01-23-17 Council Mintues - Laserfiche WebLink

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REGULAR MEETING JANUARY 23, 2017 that is an approach that the City wants. We hope that it is an approach that the Council does not want at this time. Councilmember Oliver Davis asked, For the record, all of the members who are outside the corporate boundaries have officially been notified, so no one can stand up tonight and say that they have not been notified? Could you elaborate on that a little bit more? Could you tell me how did you notify them? Mr. Schmidt responded, The statute requires a ten (10) day period after the notice is sent before we can have this particular hearing. I believe it was January 11th, 2017 or January 12th, 2017 that the notices went out. I had them send me a notice just so that I knew that the process was working. I believe the Director of Public Works, Eric Horvath, also had a notice sent to him. There is a lot of positive evidence that suggests that the notices were successful. We took the list of customers, as of a certain date —so it was January 10th, 2017 or January 11th 2017. We had to certify that this was the active list of outside customers and that all these people were receiving the notices that were on this list. Councilmember Randy Kelly asked, Can you just run me through this, in terms of how this will work in action? If we pass this tonight, when will people be expected to pay in this new way? What would the process be for any special exceptions, relative to them? Mr. Schmidt responded, The surcharge that was proposed in the ordinance and voted on in October, 2016 was fourteen percent (14 %). This came upon recommendation of outside Counsel. It also came upon recommendation of other communities in the State and through guidance of the IURC which said to basically keep it under fifteen percent (15 %). There is a ramp -up provision —so, 2017 would be five percent (5 %); 2018 would be an additional five percent (5 %); and then in 2019 an additional four percent (4 %) to get to that fourteen percent (14 %), then it would be fourteen percent (14 %) thereafter. The City Ordinance, Section 17 -29, addresses what is called a "private use agreement." It allows for the City, through its Board of Public Works to negotiate, with particular customers for a special rate. It places the burden on the customer to financially justify the reduced rate that they would be receiving. There is no formal policy in place as to what particular elements would be used to justify such a special rate, but it sort of has to pass the smell test. Once it passes the smell test and we see the financial justification of the customers, Public Works and that particular customer would enter into an agreement. They would then bring that agreement, after passage by the Board of Public Works, to Council, asking for Council to agree to such a rate by action of a resolution. Part of the rules of Section 17 -29 do require yearly check -ins with Council to confirm that the numbers that were presented in the special rate agreement were true —that the impact is true; that it is ongoing. So, there is an opportunity for a really solid check - and - balance to the system. It keeps Council in the loop of anybody receiving a special rate. Councilmember Jo M. Broden asked, That does not preclude multiple -year agreements, though, by the petitioner? Mr. Schmidt responded, No, and in fact multiple -year agreements are probably appropriate, however it would still have to come in front of Council and there could be all kinds of unique language in the agreement that would place the burden, again, on that applicant to make that justification to Council, so the Council has the reassurances that the special rate is justified. Councilmember Dr. David Varner stated that the sense that he had gotten from the Committee meeting with the petitioner was that the Council had the final say on the approval, not the Board of Public Works. Mr. Schmidt responded, Absolutely. Councilmember Dr. Varner asked, Won't you make that clear? Mr. Schmidt responded, Yes. Nothing can be done without Council, and that also includes modifications and extensions. It does sort of push the burden back on the Board of Public Works and the customer to put all the facts together to come with the agreement —to have that all prepared for the benefit of Council beforehand. 0J