06-26-06 Community & Economic Development

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Joint Committee Meeting of the Utilities Committee and the Public Works and Property Vacation Committee June 26, 2006 Page 2 Mr. Gilot stated that the Common Council does have rate-making authority. He noted that the University of Notre Dame is "big enough to go into business for themselves"; and that they have voluntary separated their sewers. Council President Rouse stated that the issue is one of who has the final rate authority. He hoped that the parties could collaborate together in addressing this. Dr. Varner noted that the City of South Bend is under a judicial consent degree which mandates that we must take actions to have a clean river. He noted that Mr. Gilot is an excellent manager, however all large entities requesting or receiving special rate consideration should be required to justify such requests. He voiced concern that too often the city gives out benefits without getting anything in return. He stated that he recalls that the university separated their system back in the 1970's. If the university would construct their own system it would have to be one which could address 80,000 since that number of persons attend an average football game; and the rate and flow would not be based just on the number of students and staff. Council Member Pfeifer asked the City Attorney about the legal issues involved. Mr. Leone stated that a government may not impair contractual rights based on its action. He noted that both Notre Dame and New Carlisle having existing special rate contracts which were entered into based on current municipal code provisions, He then review the "Legal Department Draft" of the ordinance (copy attached) The Council Attorney stated that she agrees with Mr. Leone that a city may not by legislation or other actions impair contractual rights. She then read from the proposed substitute bill the language, noting that there is nothing in the substitute bill which would impair any contractual rights. She also noted that the governing Indiana law addressing municipal sewage works set forth in Indiana Cade 36-9- 23 does address the Council's authority to "establish just and equitable fees for services" in this area. Dr. Varner again stressed that the rate making authority rests solely with the Common Council, and that no where in the state law does it give this authority away. Council Member Pfeifer stated that there should be a sharing of information of facts and figures so the "Council can see the whole picture". She noted that she sees a "lack of continuity" when a Bill is introduced earlier in the year and then not heard again until later.