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The January 26, 1987, meeting of the Utilities Committee was called to order
by its Chairman, Councilman Al Paszek, at 3:40 p.m. in the Council informal
meeting room.
Persons in attendance included Councilmen: Puzzello, Paszek, Serge, Taylor,
Zakrzewski, Voorde, and Braboy; John Leszczynski, members of the news media,
and Kathleen Cekanski-Farrand.
The purpose of the meeting was to review Substitute Bill No. 5-87 which
would amend the rates, charges and surcharges for services rendered at the
South Bend Wastewater Treatment Plant.
The Director of Public Works, Mr. Leszczynski, then briefly reviewed the
Substitute Bill. He noted that the minimum monthly charge of $5.80 would be
maintained and that the rest of the customers would be receiving an eleven
percent (117) rate increase.
He also noted that there would be a three (3) year phase-in of the
industrial rate.
In response to a question from Councilman Zakrzewski, it was noted that
approximately Sixty-nine Thousand Dollars ($69,000.00) would be generated in
the first year from the industrial surcharge. Councilman Zakrzewski also
noted the letter of January 22, 1987, from the Fair Tax, Inc. In response
to Item 6 with regard to the PFC in the revision of the water rates, Mr.
Leszczynski noted that there was no significance and that each rate would be
based on their own merits.
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In response to a question from Councilman Voorde, Mr. Leszczynski noted that
be had not heard back from the New Energy Corporation. It was also noted in
response to Councilman Puzzello that New Energy would be the only industry
initially affected by the industrial surcharge.
Councilman Paszek questioned how the proposed deficit (even with the rate
increase) would be covered, and Mr. Leszczynski noted that at the end of
1986 there was approximately One Hundred Fifty Thousand Dollars
($150,000.00) remaining.
The Council Attorney then questioned Mr. Leszczynski with regard to the
specific advertising requirements. She noted that when the Council
initially reviewed the original version of Bill 5-87, it was advised by the
City's Legal Department that it could not amend the Ordinance on the floor
and, therefore, no final action was taken in the month of December. Mr.
Leszczynski noted that he would check with the Legal Department and it was
his understanding that because the rate was note being increased for the
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Utilities Committee Minutes
January 26, 1987
Page 2
minimum users, that there would not be an advertisement problem. The
Council Attorney and Councilman Paszek both stressed the need for this
question to be asked as a part of the formal public hearing of the Bill
during the regular Council meeting.
Following further discussion on Substitute Bill 5-87, Councilman Taylor made
a motion, seconded by Councilman Serge, that the bill be recommended
favorably as amended. The motion passed.
There being no further business to come before the Committee, the meeting
was adjourned at 4:00 p.m.
Respectfully submitted,
Councilman Al Paszek, Chairman
Utilities Committee