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HomeMy WebLinkAbout09-30-10 Special Meeting Minutes SPECIAL MEETING SEPTEMBER 30, 2010 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 Thursday, September 30, 2010 at 6:00 p.m. The meeting was called to order by Council President Dieter and the Invocation and Pledge to the Flag were given. ROLL CALL COUNCILMEMBERS: Present: Derek D. Dieter 1st District, President Henry Davis, Jr. 2nd District (Present at 6:15 p.m.) Thomas LaFountain 3rd District Ann Puzzello 4th District, Chairperson Committee of the Whole David Varner 5th District Oliver Davis 6th District, Vice-President Al “Buddy” Kirsits At-Large Timothy Rouse At-Large Karen L. White At-Large OTHERS PRESENT: Kathleen Cekanski-Farrand Council Attorney Janice I. Talboom Deputy City Clerk Mary Beth Wisniewski Chief Deputy Absent: John Voorde City Clerk RESOLVE INTO THE COMMITTEE OF THE WHOLE At 6:04 p.m. Councilmember Oliver Davis made a motion to resolve into the Committee of the Whole. Councilmember Varner seconded the motion which carried by a voice vote of eight (8) ayes. (Councilmember Henry Davis Jr. was present at 6:15 p.m.) Councilmember Puzzello, Chairperson, presiding. Councilmember Puzzello 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 Puzzello stated that a brochure may be found on the railing in the Council Chambers explaining those procedures. PUBLIC HEARINGS BILL NO. 56-10 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, FIXING THE ANNUAL PAY AND MONETARY FRINGE BENEFITS OF POLICE OFFICERS OF THE SOUTH BEND POLICE DEPARTMENT FOR CALENDAR YEARS 2011, 2012 AND 2013 Councilmember Varner made a motion to accept the substitute version of this bill. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. 1 SPECIAL MEETING SEPTEMBER 30, 2010 Councilmember White, Chairperson, Health and Public Safety Committee, stated that this committee held a joint meeting with the Personnel & Finance Committee and voted to send it to the full Council with a favorable recommendation. Council President Derek D. Dieter disclosed that he is currently a sworn police officer with the South Bend Police Department and has proudly served since 1975. He stated that he has filed his disclosure forms with the Office of the City Clerk as well as with the State of Indiana. He noted that after discussion with Council Attorney Kathleen Cekanski-Farrand it was determined that no conflict exists. Kathleen Cekanski-Farrand, Council’s Agent, City Advisory Negotiating Team Member for Police Negotiations, made the presentation for this bill. Ms. Cekanski-Farrand advised that on behalf of the City Advisory Negotiating Team for Police, they are very pleased to recommend this substitute bill for passage. She noted that on Wednesday, September 22, 2010 the FOP Negotiating Team and the negotiating team representing the City of South Bend reached a tentative agreement. This tentative agreement was the result of many hours of negotiations and meetings which began on th May 26 with an insurance update. The tentative agreement complies with the guidelines established by the Common Council, City Administration and Police Administration. She stated that the proposed ordinance incorporates all of the terms and conditions which were tentatively agreed to last week. She stated that they are very pleased to inform the Council that the entire 2 year wage benefit working conditions package was officially ratified by the rand and file members of Fraternal Order of Police, Lodge No. 36, by a vote of 124 to 17. She advised that there is a two (2) year agreement for calendar year 2011 and 2012. This bill would implement Phase II of rank restructuring which would become effective on 01-01-11 and would eliminate the current rank of Corporal. This bill would continue to freeze salaries at 2009 levels in 2011, except for a rank compression adjustment for Sergeants and any qualified officers assigned to be an Investigator on a continuing basis. It recommends a 2% base salary across the board increase effective 01-01-12. It would authorize a Voluntary Physical Fitness Program in 2011 and 2012 and would amend Health Insurance provisions to be consistent with other City Employees. The bill would make modest adjustments recommended by the Police Administration which are believed to be in the best interest of the South Bend Police Department. She again thanked all the individuals who have contributed their time and talents to the negotiating process. She noted that despite many challenges, the respective negotiating teams bargained in good faith and dedicated their efforts to a fair and affordable total package. She asked the Council for their favorable consideration. Chief Darryl Boykins, 701 W. Sample Street, South Bend, Indiana, thanked everyone involved in this year’s negotiation process. He stated that the fitness program was well received and got a positive response. Chief Boykins stated that they wanted a little more, but this fits for now. th Charles Leone, City Attorney, 14 Floor County-City Building, 227 W. Jefferson Blvd., stated that he is speaking tonight as the Board of Public Safety Agent. Mr. Leone advised that negotiations and the tentative agreement also resulted in proposed changes to five (5) Articles of the current Working Agreement. These articles Article 15 Court Time Pay; Article 21 Personal Days; Article 30 Workweek; Article 33 Drug Free Workplace; and Article 35 Duration of Working Agreement will be formally acted upon by the Board of Public Safety at a later date. Councilmember White thanked the members of the negotiating team. She noted that because of limited resources and tough economic conditions the negotiating team bargained in good faith to reach the most favorable outcome. Councilmember LaFountain thanked the negotiating team for their commitment to working toward the rank restructure. He noted that this is a two (2) year contract and wondered what is going to look forward to next summer since there won’t be any negotiating going on. 2 SPECIAL MEETING SEPTEMBER 30, 2010 Council President Dieter stated from the very beginning of negotiations that he believes in mandatory staffing. He stated that this is in no way a reflection on Chief Boykins or Chief Walters, it just means that with 19 beats there is not enough manpower and it leaves some of those beats short. Therefore, he will not be voting in favor of this bill tonight. 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 White made a motion for favorable recommendation to full Council concerning this bill as substituted. Councilmember Oliver Davis seconded the motion which carried by a voice vote of seven (7) ayes and two (2) nays (Councilmember’s Henry Davis, Jr., Derek Dieter) BILL NO. 57-10 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, FIXING THE ANNUAL PAY AND MONETARY FRINGE BENEFITS OF FIREFIGHTERS OF THE SOUTH BEND FIRE DEPARTMENT FOR CALENDAR YEARS 2011, 2012, 2013 AND 2014 Councilmember White, Chairperson, Health and Public Safety Committee, stated that this committee held a joint meeting with the Personnel & Finance Committee and voted to send it to the full Council with a favorable recommendation. Councilmember Kirsits disclosed that he is a current member of the South Bend Fire Department. He advised that he has his conflict of interest paperwork on file in the Office of the City Clerk and with the State of Indiana. After discussions with Council Attorney Kathleen Cekansk-Farrand it was determined that no conflict exists. Kathleen Cekanski-Farrand, Council’s Agent, City Advisory Negotiating Team Member for Fire Negotiations, made the presentation for this bill. Ms. Cekanski-Farrand noted that on behalf of the City Advisory Negotiating Team for Fire, they are pleased to recommend Substitute Bill No. 57-10 for passage. On Wednesday, September 21, 2010, the negotiating team representing the South Bend Firefighter’s Association Local No. 362 of the International Association of Firefighters AFL-CIO and the negotiating team representing the City of South Bend, reached a tentative agreement. This tentative agreement was the result of many hours of negotiations and an excellent exchange of dialogue which began with an insurance update st on May 21. The tentative agreement complies with the guidelines established by the Common Council, City Administration and Fire Administration. She noted that the proposed ordinance incorporates all of the terms and conditions which have been tentatively agreed to, and which was explained and voted on by the rank and file members of the South Bend Firefighter’s Association Local No. 362. She stated that they are pleased to announce that the vote total received today were 193 votes in favor and 4 against. She stated that the salary and monetary fringe benefit package provides for a two (2) year agreement for calendar year 2011 and 2012. It would implement Phase II of rank restructuring which would become effective on 1-1-11 and would eliminate the current rank of Engineer. It would continue to freeze salaries at 2009 levels in calendar year 2011. It recommends a 2% base salary across the board increases effective 1-1-12 and would begin to address compression issues involving the rank of Captain in 2012. She stated that it would amend health insurance provisions to be consistent with other City Employees. It would make modest adjustments recommended by the Fire Administration which are believed to be in the best interest of the South Bend Fire Department. She thanked all the individuals who contributed their time and talent to the 3 SPECIAL MEETING SEPTEMBER 30, 2010 entire negotiating process, which was based on the principles of interest-based bargaining. She noted that despite all the many challenges, the negotiating team bargained in good faith and dedicated their efforts to a fair and affordable total package. The hard work and dedication of the Fire Negotiating Team and City Negotiating Team reflects the positive working relationship established between the union and the City. She asked the Council for their favorable consideration. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. Jim Lopez, Assistant Chief of Operations, thanked everyone involved in the negotiating process. He stated that negotiations also resulted in proposed changed to ten (10) Articles of the current Collective Bargaining Agreement. These articles (Article 9, Vacation, Article 13, Insurance, Article 21 Sick Leave and Sick Leave Buy-Back, Article 22 Retirement and Sick-Day Buy Back. Article 24 Compensatory Time Account and Policy, Article 25 Critical Duty Days for Twenty-Four Hour Personnel. Article 26 Drug/Alcohol Testing, Article 28 Overtime and Emergency Duty Procedures, Article 32 Memorial Neo-Natal Unit, and Article 33 Duration will be formally acted upon by the Board of Public Safety at a later date. Ken Marks, President, Local #362; and Todd Skwarcan, Vice-President, Local #362 spoke in favor of this bill. They thanked everyone involved and despite the many challenges, a good faith effort was put forth to achieve an affordable total package. There being no one present wishing to speak to the Council either in favor of or in opposition to this bill, Councilmember White made a motion for favorable recommendation to full Council concerning this bill as substituted. Councilmember Varner seconded the motion which carried by a voice vote of nine (9) ayes. BILL NO. 58-10 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, FIXING MAXIMUM WAGES OF TEAMSTER EMPLOYEES FOR CALENDAR YEARS 2011-2013 Councilmember Oliver Davis made a motion to accept the substitute bill file stamped September 23, 2010 and the Cover Letter filed stamped September 30, 2010. Councilmember Dieter seconded the motion which carried by a voice vote of nine (9) ayes. Councilmember LaFoutain, Chairperson, Personnel & Finance Committee, reported that this committee met on this substitute bill this afternoon and voted to send it to the Full Council with a favorable recommendation. th Gregg Zientara, City Controller, 12 Floor County-City Building, 227 W. Jefferson Boulevard, South Bend, Indiana, made the presentation for this bill. Mr. Zientara advised that this bill would fix the maximum salaries for Teamster Employees for calendar year 2011. The reason for the Bill being field for one year of wages only is because the Teamster have yet to ratify the tentative agreement reached on September 22, 2010 wherein a three year wage package was offered, accepted and tentatively agree to by the Teamsters. The last and best offer given to the Teamsters Bargaining Unit included a zero percent increase for 2011. Contract negotiations have concluded with the Teamsters however, the reason for the substitute bill is for one year of wages only and is because the Teamsters have yet to ratify the tentative agreement and don’t expect to until sometime in the month of October. Mr. Zientara noted that when the Teamster Union ratify the 3 year negotiation agreement a substitute bill will be filed with the Council which shall be for nothing more than the City’s last best and final offer and 4 SPECIAL MEETING SEPTEMBER 30, 2010 not exceed the parameters set out by the City Controller and Mayor and discussed with this Council. This bill has language in it consistent with language in the salary ordinance in 2010. The compensation level that is in the 2011 salary ordinance for the teamster is a wage level flat to the 2010 salary ordinance. There are some new job title positions that have been added they are a Sign Artist - Job Leader in Traffic and Lighting; Building & Structural Maintenance II and Job Leader in Parks & Recreation. He stated that these positions will add additional economic value to the contract that’s offered beyond the zero percent wage increase. In addition there are certain negotiations that occurred in parts of the supplement contract dealing with uniforms and other equipment that the city had agreed to these and have some economic value, however, they have yet to determine the economic value just simply because it takes some time to determine what and how many that these apply to but it would add some economic value. He asked the Council for their favorable consideration. He stated that he did not have direct contact with the Teamster Negotiations and called upon Gary Gilot, Director of Public Works and Phil St. Clair, Director, Park Department; Chuck Leone, City Attorney to give a brief overview of the negotiations. th Gary Gilot, Director, Public Works, 13 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, stated that he had the opportunity to participate in the Teamster negotiations. He stated that there were sixteen (16) union stewards present from the Teamsters representing our diverse operations along with Jim Szucs, Business Agent. There was good constructive dialog and really appreciate what these women and men do in terms of service deliver for the City. It was a positive spirited discussion. He stated that they did not agree on everything but there was good professionalism on both side of the table. Mr. Gilot noted that they brought certain standard benefits into the Teamster world like the standardized health care and funeral policy so that they would receive all the benefits under the handbook as the previous language in the contract was vague. Phil St. Clair, Director, Park Department, 321 S. Walter Street, South Bend, Indiana, thanked the wage team for the Teamster’s Union and Business Agent Jim Szucs did a great job of negotiating for the Teamsters. He noted that in Parks as well as in Public Works over the years they have had a reduction in force with their hourly employees and have asked those hourly employees to do more with less and they have stepped up to the plate and got the job done. He stated that he is grateful for the relationship that they have with the Teamsters Union and with Jim Szucs who does a wonderful job along with Jeff Jankowski who is the City’s Agent for negotiations. th Charles Leone, City Attorney, 14 Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, stated that he did not personally participate in the Teamster Negotiations, however, Jeff Jankowski, Deputy City Attorney, did participate and the feedback that he received from him was a positive, good dialogue, and look forward to the ratification of the agreement. 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 Oliver Davis thanked everyone involved in the Teamster negotiations. He stated that the negotiations were fair and at a quality level. Councilmember Henry Davis questioned the positions that Mr. Zientara talked about earlier in his presentation. He asked if those were new positions and if they were non- bargaining. Mr. Zientara replied that they were Teamster positions and not new positions, but new job titles. Mr. St. Clair clarified that the building structural maintenance II has been a part of the discussion since the beginning of negotiations and part of the supplemental agreement. The job leader positions are promotions and are in the current salary description for the Teamsters. They are for two employees that have the potential for promotions. 5 SPECIAL MEETING SEPTEMBER 30, 2010 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 for favorable recommendation to full Council concerning this bill as substituted. Councilmember Varner seconded the motion which carried by a voice vote of nine (9) ayes. BILL NO. 59-10 PUBLIC HEARING ON A BILL FIXING MAXIMUM SALARIES AND WAGES OF APPOINTED OFFICERS AND NON- BARGAINING EMPLOYEES OF THE CITY OF SOUTH BEND, INDIANA, FOR THE CALENDAR YEAR 2011 Councilmember LaFoutain, Chairperson, Personnel & Finance Committee, reported that nd this committee met on this 2 Substitute Bill this afternoon and voted to send it to the Full Council with no recommendation. nd Councilmember White made a motion to consider the 2 Substitute version on this bill. Councilmember Dieter seconded the motion which carried by a voice vote of nine (9) ayes. th Gregg Zientara, City Controller, 12 Floor County-City Building, 227 W. Jefferson Boulevard, South Bend, Indiana, made the presentation for this bill. nd Mr. Zientara advised that this is the 2 substitute bill fixing maximum salaries and wages of Appointed Officers and Non-Bargaining Employees of the City for the calendar year 2011. Mr. Zientara stated that they filed the submission copy along with and illustrative copy showing “stricken” language along with the schedule of 2011 salary maximum. Mr. Zientara stated that the hiring bonus along with the performance bonus have been stricken from the bill. The other change in the bill is that the maximum pay level percentage increase is at 1.5%. There were certain positions that the City was asking for a somewhat higher increase in the maximum allow salary to be paid. He stated that this was for certain positions whose job duties have changed and taken on more responsibilities. Mr. Zientara made reference to economic value being used in determining the salary ordinances for the Police, Fire and Teamsters. The non-bargaining employees are a valuable asset to the City just as well as the Police, Fire and Teamsters. The City Administration would ask through this bill to allow the Council to add Economic Value to this ordinance as well. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. Mr. Greg Burkowski, former City of South Bend Resident, now living in Centre Township, stated that he wanted make a few points regarding this bill. He stated that this is an indictment of the City Administration and doesn’t begrudge anybody a pay raise but in this economy he questions it. He stated that in the late 1990’s and early 2000 the City was battling nuisance bars and trying to shut them down. At some point and time the Mayor authorized purchasing those properties at full market value and they still are not on the tax rolls. The City purchased them; demolished them and they still are not on the tax rolls and contribute to the tax base. He referenced the City buying the old Gates Chevy World for a million and half dollars and as a result only has two car dealership’s left in the City. In 2005, the Mayor along with Susan Al-Abbas, County Engineer at the time and former County Commission David Niezgodski lobbied heavily for the wheel-tax surcharge. He stated that there were a lot of options out there but lobbied and imposed the maximum $25.00 fee on all cars and trailers in St. Joseph County. He noted that the money collected from the wheel tax goes to the various entities such as the County who used their portion of the money to repair roads and bridges in various locations across the county. The City of South Bend opted to use their portion fixing roads near and in close proximity to the University of Notre Dame, while the remainder of the streets are in deplorable condition. In 2009, the Mayor lobbied the various City Council 6 SPECIAL MEETING SEPTEMBER 30, 2010 Councilmember’s to raise the local option income tax. He stated that according to the Mayor these increases were so destitute and dire that the City would have to drastically cut public safety. Primarily Police and Fire Protection and this scare tactic must have worked because we got the tax increase. Now the Mayor wants to use a portion of these tax increases to give raises to a few select employees. Some of the raises were at 5% and fortunately the Mayor was vague in his presentation and the Council balked at that and he commended those Councilmember’s who did so. He stated that the Police, Fire and Teamsters have not gotten significant raises in the last few years and questioned why non-bargaining employees would be considered for such a large increase. He stated that he would like to see who was slated to receive these pay increases. He stated that he would bet that they were not the people working in the office who serve the public everyday in their jobs; however 2011 is an election year what a coincidence. He stated that he sees a pattern here and he doesn’t like it. He stated that he sees an administration that is running this city and uses any means to further their agenda with little regard to the long range effect on the city, the residents of the city or the county. The Mayor along with Pat Bauer and a few other state people have lobbied hard for INDOT to put in the most expensive route for the U.S. 31 limited access highway right through the heart of South Bend and it will directly cut off the south side of the County access to the City. The administration has conned the City and County Council into supporting this reckless spending repeatedly and have left a legacy of higher taxes, bloated budget, increased violent crimes, increased vacant lots and housing stock, a 5% higher allowable property tax cap than the other 90 counties in the state. A school corporation on the verge of being taken over by the State for lack on non-performance and a city that couldn’t keep its only non-profit television and radio stations in South Bend. He likened it to Chicago politics at its finest and urged the Council to vote no against this bill and to begin to take steps necessary to repeal the local option income tax and the wheel tax. He asked for the Council to put a moratorium on non profit business expansion and tax abatements until we have a substantial tax base expansion. There is not going to be any growth economically in the city with the way things have been done for the past 15 years. He asked the Council to do the hard things that are necessary to get things turned around so we can be like we used to be. In Rebuttal, Mr. Zientara declined any rebuttal. Councilmember Henry Davis asked Mr. Zientara to define Economic Value. Mr. Zientara stated that it is like a monetary value. One can place a monetary value on the elements of a transaction. Mr. Davis asked if it was like a measurable outcome. Mr. Zientara stated that he does not define it as a measurable outcome. He stated that he defines that as something different. Councilmember Henry Davis asked how did we get to this point and give raises to the employees of the City of South Bend. Mr. Zientara stated that it was his recollection, that back in 2008 when the State was debating on passing property tax reform, he assumed that the City Administration and the Council were in discussion, he stated that was before his time with the City, and debating what the financial impact that this state legislation would have on the City. It was not easily determined because the formula was constantly changing but there was discussion going on and this discussion led the city and council in making its way and respond to its reduction in revenue. He stated that one action was reducing its workforce another action was to look at the budget and find where reductions could be made. Looking for efficiencies and looking at wages between Police, Fire and Teamsters that already had three year agreements in place. He stated that when it came to non-bargaining employees their wages were essentially frozen or voluntarily given back in 2009 and 2010 as a measure to try to reduce costs of city operations. Furthermore, the same group of people including department heads and other members that took a voluntary 5% reduction in their compensation as a way to help the city determine what its short-term financial 7 SPECIAL MEETING SEPTEMBER 30, 2010 situation. He stated that when discussions began on the 2011 Budget back on September th 27 at the Council Committee Meeting that the employees of the City are an asset to the City. The City believes that they need to invest, protect and retain those assets including the employees through the agreements that have been recently ratified through the Police and Fire Departments. In early 2010 as the City began contemplating what can they do what they can afford? They looked at wage increases for the non-bargaining employees, why simply one word “fairness” For a group that back in 2009 had received no increase despite the fact that Police, Fire and Teamsters did. In 2010 the Teamster received and increase, the Police and Fire did not receive a wage increase had received an economic increase with phase one of rank restructuring. The City believed that a 2% increase in the proposed budget was initially discussed with the Council early on in the 2011 Budget determination. Because the city viewed this as an important measure to do, out of fairness, that they made it a priority to do, to find the money within the context of the budget. The budget that they presented to the Council is a balanced budget and they believe therefore has provided the funding within it to demonstrate that this is a reasonable and necessary expense. Councilmember Henry Davis doesn’t exactly remember it happening like that. He did remember something from the Administration coming to the Council to pass it, vote it down or make concessions. He stated that he cannot continue to be in favor of a budget or a process that has not produced the outcomes that the citizens of South Bend need. He stated that he truly believes that the city employees are hard workers; however, we do not or have not produced reasonable measureable outcomes for the city. So we should not do business as usual. Councilmember Davis stated that he is not in favor of this bill. Councilmember Varner stated that there are monies available to give these raises in the budget. Department Heads could give raises if they want. He questioned why it was reported this way. Councilmember White stated that she believes the non-bargaining employees provide much needed services to the citizens of South Bend. She stated that the Council is appreciative of those employees. She noted that the salary amounts are budgeted at the maximum amounts; some however are receiving below those budgeted amounts. She asked Mr. Zientara for data showing how many employees are making below their maximum budgeted salary amount. She stated that the Council took the heat and stood up for the tax increases so that the residents of South Bend would not receive a reduction in their core services. However, she stated that without the data that she is looking for on how many employees are not making their full budgeted amount, she cannot make an accurate decision on this bill tonight. Councilmember Oliver Davis questioned whether the Council has to take any action tonight. Kathleen Cekanski-Farrand, Council Attorney stated that the Council would be setting a precedent. Councilmember Rouse stated that if this bill is voted down there is still money administratively to give non-bargaining employees a raise. Mr. Zientara advised as he stated in the Committee Meeting earlier today. There are two elements. The larger element is that a non-bargaining employee today on September 30, 2010 is paid less than the 2010 salary ordinance there is more predominance that person is paid less not because the department head brought them in at a lower level but because their salary was frozen in 2009, and in 2010 and did not receive an increase until mid- year. So the predominance of the reason is not because the department head chose to pay beneath but because at least one year of their salary was frozen. 8 SPECIAL MEETING SEPTEMBER 30, 2010 Councilmember Oliver Davis stated that he wanted to be very clear that he is not voting against giving the non-bargaining employees a raise. He stated that he is against the Mayor being able to give and take away. Mr. Zientara stated that voting this bill down would effect those positions that were above the 1.5%. He stated that because of downsizing, taking on more responsibility, doing more with less, these positions would not be allowed to receive the increase. Councilmember Rouse asked if this bill could be amended to allow those positions that were going to receive more than a 1.5% increase to a phase in process. Mr. Zientara stated that the administration would welcome those discussions. Councilmember Puzzello stated that she decided to support this bill under certain circumstances. She stated that she would like to see the lowest paid positions to receive those percentage raises and bring them up to the level they deserve. Councilmember Dieter called for a recess. Councilmember Oliver Davis seconded the motion which carried by a voice vote of nine (9) ayes. The meeting resumed at 7:34 p.m. Kathleen Cekanski-Farrand, Council Attorney, thanked the Council for time to research and has consulted with City Attorney Chuck Leone on this, that there are two provisions in Title 36 which set forth the rules and regulations regarding city employees as it relates th to compensation. First, it sets forth that today September 30 is the deadline as the last day to establish the maximums. The second one talks about any employee connected to a municipal operation of a utility which does not have a deadline. She stated that after the st deadline passes this evening the City if prohibited from going forward until January 1 of next year to create new positions for next year. She gave an example that Police Chief Boykins brought to the Council attention. She stated that a sworn member of the Police Department who was injured on duty who has been trained and because of all of the training be able to create a civilian position within the police department. The City Administration could come in late December and file an ordinance creating that position as well as some of the positions that Mr. Gilot has brought to the Council’s attention during the budgetary process for the CSO project, the multi-million dollar storm water separate project that is going on. The City Administration could give the Council all the detail with regard to the duties, responsibilities and the compensation for those new positions so that the Council could act upon that at the beginning of next year. That would address some of the concerns that the administration has with regard to adjusting some of the salaries with regard to new responsibilities, and also those of Chief Boykins with regard to the needed services that he needs in his department. She stated that she was aware of this, but did not know if the Controller was aware of this and wanted to make sure that the statute was still on the books. She stated that maybe City Attorney Chuck Leone could address this. Chuck Leone stated that he consulted with the Council Attorney and that they came to the same conclusion that if the ordinance as presented this evening does not pass there is no opportunity between now and the end of the year to pass any increase in salaries for non- bargaining employees. However, after the first of the year the Council does have the right to entertain an ordinance that deals with specific positions that deal with new or additional responsibilities and those are the one that we have talked about in the Police Department and several positions in Public Works as they have described no more than 10 total and all of them involving additional and changes in job duties and responsibilities. So if it is the Council pleasure to vote no on this bill this evening, he would suggest and this is subject to appropriations because it is important that the budget reflect the ability to first of all deal administratively with non-bargaining salaries and to deal with the specific positions that they suggested. The Council would have the opportunity then in January and then they would hope to do is to file a bill in December for first reading and second reading at the first meeting in January to address those specific positions that they think are important in terms of overall operations of the city. 9 SPECIAL MEETING SEPTEMBER 30, 2010 Councilmember Puzzello asked if there then would be no way to have a salary increase for the rest of the non-bargaining employees. Mr. Leone stated except for administratively based on two things. First based on the maximums set in the ordinance that was passed a year ago for 2010 that would roll in 2011. So to the extent that there room to administratively bring salaries up and subject to an appropriation during budget time that would allow those increases to be made administratively. Mr. Leone stated that it was the administrations proposal to have a uniform 1.5% increase across the board. With respect to an individual basis, there is always some discretion on the part of the department head in terms of an employees increase. For the most part those are in place, but from time to time where an employee may be on a probationary status or may not have certain certifications in place just yet and may have to wait to get those increases. So that has always been at the discretion of the department head. So when the Council would pass an ordinance for example at 2%, the department head would have some latitude with respect to giving that full 2%. Council President Dieter asked what on average would the compensation increase be that each employee would receive if in fact the Council would vote this bill down tonight? Mr. Zientara stated that there are 410 non-bargaining full time employees in the City of South Bend this 1.5% in compensation equal $254,000. The average compensation of a non-bargaining person within the City just a total wage divided by the 410 is approximately $38,000 a year. Council President Dieter stated no that is not what he is asking. He stated that his question is if the bill is not passed tonight what is the percentage of increase that the employee would get? Is it 2%? Mr. Zientara stated that it could be. He stated that the budget guideline that they had given to the department head was 2%. When they put their budget together, then theoretically the amount that is in the budget is 2% additionally wage over what people earn in 2010. Council President Dieter then stated theoretically if they vote this bill down tonight the percentage would go from 1.5% to 2%. Mr. Zientara stated that only if the administration would take that particular action. Councilmember Kirsits stated that he was almost getting it and then got run off. He stated that he sees three sets of numbers in the budget and they are all over the map. Mr. Zientara stated that is the 2010 budgeted salary. He stated that what is difficult to understand is that it is what they could have been paid but weren’t because the City said they were going to freeze salaries in 2009. The administration did that to help offset the negative impact of property tax caps. It was the contribution that the city was making. Councilmember White questioned if the 2% given back to non-bargaining employees in July of this year was reflected in the budget? Mr. Zientara stated yes, but as he explained in the committee meeting this afternoon there were caveats not all non-bargaining received that 2% mid-year increase. Councilmember Rouse stated that if they don’t pass the 1½ % tonight the administration still has $250,000 in the budget to administratively bring them up to the amount that the administration wants to bring them to. Mr. Zientara stated that the money is in the budget right now, but it is not yet approved unless Council approves the budget with those monies in it. Councilmember Henry Davis called the question. 10 SPECIAL MEETING SEPTEMBER 30, 2010 nd Council President Dieter made a motion to recommend this 2 Substitute bill to full Council favorably. No second was made and the motion died. nd Council President Dieter made a motion to recommend this 2 Substitute bill to the full Council unfavorably. Councilmember Oliver Davis seconded the motion which carried by a voice of eight (8) ayes and one (1) nay (Councilmember Puzzello.) RISE AND REPORT Councilmember Varner made a motion to rise and report to the full Council. Councilmember Oliver Davis seconded the motion which carried by a voice vote of nine (9) ayes. ATTEST: ATTEST: _________________________ _________________________ John Voorde, City Clerk Ann Puzzello, 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 7:27 p.m. President Derek D. Dieter presided with nine (9) members present. BILLS – THIRD READING ORDINANCE NO. 10041-10 AN ORDINANCE 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, 2011 This bill had third reading. Councilmember Oliver Davis made a motion to amend this bill as in the Committee of the Whole. Councilmember White seconded the motion which carried. Additionally, Councilmember Varner made a motion to pass this bill as amended. Councilmember White seconded the motion which carried. The bill passed by a roll call vote of seven (7) ayes and two (2) nays (Councilmember’s Henry Davis, Jr.; Dieter) ORDINANCE NO. 10042-10 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, FIXING THE ANNUAL PAY AND MONETARY FRINGE BENEFITS OF POLICE OFFICERS OF THE SOUTH BEND POLICE DEPARTMENT FOR CALENDAR YEARS 2011, 2012 AND 2013 11 SPECIAL MEETING SEPTEMBER 30, 2010 This bill had third reading. Councilmember Puzzello made a motion to amend this bill as in the Committee of the Whole. Councilmember White seconded the motion which carried. Additionally, Councilmember Puzzello made a motion to pass this bill as amended. Councilmember Rouse seconded the motion which carried. The bill passed by a roll call vote of seven (7) ayes and two (2) nays (Councilmember’s Henry Davis, Jr.; Dieter) ORDINANCE NO. 10043-10 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, FIXING THE ANNUAL PAY AND MONETARY FRINGE BENEFITS OF FIREFIGHTERS OF THE SOUTH BEND FIRE DEPARTMENT FOR CALENDAR YEARS 2011, 2012, 2013 AND 2014 This bill had third reading. Councilmember Varner made a motion to amend this bill as in the Committee of the Whole. Councilmember Oliver Davis seconded the motion which carried. Additionally, Councilmember Varner made a motion to pass this bill as amended. Councilmember Oliver Davis seconded the motion which carried. The bill passed by a roll call vote of nine (9) ayes. ORDINANCE NO. 10044-10 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, FIXING MAXIMUM WAGES OF TEAMSTER EMPLOYEES FOR CALENDAR YEARS 2011–2013 This bill had third reading. Councilmember Oliver Davis made a motion to amend this bill as in the Committee of the Whole. Councilmember Kirsits seconded the motion which carried. Additionally, Councilmember Oliver Davis made a motion to pass this bill as amended. Councilmember Varner seconded the motion which carried. The bill passed by a roll call vote of nine (9) ayes. BILL NO. 59-10 A BILL FIXING MAXIMUM SALARIES AND WAGES OF APPOINTED OFFICERS AND NON- BARGAINING EMPLOYEES OF THE CITY OF SOUTH BEND, INDIANA, FOR THE CALENDAR YEAR 2011 This bill had third reading. Councilmember White made a motion to amend this bill as in the Committee of the Whole. Councilmember Henry Davis seconded the motion which carried. Additionally, Councilmember Varner made a motion that this bill be defeated. Councilmember Oliver Davis seconded the motion which carried by a roll call vote of seven (7) ayes and two (2) nays (Councilmember’s Puzzello, Dieter.) Councilmember White asked Council Attorney Kathleen Cekanski-Farrand to clarify what the Council’s action has actually done and the timeline of what happens next with regard to Bill 59-10 Kathleen Cekanski-Farrand, Council Attorney, advised that by defeating Bill No. 59-10 the Council is freezing the maximum salaries for all non-bargaining employees at 2010 levels which were set last September. It allows the City Administration under Indiana State Law to file a bill in December for any new positions or adjustments of positions based on increased responsibilities. In 2010, if the City Council goes forward as the Controller noted it is currently budgeted at 2% for non-bargaining employees and the 12 SPECIAL MEETING SEPTEMBER 30, 2010 Council passes the budget with that 2% in there it would allow the city administration to unfreeze those positions that are currently below those 2010 maximum levels. Councilmember Oliver Davis stated that it would be done in an equitably fashion. Council Attorney Kathleen Cekanski-Farrand stated that the Council has no control over that. ADJOURNMENT There being no further business to come before the Council, President Derek D. Dieter adjourned the meeting at 7:57 p.m. ATTEST: ATTEST: ____________________________ ____________________________ John Voorde, City Clerk Derek D. Dieter, President 13