11-14-12 Utilities Committee - Laserfiche WebLink

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r power point summary provided at the last Utilities meeting, a brochure also provided at the last Utilities Committee meeting dated October 2005 entitled "River Report", and a one -page handout entitled "Notice of Hearing -Sewer Rate Change" (copies attached). He noted that the handouts include a "typical resident" summary of 5,000 gallons per month, and noted that seniors would probably pay less because their usage is less. Dr. Varner noted that Marion County was noted listed in the city's information. A recent article showed that their monthly rates of $9.95 will go to $18.00. Mr. Dillon stated that they are also planning to implement a phased -in rate increase. Mr. Skomp of Crowe Chizek stated that Indianapolis is able to keep their rates lower because of subsidies from property taxes, however he was unable to state the percentage of that subsidy. In response to a question from Dr. Varner, Mr. Dillon stated that both the EPA Region No. 5 and IDEM are reviewing the city's progress. Mayor Luecke noted however that EPA can "trump" IDEM. John R. Skomp of Crowe Chizek and Company LLC stated that a rate financial report has been filed with the Office of the City Clerk. He then provided a letter dated November 14, 2005 to the Committee which addressed among other items the I/N Tek letter and recommendation from Steven K. Brock. Mr. Skomp stated that he believes that Brock's recommendation would lead to lower rates in the short-term but may lead to higher rates in the long -term. He noted that various suggestions and scenarios were discussed by the Advisory Committee. In response to questions from Dr. Varner, Mr. Gilot stated that in 2003 there was a 24% across the board increase and in 2004 there was a 5% across the board increase. Rick Campoli, Controller of I N Tek I/N Kote, noted that his company appreciates the efforts of the Advisory Committee. Steven K. Brock did send a letter dated October 12, 2005 where he outlined a fixed percentage approach over 20 years. Similar approaches have been used in Boston and Atlanta to fund their CSO requirements. He stated that he believes that this is another option worth considering where the increases would be just short of 10% increase each year. He noted that modeling has been done, however that Mr. Brock was unable to be here today on such late notice. Mr. Skomp stated that he has not seen the model highlighted in Mr. Brock's letter. Dr. Varner suggested that if the study is available that it should be made available to everyone. He questioned why the city should have customers pay more upfront if the end result over 20 years would be the same. Mayor Luecke noted that philosophical issues are involved, noting that once the city gets past the first four (4) years there should then be single digit increases. Mr. Dillon added that each year there is $4 -5 million proposed for equipment and repairs. Mr. Gilot stated that the city is now in control and they would like to remain that way. He noted that the Board of Public Works is working with the University of Notre Dame on an embedded sensor network. UND is the second largest customer and they are discussing having UND reroute so that there would be only a sanitary line coming into the plant and they are discussing November 14, 2005 Utilities Committee of the 2005 South Bend Common Council -Page 2 of 3 -