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HomeMy WebLinkAbout02-27-17 Utilities o�,03 TH tr U d 1865 OFFICE OF THE CITY CLERK KAREEMAH FOWLER,CITY CLERK UTILITIES FEBRURAY 27, 2017 4:00 P.M. Committee Members Present: Dr. David Varner, Oliver Davis, Randy Kelly, Regina Williams-Preston Committee Members Absent: None Other Council Present: John Voorde, Karen White Other Council Absent: Tim Scott, Jo M. Broden, Gavin Ferlic Others Present: Adriana Rodriguez, Aladean DeRose, Kareemah Fowler, Graham Sparks, Jitin Kain Presenters: Richard Nussbaum Agenda: Bill No. 17-07- Special Rate Agreement with IN/TEK IN/KOTE Committee Chair Dr. David Varner called the Utilities Committee meeting to order at 4:15 p.m. Committee Chair Dr. Varner introduced the members of the committee. He then gave the floor to Richard Nussbaum to present for Bill No. 17-07. Bill No. 17-07- Special Rate Agreement with IN/TEK IN/KOTE Richard Nussbaum, 225 S. Sunnyside Ave., stated, You might recall in January,the Council passed a sewer rate ordinance that we remonstrated against. The Council passed the ordinance and we filed a petition to object. We've worked very hard with the City to come to this agreement. I'm pleased to say the Board of Public Works has passed this agreement now twice. It was looked at carefully so that the terms of the ordinance were followed. We are not asking for a special rate because we are the largest customer, or because the impact was going to be negative,but there is more than that. There will be a savings to the City. Back in 1989 and 1990, there were two (2)big sewer lines constructed from the western part of St. Joseph County and back into the City. One of them is a dedicated line that I/N TEK I/N KOTE uses ninety nine point nine nine percent (99.99%) of the time which takes their waste directly from their plant into the wastewater treatment plant. The other line is oversized and used by other city customers including the town of New Carlisle. At that time,the lines were made to benefit the City in the sense that its wastewater treatment plant would have more customers to be able to bring more revenues. The cost of those lines in today's dollars is $16 million. The City did not have to spend one (1) dime on that. There was a TIF bond issued by the County but the only substantial 455 County-City Building•227 W.Jefferson Boulevard•South Bend,Indiana 46601 Phone 574-235-9221 •Fax 574-235-9173•TDD 574-235-5567•www.SouthBendfN.gov JENNIFER M.COFFMAN ALKEYNA M.ALDRIDGE JOSEPH MOLNAR CHIEF DEPUTY/DIRECTOR OF DEPUTY/DIRECTOR OF POLICY ORDINANCE VIOLATION CLERK OPERATIONS taxpayer that supported the TIF bond was I/N TEK I/N KOTE. Really and truly I/N TEK I/N KOTE paid/for those lines through tax dollars as a result of their development. Over fifty(50) years,there is an annual savings to the City of$320,000. During the course of this agreement, there will be far more savings to the City with this the special rate. We think this is a win-win for everybody. We are not related to nor are we advocating for the other special agreement. Jitin Kain stated, Again,the City has worked closely with Mr.Nussbaum and I/N TEK I/N KOTE. One of the results of this conversation is the sizing of the line to serve more customers. We express our support in reaching this agreement and I would be happy to answer any questions. Committee Chair Dr. Varner opened the floor to questions or comments from the Committee or Council. Committee Chair Dr. Varner asked, How long is the agreement for? Mr.Nussbaum replied, The agreement is for ten(10) years and we have to come back before August 30t`every year to reaffirm our reasons for the discount. Committee Chair Dr. Varner asked, The agreement recognizes a proposed and valid surcharge. How is that handled? Mr.Nussbaum answered, We have a petition right now and are objecting to that. In order for us to continue these discussions without going to court,the City and the Clerk's Office agreed to hold that. We are going to withdraw the petition. If the surcharge is found invalid, the deal is off. We will not be double credited. Committee Chair Dr. Varner opened the floor to the public for those wishing to speak in favor of or in opposition to the legislation. There were no members to speak for or against the legislation. Committeemember Davis moved to send Bill No. 17-07 to the full Council with a favorable recommendation. This motion was seconded by Committeemember Regina Williams-Preston and carried unanimously by a voice vote of four(4) ayes. With no other business on the agenda Committee Chair Dr. Varner adjourned the Utilities Committee meeting at 4:22 p.m. Respectfully Submitted, - avid Varner, Committee Chair 2