11-13-02 Utilities Committee - Laserfiche WebLink

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MVommitt poi t tt1ttt'o toutinittu The November 13, 2002 meeting of the Utilities Committee was called to order by its Chairperson, Council Member Al "Buddy" Kirsits at 4:00 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members Varner, Kirsits, Aranowski, King, Kelly, Kuspa and White; Mayor Stephen Luecke, Public Works Director Gary Gilot, Director of the Division of Environmental Services Jack Dillon, Chief Assistant City Attorney Aladean DeRose, Mr. Robert L. Miller, Sr., Mr. Terry Miller, Mr. John Skomp, Mr. Paul A. Kempf, Mr. John DeLee, Mr. Matthew S. Cullinan, Mr. Tim Baker, Mr. John Mountsier, Mr. William Hoye, Terry Bland of the gisouth Vienb griburce,and Kathleen Cekanski-Farrand, Council Attorney. Council Member Kirsits noted that the purpose of the Committee meeting was to review Bill No. 88-02 which incorporates proposed new sewer rates. He noted that the bill was referred to the Utilities Committee on Monday at the Common Council meeting for review and recommendation. Council Member Kirsits noted that there was not a quorum of the Committee present. He stated that the meeting would be informational only and that no vote or recommendation would be made today. He suggested that the City Administration utilize the first twenty (20) minutes of the meeting to review their proposal. He further suggested that the meeting last until approximately 5:30 p.m. so that all persons present would have the opportunity to be heard. Mayor Luecke thanked the Committee to review the revised bill addressing sewer rates. He stated that a sewer rate increase is needed and believes that the proposed rates are fair and equitable. Mayor Luecke noted that the first ordinance proposed earlier this summer placed.a burden on the large users and was withdrawn from further consideration at the request of the Council. He stated that the City Administration has listen to the concerns raised and are now coming back with a phased in increase. Mayor Luecke concluded his remarks by stating that they must meet capital expenses and that they should be on a pay as you go basis. Director of Public Works Gary Gilot then addressed the Committee. He provided a handout to the Committee entitled "South Bend Wastewater--A Strong Economic and Environmental Asset for Our Community" (copy attached) and summarized the document. along with Mr. John Skomp of Crowe Chizek. They noted that the new rates would be phased in over a three(3) year period. Mr. Skomp then highlighted information in the "South Bend Municipal Sewage Works South Bend, Indiana, Revised Cost of Service Study October 31, 2002" (copy attached) and specifically cited information on pages 11, 17-20, 22, 28,48, and 50. He noted that Section III was formerly in the appendix in the prior Cost of Service Study. He noted that the salaries and wages are based on 2003 rates and budget figures. Council Member White asked what amounts would be paid by I/N Tek and I/N Kote as well as the University of Notre Dame. A member of the public stated that I/N Tek and I/N Kote would pay an additional $1.49 million by year 3 and that the University of Notre Dame would pay an additional $1.325 million by year 3. Council Member Kirsits noted that there is a reduction proposed for residential users or small users in the first year under the phased in proposal. Utilities Committee