HomeMy Public PortalAbout2/04/1997 public hearingCity of Greencastle
• City ball
Four East Walnut Street
Greencastle, Indiana 46135
GREENCASTLE COMMON COUNCIL
PUBLIC HEARING
TUESDAY, FEBRUARY 4, 1997 7:00 P.M. TZOUANAKIS INTERMEDIATE
The Greencastle Common Council met in Special Session for a Public Hearing Tuesday,
February 4, 1997, 7:00 p.m. at Tzouanakis Intermediate School Media Center. Mayor Michael
called the meeting to order. On the Roll Call, the following were found to be present: Councilor
Roach, Councilor Hammer. Councilor Green, Councilor Baynard and Councilor Masten. Also
present was City Attorney Zeiner.
Ordinance 1996 -20, An Ordinance Pursuant to I.C. 8- 1.5 -3 -9.1 Removing The City's Water
Utility From The Jurisdiction of the Indiana Utility Regulatory Commission For the Approval of
Rates and Charges and The Issuance of Stocks, Bonds, Notes, Or Other Evidence of
Indebtedness, second reading. Mayor Michael stated that there is no intent to raise water rates
• at this time. Regulation are good, but can sometimes become a burden to local government. For
the purpose of this hearing the Water utility is the only utility effected.
Attorney Zeiner stated that from a legal standpoint the State Legislature made it possible for
municipalities to opt out of the IURC. To go through the IURC for a rate increase costs
approximately $40,000.00 to 550,000.00 and therefore the increase to consumers is higher due to
the additional costs. Many communities have already opted out. Attorney Zeiner explained that
in order for the City to raise water rates the Board of Works would have to make a
recommendation, the Common Council would have to approve the recommendation and a
Public Hearing would have to be held. Wholesale water users can still request that a rate
increase be reviewed by the IURC if desired. There are also on going costs in that an annual
report has to be prepared for the IURC. City Engineer Barnes stated that his experience dealing
with the IURC has been limited to the new water plant. It took 120 days for the IURC to review
with 6 replies and responses - the questions asked were valid, but Engineer Bames feels that the
questions should have been asked prior to the bidding process.
Councilor Roach stated that this is not a new issue. The previous Council looked at opting out
of the IURC, but with building a new water plant, they felt the timing was not right. This is a
matter of local control, the timing is good and the reasons are valid, Councilor Roach continued.
Mayor Michael opened the floor to the public for public discussion. Francis Ellis, Shadowlawn,
stated that she is a widow and has very little to live on and if control is given to local
government she will wager that within 5 years there will be another water rate increase. Utilities
• are more than I make now, Mrs. Ellis continued, I do odd jobs in order to buy my insulin and
needles. Utility bills were estimated this month and they estimated my bill at $3400 and my
" u t i l i t y b i l l i s n e v e r o v e r $ 2 0 . 0 0 . C o u n c i l o r R o a c h r e s p o n d e d t h a t o p t i n g o u t o f I U R C h a s
n o t h i n g t o d o w i l l t h e b i l l i n g o r t h e e s t i m a t i n g o f b i l l s - t h e r e w a s n o c h o i c e i n t h e l a s t r a t e
i n c r e a s e . S o m e t i m e s p e o p l e h a v e t o m a k e c h o i c e s a n d s o m e t i m e s t h e c h o i c e s a r e n o t p o p u l a r .
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c a n p r e d i c t t h e f u t u r e a n d b y o p t i n g o u t o f t h e I U R C s m a l l e r i n c r e a s e s a r e p o s s i b l e .
B e r n i c e S t r a d e r s t a t e d t h a t s h e d o e s n ' t b e l i e v e t h e r e w i l l n o t b e a n i n c r e a s e o n c e t h i s a c t i o n i s
t a k e n - i s n ' t t r a s h o n t h e s a m e b i l l ? A t t o r n e y Z e i n e r s t a t e d t h a t t h e o n l y u t i l i t y u n d e r t h e
j u r i s d i c t i o n o f I U R C i s t h e W a t e r D e p a r t m e n t a n d w e ' r e t a l k i n g a b o u t r e m o v i n g t h e r e g u l a t i o n s
o f I U R C f r o m t h a t d e p a r t m e n t o n l y , t r a s h a n d s e w a g e w i l l n o t b e e f f e c t e d b y t h i s a c t i o n . M a y o r
M i c h a e l e x p l a i n e d t h a t a n y r a t e i n c r e a s e s w o u l d h a v e t o b e d o n e t h r o u g h a n O r d i n a n c e w i t h a
P u b l i c H e a r i n g . C o u n c i l o r R o a c h e x p l a i n e d t h a t t h e n e w w a t e r p l a n t i s b e i n g b u i l t n o w a n d
t h e r e s h o u l d n ' t b e a n y r a t e i n c r e a s e a t t h i s t i m e . C o u n c i l o r H a m m e r e x p l a i n e d t h a t t h e S e w a g e
D e p a r t m e n t i s n o t u n d e r t h e r e g u l a t i o n o f I U R C a n d t h e l a s t s e w a g e i n c r e a s e w a s d u e t o a p l a n t
e x p a n s i o n . T h e S e w a g e D e p a r t m e n t d o e s n o t h a v e t o g o t h r o u g h t h e I U R C f o r r a t e i n c r e a s e s
a n d t h e r e f o r e t h e r e i s n o t t h e a d d i t i o n a l c o s t . A n y a d d i t i o n a l c o s t i n c u r r e d b y g o i n g t h r o u g h t h e
M C f o r i n c r e a s e s i n w a t e r r a t e s a r e b u i l t i n t o t h e i n c r e a s e a n d t h e c o n s u m e r s e n d u p p a y i n g
t h o s e a d d i t i o n a l c o s t s .
L o u i s e R e i n k e a s k e d i f y o u g e t o u t o f t h e I U R C c a n y o u g e t b a c k i n a n d c a n t h e I U R C r e f o r m
i t s e l f s o t h a t y o u w a n t t o s t a y i n i n s t e a d o f o p t i n g o u t ? W i l l t h i s e f f e c t t h e q u a l i t y o f o u r w a t e r ?
" E n g i n e e r B a r n e s s t a t e d t h a t t h i s h a s n o t h i n g t o d o w i t h w a t e r q u a l i t y . T h e r e g u l a t i o n s f o r w a t e r
q u a l i t y w i l l s t i l l b e t h e r e , t h i s i s s u e o n l y h a s t o d o w i t h r a t e s . A t t o r n e y Z e i n e r s t a t e d t h a t y o u c a n
p e t i t i o n t o g e t b a c k i n t o t h e I U R C o n c e y o u h a v e o p t e d o u t , b u t t h e r e g u l a t o r y p r o c e s s f o r s m a l l
c o m m u n i t i e s i s a b u r d e n t o t h e I U R C . I n s m a l l e r c o m m u n i t i e s y o u h a v e a c c e s s t o y o u r e l e c t e d
o f f i c i a l s a n d t h e y h a v e t o l o o k y o u i n t h e f a c e e v e r y d a y a n d t h e r e f o r e t h e y a r e n o t g o i n g r a i s e
r a t e s j u s t t o r a i s e r a t e s . C o u n c i l o r M a s t e n s t a t e d t h a t t h e b u r e a u c r a t i c m i n d d o e s n o t r e f o r m
i t s e l f . B e c a u s e o f w h a t t h e C i t y h a s b e e n p u t t h r o u g h i n t h e p r o c e s s - d e l a y s , e x p e n s e s , e t c . -
l o c a l d e c i s i o n m a k i n g m a k e s m o r e s e n s e . L o w e r i n c r e m e n t a l - i n c r e a s e s a r e b e t t e r t h a n l a r g e
i n c r e a s e s .
C o u n c i l o r B a y n a r d a d d r e s s e d A t t o r n e y Z e i n e r r e g a r d i n g t h e s t a t e m e n t t h a t 6 0 % o f s m a l l t o w n s
h a v e o p t e d o u t o f I U R C i n c l u d i n g C l o v e r d a l e . D o e s a n y o n e w a n t t o g e t b a c k i n ? A t t o r n e y
Z e i n e r r e p l i e d t h a t C l o v e r d a l e h a d a m o d e r a t e i n c r e a s e a f t e r o p t i n g o u t , b u t m o s t a g r e e d i t w a s a
n e c e s s a r y i n c r e a s e a n d n o t h e y d o n o t w a n t b a c k i n t h e I U R C . C o u n c i l o r B a y n a r d t h e n s t a t e d
t h a t t h e w h o l e i d e a i s n o t t o h u r t , b u t t o h e l p e v e r y o n e - w e p a y u t i l i t i e s a l s o a n d w a n t t o d o w h a t
i s b e s t f o r a l l c o n c e r n e d .
T o m B e m i s a s k e d i f t h e r e w a s a n y t h i n g g o o d a b o u t t h e I U R C . E n g i n e e r B a r n e s s t a t e d t h a t t h e r e
i s v a l u e i n w h a t t h e y d o , I n d i a n a G a s a n d P u b l i c S e r v i c e a r e u n d e r t h e j u r i s d i c t i o n o f M C ,
s o m e q u e s t i o n s a s k e d a r e v a l i d a n d w e s h o u l d b e a b l e t o a n s w e r t h e m , b u t s o m e a s k q u e s t i o n s
j u s t t o j u s t i f y t h e i r j o b s .
S a l l y B a r t l e t t a s k e d w h o w o u l d r e g u l a t e r a t e s . M a y o r M i c h a e l r e s p o n d e d t h a t t h e C o u n c i l ,
v o t e r s a n d B o a r d o f W o r k s . I f a n y c h a n g e s a r e t o b e m a d e , t h e y w o u l d h a v e t o b e d o n e b y
O r d i n a n c e w i t h t w o r e a d i n g s a n d a P u b l i c H e a r i n g , C o u n c i l o r M a s t e n a d d e d t h a t o p t i n g o u t o f
® IURC doesn't completely eliminate us from regulation, we still have standards that have to be
met.
Jim Proctor from the Reelsville Water Corporation asked how much of the $40,000.00 -
$50,000.00 was paid to the IURC. Attorney Zeiner stated that approximately $3,000.00 -
$4,000.00 was paid to IURC - most of the money went to consultants, etc. to make sure we had
the right information to give to the IURC. Mr. Proctor asked if in the future the City would hire
specialists to establish rates. Attorney Zeiner stated that it makes sense, but the Council would
make the ultimate decision. Councilor Masten stated that the cost of the rate studv is not that
expensive -it's the numerous trips to Indianapolis that makes the cost jump. Councilor Masten
stated that the Council is being open and honest - everyone is here and in agreement. This is a
local issue and it makes sense to have local control. Councilor Roach stated that he concurs.
Jim Proctor stated that he feels this is a good idea and is supportive.
Don Flint asked if there was any chance of a rate reduction? Councilor Roach stated they can't
say that there will be a rate reduction - but anything is possible. Councilor Roach also stated that
the City of Greencastle supplies water to 67% of the County. Engineer Barnes stated that the
more water used the less the cost is. Councilor Green stated that one of the questions the IURC
asked was about the size of Greencastle - we have a plant with a capacity for pumping 4.3
million gallons of water - is that what you asked for? Does the IURC try to control how fast a
community can grow? Engineer Barnes responded that the design was approved as submitted,
but lots of time, energy and money was spent. Councilor Hammer stated that the City has the
• expertise within our employees or we know where to go to get the information to get the job
done for less money. Councilor Masten stated that we are all rate payers - we don't want to put a
noose around our necks. This is a local issue and it just makes sense to have local control.
Councilor Baynard made the motion to accept Ordinance 1997 -20 by title only, seconded by
Councilor Roach. Vote was unanimous.
Motion to adjourn made by Councilor Masten, seconded by Councilor Hammer. Vote was
unanimous. /
Q G c
Nancy A. Ivli hael, Mayor
ATTEST::
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Pamela S. Jones, Cl rk- asurer
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