01-10-05 Utilities Committee - Laserfiche WebLink

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Utilities Committee 2005 South Bend Common Council The January 10,2005 of the Utilities Committee was called to order by its Chairperson, Council Member Al "Buddy"Kirsits at 5:40 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members Dieter, Pfeifer, Kelly, Puzzello, Varner, Kuspa,Kirsits and Rouse; Director of the Bureau of Water Works John Stancati, John Skomp of Crowe Chizek and Company LLC,Director of Public Works Gary Gilot,Rita Kopala, City Clerk John Voorde, and Kathleen Cekanski-Farrand, Council Attorney. Council Member Kirsits called for a presentation on Bill No. 88-04 which would establish a new schedule of rates and charges for water works services and would amend Chapter 17, Article 4, Sections 17-45 and 17-46 of the South Bend Municipal Code. Director of the Bureau of Water Works John Stancati made the presentation. He noted that if there is a delay that it would reflect on their request to the IURC. Mr. Stancati introduced John Skomp of Crowe Chizek and Company LLC presented copies of the January 10, 2005 "Rate and Financing Report" for the South Bend Municipal Water Utility prepared by Crowe and used as the basis of the requested rates set forth in Bill No. 88-04 (copy attached). Mr. Gilot noted, in response to a question from Council Member Puzzello, that the city is approximately six(6) months away from a recommendation on waster water fees in light of the ongoing process. Dr. Varner noted that in a recent article in the South Bend Tribune it reported that specific rates would be established with large customers, and that that was not his understanding. Mr. Gilot stated that the final authority rests with the Common Council, but that the special committee appointed by the Mayor and the former Council President would be making recommendations. He added that the IURC process for the proposed water rates would take between 6-8 months. Mr. Stancati stated increases in water rates are necessary in light of new regulations. They take the responsibility of safeguarding public health and the city's water system very seriously. August-September would be the earliest that the new rates would take effect in light of the IURC review. Mr. Gilot noted that he provided a fact sheet last Fall to the Council and would bring a copy of it to this evening's meeting. Dr. Varner noted that when the bond is paid off that it drops off the levy, however that the rates would not be automatically adjusted. Mr. Skomp stated that that was correct and that typically rates do not go down with the monies then be available for other things. In response to a question from Council Member Kirsits,he was advised that the average monthly cost for a single widow/widower would reflect a $1.88 increase. An average household of four (4)would experience a$2.50 monthly increase. Utilities Committee of the 2005 South Bend Common Council -page I-