06-28-10 Common Council Meeting Minutes

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REGULAR MEETING JUNE 28, 2010 Councilmember Oliver Davis asked what would happen if they would delay these issues. Mr. Skomp replied that if the Council passes now, the $450 million dollars has a time line and if it is not acted on now the rates will just keep going up. When you get closer to the timelines major jumps in rate increases would have to happen. Mr. Skomp stated that this is a good faith effort by the City to continue going forward with a willingness and a goal set for cleaning up the CSO’s and working with the EPA. He stated that the EPA will view this as a good faith effort. Mr. Skomp reiterated that the longer the City waits the more significant the rate increase will be. Councilmember Oliver Davis asked if it is more productive to adjust every year. Mr. Skomp stated that he and his company would like that very much it would keep them very busy, however, multi-year rate increases show transparency to the citizens and lock in those rates. Councilmember Rouse questioned on Page 1 of the South Bend Municipal Sewage Works, Preliminary Rate and Financing Report in paragraph #3 it states that Crowe Horwath had not conducted an audit of any financial or supplemental data and wondered why they have not conducted an audit. Mr. Skomp stated that he does not recommend a separate audit and stated that it is the responsibility of the State Board of Accounts (SBOA.) Councilmember Rouse questioned the estimated combined maximum annual debt service at $5.9 million on outstanding bond service. He stated that they are not autonomists. Councilmember Rouse stated that there is 15% unemployment rate in the City of South Bend and people are complaining that they cannot pay their bill now. Councilmember Henry Davis advised that he has some uncertainty regarding the mandate. He stated that there is the lace of inclusiveness. There has been no record of discussion with the EPA. He stated that this could have been done in a more creative way for the citizens and taxpayers to be able to understand and afford. He sees this as th and 11 hour movement to get this passed. He stated that he cannot support this bill. He nd stated that after talking with the residents of the 2 District regarding the CSO Project in Kennedy Park there are just too many concerns and uncertainty of how the projects are being planned. He stated that the City needs more transparency. He stated that there needs to be better communication and planning and a longer time frame. Councilmember Henry Davis stated that he is not against the environment, but there must be a better way to resolve this issue. Councilmember Oliver Davis stated that the Utilities Committee held meetings and thanked Gary Gilot, Public Work Director for his dedicated service. He stated that this bill was not just dropped on the Council. He stated that even before some members of this Council were elected into office a 20 year plan was in place to address this issue. Councilmember Puzzello stated that she had a great deal of respect for Mr. Gilot and the information that was provided by him is accurate and correct. She stated that his office was a great help with neighbors in her district when they had trouble with water in their basement. Councilmember White asked prior to the 4 years when was the last rate increase. Mayor Luecke advised 2003 and prior to that it was 16 years. He stated that rates being put off for that long the rate increases needed to be caught up. Councilmember White stated that she is in agreement that something must be done; however, the argument is on just how much. She stated that basement flooding is awful and costs homeowners thousands of dollars and insurance only covers a small portion if 14