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HomeMy WebLinkAbout04/01/85 Board of Public Works Minutes2 REGULAR MEETING APRIL 1, 1985 The regular meeting of the Board of Public Works was convened at 9:36 a.m. on Monday, April 1, 1985, by President John E. Leszczynski, with Mr. Leszczynski, Ms. Katherine G. Barnard and Mr. Michael L. Vance present. Also present was Assistant City Attorney Carolyn V. Pfotenhauer. APPROVE MINUTES OF PREVIOUS MEETING Upon a motion made by Mr. Leszczynski, seconded by Mr. Vance, and carried, the minutes of the March 25, 1985, regular meeting of the Board were approved. OPENING AND AWARD OF BIDS - SALE OF ABANDONED VEHICLES This was the date set for the receiving and opening of sealed bids for the sale of approximately ten (10) abandoned vehicles, six (6) of which are valued at over $100.00 and all of which have been stored at Steve and Gene's Auto & Truck Salvage and Repair, 3109 South Gertrude Street, South Bend, Indiana. The Clerk tendered proofs of publication of Notice in the South Bend Tribune and the Tri-County News which were found to be sufficient. The following bids were opened and publicly read: Mr. Charles E. Teske 54830 Pear Road South Bend, Indiana Vehicle Nos. 4 $ 40.50 8 358.00 10 30.50 Mr. Warren Lechtner, General Manager Metal Resources Corporation 3113 South Gertrude St. South Bend, Indiana 46680 Vehicle Nos. 1 $25.00 Vehicle Nos. 6 $25.00 2 25.00 7 25.00 3 25.00 8 25.00 4 25.00 9 25.00 5 25.00 10 25.00 Mr. Gene Hancz Steve & Gene's Auto Truck Salvage 3109 South Gertrude St. P.O. Box 2883 South Bend, Indiana 46680 Vehicle Nos. 1 $20.25 Vehicle Nos. 6 $ 7.25 2 15.25 7 15.25 3 15.25 8 225.25 4 55.25 9 10.25 5 15.25 10 55.25 J & D Transportation, Ltd. 215 South Bend Station South Bend, Indiana 46624-0215 Vehicle Nos. 8 $75.00 10 75.00 REGULAR MEETING APRIL 1, 1985 Mr. Travis Lack Hurwich Iron Company 1610 Circle Avenue South Bend, Indiana Vehicle Nos. 1 $26.00 Vehicle Nos. 6 $20.00 2 23.00 7 23.00 3 26.00 8 23.00 4 20.00 9 26.00 5 26.00 10 26.00 Upon a motion made by Mr. Leszczynski, seconded by Ms. Barnard and carried, the above bids were referred to the Department of Code Enforcement for immediate review and recommendation in order that an award could be made prior to adjournment of the meeting. Following that review, upon a motion made by Ms. Barnard, seconded by Mr. Vance and carried, the following bids were awarded: Charles Teske - Vehicle No. 8 $358.00 Metal Resources Corp. - Vehicle Nos. 2 $ 25.00 6 25.00 7 25.00 TOTAL: $ 75.00 Steve & Gene's - Vehicle No. 4 $ 55.25 J & D Transportation - Vehicle No. 10 $ 75.00 Hurwich Iron Co. - Vehicle Nos. 1 $ 26.00 3 26.00 5 26.00 9 26.00 TOTAL: $104.00 GRAND TOTAL: $667.25 OPENING OF PROPOSALS - FINANCING OF MASTER LEASE PURCHASING AGREEMENT This was the date set for receiving and opening of sealed proposals for the Financing of Master Lease Purchasing Agreement. The Clerk tendered proofs of publication of Notice in the South Bend Tribune and the Tri-County News which were found -to be sufficient. Board Attorney Carolyn V. Pfotenhauer advised that on March 8, 1985, Notices were sent to twenty-five (25) companies inviting them to bid on the above referred to Lease Purchasing Agreement. The Notice originally required bidders to submit their bid on the forms prescribed by the State Board of Accounts accompanied by a Non-Collusivion Affidavit and a Certified Check or Bid Bond in an amount of not less than 5% of the bid. Because of concerns voiced by the companies receiving bid notices regarding the bidding requirements, it was determined that the Board would waive all formal state statute bidding requirements and accept proposals/ quotations from the companies solicited. It was noted that all companies receiving the original notice were notified by telephone of this waiver of formal bidding requirements. Further, it was noted that any bid security submitted with the proposals received would be returned to the company immediately The following proposals for the $2,000,000.00 Financing of Master Lease Purchase Agreement were opened and publicly read: 1 1 REGULAR MEETING APRIL 1, 1985 BANKERS LEASING ASSOCIATION INCORPORATED Mr. Karl Berliant 155 Revere Drive Northbrook, Illinois 60062 TERM: Six (6) years commencing on January 15, 1986 LEASE PAYMENTS: Twelve (12) equal semi-annual payments payable January 15th, and July 15th of each year, commencing on January 15, 1986 at the rate of $106.83 per $1,000 of total cost of equipment (payment is calculated by multiply- ing a factor of .10683 times the exact contract price.) Example: Total contract price = $2,000,000 Factor = x.10683 Payment = $213,660.00 NOTE 1: Lease payments commencing January 15, 1986 include principal and interest and will remain fixed for the full term of the lease. NOTE 2: The first payment due on January 15, 1986 will be increased by the amount of accumulated interest due on outstanding principal amount representing payments made to vendors for equipment delivered and accepted by the City in accordance with the paragraph below titled "Vendor Progress Payments". VENDOR PROGRESS PAYMENTS It is understood that Lessor may be required by specific Vendors to make payments on account of all or any part of the Equipment prior to the Commencement Date of the Lease if the equipment is delivered and accepted by the Lessee (City). In the event that Lessor shall make any such pay- ments, Lessee shall pay to Lessor as additional rental with respect to such Equipment (in addition to all rentals specified above) an amount equal to interest on such progress payments, from the date of payment by Lessor to the Commencement Date at a rate per annum equal to 2% above the lowest rate of interest charged by Bank of America National Trust and Savings Association from time to time on 90 day unsecured loans to its largest and most sub- stantial commercial and industrial borrowers ("Prime Rate"). The Prime Rate shall be determined as of the first day of the calendar month prior to the due date of such additional rental. Such additional rental shall be payable on January 15, 1986. ADDITIONAL CONDITION OF PROPOSAL: This proposal and the rental rated quoted are conditioned on existing Federal regulations as they affect the tax exempt status of interest earned on the financing of lease purchase agreements. Should these regulations be changed at any time prior to January 15, 1986, Bankers Leasing Association, Inc. reserves the right to increase the rental rate reflecting the loss of any tax exemption earned. t REGULAR MEETING APRIL 1, 1985 EDEN HANNON & COMPANY Lisa A. Cole, Vice -President Municipal Markets 101 North Columbus Street Alexandria, Virginia 22314 FUNDING DATE: LEASE TERM: July 15, 1985 Six years PAYMENT MODE: Semi-annual in arrears lease payments on the full principal amount beginning January 15, 1986 and for eleven (11) successive periods. FUNDING RATE: Option A - 8.349% 1/; net rate - 6.13% ( rate after offsets by interest earnings as a result of escrow fund) 2/ Option B - 8.349% 1/; net rate - 7.98% ( rate after offset by interest earnings as a result of escrow fund)2/ 1/ This rate will be indexed to the Bond Buyer 20-Bond Index and will be fixed at funding. 2/ See attachments for assumptions, calcula- tions, gross and net payments. TRANSACTION STRUCTURE: This transaction will be structured as a master lease -purchase agreement. Lessee will make timely and complete remittance of the lease payments due under the terms of the lease agreement. FUNDING STRUCTURE: Upon completion of the necessary documentation, the Lessor will fund the transaction by selling the transaction to public or private investors. The monies will be placed into escrow with a trustee chosen by the Lessee and acceptable to the Lessor. The trustee will disburse funds to the vendors upon notification of Equipment acceptance by the Lessee and upon agreement of the Lessee, Lessor, and trustee. ISSUANCE EXPENSES: RESERVE FUND: The Lessee agrees to pay the expenses associated with issuing this transaction. Expenses will include bond counsel, trustee, and legal for lessor counsel. Such expenses are not expected to exceed $15,000. At Lessee's option, a reserve fund equal to 15% of the total issuance can be established. Funds deposited therein will be invested and reinvested in acceptable money market instruments with earnings accruing to Lessee to offset lease payments. At lease termina- tion, the principal of the reserve fund can be used to make the final payment, thereby further reducing the net effective rate. 1 1 2 REGULAR MEETING APRIL 1, 1985 RE -INVESTMENT OF ESCROWED FUNDS: The escrowed funds for Equipment payments will be reinvested in money market instruments acceptable to the Lessor, Lessee and trustee until delivery and acceptance of the Equipment. The proceeds of the escrow earnings will be used to pay trustee's fees and to offset the Tease payments due under the lease agreement. ACCEPTANCE: Lessee must acknowledge acceptance of this offering letter by signing and returning this copy of the proposal to the Lessor by April 30, 1985. This proposal expires on that date at 5 p.m. E.S.T. GELCO MUNICIPAL SERVICES David A. Glessner, Vice -President Municipal Sales Manager Three Gelco Drive Eden Prairie, Minnesota 55344 Offer is open for acceptance until August 1, 1985. Any extension must be approved by Gelco Municipal Services. Program 1 - Floating Rate Financing Until Equipment Delivery Gelco offers the City financing at a floating rate, indexed against the Credit Markets 20 Bond Index or other mutually acceptable index. The effective interest rate will be 94% of the 20 Bond Index as of the date of delivery and acceptance. Upon acceptance the implied interest rate will then be fixed throughout the five year lease term. Pay- ments may be made monthly, quarterly, or semi-annually, at the City's option. This Master Lease line will be access- ible to the City for a period of one year following formal award, or until the $2 million in acquisitions have been made. Upon receipt of each final lease payment from the City, respective equipment may be purchased by the City for $1.00. The 20 Bond Index stands at 9.82 as of March 21, 1985. This would translate to an effective simple interest rate to the City of 9.23%, for current equipment acquisitions. Program 2 - Advance Fund, Fixed Rate Gelco also offers an advance funding program, enabling the City to lock in a rate for all acquisitions, irrespective of delivery timing, at time of funding. A basic des- cription of an advance funding program is attached for your reference. The cost of financing under this program would float until establishment of the Equipment Acquisition Fund at 94% of the 20 Bond Index (or other mutually accept- able index). All equipment would then be financed for the entire five year lease term at the same fixed rate. A flexible payment schedule will be established to meet the City's requirements. Gelco assumes that any positive arbitrage earnings would accrue to the benefit of the City, although a trade of those earnings to Gelco for a reduced rate interest is also a possibility. Gelco also assumes that no debt reserve account would be established, although the City may want to consider this option, Gelco believes it would likely reduce the City's overall borrowing costs. REGULAR MEETING APRIL 1, 1985 MARYLAND NATIONAL TAX-EXEMPT FINANCE DIVISION Mr. Sandy M. Jordan Regional Marketing Representative -Nottingham Centre. 502 Washington Avenue Towson, Maryland 21204 TRANSACTION DESCRIPTION: This transaction will be structured as a "Master Lease" whereby an unlimited number of schedules can be added to a single Master Agreement. This agreement will be in effect for a minimum of one (1) year with options to renew for additional years. FUNDING: The Lessor will fund transactions as they arise during the course of each calendar year. The minimum size funding will be one hundred thousand dollars ($100,000). All transactions funded will be placed on an interim equipment schedule. At the end of each calendar quarter, the Lessor may, at its option, convert all interim equipment schedules to a final equipment schedule in accordance with the Table of Rates (attached). Should the Lessor not convert said interim schedules at the end of the calendar quarter, interim fundings will continue to be accumulated until such conversion takes place. The Lessor reserves the right to convert interim schedules to final equipment schedules, regardless of timing, in the event that accumulated interim schedules should equal or exceed two hundred and fifty thousand dollars ($250,000). INTERIM RATE: During the interim period, the Lessee will be required to make interim payments, comprised of interest only, at the Prime Rate plus two percent (2%). The Prime Rate referenced above shall be that of Mary- land National Bank. The interim rate will be adjusted as fluctuations in the Prime Rate occur. LEASE PAYMENTS: The Lessee will be required to make monthly lease pay- ments, each in arrears comprised of principal and interest, per the attached table of rates. Final lease rates will be established once the equip- ment is placed on a final equipment schedule. Said rate will be a percentage of the Twenty -Five (25) Revenue Bond Index as published weekly in The Bond Buyer. FIRST MUNICIPAL LEASING CORPORATION Cheryl L. McNeill 857 Grant Street Denver, Colorado 80203 nPTTnN T FMLC would deposit funds into an escrow account which would be administered entirely for the benefit of the City. Documentation would be specifically prepared for this 2? REGULAR MEETING APRIL 1, 1985 "Master Contract" for a term of six (6) years. Based on escrow fund and reserve fund earnings on balances expected to be paid for equipment which will deliver throughout the next fiscal year, the net rate would be approximately 7.9%. FMLC would anticipate a project schedule to define the entire use of the proceeds and would provide a schedule of payments based on a first semi-annual payment on January 15, 1986. This option has the advantage of fixing the interest cost of current rates rather than risking future rate changes. nPTinN 7 Separate drawdowns based on a "Master Contract" documenta- tion would be financed at the following rates: A. Equipment delivered within ninety (90) days of contract closing would be financed at a rate of 9.9% and equipment delivered after ninety (90) days from date of closing would be financed at a rate of 10.5% within the first year of the contract. or B. All equipment deliveries made within the first year of the contract would be financed at a rate equal to 102% of the weekly 20 Bond Buyer Index. The offered rates will be held firm for four months for acceptance and documentation by the City within that time. PITNEY BOWES CREDIT CORPORATION Richard L. Darnell, Account Executive 1011 East Touhy Avenue, Suite 365 Des Plaines, Illinois 60018 The amounts of repayment under the proposal agreement will probably vary somewhat due to the anticipated staggered dates of delivery; therefore, the City may consider an effective simple interest rate of 9.0% to be calculated on a semi-annual basis, to coincide with the due dates requested. TERM: The term of the Agreement shall commence on the date (the "Commencement Date") upon which the Equipment has been delivered to and accepted by Debtor and all other terms hereof shall have been met to the satisfaction of PBCC. Thereafter the Agreement shall continue in effect for an original minimum term of seventy-two (72) months. RENTAL: Debtor shall be required under the Agreement to pay twelve (12) consecutive installments of rental, each payable semi-annually, in advance, in an amount equal to 10.494% of the original cost to PBCC of the Equipment. The first payment shall be due on the Commencement date. This rate quotation is subject to adjustment at time of execution of each takedown based on the movement of yields on U.S. Treasury Maturity of five years. For every .25% increase or decrease in the weekly average yield of the five year maturities, as quoted in the Federal Reserve Statistical Release H.15 (519) for the week including the first day of the month in which the Agreement is to be closed, the interest rate used to compute the monthly payment factor will be increased or decreased by .012. If the yield of the applicable U.S. Treasury Maturity has increased or decreased by more than four percent, PBCC, at its option, may withdraw this rate quotation for the purpose of submitting a new, updated one. a, REGUL,Ax MEETING APR_a I, 1, 1985 EXPIRATION: Any approval by PBCC of the transaction contemplated hereby and any commitment by PBCC to enter into the Agreement shall expire on April 15, 1985, or such earlier time as Debtor may advise PBCC of its intent not to close said transaction. ACCEPTANCE: This Letter of Proposal shall be deemed accepted if executed by Debtor and -returned. to PBCC on or before March 15, 1985. FIRST CONTINENTAL LEASING CORPORATION Karen L. Larson Marketing Representative 81.0 Capital Bank Building 5307 East Mockingbird Lane Dallas, Texas 75206 LEASE TRANSACTION: The transaction would be structured as a lease -purchase agreement. The lease payments would be composed of principal and interest. LEASE STRUCTURE: Upon completion of the necessary documentation FCLC would place the monies needed to pay for the equipment into an Equipment Acquisition Fund, (escrow). This is estimated to be on or near July 15, 1985. The monies would remain in escrow until disbursed to pay for the equipment as it is delivered and accepted by the City. REINVESTMENT OF ESCROW FUNDS: The funds remaining in escrow would be reinvested in money market instruments acceptable to Lessee, Lessor and Trustee. Any interest earned in this account would accrue to the benefit of the Lessee. FIRST PAYMENT DUE: The first lease payment would be due six (6) months after escrow funding and semi-annually thereafter. This pay- ment is absolute and unconditional not -with -standing equipment delivery. LEASE TERM: 12 semi-annual payments. INTEREST RATE/PAYMENT AMOUNT: 9.98%/$225,523.57 This interest rate is calculated as the gross payments against the equipment cost. Any earnings from the escrow could be used to reduce lease payments and hence, lower effective interest rate. COMMITMENT FIRM: This commitment is firm, pending written receipt of notification of award to First Continental Leasing Corporation, until May 30, 1985 and a funding no later July 30, 1985. SECURITY PACIFIC CAPITAL MARKETS GROUP Charles D. Baker, Vice -President 410 17th Street, Suite 1150 Denver, Colorado 80202 Option A: Term: 6 years Payment Mode: Semi-annual lst payment due January 16, 1986 1 I REGULAR MEETING APRIL 1, 1985 Annual Percentage Rate: 9.36 Floating at 96% of the 20 Bond Index and fixed the week prior to funding. Special Requirement: Option B: Term: 6 years Fundings must be for an amount of $400,000.00 or more with the exception of the last funding. Payment mode: Semi-annual Annual Percentage Rate: lst payment due January 16, 1986 Special Requirement: Lease commences and entire funding amount (estimated at $2,000,000.00) to be deposited into an escrow on or before July 16, 1985. Benefit: Interest earned on the escrowed monies will accrue to the City. This additional income to the City should serve to lower the Annual Percentage Rate and provide a Net Effective Rate in the low 8% range. These rates are valid through July 15, 1985, subject to the following requirements: 1. Credit Review and approval for the City's last three years financial statements. 2. Proper execution of mutually acceptable documentation. SECURITY PACIFIC LEASING CORPORATION Edward J. Fleming, IV Lease Marketing Officer Regional Office: 2340 Des Plaines Avenue, Suite 106 Des Plaines, Illinois 60018 DELIVERY & TAKEDOWN: Between April 1, 1985 and December 31, 1985. LEASE TERM: Six (6) Years The Lease Term for each item of Equip- ment will commence on and as of the date of acceptance of said Equipment by the Lessee. RENTALS: Lessee would be required to make 12 equal consecutive semi-annual rental payments payable on January 15, 1986. As requested, no amount included in the overall financing package shall begin accruing until the equipment has been delivered, accepted, and funded. The rental factor and payment will be calculated on an interest rate of 8.39% (simple). INTEREST RATE: 8.39% (Simple) TYPE OF LEASE: This will be a municipal leasing transaction for the term under which the interest element of the rentals will not be subject to Federal (and State of California) income taxes. Fiscal Funding Language will be provided by the Lessor. REGULAR MEETING PRIL 1, 1985 ACCEPTANCE: Lessee must acknowledge its approval of this lease proposal by signing and returning the enclosed copy of this letter to Lessor by April 15, 1985. MARQUETTE LEASE SERVICES, INC. A subsidiary of Bank Shares, Incorporated ■ John Biezuns, President Sixth and Marquette Minneapolis, Minnesota 55480 Marquette Lease Services, Inc. is please to submit a tax- exempt lease proposal based on the following terms and conditions: Lease Type: Master lease/purchase financing agreement. Lease Term: Five (5) years. Lease Rate: 8.63% simple interest per annum. Payment Frequency: Shall be paid semi-annually in arrears (first due 6 months after Marquette funds escrow). Funding Amount: On or about May 1,.1985, Marquette will deposit $2,000,000 in an equipment escrow account at F&M Marquette National Bank in Minneapolis, Minnesota. These funds will be invested by the escrow trustee in short and medium term securities yielding approximately 8.50% (U.S. Treasury Bills; 13 and 26 week). These interest earnings will be paid to South Bend on a semi-annual basis. The equipment escrow account funds will be disbursed over several months (as long as 18 months may be taken to deplete this fund) as South Bend accepts equipment from vendors. Reserve Fund Amount: Simultaneous with Marquette's funding of the equipment escrow account, Marquette will deposit $300,000 in a special reserve escrow account. This special account is set up to enable South Bend to use Federal Arbitrage Regulations to borrow from Marquette at the stipulated lease rate (8.63%) and then invest those monies at a substantially higher interest rate to derive a "positive Arbitrage". This concept is described more fully in the following sections of this proposal. Payment Amounts: South Bend will make semi-annual principal and interest payments on the.$2,000,000 in the equipment escrow account. Each semi-annual lease payment will be in the amount of $250,463.74. South Bend will also make semi-annual interest payments on the $300,000 in the reserve escrow account. Each semi-annual interest payment will be in the amount of $12,945.00. Reserve Escrow Account: Immediately after Marquette deposits $300,000 into this special account, the escrow trustee will invest the $300,000 in 5-year Federal Home Loan Bank Bonds which currently yield,11.50%. The interest earnings from this safe (U.S. Government Agency) investment will be $17,250.00 every 6 months. This reserve escrow account will actually earn money for South Bend as follows: REGULAR MEETING APRIL 1, 1985 Reserve. Account Earnings Semi-annual interest earnings for South Bend $17.250.00 Semi-annual interest payment by City -12,945.00 Semi-annual net earnings for South Bend $ 4,305.00 Due to this positive arbitrage effect, the net effective lease rate will fall to 7.93% from completed many municipal leases 8.63%. using similar Marquette has techniques to reduce the "face rate" of a lease. In fact, Marquette has so much confidence in this approach that we guarantee that South Bend will realize a maximum net effective lease rate of 8.40%, and we're certain that your true rate will fall below that level. The $300,000 reserve escrow account balance will be returned to Marquette at the end of the 5-year lease term. Net Lease: South Bend will pay all costs and bear all obligations normally associated with ownership of equipment, to include all applicable taxes, maintenance, insurance, repairs and compliance with all laws. Financial Statements: This offer is subject to Marquette's receipt of the City's financial statements for the last 3 fiscal years. This offer is not subject to Marquette's acceptance of the City's financial condition. Additional Costs: Marquette's offer contains no additional costs other than those specifically identified in the proposal and the accompanying escrow and lease agreements. Marquette will not charge legal costs (other than your internal legal costs), placement, escrow, underwriting, sales commissions, administrative and printing fees. Pro -Rate Changes: Marquette realizes that South Bend's anticipated equipment needs may change and the City's cash needs may change accordingly prior to the funding of the lease. Therefore, Marquette will adjust its escrow funding amounts in accordance with your needs. The reserve escrow account deposit will equal 15% of the equipment escrow account deposit ($2,000,000 x 15% _ $300,000). Prepayment Option: South Bend will have the option to prepay the entire lease on any payment date for 102% of the then outstanding principal balance. South Bend may also purchase the equipment for $1.00 after payment the tenth semi-annual lease payment. Proposal Acceptance: If terms and conditions are acceptable, it is requested that the City sign and return the proposal to Marquette prior to May 1, 1985. This transaction must be completed and escrow must be funded by May 24, 1985. It was noted that Municipal Financial Corporation, Suite 200, 21001 West Watertown Road, Waukesha, Wisconsin,.advised that they decline to present a proposal at this time. Mr. Vance advised that his office will be looking not only at the interest rates quoted but also the options suggested by the companies. He further advised that he anticipated that a review of the proposals would take approximately three (3) to four (4) weeks. 3 REGULAR MEETING APRIL 1, 1985 Upon a motion made by Mr. Leszczynski, seconded by Ms. Barnard and carried, the above proposals were referred to the City Controller's office for review and recommendation. APPROVE COMMUNITY DEVELOPMENT CONTRACTS The following six (6) Community Development Contracts were presented to the Board for approval: NATIONAL BANK & TRUST COMPANY SOUTH BEND HOME IMPROVEMENT LOAN ACTIVITY TOTAL FUNDS TO BE DEPOSITED WITH AGENCY: $8,628.94 WESTERN STATE BANK SOUTH BEND HOME IMPROVEMENT LOAN ACTIVITY TOTAL FUNDS TO BE DEPOSITED WITH AGENCY: $215.45 VALLEY AMERICAN BANK & TRUST COMPANY SOUTH BEND HOME IMPROVEMENT LOAN ACTIVITY TOTAL FUNDS TO BE DEPOSITED WITH AGENCY: $15,349.60 ST. JOSEPH BANK & TRUST COMPANY SOUTH BEND HOME IMPROVEMENT LOAN ACTIVITY TOTAL FUNDS TO BE DEPOSITED WITH AGENCY: $21,694.97 TOWER FEDERAL SAVINGS AND LOAN SOUTH BEND HOME IMPROVEMENT LOAN ACTIVITY TOTAL FUNDS TO BE DEPOSITED WITH AGENCY: $15,686.18 1ST SOURCE BANK SOUTH BEND HOME IMPROVEMENT LOAN ACTIVITY TOTAL FUNDS TO BE DEPOSITED WITH AGENCY: $37,710.78 It was noted that these Contracts provide for the continuation of the South Bend Home Improvement Loan Program which began in 1975. The City of South Bend is the recipient of a grant under Title I of the Housing and Community Development Act of 1974, from the U.S. Department of Housing and Urban Development. The City has allocated $99,285.92 for a general loan insurance fund, commonly known as the South Bend Home Improvement Loan Program, to reimburse Consortium members for loan defaults under the Program. Members of the Consortium shall perform all services in accordance with the Project Description attached and made a part of the Contracts as Appendix I. Upon a motion made by Mr. Leszczynski, seconded by Ms. Barnard and carried, the above Contracts were approved and executed. APPROVE LEASE AGREEMENT BETWEEN THE BOARD OF PARK COMMISSIONERS AND THE CITY OF SOUTH BEND - 521 ECLIPSE PLACE (BUREAU OF HOUSING) Board Attorney Carolyn V. Pfotenhauer submitted to the Board for approval a Lease Agreement between the Board of Park Commissioners and the City of South Bend for the Kennedy Recreation Center, 521 Eclipse Place which is being occupied by the Bureau of Housing for use as office space. The Lease is for a period of five (5) years beginning on the lst day of April, 1985 and ending on the 31st day of March, 1990. Upon a motion made by Mr. Vance, seconded by Ms. Barnard and carried, the Lease was approved and and executed and forwarded to the Board of Park Commissioners for further processing. APPROVE CHANGE ORDER NO. 1 (FINAL) AND PROJECT COMPLETION AFFIDAVIT - RECONSTRUCTION OF RADIO ROOM (OLD CITY JAIL) IN MSF BUILDING AT 701 WEST SAMPLE STREET Mr. Leszczynski advised that Casteel Construction Corporation, 23086 West Ireland Road, P.O. Box 628, South Bend, Indiana, has 3 REGULAR MEETING APRIL 1, 1985 submitted Change Order No. 1 (Final) indicating that the contract amount be increased by $7,488.98 for a new contract sum including this Change Order in the amount of $91,488.98. It was noted that this Change Order indicates a change in ten (10) items. Additionally submitted was the Project Completion Affidavit indicating this newfinal cost. Upon a motion made by Mr. Leszczynski, seconded by Mr. Vance and carried, Change Order No. 1 (Final) and the Project Completion Affidavit were approved. REQUEST TO WITHDRAW BID ON FIRE DEPARTMENT EQUIPMENT REFERRED In a letter to the Board, Mr. John McKie, Sales Representative, William A. Pozzo, Inc., 3001 East 15th Place, P.O. Box M-98, Gary, Indiana, requested the withdrawal of his bid, submitted to the Board on March 25, 1985 for two (2) 100' Quint units for the Fire. Department, due to the company's inability to confirm specifications with a.primary vendor. Upon a motionmadeby Mr. Vance, seconded by Ms. Barnard and carried, the above request was referred to the City Attorney's office for review and recommendation. APPROVE LICENSE APPLICATIONS - RUBBISH AND GARBAGE Mr. Leszczynski advised that the following two (2) Rubbish and Garbage license applications have been received: 1. Michael Clark (Clark Trash Removal Service) 1146 W. Thomas, S.B. 2. Roosevelt Lacy, Jr. 2143 N. Elmer St., S.B. It was noted that inspections of the trucks to be used had been conducted by the Solid Waste Bureau and the applicants were found to be in compliance. Upon a motion made by Mr.,Leszczynski, seconded by Ms. Barnard and carried, the above license applications were approved and referred to the Deputy Controller's office for issuance. APPROVE LICENSE APPLICATIONS - SECONDHAND DEALER Mr. Leszczynski advised that the following two (2) secondhand dealers license applications have been received: NAME: BY: ADDRESS: FOR THE PURPOSE OF SELLING: NAME: BY: ADDRESS: FOR THE PURPOSE OF SELLING: GRANDPA'S GOLDMINE CYNTHIA BUSWELL 3602 Mishawaka Avenue Secondhand books/collectibles ANTIQUE WORLD ELMER LLOYD 1122 Mishawaka Used furniture Avenue . and antiques Mr. Leszczynski further advised that favorable recommendations have been received from the Bureau of Traffic and Lighting, Department of Code Enforcement, Police Department and Fire Department on the above applications. Upon a motion made by Mr. Leszczynski, seconded by Ms. Barnard and carried, the above license applications were approved and referred to the Deputy Controller's office for issuance of permits. 4 REGULAR MEETING APRIL 1, 1985 APPROVE TRAFFIC CONTROL DEVICES Upon a motion made by Mr. Leszczynski, seconded by Mr. Vance and carried, the following two (2) traffic control devices were approved: 1. NEW INSTALLATION, HANDICAP - 2801 Elwood Avenue. Requested by Frank Gish. 2. NEW INSTALLATION, NO TURN ON RED - Lafayette & Washington - Northbound to Westbound. (Conversion 2-way traffic on Washington.) APPROVE REQUEST FOR TEMPORARY STREET NAME CHANGES IN OBSERVANCE OF DYNGUS DAY AND SOLIDARITY DAY - APRIL 8, 1985 In a letter to the Board, Mayor Roger 0. Parent requested the following temporary street name changes be made on Monday, April 8, 1985, in observance of Dyngus Day and Solidarity Day: Ford Street, at Ford and Warren, to be named Dyngus Drive Hill Street, from Jefferson to Corby to be named Solidarity Avenue Upon a motion made by Mr. Vance, seconded by Ms. Barnard and carried, the above request was approved. APPROVE REQUEST OF SOUTHOLD DANCE THEATER FOR TRAFFIC ASSISTANCE FOR SPRING CHILDREN'S CONCERTS AT MORRIS CIVIC AUDITORIUM - APRIL 18, 19, 1985 In a letter to the Board, Mr. William Street, South Bend, Ii Theater, requested traffic coi Children's Concerts to be hel( April 18, 19, 1985. It was n< children will be attending the 9:45 a.m. and 12:30 p.m. each Mr. Joseph J. Pluta, Director, Edward I. Friend, Police Depai this request and recommend apj Leszczynski, seconded by Ms. I recommendation was accepted ai Lawrence J. Clifford, 115 North diana, on behalf of Southold Dance trol assistance for the Spring at the Morris Civic Auditorium on ted that thousands of local school concerts which are scheduled for day. Mr. Leszczynski advised that Division of Engineering and Captain tment Traffic Division have reviewed roval. Upon a motion made by Mr. arnard and carried, the above d the request approved. FILING OF NEW TAXICAB RATES - ALLIED CAB COMPANY . Mr. Leszczynski advised that pursuant to Municipal Code taxicab licensing requirements, Mr. Walter E. Jones, Owner, Allied Cab Company, has submitted to the Board for filing new taxicab rates to be effective May 1, 1985 as follows: $ 1.50 Flag Drop $ 1.00 Per Mile $12.00 Per Hour Waiting Time Upon a motion made by Mr. Leszczynski, seconded by Mr. Vance and carried, the above rates were accepted for filing as submitted. FILING OF ENVIRONMENTAL CLEAN-UP OF LOTS REPORT A report from the Department of Code Enforcement indicating a total of fifty-one (51) properties cleaned from March 25, 1985 to March 29, 1985, was submitted. Upon a motion made by Mr. Leszczynski, seconded by Ms. Barnard and carried, the report as submitted was filed. 1 REGULAR MEETING APRIL 1, 1985 135 FILING OF CERTIFICATE OF INSURANCE Upon a motion made by Mr. Leszczynski, seconded by Ms. Barnard and carried, the Certificate of Insurance for American Canoe Association, Inc., All Volunteers, Administrators, Officials, Coaches and Member Clubs, 20 Dyer Avenue, Collinsville, CT, was accepted for filing as submitted. APPROVE CLAIMS Deputy City Controller Carol M. Sanders submitted Claim Docket No. 7175 through Claim Docket No. 7661 and recommended approval. Upon a motion made by Mr. Vance, seconded by Ms. Barnard and carried, the claims were approved and the report filed. ADJOURNMENT There being no further business to come before the Board, upon a motion made by Mr. Leszczynski, seconded by Mr. Vance and carried, the meeting adjourned at 10:01 a.m. ATTEST: L-tJV Sandra M. M. Parmerlee, Clerk FJ ISAn E. Leszc y s i Katherine Barnard Mi hael L. Vance