03/29/1995 Meeting Minutes - Laserfiche WebLink

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Special Council Minutes of 3/29/95 commercial properties. Mr. McKay commented that no Council Member wanted to deny ~~~ residents the second meter discount. Mrs. Saringer noted that the legislation had been reviewed by the Law Director. Also, five previous administrations have used the same basic legislation while still granting the second meter discounts. Andrew Kuack, 6560 McKenzie Road, expressed concern about the sewer rate increase and wondered why this problem came about so suddenly. Mrs. Saringer responded to Mr. Kuack's questions by stating that last year Council tried to keep the sewer costs down and based the rates on water consumption numbers that turned out to be too high. That is one cause for this yeaz's increase. If Council were to arbitrarily lower the rates now, they would have to be raised even higher by the end of the year. She is considering voting yes on the increase in order to keep everyone from paying more in the near future. These rates have been studied by the Finance Committee and the city administration, and sJ~e will go along with their recommendation. However, she has advised Mayor Boyle and Finance Director Burns that she wants to see the monthly water consumption figures. Hopefully, if consumption exceeds projections, the rates can be lowered. Mr. McKay gave a brief history of events in response to Mr. Kuack's suggestion that this problem occurred "all of a sudden." In the latter part of the 1980's, North Olmsted was granted a $13 million loan from the federal government to upgrade the sewer treatment plant. Also, the city was advised that flooding would have to be addressed and sanitary sewage could not be pumped into the streets or into the storm sewers. Potential fines for these actions was set at $38 million. However, nothing was done until the present administration took office and addressed the flooding problems and the deteriorating sewer lines. Because of the work that was done, the EPA was convinced to reduce the fine to $175,040. We are now in the position of paying for the repairs through increased sewer rates. Indeed, if the city does not set the rates, the EPA will come in and do it for us. These rates were determined through consultation with Malcolm Pirnie, Squire, Sanders & Dempsey and National City Investments. If we do not act within a reasonable amount of time, the city credit rating will be adversely affected, which will raise the interest rate on the borrowed funds. Hopefully, the deficit will be overcome in two years. Betty Waltz, 30260 Sugar Sand Lane, also spoke in opposition to the sewer rate increase. She said she did not believe the EPA could force the city to increase the sewer rates as a means of payment and asked Mr. Musial to comment on that issue. Mr. Musial replied that he could not answer that question directly. He had attended the meetings with regard to the sewer rate increase, and the rates do look fairly accurate. He is personally against increasing the sewer rates--not because they don't have to bepassed--but because he does not like the way the sewer deficit is being addressed in a two-year period. Mrs. Wahz fiuther commented that she felt residents were being driven out of the city, especially senior citizens. Mayor Boyle said that North Olmsted is one of the few cities in Cuyahoga County showing an increase in population. The city does not offer senior citizen discounts on sewer rates, but we do recognize senior citizens in other ways. Mrs. Waltz expressed her displeasure over the purchase of the golf course while the city still owes money for sewer improvements. Mayor Boyle replied that the golf course has made money every month and is paying its own way. Mrs. Waltz asked if those funds could be used for the 2 ..,_._ , „ .., -, .. _ .~,a.,.