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HomeMy WebLinkAbout08-21-17 Personnel and Finance (#2) U d W PEACE M i 1865 OFFICE OF THE CITY CLERK KAREEMAH FOWLER,CITY CLERK PERSONNEL &FINANCE AUGUST 21, 2017 5:00 P.M. Committee Members Present: Karen White, Regina Williams-Preston(late) Committee Members Absent: Gavin Ferlic, John Voorde Other Council Present: Dr. David Varner, Tim Scott, Jo M. Broden(late) Other Council Absent: Oliver Davis, Randy Kelly Others Present: Kareemah Fowler, Bob Palmer, Graham Sparks Presenters: Eric Horvath, James Mueller, Pam Meyer, John Murphy Agenda: Public Works (cont.) Community Investment Redevelopment Budgets Committee Chair Karen White called to order the Personnel and Finance Committee meeting at 5:00 p.m. She introduced members of the Committee and proceeded to give the floor to the presenters. Public Works (cont.) Eric Horvath, Director of Public Works with offices on the 13th floor of the County-City Building, stated, I do not have any supplement to the previously provided presentation. I am here to answer any questions pertaining to the Department of Public Works 2018 budget presentation given on August 16, 2017. Councilmember Dr. David Varner asked, Is your overall personnel for Public Works even for the upcoming year? Mr. Horvath replied, Setting aside the Central Services move,we have one (1) new position for the Public Information Officer, but then we dropped two (2)on the Solid Waste side. The net loss is just one (1)position in Public Works. 455 County-City Building•227 W.Jefferson Boulevard•South Bend,Indiana 46601 Phone 574-235-9221 •Fax 574-235-9173•TDD 574-235-5567•www.SouthBendIN.gov JENNIFER M.COFFMAN ALKEYNA M.ALDRIDGE JOSEPH MOLNAR CHIEF DEPUTY/DIRECTOR OF DEPUTY/DIRECTOR OF POLICY ORDINANCE VIOLATION CLERK OPERATIONS Councilmember Dr. Varner followed up, Has Notre Dame given us their information this year to be sure they are in compliance with their special rate agreement? Mr. Horvath replied, I am not sure of that. Councilmembers Jo M. Broden and Regina Williams-Preston arrived at the meeting at 5:04 p.m. Councilmember Dr. Varner stated, We know the gas-tax was increased ten (10) cents a gallon and we know there will be increased revenues there. I think the expectation is almost$2 million. We would like to know where that is going. Mr. Horvath stated, We will make an updated paving list and make it available to everyone this fall. In this budget for Local Roads and Streets, last year we had$450,000 in paving material and this year we have $550,000, so an additional $100,000. We also added $800,000 in our MBH Fund. In terms of paving material for our own forces, we are going to have almost eighty percent (80%) more than last ye . Councilmember Tim Scott asked, You said Bendix Drive will be resurfaced in 2019? Mr. Horvath confirmed, Yes, that is correct. Councilmember Scott followed up, When you do that, are you looking to remain with concrete or go with a different material? Mr. Horvath replied, For projects like those, we plan for both and look at all options. We try to match designs and match the life of the material with what is already there. We will be bidding out both concrete and asphalt on the Bendix and Olive Projects. Councilmember Jo M. Broden asked, Is the upgrade to the billing system in the budget for this upcoming year?And will that give the flexibility to our residents to choose their billing date? Mr. Horvath replied, I don't know the answer to the flexibility part of the question, but yes, the upgrade is in the budget. Councilmember Broden followed up, Do we have an overall flooding list map and what is that? Mr. Horvath replied, The current list is comprised of complaints that have come in. We start at the top and work our way down while trying to find creative solutions. As of now we do not have developed costs on those projects yet, but we will develop those along with the solutions costs. In addition to that list, we have a bunch of little projects we do in-house but we will continue working on that list at the same time. Councilmember Broden then asked, And where are we at with the list of updates for current projects? I think that is a good piece. 2 Mr. Horvath replied, Right now we just have road projects on there but we will continue to expand that. It will be good because then all Councilmembers will have the information at your fingertips and will be able to answer residents' questions immediately. We look forward to having curbs and sidewalks projects on there, as it would be very beneficial to have that information readily available to the general public. Councilmember Scott asked, Will the 311 Call Center have that data as well? Mr. Horvath replied, That is a good question and a good idea. I will follow up on that. Committeemember Regina Williams-Preston asked, There is about $1.5 million in the budget for curbs and sidewalks? Mr. Horvath confirmed, Yes,that has been that way for the last couple of years. Committeemember Williams-Preston then advocated for more money to go into that Fund. Community Investment James Mueller, Director of Community Investment with offices on the 14th floor of the County- City Building, stated, Here is the outline of the presentation. He referenced the first slide of the presentation(available in the Office of the City Clerk). He continued, Our mission is to spur investment in a stronger South Bend. The lines of effort to do that are attracting and maintaining growing businesses, connecting residents to economic opportunities and planning for vibrant neighborhoods. This encompasses most of the work done by the Department of Community Investment. We are tasked with getting investment flowing and creating opportunities for all people across the City. He then showed an organizational chart for the staff of the Department of Community Investment. He stated, The major changes from what you've seen in the past are in the Economic Resources and the Business Development Divisions. They have been consolidated into one (1) division. That division has the Business License Administration and there is a Business Development Manager that focuses on going out and engaging businesses. They also analyze paybacks and returns on investments. We also have a Business Development Specialist that historically has been mainly concentrated on the Corridor Plan but we are looking to expand those efforts. What used to be under Economic Resources as property management has been moved to be with the Planners. The thought was that the Planners have the long-term vision of what we are trying to do with neighborhoods so they should be the keepers of the properties. If a developer comes with an idea, the Planners would be the best to facilitate that discussion. The City is also looking to take on the staff of the Historic Preservation Commission. We haven't finalized any deal with the County but the idea is that we would get the staff on the City books and be subsequently reimbursed by the amount of hours spent on County properties. Those details are still being worked on but that is the general direction we are headed. The former Neighborhood Engagement Team has been retitled to Neighborhood Development. We see this as a counterpart to the Business Development Team. The last bit of change is the Assistant Executive Director being proposed as changing to the Director of Economic Engagement and Empowerment. We are also clarifying the titles for all other positions. In the past there was an Analyst, Associate One (1), Two (2),Three (3) and so on. It became confusing for citizens as 3 well as colleagues to fully understand what the exact responsibilities were for each position. We are trying to get more detailed titles. We are hoping this new group will take on the neighborhood outreach and marketing of our community programs. I think residents aren't often aware of the programs that are being offered. This team would also manage our relationship with the Neighborhood Resources Connection. He then referenced a slide in the presentation that depicted the operating budget of the Department of Community Investment with all the different Funds the Department manages. He continued, There are City Funds that encompass Fund#211,Fund#212 the COIT and the EDIT Funds. Then there are Funds that are housekeeping Funds. These Funds are either debt-service Funds or are otherwise tied up and in some way relatively self-managed. There are also Redevelopment Funds that are appropriated by the Redevelopment Commission. The Community Investment Operations totals $2.8 million. This includes the addition of the Historic Preservation Committee staff which adds only two (2)positions. The promotions budget is slightly increased this year to take advantage of more proactive engagement strategies. We are trying to get a new software platform for business licensing and there is a slight increase in cost to that. There are Key Performance Indicators for the Department. There has been quite the turnover in the Department but a lot of activity has gone on despite all of that. In 2016, we announced five hundred and ninety-three (593)jobs created from our projects that were supported. There was also $207 million of private investment. We are a little shorter this year but part of that is due to more things happening without our financial support as well as our turnover. There has been a shift in TIF Fund spending where it isn't all on development deals. When we are looking forward to 2018, even if we're firing on all cylinders, we aren't sure DCI supported projects will be quite at the same level in terms of jobs and private investment. On the neighborhood side, we have owner-occupied rehabilitation staying roughly constant. We are looking to double that in 2018. Rental assistance is doubled this year from last.Year and we are looking to keep that up. Housing counseling has also been steady. Finally, we have been tracking the amount of residential units that we've incentivized. 2016 was a pretty good year for that as we had four hundred and seventy-five (475) and are on track for about three hundred (300) more. We are hoping to keep this level up going into next ye. He went on, There were many accomplishments from 2017. First and foremost, we are excited that the downtown two (2)-way street project is complete. We have already started to see investment increase due to that. We hope that project will continue to incentivize investment in our major corridors for many years to come. We've worked out a financing plan for the Parks and Trails Capital Investment across our City. There is about$16.4 million in TIF Funds included in that, but$10.7 million of that will be in a forthcoming bond that we will ask for Council's approval. This year on the Corridor Plan, we did Western Avenue Phase Two (2). We are hopeful that will be completed soon. We also did work along Fellows Street. We announced the agreement for the South Shore Project with the goal of reducing the trip to Chicago to ninety (90) minutes by the year 2020. The Federal Government is covering half of that total tracking cost, the State of Indiana is covering one forth, and the Counties are coving the remaining forth of the double-tracking cost. The City has agreed to fund the Relocation Project. We have the bike-share program with LimeBike and the Planning Team had much to do with it. On the Public Safety side of things, our Redevelopment Commission funded Fire Station Four(4)that is going on and we also helped the property acquisition agreement so Fire Station Nine (9) could be 4 across the street from the park as opposed to inside the park. We have also made some progress on the homelessness issue. Our team was also involved in finding the weather amnesty shelter. The Development front continues to fire on all cylinders. The openings of LaSalle, JMS and Martin's were this year. Eddy Street Phase Two (2) is already up and running now that they got their bond financing. Similarly, Berlin Place is up and running and they are expected to be done either the first or second quarter of 2018. The Studebaker Fagade Bond was approved in June and they are on track to close on that sometime in September. The Newman Center is also getting close as well as East Bank Phase Five (5). Portage Prairie has a lot of action and traffic coming online because of that. We have projects on the horizon that have agreements that we have since announced. The primary projects to keep an eye on are the Commerce Center that the Council is aware of,the WARF Site and the South Bend Chocolate Factory. We also have a pending agreement for the VA which is proposed office space on Western Avenue with storage space on the back of that facility. He then showed a map of all the development projects from 2016- rp esent. He continued, On the Workforce Development side,we launched the Pathways Program in 2015-2016. That is an outreach recruitment program that goes out and gets residents who are not actively in the workforce. We have a consultant that goes out and does the engagement and marketing and the training themself. Over one hundred (100)people in South Bend were trained in many different areas and fields. Roughly half of them are in the certified nursing assistant track and then the balance is in the other areas. We are undergoing a full audit of the program to figure out how to capitalize on this opportunity and make it more productive. We want to make sure these individuals are not only tied to high growth career tracks but tied to actual jobs,too. We are working with employers in the area to figure out what their needs are. Quite honestly, with the low unemployment rate, one (1) of the biggest barriers to development that we are hearing from companies is that they can't find qualified workers. So this is a big area that can have a real impact. Our programmatic and Civil City budget summarizes the COIT and EDIT Funds. We have $1.3 million for our Neighborhood Development Program, which is a combination of new construction and rehabilitation. This is consistent with Councilmember Williams-Preston's one hundred(100)homes initiative. We are trying to figure out what to do with vacant lots. There are many things yet to be carved out with that program but we wanted to make sure that we, at the very least,have the initial allocation in the upcoming budget. We have kept$100,000 for the vacant and abandoned programs. We are also looking to receive the fagade program grant which is the fifty-fifty(50-50)matching program. We think that will have a good impact on our corridors. We are also looking at other areas that may need a similar incentive to get the corridors more vibrant. Some have heard of the plan to look at the zoning reform. We have $425,000 dedicated to that initiative. We hope we don't have to use all of that. We have put in$255,000 for property acquisition at the tax commissioner sale. This is about fifty percent (50%)more than we have in the past. We are looking to get the properties we strategically need to move forward with some of our economic development initiatives. One (1) of the hardest things we face as a City is getting our hands on property. We have to go through a lengthy tax- sale process and it is difficult. There is also $180,000 allocated for Transportation Projects. That money accounts for bus shelters, bike infrastructure and outreach. There is $50,000 allocated, excluding TIF Funds, for the implementation of the City Cemetery plan. 5 He went on, On the Engagement and Economic Empowerment front, we've boosted the funding for the Neighborhood Resources Connection. They were already under-funded and their leaders were taking a lower salary than what a modest salary would be. We also have $100,000 to address the lead issue through abatement. That money is excluding the federal funds we are also looking at. By having the $1.3 million for neighborhood development, we've now potentially freed up some of the federal dollars that could be used to go toward our housing in order to do some of these other types of programs. We are hoping we will find more funding for that down the road. We are also setting aside $100,000 to build capacity for quality early childhood education. This program is not fully formed yet and it is still in the early stages of discussion. On the Business Development side, there is $529,000 coming out of COIT and EDIT that helps with the Workforce Development program as previously mentioned as well as small business development. We also have a$115,000 contract with the Chamber of Commerce to help with business recruitment. He showed a slide that depicted the Federal Funds the Department receives. He continued, The Community Development Block Grants are in Fund#212. We are assuming roughly steady funding at$2.5 million. Our current President of the United States threatened that existence, but both the Senate and the House wanted it to remain in the budget. Committeemember Williams-Preston thanked Mr. Mueller for his presentation and asked, Were there any salary changes this year? Mr. Muller replied, There were. The Assistant Director position was at$95,000 and now with the proposed title and responsibility change it is at $79,000. So there were savings there, but we simultaneously increased a few positions at the lower levels to even it out and show consistency. Councilmember Broden asked, For 2017 accomplishments, is one (1) of them the relocation of the South Shore? And what are the dollar amounts for that? Also with regard to the homelessness recommendations, where is that process and when are those dollars of the plan going to be identified? Is it within this budget? What was the rationale for the Historic Preservation merger? When will the report be available from the Workforce Development project audit? Mr. Mueller replied, Starting with the Workforce Development question, I think we should have enough to report sometime in October or November. The South Shore agreement with the Northern Indiana Commuter Transportation District(NICTD) has not been finalized yet. We entered into a Memorandum of Understanding with the County in May for the City's Relocation Project, as well as committing $25 million to satisfy South Bend's role in the arrangement. The final and full details have not yet been hashed out. There have been talks of different tracks and there are a lot of options on the table. The homelessness piece brings about significant investment for the Gateway Shelter. The shelter was going to be the City's contribution to move that issue forward. The rationale for the Historic Preservation Commission merger has a few factors behind it. One (1), the County's finances are worse than ours. Second, the City has more historic preservation interest than the County does. The County approached the City really wanting to think about the cost-sharing model. The City responded by proposing gaining control of the Commission if any increase to the cost-share model was imposed. We have consolidated many of the functions of the Commission and now the City has more control over the function of historic properties. 6 Councilmember Scott stated, One (1)thing with Historic Preservation is that the County didn't have a proactive lens on it. I think now with it being within Community Investment there is now a way to market some of the buildings that have been just languishing away. This is a quality of life issue and it is a start to what we've needed to address. How much money is expected to come from TIF on the Westside/Main Street Plan? Mr. Mueller replied, This year we did Western Avenue Phase Two (2). We have started engineering for the Lincolnway/Charles Martin Sr. node for next year and we have $2 million earmarked for that. Councilmember Scott followed up, Are you working hand in hand with the Building Department? Mr. Mueller replied, We do but there is always room for improvement with that relationship. I think getting the same software platform as the Building Department will help because the Building Department has a lot of data that is of interest to us at Community Investment. If we aren't involved in a deal with someone, we don't necessarily know what the Building Department knows because someone has to go and get a building permit. Councilmember Scott interjected, And that's where it crosses over to Redevelopment. I have concerns about the Building Department with regard to their inspections and upkeep with the developers and contractors working on site on all the projects we have TIF dollars invested in. I know they come before us for their budget as part of the County-City cooperative but I don't know how much we truly have a say in what they are doing. I don't want to reinvent the wheel with the Building Department but we have to see if it is working as a County-City entity for us. DCI has a Property Inspector. Would that be under the DCI, Building Department or does that coincide with Code Enforcement? Mr. Mueller replied, Our Property Inspector is Jeff Young. Pam Meyer, Director of Neighborhood Engagement with offices on the 14th floor of the County- City Building, stated, Jeff does inspections for all of the properties that are bidding any funding from our Federal Programs. He is also being used by the Department to do inspection maintenance for general oversight. Councilmember Dr. Varner stated, This is the second time someone has mentioned increased allocations for IT. Does it show up in your budget under Other Inter-Fund Allocations? I couldn't find a separate one (1) so that is what I'm guessing. What is the sum total of the increased allocations for IT across the City? John Murphy, Chief Financial Officer with offices on the 13th floor of the County-City Building, replied, We have a list of all of those. Jen Hockenhull, City Controller with offices on the 13'floor of the County-City Building, stated, I just sent an email today that lists out the entire IT budget by Department. It is also online. 7 Councilmember Dr. Varner followed up, It looks to me that the allocation for IT will be $350,000 by the year 2020 and that is becoming a very significant portion of the budget. We should have a better understanding moving forward of how that will work. Mr. Mueller stated, We still have a lot of room to grow in terms of efficiencies and software. Councilmember Dr. Varner then stated, You also mention the $10.7 million bond issue, supported by TIF, as part of the financing plans as the proposed Parks and Trails Initiative. How long is that bond going to be? Mr. Muller replied, The expectation is a fifteen(15)year bond and I think there will be an accompanying Parks Bond that will be for fifteen (15)years also. Councilmember Dr. Varner continued, You are showing your expenditures from Fund#404 and Fund#408, which are COIT and EDIT Funds, yet those are not in our list here and are in another list. Are we still maintaining the fifty percent(50%)proposed reserve? And I believe each of them are returning about $15 million a year? Mr. Murphy replied, We receive about$8 million a year each. They are balanced for 2018 and we do meet our fifty percent(50%) reserve, with all of these proposed expenditures. Committee Chair White stated, I have a number of questions but I would like to share with you a letter from Scott Ford who was the Director of Community Investment. This letter focuses on the funding for the City Cemetery. She then handed Mr. Mueller the letter written by Scott Ford. She continued, I also think there is a misconception in the community that the City is planning to acquire homes. Mr. Mueller replied, That is correct, that is a misconception. We are not trying to acquire homes. Committee Chair White went on, In terms of Smart Streets, I do think things are going well but at certain times of the day there is a lot of traffic back-up. I don't know if there are any plans for entering and exiting the Century Center, too,but even going to work in the morning there is a lot of back-up traffic. In terms of Early Childhood Education, I would encourage the Administration to reach out to the Community Foundation. The Foundation has been working with consultants in training the providers and they have a very good report that could help support what the City would like to do so we wouldn't have to reinvent the wheel. I will email my questions to you but my only other question is about the $115,000 for the Chamber of Commerce. Is that a fee? Mr. Mueller replied, Yes, that is the City's contract with the Chamber. Committee Chair White asked, Also,what is the VA going in on Western Avenue going to look like? Mr. Mueller replied, It will be office space and a storage facility in the back. 8 Committee Chair White followed up, Is that service delivery for the VA? Mr. Mueller replied,No, it is just the old VA Building. The VA has moved office spaces. Redevelopment Budgets Mr. Mueller stated, We have five (5)main TIF Districts in the City. He then showed a map from the presentation that depicted all the districts in the City. He continued, These districts are funded off of the returns on investments made. Any increment that is generated from the previous engagement, it generates funds. So for example, if we started spending money from TIF Districts and weren't generating any new development, we would see the receipts go down over time because the depreciation of the existing assets. Our general TIF strategy has been making investments that keep the Fund growing by having a return on investment while also making Public Infrastructure investments. The philosophy of investing in TIF Funding is a combination of projects that both return on investment and sustain the public infrastructure. Some of the longest paybacks are termed for fifteen(15) years on some development projects but a lot of them are five (5)to seven(7) years. I know a lot of residents are concerned about incentivizing certain projects, but part of the strategy for TIF is investing in future revenue that could be used for other purposes. The appropriations of TIF dollars are controlled by the Redevelopment Commission unlike all the rest of the City Funds that are appropriated by the Common Council. The State did make some changes in either 2014 or 2015 so that when bonds are issued within a TIF District they must come before the Council to be approved. So the upcoming Park Bond will come before the Council. The TIF Expenditures have a set number of things they can be used on. Generally,the best litmus test is to see whether or not that TIF-funded public improvement services the district in some fashion. We have gotten more creative and other cities have also gotten more creative over the years. One (1) example is the funding of police foot-patrols, and there is a question of whether or not that should happen. Usually you need to be investing in something and not someone, like capital projects. There are some workforce development things that could be funded but they have to be associated with a tangible project within the District. Committee Chair White asked, Could TIF Funding be used for professional services? Did we do some of that last time that was affiliated with a project? Mr. Mueller replied, We do a lot of professional services with our projects. Almost every project we do requires us to engineer it. That is a professional service associated with a physical capital project and that service is eligible to be funded by TIF. Councilmember Dr. Varner stated, You mentioned macro-economic trends as part of your concerns going forwad. What are those trends? Mr. Mueller replied, I think there are two (2)big concerns. The first is the automation of the workforce. The second is, as the Mayor puts it, being in the seventh inning of the economic growth cycle. We are aware of that and we are trying to think ahead about ways we can prepare for any of those consequences. 9 Mr. Mueller then overviewed the different projects in the respective TIF Districts. He stated, Across the TIF Districts, right now we receive about $25 million cumulatively in revenue each year. This will go down in 2020 with the property tax caps but currently we have about $11 million for existing debt service. That encompasses things like Police Stations, Fire Stations, previous public facilities, Smart Streets and other bonds. Next year it will increase by about $500,000 to service the new TIF Parks Bond. That leaves about$13.5 million across all TIF Funds available for expenditures. The major projects we see being committed for 2018 added up are actually more than $13.5 million. We have some cash reserves that have been carried over that we expect to be spending now, but we are in this conundrum where we have funds committed but they don't get expended. Every year, the TIF budget is the highest budget. It always goes up because there are funds we've committed in previous years that we haven't spent and we have to leave room for that. The current year funds are always fully spent so it just cascades down. There is no obvious solution for that because we could get more aggressive and start spending earlier, but I don't want to run out of cash reserves. Councilmember Dr. Varner asked, Are you comfortable with the fact that the expectation is you will probably expend the $13.5 million?And the balance will then roll over and you will have the necessary cash for the other projects? Mr. Mueller replied, On our projects, with the cash and the new revenue expected, we won't run out of money. Councilmember Scott stated, I would like to see us taking more advantage of TIF Funds for curbs and sidewalks. Councilmember Broden asked, Could you give some background to the rehabilitation of Fat Daddy's and the Lafayette Building as well as some justification and rationale for those two (2)? Mr. Mueller replied, We wanted to keep historic buildings in our downtown. One (1) of the biggest mistakes we've made in our downtown, in addition to the one (1) way highways through it, was our starting to demolish buildings. This left vacant lots everywhere. It ruins the walkability and once the buildings are gone,they are gone forever. The Lafayette Building particularly was one (1) of the first office buildings and there is a large history there. We also think there could be a large potential for leasing it as office space because of its proximity. The challenge with that building is there is no parking associated with it currently so unless there is a garage built, it would be hard to do. We have to pay money to demolish Fat Daddy's. It is an unsafe building and is unsound in the back. We have to spend a significant amount of money demolishing it either way so the idea here is to preserve the facade as this initial tax credit project moves in behind it. One (1) of the things that makes these tax credit projects competitive is adaptive reuse and that is what we are hoping for. Councilmember Broden followed up, What does stabilization mean, specifically the stabilization for$1.2 million? Who are our partners on that and what are the short-term long-term plans on that? 10 Mr. Mueller replied, There are some efforts to move forward with it this year because the roof right now is in bad shape. We hope to do an emergency stabilization on it this year but also hope to get ownership of the building after the tax-sale sometime first or second quarter next year. So that$1.2 million will bring it up into something that could be developed. It won't be ready to be moved into, but it'll get it ready to be marketed. Committee Chair White then opened the floor to members of the public wishing to give questions or comments. Sue Kessim, 4022 Kennedy Dr., stated, I'm concerned there is only $4.5 million for Public Works for the water infrastructure, based on what I've heard. That infrastructure is really degrading and is behind in being upgraded so I was wondering how much is really needed to bring our infrastructure to where it needs to be. I don't want to see us become Flint. Mr. Mueller replied, This was the TIF portion of it but there was a larger five (5) year Capital Plan that was passed. Mr. Horvath offered to provide a copy of that plan to Sue Kessim. Marty Wolfson, 809 Park Avenue, stated, I would echo the sentiment of several Councilmembers. This is an encouraging approach to development from Community Investment and we appreciate the efforts being made. Are the relocation funds for the relocation of the South Shore intended for families that may lose their houses? Mr. Mueller replied, Part of those funds could be used to that extent, yes. Mr. Wolfson continued, Is there a plan for how to use properties acquired through the tax sale? You talked about being strategic with that. Mr. Mueller replied, Primarily, we have been acquiring properties that fit in with the Westside/Main Street Plan,the City Cemetery Plan and the Southeast Master Plan as they are the main target areas. Mr. Wolfson then asked, Likewise with the CDBG Funds, is there some overall strategy on how to use them or are those expended on a project by project basis? Mr. Mueller replied, That is under review. We are having an engagement with a Bloomberg Group titled Repurpose for Results that is trying to help us think strategically. Already we see this with the strategic shift of moving some of the neighborhood development to the COIT and EDIT Funds, essentially freeing up some Federal Funds. Mr. Wolfson asked, Is there a number for the total cost of the Smart Streets Project? Mr. Horvath replied, The bond was about$25 million. Mr. Wolfson then asked, Is the money for the Chamber sort of what Project Future used to do? 11 Mr. Mueller replied,No,they really just serve as the point of contact for businesses in the area. That is one (1) thing our new Director of Business Development is looking at. Mr. Wolfson stated, I thought that is what Project Future did. There was a fifteen percent(15%) share of City contribution to projects. Is that still in effect? If big companies were going to do development,that was the number that was given for City investment. Councilmember Dr. Varner replied, That was a cap and it was a number Scott Ford thought would be sustainable. Mr. Mueller stated, We do probably average about fifteen percent (15%) investment in most proj ects. Mr. Wolfson then asked, In light of the upcoming fiscal cliff,has there been any thought to how we might use some of the money being generated from TIF to address those needs? Mr. Mueller replied, We've taken a number of steps starting in the 2017 budget. We started moving some debt that used to be part of Civil City Funds to TIF. We've explored some staff positions being funded out of it but it is difficult with non-capital projects. There are limitations for what TIF can be used for. Mr. Murphy stated, In 2020, St. Joseph and Lake County are going to have some provisional property-tax laws due to circuit-breakers that some of the other counties do not because we had some existing debt. It's a little over a$2 million dollar hit to the General Fund. It isn't as much of a fiscal cliff but a fiscal curb. Mark Piasecki, 101 N. Conestoga Lane, stated, Are these 2017 projects contractually committed to? Mr. Mueller replied,Not all of them are, no. Mr. Piasecki followed up, What is the $3 million for creating technology resources? Mr. Mueller replied, This is part of a collaboration between our Department of Innovation and Technology and Notre Dame. They've applied for a$23 million NSF grant for South Bend to become a wireless test-bed, and we think this has a lot of economic development potential. As part of that application not only will they build out the metro-net but there will also be an inclusive tech center where industry and community are able to engage in a common space. There are many different proposed places for that center. Mr. Piasecki asked, Are all one hundred(100)people that have gone through the Workforce Training Program employed? Mr. Mueller replied, That's what the audit is hoping to find out exactly. We don't provide the training. 12 Austin Gammage, Community Investment with offices on the 14th floor of the County-City Building, stated, We partner with WorkOne, Ivy Tech and other entities in the community to get people into the program so they can be trained and we are waiting to see the employment rate after that program. Ivy Tech is one (1) of the different training facilities. Mr. Piasecki then asked, Do you think we are over-developing right now? Mr. Mueller replied, If we didn't have macro-economics in play, I think it is safe to say we are on a sustainable trajectory. Jim Bognar, 807 W. Washington Street, stated, There has been much discussion and concern about lighting. I am not sure about the relationship between the lighting the City controls and the lighting that AEP controls. All of AEP's lights are listed with a code number that any citizen can report if the light is out. Has there ever been a desire to have the Street Department find these lights that are out?AEP doesn't seem to want to repair dim lights. There are so many areas that face this issue. Can we find a better way to work with AEP?I've also been concerned about the turnover in Community Investment. I'm also concerned with the consistency of the City Cemetery funding. Andre Stoner, 628 Cushing Street, stated, I am a neighborhood networker for the Near Northwest Neighborhood. We are gravely concerned about the issue of lead contamination. We are pleased to understand there will be $300,000 allocated to address that issue. Are there specific plans to use that money yet? Mr. Mueller replied, There is $100,000 set aside for lead abatement in EDIT and COIT Funds. There is $180,000 set aside for the Healthy Homes Initiative from Code Enforcement. We are also looking to potentially use some Federal Funds for an education outreach campaign. Sharon Banicki, 3422 Ford Street, asked, How is there an eighteen percent (18%) increase in payroll? Mr. Mueller replied, Most of that is due to the additions of the Historic Preservation. We have to allocate that money and we are then subsequently reimbursed by the County. Ms. Banicki followed up, So what is your bottom line on your raises for employees? Mr. Mueller replied, Overall, it is close to two or three percent(2% or 3%) with salaries, benefits, and mental health. Ms. Banicki then asked, There is an$85,000 line item to fix the Hall of Fame. Why are we still spending money to fix it when it was already sold? Mr. Mueller replied, We still own that property. There is a commitment to take ownership of that. 13 Ms. Banicki interjected, Will that ever be enforced? Mr. Mueller replied, Yes but the timeline has not been solidified. Mr. Murphy stated, The Hall of Fame will be paid off in February of 2018. Jose Arevelo, 105 E. Jefferson Boulevard, I have a concern about the City paying for curbs and sidewalks when it is the responsibly of the homeowners. And moreover, what about the homeowners that don't have that problem? I think we need to take a different approach to how we fund the maintenance of curbs and sidewalks. With no further discussion, Committee Chair White adjourned the Personnel and Finance Committee meeting at 7:02 p.m. Respectfully Submitted, � /0-A..e,,Karen White, Committee Chair 14