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Committee Vice Chair Davis asked, So even with the rate increase, all of these projects will still <br /> not be funded? What happens then? <br /> Mr. Horvath answered, There has been a lot of time spent on this discussion. We have a <br /> remarkable staff that has been used to just keeping things running. We are trying to figure out <br /> what the most critical pieces are. We are going to do our best to just keep the things running and <br /> to focus on the most critical pieces. Our use is flat-lined, we have great quality water coming out <br /> of the ground and the supply is good. How our well fields are distributed is also helpful because <br /> not all our eggs are in one basket, so to speak. If one goes down„ not every other field is shut off. <br /> The hope is as we put things back online,we are in better shape to serve the needs of the <br /> community. We will continue to monitor it. Our facilities are old and we just haven't been <br /> making the capital investments that have been needed over the years. <br /> Committee Vice Chair Davis asked, Is there a percentage in mind that would take care of it all? <br /> Mr. Horvath answered, The City of South Bend tried to opt out of the IURC a couple years ago <br /> and it wasn't successful. Mishawaka opted out and they were able to do the multiple year <br /> funding mechanism. The thing is,we aren't even sure if we can do the two (2)year agreement. <br /> We can't go to the IURC and propose any increase without a fixed known measurable over a <br /> period of time and without knowing, specifically, the projects the money will be going into. <br /> Committee Vice Chair Davis asked, Have we come to a point where we need to renegotiate our <br /> involvement with the RJRC? <br /> Mr. Horvath answered, The value in IURC is that they are watchdogs over both the Council and <br /> Public Works. If you trust Council to watch over the rates and not raise them willy-nilly,then <br /> absolutely, local control would be best. The problem with going through opting out now is <br /> because there is a proposed rate increase, it would look like you're trying to get out of it because <br /> of that. The public would think there is something underhanded behind that. <br /> John Julian,partner with Umbaugh and Associates, stated, There are a couple things to consider. <br /> The rules in which separate rates are established in Indiana are through state law. Whether you're <br /> in or out of the commission, the protection is there, so it's a matter of who is going to judge those <br /> laws. The expense of being regulated is approximately$150,000 per rate case. So until you adopt <br /> an ordinance,they won't start looking at it. So you've done all the heavy lifting, the vetting, the <br /> inspection, and then you have to pay another$150,000 on top of that. I have a hard time funding <br /> any time that is justified in a municipal owned utility. <br /> Committeemember Randy Kelly asked, So why is it we weren't able to opt out? <br /> Council Attorney Aladean DeRose answered, It requires a ballot vote and the voters voted <br /> against it. <br /> Committeemember Regina Williams-Preston asked, Will you come back to us after 2019 with <br /> another plan? <br /> 3 <br />