11-20-02 Utilities Committee - Laserfiche WebLink

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Utilities Committee November 20,2002 Page 5 Mr. Gilot noted that with regard to Mr. Terry Miller's comments on CSO, he noted that both he and Mr. Dillon are active at the state and federal levels in this area, noting that he is "unaware of any white horse coming to save the city". He noted that both Mr. Skomp and Mr. Dillon will be present for Monday's hearing. Council Member King noted that the allocation of 0 & M expenses and its effect on the outside surcharge have been calculated at 74% and others have calculated it at 34%, stressing the need for accurate information. Council Member King stated that he would appreciate receiving this clarification before Monday. Council Member Pfeifer encouraged the Administration to provide as much information well before Monday as possible, noting the difficulty of reading for the 1st time information provided and the Administration's presentation. She stated that this information should not be given listening to in' g to the Council at the last minute, and suggested that it be provided to the Council no later than Saturday. Council Member Pfeifer noted that Mr. Dominick stated that there rates would go up 45% overnight the 1st year. She inquired of him what they pay. Mr. Dominick stated that there current rate is $ .74 per 100 cubic feet and that they now pay $20,000 to $30,000 annually which till go to $50,000 plus annually based on consumption and they have not factored in the additional costs with regard to meter size and alignment. Mr. Dominick stated that the increase proposed would be 45%more the 1st year; 13% more the 2d year; and 15%more the 3rd year plus costs for meter realignments. Council Member White noted that a lot of points have been raised with regard to the need for a fair increase and the need to reach"common ground". She inquired whether there"is any way to reach common ground". Mr. Gilot stated that the City Administration has made " a lot of movement from their first proposal". He noted that the City of South Bend has a large portion of its population living on fixed income and have many poor persons, and that the City Administration does not want to subsidize its operations on their backs. He stated that they are working for "social justice". He stated that he would ponder and address this concern with Mayor Luecke. Dr. Varner asked what the definition is of the principle of"social justice". Mr. Gilot noted that "taking money out of the pockets of the little guys who are not represented here,while the larger customers are represented here and by legal counsel". Council Member Coleman focused on the bonding issue. He noted that the city needs to address: what dollar figure are we looking at in light of remaining bonding ability; what are all of the options with regard to the length of the issue; and what is the bonding capacity of the city in this area. Mr. Gilot noted that for items with a useful life of five (5) years of less that the lease option is possible. With regard to the bonding capacity, he noted that it is a matter of having revenue sufficient to cover the expense, and noted that Mr. Skomp stated that the city is "in a good range now".