01-13-03 Council Meeting Minutes

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REGULAR MEETING JANUARY 13, 2003 noted that the entire initial proposed sewage rate increase recommended by Crowe Chizek provided a framework for a much needed rate increase that would facilitate both the equal sharing of the cost of fixing the CSO problem and an equitable cost sharing for all entities utilizing the sewer system. The changes in the proposed amendment tonight are in response to pressure by large users. The proposed amendment and ordinance rate schedule on the table tonight compromises the much needed rate increases and shifts the short term liability for the infrastructure improvements and it allows zero dollars to address the CSO issue. Mr. Kaiser stated that if the Council votes for this bill they will have sold out the citizenry at the request of the special interests. He noted that the stink raised by large users has not gone unnoticed by the citizenry. However, the stink in the river remains. The reaction by the Council to special interests has also not gone unnoticed and the Council has forgotten the citizens. The Crowe Chizek study is being ignored and amended to allow for short term increases that provide zero dollars for the CSO issue. In the December 20th study, there was an allotment of $1.5 million a year to address this CSO problem. The alternative being banded about is a bond issue or a loan to provide dollars for capital improvement when there is a structure that is reasonable and fair to provide those dollars without having to borrow the money. Mr. Kaiser strongly recommended that the Council defeat this proposed ordinance and reintroduce and approve the ordinance as it was originally written. He stated that that is the only equitable solution to the CSO and infrastructure problems facing the City and is fair to everyone who utilizes a system and benefits from a clean river. Ms. Roxanne Lauer, Chief Financial Officer, Honeywell Aircraft Landing Systems, no address given, advised that Honeywell recognizes the need for some sort of increase. However, they are opposed to the process as well as the methodology that has been used to determine the amount of increases for the various businesses. She noted that they are a business that has been significantly impacted by the September I Ith events. Their primary customers are the airlines and price is a huge consideration iri the arena in which they play. They cannot turn around and pass along price cost increases to their customers. They have to find a methodology or some place else to take them out in order to remain competitive. Therefore, they request a more equitable way to apportion the increase. The other issue they take exception to is the process. She noted that they were given documentation last Friday that showed that they could expect about a fifty-six per cent (56%) increase. Less than two (2) hours ago they were given another document that shows a sixty-six per cent (66% ) increase. She further noted that they need time to look at and understand exactly what the impact is going to be to their business now and on a go forward basis. Therefore, Honeywell respectfully requested that the vote be postponed so that the Council has the opportunity to look for other methods to apportion the increase and to also help them better understand what the impact is going to be to their business. Ms. Judith Johns, 1069 Riverside Drive, South Bend, Indiana, advised that Holy Cross Service Corporation is actually St. Mary's campus, a college for women that is suffering from decreased enrollment due to the economy. She noted that Holy Cross Service Corporation is an organization run by the Sisters of the Holy Cross where the average age is over eighty-five (85) years. These sisters have no income because they are not out in the workforce. She noted that they believe that the system needs improvement and are supportive of a raise in rates. However, their rates will be raised by seventy five per cent (75%). Ms. Johns inquired how this rate increase will affect retired people on fixed incomes who may live at retirement communities. She noted that one of the major goals of Holy Cross Service Corporation is the improvement of the environment. However, they have just had a massive layoff in order to cut their expenses because of the lack of income since the .