07-08-74 Council Meeting Minutes

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REGULAR MEETING JULY 8 1974 COMMITTEE OF THE WHOLE MEETING (CONTINUED) The motion carried by a roll call vote of six ayes (Councilmen Serge, Szymkowiak, Miller, Parent, Taylor and Newburn) and two nays (Councilmen Kopczynski and Nemeth) with Councilman Horvath absent. ORDINANCE AN ORDINANCE TO AMEND SECTION 15 -16 OF THE MUNICIPAL CODE OF THE CITY OF SOUTH BEND, INDIANA, AS AMENDED. This being the time heretofore set for public hearing on the above ordinance, proponents and opponents were given the opportunity to be heard. Mr. James Groves, 2210 American National Bank Building, made the presentation for the ordinance. He indicated that he was representing the Courtesy Cab Company in its request for an increase in the mileage rate. He stated that the ordinance that was draft -d indicated an increase to 254 per half mile. He indicated that this should be amended to be 10� per one -fifth mile. He requested that the Council make the amendment. Council President Nemeth asked for a copy of the amendment for the Council to study. Mr. Groves stated that an increase in the waiting time was also being requested. He stated that the price of gasoline has increased drastically and the individual cab owners could not operate their cabs like the large corporations could. The increases in rates in other cities far surpassed the rate increase being requested. He explained that the independent cab owners hire drivers to run the cabs on other shif +-s, and desirable cab drivers could not be hired because of the cost to the cab owner. He stated that, if the independent cab owners were driven out of business, the service to South Bend would decrease to such a point that it would be a drastic situation. Mr. Kevin Butler, 1221 St. Joseph Bank Building, indicated that he was representing Indiana Cab and Yellow Cab Companies. He talked about the number and kinds of people who utilize the cabs, and he requested that the Council delay action on the matter so that the representatives of the various cab companies could meet and discuss the proposed increase in order to develop a longer -range approach to the problem. Councilman Parent made a motion that the ordinance be continued to the next regularly scheduled Council meeting, s- conded by Councilman Taylor. Council President Nemeth asked for comments regarding the motion from Mr. Groves. Mr. Groves felt that, if there were legitimate issues to discuss, he would not object to the continuance. Councilman Kopczynski ask -d if Mr- Butler had worked with the cab companies on the increase approved last year, and Mr. Butler indicated that he had. Mr. Groves stated that there had been very little cooperation among the companies last year on the issue. Council President Nemeth stated that the next regular meeting would be quite a lengthy meeting, and he wondered if the ordinance should be continued into August. Chairman Newburn indicated that the Council could make that decision in the Council portion of the meeting. The motion carried. ORDINANCE AN ORDINANCE FIXING MAXIMUM SALARIES AND WAGES OF APPOINTED nFFICERS AND EMPLOYEES OF THE CITY OF SOUTH BEND, INDIANA, FOR THE YEAR 1975. This being the time heretofore set for public hearing on the above ordinance, proponents and opponents were given an opportunity to be heard. Mayor Jerry J. Miller made the presentation for the ordinance. He stated that the 1975 budget would be very difficult to prepare and he stated that the city was faced with many problems that made the task almost impossible. He talked about the problems of inflation and the "sky rocket" in the cost of living. He stated that pay to the employees has only been increased about 62% and the tax package takes the decision - making process out of the city's hands. He recommended that the top priority for 1975 be given to the city employees because of the additional workloads to employees and the successes of the programs despit the increased workloads. He felt the employees should be rewarded for their good service. He stated that the option must be kept open and the "across the board increase justified ". He stated that the maximum amount of salaries was being set, even though payment of this might have to be delayed for a period of time. He stated that if, in 1975, the money is not available, the increase salaries would have to be delayed until the necessary income was available. He asked that the Council approve the increases as submitted in the ordinance. He stated that, during budget hearing positions can be eliminated, and he recommended that all other increases for 1975 be cut to the increases of 1974 in order to give the employees an increase in salaries. He spoke highly of the majority of the city employees and he hoped the Council would give the employees top priority and increase their salaries 10 %. Mr. James Roemer, City Attorney, stated that he was representing the negotiating teams of the city, and he stated that in the negotiations, 20% increases were requested in some cases, additional holiday and vacation time was requested, full cost of the insurance was asked for; likewise, an arbitration clause, etc. He stated that all of these requests had been turned down, and he hoped that the 10% would be approved because he felt it was "eminently reasonab and fiscally sound ". Mr. Maurice Cohen, 725 East Eckman Street, stated that the Mayor has created various positions within the salary ordinance without a resolution or ordinance approved by the Council. He talked about the average worker and the inadequate salaries, and the increased salaries and cars furnished to the cabinet directors. Mr. Michael Lawrence, representing Teamsters Local 364, stated that the Teamsters Local 364 represented about 350 members employed by eight bureaus of the City of South Bend and the South Bend Park Department. He briefly talked about the negotiations and the proposal for a general hourly rate increase of 60� per hour. He talked about the problems of inflation, rising costs in food prices and other items and consumer prices. He stated that last year, the employees were granted an increase of 9� per hour which was about 22% during a year when the cost of living had risen 8.8 %. Mr. Lawrence stated that the union was strongly opposed to the administr tion's proposal of a 10% increase in salaries because it was not a fair increase to all employees. He suggested that the budget be translated into the largest possible hourly rate increase for those employees who earned less than $10,000 a year, and then the other responsibilities of the city be met. He talked about the requested arbitration clause and the possible delay of implementing the maximum salaries in 1975. Miss Virginia Guthrie, Consultant and member of the Board of Directors of the Civic Planning Association, stated that the association was of the opinion that the city could not afford a 10% increase in wages under the present $4.88 property tax rate or even under th statutory maximum rate of $5.00.. She urged the Council to reduce the increases to a point where th $5.00 or less tax rate would be adequate to cover the salary increases and all other increases in the 1975 budget. She briefly talked about the property valuation increase and the increased revenues from property taxes of $612,000. She stated that the association did not feel the city should rely on revenue sharing funds to pay the salaries of permanent city employees. She conclude by stating that the proposed ordinance contained some increases well above the 10% and some new ipositions as well, and the association felt that each new position should be thoroughly justified; Ua