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REGULAR MEETING NOVEMBER 11,2013 <br /> projects have been,how have all of those monies that we have set aside for 2005, 2009, and all <br /> those kinds of things, how have all those monies been spent that has helped to clear up our <br /> waters to do all that. I think that needs to be clearly explained because the question I have is <br /> how do we know that, how do we meet our federal mandates in terms of when it comes to capital <br /> projects in using, like I said before, a Chevy model instead of a Lexus or a Cadillac model. <br /> What is the bare minimum of capital projects that we need to meet our federal mandates, in terms <br /> of that, and how do we know that? So, we can go back to our neighborhood groups and say we <br /> need to have only this amount because sometimes what we have been told in the past that there <br /> may be some more additional or fluff or some wishful thinking or some higher rate of cost that <br /> has been built in to these costs that have made them higher than what they really could be. And <br /> if we could still meet the federal requirements, the guidelines, the EPA,the Department of <br /> Justice,by having a different type of plan when it comes to capital projects that meets the <br /> requirements yet saves us costs. Could you please help us to ask/address those matters? <br /> John Skomp: Let me address that very quickly. First of all, our responsibility at Crowe, we do <br /> not put together the project costs. We are not the engineer's that actually go out and design the <br /> projects and bring in the project costs. We do take the project costs that are given to us by the <br /> engineer and go back and forth and put together a reasonable spend down time tables as far as if <br /> this is the cost of the project how many years does it take to do that, how many dollars do you <br /> need here. So you see the spreadsheet I put together, we develop that with the engineers saying <br /> ok if we are trying to do reasonable spend down each year how many dollars in these projects <br /> will you need in each year to kind of plan this out. <br /> Councilmember Oliver Davis: So basically, when the administration came to you, and the <br /> former administration under the leadership of Gary Gilot at that time, they brought this plan to <br /> you, and your goal is to say ok based on this plan that you are presenting to us here's the <br /> financial plan to accomplish it. That's really been your goal? <br /> John Skomp: It really is a more of a process than that as far as when you go back and forth with <br /> the EPA and IDEM, you are also dealing with some financial capability analysis where you are <br /> saying if that is the level of spending you do, here is the impact on the residential customer, they <br /> have a residential indicator that you can calculate. So we did some calculations with different <br /> construction numbers and your betting that through the EPA and IDEM and you go and show the <br /> impact on customers until you end up and what happened here with South Bend, I probably <br /> should let the engineer speak more to this, is basically it came down to the amount of money that <br /> you needed to spend to get to a certain number of overflows each year. Now, the numbers we <br /> are using right now are the numbers that were used, kind of what Eric said were 2007 dollars that <br /> we used to come to the consent decree that we have and tried to plan those dollars out. <br /> Councilmember Oliver Davis: But, basically if the administration had brought to you a Chevy <br /> plan, then you would have just been able to do the same thing and brought that. So your <br /> evaluation is not based on the capital project, it is based on the plan that came to you. <br /> John Skomp: I am in no way equipped to evaluate that. <br /> Councilmember Dr. David Varner: No, we are going to have some more discussions on this. <br /> So, I'll pass on this. But I do, if this started in 2011 in 2031 the project should be completed if in <br /> fact nothing changes. It's a 20 year project. <br /> Eric Horvath: We have it funded to 2029 is because the construction projects have to be <br /> completed by 2031. <br /> Councilmember Dr. David Varner: Yes, that is my point, in 20 years it should be completed in <br /> 2031. The debt service rolls off, on a schedule. <br /> Eric Horvath: Correct. <br /> Councilmember Dr. David Varner: Having said that you have $10 million dollars in capital <br /> planned. It seems to me that we have a huge cash cow created in 2031 unless we allow our <br /> expenses to grow. So if we have this cash cow going forward which includes payments in over <br />