10-14-02 Utilities Committee - Laserfiche WebLink

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tommittu librport ttitttvz Ottittittttt The October 14, 2002 meeting of the Utilities Committee was called to order by its Chairperson, Council Member Al`Buddy"Kirsits at 4:30 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members Aranowski, Pfeifer, King, Kuspa, Varner, Kirsits, Coleman and Kelly; Mayor Stephen Luecke, Public Works Director Gary Gilot, Director of the Division of Environmental Services Jack Dillon, Assistant City Attorney Aladean DeRose, Community&Economic Development Director Jon Hunt, John Skump, Richard Nussbaum, John A. Nielsen, Director of Government and Public Affairs at Ispat Inland, Inc.; Paul A. Kempf, Director of Utilities at the University of Notre Dame;Terry Bland of the *00 5,ltu i ' :vt uu*, Kathleen Cekanski-Farrand, Council Attorney;and other unidentified members of the public. Council Member Kirsits stated that this Committee meeting was called in order to continue the presentation by the City Administration on the proposed sewer rate increase from three weeks ago. Mayor Luecke stated that the City Administration would like to reintroduce a proposed sewer rate ordinance so that there would be first reading on the ordinance at the next Common Council meeting. The proposed rates which will be proposed will reflect a 57% increase across the board which is based on a cost of service study. Mayor Luecke noted that since the first sewer rate increase ordinance was withdrawn by the City Administration, they have had meetings with the larger users, They have revised the first ordinance somewhat and hope to buffer the impact on the larger users somewhat. Mr. Gilot then reviewed a handout entitled "October 14 Briefing to the South Bend Common Council Regarding Proposed Wastewater Utility Rates" (copy attached). He stated that the overall goal is to get everyone paying in relation to what they receive. Mr. Gilot then provided copies of a "Rate Review&Cost of Service Study--Revenues &Consumption"and a"Rate Review &Cost of Service Study --Revenues & Consumption--Current"; pages 17-20 of the study; as well as a chart on revenues,0&M, replacement,debt service and capital (copies attached). Dr. Varner inquired what the test year was for the information. Mr. Skump stated it was June 30, 2001. Mr. Gilot noted that the City is still far apart with the University of Notre Dame and INTEK, however the Administration hopes the ordinance will be passed by year-end. He stated that the City needs to move on the cost of serving principles since the City has over 500 miles of old sewers in its system. $100 million will be the least expensive CSO project with the Environmental Protection Agency pushing the City to make changes in the next 10-15 years. Mr. Skump stated that they have looked at capital improvement plans and believe that the pay as you go program is the best alternative,except for larger pmjects. Dr. Varner asked if the revenue projections for the next five (5) years have been included for the Council to review. Mr. Skump stated that 5-year projections have not been included and directed the Council to look at the information on page 15 of their study which shows that$19 million in revenue is needed. He stated that they can do projections based on customer growth, but have not done so.