03-25-13 Public Works & Property Vacation

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PUBLIC WORKS & PROPERTY VACATION March 25, 2013 4:10 p.m. Committee Members Present: Oliver Davis, Dr., Valerie Schey, Gavin Ferlic Other Council Present: Tim Scott, Henry Davis, Dr. Fred Ferlic, Karen White Others Present: Eric Horvath, Tony Flora, Mark Neal, Aladean DeRose, Erin Hansen, Kathy Cekanski- Farrand, Kathryn Roos, Kyle Chamberlin, Carol Davis Agenda: Update — New Energy — Eric Horvath Chairperson Oliver Davis opened the meeting of the Public Works and Property Vacation Committee explaining the purpose of the call was to hear an update on the situation resulting from the closure of the New Energy ethanol plant. To that end, Oliver introduced Eric Horvath, South Bend's Director of Public Works, Eric began by saying the City has asked to the bankruptcy court to void the sale of the plant to a salvage firm even though they were the high bidder. The court did not void the sale based on the argument that more time was needed to find a new operator /owner for the facility. Eric added that the new owner was looking for an operator as well in that the plant was worth more intact rather than as scrap. In terms of helping homeowners whose homes suffered water damage from rising ground water levels, Eric said the agreement the City reached with the new owners to keep a water pump running had already lowered ground water levels by 4.5 feet. Additionally homeowners were given an opportunity to seek redress for damages through legal aid. Eric also said the St. Joseph County Health Department was helping homeowners abate any resultant health issues from mold or mildew. Eric responded to Karen White's question about costs associated with running a pump saying costs including security were expected to run about $8100 a month. He also told her the lost revenue from the plant's sewage bills were expected to be about $2,000,000 year. Tim Scott, Dr. Ferlic and Oliver Davis all followed with questions about ongoing costs to the City. Tim Scott in particular wondered whether the costs and lost revenue meant a rate increase was on the horizon. Eric said it was far too early to make that determination. To Oliver, Eric said the search for a new owner would continue for at least 6 months, possibly 2 years. There being no fu r busess to come before the Council at this time, Chairperson Oliver Davis adjourned the eting at 4420 p.m. liver perty Vacation Committee