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Home My WebLink About12-08-86 Utilities Committee (gnn untfln amid tit Mourn= Olount l of the f{tg of*mall Witte UTILITIES C 0 MM I T T E E The December 8, 1986 meeting of the Utilities meeting was called to order by its chairman, Joseph Serge at 3:45 p.m. in the Council informal meeting room. Persons in attendance included Councilmen: Serge, Braboy, Beck, Puzzello, Zakrzewski, Voorde, and Barcome; Bill Sneer, John Leszczynski, Carol Sanders, Rex Voohrees, Carolyn Pfotenhauer, members of the news media and individuals specifically listed under each of the bills, and the Council Attorney, Kathleen Cekanski-Farrand. Councilman Serge then called upon Mr. T. Brooks Brademas to address the Committee with regard to Bill No. 134-86. Mr. Brademas then introduced Mrs. Rebecca Fisher, an attorney representing his corporation, and explained a prepared statement to the Council with regard to Bill No. 134-86 (attached). He noted that he was basically requesting that Sec. II (d) be deleted of Bill No. 134-86 and if this would be done that he would drop his current lawsuit pending against the City. Mr. Leszczynski noted that in his opinion it would not be proper to discuss the proposed amendment of Mr. Brademas. The Council Attorney noted however that such discussion was proper since it directly affected a significant portion of the proposed bill before the Council. Following further discussion by the Committee on this item, it was recommended that the bill be discussed at a later portion in the Committee meeting. The Committee then reviewed Bill No. 127-86 which would appropriate $90,25 • from the Water Works Depreciation Fund for defraying unanticipated expenditures in 1986. Mr. Rex Voohrees noted that the appropriation would cover various equipment repair in meters of 2 inches or larger which would be replaced. Following discussion by the Committee, Councilman Barcane made a motion seconded by Councilman Beck that Bill No. 127-86 go to Council favorably. The motion passed. The Committee then reviewed Bill No. 130-86 which would appropriate the sum of $60,733 from the Solid Waste Operating and Maintenance Fund for the purpose of defraying unexpected costs in 1986. Carol Sanders noted that the appropriation was necessary to help defer the cost involved in adding a 9th route to the collection and to help off-set the special advertising costs involved with the campaign to attract new customers. In response to a question by Councilman Paszek it was noted that 3,000 new customers were added to the trash collection system of the City. Currently there are 20,000 customers. Councilman Barcome how money could be spent when it was not had and questioned the overall process being utilized by the Controllers Office. Following discussion, Councilman Beck made a motion, seconded by Councilman Serge that Bill No. 130-86 go to Council favorably. The Motion passed. The Committee then reviewed Bill No. 131-86 which would appropriate raft PUSS awn. PUal SUING en $42,128 from the South Bend/Clay Waterworks Depreciation Fund to Account No. 399 within the South Bend/Waterworks Depreciation Fund for purposes of defraying unexpected expenditures for 1986. Mr. Bill Smeer noted that this was an in-line transfer which was necessary in light of the Clary Utilities. Following discussion, Councilman Barcome made a motion seconded by Councilman Paszek that Bill No. 131-86 be recommended favorably. The motion passed. The Committee then reviewed Bill No. 131-86 which would appropriate $18,000 from the South Bend/Clay Sewage Works and Maintenance Fund to Account No. 354.0 and Account No. 390.0 within the South Bend/Clay Sewage budget. Mr. Rex Voohrees noted that this bill would help offset the additional costs which were not anticipated in the budgetary process. Councilman Barcome made a motion seconded by Councilman Paszek that Bill No. 132-86 go to Council favorably. The Motion passed. The Committee then reviewed Bill No. 133-86 which would appropriate $200,000 from the Sewage Works Operation and Maintenance Fund for the purpose of defraying of anticipated costs incurred in 1986. Mr. Rex Voohrees noted that the appropriation was necessary to help offset the unanticipated cost of electrical current and other contractural Line Items. Councilman Paszek made a motion seconded by Councilman Barcome that Bill No. 133-86 go to Council favorably. The motion passed. The Committee then returned to review Bill No. 134-86 which would amend Chapter 17 of the South Bend Municipal Code by establishing a schedule of rates, charges and surcharges rendered by the South Bend Treatment Plant. Mr. Leszczynski then offered an amended version to the bill and added further that the amended version would be further amended and that he would have a new version of it at the time of the caucus meeting later this evening. Councilman Voorde noted that the extra surcharge for the high concentrations is something that the Council had been requesting of the City Administration for years. He also questioned what the projected new income from such a surcharge would be on an annual basis and was told that approximately $1,000 per year would be generated. Mr. Leszczynski noted that the purpose of the overall bill was two-fold, namely that the basic rate to residential and commercial users would be increased by 97. an and extra surcharge to high concentrators into the system would be added. He then explained four graphs (attached) as further explanation of the proposed increases. He noted that EPA limits must be met and in certain circumstances fines of $10,000 to $25,000 daily would be assessed for non-compliance. He further noted that criminal penalties often are attached if municipalities fail to comply with such EPA standards. He noted several cost effective measures such as designing items in-house, cutting personnel, which in his opinion helped to justify the overall rate increases. -2- 4 Councilman Barcome questioned how long the 70% increase in rates lasted and was informed that it was approximately 6 years. He then questioned Mr. Leszczynski how long the 9% would last and was told it would cover approximately two years. Council Barcome questioned these facts in further detail. Mr. Leszczynski added that there would be a zero balance at the end of this month in the Department. Councilman Serge then questioned whether a 3% increase in the overall rate increase to residential and commercial users could be considered as opposed to the 9% increase. Mr. Leszczynski noted that a 3% increase would generate approximately $180,000 in new revenues and it would not be sufficient to meet the ongoing costs. He further added that there are approximately 40,000 customers in the system. Councilman Beck noted that there political ramifications and the Council must consider the proposed increase very carefully. Councilman Paszek noted that he and several other Councilmen had requested specific figures with regard to cost and revenue projections which had not been received to date by the Council. Councilman Voorde also voiced concern in this area. Mr. Leszczynski noted that we would attempt to provide such information at the time of the caucus meeting later this evening. Mr. Wensits questioned approximately what percent of the $100,000 to be generated by the surcharge would be paid by New Energy and was told that approximately 907 would be coming from the New Energy Corporation. After further discussion, Councilman Barcome made a motion seconded by Councilman Beck that no recommendation be given to Bill No. 134-86 substitute version. The motion passed. There being no further business for the Committee the meeting was adjourned at 4:45 p.m. Respectfully submitted, Joseph Serge, Chairman -3-