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REGULAR MEETING
<br />JANUARY 23, 2017
<br />the ordinance, and that would apply not only to I/N Tek and I/N Kote but to everything. There
<br />are things that we have to do to approve a special rate, and we feel that we can do that, but the
<br />Council has to show the reason for this surcharge. To date, there has not been any reason
<br />articulated other than that these customers are outside the City limits. Mr. Nussbaum asked for
<br />an additional thirty (30) days so that discussions with the City could continue, with the goal of
<br />working out a mutually agreeable arrangement.
<br />Carl Schult, 53555 Poppy Road, South Bend, IN, stated that he believed that his residence was
<br />hooked to the same line that comes from I/N Tek and I/N Kote and goes to the Wastewater
<br />Treatment Plant. Mr. Schult stated that he received the notice about changing rates. He stated,
<br />We currently have a rate of over fifty dollars ($50) a month, six - hundred dollars ($600) a year.
<br />There are two (2) retired people living in this home and getting up toward $1,000 a year just
<br />for sewage; no water involved just seems a little exorbitant. Mr. Schult asked if, given where
<br />he lives, he had any Council representation that had any effect on the decision on the rates. He
<br />explained that he takes care of his mother, who lives inside city limits, and noted that his bill was
<br />higher than hers simply because he lived outside city limits. He stated, I just feel like we need a
<br />little bit of relief on sewer rates. We just retired a year ago, and we are making the decision on
<br />where to live in retirement. Things like this are not really a positive factor —you feel like you're
<br />living in a very expensive place in retirement.
<br />Mary Rainey, 52752 East Cypress Circle, South Bend, IN, stated that she opposed any kind of
<br />increase, given that she is retired. Ms. Rainey pointed out that there were programs and benefits
<br />that City sewer and water customers get that County customers do not. She stated, We had
<br />extensive —I mean like thousands of dollars worth of sewage backup in our home on August 15th
<br />and 16th of 2016, and we had contacted the water company and the City Attorney's office on
<br />several occasions. We want a fifty -fifty (50150) program from the provider valve, which is the
<br />only thing they said will keep this from happening again. They will not include us, because we
<br />are outside the City limits. We should be included in anything a City sewer customer gets, too.
<br />Jesse Davis, P.O. Box 10205, South Bend, IN, stated that raising rates and also allowing for rate-
<br />payers to petition for a lower rate if their financial circumstances were dire enough was unfair.
<br />Mr. Davis questioned whether or not that would stand up in a courtroom. He felt that it was
<br />problematic that it was left to the Council to decide if a rate - payer's financial situation was dire
<br />enough to lower the rate for them.
<br />Kory Demeulenaere, Gateway Hospitality Corp., 3902 Cottage Avenue, Mishawaka, IN, stated
<br />that she was representing two (2) hotels affected by the possible passage of this bill. Ms.
<br />Demeulenaere stated, The notice was delivered to my organization on January 13th, 2017,
<br />however budgets for my operations were approved in November of 2016. This increase could
<br />affect us to the sum of roughly $7,000 a year. That $7,000 would eliminate the possibility of
<br />teammembers receiving bonus on a yearly basis. The staffinembers at our hotels are given an
<br />opportunity to earn a percentage of their annual salary based on meeting their financial
<br />obligations. In 2016, they received that by a mere one - hundred and twenty -two dollars ($122).
<br />So, this addition of $7,000 would eliminate that possibility for them, which of course is an
<br />economic value to South Bend, given the fact that they turn around and spend their money in the
<br />City. Those bonuses are given to all hourly and salaried teammembers. So, my housekeeping
<br />attendant who makes $25,000 a year and gets to come home with $1,000 extra won't have that
<br />next year, because we don't have the increased budget anymore.
<br />Mr. Schmidt returned to the podium and thanked the customers that spoke in opposition to the
<br />bill for voicing their concerns. He stated that if Council did not take action, that there would have
<br />to be a return to compact fees, which would be more expensive than the surcharge for the
<br />overwhelming majority of customers. He urged Council to move forward as the City of South
<br />Bend on this matter, to reaffirm Ordinance 10461 -16 and allow the use of the power that exists
<br />under 17 -29 to negotiate special rates for customers who need them.
<br />Councilmember Dr. Varner, addressing Jesse Davis's question, explained that the Council
<br />requested a fourteen percent (14 %) increase that came as a result of researched statutory
<br />authority —the rate was not made up or chosen arbitrarily. He asked Mr. Schmidt to address this
<br />authority for the sake of the public.
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