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HomeMy WebLinkAbout09-28-93 Personnel & Finance and Utilities Committee Report JOINT PERSONNEL AND FINANCE AND UTILITIES COMMITTEE To the Common Council of the City of South Bend: The joint Committee of the Personnel and Finance and Utilities Committee was called to order by the Utilities Chairperson,n Council Member Tom Zakrzewski, at 5: 00 p.m. on September 28, 1993 , in the Council Informal Meeting Room. Persons in attendance included Council Members: Luecke, Washington, Kelly, Puzzello, Slavinskas, Zakrzewski, Coleman, Duda, Ladewski; Richard Hill, Kevin Horton, John Stancati, John Leszczynski, T. Brooks Brademas, John Byorni, William Egan, Don Porter, and Kathleen Cekanski-Farrand. Council Member Zakrzewski noted that the main item on the agenda was to discuss Bill No. 81-93 which addresses the 5. 1 million dollar Bond Issue for the Municipal Waterworks. Mr. Richard Hill, Bond Council Attorney, then made the presentation. He presented to the Committee a document entitled "Waterworks Revenue Bonds and Water Rate Case Summary Timetable" dated September 27, 1993, (copy attached) and noted that it is anticipated that the bond sale would take place on October 21st, with the closing to take place on November 3rd. He then reviewed the handout entitled "Summary of an Ordinance Amending the Bond Ordinance Previously Adopted by the Common Council" (copy attached) . He noted that the Bond would basically finance the relocation of the main office, address Filtration Plant improvements, address repairs to existing reservoirs, repaint existing tanks, and allow for the construction of 5 (five) new wells. The maximum interest rate would be 8% (eight percent) with principal payments beginning January 1, 1995, and continuing through January 1, 2009. Mr. John Stancati then provided a 3 (three) page handout (copy attached) further outlining the Bond, projects and timetables, and a comparison to the original Bond breakdown. Under the public portion, Mr. T. Brooks Brademas stated that approximately one year ago when a 27% rate increase was 1 pppassed on to the consumers it incorporated a 2 million dollar building. This building was projected to cost $200.00 (two hundred dollars) per square foot. Mr. Brademas contends that the Bond has included an excess of 1 million, 125 thousand dollars in light of the savings generated by the new location. He further contended that there is no need for Local Option Income Tax. Council President Luecke clarified the City's position that there was no excess in the Bond Issue. Following further discussion, Council Member Luecke made a motion, seconded by Council Member Ladewski, that Bill No. 81-93 be recommended favorably to Council. The motion passed. There being no further business to come before the Committee, the meeting was ajourned at 5: 15 p.m. Respectfully submitted, Council Members: Tom Zakrzewski, Chairperson Utilities Committee Ann Puzzello, Chairperson Personnel and Finance Committee attachments