoing the resolution for the following reasons: First, the resolution requests me to pursue purchase of Clay Utilities at a price of approximately $1.2 million with an interest rate of less than 7 %. You are very aware of the fact that Mr. Homer Fitterling has already turned down your offer (or proposal or whatever you wish to call it) of $1.7 million at 7% interest. For the Council to make such a request of me is ridiculous, to say the least. Second, as I indicated to you in my office a couple of weeks ago, I do not favor condemnation as a means of acquiring Clay Utilities. My administration worked out an arrangement whereby the purchase of Clay Utilities (excluding Aqua, Inc.) would not have cost city residents anything, but the purchase price would have been funded by the rates presently being paid by the Clay Township residents who are customers of Clay Utilities. To the contrary, condemnation would require the residents of South Bend to bear the brunt of whatever purchase price might be established in court. It is my opinion that the purchase price would most likely be higher than the $2.1 million figure which my administration negotiated. In addition to the eventual purchase price, the following costs would be incurred entirely by the residents and taxpayers of South Bend: 1. Petition circulated for 5% of signatures $ 1,000