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HomeMy WebLinkAbout05-16-89 Utilities QJ nmmltttr nrt UTILITIES COMMITTEE i Jo tile (Comm O outwtl of tip OtIg of Einut 11 Mend: The May 16, 1989 meeting of the Utilities Committee was called to order by its Chair Person Council Member Don Niezgodski at 4: 10 p.m. in the Council informal meeting room. Persons in attendance included Council Members: Puzzello, Luecke, Voorde, Duda, and Niezgodski; Joseph Agostino, John Leszczynski, Jack Dillon, Irene Gammon, James Wensits, members of the news, and Kathleen Cekanski-Farrand. Council Member Niezgodski noted that Sean Coleman, a member of the committe, could not be present since he was attending the Area Plan meeting. Mr. John Leszczynski then reviewed a handout entitled "South Bend Waste Water Utility Rate Information, May 16, 1989" (copy attached) and reviewed a series of flip charts. He noted that initially you must define the problem-those customers who have three-quarter inch and one inch meters. He further noted that there are 37,256 South Bend customers and 642 Clay utility customers. In order to satisfy those customers who have three-quarter and one inch meters, the cost would be on an annual basis $5.86 to each of the South Bend customers and $64. 51 to each of the Clay utility customers. It was noted that the $18.20 is a minimum charge per month even if no water is actually used. Mr. Leszczynski noted that the last rate increase corrected past in equities in his opinion. He further stressed that you must have excess capacity. He noted that he is required to send to the State Health Board a letter verifying capacity on each of the new annexations can be properly addressed. Council Member Niezgodski questioned whether the present sewer line could handle the second plant for I/N Tek. Mr. Leszczynski noted that a second line would be needed but that' funds from the state, the county, and I/N Tek and no city monies would be involved. He also noted that I/N Tek would be receiving their water from New Carlyle and not the City of South Bend. Council Member Duda questioned whether the geographic area would be similar to that encompassing University Park Mall. Mr. Leszczynski noted that that geographic area could be properly handled by South Bend. Council Member Voorde Utilities Colkittee Meeting 5-16-89 Page 2 questioned whether there is enough capacity if the City wins it annexation suit. Mr. Leszczynski noted that since it was basically residential in nature with regard to usage that there would be no problem. In response to a question raised by Council Member Niezgodski, Mr. Leszczynski noted that the City of South Bend would begin a program for a total charge of $20. 00 to those customers who would like to downsize from a three quarter inch or one inch meter. He noted further that there have been 15 customers who have downsized to date and 14 customers who have upgraded to date. Mr. Agostino again stressed the need to be able to handle peak usage. Mr. Leszczynski noted that the cost of service analysis properly allocated what charge should be made instead of an across- the-board increase. Council Member Luecke stated that he was pleased with the City's offer to downsize and the overall program. He noted that the people now have a reasonable alternative. In response to a question raised by Council Member Niezgodski, Mr. Leszczynski noted that since a promise to the bond holders and Moody's was made with regard to the bond rating that the program of downsizing offered by the City was within the ordinance and would not require a change of the ordinance. If a change was required to address other issues, it would be a long involved process. It was noted that individuals who are interested in downsizing should call the Water Works Department to schedule the work. It was also noted that if individuals have greater than a one inch meter that the City would give an estimate since the charge would be greater than $20. 00, and may also recommend that they contact plumber. Council Member Niezgodski thanked the members from the City Administration in the solution and he stressed in his opinion he believes it was an equitable one for all parties. There being no further business to come before the committee, the meeting was adjourned at 4:50 p.m. Respectfully submitted, Council Member Don Niezgodski, Chair Person DN:srk Attachment