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6. NEW BUSINESS (Cont'd) k. Mr. Dan Caesar, WSBT -TV Reporter, and Ms. Jeanne Derbeck, South B nd Tribune Reporter, both raised questions on why we are replacing t ese water heaters with the electric water heaters in lieu of gas, b th relative to cost and the energy crises. Mr. Crighton advised according to the project specifications and according to HUD's pre- ference in terms of our Community Development.housing activities, we have to replace like -items with like- items. In other words, if a gas hot water heater goes out, we can't, without a lot of paperwork, go to replacement of an electric water heater. Those regulations have been in effect since 1968 through.the Department of Housing & Urban Development. The Chair further added that this does not cause us any conflict with either utility. Also; we run into some situations where there is no gas line in the property, so there would be additional costs for installation of line runs. There would also be.charges for electric lines from prior gas installation. On the 'question why we should be concerned with criticisms from the utilities, this is the basic national philosophy and we do need to comply with HUD regulations, replace like - items with like - items. "I have been i`n a lot of these discussions before, and the reason for the regulations, and you get into the national lobbies involved, and the regulations are set." Co missioner Wiggins added that, just as we have people.here who represent taxpayers, we should also notice that public utilities ar2 also taxpayers -- substantial taxpayers. They have an interest in equity in tax money being spent. Mr. Lindstaedt stated, "We all ag ee that the utilities pay a great amount of taxes, but when you to k at the overall costs as to who carries the tax; it is the con - su er himself and nobody else. The costs are carried over." Change Order No. l to Rehabilitation Contract No. 60, Southeast C.O. NO. 1 Pr ject E -7: Commission approval was requested of Change Order TO CONTRACT No 1 to Rehabilitation Contract No. 60, with Ted Combs Decorating NO. 60 AP- & onstruction Company, for an increase in contract amount of PROVED, $3 0.00, (Contract: $3,760.85), or an amended contract total of: SOUTHEAST $4,080.85, for rehabilitation work at: 1511 South Fellows Street, E -7 So theast Project E -7. Mr. Johnson's memorandum states that since the time of initial inspection, the gutters and downspouts have deteriorated and sh uld be replaced. Staff recommends approval of the change or. er. This is for replacement of the gutters around the structure- - 76 feet -- excluding the front porch, and the replacement of four 10 ft. downspouts, for an increase in contract amount of $320.00. Motion was made by Mr. Donaldson, seconded by Mr. Wiggins and ca ried, for the approval of Change Order No. l to Rehabilitation Co tract No. 60, with Ted Combs Decorating & Construction Company, fo an increase in contract amount of $320.00, with an amended co tract total of $4,080.85, Southeast Project E -7. - 11 -