01-12-09 Common Council Minutes - Laserfiche WebLink

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REGULAR MEETING JANUARY 12, 2009 Councilmember Dieter made a motion made a motion for favorable recommendation to full Council concerning this bill. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes and one (1) nay (Councilmember Henry Davis, Jr.) BILL NO. 83-08 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, CLOSING WATER LEAK INSURANCE FUND NO. 644, TRANSFERRING THE BALANCE TO WATER WORKS OPERATING FUND NO. 620, AND REPEALING ARTICLE 6 OF CHAPTER 17 OF THE SOUTH BEND MUNICIPAL CODE Councilmember LaFountain, Chairperson, Personnel and Finance Committee, reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with a favorable recommendation. th Ms. Catherine Fanello, City Controller, 12 Floor, 227 W. Jefferson Blvd., South Bend, Indiana, made the presentation for this bill. Ms. Fanello stated that this bill will close the Water Leak Insurance Fund No. 644 and repeal applicable portions of the South Bend Municipal Code. Mr. Gilot advised the Indiana Utility Regulatory Commission’s (IURC) most recent decision concerning the City of South Bend’s water rates, directed the City to cease charging a separate water leak repair/replacement fee, and to include that cost as part of the general rate. With this IURC decision, there is no further need for separate Water Leak Insurance Fund No. 644. The monies in that Fund should be transferred to Water Works Operating Fund No. 620, and the South Bend Municipal Code provisions pertaining to repair and replacement of water lines Chapter 17, Article 6, should be repealed as unnecessary. For accounting purposes, this process should be effective as of December 31, 2008. This ordinance would approve these internal accounting adjustments, and which has an effective date of December 31, 2008. The Controller will provide the Council with year-end accounting of the monies in Fund No. 644 to be transferred to Water Works Operating Fund No. 620. Mr. Gilot noted that he answered a couple of questions at the committee meeting this afternoon and went back to research his answers and would like to clarify them. First, the water leak insurance fund has not deductible. The one with the $500.00 deductible is the sewer. The second, is that it is $2.00 a month for all customer’s of the water utility to get leak insurance and the question that was raised was does that cover commercial/industrial, and the fact is that it applies to all service lines for those that are under 2” it covers everything from the main to the foundation wall of the building. For those that are over 2” diameter or greater it covers from the main to the property line only. There is no equivalent meter charge. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. Councilmember Varner asked if it would be able to segregate the cost, so that if it comes time that it has to be changed, it will be able to be justified. Mr. Gilot stated that they will be able to track this. Ms. Fanello stated that they still have the controls in place to be able to track all of the revenue expenses separately. 7