05-28-02 Council Meeting Minutes

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REGULAR MEETING MAY 28, 2002 BY ORDINANCE NO. 8419 -93, CONCERNING THE ACQUISITION AND CONSTRUCTION OF EXTENSIONS, ADDITIONS AND IMPROVEMENTS TO THE WATERWORKS OF THE CITY OF SOUTH BEND AND THE ISSUANCE OF REVENUE BONDS TO PROVIDE THE COST THEREOF; SUPPLEMENTING AND AMENDING ORDINANCE NO 8801 -97, CONCERNING THE CONSTRUCTION OF IMPROVEMENTS TO THE WATERWORKS OF THE CITY OF SOUTH BEND AND THE ISSUANCE OF REVENUE BONDS TO PROVIDE THE COST THEREOF; SUPPLEMENTING AND AMENDING ORDINANCE NO. 9027 -99, AS AMENDED AND RESTATED BY ORDINANCE NO 9095 -00, CONCERNING THE CONSTRUCTION OF IMPROVEMENTS TO THE WATERWORKS OF THE CITY OF SOUTH BEND AND THE ISSUANCE OF REVENUE BONDS TO PROVIDE THE COST THEREOF; AND SUPPLEMENTING AND AMENDING ORDINANCE NO. 9247 -01, CONCERNING THE CONSTRUCTION OF IMPROVEMENTS TO THE WATERWORKS OF THE CITY OF SOUTH BEND AND THE ISSUANCE OF REVENUE BONDS TO PROVIDE THE COST THEREOF; AND THE COLLECTION, SEGREGATION AND THE DISTRIBUTION OF THE REVENUES OF SAID WATERWORKS, THE SAFEGUARDING OF THE INTERESTS OF THE OWNERS OF SAID BONDS, OTHER MATTERS CONNECTED THEREWITH Councilmember Coleman made motion to hear the substitute version of this bill as on file with the City Clerk. Councilmember Kelly seconded the motion which carried by a voice vote of seven (7) ayes. Councilmember Al "Buddy" Kirsits reported that the Utilities Committee met on this bill and due to the lack of a quorum sends it to the Council without a recommendation. Mr. Rick 011ett, City Controller, 14th Floor, County -City Building, South Bend, Indiana, made the presentation for this bill. Mr. 011ett advised that this bill concerns the Water Works bonds and amends the ordinances of 1993, 1997, 2000 outstanding bonds and the authorized and soon to be issued bonds of 2001. This bill will permit the City to fund a debt service reserve account with a surety bond. The debt service reserve fund is funded with a cash reserve as security for the bond holders. The actual substitution of the surety bond would be based on the economics of the individual surety agreement at that time. This would release the cash reserve to be used for water works projects and improvements and would be a one time source of funds. Mr. 011ett noted that the projects recommended would follow the normal appropriation procedure for approval by the Council. In response to questions from Councilmember Varner, Mr. 011ett stated that this action is a replacement of the debt reserve fund and it is a one time use of dollars. He also stated that he would inform the Council of the projects which will be funded with these dollars and noted that he distributed at the committee meeting this afternoon a list of prospective projects which would utilize these funds and which would have to be approved by the Council. This being the time heretofore set for the Public Hearing on the above bill, proponents and go it G