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HomeMy WebLinkAbout09-28-15 Common Council Meeting Minutes REGULAR MEETING September 28, 2015 Be it remembered that the Common Council of the City of South Bend, Indiana met in the Council Chambers of the County-City Building on Monday, September 28 at 7:00 p.m. The meeting was called to order by Council President Tim Scott and the Invocation (Oliver Davis) and Pledge to the Flag were given. ROLL CALL COUNCILMEMBERS: st Present: Tim Scott 1 District, (President) nd Henry Davis, Jr. 2 District (arrived 7:08 pm) rd Valerie Schey 3 District th Dr. Fred Ferlic 4 District th Oliver J. Davis 6 District Gavin Ferlic At-Large Karen L. White At-Large, Chairperson Committee of the Whole Absent: Derek Dieter At-Large, (Vice-President) th Dr. David Varner 5 District OTHERS PRESENT: Kathleen Cekanski-Farrand Council Attorney Adriana Rodriguez Research Assistant Janice I. Talboom Deputy Kareemah Fowler Chief Deputy REPORT FROM THE SUB-COMMITTEE ON MINUTES th Councilmember Oliver Davis made a motion that the minutes of the September 14, 2015, meeting of the Council be accepted and placed on file. Councilmember Valerie Schey seconded the motion which carried by a voice vote of seven (7) ayes. SPECIAL BUSINESS 15-84 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, PUBLICLY THANKING RON TEACHMAN, FOR HIS SERVICE AS 61 THE SOUTH BEND POLICE DEPARTMENT Councilmember Oliver Davis presented Resolution 15-84 to the full Council. Councilmember Oliver Davis stated our chief of police could not be here, our new Chief, Chief Ruszkowski will accept on his behalf. Thank you Ron Teachman for serving as the 61st Police Chief of the City of South Bend. We ask the City Council of The City of South Bend, Indiana recognizes that posted on the South Bend Police Department’s Website are words in the chief’s message which reads as follows: A society free from crime, violence, and accidental injury remains an unachieved ideal. It is therefore the mission of the South Bend Police Department to seek and find ways to affirmatively promote, preserve, and deliver a feeling of security, safety, and productive quality services for all citizens in our community. We understand that building, cultivating and maintaining the community's trust is a key element in crime reduction in our City. Our ultimate goal at the South Bend Police Department is to improve the quality of life for all our citizens as well as others we serve. Whereas Ron Teachman was appointed South Bend Chief of Police in January 2013, having been a thirty-four (34) year veteran of the New Bedford Police Department, served as their chief from 2006 to 2011, served on the Massachusetts Governor’s Anti-Crime Council Subcommittee on Urban Violence and was also the first South Bend Police Chief to hold a law degree having earned his Juris Doctorate Magna Cum Laude in 1994. Whereas the council did formally welcome Chief 1 REGULAR MEETING September 28, 2015 Teachman when they hosted an event at the Kroc Community Center where the public greeted and heard Chief Teachman’s vision on public safety. Now be it resolved by the Common Council of the City of City South Bend as follows: On behalf of the residents of the City of South Bend Indiana, the Common Council thanks and recognizes Chief Teachman for striving to implement best practices in policing. By launching many new initiatives such as: Operation Cease Fire, the every Thursday morning CAM meetings which all levels of public safety officials serving throughout the St. Joe County, just to name a few, which have helped foster, provide guidance, and leadership in pursuing the police department’s mission. To seek improvements in the quality of police service provided to the people of South Bend. Thank you Chief Teachman. Councilmember Karen White – I would like to thank Councilmember Oliver Davis for bringing forth this resolution while I wish the very best to Chief Teachman, I look forward to working with Chief Scott, welcome aboard. Councilmember Gavin Ferlic – A big thank you to Chief Teachman but congratulations to Chief Ruszkowski. Councilmember Dr. Fred Ferlic – I applaud and respect all that Chief Teachman did for us. He applied discipline and metrics to a department. I think that Chief Ruszkowski will continue with that. So best of luck to Chief Teachman and his future endeavors and he have all the happiness in the world. Councilmember Valerie Schey – In Chief Teachman’s absence I would like to take this opportunity to congratulate Chief Ruszkowski. We certainly are looking forward to you as our Chief and it has always been a pleasure and I am sure it will continue to be a pleasure working with you. Councilmember Henry Davis, Jr. – I’m going to echo the same sentiments as the councilmember to my left, Valerie, congratulations Chief Scott on your new appointment I know you have been looking forward to this for a very long time. You worked hard to get here so let’s make something happen, man. I look forward to some good stuff happening. President Tim Scott – I’d also like to thank Chief Teachman for his service and anybody who steps up into law enforcement in their service. Anybody who steps up puts a badge on and goes out and does that for however long or short of time they’ve been here in the city we thank him for his leadership and best of luck to him. Councilmember Oliver Davis- Again I’d like to thank our Chief. I look forward to new and exciting things with our new chief. Chief Ruszkowski- On behalf of Chief Teachman I know he is a little busy right now in the transition from the public safety perspective avenue that we have to the private sector. To say that he is running from A to B would be an understatement. He has been in and out of the office about 40-50 times today trying to get things caught up. I can assure you that he is much humbled and appreciative of what you’ve done with this resolution. I will make sure that he gets it. And, again on both of our behalves thank you for your support of the chief and myself. Thank you. Council President Tim Scott- This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. There being no one present wishing to speak to the Council in favor of or opposition to this bill, Councilmember Gavin Ferlic made a motion to adopt by acclamation Bill 15-84. Councilmember Karen White seconded the motion which carried by a voice vote of seven (7) ayes. th Councilmember Gavin Ferlic made a motion to continue Bill 15-93 to October 12, 2015. Councilmember Valerie Schey seconded the motion which carried by a voice vote of seven (7) ayes. 2 REGULAR MEETING September 28, 2015 REPORTS OF CITY OFFICES There were no city reports from City Office RESOLVE INTO THE COMMITTEE OF THE WHOLE At 7:31 p.m. Council President Tim Scott requested a motion to resolve into the Committee of the Whole. So moved by Councilmember Oliver Davis. Councilmember Henry Davis Jr. seconded the motion which carried by a voice vote of seven (7) ayes. Councilmember White, Chairperson, presiding. Councilmember White explained the procedures to be followed for tonight’s meeting in accordance with Article 1, Section 2-11 of the South Bend Municipal Code. Councilmember White stated that a brochure may be found on the railing in the Council Chambers explaining those procedures. PUBLIC HEARINGS 34-15 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND INDIANA ANNEXING TO AND BRINGING WITHIN THE CITY LIMITS OF SOUTH BEND, INDIANA AND AMENDING THE ZONING ORDINANCE FOR PROPERTY LOCATED IN PORTAGE TOWNSHIP Committee of the Whole Chairperson White requested additional comments from the Council Attorney. Council Attorney Cekanski-Farrand recommended a motion to hear the substitute bill 34-15 and that the bill be continued. Committee of the Whole Chairperson White requested a motion to hear the substitute version of the bill. Councilmember Valerie Schey made a motion to hear the substitute version of Bill 34-15. Councilmember Gavin Ferlic seconded the motion which carried by a voice vote of seven (7) ayes Councilmember Oliver Davis Chairperson, Zoning & Annexation Committee, reported that they met this afternoon on this bill and due to a lack of quorum there is no recommendation. Presenter: Matthew Chappuies, of Area Plan: Offices on the 11th Floor: This is the Southwest corner of Western Avenue and Mayflower. This is the future home of the Martin’s grocery store. The petitioner is requesting a zone change from residential in the county as well as commercial in the county to CBA community business district within the City of South Bend and as part of a voluntary annexation. To the north of the site is a retail strip center zone commercial. To the south, east, and west is predominantly a residential area. (Presenter begins to use slideshow presentation) This is a view from the site from, I believe July looking west along Mayflower. This is a view of the site, looking down the now vacate Huron St. There on the right is Huron St. from the other direction. This is going east. The site is approximately 8.4 acres and does contain the existing Top Notch restaurant there on the Northeast corner of the site. The site will also contain a 40,000 sq. ft. grocery store near the center of the site. The store will be oriented toward Mayflower Rd, however it will access from both Mayflower and Hollywood. A retention basin is located in the southeast corner of the site and the southeast property line will be screened by type B heavy landscape screening. This type of screening is intended to create visual and sound barriers that will protect the neighborhood residents from the traffic and general use of the site. The west property line along Hollywood Blvd, here, will be screened by mature evergreen trees as well as a seven (7) foot ornamental screening fence. That is again to protect the neighborhood residents from the noise of trash collection as well as the deliveries that may occur at the rear of the site. This is a drive-thru lane, outdoor setting area on the south portion of the site. I believe that is intended for some sort of coffee shop. There were several variances that the company did. However, the staff worked with the developer at length to ensure the site would not be injurious to the neighborhood. As noted this is an amended bill. The original legal description has changed and I’ll let the petitioner explain why that happened. 3 REGULAR MEETING September 28, 2015 The area plan commission sends this to you with a favorable recommendation. At this time I’d be happy to answer any questions. Committee of the Whole Chairperson White asked for questions from the committee. Councilmember Valerie Schey- My questions for you are twofold, the annexation of this parcel do we as a City already have water and sewer in the vicinity. Mr. Chappuies: Yes we do. They will be connecting as part of the annexation process. Councilmember Valerie Schey- Will we be just running from the main valve, is that convenient? Mr. Chappuies: I can’t answer that. I believe that the petitioner may touch on that a little bit. However there will be a presentation on the annexation process and that will be later this evening by Mike Divita and I believe he’s here to answer those technical issue questions of what the City will be investing in. Councilmember Valerie Schey- The other question I had is I learned with some developments in rd the 3 District, the promise of the buffer, the bushes, there have been some businesses in the third that haven’t upheld their commitment to putting the buffers, the tree buffer in. Is there any sort of written commitment in this site plan that those trees will in fact be planted? Area Plan Presenter: Yes there is. They are part of the variances that were approved by Area Plan Commission. What you see on the screen and what I described as well is required as part of this bill passing. Councilmember Oliver Davis- First of all the traffic, could you talk about the traffic study? There is a great concern regarding adding more traffic on the corner of Western Ave and Mayflower. Mr. Chappuies: I do understand that that is a concern and I am aware the city is requiring the developer to pay for a traffic analysis. However, the details of that I will leave that up to the petitioner as well as the department of community investment. Councilmember Oliver Davis- Also I would like for you or the petitioner to talk about the Hollywood Blvd. traffic and rationale of why that back entrance has to remain open. Is there any other consideration for that to be closed? Could you shed some light on that topic? Area Plan Presenter: It is my understanding that city engineering requested that access remain on Hollywood Blvd. for access for emergency vehicles and evacuation, things of that nature. Councilmember Oliver Davis- Is there anyone from City Engineering who can present on that? I asked for them to be here tonight. I really needed that to be coming from a city engineer. A lot of residents have asked me about that. We’ve had meetings about that. That was a key thing and their public works director heard about that this afternoon. Those officials are here now? Thank God. I appreciate it. I had a lot of issues about that coming up. Does he want to talk about that now or does he want to talk about that then, after the petitioner? We’re going to hear from our public works. I have questions for him regarding those matters. We’ll have questions with the public works director so he can address all the Hollywood Blvd. issues and to see if there is any possibility of any leeway on that. And say if that we can have our emergency routes come in there without having to cause traffic problems for our neighbors. And yet Martin’s can still move forward with their proposal. That’s what I’m hoping to hear at the end of this. Committee of the Whole Chairperson White- Thank you very much. Thank you for your presentation. We ask that the petitioner come forward. State your name and address. I would also like for a city representative to be ready to respond to some the questions that were addressed earlier this afternoon. Mike Danch (Danch and Danch) South Bend, Indiana- As Matthew had mentioned what we are asking to do are two things this evening. The first one is we are asking this property to be annexed into the City of South Bend. As Matthew had mentioned the property right now is in the 4 REGULAR MEETING September 28, 2015 incorporated area of the county. We’ve got a couple different zoning classifications from B- Business and residential. We’d like to bring the entire parcel in as CB community business. This would allow for the grocery store and also the existing restaurant. That’s one of the things we’re asking the council this evening to do. The second is to actually rezone the property and that is consistent zoning under the city guidelines what we are required to do in this particular development is we need to have community business zoning to allow for the both grocery store and to allow for the continued operation of the restaurant. The site plan that you see before you this evening covers about 8.5 acres of ground there are access points on Western Ave. which is an existing access point. There are a couple of existing access points off of Mayflower Rd. of which one is existing. The one where we are proposing a new one is down at the South East corner and the last one is an opening on to Hollywood Blvd. The site was laid out to orient the building which is approximately 40,000 sq. ft. toward Mayflower Rd. The back of the building would be toward the residential area or toward Hollywood Blvd. The main access point for this development is to come off of Mayflower Rd. We have an opening there that shows, basically, an entrance with a right turn coming in and a left turn going out. As part of the process that we went through for development of this property, we actually went to the county council first to request a vacation of Huron St. Which was a sixty (60) foot wide dedicated right-away that went between Mayflower Rd. and Hollywood Blvd. It was a straight shot between th those two streets. September 8 we met with the County Council and through the process we were about to get that street vacated with a nine (9) to zero (0) vote. The reason we had gone through the vacation process was to bring this all in as one parcel of ground. We also worked with the adjacent which is the West Winds Tavern at the South East corner of the site. We worked out a consideration were we did our design work so it allowed him to have access to our main drive away as well. His one concern was that some of the patrons from his particular establishment restaurant and tavern actually used Huron St. to go out to Hollywood Blvd. One of their concerns was to make sure there was access for his business from his particular facility at the Southeast corner of our property over to Hollywood Blvd. The way this plan is to take that into consideration we did it in such a way to make it more difficult for traffic coming from off Mayflower Rd. over to Hollywood Blvd. As Matthew had also mentioned as part of the development we asked for several variances for the development itself. The major ones that we worked with the staff on was for mitigation between this site and the residential property to the West and to the South. As Matthew had mentioned along Hollywood Blvd. we are doing a couple different things. Behind the building or toward the Westside and along Hollywood Blvd. we are going to be putting up screening. There’ll be a slight berm there were you see that green area on the overhead, along with evergreen trees and a solid screening fence. The reason for that was to mitigate any visual if you were looking from those residential to our site but also for a sound barrier. To the south there was an existing home, we again added some additional landscaping along there. We also had a retention area so that gave us a buffer area between that existing house and where any of the parking areas were or to the proposed building that you see. We actually worked again with the tavern owner because of the way the city ordinances are the tavern is actually zoned residential. That would have required evergreen screening along his entire boundary between his property and our property. He didn’t want that, he wanted to make that his property and also have visibility from Mayflower Rd. So one of our variances that they actually requested from the Plan Commission was to be allowed to use lower shrubs along our southeast boundary between our property and West Winds Tavern. We tried to work with him to be able to take that into consideration. He was satisfied with the result of our particular design. As far as drainage will go on this particular site we will be held to the City standards of the site itself is going to be filled in the area where you see the parking lot and the building. We will have a combination of a French drain system for surface run off and retention area that is required by the City of South Bend. Their requirement basically states whatever your impervious surfaces be it building or parking areas that you have to meet certain drainage standards and you have to hold those on your property. It is not allowed to run off-site. So, this plan will take that into account when we get to the final site plan stage, assuming that we receive the project approval. One of the other questions I believe that the Councilman had asked was has Martins Supermarket hired JPR to go out and do a traffic study. After we had gone through the street vacation process with the county, Raphael Morton, the Council President had asked me to have a meeting with County 5 REGULAR MEETING September 28, 2015 engineering and City Engineering on our access points on Hollywood Blvd. to discuss that particular issue. We did have that meeting with both the City Engineering and the County Engineering; the result of that meeting was that the City asked to do a traffic impact analysis study for this particular project. The scope of that project is to determine the impact the traffic would have coming off of Mayflower Rd., Western Ave., and also off of Hollywood Blvd. They want that study to take into account both traffic entering and leaving the site. That study would have taken into account what would have to be done in order for us to be allowed to build. So, if there are any improvements for me, those adjacent roadways. That impact study would say what would need to be done. That would become part of the record. That would also be part of the approval process for the final site plan. I believe one the council members had asked when those improvements would have to go in place. Those would have to go in place if there are those kinds of requirements that the City dictates for this development. Those would have to be done as part of the construction process for the grocery store. We were going to take a look at that issue we had met with the members from the city engineering department and county engineering department. One of the things that they did bring up was they prefer to have an access point on to Hollywood Blvd for safety reasons. Their concern was with any kind of development if any of other ways into the site or development would be blocked for whatever reason whether there was some problem on Mayflower or Western, they needed to have another way in to this particular site. The way we designed the access point on to Hollywood Blvd is to make it only for vehicles. The way this entire site was designed was that truck traffic can’t come off of Hollywood Blvd. into this site. They couldn’t make the turning radiuses. The way we’ve planned it is that they would come in either at our Southeast corner or come in the main entrance and then go behind the building after they unload they would be able to leave and go up to Western Ave. and back over to Mayflower. Or they would be able to come back out to our main entrance and back out to Mayflower and then make a left or a right turn on Mayflower. The access is not enough to make a turn off of Hollywood Blvd. So I think, what we’ve tried to do is to design it for that particular case. One of the other questions that the council had asked was the type of infrastructure that would happen on the particular development. We have been working with the City on this for several months and one of things the City had asked us to do is, there is a ten (10”) foot water line that is up at the Top Notch restaurant site that dead ends into our property. The City asked us at our expense to loop that line and bring it up along Mayflower Rd. and then tie it back into the subdivision to the East. So, Martin’s Supermarket will be doing those improvements at our cost. We would also be extending the waterline and probably another loop around into the property for fire protection. There is an existing sanitary sewer line that is running through the vacated Huron St. So we will be tying into that, that’s an existing sanitary line that does not have to be improved or extended, that is already on site. Any of the other utilities we would have to pay for bringing them on to the property. One of the other items that we were doing as part of this project assuming that we receive approval and we move on to the next step is that we are going to be working with Transpo on this particular project. We are going to end up having a bus drop-off area at the front of the store. We had been working on our original plans the first time that we talked about doing this particular project, Transpo had thought about doing a bus drop-off along Mayflower Rd. and we said that’s a little too far away for patrons or for people to walk from Mayflower Rd. to the store. That we would actually provide an area in front of the building so that the bus actually comes in and drops off or picks up people. Then because of the way that we designed the site they would be able to pull back out and continue on route. Assuming this gets approved that will be part of the final site plan procedure; we’ll be working with Transpo on that as well. We believe that we’ve done everything possible to try to design this site to fit and the way we designed it with the landscaping orientation of the building, where the parking area is located. One of other items that was mentioned was lighting that we do for these particular sites because of the way the South Bend zoning ordinance is written we are very restricted on the type of lighting we can use or the site improvements. The lighting has to meet a certain standard. The actual light poles are usually around twenty-five (25) feet tall, they are fully shielded, and one of the things we have to submit as part of the final site plan procedure is what they call a Lumens plan. That Lumens plan basically dictates the foot candles or any light spillages along the adjacent property line between us and any adjacent property owner or public street. 6 REGULAR MEETING September 28, 2015 Under the City of South Bend standards that is a zero foot candle, which means we can’t have any light spillage over on its adjacent property. So that would also be a part of the final site plan procedure. What we would ask Council to do is approve the annexation request that we are doing and also approve the zoning for the CB district. What we will probably be seeing here is a development in excess of 10 million dollars brought into the City of South Bend. If you have any questions I would be glad to answer them. Committee of the Whole Chairperson White- I’m going to start with the Council in terms of questions. Then I am going to ask that our Public Works Director Eric Horvath come to the podium as well. At this time, this is the opportunity to ask questions of the petitioner. Councilmember Oliver Davis- Could you clarify what would happen if the spillage of lighting comes into the people’s homes? I know that we have a zero rate for the city, but what happens for the county houses around there? If people who live in the county happen to have problems with lighting what should they do? Parking retention issues, you said that there is a difference of the parking lot, could you explain that a little bit better for people to understand that. Hours of operation, security, and whether Top Notch is still going to be around. The last thing, I want the public works person to talk about is the rationale of why they wanted to keep Hollywood Blvd. for security reasons or traffic reasons and if there is any other configuration that could be done or anything else to keep traffic minimized on Hollywood Blvd. If there is an emergency wouldn’t trucks be included under emergency purposes too? Mr. Danch - First thing lighting, whether you are in the county or the city doesn’t make any difference, the site plan has to reflect zero foot candles around the perimeter. If there is an issue with lighting any of the adjacent owners if they thought that there was light spillage or some light pollution coming on to their property, they could check with the City Building Department. We are required to submit a plan and it shows what’s going on so that there is relief for that if they believe there’s a situation. The Building Department would certainly ask us or at least call us to ask to give them specifications if there was a concern about a certain light fixture. They have it shown on the plan that somehow someone thought that there was some spillage of the one. That would take care of that part. Regarding the drainage issue, we have been dealing with the City of South Bend, we’ve got the large parking area and we’ve got the building those are our impervious surfaces. We have to handle the surface runoff based on the city standards which is about a two inch (2”) rainfall. The distances that you have on that parking lot, most likely under that parking area you will end up with some piping, you will end up with some gravel that you wrap around the pipe and that’s what we call a French draining system. That will handle that surface runoff that comes off that parking lot. If you have an overflow area or you’re picking up water from the building then that retention area that you see at the Southwest corner of the site is where that water would go to. That is not going to be a pond, that is going to be a dry pond, and we have sandy soils that are out there. So that is not intended to hold water, it’s basically to handle a rain event based on the city standards. So that’s how we take care of that situation again, that’s reflected on the site plan that is reviewed by city engineering and approved by city engineering for capacity, routing, and the type of systems that we use. Councilmember Oliver Davis- Security and Hours of Operation? Mr. Danch - Hours of operation are typical of Martin’s, I believe from 6 a.m. to 11 p.m. is what they do. Security-wise they do have a security officer in the building but also have security cameras within the building itself and on the outside of the building. Councilmember Oliver Davis- The last question that came for the public works director about the traffic study. Mr. Danch - I think we had said, I am going to let the Public Works Director talk, but one of the points of having the study done for the traffic is also to allow for that study to actually reflect what it is anticipated that cars would be going out on to Hollywood Blvd. So when you are taking a look at a site like this when we have two-hundred and fifty (250) parking spaces all the cars are not being dropped on to Hollywood Blvd. They will be going out on to Mayflower Rd. and 7 REGULAR MEETING September 28, 2015 Western Ave. So you have these other areas, where only a portion of your patrons are actually going to go out on Hollywood Blvd. If you take a look at it there’s houses to the west of this particular site and you would like them to be able to get to this particular facility. Maybe some of the other patrons don’t like to use Mayflower Rd. or they don’t like to use Western Ave. maybe they prefer to have a less traveled way if they are going through a neighborhood. Sometimes older residents like to stay off the main roads and they like to have a way into these particular facilities. Councilmember Oliver Davis- You mentioned emergencies too. Could you talk about the trucks again? Also this is going to go up in 2017 and you’re saying after the traffic study, after they find whatever they find, if they need more road or whatever, that will be a part of the construction as it goes up and not after it’s up. Mr. Danch - That would be correct. When you are doing the traffic study, that’ll become part of the site plan process. He’s going to be taking a look at that when we are handling plans for the building site, how we do drainage, how we do our access points, that study will basically tell the city what needs to be done. The city will then tell us what has to happen as part of the approval. Chairperson White - I am going to ask councilmembers to address any questions they have with the petitioner and then our City Director of Public Works and comeback. Councilmember Henry Davis Jr. - Will this petitioner be seeking a tax abatement through the city or the county? Mr. Danch- If they were going to do that it would probably have to be in the City. I am not aware of any petition. There are different processes that you have to go through. I am not aware of anything right now. Councilmember Henry Davis- Are they here? Petitioner- They are here. Councilmember Henry Davis Jr.- Would they be interested in answering that question? Mr. Danch - They could do that. Robert Bartels 760 W Cotter- We do not have plans and have not requested any of those abatement kinds of things yet. We will see where the price tag is on infrastructure roadway and the rest. I don’t know what is going to be required there or what it might require from us. We don’t have plans right now. That hasn’t been a part of our program yet. We will see where the cards fall in terms of cost and ultimately what that road design requires. Councilmember Henry Davis Jr.- The reason why I asked that question is because we’ve had this issue before and I think that we stated this when we were at the public meeting at the Laborer’s Union. I fear that, not that this is your issue, but with the City having another empty building on a main thoroughfare that there is no interest in looking for a new tenant or helping support in finding a tenant for that building and also the tax issue of being able to file for a tax abatement through a county and getting zero and the City goes and annexes the area under that same tax abatement and then we have to honor it at zero. That’s why I’m asking that question. Robert Bartels- I thought I heard a question about the current building that we’re in right now and its future use. We’re not the landlord in that location. So I have no way of knowing what their plans might be for developing that center further. Councilmember Henry Davis Jr. - I said that that was a City issue. I was not putting that on you. Obviously you cannot answer that question. But the other question that you can answer is about the tax abatement. Robert Bartels- That is correct sir. Without trying to explain tax abatement in its entirety. There is some unforeseen possibility in terms of road and development. We’ve been a good community partner and we do the right things for the right reasons. We are looking forward to being earnest 8 REGULAR MEETING September 28, 2015 in our endeavors. However, I don’t think that it’s appropriate for me to commit. I have no idea what it might show. If it’s reasonable and usually those things fall well within what we are willing and capable of doing. I know there are other things that the City is looking at. Secondly, we are not escaping taxes, we’re asking to become part of the City and pay City taxes and continue our track record of being good corporate citizens. I’m stuck because without going into the mechanics of tax abatements, it’s not a zero sum game. Councilmember Henry Davis Jr. - I wasn’t trying to suggest that you were trying to avoid taxes. It was just a simple question. As you move to the county, as you could be or are trying to relocate to the county the law is what I stated, that we will have to honor whatever the county gives you. When or if the annexation happens. I do know we had a similar situation with another business where they are not paying anything at all and so the City will not recoup any taxes from your new development per the county abatement law. That is why I am asking the question. So, you are still sort of saying you may or may not know what’s going on. If you don’t know you don’t know. Robert Bartels- The answer is we have had no conversation with anyone about tax abatements at all at this point. Committee of the Whole Chairperson White- At this time we have no other questions for the petitioner. We do have questions for the Director of Public Works. th Eric Horvath Public Works Director: Offices on the 13 Floor- I appreciate your time this afternoon and I appreciate Martin’s continuing to invest in this area and keeping a store in this area. I think it is great that they are doing that I also appreciate the efforts they’ve made today to work with local businesses and local residents to try to minimize any impacts that their store will have in this area including a traffic impact study that we are asking them to do. I think that really the crux is trying to find a way to keep a store here but minimize any impacts it has through looking at the lighting, looking at the landscape, and then looking at any potential traffic issues. I do want to point out that the traffic impact study will tell the story in what we will ask them to do. If we need dedicated turning lanes, if we need excel/ decel lines, whatever we need to do to make sure we’ve got safe traffic movements that can happen out here. That will be part of that traffic study. Having said that, I also need to make sure that the Council understands that Hollywood Blvd is a county road and will remain a county road. As such the city will not have jurisdiction on curb cuts nor will we have jurisdiction on limiting trucks or other activity. So if we want to put some type of traffic control measures in there, until it’s a City street we will not have the ability to do that. I do think in terms of the curb cut on Hollywood Blvd., my staff thought it’d be helpful for public safety access. That we make sure we have a number of access points for police and fire for any instance that would happen there. They did recommend having a cut on Hollywood Blvd. However just to be clear that is county jurisdiction. Councilmember Oliver Davis- How long does a traffic study take and then when will you find the results of that and then how will that be released to the public? Especially the neighbors and all of us that in the Sixth District of South Bend. How would I and all the council find that out? Let’s say everything was approved tonight. When would we find out about it and is there any voice the neighbors have in that study? Do they survey them? Tell me about it. Eric Horvath- Director of Public Works deferred the questions to Michael Danch. Mr. Danch - They will be checking to see if the scope is correct, first. My guess is that this will be about a four (4) to six (6) week process. Councilmember Oliver Davis- So by the end of October middle of November we would know? Mr. Danch - As soon as we give it to the City, you can share it with the council members and probably what would end up happening is once you see that particular study you’re either going to be in contact with City Engineering to ask to them questions about what that study actually represents. Councilmember Oliver Davis- Then the residents themselves, how can they find out about that? 9 REGULAR MEETING September 28, 2015 Petitioner- If we submit it to the city it’s potential public information at that point so they would be allowed to request a copy of that. Eric Horvath- We can put that on the website or make sure we are sharing with folks. At the point we are sitting down having discussions it will be delivered in material. But once we have a final document on the traffic impact study it’ll be a public document that we’ll share. We will sit down with Martin’s and make sure we’ve got a plan that works for them, works for the community, and essentially a way we can feel comfortable that we’ll have safe traffic movements in this area. Councilmember Oliver Davis- Who is in charge of making that study? Is it City people or is it MACOG folks? If someone wants to talk to some people, can they write letters to people to get their viewpoints heard so the neighbors and people can have some say, or is the professionals themselves coming together without any input from anybody? What is it? Petitioner- No, that’s what it is. The City has asked for a traffic impact study to be done by a professional transportation engineer. There is not a survey that gets done when these professionals start doing this particular analysis. What they take a look at is what’s proposed for a particular site, the size of the building, what the turnout would be, the parking lot and usage that is going to go on this particular property and based on that information, and they look at historical data based on these types of developments. They will come up with a formula that says how the traffic is going to work at this particular location based on their best estimates. That’s what the City is asking for. That’s how the City does traffic impact studies. For all their arterials, they have the Traffic Engineer take a look at those and then the City takes that information to make any kind of improvement or do what they think they need to do. Councilmember Oliver Davis- If anybody violates the issue on Hollywood it’s not the City’s responsibility it would be the county’s responsibility? Eric Horvath- This will need to be a joint effort between the City and County when we get the traffic impact study so that the county is on board with any impact on Hollywood Blvd. and actually portions of Western Ave. as well. Councilmember Oliver Davis- Thank you for your time. Committee of the Whole Chairperson White- We will now move into the Public Hearing portion. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. Those wishing to speak in favor: Murray Miller, 1201 S. Priscilla Dr. - I am in favor of the new Martin’s store. I think any improvements to the Westside of South Bend are greatly needed and welcomed. I live and work within a six block radius of the new Martin’s, so I think it’s a great impact for the Westside of South Bend and I ask that you approve that. Steve Moore, 53154 Wildlife Tribe of South Bend- I think it’s great I have been shopping at this Martin’s on Western Ave since 1981. I just think it’s time for a new store. I think it’ll help the Westside a lot and bring a lot of new customers not only to our store but also the Westside. Richard and Christine Holland, 13116 Flowing Stream Ct.- I’m in favor of the new Martin’s, I think that moving back to the west end is a great thing that Martin’s is doing. It’s going to become a destination place, which I feel is going to help the west end hopefully draw some of that business from the Grape Rd. area on to west end, because it is going to be a destination point. We have been shopping at Martin’s, I worked for Martin’s, I just think it’s a great thing. I live on the west end. They’re going to put a store on the west end that we can be proud of. I am definitely looking forward to all of the amenities Martin’s has to offer at some of the other stores. Putting those on the west end would be a great asset. 10 REGULAR MEETING September 28, 2015 Sam Centellas, 746 S. Meade St. - We’re excited, La Casa de Amistad has been promoting a lot of development on the Westside, so we are just glad to see a business investing on the Westside of town and putting in a great facility. It shouldn’t just be the other side of town that has great facilities. We are thankful to Rob and his team who are continuing to support the Westside. Mark Neal, 112 W. Jefferson Blvd.- When I first moved to South Bend in 1979 my Martin’s was on Portage Ave., the original Martin’s. When we moved again my Martin’s became the Erskine Plaza Martin’s. My Martin’s now is SR 23 and Ironwood and the quality of our community is in part the strength of our local businesses. I think Martin’s has been a tremendous corporate citizen. When you look at the all the things that they promote, the pride that they take in our community and in their stores, I think that they’re just an outstanding local corporate citizen and deserve our support. Those wishing to speak in opposition: Eric Kazmanski, 56921 Hollywood Blvd. - All these people that were in favor that’s a great thing that they’re in favor, the thing they didn’t mention is they don’t live on Hollywood Blvd. and they don’t live on Elmer St. The reason I am here today is because of concerns we have with the new Martin’s store coming into our neighborhood. Our neighborhood now is a quiet neighborhood and no doubt will be greatly impacted by this Martin’s. Mr. Oliver Davis and Mr. Henry Davis were at our neighborhood meeting so they already know our issues that we were concerned and all that we brought up at our neighborhood meeting, the biggest problem is the back entrance off of Hollywood. It’s really an unneeded traffic problem in our neighborhood. No other Martin’s has a back entrance into a residential neighborhood I brought this up before they said 23 and Ironwood has one. I took a ride there they have one little gate up about ten (10) feet off of Ironwood that goes into a neighborhood that’s the back of their complex into a condo situation. There’s no residential house down in that neighborhood and they’re not being impacted, they don’t have Grant Dr. slippage, all the people coming from the west slipping into that street to cut through that gas station parking lot to get into the Martin’s. Martin’s say they put a back entrance for the residents in our neighborhood. The resident don’t want it. I think my wife mailed you a package with a petition showing we don’t want that. So if they are doing it for us they’re doing us no favor. As far as the tavern customers go they don’t live in our neighborhood either for the bulk of it. They don’t need a little traffic thing to sneak out through our neighborhood. At the end of the county council meeting County Council President Raphael Morton told Martin’s engineers he understands our concerns and told him to call the City Engineering department and address these issues. He said he did and I did talk to City Engineering and they told us it’s a county issue. I am little bit confused on why it’s flip-flopping both way. I understand it’s a county road and a city property possibility. The biggest thing is this back entrance, Mr. Danch says that they want a portion of the traffic to slip on our road we don’t want that portion of that traffic. Why would we want that? I can stand in my street for half an hour at a time and don’t have one car. I don’t want all those people down my neighborhood. If you want to go to Martin’s you go around the front. As far as emergency, okay, there is a place by UP mall where they had the same issue where all the traffic was cutting through the neighborhood they put a crash gate up. If you have an emergency they can snap the lock drive through it whatever they have to do. They don’t need this entrance open all the time just for everybody to cut through our neighborhood. That’s really all I have to say. Thank you for your time. Diana Kazmanski, 56921 Hollywood Blvd.- Good evening members of the South Bend Common Council. I hope you’ve had an opportunity to review the package of information I provided to your office. In addition to Martin’s petition to annex and rezone the property located at Western, Mayflower, and Hollywood Blvd., I’d like to bring up for your consideration preventing Martin’s from having an access off of Hollywood Blvd. Allowing Martin’s to have an access off of Hollywood Blvd., would jeopardize the safety of the residents living in the area and cause major traffic problems. As you can see from the diagram Martin’s plans to build a drive-thru service for customers to purchase coffee. As we all know traffic the drive-thru can back up quickly. As a result drivers will have to wait on Hollywood Blvd. before accessing Martin’s. The residents who live directly behind Martin’s will have to witness and deal with traffic congestion all day. The second traffic problem is at the intersection of Hollywood Blvd. and Western. Holy Family 11 REGULAR MEETING September 28, 2015 parishioners and parents use Hollywood Blvd. to access the back entrance into Holy Family Church to attend services and drop off their children for school. Crossing over Western is already difficult as it is. But with additional traffic turning on Hollywood Blvd., there will be an increase in accidents at this intersection. The third traffic problem will be at the intersection of Hollywood Blvd and Grant, everyone traveling east on Grant will use Hollywood Blvd. to access Martin’s. This will jam traffic on Grant as drivers wait to turn on Hollywood Blvd. Martin’s representatives have argued that traffic down Hollywood Blvd. will be minimal due to the entrances and exits off of Mayflower, this is false. Since there is no left turn signal at the intersection of Mayflower and Sample, traffic turning North on to Mayflower will begin to pile up, deterring drivers from using Mayflower to access Martin’s and instead use Hollywood Blvd. Everyone says that these traffic problems on Western and Hollywood and Grant and Hollywood Blvd. are INDOT issues. Let’s please stop passing the buck and let’s prevent these traffic problems from being INDOT issues and we can do that by closing access from Hollywood Blvd. into Martin’s. Hollywood Blvd. was not designed to withstand a heavily volume of traffic, it’s a county road not a major thoroughfare. At th the county council meeting on Sept 8 Councilwoman Diana Hess and Councilmen Robert Kruszynski, Raphael Morton, Mark Catanzarite admonished Martin’s to take seriously the concerns of the residents and do something to resolve these problems. Martin’s has not made any concessions or offered any solutions to the safety and traffic problems. I speak only on my behalf, since no resolutions have been offered I propose we make the access off of Hollywood Blvd. into an emergency gate access. I’d also like to thank Councilman Oliver Davis for his assistance regarding the concerns of our County residents. Thomas Kowalski, 56680 Hollywood Blvd.- I speak on behalf of my Mom who has lived at 56680 Hollywood Blvd. since 1954. Our property is directly south, along the south border of the Martin’s. My mom who is 92 would probably hit Bob Bartels with her cane she is so upset, that’s a different story. My concern is the retention pond being one-hundred and (150) feet from our well. Since we live in the county the surrounding homes have well water. The pollution off of the overflow from the parking lot may in time pollute the wells. What kind of recourse will we have? Secondly, she does not want the traffic from Hollywood Blvd. She doesn’t particularly like cars going down the street. Nobody has mentioned the construction trucks. Are they going to use Hollywood Blvd. to haul materials in and out or are they going to use Mayflower and Western, which are built for heavier traffic? She is against it and I am against it. Committee of the Whole Chairperson White: We will now move to the rebuttal and ask the petitioner to come before the council, questions regarding well water, runoff, and what impact it may have, construction trucks, and whole issue of Hollywood Grant, Hollywood Blvd. and Western Ave. and the back entrance and the gate and whether it could be gated to allow for trucks to come in and out. Robert Bartels (Petitioner) - First of all, a lot of things talking about traffic, we’ve got a traffic study coming. I know that we will respond earnestly and in a forth right fashion to those things. The other issue is a larger zoning issue piece. We’re going to become neighbors with folks who don’t currently have us as neighbors. There is nothing like a track record to help explain some things and we’ve heard concerns about light, concerns about traffic, trash, a whole variety of things. First of all, we are taking a proactive approach to what we do. Spent an hour and half th speaking with neighbor folks on August 26, we’ve met extensively with engineering and traffic folks and have engaged a process that is thorough and as fact based we can possibly get it. Third we do take all concerns as seriously as we can. It is very difficult to answer things in an abstract way though. I am not sure what might happen if we try to focus on what has happened. Here are a list of nine stores where we are in very close proximity to neighbors, to side roads, to residential areas, as I look at a couple of things. As you can see our back parking lot is something in the nature of twelve (12) to fifteen (15) feet from the houses within that square on that corner. This is an area where you have heavy remonstrance. Martin’s Supermarket, we did the right things for the right reasons, we took care of the trees, we took care of the shading, we took care of the sound and we made a difference. Here is a neighborhood that is essentially surrounding our store and has many of the same kinds of features that we are discussing here today. Where does traffic go and how do we handle it? What do we do as corporate citizens you notice cars parked directly next to a roof that is on the right. We talk to that neighbor frequently and we don’t have complaints. Here’s our university store that goes on a residential street. They were concerned about us having this access. We said no to truck traffic initially, we had the fence that you are asking about there. 12 REGULAR MEETING September 28, 2015 We have since left it open and possibly have removed it because it wasn’t a concern or an issue. Here is an idea with a retention pond that is in the light blue, there is housing just to the north, there is housing just to the Southwest and again that store has been there for a few years and we’ve not had issues. Here’s a retention pond, directly across the street from a residential area, to the right-hand side that is a fueling center that is just to the left of that blue area. Here is a residential area that is right next to a store that had extensive light concerns. We use the appropriate landscaping, we have the appropriate fencing, trash control and it’s a windy area. We deal with our neighborhood well. This is our store in Warsaw where were actually required to put a back entrance into a residential zone and had the opportunity to add an access into a resident zone. So the residents could skip going on to more heavily traffics areas and get directly into our parking lot. We have extensive experience in what we are doing. We are trying to do things in the right way. We are also being attentive to concerns. That’s it. Councilmember Henry Davis Jr. - I want to be clear about this, I listened to all of the conversations, the pros and cons. I think it’s awesome that someone is investing in the west end of town, I think it’s awesome to see a store that has seen it’s better days expand in an area, that sorely needs to grow, and appearance improvements the other side of this conversation about zoning has a lot to do with the people who live in this area and being perhaps disrupted from your usually life and look I agree. I have a small child and I don’t want to see any extra traffic on my street either. Sometimes we can control those things to make sure it’s maintained and made as safe possible is something that we can work really hard at and change. The question that is still out there and I think I made this very clear about had everything to do with the tax issue. I’m going take another minute to explain why I go at that point very hard. The tax issue is an issue with equality. South Bend has a problem with equality. The City government does and as a result most businesses in this area have an equality issue. People who are of color in senior management positions, people that work in the stores that are of color, I am not just talking about black people; I am talking about black and brown people. When I get into those conversations and how we work towards a more equitable South Bend, those numbers and that reality does not exist. So, when we get into the conversation about the tax abatement the tax abatement will ask who is apart and whoever is using the tax abatement whether they will have X-amount of minorities is going to ask a number of questions and usually those questions are somewhat answered at best. At the end of the day that tax abatement is usually given. Because they able were able to answer other questions that made up the amount points that they needed to get the five (5) year, eight (8) year, ten (10) year abatement. My issue and I will continue to stand until I can see some difference in the attitudes in the City. If I can support your store in the way of my dollars, I should be able to see myself in that store as a working partner or/and/as a City government with taxes. But when I get into that conversation I don’t want to get stuck at the zoning and annexation issue because there is a large issue there. I want to continue to voice my concerns as it relates to those issues. We just can’t keep looking at these things as it relates to its own standalone issue and then move on. As we continue the divide between people of color and non-color continues to grow and then when we get into conversations about the wealth gap and we get in to conversations about how we can close that gap or how we can’t close that gap. It’s within our police force, it’s within our South Bend Fire Department, it’s within the other departments of the City, it is within the many of the businesses in the City. I can’t as a city councilman being elected from a district of color, predominantly color continue to watch the people that I represent go unemployed or under employed because no one wants to ask that hard question. I am not ashamed of it, I’m not scared of it, but what South Bend has to do, what South Bend needs to do if it’s interested in growing we all have to be at the table together we and all have to be included. So when I asked the question about the tax abatement, if you are seeking one fine great. How do we work towards a better day? How do we get more people from the neighborhood included in on working at the store? Whether it’s the construction part or whether it’s the nine to five part. I don’t know how to get that done but it’s a question that needs to be asked. If I’m spending my money there that questions needs to be asked. If you are offering the store to everybody in the neighborhood to come shop there that question should be the first question asked. Yes, it’s going to be a nice pretty shiny store. I enjoy the Panini and get me a few of them when I can. I get that that’s great but the issue that’s before me right now has always been the unemployment numbers in this city and how does that turn into crime and we have our fair share of it. Until I can get some resolve from whomever for anything from this City about how 13 REGULAR MEETING September 28, 2015 we have better practices as it relates to our racial disparities I cannot continue to give my support to. Henry cannot do that. For the district too. Councilmember Dr. Ferlic- I can tell you from personal experience that Mr. Bartels’ father was more concerned about minority hiring and hiring the handicapped than any person in South Bend. I can also tell you that their store will pay millions of dollars in taxes. His stores in South Bend, Mishawaka, in Southern Michigan, in Elkhart, and all over the community. So I applaud him on his efforts. As Mark Neal said they are great City partners. You can count on them and I think we should continue to support them. Councilmember Oliver Davis- I can have someone from Martin’s come up? Can you clarify one issue for me and that is with the gate. I heard there was a gate at one of your other stores. Is there any reason why that option can’t be utilized? And if it works it works and if doesn’t work you can open it up similar to how you did over at University or whatever that store was. Is there any reason that the two can’t be similar? Robert Bartels- I don’t object to the idea. But I do not want to be here negotiating specific things without a traffic study and having data in front of us. Councilmember Oliver Davis- I’m cool with that. Robert Bartels- I think first it’s step one and then its step two. I don’t want to get into a design discussion on the specifics. I don’t know how to respond to that best. If the City wants a crash gate there and asks us for a crash gate there we will certainly consider it. I might also then; I’m going to lose my temper. I think we’re in the details of something we don’t fully have information about. When we do we will respond to it. Councilmember Oliver Davis- We’ve talked on the phone and I’ve been over to your office. You have to understand where we are at. As a business person I respect what you’ve done and your father and everything else. Also, as a government leader I get asked these questions okay? I’m not in your shoes and you’re not in mine. I don’t want to lose my temper on people when they call me either. When people ask me and they send me letters they have a right for me to ask this question to you. Because that’s not good quality service you understand that of all people. If I go off on the people when they send me a letter and then I get mad at them and lose my temper because sent me packages, packages, and packages like my dear friend has done, I have to ask her question. So, I am just telling you, I being very straight with because you said that. I am taking the time here because this is my district. When I drive down there I have been stopped by many people when I wash my car I’m being stopped for the last three (3) months on the issue. I have to have these answers. I’m all supportive of what you’re doing but I have to live with my people. You work there but I live there. That’s what I’m saying I’m very glad that you, we both don’t know the traffic study but I just want to make it clear that when the traffic study comes that it’s on the table that you would be willing to do like you’ve done in other places. That’s all I’m asking. There is no need for both of us to lose our temper on that. Robert Bartels- Putting the gate up is certainly on the table. Maybe we make a commitment to talking about this in six (6) months after the store is open. I am more interested in responding to a problem that really exists. If the problem doesn’t really exist then why pretend like it exists. If there is a problem with that gate six (6) months after we can pick a date and have all the folks that showed at the first meeting, invite widely, I am into customer service and we are on the same team. I want the best customer service. I want the safest customer experience. I want the right kind of thing happening in the neighborhood. If something bad is happening we are more than committed to responding to it. That’s the picture I was trying to show you before. So perhaps, we can give it an opportunity to breathe a little and let a little of the emotional component, a little of the feelings come off this issue and then reengage it. I am fully willing to do that, in fact, I’d be a fool not to. We stand for doing the right things for the right reasons every time we can. So perhaps that type of commitment is welcomed. Councilmember Oliver Davis- I appreciate that. You and I have been at area plan together and all the sudden the neighbors came they filled this room up with area plan. We’ve been at this for a while so I just appreciate it. I just wanted everybody in the neighborhood to know that you have 14 REGULAR MEETING September 28, 2015 that commitment, I have that commitment, they have that commitment, and now we can move together as a team. Now we can eat at your place. Thank you. Committee of Whole Chairperson White- We would like thank everyone councilmembers, public, presenters, petitioner for your input, and for addressing questions that pertain to this very important project in our community. I do know that Martin’s are good partners; I had the opportunity to work with them when IU housing first was opening up. We are able to work with three entities: The State, Mishawka, South Bend and IUSB to bring about change. In terms at looking at what would be best not only for Martin’s but also for the students we served. I am very confident as we move forward that we will be able to do the same for this wonderful site. I would like to thank Martin’s for your commitment and your investment in our city. I look forward to the grand opening. Councilmember Oliver Davis made a motion send Bill 34-15 to the full council with a favorable recommendation and set the third reading for October 12. Councilmember Dr. Ferlic seconded the motion which carried by a voice vote of six (6) ayes and one (1) nay Councilmember Henry Davis Jr. 44-15 SECOND READING OF THE BILL FOR TRANSPO BUDGET Councilmember White Chairperson, Personnel and Finance Committee, reported that they met this afternoon on this bill and due to a lack of quorum there is no recommendation. David Cangany General Manager of Transpo (Presenter) - I’m going to go over our 2016 annual budget. This is probably the fourth year that we’ve come before the Common Council based on a change in Indiana Code that requires us to come before one of our governing authorities as opposed to our board of directors as we are a municipal corporation receiving tax dollars to operate our system. The 2016 budget at a glance is just shy of 11 million dollars. The 2016 budget is balanced, that is always great news to start out the year on a level playing field. The most important thing is that we are maintaining the service level from 2015 and our passengers will see no decrease in service. When you look at our expenses, almost ninety percent (90%) of our expenses are (inaudible) through contracts especially on the wage side. With our bargaining unit workforce about seventy-two (72%) of that is tied up in wages and benefits. That is through a three (3) year agreement we have the Amalgamated Transit Union Local #996. We do have a little bit of an increase planned for our operating expenses this coming year but again we are making it happen. The labor expenses are going up slightly. We just finally reached an agreement with our bargaining unit workforce on an expired contact we had. We are excited to have that resolution so we can then plan for the coming years; the next three (3) years are locked in the contract with our union. Dental and health insurance are the same kind of thing we keep talking about year after year we come before you, we’re working with our workforce to look at options. This contract that we just went through with our employees we negotiated and we’ll hopefully see some leveling off on our health insurance. Unfortunately, with the healthcare reform we’ve seen quite a bit of increase over the last few years in regards to health insurance. Fuel, this is one area where we are going to see a decrease for the 2016 calendar year to the tune of almost for $400, 000 by converting our fleet from tradition diesel to compressed natural gas. To date Transpo has taken delivery of sixteen (16) brand new buses. They are out in service and it’s great to be paying one (1) dollar per gallon versus the almost three (3) dollars a gallon we had been paying in the past for fuel. When you look at our revenue, we are very limited in where we can kind of pull money in from. We have a lot of different areas but we’re limited in how we can leverage those areas. One of the areas that we’ve been increasing revenue in and really something that we do not want to do but is something we have to do in order to keep our service running is by taking Federal Operating Assistance, so essentially dollars we’d be using to make capital improvements such as buy new vehicles, buses, and things like that, we’ve been converting those over to operate the system on. 15 REGULAR MEETING September 28, 2015 This is something that has become popular among transit agencies as we’ve since seen declining state and local revenue sources. It is something that we continue to do to keep the band aid on so we don’t have to raise fares. When you operate a system that is mainly used most transit deficient individuals keeping the fare low is one of the most important things. We anticipate a slight uptick in revenue and that’s from a change we made in our fare structure. The normal cash fare to ride a bus is one (1) dollar and that remains the same as it has for several years. There will be no increase in our fare. Property taxes is where we receive quite a bit of our operating revenue as well. We are showing just a slight increase in that area. State operating assistance is an area we’ve taken quite a significant hit in over the last couple of years. Actually Transpo’s taken over a one (1) million dollar hit in the dollars we receive from the state of Indiana through the public mass transit fund. This is the first year in quite some time that we will see an increase. It is small about $36,000 but anything helps. Our hard efforts of lobbying down in Indianapolis are starting to pay off. This is our federal operating assistance the last couple of years in order to maintain service we’ve been converting over capital dollars as I mentioned. We are pretty much maxed out on federal operating assistance of the 2016 fiscal year. It leaves a lot of question about what will ultimately happen in 2017. Some of our challenges this year and in the year ahead is to continue to purchase revenue service vehicles or new buses. We operate one of the old fleets of vehicles in the state of Indiana, which means it cost a lot of money to operate those vehicles. We are running a bus that has an average useful life of twelve (12) years but when it’s fifteen (15) years old it becomes very costly to maintain that vehicle. We are going to continue to learn how to weather the storm of uncertainty of our federal funding program. As the Congress keeps extending it through continuous resolutions instead of finding some sort of definitive answer to that. The same with the state. The folks in the legislature and the Governor’s Office understand the importance of funding public transportation. We’re working very hard to control our expenses and be good stewards of the tax payer dollars. We are also continuing to develop a plan to weather the storm of uncertainty, for the 2017 property tax cap is very close to us. In 2016 we will continue to work toward our designated stop program. It has taken a little longer than we had hoped for but we are getting a lot of great things out of the way as well. We are continuing to work and expand our opportunities with local universities and educational organizations. One of the things we are doing is we are looking to Ivy Tech for workforce development. We have a very aging workforce as well. Forty percent (40%) of our workforce is eligible to retire within the next four (4) years. It makes it very hard to replace employees that have been with your organization for twenty (20), thirty (30), even forty (40) years. It’s tough to get folks who even want to come and do a really thankless job of driving a bus and getting our folks in our community where they need to go. Then as I mentioned our aging bus fleet. We just signed a five (5) agreement with a manufacturer to buy buses from. Our board just approved that five (5) year agreement as well as the purchase of up to six (6) new buses this year. We’re continuing to work hard on maintaining our aging fleet but replacing that aging fleet. The hardest issue is coming up with that local match. We’re taxed on the dollars that we have to spend. We are required to come with a twenty percent (20%) local match to purchase any new vehicles or any capital we might have. We are working creatively to make that happen through competitive grants and other things. That is the Transpo budget for 2016. Committee of the Whole Chairperson White – Asks for questions from the council. Councilmember Dr. Ferlic- So fifty percent (50%) of your money comes from either the state or federal funds basically? That’s a tough nut to crack if the state cuts back and fed cuts back. Right? Presenter- Correct. Councilmember Dr. Ferlic- Think people have to realize that. You’re subsidizing fifty percent (50%) so that’s a tough problem. Councilmember Oliver Davis- Is that a typical or standard number across transit agencies across the country? Are we higher or are we right in the middle when it comes to being at fifty percent (50%)? 16 REGULAR MEETING September 28, 2015 Presenter- Actually most transit agencies see more local involvement whether that’s on the city or county level. That’s something that Transpo’s going to have to start looking at is leveraging those relationships if you will into finding new ways to find funding to show that our community is truly invested in public transit. It is not just a federal or state responsibility. In Indianapolis that is a huge thing that we always have to defend is that there is local interest in funding public transit. Councilmember Oliver Davis- What do you mean that most places have local and community support versus what we have at Transpo? Presenter- It’s a direct disbursement from the City or County General Fund or whether it’s a sales tax. We are very limited in the State of Indiana unfortunately with how we can collect our taxes to fund transit agencies. Right now we couldn’t go to the ballot with an initiative to add a penny to the sales tax, that’s something that is very popular in other communities. The legislature just allows Indianapolis or the central Indiana region to do it. They are going to the ballot with it 2016. So that is one of the things that at the state level is how do we bring that throughout the entire state and getting folks to understand the real benefit of transit. It’s not just getting folks from point A to point B. It’s when you go and get that cup of coffee in the morning how did that person get there? Or when you look at the components on a vehicle where are they made? Most of the components on a transit bus come from our state. It’s helping folks to understand that and getting them to understand that by making that investment it pays off as well. Councilmember Oliver Davis- Can you send to this Council a list of all the cities who have transit, in the State of Indiana, that are getting funds from their city and/or county? Could you briefly explain where we are at with regards to our fees in terms of other cities, especially cities our size. In term of our rates, what is our current rate and where does that stand in terms of fees? Presenter- We’re one (1) dollar per ride. We are one of the lowest in the state. The only city that is lower than us is Muncie and they're at $0.75. Everybody else is at least a dollar or more. Indianapolis is at $1.75 cash fare, Lafayette is significantly higher, and Evansville is even much higher. We are still a great bargain for our passengers. By introducing a day pass you can ride the entire Transpo system by throughout the entire day for three dollars. That is something new we introduced this year. We are seeing our passengers are getting a really good value with that. The pass is actually being used around 4.6 times for each pass. It just shows that folks are actually saving money by buying that pass, that getting rid of the transfers was actually a good thing for our passengers. Councilmember Oliver Davis- Can you send us that list too to see what other municipalities are helping locally. Committee of the Whole Chairperson White- We will now move into the Public Hearing portion. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. There being no one present wishing to speak to the Council in favor of or opposition to this bill, Councilmember Oliver Davis made a motion to continue Bill 44-15 in the Council portion only thrd on October 12 and schedule a 3 reading that the same day. Councilmember Dr. Ferlic seconded the motion which carried by a voice vote of seven (7) ayes. Councilmember White requested a motion for the purpose of public hearing of Bills 41-15, 42- 15, 43-15 to all be heard together. Councilmember Gavin Ferlic made the motion. Councilmember Tim Scott seconded the motion which carried by a voice vote of seven (7) ayes. 41-15 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 16, SECTIONS 16-6 AND 16-8 OF THE SOUTH BEND MUNICIPAL CODE TO ADJUST FEES FOR CITY COLLECTION AND DISPOSAL OF REFUSE (SOLID WASTE) MATERIALS 17 REGULAR MEETING September 28, 2015 42-15 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 16, SECTIONS 16-6 AND 16-8 OF THE SOUTH BEND MUNICIPAL CODE TO ADJUST FEES FOR CITY COLLECTION AND DISPOSAL OF REFUSE (SOLID WASTE) MATERIALS 43-15 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 16, SECTIONS 16-6 AND 16-8 OF THE SOUTH BEND MUNICIPAL CODE TO ADJUST FEES FOR CITY COLLECTION AND DISPOSAL OF REFUSE (SOLID WASTE) MATERIALS Councilmember White Chairperson, Personnel and Finance Committee, reported that they met this afternoon on Bills 41-15, 42-15, and 43-15 and due to a lack of quorum there is no recommendation. Mayor Pete Buttigieg; Offices on the 14th Floor (Presenter) - I will be brief before turning it over to John Murphy and my other colleagues. I want to begin this with a big thank you to Chairperson White of the committee, the council members, and council leadership, and everybody that has had a hand in bringing the budget together. I brought a copy because I think it’s important for the public to have a feel for just how much information, much data, and how much work is involved in the budget that our administration is presenting tonight. Tonight’s hearing is the next step in a process that has included nine (9) public meetings with council members as well as three (3) public presentations to communicate the budget strategy and its contents. I want to thank the members of our department that have worked to provide a deeper and fuller information requested to shed light on many details that council members have expressed interest in. That process is continuing. We responded to approximately two-hundred (200) questions so far and forwarded three-hundred and seventy-six (376) pages of information last time I checked. I know this reflects both councilmembers doing their due diligence on needs to understand what we’re proposing be voted on as well as relaying questions for concerned and interested members of the public and so we continue to work to gather any information needed th for the vote that is scheduled for the 12 of October. Today’s budget is trying to balance the needs and resources of the community while keeping South Bend’s fiscal strength intact. The focus is to continue South Bend’s extraordinary come back in economic and civil terms, while making sure the benefits of this growth are felt by every family and every neighborhood in the city. That was exceptionally challenging this year because property tax revenue has not substantially increased. For that reason I instructed every department supported by property income taxes to prepare a budget with as close to zero percent (0%) net growth as possible. They were able to do this while offering a two percent (2%) raise and absorbing a twenty percent (20%) increase in health care costs without major cuts to personnel which is a credit to those efforts. Much of what you are going to see in the budget today is reflecting on the need to continue delivering on what has worked in recent years. You will see changes in order to build out areas we believe we need to build more inclusion, innovation, and sustainability. I just want to say a brief statement about that before sending it over for full presentation. When it comes to inclusion I want to emphasize that this budget contains a strategy for addressing an issue that has been on everybody’s mind recently that is diversity and inclusion in our workforces and City operations. The workforce made gains and we may be ahead of some of our neighbors but we are still a long way to go before we are able to say our workforce reflects the community it serves. So that’s the reason that we seek in this budget to create the position of a diversity and inclusion officer. Having taken onboard input from the Council we are asking that this be installed as a direct report to the Mayor’s Office in order to make sure it has City- wide visibility and authority. There are two (2) pillars to the strategy that will be overseen by this office. One is vendors, this is taking up the work that previously had been done by the compliance officer and would continue to be guided by the utilization board and employees. Where we can continue to grow in hiring and recruiting upper management practices, I would expect the incumbent in this position 18 REGULAR MEETING September 28, 2015 to spend the bulk of his or her time on public safety, given the heightened interest in the public and on the Council in making sure that our next generation of public safety officers are as diverse and reflective of the community as possible. This will also be a strategic advisor for the administration and will be asked to engage in professional service as necessary. I also want to draw attention to the creation of an HR position with a focus on public safety. This position while it is about more than diversity certainly it is our expectation that it is going create processes that better establish and document the merit basis or promotion and personnel decisions in the Police and Fire Departments, which we believe will help to ensure and demonstrate the basis for those decisions. Expanding opportunity is also a reason we are asking that Municipal IDs be included in this budget. I just want to be clear about where we are in the process. We believe that every resident will be better off if it is possible to be a card carrying resident of South Bend. We are still designing the details of the program. We are encountering a lot of aspects of this program that need to be thought through. We are sufficiently committed to the process and the concept that we are budgeting for now. In other words it’s necessary to have those funds in the budget in order to be able to roll out the process when the time comes. It’s budgeted for conservatively as you’ll see in the presentation. And we think it’s going to be the right thing to do. I probably should just restate that for a number of people who are here specifically on that issue. (In audible spoken in Spanish) This is not a vote on the ID cards this would lead when the budget is acted on to having the resources to do it when the time comes. I know there are a lot of people here interested in that. Overall as was stated when I first came before Council earlier this year to discuss the budget the single biggest category of expense is public safety, followed by economic development. Including continuing to plan for vibrant neighborhoods, with investment in vacant properties, Light Up South Bend and Curbs and Sidewalks. Also, trying to increase our ability to connect residents to the economic opportunities that are taking place including increasing labor force participation. I also want to reemphasize what we are trying to do with compensation. Raising the minimum wage for our City employees to $10.10 over the next three (3) years and using efficiency gains increase and at the same time having an across the board increase in the salary maximum for non-bargaining positions. We are continuing to invest in quality of life in our parks and we’re trying to be more efficient through innovation which is why we’ll continue robust funding for innovation and technology. Last but not least I do want to emphasize our determination to sustain South Bend’s superior AA credit rating. That happens as a result of the tough decisions that this Council and the previous Administration have made. We are continuing to make the choices that we believe put us on a sustainable path through the long run. I will leave to John and colleagues to offer the detail presentation. Before I step away from the Chamber I wanted to see if there are any questions about the strategy or philosophy of the budget that is on the councilmembers’ minds at this time before proceeding. Committee of the Whole Chairperson- I will go straight down the roll Councilmember Henry Davis Jr. Councilmember Henry Davis Jr. - Mayor so glad to see you today and I appreciate your presence today at this meeting. I have been paying attention and I have been at all but one (1) budget hearing. I was in the back earlier asking some of my colleagues about their feelings about the budget process. I have come to understand, just for me, that it has been a very difficult realization for the lack of vision that has been put forth as to the reason or the requests of many departments. I was reluctant to hear the vision to why each department was asking for X-amount of dollars for the next year. In conclusion to what my colleagues and I were talking about it just sounds like that it’s going to be the same thing that happened last year that will occur this year, so business as usual. My question because you continue to talk about diversity each year the numbers in diversity have fallen as a total City workforce, year one (1), year two (2), and year three (3) as well. If we’re going to be looking to create a fund or create a position as it relates to diversity will you allow the Council when it comes to the decision to be a part of the process when it comes to choosing who that person is? I ask that because you’re numbers have not proven to match up to what you say you want to do. It is undeniable it’s in the numbers. I am asking because we get the questions, I don’t particularly know if you get questions like we get them. We tend to get pointed as the fault of the City and I find that to be unfair because we don’t have it. Then people say we need a more diversified workforce, we need to see people that look 19 REGULAR MEETING September 28, 2015 like us that work in the City. But we don’t have the say so in who’s been hired and then we get blamed for the people who are not being hired. Mayor Buttigieg (Presenter) - I would say the separate roles of the legislative and executive point to the executive, in this case the Mayor. Or lead by the Mayor or being responsible for personnel decisions including hiring. That being said, I certainly welcome input, views, and any vision that members of the Council would like to contribute. This is a very important issue. It’s one that calls for input and views from throughout the community. There are few people better positioned to offer that than members of the Council. That input is welcome. Though of course the final decision with any hiring process rests within the executive branch. Council Member Henry Davis Jr. - I understand that but we only have to approve the money so that you can hire that person. I am asking for a shared interest in this, Sir. This is not meant to be a sparring match but if we’re approving the money to support the hiring of these individuals and we’re asking, I’m asking that we have a seat at the table so that we can get the best person or the best people that work at the City level. There is no reason if you are not interested to approve it we don’t get what we need out of it, for the residents of South Bend. The municipal ID issue as well, I had a bill that was filed and obviously you are trying to not do a policy change before municipal ID. I’ve seen it work in cities such as Richmond, Ca, where there was policy change that was done and it went with an educational component. That allows everybody to understand exactly what is going on because people have all these mixed views about immigration, etc. Again, shared interest again we are asking because we are a bit confused on the $18,000 in the program because we still don’t know and just said as well. In approving $18,000 for a program that we know nothing about again, Sir, that is bit farfetched. As a matter of fact, I know it is. In the interim I’m asking that we share in the planning of that for the betterment of the citizens. Are you interested in that? Mayor Buttigieg (Presenter)- I would absolutely welcome a proposal from you or any other member as to what details you would like to see included as we make our decision about how to design the program. What we are asking for here is funding the program and making sure that the resources are there when the time comes to implement it. There are different models of how to do a municipal ID program, some call for an ordinance some do not. I think that regardless of what version is going to take place here more Council input can be expected whenever appropriate. What we are really looking for here is to make sure, since this is our one (1) time of the year when we do budgeting in regular order that the funds to do it are in place. The role of the Council is to decide whether to allow that to be possible by funding it or not funding it. The role of the administration will be design the policy input from any members of the public, especially council members would be welcome anytime. Councilmember Henry Davis Jr. - My last question is this: Why haven’t we moved past tax base expansion only to TIF districts? I am seeing an absorbent amount of attention being paid to TIF districts I know the reality is because of the support of the TIF district to infrastructure improvement etc. public or private partnerships but we are losing the battle when it relates to the general revenue for the old part of the City or the City where a lot of the neighborhoods are at that’s not in the TIF districts. Is there a plan in place because I didn’t necessarily see it in the budget that is going to help introduce an expansive tax base within areas that are not in TIF districts? Mayor Buttigieg (Presenter) - The intention of our economic development is to expand opportunity in every part of the City. Naturally you are going to be seeing more economic tools being used in TIF districts because that’s where those tools are. That’s where we are able to make contributions under the law using funds that are targeted for use in redevelopment areas. I certainly don’t think that the only place we can make a difference is in those TIF districts. I think you’ll see that both as you review this budget and as you look at the overall planning that we are doing. That we are very often working in areas that are not in TIF districts. So, yes that is always part of our plan. Councilmember Henry Davis Jr. - We are working in parts of the city not necessarily creating a tax base or taxable land. Working at a cemetery that is not in the TIF district or right outside the TIF district is not necessarily an expansion of the tax base. I get that, I am asking about taxable 20 REGULAR MEETING September 28, 2015 new development in old parts of the City or parts of the City that’s not in the TIF district. Taxable land not our working or share interest with another non-profit that’s outside of the TIF district. I am looking at being about to expand taxable land outside of the TIF district. Mayor Buttigieg (Presenter)- The 300 million dollars in private investment that has come to the city in deals that we’ve have been involved with since taking office has largely gone into that tax base that we are concerned with. I haven’t seen a breakdown of how much that falls within the borders of land that marked off in a TIF district. Obviously, you can expect that many of the areas of greatest need are going to be in there that’s why they were in the TIF district in the first place. There may be times when it’s appropriate to revisit the boundaries of the TIF district as the Council has asked to do and did last year creating more opportunities. Particularly the TIF districts that cover the majority of the Westside where you see so much of the increase in the impact base associated with the investments of real personal and private and personal property through the business deals that have taken place so far. Councilmember Dr. Ferlic- From the public safety aspect Mayor, we’ve been long time invested in a minority recruitment officer and I know it always doesn’t correlate with the metrics that the Ferguson, Missouri, versus Baltimore but it is just common sense that we need a more diversified Police and Fire Department. What is the exact role you are going to have a minority recruitment officer, correct or just public safety? Mayor Buttigieg- The intention is to have a diversity and inclusion officer for the City of South Bend. I think that it’s the case that the bulk of that individual’s time in the early life of that position will go into Public Safety. I think as we’ve developed this concept it has become clear that there has become a need for strategic support. That this needs to be somebody who is able to report directly to the Mayor’s Office and to have purview over a strategy for the City. Recognizing again that the bulk of where that cash is at is going to be in the Public Safety departments. Then what you are going to see is that other position that HR position which is situated in such a way that it is going to focus on public safety. We’ll also be able to be a multiplier in our ability to do recruiting and retention and better process management. These roles are different, one is strategic and focused on HR and process management in a way you can see it adding up to a full-time equivalent or a little more than one (1) full-time person on public safety with a view toward the diversity of our force. Councilmember Dr. Ferlic- Most cities that I have seen about our size or a little larger have two or three people devoted to it. So do you think one full-time equivalent can handle the entire job description? Mayor Buttigieg- It’ll be one (1) more than we’ve had. We don’t think that that’s enough but we’ll have to revisit that in next year’s budget. I do think it’ll represent serious progress and this also is why we want to make sure there are funds available for professional services to augment the ability of the in-house personnel and staff. The HR person working on that side of the equation and then strategic leader working under my guidance to get the job done. Councilmember Dr. Ferlic- Secondly you asked for some philosophical questions about the future. Cities are made great by the economics, schools and crime. Those are the three triad. Have you thought of being involved in the schools at all as far as mayoral appointments? Is that in the future because I am not sure the present system is working. Mayor Buttigieg (Presenter) - I know that the debate comes up from time to time about the structure of our school corporation. That probably a broader philosophical debate than I can touch here at this point. What I should say is this will come up in the short term and medium term, I believe the most positive meaningful way that a municipality can intervene in support in education is in the pre-K gap. We have large number of students who are making it off the Headstart waiting list. We know that is an area where we can make a difference in the lives of so many children who are headed into that K-12 system. My view presently is that would be more bang for our buck than attempting to change the political structure of the school board. Again I think the City has a huge stake in success of the school corporation. It’s appropriate to revisit that question from time to time. 21 REGULAR MEETING September 28, 2015 Councilmember Oliver Davis- Good evening Mayor. I appreciate the concept of having an Affirmative Action person in the HR and in the Police Department but I have a great concern about that. It kind of in my mind where we are in 2015 when you have a person who is dedicated just for that purpose it frees the human resource person to not do their job. A good human resource person looks at everybody. They look at African-Americans, Polish, and Hungarian, everybody and they deal with that. I think our local school got into some issues. When you have that one (1) single person out it can create backlash. It can be perceived as reverse discrimination. A good thing can turn out to be a legally bad thing in 2015 legal law. I agreed with having more people. I think we have to be careful in saying this is the affirmative action person, they are responsible for getting Hispanics, African-Americans and then the human resource is no longer responsible for doing that. University of Michigan had problems with that. A lot of universities are getting sued and losing because of that same concept. So we don’t get into more lawsuits, like when one of our schools had a field trip for all African-American students. We really have to be careful when using public dollars just to target. What legal counsel have you consulted before you implement this? To handle those on the far left or far right. Partly, I thought the position Ms. Peate has was going to do that similar thing too. It really didn’t stir the pot as I hoped it would because now we are here again. Nothing against her or her colleague it just didn’t turn out the way I thought it would. What legal counsel have we had before we put this into a budget? Then it’s off your hands and you can say that’s what the Council voted. What is something we can have a legal recommendation from Cristal Brisco to say she has worked with Lonnie Douglas our Human Rights Coordinator that you looked at other cities, that you have the case law that will help us to present this to a very conservative public? Mayor Buttigieg (Presenter) - I would not bring any recommendation to this council that our administration and legal team, led by Cristal Brisco did not view as legally appropriate. Councilmember Oliver Davis- Can she give us a document to give our counsel i.e. a brief or summary? Politically it’s great, I live on the Southwest, to say I am for municipal IDs I got my Hispanic and African-American it sounds great but then I have to deal with the reality of the law. The reality of the law and public dollars is not always a pretty thing. I haven’t seen enough information for affirmative action positions or the municipal IDs from the legal department. I want that before we vote on the budget. I don’t think $18,000 is enough and I don’t want to pander to people and if we vote against this budget then it’s a vote against Hispanics. I don’t’ want to throw a carrot at people. I want to know the legal ramification of traffic stops, going to the library, the water company, to get an apartment, if they go anywhere with a city ID I need to know the legal ramifications based on state, federal law, and other city practices How does this budget effect the Sample St. and Olive St. over pass monies? I know that is old money that came from Ewing St. Gary Gilot came to Rum Village and told this money has been moved. Can you give us a summary of how much of the old money is being used for that or if it is new money? Mayor Buttigieg (Presenter)- When it comes to which dollars are in there and when they were encumbered I don’t want to get out of my depth and ask John and Eric to speak to that. What I will say is that have heard from you and others about urgency of getting something done there. We are fortunate to be able to take advantage of some federal dollars but not without a sizeable City match. I will flag that and hopefully it will be spoken to a little bit later. Councilmember Oliver Davis- I have some other questions I will send to you. Committee of the While Chairperson White – It is important to note we will be in committee throughout the process. We will have ample opportunity for questions to be addressed to make sure we have a clear understanding as we move forward. John Murphy Controller (Presenter) - I want to thank our department heads and other fiscal managers. (Presenter began a slideshow presentation) The budget consists of one-hundred and three (103) funds. General Fund, Special Revenue Fund, Debt Service Capital Fund, Enterprise Funds, Internal Service Funds ( i.e., health insurance, central services), Trust and Agency Funds, Police and Fire Pension Funds, and Redevelopment Funds which are approved through a th different budget process. May 28 was the budget kick off meeting. We are in our fourth (4) st month, one (1) more month to go. July 31 Mayor Pete held in-depth meetings with each 22 REGULAR MEETING September 28, 2015 department that were one (1) to three (3) hours long. We had a number of public Personnel and Finance Committee meetings and three (3) off-site meetings. st We complied with out September 1 requirement to submit a draft budget to the County. We’ve advertised our budget in the Gateway state system which is a legal requirement. Today is our th public hearing on the budget, we are hoping for a budget adoption on October 12 with a backup thth date of October 26. November 6 is our deadline. Five (5) or Six (6) of our budgets through the General Fund are approved through the state. They can change our budget but they haven’t done that in ten (10) years. Revenue and expenditure summary, our total proposed budget for 2016 is $304,956,659 it is a large budget. The General fund’s balance is at $53,852,368. That is an important fund to balance every year and we have. As Mayor Pete mentioned, we’ve been operating under that the property tax circuit breaker since 2009, you have seen the downward slope which has been difficult to work with. We are hoping for relatively modest increases in the next two (2) to three (3) years. There is also an issue with property taxes in 2020 that we will have to deal with. A good question came up in the public meeting, “Who pays property tax?” Residential forty-three percent (43%) Commercial twenty-eight percent (28%) personal property tax fifteen percent (15%). Who receives property taxes? Cities and towns receive twenty-eight percent (28%); St. Joseph County School Districts receive twenty-six percent (26%); TIF districts receive twenty percent (20%); the County receives fifteen percent (15%). Local income taxes our COIT, LOIT, Public Safety LOIT, from 2015-2016 it has been choppy based on state distribution the trend has been slightly up. We are using these funds for operating more than we ever used to. As the general fund restricts we are using more of these funds. Here is revenue across all lines: $274,871,262 property taxes, twenty-six percent (26%); Charges for services at thirty-six percent (36%) waste water, water, park charges fees, enterprise fund related, local income tax, nine percent (9%), other taxes are five percent (5%) (gas tax, wheel taxes, hotel, motel, cigarette, etc.,). Expenditures by activity general administration is six percent (6%), Economic Development is eighteen percent (18%), Utilities is twenty-eight percent (28%), Public Safety is twenty-five percent (25%). We wanted to bench mark, it is always good to know where your peers are at and this is based on the CAFR (comprehensive annual financial report). General government expenses were fairly low compared to Green Bay, WI at $75 per capita, the lowest is South Bend. That is considered an overhead cost, you want to keep that generally low. Expenditures by fund type, Enterprise Funds are the largest (water, waste water, etc.). Salaries and wages $79,915,000, that number is slightly th less than 2014 by ($465,000), biggest factor being the 27 payroll of 2014. Fringe Benefits increases cost at $29,000,000 or ten percent (10%). A summary from one year to the next, the middle is the highest because we encumber from projects that are in progress. They roll over to the subsequent year’s budget and those can be anywhere from $25-30 million dollars. st You can’t finish every project by December 31. That’s why amended budget 2015 is so much higher than the others. 1,100 budgeted full-time positions, four (4) more than 2015, five (5) new pickers in the public works area. A net of four (4) positions. Head count by type police and fire are each about a quarter of the total. We are proud of the Distinguished Budget Presentation by the City Award, being one (1) of only two (2) cities in the state of Indiana to receive such an award. We have an excellent AA bond rating. The state of Indiana has a AAA; we have the same bond rating as the city of Indianapolis. This is unemployment from 2011 from twelve percent (12%) down to about six percent (6%) based on national trends but also the hard work of our Community Investment Department. Private investment is significantly up through July 2015, already surpassing the other years 2012-2014. The overall city budget is $305,000,000, General Fund budget of $53,000,000 (balanced). We ask for favorable consideration of our 2016 budget. There are a number of appendage items, we emailed them to you, and we want to make sure you are aware of that. We have a budget recap, a summary of the data by type and activity, we also have the budgets for each fund, we also have a trend from 2008-2016 on revenue and expenditures. There’s a lot of really detailed stuff I kind of like that so maybe you’ll like that as well. With that I’d like to open it up for questions. Committee of the Whole Chairperson White- I’d like to start down the roll. 23 REGULAR MEETING September 28, 2015 Councilmember Oliver Davis- Do you have an answer to that question I asked regarding Sample St. and Olive? John Murphy, Controller (Presenter) - I think it is budgeted in Major Moves. Major Moves is a City fund. There has been some money in 2015-2016 for that. Councilmember Oliver Davis- Do you know how much that is costing? John Murphy, Controller (Presenter) - I don’t remember I will have to get back to you on that. Councilmember Oliver Davis- Can you send that to me in an email? Can you send me some details? Is that funding coming from the Ewing Project? I was told there was money coming from the Ewing fund that would match up with County funds because the County didn’t have enough money to do it. The City doesn’t do bridges, we’re going to do a joint thing. I want to see if this is money that the City put up years ago. This was money from my predecessor and it has been almost a decade since these monies have been held to the people there. Eric Horvath, Director of Public Works - We are going through the bid process. I will send you an email with an update, what we’ve spent to date and what our estimates are right now for Olive-Sample for the portion that is the two-bridge structures and the two approaches. We are doing some additional work on Olive with some other federal funds. For the three (3) designation numbers for the Jasnowski Overpass I will give you an update. Those monies were budgeted in 2014. It’s an eighty (80) – twenty (20) dollar local match that is split between the City and County. The money wasn’t moved from Ewing, the Ewing project was cancelled out of the federal system, that did make monies available in the MACOG allocation but it doesn’t necessarily make it move directly to another City project. It goes into a pot that everyone applies for. Councilmember Oliver Davis- It was told to us at a Rum Village meeting that the money would move to that project. Your predecessor actually outed those words that we would be moving the money to that project. That’s why I used that terminology, that’s the way the people look at it. I understand the legalities. We voted on this in 2014 and a certain portion of the work was supposed to be done in 2014, 2015. Is this a part of the 2016 budget at all? Or just in the current and previous budget? Eric Horvath (Public Works) - We do not currently have anything in the 2016 budget, except Olive from Sample to Tucker. The approach work to the bridge, right by the tracks on the South side. We have $118,000 for local match for federal dollars. Councilmember Oliver Davis- The piece of the 2016 budget is about $118,000 and the rest those monies for the Sample St. Bridge is monies we are already voted on the 2014 and 2015 years? Eric Horvath (Public Works) - What I will get is an estimate on the funds necessary to complete the project for our portion of the share. We won’t know until we go through the bidding process/ the state process because it’s a federal aid project, then they will come to the City and County with the amount necessary. Councilmember Oliver Davis- Will there still be monies available to do sidewalk repairs in 2016 or is that a one (1) time deal, where councilmembers themselves can designate like we did before? Eric Horvath (Public Works) - Yes. It is less money than 2015. That was a council allocation program. I think it was around 500 ft. of sidewalk. Councilmember Oliver Davis- That was in addition to what you were planning to do? We can start submitting once the budget is approved? Eric Horvath (Public Works) - We are just going to send out some forms that make it easier. Then we can figure out the allocations and any recommendations we have with that. 24 REGULAR MEETING September 28, 2015 Councilmember Oliver Davis- This year they were still saying call your councilmen, about the sidewalk after the allocation had already finished. I had to explain to the people that our allocation was already pre-established. It created a little issue. Can that be dealt with? When our allocations are done it becomes the role of the executive branch as it was in the first place. How can that be clarified this year so that it doesn’t happen the same way next year. Eric Horvath (Public Works)- I am not sure I fully understand the question. th Councilmember Davis- In the Sixth (6) District I submitted for Prairie Apartments. However, we called about the City sidewalk program they were not being told about the City sidewalk program they were being told to call their councilmember because the councilmember allocates money for their district. So I was wondering how they were calling me when they already knew we had allocated our monies. Especially during election season it became a political nightmare. In the future how can we clarify that we already allocated our sidewalks so the people don’t get confused and call their councilperson. Eric Horvath (Public Works) - I apologize, that shouldn’t happen. We had a deadline and after those deadlines that program is going to be closed for the year. The reimbursement is open and is still open. Time is running short on that, obviously the weather. That program worked very well. th There is an application in our office on the 13 floor. Councilmember Dr. Ferlic- Slide ten (10) you stated, “Who sees property taxes is city, town, school, TIFF, and county library etc.,” TIF gets $71 million, cities and towns get $104 Million does that mean the TIF’s get a disproportionate amount of the property taxes? We are forty percent (40%) TIF in South Bend, forty percent (40%) TIF in Mishawaka, right? John Murphy (Controller) - I’m not sure about Mishawaka. These are the numbers for St. Joseph County as a whole, all the unit so you can evaluate that as you see. Councilmember Dr. Ferlic- It looks like it gets a disproportionate amount. Follow-up with it. It’s kind of an interesting phenomenon. John Murphy (Controller) - It is on the Indiana Gateway public access portal so I would encourage any citizen to go on there and take a look. There is a just a ton of budget information. Councilmember Dr. Ferlic- Slide sixteen (16) you had budget expenditures by type and you had payment in lieu of taxes $5.7 Million at two percent (2%). What is that? John Murphy (Controller) - That is payments for our utilities to ourselves. It’s not the other type of payment in lieu of taxes you may be familiar with as far as a non-profit. Councilmember Dr. Ferlic- Is the Mayor still here? John Murphy (Controller) - He’s upstairs. Councilmember Dr. Ferlic- There is an interesting phenomenon. The Governor of Maine has proposed non-profit pay fifty percent (50%) of their assessed value of their property. Payment in lieu of taxes, kind of interesting. Councilmember Schey- You provided a projected property tax revenue with a spike in 2019 and then it goes back down again, why? John Murphy- This is a projection we had a consultant do for us. With property taxes you have Levy-Rolls quotient it’s supposed to provide a cost of living increase each year, it will occur in the next three (3) to four (4) years. This is based off of assumptions they made based on tax raises, other municipalities in the area, net assessed value and so forth. They will benefit from Levy growth quotient increases in the next couple years. We would be happy with that part of the chart. Councilmember Schey- These are just estimates and obviously the future is always an estimate. 25 REGULAR MEETING September 28, 2015 John Murphy Controller- It’s an estimate and we try to be very conservative with our estimates with our estimating of property taxes. My view is until you have it in the bank you do not have it. Councilmember Dr. Ferlic- Don’t the special exemptions we and Lake County have expire? John Murphy (Controller) - They are expiring in 2020. Councilmember Ferlic- That’s the reason you have the decrease right there. We’re going to get hammered at that time. Councilmember Henry Davis Jr. - Public Works Director Eric, you talked about two (2) or three (3) projects that you got federal funding for. Can you talk about dollar amounts? Eric Horvath (Public Works) - I can send you that. I don’t know them off the top of my head. The money for Olive Street is essentially SR 23 N so it ties into this project that we’re doing already. That was a $118,000 for the local match. I will send you the federal dollars on all of that. Boland Trails Run, Bendix Drive, federal dollars for Safe Route to School includes: Lincoln, Pearly, Coquillard, and Harrison schools. We have a number of projects that do have federal dollars involved. Councilmember Henry Davis Jr. - It sounds extensive and it sound good. I appreciate your work in locating those dollars to help improve our infrastructure. My question is because they are federal dollars they come with federal mandates for who works on the projects. Who will be enforcing those laws? Making sure that federal law itself is being applied to those dollars. So, that people here locally are getting those jobs. This is one of our solutions to crime in the City of South Bend. It may not be a silver bullet but it may help people unemployed looking for work. Eric Horvath (Public Works) - Those federal aid projects and all the ones that I mentioned are all through the Department of Transportation. They will actually be bid through the Department of Transportation. The plan and specs are developed, and then bids will be accepted and the state will run the project. Included in those plans and specs will be requirements for days vacant, wage rates, I don’t know of any local requirements, there are buy American requirements, there are other requirements. Councilmember Henry Davis Jr. - My issues are always census tract data that applies to federal grants or federal dollars. In those census tracts, guidelines for people who are under the poverty rate or the household median income or whatever the guidelines are and you’re getting those people to work on those specific projects. There are training dollar components along with those projects. I am looking for the fullness of those projects to be unveiled for the citizens of South Bend. Not that we are just doing it and we’re done with it. The training component is a hell of a way to start getting people employable. The other dollars go toward a percentage of the community, race and sex being applied to as well to make sure people are getting an opportunity to work. I said something about the project at Martin’s. I mean no harm about this I am looking at the numbers for the City of South Bend. At who is employed and who employed and who’s employed at what dollar amount. It becomes more and more apparent that people of color minority classification have not been able to get jobs that are mortgage paying jobs and sustain them as well. As it relates to City contract and working for the City as well. Here is a prime example and opportunity to make sure those things are being applied for the betterment of the City. I don’t think the request is too much to ask for, it’s by law, and I would love to see them happen. Crime is up because there are a lot of people who are not working. The drug trade is high because people find more work in selling drugs then working for a dollar that is more honest. And please Sir, along with the training dollars. I think Murray Miller has been very good at trying to bring folks into the trade. I am not sure is that is a cooperative program between the City and labor union. But I think there is a fair opportunity and a fair chance to make that thing happen. 26 REGULAR MEETING September 28, 2015 Eric Horvath (Public Works) - There may be other training federal dollars that we have access to in different departments. In terms of these infrastructure projects there will be a percent goal for MBE, WBE participation on all projects. There will be a requirement that they have to meet, they make a good faith effort to reach that goal. That is pretty specifically defined in the specifications. Those numbers are based on disparities studies that the state does. Those requirements will be in all these federal projects. Councilmember Henry Davis- I am he said disparities study. When we started the budget process I asked how the City got into a conversation about putting together a disparity study. Apparently the state has one. I have asked for that disparity, given the numbers, crime, unemployment rate, homelessness, etc., how do we do the job for citizens if we don’t know where our baseline is at? Has that been a part of the discussion within the ranks of the Administration? Getting a disparity study or paying for one? John Murphy (Controller)- I haven’t been a part of that, no. Councilmember Henry Davis- it’ll behoove us to not to have that conversation. I am going to continue to go back at that and drive that point home. People may be wanting to believe we are getting better but the problem is we may or could be getting better, we don’t know exactly where we are at. Since we do know where we are at. How do we know where we are going? We had a long discussion about a new diversity officer, the job the person is supposed to be doing. How does that person know where to step off at? I am going to ask that your department talk about funding a disparity study for the City of South Bend. You went into the macro approach of the budget and I want to go into some micro stuff real quick. The gang violence invention group how much does that particular program receive from the city? John Murphy (Controller) - I don’t think it’s very much funding. I think it’s mostly non-City funds that fund that. Councilmember Henry Davis Jr. - Still how much are they receiving? John Murphy (Controller) - I don’t know. I will get back to you on that. Councilmember Henry Davis Jr. - What I want to do is match that up to a program that we talked about last week. I don’t know if you were around. Mademen at the King Center. They were using that as one their key performance indicator of the year. I just want to match those two (2) things up really quick. I want to talk about preventative issue as well as how do we react. If we are going to have things in place that are going to stop the growth of the violence and nefarious activities within our communities and neighborhoods. John Murphy- Phil Sinclair updated the Council on the Mademen program last week. Committee of the Whole Chairperson White- We will now move into the Public Hearing portion. We would like to say that today this meeting is very unusual. We have so many budget related issues we had to get through. Normally we are not here this late but sometime we are. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. In favor: Jason Banicki-Critchlow 3822 W. Ford St.- In addressing one of the issues that was raised by you gentlemen earlier tonight particularly Henry and Oliver. In terms of the diversity inclusion officer. Just to make you guys aware in 2012 the New Haven Fire Department lost a 2.5 million dollar reserve discrimination lawsuit to a hand full of white fire fighters who were passed over for promotions because of the way test results were handled. In terms of making sure they were promoting the right number of minority officers. So in terms of things like that we definitely have to keep our eyes open. As we talk about the circuit breaker expiring in 2020, Dr. Ferlic makes a very good point that we need to be keeping our eye on the budget going forward and how do we prepare for that windfall. We have to stop looking at one (1) year budget plans and 27 REGULAR MEETING September 28, 2015 th we are getting ready to talk on the 12 about trash rates going up. Instead of waiting five (5) years to say we need nine percent (9%) this year, how do we say we need two percent (2%) every year. We are in an era where we know city budgets are getting tight. We are having to make infrastructure improvement we wouldn’t normally have to if we ready to ten (10) years ago. We’ve kind of punted the ball a long time. We need to be planning on going forward. We are going to have to start looking to make some tough decisions going forward in some very critical areas. When talking about the diversity inclusion officer in terms of public safety. Police officers make a very competitive first year wage as we start to promote them up the ranks we're are not as competitive as cities our size. If we want to attract quality officers whether white or Hispanic or African-American we have to make sure we take care of those who put their lives on the line for us. It has to be reflected in the pay structure. Where we are at in terms of the 2016 budget yes absolutely, we are trying to hit key demographics, which is better than I can say five (5) or ten (10) years ago in this city. There are issues we’re getting that wouldn’t have five (5) to ten (10) years ago. I applaud the effort to include more people. Keep asking the tough questions not only where are we going in 2016 but where are we going in 2017, 2018 and keep that eye on 2020. Where we really know we are going to have some financial difficulties. And making sure we take care of those who take care of us. Committee of the Whole Chairperson White- Is there anyone wishing to speak in opposition seeing no one the public hearing is now closed. Council Attorney advised the appropriate motion would be individual motions for each of the bills: Councilmember Oliver Davis made a motion send the Bill 41-15 to be continued in the council portion and set the third reading for October 12th. Councilmember Gavin Ferlic seconded the motion which carried by a voice vote of seven (7) ayes. Councilmember Scott made a motion send the Bill 42-15 to be continued to the Council portion and set the third reading for October 12th. Councilmember Dr. Ferlic seconded the motion which carried by a voice vote of seven (7) ayes. Councilmember Scott made a motion to send the Bill 43-15 to be continued to the Council portion and set the third reading for October 12. Councilmember Oliver Davis seconded the motion which carried by a voice vote of seven (7) ayes. nd 2 Reading on Bill 51-15 Personnel and Finance Committee held a committee meeting on this bill. There was not a quorum so we send this bill to the Council without a recommendation. John Murphy (Controller) (Presenter) - Had a policy to amend our budgets frequently throughout the year. This year we are doing it in March, June, September, and December. This appropriates money in civil city funds and many of them are very small and we like to clean it up and make sure we don’t wait until the end of the year. We discussed these at committee and look forward to your favorable recommendation. Committee of the Whole Chairperson White- Asked for questions from the Council for questions seeing none. Committee of the Whole Chairperson White- Is there anyone wishing to speak in favor of or in opposition to, seeing no one the public hearing is now closed. Councilmember Dr. Ferlic made a motion to send Bill 51-15 to the Council with a favorable recommendation. Councilmember Gavin Ferlic seconded the motion which carried by a voice vote of seven (7) ayes. nd 2 Reading on Bill 52-15 Personnel and Finance Committee held a committee meeting on this bill. There was not a quorum so we send this bill to the council without a recommendation. 28 REGULAR MEETING September 28, 2015 John Murphy (Controller) (Presenter) - The only large one on here is a deduction of 1.5 million dollars. Offset by an increase of 2.5 million dollars for a waste water secondary improvement project that is being paid for with a combination of bond funds which are already appropriated plus this pay as you go capital fund, we’ve reviewed the refund balances in there. We feel we can do some pay as you go capital without having to bond so that’s what we are proposing to do with this capital project. Committee of the Whole Chairperson White- Asked for questions from the Council for questions seeing none. Committee of the Whole Chairperson White- Is there anyone wishing to speak in favor or in opposition seeing no one the Public Hearing is now closed. Councilmember Dr. Ferlic made a motion to send the Bill 53-15 to the Council with a favorable recommendation. Councilmember Gavin Ferlic seconded the motion which carried by a voice vote of seven (7) ayes. nd 2 Reading on Bill 53-15 Councilmember White Chairperson, Personnel and Finance Committee, reported that they met this afternoon on this bill and due to a lack of quorum there is no recommendation. John Murphy (Controller) (Presenter) - These are budget transfers from one type of account to another. It’s a requirement in Indiana that the Common Council approve these types of transfers. For example you might transfer from a services account to a supply account. That would require council approval. That’s what these are there is no additional appropriations in these budget transfers. Committee of the Whole Chairperson White- Asked for questions from the Council for questions seeing none. Committee of the Whole Chairperson White- Is there anyone wishing to speak in favor seeing no one In opposition- Jesse Davis PO Box 10205 South Bend, IN- I just want him to clarify. I had found a line item budget on here for a $158,000 for salt and winter materials. I would have already thought that was in the budget that you had figured out. I want to know is that additional money they are wanting for salt for this coming winter? Eric Horvath- That is additional monies to buy salt this winter. So we have a stocked shed of salt this winter. It usually goes over budget cycles and sometime it’s difficult to guess how much we are going to need. We do the best we can on budgeting. We take an average of the previous years. If we have a bad year, it is usually due to salt prices and the amount of salt you use. In the previous year not only did we use a lot of salt but the salt prices continued to go up. We recently rebid salt. We’ve got a price much more expensive than what we were buying it for but less than the state QPA. It’s about as good of a price as we are going to get. This one-hundred and fifty- eight dollars ($158) will be to buy salt for this coming winter. Councilmember Oliver Davis- Do you ever use our local weather forecaster to help you anticipate what type of winter we are having? I do value their expertise. Do you use them to forecast when it comes down to snow and salt? Eric Horvath- We haven’t because there is so much variability and they’re going to be predicting from a larger picture. There’s a lot of factors that we’re going to have in play. One is it could be anteceding conditions, it could be the temperature at the particular time, it could be how many small events do we get, do we have continue to put product down for, or is it just one really large event. All those things factor into how we spread salt. We have a snow removal policy that we follow and it’s pretty prescriptive so at certain temperatures we apply certain materials and at 29 REGULAR MEETING September 28, 2015 other temperatures we apply other materials. It’s more involved than what we could get from them; I wish we could get something from them. Then we could get predictive analysis. I haven’t seen anything that would be able to do that. Committee of the Whole Chairperson White- the public hearing is now closed. Councilmember Dr. Ferlic made a motion send the Bill 53-15 to the Council with a favorable recommendation. Councilmember Scott seconded the motion which carried by a voice vote of seven (7) ayes. Second Reading on Bill 46-15 Councilmember White Chairperson, Personnel and Finance Committee, reported that they met this afternoon on Bill 46-15 and due to a lack of quorum there is no recommendation. John Murphy Controller (Presenter) - This ordinance sets up a new fund for the 311 operation. It is an internal service fund. We appreciate the work of the Council Attorney who knows the municipal code better than I do. We set it up for next year. It’s budgeted with an internal fund next year. It provides more transparency and it is just a better accounting fund being used. It doesn’t change operational anything. Committee of the Whole Chairperson White- Asked for questions from the Council seeing none. Committee of the Whole Chairperson White- Is there any wishing to speak in favor or in opposition seeing no one the Public Hearing is now closed. Councilmember Dr. Ferlic made a motion send the Bill 53-15 to the council with a favorable recommendation. Councilmember Oliver Davis seconded the motion which carried by a voice vote of seven (7) ayes. RISE AND REPORT Councilmember White requested a motion to rise and report to full Council. So moved by Councilmember Oliver Davis. Councilmember Gavin Ferlic seconded the motion which carried by a voice vote of seven (7) ayes. ATTEST: ATTEST: ____________________________ ____________________________ John Voorde, City Clerk Karen L. White, Chairperson Committee of the Whole REGULAR MEETING RECONVENED Be it remembered that the Common Council of the City of South Bend reconvened in the Council Chambers on the fourth floor of the County-City Building at 10:03 p.m. Council President Tim Scott, presided with seven (7) members present. BILLS - THIRD READING 51-15 Appropriation Bill Councilmember White made a motion for the passage of Bill 51-15. Councilmember Oliver Davis seconded the motion which carried and the Resolution was passed by a roll call vote of seven (7) ayes. 30 REGULAR MEETING September 28, 2015 52-15 Appropriation Bill Councilmember Gavin Ferlic made a motion for the passage of Bill 51-15. Councilmember Oliver Davis seconded the motion which carried and the Resolution was passed by a roll call vote of six (6) ayes and one (1) nay Councilmember Henry Davis Jr. 53-15 Appropriation Bill Councilmember White made a motion for the passage of Bill 51-15. Councilmember Oliver Davis seconded the motion which carried and the Resolution was passed by a roll call vote of seven (7) ayes. 46-15 Establishing a new 311 call center Councilmember Oliver Davis made a motion to amend an article of the municipal code as stated in Bill 46-15. Councilmember White seconded the motion which carried by a voice vote of seven (7) ayes. Councilmember White made a motion for the passage of Bill 46-15 as amended in the committee in the whole. Councilmember Oliver Davis seconded the motion which carried and the Resolution was passed by a roll call vote of seven (7) ayes. RESOLUTIONS Council President Tim Scott- On behalf of the clerks and legal I would entertain a motion for a five (5) minute break. Councilmember Oliver Davis made a motion for a five (5) minute break. Councilmember Henry Davis Jr. seconded the motion which carried and the motion was carried by a voice vote of seven (7) ayes. Be it remembered that the Common Council of the City of South Bend reconvened in the Council Chambers on the fourth floor of the County-City Building at 10:12 p.m. Council President Tim Scott, presided with seven (7) members present. 15-85 A written annexation Township Mayflower and Western Martin’s Councilmember Oliver Davis Chairperson, Zoning and Annexation Committee, reported that they met this afternoon on this resolution and due to a lack of quorum there is no recommendation. th Michael Divita, Presenter Community Investment: Offices on 14 Floor- The fiscal plan addresses a nearly nine (9) acre voluntary annexation area at the South West corner of Mayflower Rd. A new grocery store is proposed for the land. With the possible exception of a new street light no other capital improvements are planned by the City. Sewer is available on the vacated Huron St. Water is available along Western Ave. Connection would be done at the petitioner’s expense. The western half of Mayflower Rd road along the project site will be added to the city. The petitioner will be responsible for creating a traffic impact study. The annexation area will be served by Police Beat 28, Fire Station 6 on Western Ave, Emergency Medic 4, and 31 REGULAR MEETING September 28, 2015 Code Enforcement Area 7. These will be begin one year after the effective date of the annexation with response time comparable to other response times in the City. I ask for your adoption of this resolution. Council President Scott- Asked for questions from the Council for questions seeing none. Michael Danch of Danch & (Petitioner) - We are asking for the annexation so that we are allowed to move on with our project. Council President Scott- Is there anyone wishing to speak in favor? Jason Banicki-Critchlow 3822 W Ford St.- This will be a two (2) minute drive from my house. There are two (2) dated grocery stores in the area. I am very excited for the development of a new one. I think annexing property and adding some tax base to the City is a good idea. I know we are getting that nimbi attitude from the neighbors, unfortunately development always has to be in somebody’s back yard. I think Martin’s has proved to be a good neighbor wherever they went in the City. Think this would an excellent project moving forward. In opposition seeing no one the Public Hearing is now closed. Councilmember Oliver Davis made a motion to adopt Resolution 15-85. Councilmember White seconded the motion which carried and the Resolution was adopted by a roll call vote of six (6) ayes and one (1) nay, Councilmember Henry Davis Jr. 15-86 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 511 Delaine Dr. , SOUTH BEND, INDIANA 46628 AS A RESIDENTIALLY AN ECONOMOC REVITIALIZATION AREA FOR PURPOSES OF A (5) FIVE-YEAR PERSONAL PROPERTY TAX ABATEMENT FOR FED GROUND SYSTEM th Presenter: Chris Fielder, Department of Community Investment, Offices on the 14 floor – Before you is a residential real property tax abatement request. The total number of jobs to be created is 198 jobs. Total investment in the project is $31,000,000. The estimated taxes to be abated over the five (5) year period are $592,944. The total taxes to be paid over the five (5) year period are $693,000. Aaron is here from FedEx to discuss, if you have any questions he will answer them. Petitioner: Aaron, 5102 S. Dylan Dr., South Bend – This is a big opportunity for FedEx we’ve out grown our build right now. We are putting this building for future expansion well beyond what we are going to need right now. Our plan with FedEx is to double our ground network. This is a great opportunity for us to be an asset to the community. Councilmember Henry Davis Jr.- Out of the one-hundred and ninety-eight (198) jobs that will be created how many of them are already filled? Petitioner- States, One-hundred and twenty-seven (127) of them. Councilmember Henry Davis Jr. - There will be sixty (60) some new job. Petitioner- Immediately yes and then there will be some growth in the next five (5) to ten (10) years. Councilmember Henry Davis Jr. - The next five (5) to ten (10) years at what level? Petitioner- Total we are looking at two-hundred and seventy (270). 32 REGULAR MEETING September 28, 2015 Councilmember Henry Davis Jr. - I don’t have a problem with using this tax abatement to attract companies. My problem is not with you Sir. The City Department in the narrative of bringing in two-hundred (200) jobs, when in fact you are only bringing in sixty (60) plus jobs that are going to be available. The report reads two-hundred (200) jobs. That’s a bit different than sixty-eight (68) to sixty-nine (69) jobs. I want to for the record have a better understanding of how many jobs there are going to be available once this is complete. You have my full support. Presenter- These are jobs they project out over the life of the abatement. It’s not a singular look it’s a long term look. Councilmember Henry Davis Jr. - I am aware of that and I have a problem with the way we do abatements as well Sir. I don’t want to have that conversation right now. I think the abatement process and how we look at those numbers are a bit skewed over the life of the abatement. That’s a whole other conversation. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. (Councilmember Dr. Fred Ferlic returned) There being no one present wishing to speak to the Council either in favor of or in opposition to this bill, Councilmember Dr. Ferlic made a motion to adopt Resolution 15-70. Councilmember Oliver Davis seconded the motion which carried and the Resolution was adopted by a roll call vote of seven (7) ayes. 15-87 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 802 S. VICENT ST, SOUTH BEND, IN 46617 AS ARESIDENTIALLY DISTRESSED AREA FOR PURPOSES OF A FIVE (5) YEAR REAL PROPERTY TAX ABATEMENT FOR JAMES AND SUSAN FAIRINGTON. th Presenter: Brock Zeeb, Department of Community Investment, Offices on the 14 floor –They propose to build a $525,000 new house with total taxes to be created over the five (5) year period of $27,798. Estimated taxes to be abated over the five (5) year period will be $18,093. Total taxes to be paid over the five (5) year period is $25,905. The petitioner is here to speak on the project if you have any questions. Petitioner: David Serazski Century Builders 1115 Burns Ave. – I represent the petitioner who built a new single family home we are going to tear down a vacant house and build a brand new one. In an area we have been redeveloping over the last five (5) years. This is a tax abatement we have asked for in the past and have been granted on other properties. Councilmember Dr. Ferlic – How much is the demolition? Presenter- It is five-hundred and twenty-five dollars ($525.00) Councilmember Dr. Ferlic- Good. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. There being no one present wishing to speak to the Council either in favor of or in opposition to this bill, Councilmember Oliver Davis made a motion to adopt Resolution 15-87. Councilmember Karen White seconded the motion which carried and the Resolution was adopted by a roll call vote of seven (7) ayes. 15-88 A RESOLUTION RESCENDING RESOLUTION 43-52-14 43-61-14 DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 211 W WASHINGTON ST. 33 REGULAR MEETING September 28, 2015 SOUTH BEND IN 46601 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FOUR (4) YEAR REAL PROPERTY TAX ABATEMENT Councilmember Gavin Ferlic, Chairperson, Community Investment Committee met this afternoon and did not have a quorum and the resolution was sent with no recommendation. th Presenter: Chris Fielding, Department of Community Investment, Offices on the 14 floor – The current owner of the building is proposing a much more extensive project. As redevelopment as opposed to a repair of the structure of the building. Therefore we are requesting a recession of the initial tax abatement 43-52-14, 43-61-14 in hopes they will be replaced with a more extensive tax abatement which are in the next three resolutions. Councilmember Oliver Davis- Just for clarification what is the difference in dollar value. Presenter: The initial tax abatement was approximately 5.8 million dollars to repair the elevators, chiller, heating, and air conditioning system, parking garage and windows. The next will be a 30 million dollar renovation to the entire building. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. Leanne Billousa Century Center 120 S. St. Joseph St. - I know ya’ll have our letter of support for this but I just wanted to say it vocally that we could not be more excited at Century Center about this. There is great potential for convention business as well as the overall economic impact it’s going to have on the entire community. Samuel Brown CUBG 222 E Navarre St. – I feel very positive about this. Then another part of me kind of worries about it. Are we going to do like we did with the Hall of Fame? I hope this goes through and really does what it is intended to do for the City of South Bend. It is one of the most valuable pieces of real estate we have in South Bend. In the back of my mind I keep thinking about that hall of fame but I hope it goes through. Robert Bartels (Martin’s), 760 Cotter St. – To see the enormity of this project take off. I just refer you to your own screen saver. It would be nice to see some lights on in that building. To see the momentum and economic development that this represents this is fantastic. Council President Scott- In opposition to this bill, seeing none. Councilmember Oliver Davis made a motion to adopt Resolution 15-88. Councilmember Gavin Ferlic seconded the motion which carried and the Resolution was adopted by a roll call vote of seven (7) ayes. Councilmember White made a motion for the purpose of Public Hearing to hear Resolution 15-89, 15-90, 15-91. Councilmember Dr. Ferlic seconded the motion which carried and the motion was adopted by a voice vote of seven (7) ayes. 15-89 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING A CERTAIN AREA WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 211 W WASHINGTON ST. SOUTH BEND IN 46601 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A TEN (10) YEAR REAL PROPERTY TAX ABATEMENT FOR A HOTEL LOCATED AT THE TOWER AT WASHINGTON SQUARE 15-90 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING A CERTAIN AREA WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 211 W 34 REGULAR MEETING September 28, 2015 WASHINGTON ST. SOUTH BEND IN 46601 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A TEN (10) YEAR REAL PROPERTY TAX ABATEMENT FOR A RETAIL PROPERTY LOCATED AT THE TOWER AT WASHINGTON SQUARE 15-91 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING A CERTAIN AREA WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 211 W WASHINGTON ST. SOUTH BEND IN 46601 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A TEN (10) YEAR REAL PROPERTY TAX ABATEMENT FOR A PARKING GARAGE LOCATED AT THE TOWER AT WASHINGTON SQUARE Councilmember Gavin Ferlic, Chairperson, Community Investment Committee met this afternoon and did not have a quorum and the Resolutions 15-89, 15-90, 15-91 were sent with no recommendation. th Presenter: Chris Fielding, Department of Community Investment, Offices on the 14 floor – Before you represent three (3) of four (4) potential tax abatements negotiated on the project. The building is going to be subdivided into four marketable sections: the resident, the hotel, the parking garage, and the commercial space. The subplot process has already begun. The curb tax can never be applied to the hotel section of the building between now and the confirming resolution which may be sixty (60) to seventy (70) days. They will finish the replot of the entire structure in the next seven (7) days. At the point prior to the confirming resolution we made sure we have tax code numbers for all four parcels. We will be coming to the next meeting, we have a UUC Resolution to create residential property in the downtown area. That meeting has been scheduled. We do not anticipate any problems. The total project will create eighty-two (82) new jobs, sixty-three (63) in the hotel, twenty (20) in the retail space, and one (1) as park garage attendant with an annual payroll of 2.7 million dollars. We do have multiple exceptions to the local code. On the hotel tax key we are requesting ten (10) year vacant building tax abatement with a modified schedule. Under state code 6-1.1-12.1 modified in July 2015 to allow the Council up to ten (10) years at any schedule agreed upon at the local level. That schedule is a 100% for the first two (2) years while they are in construction and ramp up ninety percent (90%) rd for the 3 year, then eighty-five (85%) for the next three (3) years, and sixty percent (60%) for the last three (3) years. That will be the same schedule applied to the standard abatements that will not exceed ten (10) years either, for residential, commercial, and parking garage. We are also proposing in the MOA 36 months instead of the standard 24 months we typically allow for a project to be completed due to the scope of the project. We expect a return on this within the next 60 days. At that time we will have formal tax due numbers. The proposed investment in the property is approximately $33.3 million dollars, total public investment with the abatements which will have a direct correlation to the amount of money they put into the building. The petitioner is here from the Kramer Group to answer any questions about the new construction that you may have. Petitioner: Robert Kramer, Kramer Design Group 1420 Broadway Detroit, MI– I am here representing the ownership on this property. Kramer Design Group is a firm of architects and nature designers planners. The bulk of our work is adaptive reuse. We recently completed a project of similar scope in downtown Detroit in a loft hotel with luxury houses above with mixed use retail on the ground floor. It did not have a parking component. It opened approximately a year ago to date with great success. Apartments 100% leased and the hotels have been doing well since day one (1). It is typical for our firm to be involved in these mixed-use projects. We do a lot of hotel work nationally as well as residential. We were first awarded this project when it was just the hotel component about six (6) months ago. We observed the parking garage deck was in severe disrepair: two structural issues where the salts ate away at the concrete and supporting steel. A big change in direction there, very quickly we discovered the majority of the facility had reached its useful life. Subsequently our firm has been involved in comprehensive planning exercises for the entire facility. This is a daylight view of key interest when we were studying the property and trying to understand where to put in entrances to the facility we became aware through the excellent work of the City of the streetscapes program, the two-way 35 REGULAR MEETING September 28, 2015 street program, and it really ties into what our experience has shown that these two-way streets in an urban project really enliven the downtown of urban area. The planning exercise and this client was very interested in sort of enlivening streets. We are taking away the old drive-thru so on the far left hand is some expanded retail. The center with the canopy is actually the residential entrance. It’s a dedicated lobby. In the two corners is a signature retail or signature restaurant. The client is envisioning a larger sort of destination restaurant. Many of you remember that the facility used to have a restaurant in it in the lower level. We are preserving that entire lower level for this type of restaurant use. There are great assets there is a bank valet down there, you can imagine great private dining area. On the far right hand side is the entrance to the hotel. A Loft as a brand because it is part of the Starwood family of brands, the A Loft is the midlevel of a full service “W” Westin. It targets a wider range of clientele, from a young up and coming professional to sort of people who go by their own beat. On the far right side you will see it drop off and the signature swoop. We are removing the bulk or sort of the weight of the building. Those large concrete block panels that are somewhat deadening to the eye sight. Making it a little more alive with color and texture, opening up the garage. In the upper left corner you will see the brand new windows. Those are actually the expanded ballrooms that are currently on that floor. To take advantage of views that currently have no views to overlook the city. This next view is of an overall view of the property, the renovation is top to bottom and we have to replace the windows. To give you a sense of why there was a longer duration, it’s simply the physical time it takes to renovate the space. The goal is still to be completed in 2017 it’s just trying to protect from unknowns. As we are diving into this building more and more things have been discovered as problems. At this point, we have recommended and the client has taken the advice and began some early phases of construction. No construction has begun but the plan is to begin demolition abatement very shortly. A permit has been granted and also we are doing a window replacement. To give you a sense of the value the window replacement is a 2.4 million dollar project in itself. The demolition abatement in itself is 1.4million and that is just simply removing the stuff that’s in there. Our firm is completing the complete construction document. There is a separate local firm who is involved as structural engineers, structural rehabilitation of the parking structure and will be working with us on the rest of the facility. Currently the project is planned with eighty- six (86) residential units the top third of the property. The balance of the tower is one-hundred and eighty-three (183) hotel rooms, effectively what was there at one point. The top floor of the parking deck area is actually ball rooms, a pool, and such. The top of the parking deck, the roof level is going to be a great community space for the residents including a dog walking area. The next two views are sort of evening views. It is really important to us to design both the day time and the evening. The key to revitalization of a downtown is making it feel safe, being safe, making it feel signature and upbeat. We took a lot of effort to try and not create something that was obtuse. Certainly this building by itself is much taller than anything around but we wanted to highlight its features through clever lighting and bring some excitement. The final view is a street level view at night. You can see the light and space that make it unique. Every single wall of dry wall in the tower is being moved down to its core structure. From an energy efficiency perspective we are replacing every single light fixture, the phone systems are being replaced. The mechanic system is a 100% replacement. We are pretty excited about the whole thing. Councilmember Oliver Davis- I talked to you about the issues, about completing the hotel and apartments at the same time could you share about that? Talk about the synergy between your hotel and the double tree. Is there anything you are doing to make the place more energy efficient? Petitioner- The A Loft is what you call a midservice hotel. The Doubletree by definition is a full service hotel. The most significant difference is the restaurants and ballroom space. We have very limited ballroom space probably seats one-hundred and fifty (150) versus true conference center space. From a competitive standpoint its closest competitor are the two new buildings that you see when you come off the highway. That is what we consider the normal market. From a hotel perspective often times the demographic you look at is major brands the Hilton brand or the Starwood brand. Each have their frequent flyer return guest program. Those drive a lot of the 36 REGULAR MEETING September 28, 2015 business traffic. They actually don’t compete against each other. What we found is talking with the convention center they wanted this type of property in their set. It is mid-priced in relative terms. We don’t actually believe that it will take away but actually support each other. What typically happens is if the double tree is full that type of property will send guest to this and vice versa. To question about LEED or environment friendliness the property is not seeking LEED certification. LEED certification for a remodel is a challenging thing as logical as you might think that it is. From an energy perspective we are doing tremendous things. The lighting will be LED. It’s going to be an open air garage, natural ventilation versus the fans. The lighting is just superior in that sense. The heating and cooling system for the whole building will be a closed loop heat pump system. It’s essentially the most efficient that we have other than if we had outsourced thermal. A Loft as a company and the products they require are all of a green nature. The residential from our firm perspective will be in a similar state. In our terms it would certainly quality for LEED certification or higher, at least silver by default. The plan of attack at this point is that the garage would be the immediate start because we have some structural issues, as well as releasing the windows so we can do the windows. The windows are going to take the better part of a year to replace. The lead time on glass in the national market is a long time. The elevator contract would be let as well. The elevator lead time is about 16 weeks, that on approval of shop drawing so you add another 4 months on to that. The goal is have all those in place so that when we are doing the heavy construction there is a place for workers to park, there is a way to go up and down the building and it’s water tight. The intent is that the entire tower is being worked on simultaneously. Every similar system and such. It would come online all at once. We know the developer would like to have the hotel first if they had to choose one or the other. They don’t compete against each other. There are separate lobbies, entrances so it works out really well. The last thing to be filled up is the retail on the ground floor. A lot of people will want to see the project first before they would undertake being in the building. It’s all planned so one project can be done without interfering with the other. There are separate elevators and the works. Councilmember Oliver Davis- In the cellar since they have a kitchen down there will it be available for rent for food trucks? Petitioner: One of the benefits of the building was it had two commercial grade kitchens one on the top and one on the bottom and we said let’s not do anything to demolish them. It’s actually a full service catering kitchen. We are protecting it for future development whatever that might be. We certainly don’t know. I am a personal fan of food trucks and in Detroit we know they are a part of the living culture. Mark Neal, Bradley Company- The owner is interested in keeping all options open including food and restaurants. He does notice that there are tremendous opportunities because of all the infrastructure. Councilmember Henry Davis Jr. – Thank you for the investment I am looking forward to seeing it. It looks like a beautiful building. This has been a long time coming. My questions are for Mr. Gilling. I am interested in finding out the demographic report on this particular project as it relates to all the other projects in the downtown area. I am interested in seeing how these projects will bring people downtown. Where are they coming from are they working or retired folk? Who are we marketing these new livable spaces to? There has to be a trend me and my colleagues are not aware of. There is something that we are pushing at and I don’t know what the timeline of that full plan is. Can you provide us with that report that says what that is? Downtown South Bend 2020 all the apartments are filled most people are working in Red Sox district. th Chris Fielding Presenter, Offices on the 14 FL- We have the Zimmerman- Bolt Study I can send out to everybody. Anecdotally you keep seeing us bring residential, this is actually a diversity hub, if you look at the Hoffman Hotel building we did a tax abatement for that is actually the artist level population, it’s a low-income housing project but it’s dedicated specifically to artists. The JMS and the LaSalle we will be the closest to the people who are 37 REGULAR MEETING September 28, 2015 attracted to downtown now you will likely see graduate students and people who work downtown. This project here is more of the A+ the empty nester who really wants to live in an urban setting. Has second home somewhere else. This the higher end of the four projects we’ve seen. We are hoping they create four different housing situations so they are not just competing for the same population. As Notre Dame demolishes their graduate student housing with no plan to replace it you will start see a new population and more mature population gravitating towards the downtown. Many will have internship opportunities ignition park and these opportunities will be in-between their work life and their school life. Councilmember Henry Davis Jr. - There are some projections that are there that we are not being connected with. I think what I was saying earlier this is a piece, if I remember about this from four (4) months ago maybe I can connect them. We have the ability to connect all the dots so we know where we are going. Yeah, we are voting on this project it looks nice but my first question is where are they coming from and where are they going to be working. How do people from South Bend who have a median house household income of $36,000, with fifty percent (50%) poverty rate, who rents that from South Bend? How do I figure this out? That report will be very valuable to have and also to read because we are kind of like feeling our way through this. Somehow someway you guys are able to bring these projects. th Chris Fielding Presenter, Offices on the 14 Fl. - I will send the link out to everybody. We also did put it in the budget. Councilmember Henry Davis Jr. - Thank you I think that was the question. We just got that information today. The other question I have Sir is I am looking at this tax abatement right here, 15-91. On this one it says provide training, this has everything to do with the construction, it says yes twenty-eight (28) points, then on number three (#3) it says workforce related letter C, maintain an affirmative action plan yes, thirty-five (35) for thirty-five (35) points. Then I got over to part where it says please list the number of full-time and part-time female, minority for each of the last three (3) years and that area is blank. My question is how do we make sure that the folks that are here that need the positions and jobs and job training are actually getting that attention. This is a long project how do we make sure that money is staying in South Bend? On the demolition projects the money was leaving out of here both ways. How can we begin to maintain the jobs so the money stays here? th Chris Fielding Presenter, Offices on the 14 Fl. - In this situation I think we’ve been very proactive. The easiest one word answer to that is it’s going to require partnership. It’s going to require partnership and it’s going to require all of you to be a part of that partnership. You approved funding for the manufactures training program last year. Knowing that these projects were coming online and other projects that we will probably be bringing forward to you in the next three (3) to five (5) weeks. We’ve actually modified that through the Department of Public Works. What we are seeing is a lot of individuals that we were recruiting were interested in going in to manufacturing. Now we do hospitality training at IUSB and medical training through IVY Tech and manufacturing program through Purdue. The training programs are already set up. If we want the individuals in this community that are in most need of these jobs to go to the courtyard hotel or A Loft or the Ireland Rose suites that are being built we need help recruiting. From James Summer, Diversity Group, NAACP, Workforce Development we are not able to fill classes. We are hearing that there are a whole lot of people who want the job and want the job training but when we put the job training out there our partners are not stepping up to help us fill the classes. Councilmember Henry Davis Jr.- I have asked that we put all the jobs that are coming on a website, I have asked to have those types of conversations not only on Council floors but in committee hearings we don’t have them, who is communicating this information as far as workforce development, and how are they communicating it? We are choosing new people to do a job that needs a more experienced outlook on things. I’m going to challenge you as you challenge that we incorporate these conversations with the future development of jobs here. If they are here then we need to fill them, if they are here then people need to know about them. People are not signing for it because they don’t know anything about them. 38 REGULAR MEETING September 28, 2015 This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. There being no one present wishing to speak to the Council either in favor of: Jason Banicki-Critchlow 3822 W Ford St- This is obviously a piece of property we’ve all talked about more than a few times at Council meetings. Anytime your prime real estate you’re most visible piece sits vacant and empty it says a lot about the City. It says even more when we can quickly turn it around and turn it into a very large project. It will add to the excitement downtown and add to functionality. We got improvements at the Century Center and we have other hotels running. We know what we need to do is get some of the bigger conventions that help bring dollars to restaurants, stores, gas stations that is exciting to see. From an architectural stand point I think it is a beautiful building. I think it has the opportunity to change the tone of South Bend. We’ve been a 1940-50s style town, brick and drab and concrete. I think this is something we all need to be in favor of. Christopher Barth, 236 Tatty St. - Given the 30 million dollar investment into the property. I want to express my support for these three (3) tax abatements. The project reflects a significant need for investment to an iconic property in our community. The renovation is going to assist in attracting conventions to our area. I think I heard that we could have put on two-hundred and fifty (250) RFPs if we had and this particular hotel, along with the double tree, and the proposed other hotel downtown. Office rates are going to probably go up downtown with no more offices available in this building, rates will go up in other high Class A properties in town which is also good for the economy. I urge you guys to support this. In opposition to this bill: seeing none. Councilmember White made a motion to adopt Resolution 15-89. Councilmember Oliver Davis seconded the motion which carried and the Resolution was adopted by a roll call vote of seven (7) ayes. Councilmember Oliver Davis made a motion to adopt Resolution 15-90. Councilmember White seconded the motion which carried and the Resolution was adopted by a roll call vote of seven (7) ayes. Councilmember White made a motion to adopt Resolution 15-91. Councilmember Oliver Davis seconded the motion which carried and the Resolution was adopted by a roll call vote of seven (7) ayes. 15-92 A RESOLUTION approving the purchase of real estate property located at 2401 W. Western Ave Councilmember Gavin Ferlic Chairperson, Community Investment Committee, reported that they met this afternoon on this resolution and due to a lack of quorum there is no recommendation. th Presenter: Jitin Kain, Department of Community Investment, Offices on the 14 floor – This resolution is seeking to purchase this property on Western Ave. and Olive Street with the intention of increasing the safety at the intersection. As you are aware this is an intersection that has some issues with turning radii. The Polish National Building Association is consistently hit with large trucks moving west. A number of the land uses on Olive have a high usage of trucks and so the intersection does its fair share. We have looked at improving the intersection in the past. In 2009, about five (5) feet of right-of-way was purchased from the PNA building trying to expand the intersection which had some limited success but has still not changed the truck movements as you can see from the image and recent damage to buildings from large trucks. We also looked at changing the left turn bars so there is more room for the trucks and still had limited success. The analysis from our Engineering Department says the turning radius should 39 REGULAR MEETING September 28, 2015 be changed from a twenty (20) foot radius to a seventy (70) foot radius. In this case the PNA folks approached the City with a desire to close operations at that facility. They intend to continue those activities by using rental space and other community centers. We have decided to pursue the acquisition to secure a safer intersection. With the intention of putting the land back on the market immediately, for light industrial use, per Indiana Code 36-1-10.5. The acquisition must be done by conducting an appraisal, the average of two (2) appraisals done by two (2) certified appraisers which is what the department initiated. The average of the two (2) and appraisal price is $200,000 which would be the offer price for the building. The schedule if th approved today is to close October 9 then schedule the demolition of the building so work can happen later this fall or winter. This helps us get ready to improve the property next year. I have a couple images just showing what the initial concept is: this is showing the large turning radius for the WB65 trucks. The building doesn’t have a reuse potential therefore a demolition then putting it back on the market for a different use. The last couple of slides show the current view of the building. I would be happy to answer questions. Councilmember Oliver Davis– Again I bring up the signage issue and how this road just suddenly merges and the same at Walnut. Can we do something about this? We have traffic signage in the air that is directing us. One (1) part turns if you don’t get over quickly. Especially in the winter time or the foggy part of the morning, that becomes a major problem. If we could see them in the yellow and black. Or signs in front of us that could direct us that this is the turning it would just clear up a lot of things. Councilmember Henry Davis- Jitin we got some serious issues over there. I don’t know if this is going to satisfy those issues. I was at Wells Fargo trying to get out and I couldn’t. If we offer another lane over there I can only believe that there is going to be more traffic. I was trying to get out to go west. I was trying to get out to turn right on Western and that was like playing Frogger. I turned my car around to go back through the parking lot to turn right on to Western and I had the same issue luckily somebody had a heart and allowed me to get in. When I get out there the traffic is backed clear down the street to MaryCrest building. It’s been said the most dangerous intersection in the city of South Bend is at Walnut and Western. If you go there between the hours of 3 o’clock and 5 o’clock you will encounter a traffic jam going both ways from Walnut to Olive. Then you have one (1) lane in each direction on Olive. We have a huge traffic issue over there. I don’t know if that was on purpose to jam up traffic or if there was thought that it’ll work itself out. You can’t get out. You can’t get out of the bank, the gas station, if there was a bowling alley you can’t get out the bowling alley you can’t get out. So if you drive in you can cancel Christmas for the next thirty (30) to forty (40) minutes when you’re trying to get out. No different than Lincolnway when I was talking about the Kremo Bakery situation. That was the truth. He didn’t want to own up to it it’s fine, it’s the same situation you can’t get out. What’s the point in access to the area if you can’t get out? If you can’t access it or use it. What is the point? Presenter Jitin- I appreciate your comments. Certainly the intent of any of these improvements is to not prohibit any access it is the opposite of that. Some of the issues are the green time, as part of the Western Avenue restriping; we are changing the green time so there is more on Western and less on Olive. As we looked at the traffic study we saw that there was more desire for green time on Western that is getting fixed as part of the project we have underway. Part of the reason that Western is confusing is because in the past it has been done in a piecemeal manner. This time we are changing the entire three (3) mile stretch. With the signal synchronization that should help the traffic to flow much better. The project over here isn’t adding new lanes it’s increasing the turning radius. Councilmember Henry Davis- You have already addressed the lane changes and the new stripping. That has already happened. I am talking what has already been created. I live over there. This plan has already been implemented. What I am telling you right now Sir is you can’t get in and you can’t get out. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. Those wishing to speak in favor of: 40 REGULAR MEETING September 28, 2015 Resident of 2047 Miami St.- I think it is great for the City to move on. It is a very underutilized property. It is great to see the City doing this and continuing to revitalize Western Ave. we are excited to see it. The one thing we mentioned is trying to do some great gateways and something that really honors the Polish community there, the diversity of the neighborhood and do something as well. I think this would also attract people to that area. There being no one present wishing to speak to the Council in opposition to this bill, Councilmember White made a motion to adopt Resolution 15-92. Councilmember Oliver Davis seconded the motion which carried and the Resolution was adopted by a roll call vote of six (6) ayes and one (1) nay, Councilman Henry Davis Jr. BILLS - FIRST READING BILL NO. 54-15 REAFFIRMING ORDIANCE #100332-14 AND FIXING THE ANNUAL AND MONETARY FRINGE BENEFITS OF SWORN MEMBERS OF THE SOUTH BEND POLICE DEPARTMENT FOR CALENDAR YEAR 2016 This bill had first reading. Councilmember Oliver Davis made a motion to refer this bill to the th Health and Public Safety Committee for October 12. Councilmember Gavin Ferlic seconded the motion which carried by a voice vote of seven (7) ayes. 55-15 REAFFIRMING ORDIANCE #100333-14 AND FIXING THE ANNUAL AND MONETARY FRINGE BENEFITS OF SWORN MEMBERS OF THE FIRE DEPARTMENT FOR CALENDAR YEAR 2016 This bill had first reading. Councilmember Gavin Ferlic made a motion to refer this bill to the th Health and Public Safety Committee for October 12. Councilmember White seconded the motion which carried by a voice vote of seven (7) ayes. 56-15 SETTING THE ANNUAL SALARY FOR THE COMMON COUNCIL FOR CALENDAR YEAR 2016 This bill had first reading. Councilmember Oliver Davis made a motion to refer this bill to the th Personnel and Finance Committee for October 12. Councilmember Dr. Ferlic seconded the motion which carried by a voice vote of seven (7) ayes. 54-15 SETTING THE ANNUAL SALARY FOR THE SOUTH BEND CITY CLERK FOR THE CALENDAR YEAR 2016 This bill had first reading. Councilmember Gavin Ferlic made a motion to refer this bill to the th Personnel and Finance Committee for October 12. Councilmember Oliver Davis seconded the motion which carried by a voice vote of seven (7) ayes. 58-15 SETTING THE ANNUAL SALARY FOR THE MAYOR FOR CALENDAR YEAR 2016 This bill had first reading. Councilmember Gavin Ferlic made a motion to refer this bill to the th Personnel and Finance Committee for October 12. Councilmember Oliver Davis seconded the motion which carried by a voice vote of seven (7) ayes. 59-15 FIXING THE MAXIMUM SALARY FOR TEAMSTER EMPLOYEES FOR CALENDAR YEARS 2014, 2015, & 2016 41 REGULAR MEETING September 28, 2015 This bill had first reading. Councilmember Gavin Ferlic made a motion to refer this bill to the th Personnel and Finance Committee for October 12. Councilmember Oliver Davis seconded the motion which carried by a voice vote of seven (7) ayes. 60-15 FIXING THE MAXIMUM SALARY FOR APPOINTED OFFICERS AND NON-BARGAINING EMPLOYEES OF THE CITY OF SOUTH BEND FOR CALENDAR YEARS 2016 This bill had first reading. Councilmember Gavin Ferlic made a motion to refer this bill to the th Personnel and Finance Committee for October 12. Councilmember Oliver Davis seconded the motion which carried by a voice vote of seven (7) ayes. 61-15 TO VACATE THE FOLLOWING DESCRIBED PROPERTY A LESS THAN FULL WIDTH PORTION OF SOUTH MAIN ST FORMERLY LAFAYETTE BLVD THAT LIES ADJACENT TO PROPERTY OWNED BY GATES REALITY LLC. LOCATED AT 4418 SOUTH MAIN ST. FORMERLY LAFAYETTE BLVD This bill had first reading. Councilmember Gavin Ferlic made a motion to refer this bill to the th Public Works and Property Vacation Committee for October 12. Councilmember Oliver Davis seconded the motion which carried by a voice vote of seven (7) ayes. 62-15 TO VACATE THE FOLLOWING DESCRIBED PROPERTY A FULL WIDTH PORTION OF OLD SOUTH MAIN ST FORMERLY SOUTH MAIN ST THAT LIES BETWEEN LAFAYETTE BLVD AND SOUTH MAIN ST ADJACENT TO PROPERTY OWNED BY THE CITY OF SOUTH BEND BOARD OF PUBLIC WORK LOCATED AT 4201-4219 SOUTH MAIN ST. This bill had first reading. Councilmember Gavin Ferlic made a motion to refer this bill to the th Public Works and Property Vacation Committee for October 12. Councilmember Oliver Davis seconded the motion which carried by a voice vote of seven (7) ayes. 63-15 REPEALING its ENTIRE ARTICLE 7 TITLED NOISE CONTROL OF CHAPTER 13 OF THE SOUTH BEND MUNICIPAL CODE AND AMENDING CHAPTER 2-213 ADDRESSING SCHEDULE OF ORDINANDCE AND CODE VIOLATION This bill had first reading. Councilmember Gavin Ferlic made a motion to refer this bill to the th Health and Public Safety Committee for October 12. Councilmember Oliver Davis seconded the motion which carried by a voice vote of seven (7) ayes. 63-15 INITIATED BY THE AREA PLAN COMMISION ON BEHALF OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA REPEALING CHAPTER 6 ARTICLE 21-06.03 NORTHEAST NEIGHBORHOOD DEVELOPMENT NUMBER 3 OVERLAY ZONING DISTRICT AND REPLACING IT WITH A NEW CHAPTER 21 ARTICLE 6 SECTION 21-06.3 ENTITLED NORTHEAST NEIGHBORHOOD ZONING OVERLAY DISTRICT. This bill had first reading. Councilmember Gavin Ferlic made a motion to refer this bill to Area th Plan for October 12. Councilmember Oliver Davis seconded the motion which carried by a voice vote of seven (7) ayes. Councilmember Gavin Ferlic made a motion to send Bills 39-15, 39-16, 39-17 to the Zoning and th Annexation Committee for October 26. Councilmember Oliver Davis seconded the motion which carried by a voice vote of seven (7) ayes. UNFINISHED BUSINESS 42 REGULAR MEETING September 28, 2015 Councilmember Oliver Davis- The issue regarding IDs and Councilman Davis’ bill. When will we hear it? I know there is some clarity with the budget issue and with Councilman Davis’ bill. It is confusing to people how can we get that cleared up? Councilmember Henry Davis- I don’t know I specifically asked the Mayor when he was here to work with us and didn’t get a clear answer to whether he was interested or not. He said if you have a better way of doing it give it to him. I did I filed a bill that has a comprehensive approach to do some of things he’s talking about doing? It’s a different philosophy, sure. The Council is the legislative body of this city government. Dude I don’t know man. Some of is really frustrating that you asked and it’s not happening. I don’t know what the Council President feels about that I guess we need to lean up on his leadership on how he feels on how does the Council forge a conversation with Mayor’s Office? So that this is a shared effort. So, that it can get completed for the best intentions for the Council, the people and also the Mayor’s Office. Councilmember Oliver Davis- There is a lot of people who came here tonight thinking they were going two different ways. One is thinking the budget and the others thinking that there was going to be some bill presented. I am getting emails and texts and they want to know about the bill and I am saying they are two different things. It’s not the same thing. I don’t want to confuse people that we are just going to put $18,000 into a budget they’ll be happy because they are getting IDs and then there’s no IDs and then they get mad at all of us for fooling them. Council President Tim Scott- I am asking the co-sponsor of the bill and the administration to get together and work it out. Councilmember Henry Davis- There are eight (8) sponsors not one (1) sponsor. Council President Tim Scott- I am asking the sponsor to get together and work it out with the Administration. Get it together come to a solution. Councilmember Oliver Davis- Can we get an email on that? On what the suggestion is? And we can put something together. Also, can we get an update, we setup a committee, this is almost the end of the year, regarding Martin Luther King Jr. we nominated and one of our nominees is sitting right out there. I don’t believe one meeting has been called for the street renaming MLK and our nominees are ready to go. We look like we aren’t doing our job. What can we do to add more teeth to the situation? Should we tie it to the budget? The budget is not passed before this is done. I think it’s unfair for us to have people go through the nomination process, interview all these people bring them down here. Put them on a committee and then wait till next year different people will sitting up here. Whatever happens I think this is unfair. Council President Tim Scott- I will ask that we send a letter to the administration asking what their status is on it. Councilmember Oliver Davis- I appreciate that can you CC all of us on it? NEW BUSINESS Councilmember Henry Davis- Has the October meeting notice gone out for the Charles Black Center? Council Attorney- It is my understanding that it’ll go out tomorrow. The time is 6:30 p.m. Councilmember Oliver Davis- What day? rd Councilmember White- This coming Thursday October 3, 2015. This will be our last off-site meeting. PRIVILEGE OF THE FLOOR 43 REGULAR MEETING September 28, 2015 Jesse Davis – P.O. Box 10205, South Bend – I brought up the issue for the extra monies for salt. I just want you guys to look into that. Apparently we didn’t get a bid put in properly or at the wrong time that’s why we have to spend some additional money even though they are saying it’s a little cheaper. Please look into that, find out who dropped that ball and didn’t get the bid in to the State Consortium on time and properly. Jason Banicki-Critchlow – 3822 W. Ford St., South Bend – A lot of times people find government to be unresponsive or at least that is a common complaint they find that things don’t get done that they ask. I would like to say the exact opposite in my experience in front of your guys this year. I brought up several issues, the Clerk’s Office not getting the minutes up for 2014 they are starting to go up so I just want to say thank you for that progress. I brought up issues in the district and had brought up issues in the dispatch center, last week there was a meeting with the dispatch head. Low and behold he couldn’t answer and he’s resigned. I heard other people bring up concrete sidewalks, they were repaired within two weeks. I appreciated the way you guys help us. The ways you go above and beyond. When we bring issues you do address them, that you do look into them, that you do help us out to the best of your abilities. I think sometimes the simple thank you’s go over looked. Since we do have our police chief in waiting, I’d like to say congratulations to Scott Ruszkowski on the record. Samuel Brown – CUBG 222 Navarre St., South Bend – I am looking forward to the new police chief that's going to be sworn into office pretty soon. By trying to turn the city back around and make the neighborhood safe again, I think with the rash of shootings, deaths, drug house, we need to sit down with the new police chief and try to get our neighborhood back in the hands of the citizens of South Bend. I am looking forward to that. I am going to give him all the support that I can. I am asking the Council to do the same. ADJOURNMENT There being no further business to come before the Council, President Tim Scott adjourned the meeting at 11:28 p.m. ATTEST: ATTEST: ____________________________ ____________________________ John Voorde, City Clerk Tim Scott, President 44