Approving the Leasing of Waterworks Facilities of Clay Utilities Inc

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ROBERT M. PARKER THOMAS J. BRUNNER, JR. JOHN C. HAMILTON TIMOTHY J. HARTZER Common Council City of South Bend Dear Council Members: PARKER, BRUNNER & HAMILTON ATTORNEYS AT LAW 1100 HAZLITT BUILDING 120 WEST LASALLE AVENUE SOUTH BEND, INDIANA 46601 August 30, 1984 TELEPHONE (219) 234 -4149 Re: Clay Utilities Water and Sewage Lease Purchase Agreements Ordinances are being filed with the Council authorizing the approval of Clay Utilities water and sewer facilities lease purchase agreements. Submitted with this ordinance is a resolution directing publi- cation of notices of public hearing on each of these contracts. The statutes require publication of notice and we believe it is necessary for the record that the Council adopt the formal resolution ordering publications of the notices. Copies of the proposed lease purchase agreements for both the water and sewer facilities and explanatory information showing the financial aspects of the acquisition and comparison with the 1977 acquisition are also enclosed. The City of South Bend has been operating the respective water and sewer utilities under a management agreement with Clay Utilities since 1977. The City.is thus well aware and confident of the condi- tion and operation feasibility of the Clay Utilities facilities. The lease purchase agreements and ordinances provide that the City will adopt the existing Clay Utility rates for water and sewage services being charged to its customers. The revenues which come to the City from these rate charges will be sufficient to maintain the cashflow which the City has been realizing from the two utilities as well as provide monies with which to make the semi - annual payments under the lease purchase agreements. I am acting as special counsel for the City in this matter. The proposed leases have been submitted to the Board of Works, Boards of Wastewater Treatment Commissioners and Waterworks Commissioners and have been approved by those respective boards on September 4, 1984. Very truly yolirs, Rober�a M ". rk r RMP :mb encs.