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HomeMy WebLinkAbout10-12-92 Utilities e Committee Report UTILITIES COMMITTEE To the Common Council of the City of South Bend: The October 12 , 1992 meeting of the Utilities Committee was called to order by its Chairperson, Council Member Tom Zakrzewski, at 5: 05 p.m. in the Council Informal Meeting Room. Person in attendance included Council Members Luecke, Washington, Kelly, Puzzello, Slavinskas, Zakrzewski, Coleman, Duda, Ladewski; John Leszczynski, John Stancoti, John Rodin, Joseph Amaral, Don Fozo, Bill Dillon, T. Brooks Brademas, John Stompf, Terrance Bland, members of the News Media and Kathleen Cekanski-Farrand. Council Member Zakrzewski noted that the purpose of the meeting was to' review three Bills sent to the Committee for review and recommendation, namely Bill No. 77-92, 78-92, and 79-92 . Mr. John Stancoti then reviewed Bill No. 77-92 . He noted that this Bill would increase the current monthly customer charge to sewer service customers from $. 50 per month to $.71 per month in order to eliminate a negative cash balance situation. He indicated that currently there is a $141, 000. 00 shortfall and that this loss should be recovered over the next 3 years if the new rate is approved. Mr. Stancoti noted that Bill No. 78-92 would raise the water leak insurance rate from $. 64 per month to $. 98 per month. He noted that the study conducted by Municipal Consultants showed that there is a current loss of $300, 000. 00. The rate adjustment would address that shortfall. It was also noted that the plumbers who do work under this program would have a 3 year moratorium on costs charged by them. Mr. Stancoti then reviewed Substitute Bill No. 79-92 which would establish a new schedule of rates and charges for services rendered by the City of South Bend Water Works. He noted that the purpose of the Substitute Bill was amend Section 17-47 addressing " non-recurring charges" . Mr. Stancoti noted that it has been 11 years since there has been a rate increase. During this same period of time there have been increases in postage, labor and related benefits, as well as EPA mandates. There is a $300, 000. 00 shortfall anticipated by the end of this calendar year. New wells, new valves and related equipment are needed by the Water Works system. He noted that if this increase is passed by the Common Council that the City of South Bend would still have the lowest water rates in Indiana. Mr. T. Brooks Brademas then spoke in opposition to Bill No. 79-92 . He noted that several years ago he had brought suit against the City involving a Utility Rate increase and was awarded $65, 000. 00. He stated that he believes the City action is premature and that he opposes the proposed bond issue projected to be approximately Five Million Dollars. Council Member Coleman questioned the cost to remodel the Robertson's building and was advised that the entire building would cost approximately Four Million Dollars. Mr. Brademas noted that the University of Notre Dame will be providing sesquicentennial memorabilia which will be housed as a tourist center in part of the facility. Council Member Slavinskas questioned where the monies are deposited with regard to Bill No. 78-92 . Mr. Stancoti noted that the deposits are consistent with State Law and also noted that if Bill Nos. 77-92 and 78-92 are passed by the Common Council that they do not need State approval. Council Member Slavinskas questioned whether the 49 per cent increase in postage reflects the City changing from a post card to a letter billing system. He was advised that it was and that this change was done since this was the number one complaint voiced by its customers. Mr. Slavinskas noted that the overall increase is not a 27 per cent increase to the smallest user but rather a 91 percent increase. He noted that this percentage increase is important since many individuals living in his district are retired. It was noted that the Commission believes that a "life-line rate" should be addressed in this rate adjustment as noted by Mr. John Stompf of Municipal Consultants. Mr. Stancoti noted that they inquired about a rate adjustment for those individuals on fixed incomes and was advised that they could not do this. Mr. Leszczynski noted that it has been over 11 years since a rate increase was approved and that the City would still be the lowest. In response to questions raised by the Committee, Mr. Dillon noted that Bendix would be paying a 35 per cent increase which would be approximately $100, 000. 00 new dollars to them. Following further discussion Council Member Slavinskas made a motion, seconded by Council Member Ladewski, that Bill Nos. 77-92, 78-92 and Substitute Bill 79-92 be recommended favorably to Council. The motion passed. There being no further business to come before the Committee, the meeting was adjourned at 5: 35 p.m. Respectfully submitted, Council Member Tom Zakrzewski, Chairperson Utilities Committee attachments