02-14-77 Council Meeting Minutes

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REGULAR MEETING FEBRUARY 14, 1977 REGULAR MEETING RECONVENED (CONTINUED Mr. Parker indicated that all the Council was doing was setting this for public hearing on March 14, 1977. Mr. Manion indicated he felt this resolution was overbroad and did not require this type of detail. He said the purpose was to set up the notice for a public hearing and to go into the other detail was liable to put an implied contract and obligation on the Council. He said if they were trying to set up a notice to the general public only one or two paragraphs were needed. He said he did not think the purpose of the statute was for the Council to commit itself Mrs. Jane Swan, 2022 Swygart, asked when this matter was made known to the Council. Council President Parent indicated they were told there was some thought that the City would purchase Clay Utilities, on February 7. Mrs. Swan indicated she did not see that there is a need to pur- chase this utility, as indicated in the resolution. She said she thought this was a bad resolu- tion and was coming on too fast. Mayor Peter J. Nemeth said he thought this purchase was indicate to the Council last fall. He said that Mishawaka used the same resolutio4 and he would say that if the Council was at all interested in purchasing the utility they should pass this resolution. Mrs. Gleason asked if there was no middle road. She indicated to the Mayor that he was saying either pass this resolution or quit. Mayor Nemeth indicated that was exactly what he was saying. Mrs. Gleason indicated she felt there was a real push and she did not think it was necessary to move that quickly. Council Member Dombrowski asked why Clay Utilities did not start with South Bend, why they started with Mishawaka. Mayor Nemeth said that Mishawaka purchased the utility to help service the mall. He said they approached the City last fall and indicated there was a deadline. He said that at that time he did not know if the City would be interested. He said that in October the City first started to look at this seriously. He said when they received the consultant's report indicated it was a good price, they got down to serious business. Counci: Member Adams indicated that the question will be the interpretation of the lessor if this resolu- tion would not be passed. She asked if Mr. Fitterlinq was in attendance at the meeting so he would tell the Council what it would mean. Mayor Nemeth asked what difference it makes. Council Member Adams indicated she had consulted an attorney who indicated that suit could be filed be- cause the Council indicated there was a need. She asked if it would be possible to hold a specia: meeting on February 22 in order that the Council could have more time to study this matter. The Mayor indicated there would be no reason to hold such a meeting. Council Member Kopczynski asked how much money has been expended thus far on this purchase. Mr. John Stancati, Director of Utilities, indicated approximately $5,000 in the hiring of a consulting firm. Council President Parent indicated the entire procedure has been a debate on the definition of this resolution. Mayor Nemeth indicated that the City had annexed certain parts of Clay and German Township and they lost the court case because the City could not provide utilities. He said this was a profit making operation and the City will come out ahead. Council Member Taylor indicated it was obvious that the Council had not made up its mind about this purchase. He said it was obvious that a numl of Councilmen wanted to conduct an investigation of the entire matter. He said if the Council made a poor deal for the City they would be severely criticized. Council Member Serge asked if the City was selling water to Clay. Mr. Stancati indicated the City was selling water to Clay. He said the City could handle this utility without any additional manpower. Council President Parent indicated he disagreed with paragraph two of the resolution, as well as paragraphs three four, five and six. Council Member Adams made a motion to strike out paragraphs two, three, four, five and six, remove the word "and" in the first paragraph, as well as "be it further re- solved"in the last paragraph and substitute Now, therefore, be it resolved, seconded by Council Member Dombrowski. The Mayor indicated they would have to check with bond counsel and if they would not accept this resolution as amended he would call a special meeting. Council Member Kopczynski indicated that this was just another case of matters coming before the Council and the Council does not have time to get into it thoroughly. Council Member Miller indicated he dis- agreed. He said he had time to read this matter and he agreed with the resolution. Council President Parent indicated that this proposed project would cost two million dollars and the Council should explore it very thoroughly. The motion to amend carried, with Council Member Miller opposing. Mr. Thomas Brunner, City Attorney, asked that the amended resolution be read into the record. Council Member Adams read the amended resolution as follows "WHEREAS, negotia- tions have been conducted over an extended period of time between the Administration and Clay Utilities, Inc., culminating in a form of Lease for waterworks facilities and a form of Lease for sewage disposal facilities from Clay Utilities, Inc., which Leases have been approved by the Utility. Now, Therefore, be it Resolved, that the City Clerk cause a notice to be prepared in due legal form of the hearing on the proposed leases for waterworks facilities and sewage dis- posal facilities with Clay Utilities, Inc.; that the hearing be had at the regular meeting of this Council to be held on the 14th day of March, 1977, at the hour of 7:00 p.m. (E.S.T.); that a copy of the proposed leases be placed on public file in the office of the City Clerk starting tomorrow and remain available to the public until the time of the hearing. Council Member Taylor made a motion to adopt the resolution, as amended, seconded by Council Member Dombrowski. The resolution was adopted by a roll call vote of nine ayes (Council Members Serge, Szymkowiak, Millet Taylor, Kopczynski, Adams, Dombrowski, Horvath and Parent). RESOLUTION A RESOLUTION APPROVING A FIFTH AMENDMENT TO A CONTRACT BETWEEN THE SOUTH BEND CITY WATER WORKS AND SEWAGE DISPOSAL PLANT AND CLAY UTILITIES, INC. FOR FURNISHING OF WATER AND SEWAGE TREATMENT TO THE CLAY TOWNSHIP AREA IN ST. JOSEPH COUNTY, INDIANA. A public hearing was held at this time on the resolution. Mr. Robert Parker, Chief Deputy Attorni indicated this was a proposed fifth amendment to the original contract between Clay Utilities and the City. He said the effect of this amendment would be to provide for continuation of good fait] negotiations for acquisition of a lease - purchase agreement for Clay water works and sewage facili• ties. He said this would also provide for the acquisition of wells and land formerly owned by Aqua, Inc., and now owned by Clay Utilities for $92,985. He said this would release the Clay Utilities water franchise and sewer certification area in Clay, German, Center and Penn Townships to the City and transfer this certification area and franchise, conditional upon acceptance of the lease - purchase agreements. He said this would release from the water service and sewer service areas the tract of land proposed as a voluntary annexation adjacent to Laurel Road. He said this release is irrespective of the approval of the lease - purchase agreements.