03-28-11 Common Council Meeting Minutes

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REGULAR MEETING MARCH 28, 2011 Mr. Gary Gilot, Director, Public Works, 13th Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, advised that the Triangle Development project is a construction project defined as 55-60 residential properties, 70% at market rate pricing and 30% affordable pricing. The appropriated funds will be used to pay for the public infrastructure improvements including roads, curbs, sidewalks, street lamps, sewer lines, etc., per the approved architectural and project design. The original appropriation of$5.3 million was segmented to include $4.1 million related to Eddy Street Commons and $1.2 million to the Triangle Development. Monies appropriated for the Triangle Development were never expended, due to project delays resulting from property acquisition delays. The City let the appropriation expire at the end of 2009. Now, the City desires to recommence the Triangle Development project at this time and therefore, request to appropriate $2.4 million, $2.0 million in Major Moves Fund #412 and $0.4 million in Sewer Capital Fund #642. Mr. Gilot proposed a friendly amendment as per prior discussion a new Section IV. to read as follow: The Common Council appropriates these funds contingent on the Administration not awarding construction contracts until there is firm evidence of demand for lots to build housing in the Triangle subdivision. This evidence of demands shall be met when 25 lots are held by 25% deposits on the value of the lots. It is understood these are refundable deposits if the project does not go forward. Councilmember Oliver Davis asked Council Attorney Kathleen Cekanski-Farrand her opinion on the friendly amendment. Council Attorney Kathleen Cekanski-Farrand advised that the amendment Mr. Gilot read into the record be new Section IV. and to amend Section V. to read as follows: This Ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor, and upon the conditions set forth in Section IV being met. City Clerk John Voorde read into the record the amendment: New Section IV. to read as follow: The Common Council appropriates these funds contingent on the Administration not awarding construction contracts until there is firm evidence of demand for lots to build housing in the Triangle subdivision. This evidence of demands shall be met when 25 lots are held by 25% deposits on the value of the lots. It is understood these are refundable deposits if the project does not go forward. Council Attorney read into the record the new Section V. as follows: This Ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor, and upon the conditions set forth in Section IV being met. Councilmember Henry Davis asked if the Board of Public Works would then return to the Council to give a report when these measures have been met. Mr. Gilot advised that the Board of Works could send a letter to the City Clerk or to the President of the Council or both. Councilmember Henry Davis stated that why he is asking is because there is another piece to this, the project labor agreement being attached to this public works project not the private sector work that is going to be done. He stated that he would like to see some language or a commitment to a project labor agreement. He stated that he is sure that everyone is not opposed to having local jobs for local people. Mr. Gilot stated that a local resident worker clause without a PLA(Project Labor Agreement.) Councilmember Henry Davis stated that they would get more out of it with a Project Labor Agreement. Mr. Gilot stated that he doesn't think so. Councilmember Henry Davis asked Mr. Gilot to explain. 3