12-08-86 Utilities Committee - Laserfiche WebLink

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$42,128 from the South Bend/Clay Waterworks Depreciation Fund to Account No. 399 within the South Bend/Waterworks Depreciation Fund for purposes of defraying unexpected expenditures for 1986. Mr. Bill Smeer noted that this was an in-line transfer which was necessary in light of the Clary Utilities. Following discussion, Councilman Barcome made a motion seconded by Councilman Paszek that Bill No. 131-86 be recommended favorably. The motion passed. The Committee then reviewed Bill No. 131-86 which would appropriate $18,000 from the South Bend/Clay Sewage Works and Maintenance Fund to Account No. 354.0 and Account No. 390.0 within the South Bend/Clay Sewage budget. Mr. Rex Voohrees noted that this bill would help offset the additional costs which were not anticipated in the budgetary process. Councilman Barcome made a motion seconded by Councilman Paszek that Bill No. 132-86 go to Council favorably. The Motion passed. The Committee then reviewed Bill No. 133-86 which would appropriate $200,000 from the Sewage Works Operation and Maintenance Fund for the purpose of defraying of anticipated costs incurred in 1986. Mr. Rex Voohrees noted that the appropriation was necessary to help offset the unanticipated cost of electrical current and other contractural Line Items. Councilman Paszek made a motion seconded by Councilman Barcome that Bill No. 133-86 go to Council favorably. The motion passed. The Committee then returned to review Bill No. 134-86 which would amend Chapter 17 of the South Bend Municipal Code by establishing a schedule of rates, charges and surcharges rendered by the South Bend Treatment Plant. Mr. Leszczynski then offered an amended version to the bill and added further that the amended version would be further amended and that he would have a new version of it at the time of the caucus meeting later this evening. Councilman Voorde noted that the extra surcharge for the high concentrations is something that the Council had been requesting of the City Administration for years. He also questioned what the projected new income from such a surcharge would be on an annual basis and was told that approximately $1,000 per year would be generated. Mr. Leszczynski noted that the purpose of the overall bill was two-fold, namely that the basic rate to residential and commercial users would be increased by 97. an and extra surcharge to high concentrators into the system would be added. He then explained four graphs (attached) as further explanation of the proposed increases. He noted that EPA limits must be met and in certain circumstances fines of $10,000 to $25,000 daily would be assessed for non-compliance. He further noted that criminal penalties often are attached if municipalities fail to comply with such EPA standards. He noted several cost effective measures such as designing items in-house, cutting personnel, which in his opinion helped to justify the overall rate increases. -2-