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HomeMy WebLinkAbout01-24-11 Common Council Meeting Minutes REGULAR MEETING JANUARY 24, 2011 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, January 24, 2011 at 7:00 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 1 st District, President Thomas LaFountain 3rd District Ann Puzzello 4th District David Varner 5th District Oliver Davis 6th District, Vice-President Al "Buddy" Kirsits At-Large Timothy Rouse At-Large, Chairperson Committee of the Whole Karen L. White At-Large Absent: Henry Davis, Jr. 2nd District OTHERS PRESENT: Kathleen Cekanski-Farrand Council Attorney John Voorde City Clerk Janice I. Talboom Deputy City Clerk Mary Beth Wisniewski Chief Deputy REPORT FROM THE SUB-COMMITTEE ON MINUTES To the Common Council of the City of South Bend: The sub-committee has inspected the minutes of the January 10, 2011 meeting of the Council and found them to be correct. Therefore, we recommend the same be approved. s/Derek D. Dieter s/David Varner Councilmember Puzzello made a motion that the minutes of the January 10, 2010 meeting of the Council be accepted and placed on file. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. SPECIAL BUSINESS SPECIAL MEETING OF THE SOUTH BEND COMMON COUNCIL - 2011 STATE OF THE CITY ADDRESS Council President Dieter announced that the South Bend Common Council has called a special meeting of the Council on Monday, February 7, 2011 at 6:00 p.m., to be held at the Indiana University School of Medicine at Notre Dame, 1234 Notre Dame Avenue, South Bend, Indiana, for the sole purpose of hearing the Mayor's Annual Address. He stated that members of the public are cordially invited to attend this special meeting of the Council. 1 REGULAR MEETING JANUARY 24, 2011 RESOLUTION NO. 4074-11 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, EXPRESSING ITS WILLINGNESS TO DISCUSS AND EXPLORE FINANCING OF GOVERNMENTAL SERVICES WITH ELECTED OFFICIALS OF ST. JOSEPH COUNTY AND THE CITY OF MISHAWAKA, INDIANA TO A 2011 FINANCIAL SUMMIT Whereas, the Common Council of the City of South Bend, Indiana, notes that the Legislative Services Agency issued in July 2010, a 2010 Property Tax Report for St. Joseph County with Comparisons Between 2007 and 2010; and Whereas, the Council recognizes that that Report also shows the overall changes to property tax levies and property assessments, and also highlights changes which are unique to St. Joseph County and provides detailed information on tax rates, credit rates and net tax rates for homesteads by taxing district; Whereas, in light of the detailed information contained in that report which noted among other things that property tax levies increased 4.9% in St. Joseph County in 2010 which was more than the state average of 2.4%; while net tax bills for all taxpayers decreased 7.4% in St. Joseph County from 2009 and 2010 which was greater than the statewide reduction of 1.4%; and Whereas, the South Bend Common Council has repeatedly voiced concern over the effects of the recession on our local economy resulting in job losses; reduced construction opportunities; and how these have affected our residents and business owners; and Whereas, the Common Council believes that a 2011 Financial Summit would be in the best interests of the City of South Bend, Indiana. Now, Therefore, be it resolved, by the Common Council of the City of South Bend, Indiana, as follows: Section I. On behalf of all of the citizens of the City of South Bend, Indiana, the Common Council believes that improved dialogue among the elected public officials of South Bend, St. Joseph County and Mishawaka in these trying economic times would be fiscally prudent. Section II. The legislative branch of the City of South Bend, which is charged with overseeing the finances of the city with the City Administration, believes that in light of Indiana state law providing a mechanism to review decreasing various income generating devices such as county economic development income tax (CEDIT), which can only take place between March 31st through July 31st, a 2011 Financial Summit is in order. Section III. Upon the adoption of this Resolution by the South Bend Common Council, the sponsors, Council President Derek D. Dieter and Council Member at Large Timothy A. Rouse shall be authorized to begin setting a series of date(s), times(s) and location(s) so that such discussion may commence. Section IV. This Resolution shall be in full force and effect from and after its adoption by the Council and approval by the Mayor. s/Derek D. Dieter Member of the Common Council 2 REGULAR MEETING JANUARY 24, 2011 Councilmember Timothy Rouse, 605 N. Cherry Tree Lane, South Bend, Indiana, made the presentation for this bill. Councilmember Rouse read the Resolution in its entirety and advised that he and Council President Derek Dieter are proposing a 2011 Financial Summit. He noted that the South Bend Common Council, over the years, have held a series of Council Summits where Councilmember's have had the opportunity to share their concerns and discuss Council priorities. He advised that these individuals would have the opportunity for dialogue and discussion on financial concerns facing our communities. He stated that he and Council President Dieter believe that this would be a good first step in improving communication during these challenging economic times. A Public Hearing was held on the Resolution at this time. There being no one present wishing to speak to the council either in favor of or in opposition to this Resolution, Councilmember White made a motion to adopt this Resolution. Councilmember Varner seconded the motion which carried and the Resolution was adopted by a roll call vote of eight(8) ayes. BILL NO. 10-59 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, ADOPTING A WRITTEN FISCAL PLAN AND ESTABLISHING A POLICY FOR THE PROVISION OF SERVICES TO AN ANNEXATION AREA IN CLAY TOWNSHIP, STATE ROAD 23 AND MAPLE LANE ANNEXATION AREA Councilmember Kirsits made a motion to accept the substitute version of this bill. Councilmember Puzzello seconded the motion which carried by a voice vote of eight (8) ayes. Additionally, Councilmember Kirsits made a motion to strike Bill No. 10-59 from the Council Agenda at the request of the petitioner. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. REPORTS OF CITY OFFICES DEPARTMENT OF PUBLIC WORKS —UPDATE ON SNOW REMOVAL PROGRAM Gary Gilot, P. E., Public Works Director, 13th Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, gave his report to the common Council on recent snow control activities. Mr. Gilot advised that on January 8, 2011, South Bend received record snowfall. With about 25 inches of snow that day and over 40 inches total in the next few days it was a big snow control challenge. By most accounts the city team did a great job of pulling together and getting a big job done and done well. Let's examine what goes into a coordinated effective and efficient snow control response. Pre-planning was key, they used several weather services and our own weather reporting service in the Street Department to monitor weather predictions and patterns with 5 minute updates. Thanks to the South Bend Common Council we have a winter weather ordinance that establishes policy and procedures that the city follows in declaring snow emergencies and residential snow clearance conditions. It calls for main streets, first, then north south streets and then east west streets. Mr. Gilot stated that they have pre-arranged roles within the Street Department to cover leadership and supervision round the clock as winter conditions change hour to hour. They have crews on day and night shift in the winter and they go to 12 hour shifts when more than 2 inches of snow triggers snow control team effort. He stated that they have equipment that has been specified for interoperability with Gross Vehicle Weights and Suspensions and Drive Trains to handle snow plowing. The have 3 REGULAR MEETING JANUARY 24, 2011 proactive anti-icing and reactive de-icing game-plans and materials and equipment ready to roll. He stated that they can put a fleet of 60 trucks and experienced snow plowing drivers on the streets by tapping Traffic and Lighting, Sewers, Water, Organic Resources, Solid Waste/Code Cleanup, Parks and other resources when big storms hit South Bend— everybody knows the drill and the team does it well units call in and volunteer to help the Street department in a team culture that is impressive to behold. They have pre-arranged Equipment Services support around the clock whenever snow operations move to that condition. Whenever you have that many pieces of heavy equipment operating in tough winter conditions you have risk of breakdowns so mechanics are there and ready to turn around repairs quickly. Mr. Gilot advised on the execution of the snow control plan. He stated that the crews initially open the mains, it is logical to get the 160 miles of major arteries, the traffic volume corridors, bus routes, streets that have bridges and typically have counts sufficient to warrant traffic signals plowed first. Starting with minor residential first before this major grid of streets is open would be pointless as you can't get anywhere once you get out of the plowed minor street. They open with multiple trucks as these are wide multi-lane streets and each plow pass gets about 8 feet wide. He stated that they are starting to pilot a large front plow with a side wing plow that would let one truck do the work of two on really wide arterial streets, but they can't use that truck in congested areas or where on-street parking poses obstacles to the wing plow. During a snow emergency declaration by the Mayor, in accordance with the ordinance, there is no parking on mains (they are signed to clearly communicate no parking during snow emergency declared by Mayor,) and there is supposed to be no driving during this time unless a medical emergency. He noted that they had really heavy snow accumulation, 2 inches per hour and Public Safety was having challenges getting to emergencies. They set up communications for escort plows to break off plowing mains to get them as close as possible to calls stranded and abandoned vehicles that had ventured out and got stuck initially hindered operations. They worked around obstacles and conditions, but eventually towed some vehicles blocking the public way by police powers and after that moved snow birds by tagging and towing so snow clearance could be completed. Once mains are open they do residential streets. When there is a lot of snow like this January 8th storm, they do residential snow clearance announcement and work north-south streets the (in this case since it was odd numbered) day after mains (8a.m.- 8 a.m.) and then east west streets the next (even numbered date) day. This is to allow people to move parked cars to mains so they can clean and widen the residential streets. They work inner 2/3 days when most on street parking in inner city are away at work and they work out 1/3 where mostly garage and driveway parking during daylight hours. Parks department and others use 4x4 trucks with front plows to do cul-de-sac streets as these are better suited to this type of plowing than our tandem or even single axle plow trucks with under-body now blades. This amount of snow accumulation got to be too much for the 4x4 trucks. They ended up using loaders and other heavy equipment to work many cul-de-sacs. Narrow streets with many parked cars also posed a problem we could not get our plows through some narrow streets without risking damage to vehicles in tight situations. They ultimately got relief when snowbirds got dug out or when police had offending vehicles towed away. If conditions are dry ahead of a predicted snow storm they pre-apply about 30 gallons per lane mile of salt brine which will stay on the pavement and melt snow and ice from the bottom up. When the storm starts as rain and then freezes and snow starts, it washes the salt to the river so they don't pre-salt when antecedent conditions are forecast to be wet. If there is a small amount of snow, or they are making great progress clearing snow down to nearly bare pavement they do de-icing with salt brine and apply various combinations of pre-wet salt/sand and slag abrasive mixes to improve traction. When snow is coming down at an inch and hour it is just a waste of money to apply salt products until you make substantial headway on snow clearance. Mr. Gilot stated why apply it and throw it to the snow banks on the next plow pass!) Downtown snow clearance poses a unique challenge for the high building density, there is no place to pile the snow, and the parking and the high pedestrian activity. We put parks and other equipment helping downtown. Code crews get cross walks. Loaders and trucking are needed to haul the snow piles out of the downtown. We stage snow at several nearby locations for short haul but ultimately take a lot of this snow to a large city-owned stormwater basin near the ethanol plant. He stated that they have city crews who do city owned facility parking lots and bridge walks. They also have resources assigned to walks on city properties. They enlist city employee volunteers 4 REGULAR MEETING JANUARY 24, 2011 from Code inspectors and Engineering to shovel ADA ramps on walks and around fire hydrants a huge task that we can't do alone and have regularly put out the call to neighbors through the media to pitch in on these. They include media alerts on the importance of clearing sidewalks and helping elderly or physically challenged neighbors to clear walks especially in areas with lots of walkers like in proximity of schools. He stated that if you look at the volume and weights of snow they dealt with in public streets in South Bend as a result of this months record snowfall. He noted that they have 500 centerline miles of streets with an average width curb to curb of 40 feet. He stated that they have received 40 inches of snow over that area. That amounts to 1.3 million cubic yards of snow. Enough to cover 100 football fields 6 feet deep. He stated that is a lot of volume for the city plows to push. He stated that the water weight of snow is 150,000 tons. He stated to think of that as lifting a 200 pound person 1.5 million times. That is a lot of weight and work for the city snow plow people and equipment to push. Mr. Gilot stated that the economic impact of city snow control service cost a bit over a quarter million dollars in labor to handle a record accumulation of 40 inches of snow in about a week. That computes to $500 per mile cleared or about $12.50 per inch of snow per mile of City streets cleared. They have economies of scale, but this is a bargain for the job they did. Gas and wear and tear on equipment will take the public expenditure number for the storm higher, but not significantly so in the grand scheme of things. He gave an example to consider: With downtown alone employing 20,000 people at say an average annual wage of$40,000, one day's payroll impact is over $2 million. If a single day of productivity was lost in downtown alone, it would have cost the community 8 times what they spent to handle the storm quickly and effectively citywide. He stated to think about the daily economic activity in the entire city during a typical business day that counts on the city doing the services most folks take for granted (estimate citywide payroll impact at risk in a lost day of productivity due to a winter storm at 25 to 30 times what we spent on a record storm.) That is the level of economic benefit derived consideration that they want folks to think about and appreciate from a well run city government. The big picture economic point is Mayor Luecke through preplanning resources and approach and being there to lead/encourage the execution has made keeping the city running through big storm challenges a priority this teamwork multi-department approach and stubborn determination to keep the city open for business comes from the guy at the top and permeates the organization culture in South Bend. He stated that the Mayor makes that clear to him and to Sam Hensley. He emphasized that the city is counting on them to when he was speaking with the assembled crews at the Street Department Saturday during the early stages of the storm when the degree of snow accumulation was becoming clear. He authorized emergency measures over the weekend to have the city ready for business Monday morning and it was ready after a huge concerted effort. The team credits Mayor Steve with leadership and for support of the team with resources to do the job. Mr. Gilot thanked the Council again for approving those resources to enable us to work the effective plan. Effective government sometimes needs to be measured by what it saves the community rather than what it costs taken it that light city government services are an often under appreciated bargain. Mr. Gilot stated that the city workforce worked 12 and some 16 hour days from when the snow started falling until the city streets were all in good condition before returning to normal work weeks. Salaried supervisors worked those same hours without addition compensation. They have a competent and dedicated workforce who tackled a big complex task well. They pre- planned. They met as team and communicated across Public Works and Public Safety and Parks and they followed a good plan with strong implementation. The responded to change conditions and did some creative moves on the fly we flooded a hard hit Westside area with trucks for a while breaking out of our City quadrant and sub area squares methodology. He stated that they brought in contracted loaders and trucks to get downtown ready for Monday morning commerce while also giving neighborhoods the plowing resources they needed and deserved. He stated through it all Mikki Dobski was in over the weekend and continually through the storm response operation asking questions and getting updates and letting the public and media know progress and what would come next. Mr. Gilot stated that it all worked pretty well, but they always post mortem and look for ideas for continuous improvement. They did very well handling a record snowfall. He stated that they appreciate those who praised the plan and the execution by the team of dedicated employees and partners. He stated that it is their job 5 REGULAR MEETING JANUARY 24, 2011 but they really appreciate the occasional "thank you" for a big job well done. Mr. Gilot stated that they welcome positive constructive ideas for how to do even better next time. RESOLVE INTO THE COMMITTEE OF THE WHOLE At 7:35 p.m. Councilmember Oliver Davis made a motion to resolve into the Committee of the Whole. Councilmember Kirsits seconded the motion which carried by a voice vote of eight (8) ayes. Councilmember Rouse, Chairperson, presiding. Councilmember Rouse 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 Rouse stated that a brochure may be found on the railing in the Council Chambers explaining those procedures. PUBLIC HEARINGS BILL NO. 46-10 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, ANNEXING TO AND BRINGING WITHIN THE CITY LIMITS OF SOUTH BEND, INDIANA, AND AMENDING THE ZONING ORDINANCE FOR PROPERTY LOCATED IN CLAY TOWNSHIP, CONTIGUOUS THEREWITH; COUNCILMANIC DISTRICT 4, E. LEROY& PATRICIA YODER, 17904 STATE ROAD 23, SOUTH BEND, INDIANA 4663 5 Councilmember Puzzello made a motion to strike this bill from the agenda at the request of the petitioner. Councilmember Dieter seconded the motion which carried by a voice vote of eight (8) ayes. BILL NO. 68-10 PUBLIC HEARING ON A BILL AMENDING THE ZONING ORDINANCE FOR PROPERTY LOCATED AT 7233 U.S. 31 SOUTH, SOUTH BEND, INDIANA COUNCILMANIC DISTRICT 5, IN THE CITY OF SOUTH BEND, INDIANA Councilmember Kirsits, Chairperson, Zoning and Annexation Committee reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with a favorable recommendation. Derek Spier, Staff Planner, Area Plan Commission, 11th Floor County-City Buidling, 227 W. Jefferson Blvd., South Bend, Indiana, presented the report from the Commission. Mr. Spier advised that the petitioner is requesting a zone change from CB Community Business District to SF Single Family and Two Family District to allow a single-family residence. On site is an existing vacant single-family residence zoned CB Community Business District in the City of South Bend. To the north is a vacant commercial structure until recently occupied by an indoor softball/baseball training facility zoned CB Community Business District in the City of South Bend. To the east across U.S. 31 South is agricultural land and a single-family residence zoned R Single Family District in the County. To the south is the South Side Church of God zoned R Single Family District in the County. To the west is vacant land zoned CB Community Business District in the City of South Bend. The SF Single Family Residential District is established to protect, promote and maintain the development of single family dwellings as well as to provide for limited public and institutional uses that are compatible with an urban residential neighborhood. The availability of public facilities is required for 6 REGULAR MEETING JANUARY 24, 2011 development within this district. No site plan is required when rezoning to the SF 1 Single Family & Two Family Residential District. Mr. Spier stated that according to the historical aerial maps, a single-family residential structure has been located on this property since at least 1966. Until 2000 when the property was annexed into the City as C Commercial for a proposed large scale commercial development, it was zoned R Residential in the County. This proposed development never materialized. According to the petitioner, the existing single-family residence has not been occupied since the early 2000s. Since the prior legally established nonconforming use of the property has been discontinued for more than 12 consecutive months, the property has lost its legal non- conforming status. Therefore, this rezoning petition was submitted so that the existing house can once again be occupied as a residence. The site will continue to be served by an existing on-site septic system and well. According to APC records, the nearest municipal sanitary sewer and water are located on the west side of U.S. 31 approximately 40 feet and 900 feet north of the site, respectively. Due to its close proximity, the City of South Bend and/or the St. Joseph County Health Department may require connection to sanitary sewer upon failure of the existing on-site system. The City of South Bend Division of Engineering & Public Construction commented that sanitary sewer is available. The approximate 0.60 acre site is currently occupied by a vacant one-story residential structure and is the southernmost property along U.S. 31 South within the City of South Bend. The adjacent land uses along U.S. 31 south of Kern Road are primarily low-density rural residential (greater than 0.5 acre) or agricultural. The "A" Agricultural District within the county begins approximately one-half mile to the south. The most desirable use of the property is to continue to use the existing structure as a residence until such time that it can be included into a larger development project. As previously noted, this site was a part of a larger annexation and rezoning petition which included over 75 acres of land on the west side of U.S. 31 south of Kern Road. Surrounding property values should not be negatively affected since the proposed rezoning will revert the site to the prior residential zoning and use. The proposed use is responsible growth and development since it lies within a predominantly low-density residential and agricultural area. Since the proposed large scale commercial development was never constructed, the reversion of this individual property to single-family residential is compatible with the existing adjacent land uses. Mr. Spier noted that the staff recommends that the petition be sent to the Common Council with a favorable recommendation. This rezoning will allow for an existing vacant single-family structure to be renovated and used as a single-family residence. Single-family residential is compatible with the adjacent low-density residential and agricultural uses. Mr. Timothy Johnson, 18199 Stone Ridge, South Bend, Indiana, made the presentation for this bill. Mr. Johnson advised that he is seeking rezoning of the property at 733 U. S. 31 South so that they can occupy the property as a personal residence. 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 Dieter made a motion for favorable recommendation to full Council concerning this bill. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. BILL NO. 04-11 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA APPROPRIATING $60,000.00 FROM THE NONREVERTING LOSS RECOVERY FUND (#227) IN 2011 FOR THE CLOSURE AND REMOVAL OF TWO UNDERGROUND STORAGE TANKS AT CENTURY CENTER AND FOR FREDERICKSON PARK REMEDIATION 7 REGULAR MEETING JANUARY 24, 2011 Councilmember Puzzello, Chairperson, PARC Committee, reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with a favorable recommendation. Mr. Gary Gilot, Director, Public Works, 13th Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, made the presentation for this bill. Mr. Gilot advised that the purpose of this ordinance is to appropriate a total of$60,000.00 from the Nonreverting Loss Recovery Fund (#227), of which $55,000.00 is for the closure and removal of two underground storage tanks at Century Center, and an additional $5,000.00 for Frederickson Park remediation. Mr. Gilot stated that Century Center has two underground storage tanks that were previously used for heating oil storage for heat and diesel fuel for a generator. The tanks have become unnecessary and the City of South Bend would like to take the appropriate actions to complete the closure and removal of the tanks in accordance with local, state and federal guidelines. If the tanks are left in place they will continually deteriorate over time possible causing environmental contamination to the surrounding soils and to the St. Joseph river, which flows in close proximity to the site. If this contamination were to occur, the environmental cleanup and remediation costs would likely fare exceed the proposed tank closure and removal costs. The additional $5,000 to be appropriated is for data analysis, mapping and reporting twice during 2011 for Fredrickson Park Remediation monitoring and some specific parameter investigation. Any sums unspent from this appropriation will be released back into the Nonreverting Loss Recovery Fund. 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 Dieter made a motion for favorable recommendation to full Council concerning this bill. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. BILL NO. 05-11 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING $995,423 WITHIN PROFESSIONAL SPORTS DEVELOPMENT FUND (#377) Councilmember Puzzello, Chairperson, PARC Committee, reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with a favorable recommendation. Mr. Gregg Zientara, Controller, 12th Floor County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana, made the presentation for this bill. Mr. Zientara advised that the 2011 budget passed by the South Bend Common Council on October 24, 2010 did not include an appropriation in the Professional Sports Development Fund No. 377 ("PSDA Fund".) As more information is now known concerning the status of the College Football Hall of Fame for 2011, and with the recent Council approval of Coveleski Stadium Revenue bonds with repayment from PSDA revenue, it is now appropriate to establish the PSDA Fund budget for 2011. Mr. Zientara stated that a $500,000 payment to the College Football Hall of Fame for operating expenses. This transfer is funded by a pass-through of hotel/motel tax monies received from St. Joseph County in the amount of$494,325 and accumulated interest in the PSDA Fund in the amount of$5,675. The amounts of hotel/motel taxes paid to the College Football Hall of Fame were $530,137 in 2009 and $521,800 in 2010. The payments to the College Football Hall of Fame will be made on a pro-rata, monthly basis while the facility remains open and in operation. Next is a $100,000 transfer to the Century Center capital account for capital expenses. This amount is consistent with prior years and is 8 REGULAR MEETING JANUARY 24, 2011 scheduled to be transferred in June, 2011. These funds are maintained in a separate Century Center capital bank account and all capital expenditures are approved by the President of the Century Center Board of Managers and the City Controller. The 2011 capital budget for Century Center in the amount of$267,000 was approved by the Common Council on October 25, 2010. Mr. Zientara stated that a $395,423 payment for the initial debt service payment due on July 15, 2011 for the 2010 Coveleski Stadium Taxable Revenue Bonds that were approved by the Common Council on November 30, 2010. When the Coveleski Bond ordinance was approved, it was staed that PSDA revenue would be the funding source for repayment of the bonds and a cash projection was prepared demonstrating that sufficient funds would be available in the PSDA Fund to meet all debt service obligations. The final bond payment is due on January 15, 2019. 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 Dieter made a motion for favorable recommendation to full Council concerning this bill. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. BILL NO. 75-10 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING SECTIONS 2-8 AND 2-10 OF CHAPTER 2, ARTICLE 1 OF THE SOUTH BEND MUNICIPAL CODE ADDRESSING PROCEDURES GOVERNING THE COMMON COUNCIL Councilmember Oliver Davis made a motion to continue this bill until the February 14, 2011 meeting of the Council and refer back to the Information Technology Committee and Council Rules Committee. Councilmember White seconded the motion which carried by a voice vote of eight (8) ayes. 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 eight (8) ayes. ATTEST: ATTEST: John Voorde, City Clerk Tim Rouse, 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 7:51 p.m. President Derek D. Dieter presided with nine (9) members present. 9 REGULAR MEETING JANUARY 24, 2011 BILLS — THIRD READING ORDINANCE NO. 10069-11 AN ORDINANCE AMENDING THE ZONING ORDINANCE FOR PROPERTY LOCATED AT 7233 U.S. 31 SOUTH, SOUTH BEND, INDIANA COUNCILMANIC DISTRICT 5, IN THE CITY OF SOUTH BEND, INDIANA This bill had third reading. Councilmember Puzzello made a motion to amend this bill as in the Committee of the Whole. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. Additionally, Councilmember Puzzello 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 eight (8) ayes. ORDINANCE NO. 10070-11 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA APPROPRIATING $60,000.00 FROM THE NONREVERTING LOSS RECOVERY FUND (#227) IN 2011 FOR THE CLOSURE AND REMOVAL OF TWO UNDERGROUND STORAGE TANKS AT CENTURY CENTER AND FOR FREDERICKSON PARK REMEDIATION This bill had third reading. Councilmember White made a motion to pass this bill. Councilmember Oliver Davis seconded the motion which carried. The bill passed by a roll call vote of eight (8) ayes. ORDINANCE NO. 10071-11 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING $995,423 WITHIN PROFESSIONAL SPORTS DEVELOPMENT FUND (#377) This bill had third reading. Councilmember Puzzello made a motion to pass this bill. Councilmember Oliver Davis seconded the motion which carried. The bill passed by a roll call vote of seven (7) ayes and one (1) nay (Councilmember Varner.) RESOLUTIONS BILL NO. 10-57 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING A PETITION OF THE SOUTH BEND BOARD OF ZONING APPEALS FOR THE PROPERTY LOCATED AT THE SOUTHEAST CORNER OF MAPLE LANE AVENUE & STATE ROAD 23 Councilmember Varner made a motion to strike this bill from the Council Agenda per the request of the petitioner. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. 10 REGULAR MEETING JANUARY 24, 2011 RESOLUTION NO. 4075-11 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 3849 SHOWERLUX DRIVE AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF AN EIGHT (8) YEAR REAL PROPERTY TAX ABATEMENT FOR SBG REALTY, LLC WHEREAS, the Common Council of the City of South Bend, Indiana, has adopted a Declaratory Resolution designating certain areas within the City as Economic Revitalization Areas for the purpose of tax abatement consideration; and WHEREAS, a Declaratory Resolution designated the area commonly known as 3849 Showerlux Drive, South Bend, Indiana, and which is more particularly described as follows: This real estate is commonly described as: vacant land North of and adjacent to 4701 Nimtz Parkway, said property having frontage on Showerlux Drive, South Bend, Indiana 46628 and is legally described as follows: that part of the Southeast Quarter of Section 20 and the Southwest quarter of Section 21, both in Township 38 North, Range 2 East, German Township, City of South Bend, St. Joseph County, Indiana which is described as: Lot # 10A as shown on the plat of "H.G. Baus Centre-Phase One First Replat" subdivision recorded by Document No. 0746267 in the records in the Office of the Recorder of St. Joseph County, Indiana. Containing 5.54 acres more or less. Subject to all legal highways, easements and restrictions of record, and which has the Key Number 71-03-21-300-001.000-009, be designated as an Economic Revitalization Area; and WHEREAS, notice of the adoption of a Declaratory Resolution and the public hearing before the Council has been published pursuant to Indiana Code 6-1.1-12.1-2.5; and WHEREAS, the Council held a public hearing for the purposes of hearing all remonstrances and objections from interested persons; and WHEREAS, the Council has determined that the qualifications for an economic revitalization area have been met. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council hereby confirms its Declaratory Resolution designating the area described herein as an Economic Revitalization Area for the purposes of tax abatement. Such designation is for Real property tax abatement only and is limited to two (2) calendar years from the date of adoption of the Declaratory Resolution by the Common Council. SECTION II. The Common Council hereby determines that the property owner is qualified for and is granted Real property tax deduction for a period of eight (8) years, and further determines that the petition, the Memorandum of Agreement between the Petitioner and the City of South Bend, and the Statement of Benefits comply with Chapter 2, Article 6, of the Municipal Code of the City of South Bend and Indiana Code 6-1.1-12 et seq. 11 REGULAR MEETING JANUARY 24, 2011 SECTION III. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approved by the Mayor. s/Derek D. Dieter Member of the Common Council Mr. Ryan Rans, SBG Realty, LLC, 54401 26th Street, South Bend, Indiana, made the presentation for this bill. Mr. Rans advised that SBG Realty, LLC intends to construct a 50,000 square foot manufacturing facility which will be leased to South Bend Gear. South Bend Gear is a join venture between Schafer Gear Works, Inc. and Somaschini North America, Inc. formed in order to supply timing gears for Detroit Diesel Corporation which is a subsidiary of Daimler Corporation. The estimated cost of the building is $2,100,000. Mr. Rans stated that total taxes to be abated during the term are estimated at $233,063 and total taxes to be paid during the eight-year term are estimated at $267,464. He noted that per the petition, it is estimated that the project will create 12 new, permanent full- time positions in year one growing to an expected 26 positions by year two. The new annual payroll in year one will be $605,000 growing to an expected payroll of$1,300,000 by year two. A Public Hearing was held on the Resolution at this time. There being no one present wishing to speak to the Council either in favor of or in opposition to this Resolution, Councilmember White made a motion to adopt this Resolution. Councilmember Oliver Davis seconded the motion which carried and the Resolution was adopted by a roll call vote of eight (8) ayes. BILL NO. 11-04 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOW AS 3425 WEST LATHROP DRIVE TO BE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FIVE (5) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR MCCORMICK& COMPANY, INC BILL NO. 11-05 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 3425 WEST LATHROP DRIVE AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF AN EIGHT (8) YEAR REAL PROPERTY TAX ABATEMENT FOR MCCORMICK AND COMPANY, INC. Councilmember Varner made a motion to combine Bill Nos. 11-04 and 11-05 for purpose of Public Hearing. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. 12 REGULAR MEETING JANUARY 24, 2011 RESOLUTION NO. 4076-11 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOW AS 3425 WEST LATHROP DRIVE TO BE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FIVE (5) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR MCCORMICK& COMPANY, INC. WHEREAS, the Common Council of the City of South Bend, Indiana, has adopted a Declaratory Resolution designating certain areas within the City as Economic Revitalization Areas for the purpose of tax abatement consideration; and WHEREAS, a Declaratory Resolution designated the area commonly known as 3425 West Lathrop Dr., South Bend, Indiana, and which is more particularly described as follows: 8.44 AC Tract; Mid PT S Side SE 1/4 Beg 990' W & 40' N of SE Cor SE SEC 28-38-2E. and which has Key Number 025-1010-0403.01, as an Economic Revitalization Area; and WHEREAS, notice of the adoption of a Declaratory Resolution and the public hearing before the Council has been published pursuant to Indiana Code 6-1.1-12.1-2.5; and WHEREAS, the Council held a public hearing for the purposes of hearing all remonstrances and objections from interested persons; and WHEREAS, the Council has determined that the qualifications for an economic revitalization area have been met. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council hereby confirms its Declaratory Resolution designating the area described herein as an Economic Revitalization Area for the purposes of tax abatement. Such designation is for Personal property tax abatement only and is limited to two (2) calendar years from the date of adoption of the Declaratory Resolution by the Common Council. SECTION II. The Common Council hereby determines that the property owner is qualified for and is granted Personal property tax deduction for a period of five (5) years, and further determines that the petition complies with Chapter 2, Article 6, of the Municipal Code of the City of South Bend and Indiana Code 6-1.1-12 et seq. SECTION III. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approved by the Mayor. s/Derek D. Dieter Member of the Common Council 13 REGULAR MEETING JANUARY 24, 2011 RESOLUTION NO. 4077-11 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 3425 WEST LATHROP DRIVE AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF AN EIGHT (8) YEAR REAL PROPERTY TAX ABATEMENT FOR MCCORMICK AND COMPANY, INC. WHEREAS, the Common Council of the City of South Bend, Indiana, has adopted a Declaratory Resolution designating certain areas within the City as Economic Revitalization Areas for the purpose of tax abatement consideration; and WHEREAS, a Declaratory Resolution designated the area commonly known as 3425 West Lathrop Drive, South Bend, Indiana, and which is more particularly described as follows: 8.44 AC Tract; Mid PT S Side SE 1/4 Beg 990' W & 40' N of SE Cor SE SEC 28-38-2E. and which has Key Number 025-1010-0403.01, as an Economic Revitalization Area; and WHEREAS, notice of the adoption of a Declaratory Resolution and the public hearing before the Council has been published pursuant to Indiana Code 6-1.1-12.1-2.5; and WHEREAS, the Council held a public hearing for the purposes of hearing all remonstrances and objections from interested persons; and WHEREAS, the Council has determined that the qualifications for an economic revitalization area have been met. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council hereby confirms its Declaratory Resolution designating the area described herein as an Economic Revitalization Area for the purposes of tax abatement. Such designation is for Real property tax abatement only and is limited to two (2) calendar years from the date of adoption of the Declaratory Resolution by the Common Council. SECTION II. The Common Council hereby determines that the property owner is qualified for and is granted Real property tax deduction for a period of eight (8) years, and further determines that the petition, the Memorandum of Agreement between the Petitioner and the City of South Bend, and the Statement of Benefits comply with Chapter 2, Article 6, of the Municipal Code of the City of South Bend and Indiana Code 6-1.1-12 et seq. SECTION III. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approved by the Mayor. s/Derek D. Dieter Member of the Common Council 14 REGULAR MEETING JANUARY 24, 2011 Mr. Michael Calhoun, McCormick and Company, Inc., 3425 West Lathrop Drive, South Bend, Indiana, made the presentation for these bills. Mr. Calhoun advised that on July 26, 2010, the Common Council approved Designating Resolutions for real and personal property tax abatements for the subject firm. The property will be located at 3425 West Lathrop Drive. At the time the Designating Resolutions were considered they had not completed the list of construction contractors and suppliers for its proposed project as called for in the real property petition forms. In approving the Designating Resolution for real property it was noted that they could qualify for up to a nine-year abatement term. He noted that they agreed to provide the required information prior to the Council considering its real property confirming Resolution. Consideration of the Confirming Resolutions for both tax abatements was held in abeyance pending receipt of the required information. Mr. Calhoun stated that they have now completed the list of contractors and suppliers for construction of the addition and submitted it. He stated that after review by the Department of Community & Economic Development it was determined that the project qualifies for an eight (8) year real property tax abatement. Mr. Calhoun stated that however, due to an increase in customer demand they had to enlarge the project. The project originally entailed the construction and equipping of a 50,000 square foot addition to the manufacturing facility. The cost of construction was estimated at $5,010,913 and equipment procurement was estimated at $875,173 for a total project cost of$5,886,086. The equipment includes fork lifts, coolers, racking, computers and furniture and fixtures. The addition is intended to house a distribution operation for the products McCormick makes. The products include condiments (ketchup, mustard, salad dressing, etc.) for major restaurant chains. During initial discussions the company was also considering alternate sites in Michigan Illinois and other states to locate the distribution operation. After the Designating Resolutions were approved McCormick selected South Bend. Since then an increase in business volume from their main customers has caused the company to increase the size of the project by adding 25,000 more square feet to the addition at a cost of $884,071 and providing more equipment at a cost of$487,000. The revised cost of construction is now estimated at $5,894,984 and the equipment procurement is estimated at $1,362,173 for a new total project cost of $7,257,157. However, the goals and objectives of the project remain the same as those originally presented for the Designating Resolutions. Based on an eight-year term the total estimated real property taxes to be abated on the revised project are $784,181. Total additional real property taxes to be paid as a result of the revised project during the eight-year abatement period are estimated at $868,820. For the equipment, the total estimated personal property taxes to be abated on the revised project during the personal property five-year abatement term are $10,073. Total additional personal property taxes to be paid as a result of the revised project during that same term are estimated at $103,084. Mr. Calhoun stated that the total project will create five (5) new, permanent, full-time jobs within the first year of the project representing a new annual payroll of approximately $177,247. The project will retain one hundred twenty- three (123) existing permanent, full-time jobs (of which 30 are minority employees) with an annual payroll of$6,288,998. A Public Hearing was held on the Resolutions at this time. There was no one present wishing to speak in favor of the Resolutions at this time. The following individuals spoke in opposition to the Resolutions: Mr. Murray Miller 1201 Priscilla Drive, South Bend, Indiana, spoke in opposition to the Resolutions. Mr. Miller advised that they were not using a local construction company. Mr. Kevin Wildes, representing the Plasterers, Masonry Union, stated that the materials being used are coming from Michigan and not Indiana. He also questioned why they were not using local people for the construction. 15 REGULAR MEETING JANUARY 24, 2011 In Rebuttal, Mr. Calhoun advised that they have a general contractor who bid out and due to budgetary constraints and time constraints they got the best they could. He stated that they urge the general contractor to use local contractors, but the specifications could not be met locally. Councilmember Oliver Davis questioned if this has been part of the history with the unions. Councilmember Rouse stated that they are currently in the process of revising the Tax Abatement Ordinance. He advised that it is a work-in-progress and that this issue of labor concern is being address in the revision of that ordinance. Councilmember Varner advised Mr. Miller and Mr. Wildes that he would like to have their requests from the Unions in writing so that when the Tax Abatement Ordinance is being revised those issues can be addressed. Councilmember Puzzello made a motion to adopt Bill No. 11-04. Councilmember Oliver Davis seconded the motion which carried and the Resolution was adopted by a roll call vote of eight (8) ayes. Councilmember Varner made a motion to adopt Bill No. 11-05. Councilmember Rouse seconded the motion which carried and the Resolution was adopted by a roll call vote of six (6) ayes and two (2) nays (Councilmember's LaFountain, Oliver Davis.) Council Attorney Kathleen Cekanski-Farrand advised that there is a scrivener's error on the Council's Agenda, under Bills, First Reading, Bill No. 06-11 should be Bill No. 11- 07. Bill No. 11-07 is a Resolution and should be heard tonight. RESOLUTION NO. 4078-11 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING THE ISSUANCE OF SCRAP METAL/JUNK DEALER/RECYCLING OPERATION LICENSES FOR CALENDAR YEAR 2011 PURSUANT TO SECTION 4-51 OF THE SOUTH BEND MUNICIPAL CODE WHEREAS, Section 4-51 of the South Bend Municipal Code sets forth the regulations addressing the licensing of scrap metal dealers, junk dealers and recycling operations; and WHEREAS, on March 30, 2011 the Ordinance Violation Bureau Clerk provided written notice to the City Clerk that the following businesses: A-1 Auto Parts 2014 S. Lafayette Blvd. Alternative Two LLC 700 W. Chippewa Gertrude Street Metal 3700 S. Gertrude St. Green Tech Transfer 2500 Greentech Dr. Indiana Auto Parts 3300 S. Main St. LKQ Auto Parts 1602 S. Lafayette Blvd. OmniSource Corp. 7575 W. Jefferson Blvd. Schrock Aggregate Inc. 1702 N. Bendix Dr. Shapiro Metals 2920 W. Sample St. Steve & Gene's 3109 Gertrude St. Treadstone LLC 445 N. Sheridan St. US Scrap LLC 1420 S. Walnut St. US Scrap/SB Bailing 1420 S. Walnut St. US Scrap & Recycling 1610 Circle Ave. US Scrap & Recycling 1700 W. Washington St. US Scrap & Recycling 2014-2016 W. Washington St. 16 REGULAR MEETING JANUARY 24, 2011 have been approved for Scrap Metal Dealer, Junk Dealer, Transfer Station, Recycling Operations Licenses for the year 2011. WHEREAS, the license applications for all above-referenced businesses received favorable recommendations from the Department of Code Enforcement, Police Department, and the Fire Prevention Bureau. NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, as follows: Section I. The license applications for the following businesses: A-1 Auto Parts 2014 S. Lafayette Blvd. Alternative Two LLC 700 W. Chippewa Gertrude Street Metal 3700 S. Gertrude St. Green Tech Transfer 2500 Greentech Dr. Indiana Auto Parts 3300 S. Main St. LKQ Auto Parts 1602 S. Lafayette Blvd. OmniSource Corp. 7575 W. Jefferson Blvd. Schrock Aggregate Inc. 1702 N. Bendix Dr. Shapiro Metals 2920 W. Sample St. Steve & Gene's 3109 Gertrude St. Treadstone LLC 445 N. Sheridan St. US Scrap LLC 1420 S. Walnut St. US Scrap/SB Bailing 1420 S. Walnut St. US Scrap & Recycling 1610 Circle Ave. US Scrap & Recycling 1700 W. Washington St. US Scrap & Recycling 2014-2016 W. Washington St. are approved in conformity with South Bend Municipal Code Section 4-51 and based upon the satisfactory review and inspection of the properties by the Department of Code Enforcement, Police Department, and the Fire Prevention Bureau as evidenced by the Ordinance Violation Bureau Clerk's communication to the City Clerk dated March 30, 2011. Section II. This Resolution shall be in full force and effect from and after its adoption by the Council and approval by the Mayor. s/Derek D. Dieter Member of the Common Council Councilmember LaFountain, Chairperson, Personnel and Finance Committee, reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with a favorable recommendation. City Clerk John Voorde, 4th Floor County-City Building, 227 W. Jefferson Boulevard, South Bend, Indiana, made the presentation for this bill. City Clerk Voorde advised that renewal application for the operation of Scrap Metal/Junk Dealers/Recycling Operations have been received. They were submitted to the Police Department, Fire Inspection Bureau, and the Department of Code Enforcement for inspection and have received favorable recommendations. The only exception is A- lAuto. The business is currently dormant and up for sale. The Police Department has issued a conditional approval as long as the business remains closed. The owner has been advised to contact the police department if they decide to re-open or sell the business. 17 REGULAR MEETING JANUARY 24, 2011 A Public Hearing was held on the Resolution at this time. There being no one present wishing to speak to the Council either in favor of or in opposition to this Resolution, Councilmember Varner made a motion to adopt this Resolution. Councilmember Rouse seconded the motion which carried and the Resolution was adopted by a roll call vote of eight(8) ayes. BILLS —FIRST READING There were no bills for First Reading at this time. UNFINISHED BUSINESS REPORT FROM AREA PLAN COMMISSION A scrivener's error on the Council Agenda the following Bill 01-11 should be numbered Bill No. 02-11 as was published on the Council's January 10, 2011 Agenda. BILL NO. 02-11 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 21, ARTICLE 12, FLOODPLAIN REGULATIONS IN ORDER TO MAKE CORRECTIONS IN ORDINANCE NO. 1003 7-10 Councilmember Rouse made a motion to refer this bill to the Zoning and Annexation Committee and set it for Public Hearing and Third Reading on February 14, 2011. Councilmember Oliver Davis seconded the motion which carried by a voice vote of eight (8) ayes. NEW BUSINESS There was no new business to come before the Council at this time. PRIVILEGE OF THE FLOOR There was no one present wishing to speak to the Council at this time. ADJOURNMENT There being no further business to come before the Council, President Derek D. Dieter adjourned the meeting at 8:15 p.m. ATTEST: ATTEST: John Voorde, City Clerk Derek D. Dieter, President 18