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HomeMy WebLinkAboutMore Detailed Information in Determining the Most Just and Equitable Fees for Sewage Works (Rates)RESOLUTION 4311 -13 Passed by the Common Council of the City of South Bend, Indiana December 9, 13 20 . Attest. Presented by me to the Mayor of the City of South Bend, Indiana December 10, 20 13 Approved and signed by me 0 £C q/" 6fIC 16 City Clerk President of Common Council 20-L3— . City Clerk Resolution No. t 3-11 Bill No. A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, CALLING FOR MORE DETAILED INFORMATION AND MULTIPLE OPTIONS FROM THE CITY ADMINISTRATION SO THAT THE COMMON COUNCIL HAS THE OPPORTUNITY TO MAKE THE MOST INFORMED DECISION POSSIBLE IN DETERMINING THE MOST "JUST AND EQUITABLE FEES FOR SERVICES RENDERED BY THE SEWAGE WORKS" the South Bend Common Council notes that on December 29, 2011, the United States Attorney's Office and the U.S. Environmental Protection Agency issued a news release from Hammond, Indiana, entitled "City of South Bend - Indiana Settlement" where they announced that the "City of South Bend, Indiana has agreed to make an estimated $509.5 million worth of improvements to its combined sewer system to significantly reduce overflows of raw sewage to the St. Joseph River..." which is now projected to cost approximately $667 million; and �cu that News Release noted that the combined sewer overflows (CSOs) resulted in the discharge of pollutants without a permit and therefore was in violation of Section 301 of the Clean Water Act, Title 33 United States Code § 1311; and ,e-ra4, that New Release further noted that a Consent Decree was entered into which requires the City of South Bend to implement a Long Term Control Plan (LTCP) by 2031, which included upgrades to the wastewater treatment plant and improvements to the collection system, in light of the fact that "over 2 billion gallons of untreated sewage" was being discharged into the St. Joseph River [not noting that it was being diluted]; and would require the City to reduce by 95% the 80 event discharges to a total of four (4) event discharges ; and G rPreao no member of the South Bend Common Council was involved in the actual negotiations leading up to the Consent Decree; and Gy// ui the South Bend Common Council acknowledges that the Indiana General Assembly has given the municipal legislative bodies the authority to "establish just and equitable fees for the services rendered by the sewage works and provide the dates on which the fees are due" pursuant to the passage of an ordinance consistent with Indiana Code § 36- 9- 23- 25(a); and (�(X a,on June 28, 2010, the South Bend Common Council passed Ordinance No. 10019 -10 which became effective July 10, 2010, raised the sewer rates by an average of 9% per year, with the rates being codified into the South Bend Municipal Code in § 17 -21; and �/4 tray the Common Council notes that South Bend Municipal Code § 17 -25 requires the City Administration to begin discussions with the Common Council by June of 2013 with regard to any revisions and adjustments of the sewage rates "to assure adequacy in the cost of maintaining the City Resolution on Sewer Rate Increase Considerations Page 2 sewer works in sound physical condition and financial condition necessary to render adequate and effective service "; and OlwevmA the sewage rates set forth in South Bend Municipal Code § 17 -21 remain in effect until action is taken by the Common Council; and recta on October 14, 2013, Bill No. 64 -13 was filed by the City Administration which seeks to "adjust sewer rates and charges incrementally through 2017" and seeks another 9% rate increase compounded annually for the next four (4) years; f�reai a series of Utilities Committee meetings have been held as part of the Council's due diligence requirements in determining "just and equitable fees "; however discussions with the City Administration began well after the June date set forth in the City Code; and G`�f AeaG in light of the need for additional information and data on the proposed sewage rate increases, as well as what appears to be conflicting information provided by the Administration with regard to the over 60 -page Consent Decree, Bill No. 64 -13 was continued in the Council portion of the public hearing to January 27, 2014, so that the City Administration would have the opportunity to provide more detailed information and a variety of rate options for the Common Council to debate, analyze and consider; and since the Consent Decree was entered into, there have been articles published noting that the EPA is "willing to consider renegotiating ... Consent Decrees ", with one of those articles being published in the June 5, 2012 edition of the Governing magazine entitled "Mayors Question EPA Consent Decrees" where several Mayors contended that there is a "potential to cause financial stress for local governments and their residents "; and another article published on August 1, 2012 noting that the "tough economy might be making the agency more flexible " - with that information being specifically shared with the City Administration; and G`j r rid the Common Council notes that some of the Consent Decrees which have resulted in modifications were based on new and relevant information which improved the remedies and were from the cities of Indianapolis, Indiana; Toledo, Ohio; Atlanta, Georgia; and Honolulu, Hawaii; and the Common Council believes that the City of South Bend, Indiana, has taken substantial steps and taken many good faith efforts to upgrade the sewage treatment plant in the effort to reduce raw sewage discharges with the passage of rate increases such as those in 2003 of 24 %, a 29% rate increase in 2005, a 15% rate increase for 2007, an I1% rate increase for 2009, and a 9% rate increase for each year thereafter through 2013; 6 *erea6, the Common Council believes that all viable options should be investigated in light of the local economy and its impact on the ability to pay higher rates and charges; whether the most recent Resolution on Sewer Rate Increase Considerations Page 3 population base was used which reflects a population loss; whether the Michigan water standards are required or optional; and other related issues, especially since no past or current Common Council Member was involved in the discussions leading to the Consent Decree being entered into by the City. /ry �ai e, Ja/ e L/J //r + ra rnraia '&moncrC 19 /1,, I�- /' u// M21ml limn r„ as follows: Section I. The South Bend Common Council hereby believes that in order to "establish just and equitable fees for the services rendered by the sewage works..." that all reasonable options should be analyzed, carefully studied, and debated before moving forward on raising the current sewage rates set forth in South Bend Municipal Code § 17 -21. Section II. The Common Council further believes that in order to carry out its statutory duties with the primary one being fiscal responsibility, that all viable and legitimate options should be offered by the City Administration so that they may be properly vetted. Section III. The Common Council believes that an equitable sewer rate increase for the 2014 is warranted so long as it is based on current factual data, which is in compliance with the applicable provisions of the South Bend Municipal Code, the Indiana Code and the Consent Decree. However, the Common Council further believes that the City Administration should carefully review all possible alternatives including potential modification of the current Consent Decree, with that review beginning post haste, so that discussions between the Administration and the Council can begin in early January 2014. Section IV. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. Dr. David Varner, 5th District Council Member Member of the South Bend Common Council Dr. Fred Ferlic, District Council Member lylemU ber f the South nd ommon Cou cil . Valerie Schey, Utilities Committee Chairperson Member of t1le Sout en Co men Council Ol Davis, Publ orks Committee Chairperson Member of the South Bend Common Council Resolution on Sewer Rate Increase Considerations Page 4 �/ea! this q+\ day of �)Q- CO.+ --6W John Voorde, City Clerk 2013. �P6 ai�el by me to the Mayor of the City of South Bend, Indiana, on the (0-k day of 2013, at LO', SOo'clock A. M. NC T 4,PPR(;VEU nooP- ''L si —l3 Janice VIboom, Deputy City Clerk by me on the 10 day of D f C `m b £ e— , 2013, at .5 o'clock Q m. 7e� Pete Buttigie ayo ity of South Bend, Indiana Filed In C¢erWe ()fr1 . j k DEC JOARvonRoF u� CITY lw°4ERK, SOUTH S£Nly, IN Sou'rH a� City of South Bend moo.\ sd W PF.�E °z Common Council 1s65 441 County -City Building • 227W. Jefferson Blvd South Bend, Indiana 46601 -1830 Derek D. Dieter President Oliver J. Davis Vice - President Karen L. White Chairperson, Committee of the Whole Tim Scott First District Henry Davis, Jr. Second District Valerie Schey Third District December 4, 2013 The South Bend Common Council 4th Floor County -City Building South Bend, Indiana 46601 Dear Council Members: (574) 235 -9321 Fax (574) 235 -9173 http://www.southbendin.gov No present or past Council Member was involved in the negotiations leading up to the City of South Bend entering into a Consent Decree in late December, 2011. That decree requires millions of dollars of upgrades to be made to the City's combined sewer system and would be the largest overall expenditure in our City's history. From DecembF_ 29, 2011, when the US Attorney's Office and the US Fred Ferlic Environmental Protection Agency announced that the City of South Bend would Fourth District spend an estimated $509.5 million. Now, the City Administration is estimating David Varner that the "Long Term Control Plan (LTCP) for Combined Sewer Overflows Fifth District (CSOs)" are projected to cost approximately $667 million! Oliver J. Davis In light of the City Council's primary role of being fiscally responsible, we Sixth District believe that best practices should always be utilized and that much more detailed information must be shared and discussed, before a sewer rate increase is passed. Derek D. Dieter At Large The attached Resolution sets forth some of the many areas of concern which the Gavin Ferlic Council is seeking more information. At Large We find it interesting to note that on the EmNet website, Mayor Buttigieg is Karen L. White quoted under "Testimonials" that: At Large "We have the Smartest Sewers in the world!" That same website notes that South Bend has "effectively reduced Long Term Control Plan by. $120 million, eliminated dry weather overflows, reduced all overflows by 24% and implemented a condition -based maintenance program that reduced annual 0 & M costs by $1 million" (EmNet website pages attached. Cover Letter to Resolution on LTCP December 4, 2013 Page 2 If South Bend is utilizing "Real Time Intelligence and Optimization are the rates which are being proposed by the City Administration truly "just and equitable "? At this stage in the review by the Common Council, there just has not been enough information presented to answer this question in the affirmative. Other cities across the nation have taken the time to carefully review their Consent Decrees entered into with the EPA, in light of changing economic conditions, improved technology, and other factors and have successfully negotiated modifications. Since the Common Council was never part of the negotiating process, an executive summary of the key factual items used by the city when negotiating the final terms of the Consent Decree should be shared with the Council. The Council would like to continue a detailed review in early January 2014 of all relevant items related to not only the proposed rate increase set forth in Bill 64 -13, but also with regard to the factors leading up to the terms in the Consent Decree. If indeed the City of South Bend has the "smartest sewers in the world ", will South Bend also have the most expensive sewers in the world? We look forward to discussing this Resolution at a joint meeting of the Utilities Committee and the Public Works and Property Vacation Committee next Monday, December 9, 2013, and seek your approval to adopt it that evening. sincerely, / Dr. David Varner 5 °i District Council Member Valerie Schey, Chairperson 1 Utilities Committee Attachments Dr. Fred Ferlic 4th District Counc' mber Ir Davis, Chairperson Public Works & Property Vacation Committee Filed Off Irtir C �tDSEND, IN TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 13 -91 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, CALLING FOR MORE DETAILED INFORMATION AND MULTIPLE OPTIONS FROM THE CITY ADMINISTRATION SO THAT THE COMMON COUNCIL HAS THE OPPORTUNITY TO MAKE THE MOST INFORMED DECISION POSSIBLE IN DETERMINING THE MOST "JUST AND EQUITABLE FEES FOR SERVICES RENDERED BY THE SEWAGE WORKS' Respectfully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with a favorable recommendation. This bill was heard by the Utilities and Public Works and Property Vacation Committee. Karen L. White Chairperson, Committee of the Whole