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HomeMy WebLinkAboutApproving the Leasing of Waterworks Facilities of Clay Utilities IncORDINANCE No. 7389 -84 Passed by the Common Council of the City of South Bend, Indiana • IRENE K. GAMMON Presented by me to the Mayor of the City of South Bend, Ind'ana Approved and signed by October 9, i9 84 1 Clerk of Common Council IRENE K. GAMMON M-01, M Clerk BILL NO. 1611.14 " 0 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING THE LEASING OF WATERWORKS FACILITIES OF CLAY UTILITIES, INC. AND APPROVING THE CURRENT RATES AND CHARGES OF CLAY UTILITIES, INC. STATEMENT OF PURPOSE AND INTENT: Negotiations have been conducted for the leasing of the waterworks facilities currently owned and operated by CLAY UTILITIES, INC., in its Service Area being that portion of Clay Township, St. Joseph County, Indiana, lying North of the Indiana East -West Toll Road, West of Hickory Road extended and East of the center line of the New York Central right-of-way, plus that portion of the Town of Roseland lying South of said Toll Road pursuant to the provisions of Z.C. 8- 1.5 -2 -27 through 32. CLAY UTILITIES, INC. , is a public utility holding an indeterminate permit for the operation of a waterworks facility and as such is authorized by the above mentioned statutes to lease said portion of its waterworks facilities to the CITY OF SOUTH BEND, INDIANA, and has assisted in the drafting and preparation of a proposed lease for said waterworks facilities; and A notice of a hearing on the proposed lease and the approval of the current rates and charges was given by publication in The South Bend Tribune, South Bend, Indiana, and said hearing has been held in accordance with said notice; NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, THAT: Section 1. The proposed lease with Clay Utilities, Inc., as Lessor, provides for a fair and reasonable rental and further that the execution of said lease is necessary and wise. Section 2. The current rates and charges of Clay Utilities, Inc., as approved by the Public Service Commission of Indiana, and as printed in the Notice of the Hearing for Clay Utilities, Inc., are now found to be nondiscriminatory, reasonable and just and are hereby approved and adopted for the use of the City of South Bend as Lessee under the terms of said lease. Section 3. The Clerk of the City of South Bend, Indiana is authorized and directed to attest said lease and to initial and date a copy of the lease and to place the same together with the current rates and charges of Clay Utilities, Inc., in the minute book immediately following the minutes of the meeting at which this Ordinance is passed, and said lease together with the current rates and charges of Clay Utilities, Inc., are part of this Ordinance as fully as if the same were set forth herein. Section 4. The President of the Can Council is hereby authorized and directed to execute the aforesaid lease on behalf of the Common Council of the City of South Bend, Indiana. Section 5. The President of the Common Council is authorized to ate all necessary certificatinnc _ r1nr,1mAnt -c =na 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.