11-20-02 Utilities Committee - Laserfiche WebLink

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Utilities Committee November 20,2002 Page 3 considered a wholesaler. Under the proposed rates the impact to New Carlisle would go from paying approximately$48,000 to paying approximately$168,000. He noted the following costs: $20-$25 per month to$60-$80 per month for a family of two $50-$60 per month to$150-$175 per month for a family of four He noted that much of the infra structure in place was paid for with TIF funds with over $18 million TIF funds being used in 1989 and 1990. He noted that TIF funds paid for the lift stations in that area which benefitted development in the Blackthorne Industrial Park area. Mr. Robert L. Miller, Sr. inquired whether New Carlisle currently pays $ .52 per 100 cubic feet. It was acknowledged that that is the current rate as a wholesaler. Mr. Miller noted that they should be concerned. Mr. Fred Dominick of the Marriot and a member of a local hotel.motel association voiced concern over the "degree and the suddenness of the proposed increase". He stated that the rates would have a dramatic impact on the hotel/motel industry. He added that overnight there rates would go up 45%the 1st year,an additional 13% the 2d year,and an additional 14% the 3rd year. Mr. Robert L. Miller, Sr., a local attorney representing the Ramada Inn and other local hotels/motels, then addressed the Committee and summarized a letter sent to Council Member Kirsits dated November 19, 2002(copy attached). Mr. Miller stated that since September of 1999 the City of South Bend has owned all assets of the former Clay Utilities, and that since that time has overcharged the customers in that area. No utility can charge a rate that has not been approved. He stressed that the 50% surcharge is the "deal breaker". He suggested out of fairness that the Council indicate whether there is a majority in favor of the Administration's proposal, so that something like what happened earlier this summer is avoided. Mr. Miller stated that when the last public hearing was set and advertised that there were many remonstrators in the audience with many of them traveling long distances to be there. They were not given the opportunity to speak, and that a repeat of that should be avoided. Mr. Miller stated that "the Town of Roseland is the city's cheapest customer". He noted that they have no lift stations, and that there is "no relationship of the service provided to the cost to be charged". He stated that he does not believe that a judge would sustain the surcharge. He suggested that the Council review Father Malloy's letter and the letter from I/N Tek I/N Kote and look at everyone's alternative plans. Mr. Miller stated that education loans are now going for 3% and that the City would qualify for loans at 4% which is" almost free money", with the capital improvement lasting for many many years. He stated that the City of Evansville established tier rates by agreement. He urged the Council to study the rates of$ .52 per 100 cubic feet for New Carlisle; $ .74 per 100 cubic feet for I/N Tek and I/N Kote, and $1.00 for the Ramanda Inn and similarly situated hotels/motels. He asked the Council to consider a "wholesale rates for the heavy hitters" and requested a response on whether there would be a hearing next Monday. He stated that there is "not a level playing field"and suggested that all of the documents and information needed by the Council could not be reviewed by then. He noted that people from Indianapolis would be coming for Monday's meeting. He concluded his remarks by stating that when Studebaker pulled out of the city it was difficult and that the city is still dealing with old Studebaker building today. He asked the Council to consider what would happen if New Carlisle, Notre Dame and others would pull out of the city's system. He suggested that more discussions take place.