08-29-77 Council Meeting Minutes

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REGULAR MEETING AUGUST 29, 1977 REGULAR MEETING RECONVENED (CONTINUED He said these questions should be answered before final action was taken on this resolution. Mayor Nemeth indicated it would not be possible to answer all of these questions this evening. He indicated that the Administration did not know if the owners of Clay Utilities would be willing to sell. Council Member Taylor indicated that he felt the Council has always wanted to buy Clay Utilities and the only thing they have been debating has been the price tag. He in- dicated he felt 2.0 million was a fair price for the facility. Council Member Dombrowski read a statement as to why he changed his vote regarding the purchase of this facility. He said by voting for this resolution, he did not commit himself to annexing Clay Township. Council Member Horvath indicated he was not in favor of spending 2.0 million for a facility outside of the City. He said he could not see jeopardizing the surplus funds the citizens of South Bend have built up. He said if we use our City funds to subsidize this facility, then we will have to raise the water rates. Council Member Adams indicated she would like to wait and see if the price will drop further. She said she could not see spending $2,000,000 for a system that is supposedly in- adequate. Council Member Kopczynski indicated that the price was too high. He indicated that the Council has a Utilities Committee and he thought they should get into the funds of the South Bend Water Works. He made an amendment to the resolution to change the amount from $2,000,000 to $1,600,000, seconded by Council Member Horvath. The motion lost on a roll call vote of four ayes (Council Members Kopczynski, Adams, Horvath and Parent) and five nays (Council Members Serge, Szymkowiak, Miller, Taylor and Dombrowski). Council Member Szymkowiak made a motion to adopt the resolution, seconded by Council Member Taylor. Council President Parent indicated that by delaying this the Council's position has been proven correct. He indicated $1,200,000 was a reasonable price. He said the reduction of close to $300,000 was made possible by Council. He said that they were told that never, never would it be available at a lower price. He said there is no urgency to purchase Clay Utilities at the 2.0 figure. Council Member Adams indicated the Utilities Committee had sent a letter to the Administration regarding outside users of water and sewage, and if the contracts were fair and equitable to all. She said she would like to know whe the Committee will get an answer to their questions. Mr. McMahon, Director of Public Works, in- dicated they expect to have a reply to the Committee within a week. Council Member Horvath said he was sorry that Mr. Barkley did not get answers to his questions. He indicated that he would not approve any improvements to Clay Utilites, that would involve City taxpayers' money. A roll call vote was taken on the motion and the resolution passed by a vote of five ayes !(Council Members Serge, Szymkowiak, Miller, Taylor and Dombrowski) and four nays.(Council Members Kopczyns Adams, Horvath and Parent). RESOLUTION NO. 575 -77 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, TO ACQUIRE THE WATER FACILITIES OF RIVER COMMONS. WHEREAS, the Common Council of the CIty of South Bend, INdiana, finds that it is in the best interests of the city to furnish water and sewage disposal facilities to the area located in Clay Township, St. Joseph County, Indiana, commonly referred to as the Laurel Woods area, constituting an approximate 38 -acre tract of land; and WHEREAS, the Common Council now finds that the water facilities owned by South Bend Federal Savings and Loan Association of South Bend, Indiana, and known as the River Commons Utility, should be acquired by the city of the purpose of furnishing such water service at the price hereil stated. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, that SECTION 1. The City of South Bend, Indiana, acquire by purchase or by lease - purchase from South Bend Federal Savings and Loan Association of South Bend, Indiana, in the manner deemed most expedient the water service facilities known as the River Commons Utility in Clay Township, St. Joseph County, Indiana, and take such steps as are necessary to connect to the sewer services presently furnishing the River Commons Addition at a total price of One Hundred Eleven Thousand Dollars ($111,000.00), and that the city proceed forthwith to take such steps as are deemed nec- essary and appropriate to so accomplish the acquisition of such facilities by purchase or by lease. SECTION 2. This resolution shall be in full force and effect from and after its adoption the Common Council and approval by the Mayor. /s /Richard C. Dombrowski /s /Joseph T. Serge /s /Walter M. Szymkowiak /s /Terry S. Miller /s /Rogert G. Taylor A public hearing was held at this time on the resolution. Mayor Peter J. Nemeth indicated that this was related to the Laurel Woods site. He said the City would be required to furnish water and sewage facilities to Laurel Woods. He said River Commons has a waterworks and it would be cheaper to purchase this facility then to run our own lines. Mr. Phillip Barkley, County Council man, indicated he thought it should be established whether or not a separate utility was going to be established with this purchase and under what State statute this was authorized. Council President Parent asked if this would be an outright purchase from the Water Works Fund, are we going to have a separate facility. Mayor Nemeth indicated he could not answer that question to- night. Council Member Adams asked if any type of fiscal analysis was done on this proposed pur- chase. Mr. John.Stancati, Director of the Bureau of Water, indicated this was for the purchase o two wells, and includes all the water lines that go to every individual home. He said River Com- mons could furnish water to approximately three hundred homes. He indicated they could handle the Laurel Woods area with what they have now at that facility. Council Member Dombrowski made a motion to adopt this resolution, seconded by Council Member Szymkowiak. Council President Parent indicated he thought the price was not too bad for this facility. The resolution was adopted by a roll call vote of eight ayes and one nay (Council Member Horvath).