09-26-38 Council Meeting Minutes

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President, Uommon Council ATTEST: ulty uIeric Presented by me to the Mayor of the City of South Bend, Indiane, , 1938 Approved sand signed_ .1 193 PIERCE AND ASSOCIATES PUBLIC UTILITY ANALYSTS INDIANAPOLIS, INDIANA AGREEMENT City uIerx Mayor WHER'TAS, the City of South Bend, St. Joseph County, Indiana, hereinafter known as the First Party owns and successfully operates its local Water Works utility; and IMERE9.S the City and its citizens are interested in finding out whether there would be any �d.venta�als in city ownership of the local electric utility and are especially inter °ested in sprendirg the tax base and making a reduction in t =xes on real estate, and WHEREAS, PIERCE AND ASSOCIATES, Public Utility Analysts, of Indianapolis, Indiana, herein after known es Second Party heve twenty -five years experience in.appraisa.ls and accounting and financiel analysis of public utility properties and are competent to sGcist the city; and have succeeded can behalf of cities in Indiana in defending the Indiana ststutes cover- ing acquisition of public utilities by cities by legal condemnation proceedure, and secured for the City of Lebenon, Indiana, the Indiana Supreme Court decision of Nay 11th, 1938, upholding the right of the City (after favor..ble referendum vote of the people at a special election) to acquire - public utility property by lega_1 condemnation, NOW T HF'EFORE, spid First party does hereby agree to and does retain said Second Pprty to pre- pare and furnish the city rnd its citizens with Preliminary Report showing the advantages to the City send. its citizens of operation under city ownership of the local electric utility pro- perty end whether said utility property could be paid for out of utility earnings without cost �o the civil city, and any other pertinent details necessary for the city end the citizens to know and to consider. When and if the city should proceed (after an election is held) with the acquisition of the local electric utility property Second Party shall furnish all legal, technicalnd other services of proceedure required to accomplish acquisition by the City cf the electric utility property. It is understood and agreed that if the city does not a_cqu.ire said electric utility property no compensation whatever shell be paid by the First Party to Second Party. If said electric utility property is acquired by the city the consideration to be Paid Second Party by First Party shell be ws follows: For leg-el. services one per cent, and for technical and other services one per cent of the price Pt which said. utility is acquired providine7 said acquisition is accomplished without any appeal from the decision of the Circuit Court; For any appeel from the Circuit or other court the consideration shall be an additional one half of one per cent for legal services end one hs.lf of one percent for technical and other services: Said compensation shall be payable only from proceeds of Revenue Bonds, when and if issued. When and If said acquisition is accomplished, then said First Party Agrees to issue and deliver to Second Perty revenue bonds necessary to provide proceeds to pay for said utility -property end its acquisition cost and Second Part agrees to purchase said revenue bonds at per, the revenue bond interest coupon rate to be 4% per year. (this bond interest rate is based on the present financial market and in case of war, or legislation making such bonds taxable, or other conditions causing upset in revenue bond market, said First end. Second Psrties agree to make supplemental bond agreement.) Said Second. Party agrees to start work immediately upon acceptance of this Agreement by the City sand Second Party agrees to continue working for and. in behalf of the City until the ec- quiFition proceedure is terminated.. IIN WITNESS WHERTOF, APPROVED: the parties hereto 1939 . , 1938 heve set their hands and seals this day of CITY OF SOUTH BEND, INDIANA First Party Board of Public Works-