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HomeMy WebLinkAbout11-14-12 Utilities Committee r ; Utilities Committee 2005 South Bend Common Council The November 14, 2005 of the Utilities Committee was called to order by its Vice-Chairperson, Council Member Timothy Rouse at 4:44 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members Dieter, Pfeifer, Puzzello, Varner, Kuspa, White,Kelly, and Rouse; Mayor Stephen Luecke, Mikki Dobski-Schidler, City Attorney Charles Leone, Chief Assistant City Attorney Ann-Carol Nash, Citizen Member Martha Lewis, Director of Public Works Gary Gilot, Rita Kopala, Jack Dillon, Mrs. Kopola, City Controller M. Catherine Fanello, John Skomp, representatives of I/N Tek I/N Kote, Rick Campoli, City Clerk John Voorde,John Stancati and Kathleen Cekanski-Farrand, Council Attorney. Council Member Rouse noted that Committee Members include Council Members Puzzello, Kuspa, Kirsits and himself. In light of Council Member Kirsits being unable to attend due to illness,he would chair the meeting. Council Member Rouse then called for a presentation on Bill No. 05-134 which would authorize a temporary transfer of idle funds from the Water Works General Fund (Fund # 620) to the Water Works Leak Insurance Fund(#644). John F. Stancati, Director of the Water Works Division made the presentation. This appropriation of $130,000 from the General Fund to the Water Works Leak Insurance Fund would assist the operations to carry out this program. He noted that last year $260,000 was requested with one-half(1/2) of that amount being repaid. He noted that the rate increase has helped. Following discussion, Council Member Kuspa made a motion, seconded by Council Member Puzzello that Bill No. 05-134 be recommended favorably to Council. The motion passed. Council Member Rouse then called for a presentation on Bill No. 72-05 which would amend various sections of Chapter 17, Article 2, Division 4 of the South Bend Municipal Code in order to adjust regular sewage rates and heavy demand surcharge rates and to clarify other Code provisions. Mayor Luecke noted that he Chaired the Advisory Committee which held eight (8) meetings. Their recommendations included: addressing significant backups in basements first; establishing a multi-year plan; establish across the board rate increases; and implement no outside the city surcharge. A 2-phase approach has been suggested. The looked at buffering the rate increase from 34% to 29% and would provide a notebook of information along with a CD at this evening's Common Council meeting. John J. Dillon, Director of the Division of Environmental Services provided a CD to the Committee entitled "City of South Bend Combined Sewer Overflow Long Term Control Plan, Advisory Committee Handbook July 2005", however noted that it may not be compatible with the Council's computers. He also provided a multi-page handout entitled "Sewer Improvement Program-Phase I Planning & Community Outreach, November 14, 2005", a paper copy of the November 14,2005 Utilities Committee of the 2005 South Bend Common Council -Page 1 of 3- r power point summary provided at the last Utilities meeting, a brochure also provided at the last Utilities Committee meeting dated October 2005 entitled "River Report", and a one -page handout entitled "Notice of Hearing -Sewer Rate Change" (copies attached). He noted that the handouts include a "typical resident" summary of 5,000 gallons per month, and noted that seniors would probably pay less because their usage is less. Dr. Varner noted that Marion County was noted listed in the city's information. A recent article showed that their monthly rates of $9.95 will go to $18.00. Mr. Dillon stated that they are also planning to implement a phased -in rate increase. Mr. Skomp of Crowe Chizek stated that Indianapolis is able to keep their rates lower because of subsidies from property taxes, however he was unable to state the percentage of that subsidy. In response to a question from Dr. Varner, Mr. Dillon stated that both the EPA Region No. 5 and IDEM are reviewing the city's progress. Mayor Luecke noted however that EPA can "trump" IDEM. John R. Skomp of Crowe Chizek and Company LLC stated that a rate financial report has been filed with the Office of the City Clerk. He then provided a letter dated November 14, 2005 to the Committee which addressed among other items the I/N Tek letter and recommendation from Steven K. Brock. Mr. Skomp stated that he believes that Brock's recommendation would lead to lower rates in the short-term but may lead to higher rates in the long -term. He noted that various suggestions and scenarios were discussed by the Advisory Committee. In response to questions from Dr. Varner, Mr. Gilot stated that in 2003 there was a 24% across the board increase and in 2004 there was a 5% across the board increase. Rick Campoli, Controller of I N Tek I/N Kote, noted that his company appreciates the efforts of the Advisory Committee. Steven K. Brock did send a letter dated October 12, 2005 where he outlined a fixed percentage approach over 20 years. Similar approaches have been used in Boston and Atlanta to fund their CSO requirements. He stated that he believes that this is another option worth considering where the increases would be just short of 10% increase each year. He noted that modeling has been done, however that Mr. Brock was unable to be here today on such late notice. Mr. Skomp stated that he has not seen the model highlighted in Mr. Brock's letter. Dr. Varner suggested that if the study is available that it should be made available to everyone. He questioned why the city should have customers pay more upfront if the end result over 20 years would be the same. Mayor Luecke noted that philosophical issues are involved, noting that once the city gets past the first four (4) years there should then be single digit increases. Mr. Dillon added that each year there is $4 -5 million proposed for equipment and repairs. Mr. Gilot stated that the city is now in control and they would like to remain that way. He noted that the Board of Public Works is working with the University of Notre Dame on an embedded sensor network. UND is the second largest customer and they are discussing having UND reroute so that there would be only a sanitary line coming into the plant and they are discussing November 14, 2005 Utilities Committee of the 2005 South Bend Common Council -Page 2 of 3 - offering UND a credit of 15% on their bill which is currently $800,000 and is projected to increase to $1.4 million. With credits it would increase to $1.2 million. Mr. Gilot stated that he would also like as many jobs to go locally as possible over the next twenty years, with the average construction job now being $50,000. Council Member Rouse inquired about the request of the South Bend Community Schools to which Mayor Luecke noted that they could not give them a reduction. Council Member Rouse suggested that perhaps something could be worked out in this area without increasing the cost to other taxpayers. In response to a question from Dr. Varner, Mr. Gilot stated that the current ordinance permits the Board to provide for special rates for special customers. He noted that he is unaware of that provision of the ordinance being used in the past, and that it does not require any Council action. Following discussion, Council Member Puzzello made a motion, seconded by Council Member Kuspa that Bill No. 72 -05 be recommended favorably to Council. The motion passed. Council Member Rouse then called for a presentation on Bill No. 73 -05 which would amend Chapter 16, Article 2, Section 16 -6 of the South Bend Municipal Code in order to increase rates for the collection of solid waste. Mr. Dillon and Mr. Gilot provided the presentation and gave a 5 -page handout on Project Reieaf and Solid Waste (copy attached). They noted that the rate would go from $8.00 to $8.80 per month. Following discussion, Council Member Puzzello made a motion, seconded by Council Member Kuspa that Bill No. 73 -05 be recommended favorably to Council. The motion passed. Council Member Rouse then called for a presentation on Bill No. 74 -05 which would amend Chapter 9, Article 4, Section 9 -22 of the South Bend Municipal Code in order to increase rates for leaf removal. Mayor Luecke noted that the rate would go from $ .33 per month to $ .99 per month. Following discussion, Council Member Puzzello made a motion, seconded by Council Member Kuspa that Bill No. 74 -05 be recommended favorably to Council. The motion passed. Council Member White noted that she is uncomfortable with the discussions with the University of Notre Dame which Mr. Gilot briefly highlighted. She stated that the end result is to "push the rates off to someone else and people are entitled to know what is going on." She stated that there needs to be a more public process. There being no further business to come before the Committee, Council Member Rouse adjourned the meeting at 5:54 p.m. Respectfully submitted, Council Memb imothy Rouse, Vice - Chairperson Utilities Committee KCF: kmf Attachments November 14, 2005 Utilities Committee of the 2005 South Bend Common Council -Page 3 of 3 -