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HomeMy WebLinkAbout05-23-16 UtilitiesOFFICE OF THE CITY CLERK KAREEMAH FOWLER, CITY CLERK UTILITIES MAY 23, 2016 4:25 P.M. Committee Members Present: Dr. David Varner, Oliver Davis, Randy Kelly, Regina Williams- Preston Other Council Present: Gavin Ferlic, Karen White, John Voorde, Jo M. Broden Others Present: Kareemah Fowler, Joseph Molnar, Kathleen Cekanski - Farrand, Alkeyna Aldridge Agenda: Bill No. 23 -16 — New rules and regulations for Installation Charges (Substitute Bill) Yard Waste Update, Department of Public Works Committee Chair Dr. David Varner called the Utilities Committee meeting to order with two (2) items on the agenda. He explained they had a meeting on Thursday May 19th to discuss this bill. One question raised was has the City had conversations with some of the affected parties such as the County and other larger corporations. Also the question was raised who would actually pay these assessment fees because there are so many exceptions in the bill. Committee Chair Dr. Varner asked Public Works Director Eric Horvath to provide the committee an update on what has transpired since the last meeting. Eric Horvath, Director of Public Works with offices on the 13th Floor of the County -City Building, spoke to the Committee regarding Bill 23 -16. The original bill put together essentially changed the effective dates for assessments and compact fees due and limited the compact to sewer only. It also allowed for exemptions to when these assessments would be paid. There were a number of different exemptions which made it where if money from an entity that was not the City would be waived. After the discussion last week, there was interest in further dialogue but also concerns related to the builders having this black cloud over their heads for back charges. This is now substitute bill three (3) and this bill goes back to the original language with no exemptions. The elimination of the water compact is still included. It would establish new effective dates that mean if someone is connected by or has a permit to connect by August 1St of 2016 there will not be an assessment due on that parcel. This also gives the City the ability to retain the assessments paid up until January 1St 2016. There are no rate changes and no exemptions in this bill. If this moves forward at least builders and developers can feel comfortable that they will not be back charged. 455 County-City Building • 227 W. Jefferson Boulevard • South Bend, Indiana 46601 Phone 574- 235 -9221 • Fax 574- 235 -9173 • TDD 574- 235 -5567 • www.SouthBendIN.gov JENNIFER M. COFFMAN ALKEYNA M. ALDRIDGE EMILY SEXTON CHIEF DEPUTY/ CHIEF OF STAFF DEPUTY/ DIRECTOR OF POLICY ORDINANCE VIOLATION CLERK Committee Chair Dr. David Varner asked if Mr. Horvath anticipates a second bill will come to Council that were in the first bill. Mr. Horvath responded he anticipates dialogue occurring and would like some direction from the Council if they would like to see exemptions or not. This bill right now gets us to a point where after August 1" 2016 the department will know what we need to be doing and everything will be clear. Committee Chair Dr. Varner stated it seems everyone came to a consensus at the previous meeting that no one wanted to see back charges made and wanted to clarify that in regards to development they are not hindered by something the Council does. Unfortunately this is a problem that is fifteen (15) years in the making and the sense is that there needs to be a resolution but we need to make sure that what we end up with does what we want. One of those issues that needed more discussion was the exemptions. He asked Mr. Horvath if there will be a reconsideration in the future of exemptions. Mr. Horvath responded yes and he would like direction from the Council regarding the exemptions. There would be no exemptions as of the passage of this bill. The assessments are essentially to recoup costs for extension of utilities. The exemptions were originally brought forward with the idea that if someone else paid for the extension of the utility there should be no assessment charge. Many other municipalities do not have those exemptions and there were no exemptions in the original 2002 ordinance. If the Council prefers not to grant exemptions that would be fine. Committeemember Oliver Davis asked if there is any other language that came out of the previous meeting that needs to be inserted into this new bill or would they be good to vote tonight. Council Attorney Kathleen Cekanski- Farrand stated it was publicly stated after the last Utilities Committee that the Council would not be taking any formal action today. Mr. Horvath stated he understands that we don't need to pass this immediately but the sooner we do this the more clarity we have for builders and developers. Councilmember Gavin Ferlic stated in his opinion all this does is provides clarity to developers and builders that they will not have to pay any fees before August I". In that time between now and August 1 st, we have the opportunity to see what we should do for the long term. Councilmember Gavin Ferlic made a motion to accept this substitute bill now on file in the City Clerk's Office. Committeemember Oliver Davis seconded the motion which carried unanimously by a voice vote. Committee Chair Dr. David Varner asked someone from the County to share their concerns with the Committee. 2 Bill Schalliol, St. Joseph County Executive Director of Economic Development, expressed the County's concerns. These included the rate of the assessment fee and how it is going to be applied. The County builds a lot of utilities that are hooked into the South Bend system and they want to have the ability to be part of the assessment process and recoup those costs. The compact fee section had two (2) issues first being the waiver of annexation. The town of New Carlisle is seven (7) miles to the west of South Bend but it would be a quid pro quo for them because why would they sign a waiver of annexation when they will never be annexed by South Bend. The compact fee also creates an unfair burden because they are already paying one hundred and ten (110) percent of the rate if you are outside the City limits. Once a project gets hooked into utilities regardless if they are in Roseland or New Carlisle they are then rate payers and paying into the system. We would be happy to be part of any conversation. Councilmember Jo M. Broden asked if Mr. Schalliol had seen the new substitute bill. Mr. Schalliol responded no. Jeff Rea, St. Joseph County Chamber of Commerce, stated the June date works well for the Chamber. A number of developers have been concerned about this and they are pleased that the Council has pledged to more conversations and additional dialogue to allow them to better understand the issue. This is a complicated matter and it is South Bend's system but any bill would have a direct impact on a number of development projects in the works. Committee Chair Dr. David Varner stated June 27th has been the goal to approve this as was discussed at the last meeting. Going forward, we don't want to approve something and then see unexpected consequences because we didn't do enough research. If we eliminate all these exemptions there could be those unintended consequences especially with the TIF Districts. After Engineering can meet and have these discussions with developers and the County officials then we can schedule another public meeting in early June. With no further business before the Committee, Committee Chair Dr. David Varner adjourned the meeting at 4:48 p.m. Respectfully Submitted, avid Varner, Committee Chair