11/10/2015 Board of Public Works Meeting

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REGULAR MEETTNG NOVEMBER 10, 2015 394 s/ Gary A. Griot s/ David P. Rules s/ Elizabeth A. Maradik s/ Therese J. Dorau s/ James A. Mueller ATTEST: s/Linda M. Martin, Clerk ADOPT RESOLUTION NO. 70-2015 — A RESOLUTION OF THE BOARD OF PUBLIC WORKS OF THE CITY OF SOUTH BEND, INDIANA. RECOMMENDING THE REFUNDING OF THE CITY'S OUTSTANDING REVENUE BONDS OF 2006, SEWAGE WORKS REVENUE BONDS OF 2007 AND SEWAGE WORKS REVENUE BONDS OF 2007B, AND THE ISSUANCE AND SALE OF REVENUE BONDS TO PROVIDE FUNDS FOR THE PAYMENT THEREOF, AND OTHER MATTERS IN RESPECT THERETO Attorney Phil Faccenda; Barnes and Thornburg, stated this resolution is for the re -funding of 2006/2007 bonds. He noted the anticipated savings are an average of 4.5% noting the placement in a private institution should allow for a 2.25% interest rate and a $3,000,000.00 gross savings. Mr. Faccenda stated this should also allow for the freeing up of some dollars in the reserve sewage works bonds. Lastly, he added, this will shave one (1) year off of the 2006 bond maturity and two (2) years off of the 2007 bond maturity. Upon a motion made by Mr. Relos, seconded by Ms. Maradik and carried, the following Resolution was adopted by the Board of Public Works: RESOLUTION NO. 70-2015 A RESOLUTION OF THE BOARD OF PUBLIC WORKS OF THE CITY OF SOUTH BEND, INDIANA, RECOMMENDING THE REFUNDING OF THE CITY'S OUTSTANDING REVENUE BONDS OF 2006, SEWAGE WORKS REVENUE BONDS OF 2007, AND SEWAGE WORKS REVENUE BONDS OF 2007B, THE ISSUANCE AND SALE OF REVENUE BONDS TO PROVIDE FUNDS FOR THE PAYMENT THEREOF, AND OTHER MATTERS IN RESPECT THERETO — WHEREAS, the City of South Bend, Indiana (the "City") has heretofore established, constructed and financed a sewage works (the "Sewage Works") and now owns and operates the Sewage Works, by and through its Board of Public Works (the `Board"), pursuant to I.C. 36-9- 23, as amended, and other applicable laws. WHEREAS, the Board has determined and desires to recommend to the Common Council of the City (the "Common Council") that it is beneficial to refund the City's outstanding Sewage Works Revenue Bonds of 2006 (the "2006 Bonds"), Sewage Works Revenue Bonds of 2007 (the "2007 Bonds") and Sewage Works Revenue Bonds of 2007B (the "2007B Bonds"), as more particularly described herein, to obtain a reduction in interest payments and effect a savings to the City (collectively, the "Refunding"). WHEREAS, the Board has determined that to provide funds necessary to pay for the costs of the Refunding, it will be necessary for the City to issue Sewage Works revenue bonds in a principal mount not to exceed Fifteen Million Seventy -Five Thousand Dollars ($28,000,000). WHEREAS, the City has previously issued bonds (the "Prior Bonds") payable from the net revenues of the Sewage Works, all as described in the form of the 2015 Bond Ordinance (as defined below), pursuant to the Prior Ordinances (as defined in the 2015 Bond Ordinance). WHEREAS, the Board deems it advisable and recommends to the Common Council that the City issue revenue bonds payable from the revenues of the Sewage Works in an original amount not to exceed Twenty -Light Million Dollars ($28,000,000) (the "2015 Bonds"), for the purpose of providing, together with other funds on hand with the City, for the payment of (i) the Refunding, and (ii) the costs of issuing such 2015 Bonds. WHEREAS, the Prior Ordinances permit the issuance of additional bonds payable from the revenues of the Sewage Works and ranking on a parity with the Prior Bonds for the purpose of financing the complete or partial refunding of any of the Prior Bonds, including the 2006 Bonds, the 2007 Bonds and 2007B Bonds, provided certain conditions can be met, and the Board has determined, based upon information provided to the Board by the Financial Advisor, that the