07-28-08 Common Council Minutes - Laserfiche WebLink

Home Browse Search

REGULAR MEETING JULY 28, 2008 SECTION III. This Resolution shall be in full force and effect from and after its adoption by the Council and approval by the Mayor. s/Timothy A. Rouse Member of the Common Council Councilmember Oliver Davis, Chairperson, Utilities Committee, reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with a favorable recommendation. th Mayor Stephen Luecke, 14 Floor County-City Building, South Bend, Indiana, made the presentation for this bill. Mayor Luecke thanked the Council for their consideration of this Resolution tonight. He stated that he is asking for a favorable vote to allow the placing of a question on the ballot in the November 2008 General Election, which allows the residents of the City of South Bend to vote, whether the Council becomes the final authority in setting rates for the Water Works or whether they will continue to go before the Indiana Utility Regulatory Commission. He stated that he believes that the Council is the appropriate final body to enact these rates as the Council does with the Wastewater Utility and Solid Waste. The additional regulatory review adds time to the rate process and also adds significant costs to the rate process and he believes that it best resides with the Council and allows the City to plan rate increases in a more gradual manner rather than waiting until it warrants the extreme expense of the additional review. Mr. John Skomp, Crowe, Chizek and Company, LLC, stated that what they would like to accomplish tonight is to adopt a resolution to allow the voters to decide the issue in the November election. He stated that the overall reason to withdraw from the IURC is Home Rule. The elected officials of the City of South Bend will decide the path for South Bend. The officials will have the flexibility to address the local issues in a way that is acceptable to the local public. Issues can be addressed in a more efficient and timely manner. The elected officials of the City of South Bend will decide the path for South Bend. Water Utility rates and debt policies will be established in the same manner as the Sewage Works and other City fees. Public policy will be adopted by implemented at the local level without revisions from officials in Indianapolis. The officials will have the flexibility to address the local issues in a way that is acceptable to the local public. The owners of a municipal utility are the municipality’s citizens. Out-of-town customers are not owners of the system. Home Rule or Local Control will allow the flexibility to address owner versus non-owner issues and municipal service unbundling such as inside city outside city subsidies such as police, haz-mat, parks, and roads. The Hojnacki independent study confirms that residents of incorporated South Bend and Mishawaka pay a disproportionate share of the cost of government services and resident of unincorporated areas do not pay enough. Out of town residents receive services for which they do no pay; in-town residents pay for services they do not receive. Providing municipal utility service allow the development of densely populated subdivisions on the outskirts of the city which attract wealthier residents to these areas enjoying lower tax rates and subsidized services. Thos left behind are less affluent and must shoulder a larger and larger share of the cost of government. Mr. Skomp stated that issues can be addressed in a more efficient and timely manner. An example is that on January 28, 2005 filed a rate case petition. July 13, 2005, Clay customers intervened to oppose out-of- town surcharge (which was in place for nearly 25 years) The Office of the Utility Consumer Counselor (OUCC) supported their position. On February 8, 2006, (one year later) – the IURC approved a rate increase but ordered cost of service study (COSS) with respect to surcharge on a prospective basis. On August 8, 2006, South Bend submitted COSS which overwhelmingly supported current outside-City charge. South Bend also submitted substantial evidence on the effect of “unbundling” municipal services. OUCC and Clay Customers did not submit a COSS but merely complained (without rebutting.) A hearing was held on March 6 & 7, 2007 and last brief was filed on June 13, 2007, and still no final order, 3 ½ years after filing petition, almost 2 years after the City filed with 24