03-08-76 Council Meeting Minutes

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REGULAR MEETING MARCH 8, 1976 (D) New Section II. That the funds transferred by this ordinance be spent as follows: A minimum of $100,000 to be applied to the Term Bond requirements and $100,000 be applied toward the Serial Bond payments due in 1976. (E) Section III. That a South Bend parking Facilities Study Commission be established jointly by the Mayor and City Council of South Bend, Indiana. There shall be nine members on the Commission, four appointed by the City Council and five appointed by the Mayor. The task of the Commission will include those listed below: 1. To develop a comprehensive parking plan for the City of South Bend. 2. To take a broad look not only at the downtown parking situation, but also to study the parking needs of all commercial areas of South Bend. 3. To study the parking facilities, experiments and plans of other communities so as to avoid duplication of parking experiments and to benefit from other communities' attempts. 4. To develop, recommend and monitor parking strategies for South Bend. 5. To study various ways of financing parking facilities, to explore the feasibility of establishing special taxing districts, and to determine the need for establishing a Parking Facilities Authority with bonding and other powers. 6. To recommend new state and local legislation as is deemed necessary. (F) Section II. becomes Section IV. seconded by Council Member Taylor. Mr. Peter Mullen, City Controller, indicated the Sinking Fund had a balance of $50,000 and was in arrears $425,000, and in order to remove this deficit, and to maintain current annual payments, $156,250 per year must be placed in the fund by December 31, 1976. He said it was very important to preserve our excellent bond rating. He indicated the administration was requesting the ordinance be passed in the sum of $250,000 in order to encourage new business to the downtown arez by offering free parking, and to maintain that the annual bond payments will be made. He said the administration urged the Council to approve the ordinance as submitted. Mr. Bob Blakeney, Chairman of the Chamber Parking Committee, for the Chamber of Commerce, said they would like to support this ordinance. He said that through the Council's and administration efforts much progress has been made on this problem. He said a question had been raised in re- gard to the daily parking rate being increased, but this would have to be approved by the Board of Public Works. He said a recent survey had indicated that the downtown needs more stores, better selection of merchandise and free parking. Mayor Peter J. Nemeth said he was very concerned about this amendment. He said they must pay $50,000 each year into the fund, which has not been done, and if the Council wished to cut back the money, pick on the free parking. He said the administration should not be limited to $100,000 for the Sinking Fund. Council President Parent said the Council was proposing to put $100,000 in the fund to pay $50,000 due in 1976 and another $50,000 to make up for the past years where we have not made any payments. He indicated the Council felt very strongly about the matter of subsidizing parking. He said that the reduction to $200,000 should not be interpreted as a negative move. He indica- ted that by attempting to establish a commission the Council was showing an interest in taking a comprehensive look at this problem. He said he thought his proposal was a step forward. Council Member "'iller said he would like a clarification on Section D, since he was not familiar with the way this money is moved. He said it indicates a minimum of $100,000 be applied to the Term Bond requirements, which is the Sinking Fund, and $100,000 toward the Serial Bond payment due in 1976, and he questioned where that would go. Mr. Peter Mullen, City Controller, said it was also the Sinking Fund. Council President Parent said the full $200,000 could go into the Sinking Fund. Council Member Miller said he was thoroughly confused in regard to the last sen- tence in this section, and would feel more comfortable if it wasn't there, since he did not under- stand it. Council President Parent explained the sentence, and agreed to strike it out since it would not effect the substance of the amendment. Council Member Miller made a motion to strike the third sentence in Section (D) of the proposed amendment, seconded by Council Member Taylor. Mayor Peter J. Nemeth objected strenously to the fact that this amendment would limit payments on the bonds. He asked that this money not be tied up, and the administration given flexibility' as to how to make the payments. Council President Parent indicated he did not understand why this amendment was not clear to everyone. He said it reduces the ordinance from $250,000 to $200,000, and makes sure at least $100,000 is paid toward the Term Bond and $100,000 toward the Serial Bond. He said it was a simple amendment and it was fairly clear what the Council wanted. He said the Council was will to make a $200,000 expenditure to subsidize parking. He said he was surprised at the comments that Mayor Nemeth had been making and thought it was a reasonable compromise of the Council. Mayor Nemeth said he wondered how many years it would take to pay off the bond. Council Presiden Parent said they were taking one year at a time. Mayor Nemeth said if the Council wanted to re- duce the ordinance to $200,000 this was fine, but do not limit the administration to the language, because it is important to get the Term Bond taken care of as quickly as possible. Council Member Szymkowiak said he agreed with the Mayor. He said we are not sure about Revenue Sharing money for next year, and as long as we are able to take care of our financial problems and have the money we should do so. He said he would recommend the ordinance be passed today for $250,000.00. Council Member Adams said Section II referred to a minimum of $100,000 be applied toward Term Bonds, but there could be more applied, therefore, the Council was not limiting the administration.