HomeMy Public PortalAbout05-20-1986 - Special Meeting 351
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1 The Common Council of the City of Richmond, Indiana, met in special session
2 May 20, 1986 at the hour of 7:00 P.M. in the Council Chambers in said
3 City. President Bodiker presided with the following Councilmembers in
11/ 4 attendance: Elstro, Brookbank, Hankinson, Hutton and Morris . Absent:
5 Williams, Whitesell and Parker. The following busines's was had to-wit:
6
7 PUBLIC HEARING TO DETERMINE ECONOMIC IMPACT OF WATER RATE INCREASE
8 •
9 President Bodiker informed those in attendance at the Special Meeting
10 of the Common Council that the meeting was for the purpose of receiving
11 information to assist in determining the economic impact on the community
12 of the proposed water rate increase. President Bodiker stated that the
13 proposed increase ranges from eighteen (18) percent to twenty-five (25)
14 percent.
15
16 President Bodiker acknowledged the receipt of correspondence from the
17 Richmond Community School System, Kemper, Dana Engine Products Division,
18 Mary Raper representing American Association of Retired Persons, Belden
19 Corporation, and Dana Engine Products Sleeve Plant . All responding
20 indicated a negative response to the percentage of increase requested.
21
22 President Bodiker invited the public attending to share information with
23 the Council regarding the economic impact of the proposed rate increase.
24 The following information was received:
25
26 Ms . Marge Sweet, Acting City Controller for the City of Richmond, informed
27 the Council that increase over the 1985 budget figures range from 6,250.35
28 increase at 18% to 8,403.25 at a 24.2% increase. She stated the tax cost
29 for the increase would be .0047 per hundred.
30
31 President Bodiker asked if an increase would affect the cost of fire
32 protection and Ms. Sweet indicated that the hydrant charges were a contract
33 agreement based on pressure and not useage.
34
35 No figures were available from Richmond Power and Light.
36
37 Mr. Tim Leveque, General Manager of Alcoa, informed the Council that the
38 increase for the plant would be 24.1% and would be a 10,000.00 annual
39 increase added to an increase of 3.8% in March of 1985. Mr. Leveque stated
40 the plant cannot absorb cost increases and are forced to reduce costs
41 to remain competitive and felt suppliers such as Indiana American Water
42 Company should also reduce costs . He indicated that Alcoa does have an
43 option to use wells for 80% of their water needs, but that would require
44 additional investments in wells and related equipment.
45
46 In summary, Mr. Leveque stated that Alcoa urged the Council to oppose
47 this increase the to encourage the Water Company to do more to manage
48 their costs to avoid passing them on to customers and disrupting the
49 ecomonic balance in Richmond.
50
51 Mr. Curtis Gilmore representing Belden Corporation informed the Council
52 that the Belden employs 1,200 persons and opposes the proposed rate increase
53 as inflationary. Mr. Gilmore stated that the 24 .2% increase is unacceptable
54 and that the water company had increases in 1976, 1980, 1982, and 1985
55 representing 72.7% since 1976. He indicated that the Belden is in
56 competition with not only domestic and foreign companies, but also other
57 Belden companies and the additional cost could cause products to be produced
58 in other locations.
59
60 Mr. Gilmore thanked the Council for the opportunity to express these concern. .
61
62 Mr. Ernest Goddard, representing Wayne Dairy, informed the Council that
63 the proposed increase would mean a 4,431 .00 increase over the 1985 costs
64 for water and that Wayne Dairy uses water for sanitation and refrigeration
65 purposes also. He stated the proposed increase makes it difficult to
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Common Council Special Meeting Cont'd
May 20, 1986
Page 2
1 efficiently compete with persons in other towns around the area.
2
3 Mr. Rick Ahaus, representing the Richmond Area Chamber of Commerce Taskforce,
4 told the Council that the Chamber Board of Directors are concerned, but have
5 not taken a position for or against the proposed rate increase. Mr. Ahaus
6 stated the taskforce is working with the water company to understand the
7 rate increase and will look to see if it is justified and if it is not
8 needed then will work toward a reduction or no increase.
9
10 Mr. Ahaus asked if the water company was invited and President Bodiker stated
11 not specifically since the Council is only in the position of reacting and
12 not acting. He stated the Council wanted to look at the economic impact and
13 other information before any decision is made on a decision to intervene on
14 behalf of the public.
15
16 Councilmember Morris asked Mr. Ahaus if the Chamber had been in contact with,
17 Mr. Allen of the water company and Mr. Ahaus stated a couple of times to
18 insure him that the Chamber is taking an objective look and asking for
19 justification. He said they have agreed to meet with the taskforce to
20 present the facts to be presented to the Public Service Commission, but have
21 postponed the meeting.
22
23 Mr. Ahaus stated there if a June 16,1986 filing date with the Public Service
24 Commission and then the information would be public.
25
26 Mrs. Rosalee O'Conner of 211 Linden Court asked the Council why this much
27 of a rate increase was needed and stated that the rate increase will affect
28 other businesses causing prices to rise.
29
11/
30 Mr. Granville Cares commented about the estimated readings and not reading the meters and the
31 impact on the sewer billings. He stated that he opposed the increase and can see no reasons
32 for it.
33
34 Ms. Minnie Croy or 450 N.W. K Street stated she had called the Public Service Commission
35 about the billings and reading the meters and the use of others money to invest. She said she
36 felt it was against the law to over bill on estimated billings, but was informed by the PSC th.t
37 it is allowed when serving municipalities.
38
39 Mr. William Caudle of 215 North 17th Street infoiued the Council that he operated a street
40 and ued to report many water leaks in the city that he noticed. Mr. Caudle stated that after
41 no repairs were made on the numerous leaks he no longer reported them. He asked who was
42 paying for the leaks.
43
44 President Bodiker stated that the petition for the increase uses test year
45 data and is not based on the ability to pay, but rather the ability to
46 recoop capital investments in a two (2) year period and he felt this was
47 a rather excessive.
48
49 President Bodiker stated that any Council action remains to be seen and
50 the Public Service Commission does not always rule for the consumers benefit.
51
52 Councilmember Morris stated that she had heard that the capital investments
53 were made in anticipation of new industry coming to the N.W. side.
5411/
55 President Bodiker thanked all for their participation.
56
57 ADJOURNMENT
58
59 There being no further business, the meeting was adjourned.
60
61
62 Richard Bodiker, President
63
64 ATTEST:
65 Mary Merchanthouse, City Clerk