09-27-04 Utilities Committee - Laserfiche WebLink

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Utilities Committee The September 27, 2004 meeting of the Utilities Committee of the South Bend Common Council was called to order at 3:40 p.m. by its Vice-Chairperson, Council Member Sean Coleman in the Council Informal Meeting Room. Persons in attendance included Council Members Dieter,Kelly,Puzzello,Varner,Kuspa, White,and Coleman;City Clerk John Voorde, Community&Economic Development Executive Director Sharon Kendall,Phil Facenda, Jr., Jack Dillon, City Engineer Carl Littrell,Ken Fedder, Randy Rompola, and Kathy Cekanski-Farrand, Council Attorney. Council Member Coleman noted that the members of the Committee include Council Members Kirsits Pfeifer,Kuspa and himself, and that there was not a quorum of the committee present. Nevertheless,the Committee meeting would go forward to receive information. Council Member Coleman then called for a presentation on Bill No. 58-04 which would supplement and amend Ordinance No. 8919-98 addressing the acquisition, construction and installation of certain improvements and extensions to the sewage works and the issuance of revenue bonds, as well as the collection, segregation and distribution of revenues of the sewage works and safeguarding the interests of the owners of the bonds. Phil Facenda, Jr., an attorney with Barnes & Thornburg with offices at 600 1st Source Center in downtown South Bend made the presentation. He noted that the Council had previously authorized the issuance of the bonds which are still outstanding. The 1998 bonds were issued in the original amount of $24,095,000 and the 2001 bonds were issued in the original amount of $5,240,000. The 2004 bonds were issued in the original amount of $11,425,000. All outstanding bonds are required to have a debt service reserve account in the Sewage Works Sinking Fund and the funding of a Debt Service Reserve Requirement in order to provide payment if the bond and interest accounts are insufficient to pay the principal and interest. The City Controller's Office has determined that a Debt Reserve Account insurance policy would be fiscally beneficial. Therefore the proposed ordinance would amend the 1998 bond to permit the city to substitute one or more insurance policies to provide such funds. City Controller Rick 011ett joined the meeting at this point and spoke in favor of the Bill. Council Member Coleman noted that since a quorum of the Committee was not present, that the Bill would go to the full Council without recommendation. There being no further business to come before the Committee, Council Member Coleman adjourned the meeting at 3:45 p.m. Respectfully submitted, Council Member Sean Coleman,Vice-Chairperson Utilities Committee KCF:kmf Attachment Utilities Committee Meeting of September 27,2004 Page 1