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R `~ 2008 Annual Report of the Utilities Committee
South Bend Common Council
Date: February 25, 2009
To: The South Bend Common Council
The Office of the City Clerk
From: 6~' District Council Member Oliver J. Davis, Chairperson
Utilities Committee
I am submitting the following Annual Report of the activities of the Common Council's Utilities
Committee which is a requirement of § 2-10 (i) of the South Bend Municipal Code. I apologize
for the delay in the filing of this report.
Duties: The Utilities Committee is charged with "overseeing the various activities of all
enterprise entities including but not limited to the Bureau of Waterworks, Bureau of Sewers and
all related entities" pursuant to § 2-10 (i) (10) of the South Bend Municipal Code.
Members: There were four (4) Council Members on this Committee, namely: Council
Member At Large Al "Buddy" Kiirsits who was the Vice-Chairperson; 4~' District Council
Member Ann Puzzello and 3ra District Council Member Thomas LaFountain who served as
members and myself who served as Chairperson. Tim Hudak served as a citizen member.
Meetings:: There were seven (7) committee meetings held to last year, with one of
those being a joint meeting with the Public Works and Property Vacation Committee.
Activities: ~ The Utilities Committee was asked to review four (4) primary matters last
year, namely:
• Proposal to increase the rates for solid waste pick-up due to increased costs for labor,
gasoline and tipping fees
• Received an update on the Notre Dame Sewer Service Agreement
• Proposal of the South Bend Water Works to opt out of the Indiana Utility Regulatory
Commission (IURC)
• Received an overview of the City's Municipal Utilities where it was noted that:
1. Water demand is down 10% from 2007 demand
2. Water quality is excellent
2008 Utilities Committee Annual Report
February 25, 2009
Page 2
3. Online bill payments is increasing
4. More automated meter read devices were installed
5. Wastewater permit compliance is good
6. A CSO LTCP was negotiated with the Environmental Protection Agency
7. Progress is being made on the CSONet and Phase 1 separation
Recommendations for 2009:
1. Seeking More Detailed Financial Information on Enterprise Funds:
In light of the implementation of HEA 1001, the City's General Fund will be challenged more
than ever. On February 19, 2009, the South Bend Common Council reviewed detailed financial
information from the City Controller which focused on three (3) categories:
• Historical Information 12/31/08
• Revenue Report 12/31/08
• Expenditure Report 12/31/08
In light of the Council's goal of increased "communication and transparency", I believe that
historical data, revenue reports, and expenditure reports should also be given on each of the
enterprise funds for review and discussion. We should also consider whether there are any
services being performed where General Funds are used which could be legitimately and legally
shifted or shared with any of the Enterprise operations, thereby freeing up General Fund dollars.
2. Seeking Detailed Information on Sewage Rates:
Ordinance No. 9639-OS was passed in 2005 which established rates and charges for calendar
year 2006, 2007, 2008, and 2009. Detailed information on any short and long-term proposals
should be shared with the Council that the Council and the Utilities Committee has the
opportunity to review and discuss all relevant documentation. As noted in that ordinance and as
codified in South Bend Municipal Code § 17-25, discussion between the City Administration and
the Common Council is to "commence by June 2009". In light of this being a negotiation year
with representatives of the South Bend Fire Department and the South Bend Police Department,
and the time commitment needed for that, scheduling will be critical to assure that the Council
has adequate time to carry out their due diligence requirements in determining fair and equitable
rates.
3. Review of Special Rate Contracts:
South Bend Municipal Code § 17-29 addresses special rate contracts and requires the adoption of
a Common Council Resolution in order to become effective. Relevant date is to be reviewed
by the Utility Committee no later than August 30'h of each year. In addition to a cover letter
Utilities Committee Annual Report
February 25, 2009
Page 3
and a draft resolution, information to be filed with the Office of the City Clerk is to include a
copy of the proposed special rate contract and detailed information to support that there is a 2008
"clearly definable reduction in cost to the sewage works". This Code deadline must be adhered
to for such proposals to be properly reviewed and considered.
4. Review of Water Rates and Charges:
South Bend Municipal Code § 17-48 requires the Common Council to "review at least every
two (2) years all rates and charges of the waterworks". All relevant data is to be filed by the
Water Utility Director on or before June 1St
In closing, as of this date, the Utilities Committee does not have a citizen member. Hopefully
that will be rectified in the weeks ahead. Thank you.
J. Davis, Chairperson
cc: Mayor Stephen Luecke
M. Catherine Fanello, City Controller
Gary Gilot, Public Works Director