July 23, 2014 at 2:10 p.m.

Dunkirk water dept. gets loan (3/15/05)

Department loaned $100,000

By By Robert Banser-

DUNKIRK — In light of pressing needs at the city water department, council members here unanimously voted Monday night to authorize a $100,000 loan over a five-year period from a surplus in the city wastewater department fund to the water department.

Mayor Sam Hubbard explained that this option had been considered last October, but no action was taken at that time. However, since then there was the January ice storm, as well as a major water main break in a 10-inch diameter pipe near the water plant.

Anticipated water department expenses in the near future include painting the water tower reservoir tank at an estimated cost of $20,000. Repairs which will be required in connection with relocating water mains and hydrants for the Ind. 167 street resurfacing and improvement project, slated for 2007, also must be funded.

“In view of what the water department needs, we’d be justified in doing this,” Hubbard told city council members Monday night. He noted the wastewater department budget was “in really good shape,” especially compared to the water department expenses.

Larry Smith, councilman in charge of the wastewater treatment department, agreed with Hubbard, saying this will work out fine unless there is some major emergency at the sewer plant.

Hubbard said that he and water department superintendent Dace Mumbower came up with the $100,000 figure. The loan will be paid back to the sewage treatment account over a five-year period in equal annual payments without any interest being charged.

Mumbower pointed out that an alternative to making such a loan would be raising the water rates, but that would require a hearing and approval by the Indiana Utility Regulatory Commission. That could be a lengthy, expensive process, Hubbard said. Mumbower suggested that maybe it would be better if the city dropped out of the IURC like many other communities have done.

This idea was suggested in 1997, but it met with resistance from city residents, Smith pointed out. However, Hubbard did ask city attorney William Hinkle to prepare a report for discussion at the next council meeting describing what would be involved with dropping out of the IURC.

“We’ll look into that at the next council meeting,” Hubbard said.

In other action at Monday’s meeting, council members:

•Tabled making a decision on the awarding of a contract for tree trimming work and removal of broken limbs dating back to the January ice storm at Dunkirk City Park. Council members said they still had some unanswered questions relating to the project from the apparent low bidder, Tucker Tree Service of Hartford City.

Meanwhile, Dunkirk resident and co-owner of E & T Tree Service of Dunkirk, Eric Bowler complained about the bidding process. He questioned if the Tucker bid was based on receiving help from city street and park department workers. Bowler said his firm’s bid and that of Dunkirk-based Rick Newsome’s Tree and Stump Removal was not based on receiving any such assistance.

Bowler said that he was still upset about Tucker receiving city work without any bids being taken in the early days of the ice storm. Emphasizing that he is a city resident and his company is based in Dunkirk, Bowler described the situation as “a bunch of crap.”

“That’s your opinion,” Hubbard replied.

“I’m not going to argue. I’m just fed up,” Bowler said as the meeting continued.

However, Bowler did bring up another tree-related issue later. He criticized the reasoning behind cutting down several large shade trees along Franklin Street near the city library and Mount Tabor United Methodist Church. Bowler said in his opinion some of those trees could have been saved.

•Granted permission for the West Jay Optimist Club to sponsor two performances by a circus on May 12 in Dunkirk City Park. The shows are tentatively scheduled for 3:30 and 7:30 p.m.

•Learned that Hubbard and Dunkirk Police Chief Arnold Clevenger have been filling out paperwork for Federal Emergency Management Agency reimbursements relating to the January ice storm. Hubbard estimated Dunkirk’s total ice storm-related expenses at $132,000. He said FEMA could possibly cover 75 percent of that figure.

If the city doesn’t receive that reimbursement, department budget funds could be in jeopardy, Hubbard added.[[In-content Ad]]
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