HomeMy WebLinkAbout09-26-16r
m
y
°
°
N
N
°
0
r
n
r
r
y
a
td
z
0
0
z
0
z
r
b
z
y
r�
CD
(A
n
y
p
CD
CD
�
CD .
o
CD. c
y
�
d
z
z
r
c
b
o
z
°
CD
n
r
a
a
a
a
a
a
a
a
a
IIP
r
m
y
°
°
N
N
°
0
r
n
r
r
y
a
td
z
0
0
z
0
z
r
b
z
y
REPORT OF SUB - COMMITTEE ON MINUTES
TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND:
THE SUB - COMMITTEE HAS INSPECTED THE MINUTES OF THE
September 26, 2016
MEETING OF THE COUNCIL AND FOUND THEM TO BE CORRECT.
THEREFORE, WE RECOMMEND THE SAM + + APPROVED:
TIM SCOTT
D� D VARNER
APPROVED BY THE COMMON COUNCIL ON: October 10, 2016
ATTEST:
Z;EzgFOZ/R,�CITY CLERK
REGULAR MEETING
SEPTEMBER 26, 2016
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 26, 2016 at 7:00 p.m.
The meeting was called to order by Council President Tim Scott and the Invocation was given by
Reverend Sandie Vanik from the Unity Church of Peace and Pledge to the Flag was given.
ROLL CALL
COUNCIL MEMBERS:
Tim Scott
Regina Williams- Preston
Randy Kelly
Josephine Broden
Dr. David Varner
Oliver J. Davis
John Voorde
Gavin Ferlic
Karen L. White
OTHERS PRESENT:
Kareemah Fowler
Jennifer Coffman
Alkeyna Aldridge
Joseph Molnar
Kathleen Cekanski - Farrand
Adriana Rodriguez
1St District, President
2nd District
3rd District
4th District
5th District
6th District, Vice President
At -Large
At- Large, Chairperson Committee of the Whole
At -Large
City Clerk
Chief Deputy Clerk
Deputy Clerk
Clerk Executive Assistant
Council Attorney
Legal Research Assistant
REPORT FROM THE SUB - COMMITTEE ON MINUTES
Councilmember Karen White made a motion that the minutes of the September 12th 2016
meeting of the Council be accepted and placed on file. Councilmember Gavin Ferlic seconded
the motion which carried by a voice vote of nine (9) ayes.
SPECIAL BUSINESS
16 -78 A RESOLUTION OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA,
PUBLICLY COMMENDING ROD GOODCHILD
FOR HIS LEADERSHIP IN PROMOTING
LASTING AND MAGNIFICENT TREE
CARVINGS IN POTAWATOMI PARK FOR
GENERATIONS TO COME
Councilmember John Voorde read the entire resolution in full and congratulated Mr. Goodchild
for his accomplishments.
Mr. Goodchild thanked the Council for the commendation and for all the support the Council and
City have given the program.
Each Councilmember thanked Mr. Goodchild for his contributions to the City of South Bend.
Those from the public wishing to speak in favor of the bill:
REGULAR MEETING
SEPTEMBER 26, 2016
Aaron Perri, Parks Director of the City of South Bend, thanked Mr. Goodchild for helping
Potawatomi become a better place for everyone.
No one from the public spoke in opposition.
Councilmember Gavin Ferlic made a motion to adopt Bill 16 -78 by acclamation.
Councilmember Karen White seconded the motion which carried by a voice vote of nine (9)
ayes.
REPORTS OF CITY OFFICES
Representing the City Administration will be James Mueller.
Council President Tim Scott announced that Bill 41 -16 regarding the Commerce Center will be
continued to October 10th, 2016 as requested by the petitioner. Regarding the budget bills, there
will be no public comment on first readings of the budget. All the items under first readings will
not have public and that is part of our normal procedures. Those will come up for public
comment on October 10th 2016. On October 3rd 2016, there will be a public meeting for public
input on the budget at Pinhook Park at 6:00 p.m. There will be public input on bills that are
under the Committee of the Whole section. As per tradition, those bills will be continued until
October 10th, 2016 so that we still have more input and development on the budget.
RESOLVE INTO THE COMMITTEE OF THE WHOLE
At 7:25 p.m. Councilmember Oliver Davis made a motion to resolve into the Committee of the
Whole. Councilmember Karen White seconded the motion which carried by a voice vote of nine
(9) ayes. Councilmember Gavin Ferlic, Chairperson, presiding.
Councilmember Gavin Ferlic explained the procedures to be followed for tonight's meeting in
accordance with Article 1, Section 2 -11 of the South Bend Municipal Code.
PUBLIC HEARINGS
Councilmember Karen White made a motion to suspend the rules in order to hear Bill 47 -16 first
due to the petitioner having a time constraint. Councilmember Dr. David Varner seconded the
motion which passed by a voice vote of nine (9) ayes.
47 -16
PUBLIC HEARING ON AN ORDINANCE OF
THE COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA, APPROPRIATING,
ADOPTING AND APPROVING THE SOUTH
BEND PUBLIC TRANSPORTATION
CORPORATION'S 2017 BUDGET AND
LEVYING THE TAX AND FIXING THE RATE
OF THE TAXATION FOR THE PURPOSE OF
RAISING REVENUE TO FUND THE SOUTH
BEND PUBLIC TRANSPORTATION
CORPORATION, SOUTH BEND, INDIANA,
FOR THE FISCAL YEAR ENDING DECEMBER
31, 2017
Councilmember Karen White, Chair of the Personnel and Finance Committee, reported that they
met and send this forward with a favorable recommendation.
David Cangany, General Manager and Chief Executive Officer of the South Bend Public
Transportation Corporation at 1401 South Lafayette South Bend, served as the petitioner of this
2
REGULAR MEETING
SEPTEMBER 26, 2016
bill. A few weeks ago Transpo presented a detailed presentation on the 2017 budget and there
were no material changes to the budget. He asked for the Council to approve the levy that has
been assigned.
There we no questions from Council.
No one from the public spoke either in favor of or in opposition to the bill.
Councilmember Oliver Davis made a motion to continue in the Council portion and set the third
reading for October 10th, 2016. Councilmember John Voorde seconded the motion which carried
by a voice vote of nine (9) ayes.
49 -16
PUBLIC HEARING ON AN ORDINANCE OF
THE COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA, APPROPRIATING
ADDITIONAL FUNDS FOR CERTAIN
DEPARTMENTAL AND CITY SERVICES
OPERATIONS IN 2016 OF $208,300 FROM
GENERAL FUND ( #101), $2,300,000 FROM
LOIT 2016 SPECIAL DISTRIBUTION FUND
( #257), $2,985 FROM HALL OF FAME DEBT
SERVICE FUND ( #313), $14,000 FROM
COVELESKI CAPTIAL FUND (#401),$500,000
FROM COIT FUND (#404),$2,343 FROM
CUMULATIVE CAPITAL IMPROVEMENT
FUND ( #407), AND $3,200 FROM CREED FUND
( #434).
Councilmember Tim Scott made a motion to accept Substitute Bill 49 -16 on file in the City
Clerk's Office. Councilmember Karen White seconded the motion which carried by a voice vote
of nine (9) ayes.
Councilmember Karen White, Chair of the Personnel and Finance Committee, reported that they
met and send this forward with a favorable recommendation.
John Murphy, City Controller with offices on the 12th Floor of the County -City Building, served
as the petitioner for this bill. This is the substitute ordinance that includes the change we made in
Committee this afternoon. The largest item is the $500,000 appropriation for the street repairs as
a result of the flooding that occurred recently. We filed that claim with our insurance carrier and
any reimbursements we receive will be redeposited back into the COIT fund.
Councilmember Oliver Davis asked what is going to happen with Chippewa Avenue repairs.
Mr. Murphy stated he will defer to the Engineering Department.
Jitin Kain, Deputy Director of Public Works, responded that in regard to Chippewa we are
working with the County on repairing the street as both the City and County portions of the road
were damaged. We are trying to assess what the City's role will be in addressing those damages.
Councilmember Davis asked what the timeline is for reopening the road.
Mr. Kain responded they are trying to do their best to get it done quickly. The issue is with the
culvert that was damaged during the flood and replacing that can take time.
Councilmember Davis asked that the department send a notice to the people who live in the area
on when the road will be finished.
Mr. Cain responded certainly and they will send it to the City Clerk's Office.
No one from the public spoke in favor or opposition to the bill.
REGULAR MEETING SEPTEMBER 26, 2016
Councilmember Karen White made a motion to send Substitute Bill 49 -16 to the full Council
with a favorable recommendation. Councilmember Tim Scott seconded the motion which carried
by a voice vote of nine (9) ayes.
50 -16
PUBLIC HEARING ON AN ORDINANCE OF
THE COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA, APPROPRIATING
ADDITIONAL FUNDS FOR CERTAIN
DEPARTMENTAL AND ENTERPRISE
OPERATIONS IN 2016 OF $67,000 FROM EMS
CAPITAL FUND (#287),$2 FROM PARKING
GARAGE FUND (#601),$4,550 FROM 2013
SEWER BOND ISSUANCE FUND ( #664), AND
$6,700 FROM 2015 SEWER BOND ISSUANCE
FUND ( #666).
Councilmember Karen White, Chair of the Personnel and Finance Committee, reported that they
met and send this forward with a favorable recommendation.
John Murphy, City Controller with offices on the 12th Floor of the County -City Building, served
as the petitioner for this bill. This is the third quarter appropriation ordinance for the enterprise
fund. The EMS is an appropriation for a debt service payment. The last two (2) are to close out
bond issuance cost funds. When a new bond is issued, the bond council will ask to put the
issuance costs into a separate fund so that they can keep track of those separately. The issuance
costs were less than anticipated so those funds can be transferred to cover debt service payments.
There were no questions from Council.
No one from the public spoke in favor or opposition to the bill.
Councilmember Tim Scott made a motion to send Bill 50 -16 to the full Council with a favorable
recommendation. Councilmember Karen White seconded the motion which carried by a voice
vote of nine (9) ayes.
51 -16 PUBLIC HEARING ON AN ORDINANCE OF
THE COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA, FOR BUDGET
TRANSFERS FOR VARIOUS DEPARTMENTS
WITHIN THE CITY OF SOUTH BEND,
INDIANA FOR THE YEAR 2016
Councilmember Karen White, Chair of the Personnel and Finance Committee, reported that they
met and send this forward with a favorable recommendation.
John Murphy, City Controller with offices on the 12th Floor of the County -City Building, served
as the petitioner for this bill. These are the budget transfers for the third quarter. These do not
represent additional appropriations, they are just transfers between different types of accounts
with the same fund.
There were no questions from Council.
No one from the public spoke in favor of or opposition to the bill.
Councilmember Randy Kelly made a motion to send Bill 51 -16 to the full Council with a
favorable recommendation. Councilmember Regina Williams- Preston seconded the motion
which carried by a voice vote of nine (9) ayes.
4
REGULAR MEETING
SEPTEMBER 26, 2016
Councilmember Randy Kelly made a motion to hear Bills 44 -16, 45 -16, and 46 -16 at the same
time for purposes of public hearing. Councilmember John Voorde seconded the motion which
carried by a voice vote of nine (9) ayes.
44 -16 PUBLIC HEARING ON AN ORDINANCE OF
THE COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA, APPROPRIATING
MONIES FOR THE PURPOSE OF DEFRAYING
THE EXPENSES OF SEVERAL DEPARTMENTS
OF THE CIVIL CITY OF SOUTH BEND,
INDIANA FOR THE FISCAL YEAR
BEGINNING JANUARY 1, 2017 AND ENDING
DECEMBER 31, 2017 INCLUDING ALL
OUTSTANDING CLAIMS AND OBLIGATIONS,
AND FIXING A TIME WHEN THE SAME
SHALL TAKE EFFECT
45 -16 PUBLIC HEARING ON AN ORDINANCE OF
THE COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA, APPROPRIATING
MONIES FOR THE PURPOSE OF DEFRAYING
THE EXPENSES OF THE DESIGNATED
ENTERPRISE FUNDS OF THE CITY OF SOUTH
BEND, INDIANA, FOR THE FISCAL YEAR
BEGINNING JANUARY 1, 2017 AND ENDING
DECEMBER 31, 2017 INCLUDING ALL
OUTSTANDING CLAIMS, AND
OBLIGATIONS, AND FIXING A TIME WHEN
THE SAME SHALL TAKE EFFECT.
46 -16 PUBLIC HEARING ON AN ORDINANCE OF
THE CITY OF SOUTH BEND, INDIANA,
LEVYING TAXES AND FIXING THE RATE OF
TAXATION FOR THE PURPOSE OF RAISING
REVENUE TO MEET THE NECESSARY
EXPENSES OF THE CIVIL CITY OF SOUTH
BEND FOR THE FISCAL YEAR ENDING
DECEMBER 31, 2017
Councilmember Oliver Davis made a motion to accept Substitute Bill 46 -16 on file with the City
Clerk. Councilmember Dr. David Varner seconded the motion which carried by a voice vote of
nine (9) ayes.
Councilmember Karen White, Chair of the Personnel and Finance Committee, reported that they
met and send these bills forward with no recommendation.
John Murphy, City Controller with offices on the 12th Floor of the County -City Building, served
as the petitioner for these bills. Mr. Murphy gave a power point presentation to explain some of
the information contained in the budget and that presentation is on file with the City Clerk. We
have had a number of public meetings and it has been a good process and we appreciate the
Council working diligently with us. Mr. Murphy thanked Jennifer Hockenhull, the City's Deputy
Controller who put the Power Point together and has done an amazing job during this budget
process.
The City budget is a complicated process. There are one - hundred and ten (110) funds. The
General Fund is the primary fund. We have thirty -seven (37) special revenue funds. There are
seventeen (17) debt service and capital funds. We have twenty -five (25) enterprise funds and
internal service funds service the rest of the government. There are also a number of
redevelopment funds that the Redevelopment Commission approves but are also presented so
that the Council has a complete picture of the budget.
REGULAR MEETING SEPTEMBER 26, 2016
The budget process began in February with a Priority Based Budgeting kickoff meeting. It has
been a beneficial and interesting process to do the Priority Based Budgeting model. On June 7th
we had the budget kickoff meeting and on August 15" the Mayor gave a budget overview to
Council. We have had a number of budget hearings within the Personnel and Finance
Committee. October 10th, 2016 is the proposed budget adoption meeting and our due date is
November 1St, 2016. The DLGF will set our property tax rates by February 15th 2017. Next year
they are accelerating that so they will get it done by December 31St of the year which is good
because you'd like to have your property tax rates known before you start the new year.
Mr. Murphy gave a breakdown of the 2017 budget priorities which include: Safe community for
everyone, a strong and inclusive economy, thriving public spaces, vibrant and welcoming
neighborhoods, robust and well planned infrastructure, and that all residents are empowered with
education, mobility and technology.
Mr. Murphy presented the slides that have a breakdown of where money is being allocated under
those specific priorities. He suggested the Council and public have a good look at them because a
lot of well - funded programs are spelled out. Police and fire protection is a high priority for the
City and approximately $70 million is budgeted which is approximately twenty percent (20 %) of
the budget. A new department titled Venues, Parks and Arts is being proposed in this budget to
better and more efficiently serve the community and will encompass the Morris, Palais, Century
Center and Parks. In order to provide vibrant neighborhoods, $200,000 is budgeted for Light Up
South Bend. That is funded out of the COIT Fund. There is $625,000 to address Vacant &
Abandoned Properties. This budget has $1.5 million dedicated to curbs and sidewalks that does
not include an estimated $3,620,000 in federal reimbursements anticipated as well. The City's
minimum wage is in a three (3) prong step and is scheduled to increase to $9.15 in 2017. That is
about a $61,000 impact which is primarily from the Park's budget.
The overall budget is $316,540,989 in revenue which is up eight percent (8 %) from last year. We
have added some trustee funds that we have never included in our budget before and that alters
the numbers slightly. For the first time in City history, we have every fund that is in our reporting
entity in the budget. The expenditures are $366,840,595 which is down one percent (1 %) from
last year.
Due to the circuit breaker we are expecting a $3.05 million drop off in property taxes in 2020.
We are estimating an approximate ten percent (10 %) increase in the local income tax revenue
over last year. That is based on a DLGF estimate from July, we are waiting till the end of
September for a certified amount. This is very helpful for our 2017 budget.
Mr. Murphy presented a breakdown of the budgeted revenue and expenditures by activity. He
then gave a chart that provides a benchmark of other similar sized cities compared to South Bend
and analyzes per capita general government expenditures which are typically called "overhead"
or administrative costs. South Bend is at five percent (5 %) which fairs comparable to other cities
like Springfield Illinois which is at seventeen (17 %). We feel like our general governmental
expenses are in line with our peer cities. A chart was presented that had the breakdown of
budgeted expenditures by funds and another by type.
The budget calls for 1,121 full -time positions in 2017 which is a net increase of eleven (11) full -
time employees. That number has police at two hundred and ninety -seven (297), Fire/EMS at
two - hundred and sixty -four (264), and Public Works at three - hundred and one (301). Those are
the three (3) big departments in the City.
The City has won the Distinguished Budget Presentation Award two (2) years in a row and the
team is really proud of that.
South Bend has a double A bond rating with Standard & Poor. That is very good for a City of
our size and situation but we are working to get to triple A.
The City budget maintains our city's comeback through: continued investment in our
neighborhoods, city center, and people, use of technology and efficiency to drive results,
maintaining resources needed to keep high levels of service, and measuring our performance for
continuous improvement. The City continues to budget responsibly as we look towards the 2020
REGULAR MEETING
SEPTEMBER 26. 2016
Fiscal Curb and respectfully asks the Council to approve our 2017 budget request on October
10'h, 2016.
Councilmember Karen White asked if the minimum wage increase affects only full time
employees or is it directed towards all positions.
Mr. Murphy responded it includes all positions. The majority of the individuals would be in the
Parks Department. We have an estimate of where all the various positions are broken down at the
department level that can be sent to the Council.
Councilmember White asked when would the goal of being at $10.10 an hour be reached.
Mr. Murphy responded the goals would be to be at that level for the beginning of 2018.
Councilmember Oliver Davis asked how much the increase in the LOIT will be in terms of
dollars.
Mr. Murphy responded that it is an estimated increase of $2.7 million.
Councilmember Davis asked if there was any discussion to move up the minimum wage increase
to this year and have it at $10.10 for 2017. He recommended raising the lower level positions to
that number with that extra money before we start increasing the other positions that are higher
salaried. It makes more sense that when we get extra money to take care of those struggling at
the lower pay ranges.
Mr. Murphy responded we had a number of gaps in funding and currently the way we are
spending down COIT we used this money to close those gaps for 2017. Long term we still have
an issue with the fiscal curb but this did help close deficits.
Councilmember Davis stated over the next few weeks as we look at this, we should consider
raising the minimum wage to $10.10 this year.
Councilmember Dr. David Varner asked what is the difference between a double A and a single
A bond rating in terms of issuance rates.
Mr. Murphy responded that it is significant but he doesn't know for sure off the top of his head
but it does make a large difference over twenty (20) years.
Councilmember Dr. David Varner stated that we are making some of these expenditure
assumptions with several negotiations underway. He asked what the City used in regards to
Teamsters, Police, and Fire for the budget estimates.
Mr. Murphy stated we didn't assume a certain percentage but we did place some money in the
budget for increases. If negotiations goes well we feel comfortable that we could bring the
General Fund, COIT, EDIT and Public Safety LOIT into balance which would be a significant
achievement because those are our core funds. We'll be adjusting the budget after the
negotiations are settled.
Councilmember Davis asked what page should he go to see the money that the City is spending
on fixing up the streets.
Mr. Muprhy responded he should go to the Motor Vehicle Highway Fund which is on page two -
hundred and two (202).
Councilmember Davis stated people want to know that their streets and curbs are taken care of.
People want to see that their neighborhoods and not just downtown are being fixed up.
Mr. Murphy responded there is a new LOIT, the 2016 LOIT fund of $4.1 million dollars
designed only for streets. There are some appropriations in this year's budget and in next year's
budget. That is Fund #257, for next year we budgeted $2.13 million dollars for street
improvement which is brand new and we have never had that prior to this year. That is a positive
for streets that the Council could point to.
No one from the public spoke in favor of the bills.
Those wishing to speak in opposition:
REGULAR MEETING SEPTEMBER 26, 2016
Jesse Davis, P.O. Box 10205 South Bend IN, stated listening to what Councilmember Davis just
said about salaries makes more sense than anything he has heard at these Council meetings.
People are tired of the upper echelon getting caviar when the people at the bottom are eating dog
food. The City has been fully aware of the circuit breakers since 2008 which is almost nine (9)
years ago. The City created a new LOIT tax and then doubled it the next year and created a brand
new public safety tax and all the taxes keep going up and up. Everybody in Indiana except St.
Joseph County and Lake County have been capped at one percent (1 %) and South Bend got a
reprieve from that. We had nine (9) years to prepare for this and worry about the spending. The
City has no right to cut our services and every year taxes go up and people in government want
raises. Mr. Davis asked how much Smart Streets will eventually cost the taxpayers of South
Bend. He stated people on fixed incomes are not seeing cost of living raises so neither should
these City employees. To raise the taxes back because they will be capped, the government is
raising the assessments on properties. If the City is worried about this fiscal cliff coming and the
CSO project, we should be slowing the spending. We have already separated those sewers but
when we had a torrential rainfall the neighborhoods were flooding with sewage. This spending is
totally out of control. It would also be really nice if we could see what our tax dollars were spent
on and see the actual amounts. There should be no raises if we have this fiscal cliff.
Sharon Banicki, 3822 Ford Street South Bend, stated she is against this budget. There is one (1)
raise in the budget that pops out at her as inappropriate. She stated within thirty (30) minutes she
went to the two (2) cities that are above of us and their city clerks are not making near what our
City Clerk is asking for.
Chairperson Gavin Ferlic stated that salary is not in this hearing. That particular item is not
within this hearing but will be at the hearing in two (2) weeks.
Ms. Banicki continued and stated this Council has known for nine (9) years that this fiscal curb
was coming and it is a shame that more people are not here to voice their concerns. We are tired
of not being listened to. We are tired of the government telling us what we need and what we
want and should do. Quit spending money that we don't have to support all of these programs.
Pam Clays, 1106 Belleview, applauded Councilmember Davis on his comments. If it is $60,000
to bring people up to $9.10 we should really consider bumping that up to the $10.10 a year
earlier. She urged the Council to figure out that math.
Councilmember Randy Kelly made a motion to continue Bill 44 -16 in the Council portion only
and set the third reading for October 10th 2016. Councilmember Tim Scott seconded the motion
which carried by a voice vote of nine (9) ayes.
Councilmember Karen White wished to remind the public that they will have an opportunity for
public input at Pinhook on Monday October 3rd, 2016 at 6:00 p.m. We also have another budget
hearing scheduled for October 6th, 2016 at 5:30 p.m. in the Council conference room. The
Council does listen to the public and we are trying to come up with the best budget possible for
everyone.
Councilmember Oliver Davis made a motion to continue Bill 45 -16 in the Council portion only
and set the third reading for October 10th 2016. Councilmember Tim Scott seconded the motion
which carried by a voice vote of nine (9) ayes.
Councilmember Karen White made a motion to continue Substitute Bill 46 -16 in the Council
portion only and set the third reading for October 10th, 2016. Councilmember Tim Scott
seconded the motion which carried by a voice vote of nine (9) ayes.
40 -16 PUBLIC HEARING ON AN ORDINANCE
AMENDING THE ZONING ORDINANCE FOR
PROPERTY LOCATED AT 4246 MEGHAN
BEELER COURT, COUNCILMANIC DISTRICT
NO. 1 IN THE CITY OF SOUTH BEND,
INDIANA
W
REGULAR MEETING
SEPTEMBER 26, 2016
Councilmember Oliver Davis, Chair of the Zoning and Annexation Committee, reported that
they met and send this forward with a favorable recommendation.
Keith Chapman, Area Plan Commission with offices on the 1 Ith Floor of the County -City
Building, served as the presenter for this bill. Mr. Chapman displayed a Power Point slide which
is on file in the City Clerk's Office. The petitioner is requesting a rezoning from Light Industrial
to General Business District. On site is an existing sales and service building. To the north is
vacant land, to the east is a parking lot and to the south and west are industrial businesses zoned
LI Light Industrial. This comes to the Council with a favorable recommendation from the Area
Plan Commission. Rezoning this property to General Business will allow for an existing business
to continue operations and expand to include onsite sales of motor vehicles which is a use that is
compatible to surrounding industrial uses.
Garry Potts, Owner of Professional Permits with offices at 58171 Dragon Fly Court Osceola IN,
representing Cook Land Group, represented the petitioner of this bill. The petitioner had
previously rented a building on Cleveland Rd. within the industrial park and in December
purchased a building and renovated it for the purposes of having an indoor showroom. They
provide vans and SUVs with lowered floors and other modifications for the handicap in order to
enable them to drive. The City has required this zoning to keep everything as it should be and to
provide landscape relief.
There were no questions from Council.
No one from the Council spoke in favor of or in opposition to the bill.
Councilmember Oliver Davis made a motion to send Bill 40 -16 to the full Council with a
favorable recommendation. Councilmember Karen White seconded the motion which carried by
a voice vote of nine (9) ayes.
41 -16 PUBLIC HEARING ON AN ORDINANCE
AMENDING THE ZONING ORDINANCE FOR
PROPERTY LOCATED AT 401 EAST COLFAX
AVENUE, COUNCILMANIC DISTRICT NO.4
IN THE CITY OF SOUTH BEND, INDIANA
Councilmember Oliver Davis made a motion to continue Bill 41 -16 until October 101h 2016.
Councilmember John Voorde seconded the motion which carried by a voice vote of nine (9)
ayes.
RISE AND REPORT
Councilmember Karen White made a motion to rise and report to full Council. Councilmember
Regina Williams- Preston seconded the motion which carried by a voice vote of nine (9) ayes.
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 8:17 p.m. Council President
Tim Scott presided with nine (9) members present
BILLS — THIRD READING
49 -16 THIRD READING ON AN ORDINANCE OF
THE COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA, APPROPRIATING
ADDITIONAL FUNDS FOR CERTAIN
DEPARTMENTAL AND CITY SERVICES
0
REGULAR MEETING
SEPTEMBER 26, 2016
OPERATIONS IN 2016 OF $208,300 FROM
GENERAL FUND ( #101), $2,300,000 FROM
LOIT 2016 SPECIAL DISTRIBUTION FUND
(#257),$2,985 FROM HALL OF FAME DEBT
SERVICE FUND ( #313), $14,000 FROM
COVELESKI CAPTIAL FUND ( #401), $500,000
FROM COIT FUND ( #404), $2,343 FROM
CUMULATIVE CAPITAL IMPROVEMENT
FUND ( #407), AND $3,200 FROM CREED FUND
( #434).
Councilmember Gavin Ferlic made a motion to amend Bill 49 -16 as it was in Committee of the
Whole. Councilmember Dr. David Varner seconded the motion which carried by a voice vote
nine (9) ayes.
Councilmember Gavin Ferlic made a motion to pass Bill 49 -16. Councilmember Karen White
seconded the motion which carried by a roll call vote of nine (9) ayes.
uli.ei
THIRD READING ON AN ORDINANCE OF
THE COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA, APPROPRIATING
ADDITIONAL FUNDS FOR CERTAIN
DEPARTMENTAL AND ENTERPRISE
OPERATIONS IN 2016 OF $67,000 FROM EMS
CAPITAL FUND (#287),$2 FROM PARKING
GARAGE FUND (#601),$4,550 FROM 2013
SEWER BOND ISSUANCE FUND ( #664), AND
$6,700 FROM 2015 SEWER BOND ISSUANCE
FUND ( #666).
Councilmember Gavin Ferlic made a motion to pass Bill 50 -16. Councilmember Karen White
seconded the motion which carried by a roll call vote of nine (9) ayes.
51 -16 THIRD READING ON AN ORDINANCE OF
THE COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA, FOR BUDGET
TRANSFERS FOR VARIOUS DEPARTMENTS
WITHIN THE CITY OF SOUTH BEND,
INDIANA FOR THE YEAR 2016
Councilmember Gavin Ferlic made a motion to pass Bill 51 -16. Councilmember Dr. David
Varner seconded the motion which carried by a roll call vote of nine (9) ayes.
40 -16 THIRD READING ON AN ORDINANCE
AMENDING THE ZONING ORDINANCE FOR
PROPERTY LOCATED AT 4246 MEGHAN
BEELER COURT, COUNCILMANIC DISTRICT
NO. 1 IN THE CITY OF SOUTH BEND,
INDIANA
Councilmember Gavin Ferlic made a motion to pass Bill 40 -16. Councilmember Karen White
seconded the motion which carried by a roll call vote of nine (9) ayes.
10
REGULAR MEETING
RESOLUTIONS
16 -66
SEPTEMBER 26, 2016
A RESOLUTION CONFIRMING THE
ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN
AREAS WITHIN THE CITY OF SOUTH BEND,
INDIANA, COMMONLY KNOWN AS 7250
VORDEN PKWY, SOUTH BEND, IN 46628 AS
AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A FIVE (5) YEAR PERSONAL
PROPERTY TAX ABATEMENT FOR 3B TECH,
INC.
Sarah Heintzelman, Department of Community Investment with offices on the 14th Floor of the
County -City Building, served as the presenter for this bill. This is a five (5) year personal
property tax abatement for 3B Tech. They are making a private investment of $640,000. New
taxes generated will be $54,904 of which $25,200 would be abated. One - hundred (100) new jobs
would be created from this project with an annual payroll of over $3.5 million.
Mike Johnson, 3B Tech with offices at 7250 Vorden Parkway, served as the petitioner for this
bill. The company is expanding and outgrowning their existing building. We will still maintain
both facilities and will use the help from the tax abatement to help speed the growth of that
proj ect.
There were no questions from Council.
No one from the public spoke in favor of the bill.
Those wishing to speak in opposition:
Jesse Davis, P.O. Box 10205 South Bend IN, spoke against the bill. This huge fiscal cliff is
coming up and we shouldn't grant these tax abatements. We need to ask all companies coming
for tax abatements if they will still expand their company without this tax abatement. That is a
question that needs to be asked of every company before granting more tax abatements. If the
City wants to keep spending the resident's tax dollars, you have to quit walking away from tax
dollars from businesses.
Councilmember Gavin Ferlic made a motion to adopt Bill 16 -66. Councilmember Randy Kelly
seconded the motion which carried by a roll call vote of eight (8) ayes and one (1) nay.
(Councilmember Regina Williams- Preston)
Councilmember Gavin Ferlic made a motion to hear Bills 16 -69 and 16 -71 together for purposes
of public hearing. Councilmember Karen White seconded the motion which carried by a voice
vote of nine (9) ayes.
16 -69 A RESOLUTION CONFIRMING THE
ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN
AREAS WITHIN THE CITY OF SOUTH BEND,
INDIANA, COMMONLY KNOWN AS 2806 W
SAMPLE STREET, SOUTH BEND, IN 46619 AS
AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A SIX (6) YEAR REAL
PROPERTY TAX ABATEMENT FOR
INDUSTRIAL METAL -FAB, INC.
16 -71 A RESOLUTION CONFIRMING THE
ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN
AREAS WITHIN THE CITY OF SOUTH BEND,
INDIANA, COMMONLY KNOWN AS 2806 W.
11
REGULAR MEETING SEPTEMBER 26, 2016
SAMPLE STREET, SOUTH BEND, IN 46619 AS
AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A FIVE (5) YEAR PERSONAL
PROPERTY TAX ABATEMENT FOR
INDUSTRIAL METAL -FAB, INC.
Sarah Heintzelman, Department of Community Investment with offices on the 14th Floor of the
County -City Building, served as the presenter for this bill. This is a tax abatement for Industrial
Metal -Fab who are looking to invest $520,000 in private investment. New taxes created will be
$71,105 and an abatement of that would be $20,167. They are looking to create ten (10) new jobs
with over $300,000 in annual payroll.
Councilmember Davis asked how much of that $71,105 of tax is currently coming in now.
Ms. Heintzelman responded none of that. Over the total time period of the abatement the amount
of taxes created would $71,105 but right now it is $0 because the amount of new money they are
going to be investing will generate these new taxes. Right now none of that money is coming in
and none of it will come in unless they make this investment.
Councilmember Davis asked how is this different than the housing abatements that we give.
Ms. Heintzelman responded that the taxes that are going to be generated are primarily going to
be for the revitalization area and that money will go back into infrastructure work. It is also
going to be separate from money that is going to come in from residential properties. For some
of these businesses like IMF, they are landlocked and cannot continue to grow in South Bend.
This is also for them a very large capital expenditure and one that we can help to ease by doing
this. They may not make this investment without this abatement. This is an opportunity to help
some of these local businesses who are then tied to South Bend because the tax abatements are
going to bring in additional people who will be working in the community.
Councilmember Davis asked if there has been talk of this company leaving that spot.
Ms. Heintzelman responded yes there has been and they are currently on Sample right now
which is not a really good area for us to lose any more businesses because it has been primarily
industrial for a long time. This has been a locally owned business for over fifty (50) years. If we
can do something to help them and keep them here that is a worthwhile expenditure on our part
particularly because we are not taking money out of the coffers right now but simply abating
money that they have not even invested yet. If they were to not invest this money and move then
we would lose everything that is already there.
Council President Scott stated he wants to remind the Council that these are confirming
resolutions. We have heard these abatements almost verbatim with the same data two (2) weeks
ago. Once we approved it two (2) weeks ago they come back for the confirming before they go
down state.
Kyle Bodwig, Industrial Metal Fab 2806 W. Sample Street, served as the petitioner for this bill.
The company has been located at that location since 1964 and is landlocked and looking to
expand our capabilities to remain competitive in today's environment. This would help us stay at
that location without having to relocate somewhere else.
Councilmember Davis asked how this specifically helps them stay at that location.
Mr. Bodwig responded that they are at the point where they cannot keep up with their current
workload and need to add some new machinery. They can't add the machinery until they have
the space. The alternative to this would be to not meet our customer's demands or look
elsewhere or be creative with where we are at.
Councilmember Williams- Preston asked if the company does not get this abatement, in the next
five (5) years would they be looking to move.
Mr. Bodwig responded moving would be an option on the table. The idea of moving has come
up prior to this and this was an idea he personally took upon himself before they started looking
12
REGULAR MEETING SEPTEMBER 26, 2016
elsewhere. Moving is an option that has been looked at. We wanted to find a way to stay where
we are at while also meeting our customer's demands.
Those wishing to speak in favor of the two (2) bills:
Jesse Davis, P.O Box 10205 South Bend IN, spoke in favor of the bills. He stated he is definitely
not anti - business and is a very small business himself and sometimes he struggles. There are
probably instances where tax abatements are necessary. A better question to further this
discussion is will the business leave South Bend if they do leave. We have built some pretty nice
speck buildings in the City for businesses. It is not just a matter of will the company move but
will they move out of the City. Even when that happens like when AM General moved from
Mishawaka to South Bend. This Council gave them a tax abatement, but they get government
contracts. All their work is paid for with our tax dollars but we still gave them a tax abatement
and they weren't creating any new jobs here. They were just moving a facility from South Bend
to Mishawaka. They were still part of the St. Joseph County community and bottom line they
weren't creating any new jobs. There may be instances where these are necessary but we need to
look a little closer at those. This might be an instance where this is feasible.
No one from the public spoke in opposition.
Councilmember Gavin Ferlic made a motion to adopt Bill 16 -69. Councilmember Oliver Davis
seconded the motion which carried by a roll call vote of eight (8) ayes and one (1) nay.
(Councilmember Regina Williams- Preston)
Councilmember Gavin Ferlic made a motion to adopt Bill 16 -71. Councilmember Randy Kelly
seconded the motion which carried by a roll call vote of eight (8) ayes and one (1) nay.
(Councilmember Regina Williams- Preston)
Councilmember Gavin Ferlic made a motion to hear Bills 16 -73 and 16 -75 together for purposes
of public hearing. Councilmember Oliver Davis seconded the motion which carried by a voice
vote of nine (9) ayes.
16 -73 A RESOLUTION CONFIRMING THE
ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN
AREAS WITHIN THE CITY OF SOUTH BEND,
INDIANA, COMMONLY KNOWN AS 3722
FOUNDATION CT, SOUTH BEND, IN 46628 AS
AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A SIX (6) YEAR REAL
PROPERTY TAX ABATEMENT FOR
IMAGINEERING ENTERPRISES, INC.
16 -75 A RESOLUTION CONFIRMING THE
ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN
AREAS WITHIN THE CITY OF SOUTH BEND,
INDIANA, COMMONLY KNOWN AS 3722
FOUNDATION CT., SOUTH BEND, IN 46628 AS
AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A FIVE (5) YEAR PERSONAL
PROPERTY TAX ABATEMENT FOR
IMAGINEERING ENTERPRISES, INC.
Sarah Heintzelman, Department of Community Investment with offices on the 14th Floor of the
County -City Building, served as the presenter for this bill. This represents a $3.5 million private
investment on behalf of Imagineering. The new taxes generated from this project would be
$333,374 of which $126,224 would be abated. This would create twenty -five (25) new jobs over
the course of this project with over $780,000 in annual payroll.
13
REGULAR MEETING SEPTEMBER 26, 2016
Joseph Roland, CFO of Imagineering Enterprises at 1302 W. Sample Street, served as the
petitioner of this bill. We are looking at expanding our business and in doing so expanding the
real estate and buying some new equipment as well. This expansion will compliment some
current product offerings that we have and allow us to further penetrate the aerospace industry.
We have two (2) locations in South Bend and one (1) location in Marion County. We would like
to keep this project and jobs in South Bend.
Councilmember Regina Williams- Preston asked if they don't get this abatement are they
considering leaving South Bend.
Mr. Roland responded that they are considering the South Bend area and just outside of
Indianapolis.
No one from the public spoke either in favor of or in opposition to the bill.
Councilmember Gavin Ferlic made a motion to adopt Bill 16 -73. Councilmember Dr. David
Varner seconded the bill which carried by a roll call vote of eight (8) ayes and one (1) nay.
(Councilmember Regina Williams- Preston)
Councilmember Gavin Ferlic made a motion to adopt Bill 16 -75. Councilmember Dr. David
Varner seconded the bill which carried by a roll call vote of eight (8) ayes and one (1) nay.
(Councilmember Regina Williams- Preston)
BILLS FIRST READING
55 -16 FIRST READING AN ORDINANCE OF THE
COMMON COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, RE- AFFIRMING
ORDINANCE NO. 10333 -14 AND FIXING THE
ANNUAL PAY AND MONETARY FRINGE
BENEFITS OF SWORN MEMBERS OF THE
SOUTH BEND FIRE DEPARTMENT FOR
CALENDAR YEAR 2017
Councilmember Gavin Ferlic made a motion to send Bill 55 -16 to the Health and Public Safety
Committee and set second and third reading for October 10th, 2016. Councilmember Oliver
Davis seconded the motion which carried by a voice vote of nine (9) ayes.
56 -16 FIRST READING ON AN ORDINANCE OF THE
COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA, SETTING THE
ANNUAL SALARY FOR THE COMMON
COUNCIL MEMBERS FOR CALENDAR YEAR
2017
Councilmember Gavin Ferlic made a motion to send Bill 56 -16 to the Personnel and Finance
Committee and set second and third reading for October 10th, 2016. Councilmember Karen
White seconded the motion which carried by a voice vote of nine (9) ayes.
57 -16 FIRST READING ON AN ORDINANCE OF THE
COMMON COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, SETTING THE ANNUAL
SALARY FOR THE SOUTH BEND CITY
CLERK FOR CALENDAR YEAR 2017
Councilmember Karen White made a motion to send Bill 57 -16 to the Personnel and Finance
Committee and set second and third reading for October 10th, 2016. Councilmember Gavin Ferlic
seconded the motion which carried by a voice vote of nine (9) ayes.
14
REGULAR MEETING
58 -16
SEPTEMBER 26, 2016
FIRST READING ON AN ORDINANCE OF THE
COMMON COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, AMENDING CHAPTER 20,
ARTICLE 1, SECTION 20 -18 AND CHAPTER 2,
ARTICLE 19, SECTION 2 -213 OF THE SOUTH
BEND MUNICIPAL CODE TO INCREASE
PARKING FINES AND TO ADD A NEW
SECTION 20 -23.1 TO PROVIDE A
DISCRETIONARY AMNESTY BY THE CITY
CLERK
Councilmember Gavin Ferlic made a motion to accept Substitute Bill 58 -16. Councilmember
Karen White seconded the motion which carried by a voice vote of nine (9) ayes.
Councilmember Gavin Ferlic made a motion to send Bill 58 -16 to the Personnel and Finance
Committee and set second and third reading for October 10th, 2016. Councilmember Randy
Kelly seconded the motion which carried by a voice vote of nine (9) ayes.
59 -16 FIRST READING ON AN ORDINANCE OF THE
COMMON COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, FIXING THE ANNUAL PAY
AND MONETARY FRINGE BENEFITS OF
SWORN MEMBERS OF THE SOUTH BEND
POLICE DEPARTMENT FOR CALENDAR
YEARS 2017, 2018, 2019 AND 2020
Councilmember Gavin Ferlic made a motion to send Bill 59 -16 to the Health and Public Safety
Committee with second and third reading on October 10th, 2016. Councilmember Regina
Williams- Preston seconded the motion which carried by a voice vote of nine (9) ayes.
60 -16 FIRST READING ON AN ORDINANCE TO
VACATE THE FOLLOWING DESCRIBED
PROPERTY: THE FIRST NORTH -SOUTH
ALLEY LYING WEST OF PORTAGE AVENUE,
BOUNDED ON THE NORTH BY THE SOUTH
RIGHT -OF -WAY LINE OF BULLA STREET
AND BOUNDED ON THE SOUTH BY THE
NORTH RIGHT -OF -WAY LINE OF THE FIRST
EAST -WEST ALLEY NORTH OF KING STREET
IN PORTAGE TOWNSHIP
Councilmember Gavin Ferlic made a motion to send Bill 60 -16 to the Public Works and Property
Vacation Committee with second and third reading on October 10th, 2016. Councilmember
Karen White seconded the motion which carried by a voice vote of nine (9) ayes.
61 -16 FIRST READING ON AN ORDINANCE OF THE
COMMON COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA FIXING MAXIMUM WAGES
OF TEAMSTER EMPLOYEES FOR CALENDAR
YEARS 2017 -2020
Councilmember Gavin Ferlic made a motion to send Bill 61 -16 to the Personnel and Finance
Committee and set second and third reading for October 10th 2016. Councilmember Karen White
seconded the motion which carried by a voice vote of nine (9) ayes.
15
REGULAR MEETING SEPTEMBER 26, 2016
62 -16 FIRST READING ON AN ORDINANCE OF THE
COMMON COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, SETTING THE ANNUAL
SALARY FOR THE MAYOR FOR CALENDAR
YEAR 2017
Councilmember Karen White made a motion to send Bill 62 -16 to the Personnel and Finance
Committee with second and third reading on October 10th 2016. Councilmember Gavin Ferlic
seconded the motion which carried by a voice vote of nine (9) ayes.
63 -16 FIRST READING ON AN ORDINANCE FIXING
MAXIMUM SALARIES AND WAGES OF
APPOINTED OFFICERS AND NON -
BARGAINING EMPLOYEES OF THE CITY OF
SOUTH BEND, INDIANA, FOR THE
CALENDAR YEAR 2017
Councilmember Gavin Ferlic made a motion to send Bill 63 -16 to the Health and Public Safety
Committee with second and third reading on October 10th 2016. Councilmember Karen White
seconded the motion which carried by a voice vote of nine (9) ayes.
G,
FIRST READING ON AN ORDINANCE OF THE
COMMON COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, AMENDING CHAPTER 2,
ARTICLE 4, SECTION 2 -13 OF THE SOUTH
BEND MUNICIPAL CODE LISTING CITY
EXECUTIVE DEPARTMENTS TO AD THE
INNOVATION AND TECHNOLOGY
DEPARTMENT, AND TO REORGANIZE THE
PUBLIC PARKS DEPARTMENT UNDER A
NEW, EXPANDED DEPARTMENT
Councilmember Gavin Ferlic made a motion to send Bill 64 -16 to the Personnel and Finance
Committee and set second and third reading for October 10th 2016. Councilmember Randy Kelly
seconded the motion which carried by a voice vote of nine (9) ayes.
UNFINISHED BUSINESS
There was no unfinished business at this time.
NEW BUSINESS
There was no new business at this time.
PRIVILEGE OF THE FLOOR
Jesse Davis, P.O Box 10205 South Bend IN, stated everyone has probably heard about the
homeless people living under the bridge. Several community members stepped up and provided
tents to give them some type of shelter. Everyone's goal is to hopefully house these people.
Some of them might have mental disorders and are incapable of working and some of them are
elderly. Mr. Davis stated he has been down there for months and helping them out. He stated he
has yet to see one (1) single Councilmember until Sunday when Councilmember Williams -
Preston was down there talking to them. The Mayor doesn't seem to care either and everyone
16
REGULAR MEETING SEPTEMBER 26, 2016
seems to want to turn a blind eye. He stated for him it is personal because he had a brother who
had a mental disability who was homeless until Mr. Davis finally just bought him a home. This is
a huge problem. We don't have the mental health facilities anymore or the programs we used to
have. The mental health wards and Madison Center are gone. This is a serious problem and the
Council should take one (1) of their walking tours down to that bridge and talk with these people.
We don't have jobs for them.
Sharon Banicki, 3822 Ford Street, asked the Council to think long and hard about what they will
do to the lower income people with the increased water rates. They cannot afford that rate
increase. We have had so many rate increases lately and everything costs more. Our raises are
not keeping up with all these little fees that are being proposed. Planet Fitness is moving into
Western Avenue and they did it without a tax abatement or coming to this Council and asking for
help. She asked to the Council to please think long and hard about tax abatements in general.
Also, Code Enforcement needs education built into their budget so that they know the difference
between wild flowers and weeds.
ADJOURNMENT
There being no further business to come before the Council, President Tim Scott adjourned the
meeting at 8:48 p.m.
17