12-09-13 Common Council Meeting Minutes

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REGULAR MEETING DECEMBER 9, 2013 s/Valerie Schey, Utilities Committee Chairperson Member of the South Bend Common Council s/Oliver J. Davis, Public Works Committee Chairperson, Member of the South Bend Common Council Councilmember Oliver Davis, Chairperson, Public Works and Property Vacation Committee reported that this committee along with the Utilities Committee held a joint meeting on this bill this afternoon and voted to send it to the full Council with a favorable recommendation. Councilmember Dr. David Varner, 1306 Clayton, Drive, South Bend, Indiana, made the presentation for this bill. Thank you Mr. President. The summary read by Mr. Voorde pretty well covers the concerns that we have as Councilmembers, concern not only about rates, but the concern about the future of the City of South Bend with regard to our competitiveness with regard to our water and sewer rates. In the event that as a result of a project or as a result of poor planning or the lack of planning or lack of adequate controls we find ourselves unable to land major industrial and development facilities because of our lack of the ability to treat the water or rates which would be so great people would not see us as a viable option. As a result of that I guess we have written a somewhat verb oust resolution but I think it was important to do that in order to get all the important things on the table. Councilmember Varner read the resolution in its entirety and stated that Councilmember’s Dr. Fred Ferlic, Valerie Schey and Oliver Davis are co-sponsors. A Public Hearing was held on the Resolution at this time. th Mayor Pete Buttigieg, 14 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, stated that he wanted to take this opportunity to convey that the administration appreciates and supports the spirit of this resolution from the Council. I recognized that the Council like the administration is trying to make sure that we meet two sets of goals. One is to make sure that we have good river quality, that we don’t have sewage going into the river more than can be avoided. That we don’t have water backing up in basements and that we are in adequate compliance with Federal Law. On the other hand, making sure that we keep rates as low as possible, and support that for two reasons: First, the affect that it has on residents, particularly low income residents in the City of South Bend. And secondly, making sure that we remain competitive. I do applaud the work that the public works team has done to devise plans that would position South Bend in a competitive context among peer cities. Also recognize that more can be done. So we want to continue to seek ways to drive the future anticipated cost of this program down specifically through two paths. One having to do with technology and value engineering in order to drive down total cost, the second having to do at appropriate times with revisiting a negotiated agreement with the federal government that lays out our commitments and requirements. Precisely in order to keep rates low, we believe that we need to make sure that we are acting at an appropriate time. Recognizing that there are some elements in the plan which take place relatively far into the future and are especially sensitive to possible future technological developments. While there are other elements in the plan involving upgrades to the waste water treatment plant and other sewer upgrades that need to take place soon, and need to take place no matter what and need to be financed adequately. Bearing in mind that adequate action now maybe the best thing we can do to make sure those rates in 2, 4, 6 or ten years don’t wind up being higher than they need to be. And in particular making sure that we have as our share name insuring that we do not again see over the life of this kind of plan the kind of double digit rate increases that the presenter mentioned that have been experienced by the city. We recognize that there are many ways to meet our goals and the administration welcomes the dialogue that is unfolding between the Council and our Public Works staff on costs, technology, engineering, the financing and many alternatives that may be available over the life of this program. I think that we all recognize that doing nothing is not an option and I think that we can all recognize that doing something together is the opportunity for us. Thank you. Dr. Ferlic: I would just like to state to the public that this consent decree was signed in 2011 before the current administration came aboard or the current Council. So I have been very pleased with the receptiveness of Mark Neal and Eric Horvath and especially under the 30