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CITY Ol= SC)tJ`M BEND STEPHEN J. LuEc KL,, MAYOR <br />DEPARTMENT of PUBLIC WORKS <br />May 19, 2010 <br />Common Council Members -- <br />Subject: Sewer Rates 2010 -2013 <br />We started this briefing in January 2010. We have had work sessions on the past 4 years of <br />Progress on the CSO Long Term Control Plan and what comes next in the next 4 years. We are <br />now prepared to discuss the rates necessary to continue to move forward with environmental <br />health stewardship and meet the federal mandate. We once again need to address rates to keep <br />moving forward environmentally on controlling overflows from our combined sewer system, <br />including basement backups, It is never popular to increase rates, but that is the necessary task <br />before us, It is over 4 years since the Common Council voted on sewer rates, It is time to <br />review our progress, current status and make decisions on the next stage of implementing the <br />plan we worked collectively as a community to create a 20 year roadmap for this major <br />environmental infrastructure aspect of City Plan. <br />We are facing a big $ 450 million CSO LTCP implementation ahead for the next 20 years. We will <br />operate under Environmental Protection Agency, Indiana Department of Environmental <br />Management and Federal Department of Justice Consent Decree for a long time (same as <br />Mishawaka, Elkhart and many other communities in Indiana). <br />Rates need to increase in 2010 and for the next 3 years (each year) to produce capital for sewer <br />infrastructure investment of $70 million of dollars for the next priority group of projects, <br />We continue to focus on public health as our priority most supported by the public - -- continuing <br />to address chronic basement backup areas. There will be some more significant work to <br />maximize our wastewater treatment plant wet weather capacity, both for higher flows and in <br />terms of organic, nitrogen, solids and disinfection processes. This treatment plant aspect is the <br />most cost - effective environmentally acceptable project to help everyone in the community. <br />As local leaders, we want to avoid sewage backups into basements; we want to keep raw sewage <br />out of the river after most rain storms. We also want to buffer rates. However, it should be <br />communicated clearly that the EPA is mandating that we act and pushing us eventually beyond <br />engineering break -even point - -- where each increment of cost produces an equal or greater <br />increment of environmental benefit (called knee of the curve economic project scope). <br />The EPA is eventually under the pending consent decree pushing us and other CSO communities <br />under the 20 year plan to sewer rates that are above the guidance in the Clean Water Act of 2 % <br />of median household income allocated to sewer bill (in the guidance in the Clean Water Act this is <br />accepted as the level of "widespread economic hardship" due to high sewer rates). <br />Department of Trublic R'orks <br />Engineering <br />Water Works <br />Central Services <br />Streets <br />Environin i(zl Services <br />Gar3 A. Gilot, Directm <br />Carl P. Littrell, P.E. <br />David Tungate <br />Matt Chlchowski <br />I <br />Spun Hensley <br />John I. Dillon, Ph.D. <br />574,235 -9251 <br />574/235 -9251 <br />574/235 -9322 <br />574/235 -9316 <br />574/235 -9244 <br />574/277 -8515 <br />Fax 574/235 -9171 <br />Fax 574/ 235 -9171 <br />Fax 574/ 235 -5595 <br />Fax 574/ 235 -9007 <br />1," 574/235 -9272 <br />Fax 574/277 -89$4 <br />