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Utilities Committee
A joint meeting of the Personnel and Finance Committee and the Utilities
Committee was called to order at 4: 00 p.m. on September 9 , 1982 by the
Utilities Chairman, Councilman Raymond Zielinski, in the Council Meeting Room.
Persons in attendance included: Councilmen McGann, Zielinski, Crone,
Szymkowiak, Harris , Voorde, and Beck; John Leszczynski, Mike Vance, Rich Hill ,
Joseph Kernan, a representative from Coopers & Lybrand, Kenneth Fedder, John
T. Phair, Mike Shinevar, Jack Goens , Marchmont Kovas , Paul Freeman, and
Kathleen Cekanski-Farrand.
Councilman Zielinski stated that the purpose of the meeting was to
review the rates presently being charged for sewage and water which would
precede the review of the Utilities proposed budget for next year.
City Attorney Hill then gave the Committee' s an update with regard to
the pending litigation. He stated that in June of 1981 a lawsuit was filed
challenging the sewer rate; and that there was -a possibility that the
Water Works would be appealed. In light of this background he stated that
many of the concerns which the Council may have should be addressed more
appropriately in an Executive Session.
Councilman Zielinski then called upon persons in attendance . Mr. Fedder
stated that he represents the River Bend Apartment Association which filed the
initial lawsuit. He noted that in 1980 the Common Council passed the two
rate ordinances . He stated that his clients have a continued interest in
these laws . He believes that the following questions should be considered:
- How are the ordinances being administered?
-- Is the deficiency being corrected?
-- Is an amendment to either ordinance in order?
-- Should the ordinances be amended prior to the review at four year
intervals?
-- Is an adjustment in the minimun charge in order?
-- Should the question of vacancies be more directly addressed?
Mike Vance noted along with the City Attorney that the sewage rate
is adjusted outright by ordinance whereas the water rate would have to be
passed by ordinance and then approved by the Public Service Commision.
Mike Shinevar, the manager of Irish Hills stated that he believes his
situation was representative of multi-unit dwellings . Presently he has
164 units and expects to increase to 1,130 units . If a 5/8 inch meter would
be installed in each unit, the cost would be based on actual usage. He
calculated that this would save approximately $70,000 per year in the complex
had all 1, 130 units . He stated that presently appoximately 1/2 of the minimum
is being used He basically contended that the minimums are artifically high.
' Jack Goens of Park Jefferson stated that in 1968 789 apartments were
constructed and that they have one meter (8") for all. He also believes that
the minimum charge is unfair.
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Page 2 .
Personnel and Finance Committee
Utilities Committee
Mr. John Phair of the Holiday Corporation (Portage Place) began in 1978
questioned several of the figures in the Coopers-Lybrand report. He noted
that this study showed that multi-family units used approximately one-half
of a single family home. Over the past two years there had been a 107
vacancy or approximately 500 empty units . He further noted that with the
Quality Inn as an example, that they would have to pay $1, 320 per month
even though it is vacant because there is one tenant in the building.
Councilman Crone as well as other councilmen questioned the minimum rate
and the "vacancy question" . She believed that this area as well as several
questions raised by Mr. Fedder should be addressed in an Executive Session.
The joint committees then proposed that an Executive Session be held
Monday, September 13th at 3: 30 p.m. to further discuss these issues . Proper
notice of the meeting would be sent .
There being no further business to come before the Committee, Councilman
Voorde made a motion, seconded by Councilman Beck that the meeting be
adjourned. The meeting was adjourned at 5: 10 p.m.
Respectfully Submitted,
Raymond Zielinski, Chairman
Utilities
Beverly Crone, Chairman
Personnel and Finance