08-05-09 Public Works finds new efficiencies, revenue streams

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Pg. 2 The street department recently participated with other units of government in a cooperative purchase of road salt with the State of Indiana, buying a large quantity of salt at $54.67 per ton, compared with market prices reaching $150 per ton. In addition, South Bend crews installed liquid salt brine-making equipment to dramatically increase its effectiveness. Where 1 ton of rock salt covers 4 miles of street, that same amount of salt, when converted to brine, accomplishes the same results for 19 miles of streets – a nearly fivefold increase. The savings is further compounded in the means of application – salt brine is applied proactively ahead of storms during “straight-time pay” periods. Road salt is applied on overtime pay during storms. The department also is turning to technology to improve efficiency and reduce costs in large and small ways. The City is in the second year of a 10-year contract during which it expects to save nearly $2 million from converting incandescent traffic signals to low-energy LEDs. But sometimes improved service is the primary result. The Division of Water Works will reduce telephone costs in its operations by 75 percent through converting 17 leased lines to a radio/fiber optic SCADA system. The Environmental Services division is using a digital sewer camera during routine maintenance to diagnose potential sewer backups for homeowners from root masses invading sewer laterals. Homeowners will receive warning letters when cleaning is needed on the private portion of the lateral. “This is one of the ways we are instilling a culture of proactive solutions in the City of South Bend to better serve our residents,” said Gary Gilot, director of public works. The Common Council also reviewed the proposed 2010 budget for the Morris Performing Arts Center and the Palais Royale Ballroom, two revenue-generating facilities for the City of South Bend. The proposed $1,326,222 budget for 2010 represents a 13 percent decrease from 2009. “The Morris essentially ‘borrows’ operating funds from the City of South Bend and then returns money to the City throughout the year. From events held in the theater, the Morris returns revenue earned from facility rent, equipment rental, box-office services, and commissions earned on food-and-beverage sales and show-merchandise sales,” said Dennis J. Andres, executive director. “The Palais Royale returns revenue earned from facility rent, equipment rental, and commissions earned on food-and-beverage sales.” Cost savings came from cuts in two personnel – a receptionist and sales/event associate – a 5 percent salary reduction for Andres, an end to the City’s payment of a health-care flex benefit and through contracts that were renegotiated or eliminated. A 2007 study showed that the landmark facilities have a $5.9-million indirect economic impact on downtown South Bend through activities such as dining, lodging, transportation, souvenirs and other expenditures. In addition, the Morris and Palais generate revenue from parking fees while contributing to bookings of nearly 1,500 hotel rooms, from which Hotel-Motel tax receipts support Century Center and the College Football Hall of Fame. Other events organized by Morris staff, like the Fridays by the Fountain concert series, are funded through sponsorships at no cost to taxpayers. Budget hearings will resume at 3:30 p.m. Wednesday with proposed 2010 budgets for Building, Mayor’s Office, self-insurance funds, capital and debt funds, Century Center, Clerk and the Common Council. - 30 -