03-14-77 Council Meeting Minutes

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EL-91 REGULAR MEETING MARCH 14, 1977 u COMMITTEE OF THE WHOLE MEETING (CONTINUED) Council Member Parent made a motion to recess, seconded by Council Member Dombrowski. The meeti was recessed at 8:37 p.m., and reconvened at 8:58 p.m. Mr. Dan Manion, attorney representing Clay Concerned Citizens, read the following statement into the record: "As you are aware, I am the attorney for an association called the Clay Concerned Citizens. In the past few meetings of the Council, I have attended on behalf of the group mainly to monitor the proceedings with regard to the acquisition of Clay Utilities, Inc., by the City of South Bend. The purpose of this letter is simply to notify the Council of what our intentions are. We strongly object to the acquisition for many reasons, among those being, that the lease statutes are very possibly unconstitutional, that the price is much too high and will thus re- sult in an excessive burden on the present users and rate payers, that the present users and rate payers will have to pay twice since they have already paid a considerable sum for their water and sewer facilities, that the rate payers and users will be faced with extreme increases since all additions and extensions must be constructed only with revenues generated from the rates, and that the mandate in each lease that the acquisition include both the water and sewage facilities or non at all is contrary to the statute. Because of these and other objections, in the event the Counci does adopt the ordinance authorizing the execution of the leases between the City of South Bend and Clay Utilities, Inc., certain rate payers and users will file an injunction and /or a remonstra against the City's entering into these leases. If necessary, these individuals are willing to carry out their injunction to the Court of Appeals and even to the Supreme Court. Because of the many inequities that these leases will inflict upon the users and rate payers presently using the Clay Utilities system, those users and rate payers are willing to go to this extent in order to get a full legal hearing on the issues. This will, of course, take the time for execution of the lease well pastthe June lst "deadline "duto the fact that both leases provide that all appeals must be finally resolved before the lease can begin. My purpose for informing you of our intentions in this manner is to assure the Council that our motivations are in good faith, and that we in- tend no surprises or unusual tactics. Our actions are only secondarily prompted by the effect, the leases may have on annexation. We feel that this acquisition will have no effect on the an- nexation policies one way or the other, but instead will simply have a detrimental effect on the rate payers and users of the present Clay Utilities facilities. The city administration apparent] has been willing to sacrifice the excessive high cost of the facilities in exchange for what they think is a sure route to a successful annexation. Clay Utilities knows of that motivation and thus the high price tag. However, the city's motivation is based upon a very debatable legal analysis. In any event, it is our fear that the city will acquire the Clay Utilities and will operate it with something other than the best interests of the people using the facilities. It is our hope that the Council will not adopt the proposed ordinances to.execute the leases. But if it does, I have outlined what our intentions will be from that point forward. I genuinely ap- preciate the Council's cooperation and willingness to listen to all sides of this issue." Mr. Hank Waldren, 52610 Kenilworth, asked if the present sewer and water lines that have already been installed were being used at full capacity; what is the present size the trunk sewer lines; present size and capacity of water service; is the size of water and sewer capable of handling all the residents that are located on the lines that have been laid. Mr. John Stancati, Director of Utilities, indicated that the size of the sewer is sufficient and it is only used 1/5 of its capacity. He said the water lines that have already been laid can meet any capacity. He said for the most part where these lines are laid.most of the people are already tied -in. He said the existing facility is more than capable of handling what was in the area. Mr. Waldren asked if they would be willing to have a qualified engineer go over these plans with the City engineers. Mr. Stancati.indicated they would. Mr. John Horning, President of the Carriage Hills Home Owners Association, 52428 Tallyho Drive North, said there were four facts that the Council should con- sider: rate increase, payment fir the purchase agreement of Clay Utilities; pressure problems; maintenance upkeep and the retention basins. He said the residents and users of Clay Utilities are already paying excessive charges for their water and sewer, and are violently opposed to ad- ditional increases. He said they were certain that there.would be legal action taken up with the PSC by the residents and users. He said with respect to the purchase, it has been reported that the customers will windup paying for it and they have already paid for the facility. He said there were a number of complaints by residents about the water pressure, and there are pressure readings on record with the PSC. He said with regard to the rentention basins, he indicated they do have them, but they are not maintained and are unsafe. He said they were very much op- posed to the purchase by the City of Clay Utilities. Mr. Jim DeLuca, 52131 Carriage Hills Dr., indicated he would like to know why the City would be interested in purchasing a utility that has not made a profit in ten years. Mr. Peter Nemeth, Fire Chief of Roseland, read a letter from Mr. Otis Romine, Clay Township Trustee, opposing the purchase of this facility and annexa- tion. Mr. Nemeth said he knew this water system and it was second rate. He said if the City buys it, they will be buying a "pig in a poke ". Mr. Richard Larrison, County Commissioner:, in- dicated that the County had to stop the utility from pumping raw sewage into a field next to a school. He said the County is now being asked.to help the City of Mishawaka correct the de- ficiencies in the system they purchased. Mr. Thomas Pierce, 17663 Hanson Ct., spoke about the low water pressure in Carriage Hills. Mr. Ted Jusczak, a developer in Clay Township, explained the method the eventual consumer goes about to bring service to his home or place of business, and the cost of tying -in to the service. He indicated Clay Utilities has very little invested in the whole system, and it was very small and completely inadequate. He said he was primarily interested in the people of South Bend and Clay Township getting a fair deal. Mr. Kevin Weinberg 527 Summit, spoke in favor of the City purchasing this utility. Mrs. Louvenia Simmons (Cain) indicated she hoped the CouncilWould have an open mind on this purchase, and come up with a posi- tive answer. Mrs. Jane Swan, 2022 Swygart, spoke regarding the annexation of Clay Township and. the fact that no community would willingly come into the city if you tell them your dying. She said if the City intended to buy Clay Utilities, she would suggest the Council and Administration pay heed to the last two sentences of Roger Parent's press release "I believe that common sense and the public interest should prevail in any transaction in which the City participates." Dr. Lillian Stanton, 919 Oak Ridge, said she was a South Bend resident and intended to stay here. Sh( said that in the(past she has supported appropriations that have benefited the community. She indicated that cities should stay within their budget, and that it was about time something was done to reduce the deficit in South Bend. Mr. David Wells, 5104 Bloomfield Way, spoke regarding the sewage system in the county and its relationship to disease. He indicated he was in favor of the purchase of Clay Utilities.