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by Resolution of the - Council. The effect of this amendment is four - <br />fold: <br />1) Provide for continuation of good faith negotiations for acquisition <br />of lease - purchase agreement for Clay water works and sewage <br />facilities, <br />2) Provide for the acquisition of wells and land formerly owned by <br />Aqua, Inc. and now owned by Clay Utilities for $9.2,985, this <br />being an acquisition separate from the Clay Utilities lease - <br />purchase agreements, <br />3) Release of the Clay Utilities water franchise and sewer certification <br />area in Clay, German, Center and Penn Townships to the City of <br />South Bend and transfer of this certification area and franchise. <br />This is being transferred conditional upon acceptance of the lease - <br />purchase agreements, <br />4) Release from the water service and sewer service areas. the tract <br />of land proposed as a voluntary annexation adjacent to Laurel Road. <br />This release is irrespective of the approval of the lease - purchase <br />agreements. <br />The extensive materials supplied to the Council show that the acqusition <br />of the Aqua facilities is in the amount of appraised value of the <br />facilities as the same were appraised by Murphy Consultants, Inc., <br />independent engineering firm retained by the City for the purpose of <br />making the appraisals. This purchase is in the amount of $92,985. <br />The proposed lease - purchase agreement for the sewage and water facilities <br />of Clay Utilities provides for a total payment of $2,100,000 over a <br />35 year period. Some annual payments would be $30,222 for the water <br />and $50,565 for the sewer lease purchase. This lease purchase is <br />$80,6:62 less than the appraised value and annual tariff revenues from <br />the Clay water and sewage facilities are equal to the annual -lease <br />rental payment.- <br />This 'entire acquisition is proposed under the provisions of 1975 <br />statutes, I.C. 19 -3 -11.5, providing for acquisition by a city of water <br />works facilities, and I.C. 19 -2 -5.5 providing for acquisitiorr of sewer <br />facilities. The procedures are provided in the time table submitted <br />and the terms of the lease agreements conform to the statutory require- <br />ments and have all been tentatively approved as to form b$- bond counsel <br />in Indianapolis. <br />Sincerely <br />dr , <br />t M. Parker - <br />Chief Deputy City Attorney <br />RMP:az <br />