11-17-88 Personnel & Finance and Utilities

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Joint Meeting of the Personnel and Finance and Utilities Committees 11-17-88 Page 2 A response to a question raised by Council Member Slavinskas it was noted that line item 342 "Insurance" in the amount of $195,254 represents the liability payment to the self- insurance fund of the City. Sewage Works Depreciation - page 15 - Bureau of Water Works - $704 , 000 - 6. 6% increase. It was noted that line item 399 entitled "Other Contractuals" in the amount of $467, 000 represents payments to Tenec. It was also noted that line item 416 "Building Structures and Improvements" in the amount of $467, 000 represents various roof repairs, fencing improvements electrical repairs and external repairs to the administration building. It was also noted that quality controls utilized standarized test procedures with 12 sites in South Bend, 4 sites in Mishawaka and 7 to 9 sites in Elkhart. In a response to a question raised by Council Member Slavinskas it was noted that line item 399 in the amount of $911, 000 represents payments to date to Tenec for design materials. This does not include the administrative fees. Mr. Leszczynski noted that most of this would be reimbursed from State, Federal and bond issue revenues. It was further noted that since 1983 revenues have not kept up with expenditures. Mr. Leszczynski noted that at the last rate increase a 17% increase was recommended but the Council passed only a 9% increase. He noted that the need for systematic review and with the establishment of the commulative sewer fund the City administration and City Council is working together to review every four years a reasonable rate. It was noted that a cushion is built into the rate increase for the early years which will sustain it throughout a four year period. Mr. Leszczynski also noted that Tenec has been hired in the City of Hammond where all of the plant personnel have been fired and a consent decree is involved. Sewage Works Sinking Bureau of Waste Water - page 16 - $645,443 - .3% increase. It was noted that the bond issued for 1971 would be paid off in October of 1990. Council Member Luecke questioned how long the improvements would last. Mr. Leszczynski noted that since ceramic rather than plastic issues are being used that it should last 20 years or longer. He also noted that the City is "marginally in compliance" and that with the new improvements that better results should take place. South Bend/Clay Sewage Works General - South Bend/Clay Waste Water - page 17 - $111, 000 - 21.4% increase. Mr. Dillon noted that many of the comments made by Mr. Agostino of yesterday would be similar to those on this account for today. It was noted that in line item 354 entitled "Water"