Council approves water rate hike, JVP agreement

City Council ended the wrangling over the water rate increase at the Sept. 17 meeting by approving by a 6-3 vote a 7 percent across-the-board increase.

That left to City Utilities officials the task of finding the balance of the $3.2 million they have declared are needed for capital improvements. All told, about $40 million to $50 million is needed for capital improvements for the water de-partment for the next five years, according to Elaine McDonald, CU's chief financial officer.

Council also passed CU's proposed $378 million budget for 2002.

It also unanimously and without discussion passed an ordinance authorizing City Manager Tom Finnie to enter into the Amended and Restated Baseball Stadium, Exposition Center and Arena Development Agreement and Trade Center Redevelopment Agreement with John Q. Hammons and his wife, Juanita K. Hammons, and their revocable living trust.

Another ordinance also was unanimously approved one that created policies for gated communities. It requires that future gated communities indemnify the city for damages that arise because of the gates.

Water rates

There were two water rate increase ordinances before council the across-the-board increase for all 70,000 customers, and an alternate bill preferred by the CU board which would have acted as a conservation measure because it singled out summertime high-water-usage customers with a large rate increase. That ordinance, which also included a small across-the-board increase to all customers, failed 5-4.

Either way, McDonald said, the cumulative effect of the rate increase from either ordinance would have been about 7 percent. She said that council would have to decide in the future how to deal with the issue of high summer use, because that's what strains the existing water-treatment facility.

Mayor Tom Carlson told council before the vote that he would vote for both ordinances because council had to trust the information that came from CU about its needs. To put council's nose in CU's business too much would be "micro-management," he said. Council's job is to set policy, Carlson added, not to interfere with the day-to-day operations of a well-run utility company that is envied for its low rates.

He noted that the city charter was set up to make Springfield operate primarily through volunteer boards and commissions, and there was no way council, which is unpaid for its services, could take the time to understand the workings of the utility.

Councilwoman Teri Hacker, who voted against both ordinances, asked to table the issues, but her motion was defeated 5-4.

Councilwoman Mary Collette also voted against the bills, as did Councilman Bob Chancellor, who wanted to limit the rate increase to one year so as not to hold future councils to the 3 percent annual increases that will occur until 2006.

Chancellor suggested that now is not the time to increase rates, in light of the economy's woes and the terrorist actions that further disturb the economy.

Street changes

Council also amended the city budget by $1.1 million to pay for the relocation of Cherokee Street between Sagamont Avenue to Campbell Avenue. The relocation was given the go-ahead in the same ordinance.

Vacating the street will allow the Bass Pro campus to create a single entrance. A new stop signal will protect the three-way intersection when Cherokee extends to McGee Street.