05-14-79 Council Meeting Minutes

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REGULAR MEETING MAY 14, 1979 A public hearing was held on the resolution at this time. Mr. Peter Mullen, City,Controller, in- dicated this was an intent resolution to begin the process of issuing a mortgage - backed houring bond. He indicated they were starting this process because of .a possibility that the Federal government may either stop this bonding method, or, at least, restrict its usage. He said that the State passed a law that allows mortgage bonds to be used inside the city limits for those families having a combined family income of approximately $20,000 or less. He indicated this would be an excellent tool to make South Bend an attractive city to purchase a home. He in - dicated that because of the possibility that the Federal government may restrict this, they are requesting that the Council pass this resolution, in the event that Congress grandfathers any municipality in the process of development this type of bond. Mr. Gordon Medlock, manager of the local Traub & Company, asked the Council to amend or table this resolution because this appoints a small Denver, Colorado firm as the underwriter for theCity bonds. He indicated that a South Bend investment firm should be appointed, and a nationally recognized underwriter should be selected. Mayor Nemeth indicated that the City had selected Kirchner Moore, because they had refinanced the bonds for Century Center, as well as work on the parking garage bond issue. He said he thought Kirchner Moore was qualified and able to handle this bond issue. Mr. Jack Brehmer, account executive for Bache and Company, indicated that their company had submitted a prospectus to the CIty. He indicated that the Council should eliminate the underwriter from this resolution,,;in order that a local firm could be selected. Council Member Kopczynski asked the total amount of this bond. Mr. Medlock indicated twenty -five percent of the mortgages issued'. in the City for the last three years would be the maximum and this could run up to forth million. Council Member Kopczynski asked the underwriter's fee. Mr. Medlock indicated it would range from one and one -half to two and one -half percent. Council Member Kopczynski indicated that the Counc should consider a local underwriter. Council Member Adams asked if it was necessary to name a firm in this resolution. Mr. Mullen in- dicated it would.be preferable, and if it was eliminated there was a possibility that the City Could not be grandfathered. She made a motion to amend the resolution by adding, in the first Whereas, and Traub and Company, after Kirchner Moore; in Section I, after Kirchner Moore, add and Traub and Company equally, and at the end of the sentence add and Traub and Company; in Section III, after Kirchner Moore add and Traub and Company; make a new Section IV to read "Traub and Company with Kirchner Moore are to select a recognized leader in the field to lead the under- writing teams, seconded by Council Member Kopczynski. Mayor Nemeth indicated this would eliminate all other local firms. Council Member Miller indicated that the Council could pass other resolu- tions naming other firms in the future. Council Member Taylor indicated he would like to stay away from naming a local firm. He suggested that Section I be changed to read "The City agrees to issue such bonds and to sell the same to Kirchner, Moore and Company and a local underwriting firm, pursuant to the terms of a Bond Purchase Agreement to be mutually acceptable to the City and Kirchner, Moore and Company and a local underwriting. firm." After discussion, Council Member Adams indicated she would like to change her motion. Council Member Dombrowski made a motion to adjourn to discuss this matter, seconded by Council Member Horvath. The motion carried and the meeting was adjourned at 7:55 p.m., and reconvened at 8:05 p.m. Council Member Adams withdrew her motion. She made a motion to change Section I, by adding "and a local underwriting firm or firms equally," after Kirchner Moore and Company, and at the end of the sentence add "and a local underwriting firm or firms .'; in Section III add "and local underwriting firm or firms, at the end of the sen- tense; make a new Section IV to read "Kirchner Moore and Company with the local underwriting firm or firms are to select a recognized leader in the field to lead the underwriting teams "; the present Section IV becomes Section V, seconded by Council Member Kopczynski., The motion carried.. Council Member Taylor made a motion to adopt this resolution, as amended, seconded by Council Member Adams. The resolution was adopted by a roll call vote of nine ayes. RESOLUTION NO. 698 -79 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING THE AWARD OF ONE CONTRACT IN EXCESS OF $5,000.00 FOR THE GENERAL REHABILITATION WORK IN THE COM- MUNITY DEVELOPMENT PROGRAM. WHEREAS, under the provisions of Ordinance No. 5872 -75, passed by the South Bend Common Council on August 11, 1975, all contracts in excess of $5,000.00 must be approved by the Common Council; and WHEREAS, low bids for the general rehabilitation work under the Community Development Housin€ Program have exceeded $5,000.00. NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of South Bend, Indiana; 1. That approval be granted to the Redevelopment Commission of the City of South Bend, Indiana, to enter into a contract with the Charles Brown Maintenance Co., Inc. for the general rehabilitation work on the following properties: Lot #175 W &K Replat Wengers 6th Add. 605 E. Broadway $1,513.00 Lot #3 Elders First Addition 408 E. Keasey $ 802.00 Lot #107 East Half Bowman's Place Add. 310 E. Dubail $2,259.00 Lot #25 Elder Place Addition, Excepting 59' South End 316 E. Paris $ 90.00 Lot #16 Kirbys Addition 415 E. Ohio $ 707.00 $5,871.00 2. That this resolution shall be in full force and effect from and after its adoption by the Common Council and its approval by the Mayor of the City of South Bend, Indiana.. is /Roger 0. Parent Member of the Common Council _1