01-13-03 Council Meeting Minutes

Home Browse Search

REGULAR MEETING JANUARY 13, 2003 occurs before the Council is asked to vote on the ordinance. He noted that Council President White previously indicated her desire for a similar undertaking. Mr. Nielson asked the Council, before they vote tonight, to please give consideration one more time to the possibility, not of delaying further, because they are sensitive to the need that the administration has to get revenues and move ahead with plans and to progress but to consider the adoption of a flat twenty-four per cent (24%) rate increase for all the customers that are served. That would provide the monies that are necessary for the administration and would also provide the opportunity for the dialogue and the investigation that has not yet taken place. Mr. Nielson stated that he understands that based on documentation provided to the local newspaper, for the average residential customer, the average monthly rate would rise from thirteen dollars and eight cents ($13.08) a month to fourteen dollars and ninety-nine cents ($14.99). That seems to be corrected by the Cost of Service Study, Schedule M2, which indicates that the rise would be from thirteen dollars and eight cents ($13.08) to fifteen dollars and sixty-seven cents ($15.67) the difference between the reporting and the schedule being sixty-eight cents ($.68). Mr. Nielson noted that their observation of the amount of change in the event that the Council was to invoke the twenty-four per cent (24%) across the board flat increase would be a monthly rate for homeowners of sixteen dollars and twenty-two cents ($16.22) which is fifty-five cents ( $.55) more per month than is contemplated in schedule M2 of the Cost of Service Study. He noted that they believe that most concerned consumers would be willing to brook that disparity in order to have a more in depth discussion of the issues. Mr. Jim Robinson, Group Vice -President, Aramark Uniform Services, 3701 Progress, South Bend, Indiana, stated that one of the issues they have is that they have had very little involvement or participation in this matter. He noted that they are listed as the number nine (9) water user on the list. He further noted that it puts them in a tough situation to be able to analyze data in such a short period of time. In 2001 Aramark made a six hundred thousand dollar ($600,000.00) improvement to their own wastewater treatment facility to be a better community partner. They are sensitive to the needs of the City for an increase and will support an increase that they can participate in and have a debate over. The issue they have is trying to recover from a fourteen (14) year period of no increase with a seventy per cent (70%) increase to them in these kinds of economic conditions. Mr. Robinson stated that they employ over one hundred sixty (160) employees and have gone through a lot of layoffs. They support a twenty-four per cent (24%) flat across the board increase without changing the structure. He indicated that he hoped the Council would vote against the bill proposed this evening so they can come back as a group in two years and get everyone to participate and feel better about this increase. Mr. Robert L. Miller, Sr., 17526 Douglas Road, Lot 9, South Bend, Indiana, advised that he represents Mr. Charlie Landesman and Mr. Wylie Wright and they vote no to this bill. Mr. Miller noted that Mr. Skomp stated that it is legal to go across the board as the Supreme Court has so ruled and that the rates proposed are presumed to be just and reasonable. Then a twenty four percent (24%) rate across the board would be the same. He noted that would settle it for all the people. He further noted that it is his understanding that that would raise the individual customer by about fifty- five cents ($.55) a month. As a matter of social justice, Mr. Miller stated that there are individuals on fixed incomes but there are also people working for these businesses to which the City is throwing the increased burden. Mr. Miller noted that he does not thoroughly understand all the