08-08-05 Council Meeting Minutes

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REGULAR MEETINGAUGUST 8, 2005 C. O-T-D Corporation had lost key personnel in accounting and other levels due to downsizing, including but not limited to the Chief Operation Officer, Mr. William Guinn. D. Mr. Don Ureel, Chief Financial Officer, having suffered a stroke December 1999 had retained asset documentation in the Hinsdale, IL office. E. The assumption of accounting records from Mr. Ureel’s office in Hinsdale, IL in June 2001, it became apparent that a major audit of our fixed assets (personal property) was required. F. The audit required going through invoices and cancelled checks back to 1972 in order to identify which equipment was still in use, what was the original cost and purchase date of each. This process changed the number of identified assets from 36 (lumped by annual dollars) to 254 (individual items) for calendar years 1972 to 1998. G. The combined volume of records being reviewed, installation and initialization of the new software and lack of personnel delayed preparation of the Application for Deduction from Assessed Valuation for New Manufacturing Equipment in Economic Revitalization Area. H. The responsibility for these tasks lay on one (1) person, along with the continual daily accounting functions. SECTION II. The foregoing facts, taken together, lead the Common Council to conclude that compelling reasons exist to waive the filing deadline. SECTION III. The Common Council hereby waives the filing deadline of May 15th 2002 and pursuant to Indiana Code 6-1.1-12.1-4.8 adopts this resolution that authorizes acceptance. s/Charlotte D. Pfeifer Member of the Common Council Councilmember Puzzello, Chairperson, Community and Economic Development Committee, reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with a favorable recommendation. Ms. Jean Chapman, Controller, OTD Corporation, 3722 Foundation Court, South Bend, Indiana, made the presentation for this bill. Ms. Chapman advised that the OTD Corporation was approved for a five-year personal property tax abatement on May 11, 1998, through resolution number 2621-98. OTD filed their 2002 annual deduction application with the State of Indiana late. The filing deadline was May 15, 2002, the petition was signed on May 29, 2002 and it was received by the Department of Local Government Finance of June 3, 2002. The abatement was denied by the State. OTD is requesting a resolution from the Common Council waiving the filing date for the Deduction Application. The OTD Corporation purchased a new accounting and manufacturing software program and lost key personnel in accounting and other levels due to downsizing, including the Chief Operation Officer, Mr. William Guinn. Mr. Don Ureel, Chief Financial Officer, suffered a stroke in December 1999 and had retained asset documentation in the Hinsdale, IL office. In June 2001, OTD gained the assumption of accounting records from Mr. Ureel’s office in Hinsdale, IL. It became apparent that a major audit of the company’s fixed assets (personal property) was required. The audit required going through invoices and cancelled checks back to 1972 in order to identify which equipment was still in use, what was the original cost and purchase date of each. Ms. Chapman stated that the combined volume of records being reviewed, installation and initialization of new software and lack of personnel delayed preparation of the Application for Deduction from Assessed Valuation for New Manufacturing Equipment. A Public Hearing was held on the Resolution at this time. 19