11/09/88 Board of Public Works Special Meeting Minutes

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SPECIAL MEETING NOVEMBER 9, .1988 A Special Meeting of the Board of Public Works was ccnvened at 11:06 a.m. on Wednesday, November 9, 1988, by Board President John E. Leszczynski with Mr. Leszczynski, Mrs. Patricia E. DeClercq and Ms. Katherine Humphreys present. Also present was Assistant City Attorney Marva Leonard -Dent. ADOPTION OF RESQLUTION NO. 35-1988 - APPROVING A SEWER USE AND RATE ORDINANCE AND OTHER RELATED MATTERS Mr. Leszczynski advised that as the Board of Public Works is authorized to operate the Wastewater Treatment Plant and make decisions regarding the operation of the Plant, it is the intent of the Board to file with the Common Council a sewer use and rate ordinance dealing with the Wastewater Treatment Plant Improvement Project. Mr. Leszczynski stated that a major part of the ordinance deals with the $9.5 Million Dollar bond issue required to cover the City's cost of the approximately $22 Million Dollar improvement project at the Wastewater Treatment Plant. The City will be receiving approximately $14 Million Dollars from state and federal grants. An additional $9.5 Million Dollars will be required for construction and such other items as engineering and rate studies, interest costs, legal fees and other costs associated with the bond issue. Mr. Leszczynski further advised that the rate ordinance being submitted to the Common Council is unlike any rate structure utilized in the past. It conforms with federal guidelines and has been approved by the E.P.A. and State of Indiana as to form and content and they have indicated that the amount is reasonable and just in order to operate the Plant properly in the years to come. In response to questions asked by Mr. James Wensits, Reporter, South Bend Tribune, Mr. Leszczynski advised that the ordinance reflects a rate increase of twenty-eight percent (280), the new rate will be seventy-four cents ($.74) per 100 cubic feet, the bond issue period will be nineteen (19) years and one (1) month, with only interest being paid the first two (2) years. He further stated that the 1971 bond issue will be paid off in two (2) years. Mr. Wensits informed the Board that he received a telephone call from an individual regarding a large increase in their water bill. He was advised that the person with the concern should contact the Water Works in order that the bill can be reviewed and the reason for the higher costs can be discovered and explained. In conclusion, Mr. Leszczynski stated that the rate increase proposed in the ordinance being submitted to the Common Council would have been higher had the City not received the grants which it has been awarded for the Wastewater Treatment Plant Improvement Project because improvements are necessary and the project would have had to proceed with or without the grant funds. There being no further questions regarding this matter, upon a motion made by Mr. Leszczynski, seconded by Mrs. DeClercq and carried, the following Resolution No. 35-1988 was adopted: NO. 35-1988 RESOLUTION OF THE BOARD OF PUBLIC WORKS OF THE CITY OF SOUTH BEND, INDIANA APPROVING A SEWER USE AND RATE ORDINANCE AND OTHER RELATED MATTERS WHEREAS, the City of South Bend, Indiana, (the "City"), has previously established and now owns and operates through the City of South Bend Board of Public Works (the "Board of Public Works"), the South Bend Waste Water Treatment Plant (the "Plant"), pursuant to IC 36-9-23 (the "Act"); and