01/15/90 Board of Public Works Minutes

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17 REGULAR MEETING JANUARY 13, 1990 The regular meeting of the Board of Public Works was convened at 9:33 a.m. on Monday, January 15, 1990, by Board President John E. Leszczynski, with Mr. Leszczynski, Mrs. Patricia E. DeClercq and Ms. Katherine Humphreys present. Also present was Assistant City Attorney Jenny Pitts Manier. APPROVE MINUTES OF PREVIOUS MEETING Upon a motion made by Mrs. DeClercq, seconded by Ms. Humphreys and carried, the minutes of the January 8, 1990, regular meeting of the Board were approved. ADOPT RESOLUTION NO. 1-1990 - RESOLUTION OF THE BOARD OF WATER WORKS COMMISSIONERS AND THE BOARD OF PUBLIC WORKS AUTHORIZING AN INCREASE TO THE WATER AND SEWER SECURITY DEPOSITS ASSESSED AGAINST CUSTOMERS OF THE SOUTH BEND WATER WORKS Mr. Joseph Agostino, Director, Water Works, was present and advised the Board that the Resolution submitted today increases security deposits for water and sewer service. He noted that the present security deposit schedule has been in effect for the last twenty-five (25) years. The new schedule is more in line with the current rates and charges and should eliminate a lot of delinquent unpaid final -outs. Mr. Agostino submitted to the Board a table showing computations of average water billings, average sewer billings, one -sixth annual customer charges and proposed deposits. Based on an average usage, the increase is less than one -sixth the estimated annual billing for each meter size and is in accordance with Order No. 37995 by the Indiana Utility Regulatory Commission and current sewer guidelines. In response to questions from the news media, Mr. Agostino noted that the rates will not effect old customers until they move to another location or establish additional service at another location. The rates will apply to all new customers. Current customers may meet the creditworthy criteria as explained in the Resolution and would then pay a.reduced rate of one-half (1/2) of the new rate. Board Attorney Jenny Pitts Manier noted that the Resolution outlines creditworthy criteria that would apply to new customers as well as current customers who would pay a reduced deposit should they qualify. Mr. Agostino stated that ninety-six per cent (960) of the service being provided is for meter sizes 5/8" to 111. The current security deposit for that size which is $12.00 is being increased to $40.00. Should the customer be proven creditworthy, the deposit would be one-half (1/2) or twenty dollars ($20.00). Mr. Leszczynski stated that one advantage of the new deposits is in regards to the individuals who do not pay their water bills. Currently the Water Works has to absorb bad debts and the less bad debts it has to absorb the lower the rates to customers. Mrs. DeClercq inquired what happens when an individual who has received a disconnect notice pays the account that is in arrears. Mr. Agostino noted that the Resolution does allow the department in this type of situation to ask current customers to increase their deposits to the new amount. Ms. Manier noted that this Resolution does not need to go before the Common Council for further action and that the new security deposit rates will go into effect February 5, 1990. Therefore, Mrs. DeClercq made a motion that the Resolution as submitted be adopted. Ms. Humphreys seconded the motion and the following Resolution No. 1-1990 was adopted: