09-24-73 Council Meeting Minutes

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REGULAR MEETING SEPTEMBER 24, 1973 COMMITTEE OF THE WHOLE MEETING (CONTINUED) much larger than it was in 1960. He talked briefly about the payment of the bonds and indicated that an annual average of $240,000 would be needed for the next seven years. He stated that the outside meter program should be continued and not discontinued because of lack of funds. He indicated that the cost of that program would cost about $275,000 annually for the next five years He briefly talked about the investment in larger watermains because of the general growth of the system. He stated that the city's next immediate involvement was with the Maple Lane and Gilmer Park areas, with the average annual cost for the next five years for the projects at $150,000. He also mentioned the problem of the rusty water in South Bend, and indicated that money must be spen for improvement of the water continually. Mr. Krueper concluded by indicating that, if the Counci did not approve the 50 %'increase, one or more of the proposed programs of the Waterworks System would have to be reduced or omitted. Mr. Maurice Cohen, 725 East Eckman Street, indicated that he had not even seen a financial state- ment from the Waterworks System, and he wondered if the Council had been furnished a copy. He asked about the payroll costs and stated that these figures were not even available. He did not understand the necessity of the increase. He commented on the city -owned car situation within the Waterworks Department and concluded by indicating that he thought honesty was lost in the adminis- tration. Mrs. Casimer Deka, 1121 Harvey Street, questioned the minimum increase of the water per month. Mr. Krueper indicated that a person paying $1.10 per month would pay $1.65 per month if th4 rate increase was approved. He explained that, on a two -month basis, the amount would go from $2.20 to $3.30. Mrs. Deka wondered how this increase would affect the sewage charge. Mr. Krueper indicated that the sewage was based upon the consumption of the water but would not increase. Mrs Deka indicated that she had appeared before the Council in the spring because she had a complaint on the rusty water in her home. She indicated that Mr. Krueper had been very kind to her and was attempting to solve her problem, but she stated that it still was a problem and no solution had been found to correct it. She stated that now, part of the increase in the water rate would go for the installation of watermains in newly annexed areas and she wondered when she would have clean water. Mr. Milton Katz, 1845 Churchill Drive, stated that the proposed increase was quite sizable for those persons with business and commercial enterprises. He felt consideration should be given to those persons. Mrs. Zoie Smith, 1133 North Twyckenham, President of the Northeast Senior Citizens Council, indicated that the older persons in the community could not afford to pay that high an increase in the water rate. She indicated that the 50% added up, especially with all the other increases the citizens were faced with. She stated that some of the people in her area live on social security alone and would not be able to afford the increase. She asked for some consideration for the elderly in the ordinance and stated that the senior citizens were responsible for the prosperity the city was presently enjoying. She concluded by indicating that water was very vital to every citizen and some people could not even afford to pay for it. Mr. Joseph Guentert, 1034 Foster Street, indicated that he had attended the public hearing held on the Clay Township annexation. At that time, it had been stated that the proposed annexation would pose no increase in costs to the City of South Bend. He stated that now, a 50% increase was being request, to help cover the cost of water to the newly annexed areas. He felt strongly that the water rate had an affect on the sewage rate, and he talked briefly on the use of phosphates in the water and stated that it seemed to him that the citizens were dumping better water into the river than the water bring brought into the homes. Mrs. Richard Minton, 753 Cottage Grove Avenue, also could not understand how Mr. Krueper could state that the water rate did not affect the sewage rate. She opposed the rate increase and indicated that many people could not afford to pay the 50% increase. She stated that she was tired of all the increases in everything. Mrs. Conchita Washington, 749 South Sheridan Street, indicated that she desired to speak as a citizen and as a representative of the South Bend Branch of the National Association for the Advancement of Colored People. She felt the rate increase was an unnecessary burden upon the taxpayers. She mentioned revenue sharing funds and other funds that were available to the city. She wondered what the citizens would be getting in return for the 50% increase. She stated that South Bend has the poorest water in the area and yet the water rate is higher than the rates in cities three times the size of South Bend. She wondered if the increase was being asked for only because everything else was being increased. She talked briefly about the people living on welfare. She indicated that the majority of the people in the Model Cities area were black and elderly. She stated that they could not afford thi high an increase because their incomes were not being increased. She asked the Council to re- consider the proposed increase and not approve it. Mrs. Ann Wlodarski, 1869 Riverside Drive, a representative of the St. Joseph County Fair Tax Association, indicated that Mr. Krueper had state that there had been no increase in the water rate since 1960. She felt that, obviously, the Waterworks System was making a profit. She did not feel comparisons of other cities and their water rates should be made. She asked when the practice had been started that members of the Boar of Public Works were compensated for acting on the Board of Waterworks. She questioned the Controller's salary. Mr. James Barcome, City Controller, indicated that he wanted to clarify that statement. He stated that he received $2,000 from acting as a member of the Board of Waterworks Commissioners and his salary was taken from the General Fund. Mrs. Wlodarski requested that those amounts be terminated for the members of the Waterworks Commission. She asked if the Council had ever received an itemized budget from the Waterworks. Chairman Newburn indicated that the Council had received a financial statement. Mrs. Wlodarski stated that the waterworks was a public utilit and she felt the utility should be responsible to the citizens and not the Mayor. She cited instances when money was spent in the past and wasted in the Waterworks System. She felt that the water rate and sewage rate were correlated. She brought up the matter of the River Commons area which was county and not city, and she indicated that the residents of that area were being served by the city as far as sewage was concerned and were not paying for it. She wondered about this. Mr. Krueper stated that he had just found out about that matter a month ago when driving around in the area. He assured Mrs. Wlodarski that the residents of the River Commons area would be back billed for sewage charges and if these charges were not paid, the service would be shut down. Mr.' James Roemer, City Attorney, indicated that he also wanted to clarify the situation regarding pay - ment to the members of the Waterworks Board. He stated that he received $1,000 from the Waterwork and $1,000 from Wastewater for a total salary of $13,850. He felt that the money he received from the Waterworks and Wastewater was justified. He stated that his time was allocated for those two divisions. He also felt Mr. Barcome and Mr. Farrand earned the money they received as a member of the board. Mr. Roman Kowalski, 802 Birchwood, stated that he felt the wages of the citizens should be increased accordingly if the water rate was going to be increased 50 %. He asked if some help could be obtained from the federal government for the senior citizens, and he stated that he felt some of the revenue sharing funds should be used in this instance. Miss Virginia Guthrie, Executive Secretary of the Civic Planning Association, indicated that the association had requeste that the Council postpone action on the water rate increase for two weeks in order that the proper figures could be made available for further study in the matter. She questioned whether or not it would be proper to use the monies paid by the present waterworks users to operate the facility outside the city. Mr. Krueper indicated that, any time service is expanded, the developer is