07/17/1979 Board of Public Works Minutes

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126 REGULAR MEETING JULY 17, 1979 ADOPTION OF RESOLUTIONS AND EXERCISE OF OPTION RE: CLAY UTILITIES Robert 1"I. Parker, Chief Deputy City Attorney, submitted to the Board resolutions and notice of exercise of option with regard to the lease /purchase of Clay Utilities. At the time the contract was signed for the purchase of Clay Utilities, there was provision made for an interim operating agreement for a period of two years. The contract was signed October 24, 1977. At the end of that two year period, the City has the option to renew it for a like period of one year. A resolution and form of notice have been prepared and must be signed before July 24 indicating the intention of the City to extend the operating agreement for one year. A similar resolution and notice will be submitted to the Board of Waterworks Commissioners and Board of Wastewater Commissioners for approval today. Mr. Parker noted that the City has appealed the Court decision regarding the purchase and is preparing briefs to be filed before July 30. Upon motion made by Mr, McMahon, seconded by Mr. Mullen and carried, the following Resolutions were adopted: and the Notice of Intent to Exercise Option was approved: RESOLUTION NO. 16, 1979 WHEREAS, the City of South Bend, as Lessee, and Clay Utilities, Inc. and Clay Development Corp., as Lessor, entered into a lease agreement dated October 24, 1977 for the lease of certain waterworks facilities as described in said lease and located in German and Clay Townships, St. Joseph County, Indiana; and WHEREAS, pursuant to Paragraph 13 of said lease, the City of South Bend exercised its option to take over the interim management, operation and maintenance of such facilities pending the beginning date of said lease as such beginning date is described in paragraph 1 thereof; and WHEREAS, the beginning date of said lease has not occurred as the same is defined in paragraph 1 of said lease and the City has a unilateral option upon 90 days advance notice to continue the interim management, operation and maintenance agreement of said utility for an additional twelve (12) months period or until the beginning date of such lease, whichever first occurs; and WHEREAS, it is in the best interest of the City to continue the interim management, operation.and maintenance of said waterworks facilities pursuant to such interim agreement and a form of notice of exercise of such option is now presented to this Board for its approval. NOW, THEREFORE, BE IT RESOLVED by the Board of Public Works of the City of South Bend,.Indiana: SECTION 1. The Board now approves the continue for an additional 1-2 months period operation and maintenance of the waterworks Utilities as described in the lease agreeme 1977; and does hereby approve the notice of orders its timely execution and delivery.. Adopted this 17th day of July, 1979. exercise.of option to the interim management, facilities of Clay . at executed October 24, exercise of option and BOARD OF PUBLIC WORKS OF THE CITY OF SOUTH BEND, INDIANA s/ Patrick M. McMahon ATTEST: s/ Peter H. Mullen s/ Patricia DeClercq