HomeMy WebLinkAbout09-18-06 Personnel & FinancePersonnel and Finance Committee Meeting
2006 South Bend Common Council
The September 18, 2006 meeting of the Personnel and Finance Committee of
the South Bend Common Council was called to order by Chairperson, Council
Member Charlotte D. Pfeifer, at 5:02 p.m. in the Council's Informal Meeting
Room.
Persons in attendance included Council Members Dieter, Pfeifer, Varner, Kuspa,
White, Rouse, Kelly, Rouse and Puzzello;, Mayor Stephen Luecke, City
Controller M. Catherine Fannello, City Attorney Charles Leone, Pam Meyer, Tom
Skarbek, Police Chief Thomas Fautz, Community and Economic Development
Executive Director Sharon Kendall, Mrs. Kopola, Elizabeth Leonard, Dennis
Andres, City Clerk John Voorde, Mary Ann Myers, Don Inks, Mikki Dobski Shidler
and Kathleen Cekanski-Farrand, Council Attorney.
Council Member Pfeifer noted that this Committee meeting is intended as a
catch-up meeting on the proposed 2007 city budget.
Common Council Fund # 1010301:
Council President Timothy A. Rouse read into the record a statement dated
September 18, 2006 and summarized its attachments which included a June 27,
2006 Action Memo entitled "Reminder Notice of 2007 Proposed Council Budget
Requests" and its attachments and the July 7, 2007 memorandum entitled
"Proposed 2007 Common Council Budget: Fund 101-0301 (Copies attached)
President Rouse concluded his remarks by stating he believes that the proposed
Council budget properly includes monies so that the Council can properly
balance its fiduciary and fiscal responsibilities with the growing amount of tasks
and responsibilities which will be asked of it in light of City Plan.
Council Member White voiced concern that the Council Members will get a base
salary increase of 1.75°/a while the full-time non-bargaining employees will be
getting no base salary in 2007 and will only a $750 supplemental pay. Council
Member White further noted that she could not support a new staff position .
Council President Rouse stated that the proposed budget does not include new
position since the current budget provides for apart-time staff position. He noted
that the Council will be playing a lead role in the aggregate in light of the
implementation of City Plan.
Council Member Kelly stated that he supports the 2D07 Council budget proposed
by Council President Rouse, noting that the work ahead will be tremendous. He
stated that it is better to be prepared so that the Council can handle the
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September 18, 2006
Page 2
voluminous amount of documents and research which will be asked of the
Council.
Council Member Puzzello stated that she supports the paralegal concept and the
other adjustments since those items have not been properly adjusted for a long
time. The Council needs to be prepared and be able to ga to classes and
conferences in order to be properly informed.
Council Member Dieter stated that the election expense line-item has to be
subject to much more detail being provided by the County, noting that he and the
Council Attorney have attempted to clarify past election expenditures with limited
success.
City Controller Fanello noted that she has had the same results but agrees that
more detailed information is needed from the Council Auditor before payment
would be made from this line-item,
Dr. Varner stated that over the years the need for more information has
increased resulting in more time that is necessary for such research. He has
always seen the need for an independent consultant . Dr. Vamer added that
having the funds to use in this regard would be reassuring and a diligent way to
use such funds properly. When budgetary concerns are raised, the Council
would have a mechanism available, noting that "the Council is running our
Council Attorney to death".
Council Member Pfeifer stated that she does not support hiring an individual and
would prefer a firm. She would consider having dollars available so that
professional, unbiased and independent work would be done by having such
financial resources.
Council Member Puzzello voiced concern that you could not get someone who
specialized in municipal law who worked for $15 an hour.
Council Member Kirists stated that having cash in reserve for legal advice may
be worthwhile, however he voiced concern that the Council Members are getting
a base salary increase when the non-bargaining employees are not. He
suggested keeping the legal funds if additional professional help is needed.
Council Member Kuspa noted that he has similar concerns as Council Member
White and Kirsits with regard to the Council receiving base salary increases while
the non-bargaining employees will not. He would support additional funding if the
Personnel and Finance Committee
September 98, 2006
Page 3
Council needed it for additional research, etc., noting that "the Council Attorney is
doing a beautiful job".
Council Member Dieter stated that he agrees with Council Member Kirsits
approach to letting the funds stay in the budget, and re-considering the Council
salaries for next year.
Council Member Kelly stated that he could "scratch his salary" and let those
funds be used as deemed needed by the Council; and would support more staff.
City Controller Fanello noted that the total of all Council raises for next year is
just about $2,000.
City Controller John Vaorde stated that he sees the need far additional money
for research, noting that his office has a need in this area also. He suggested
that the Council also consider approaching local universities for their assistance
for comprehensive studies, noting that IUSB"S Public and Environmental Affairs
in the past would provide data on specific topics.
The Council Attorney noted that she provided for each of the Council Members a
multi-page Council Attorney Annual Report, as she has done each year since
1995 {copy attached); noting that the Council President's Report was also
provided to each of the Council Members in preparation for today's review of the
Council's proposed budget {copy attached}. She added that the three {3) new
Council brochures developed this year should also be attachments to her annual
report {copy attached). The Council Attorney thanked the City Administration,
the Council Members and the City Clerk's for their support during the challenging
times her family has been experiencing the past two (2) months.
Miscellaneous Items:
City Controller Fannello noted that Tom Skarbek was providing additional
information on the parking garages which was requested at the last Personnel
and Finance meeting {copy attached).
Dr. Varner stated that in reviewing the proposed salary ordinance for the Mayor
and the City Clerk that there is quite a discrepancy in the two amounts. He
therefore reviewed several other Indiana cities and concluded that there basically
is a 3-2 ratio in salaries when comparing these positions. He then provided a
multi-page handout dated September 18, 2006 entitled "Proposed Adjustment far
the City Clerk Salary for 2007" to the Committee (copy attached}. He suggested
that the Clerk's salary could be adjusted over the next several years to meet this
Personnel and Finance Committee
September 18, 2006
Page 4
ratio and further suggested a $5,DD0 adjustment far the City Clerk for next year.
He Hated that we can expect a lot more from the Clerk and his staff and the
salary should be representative of those duties. He proposes this for the Council
consideration and asked Council Members to contact him if they needed further
information.
In response to a question from Council Member White, City Controller Fanella
stated that if the Council considered this request that it would result in reducing
the cash reserves.
Council Member Pfeifer asked City Clerk John Voorde to address Dr. Varner's
proposal.
Mr. Voorde stated that he appreciates the initiative proposed by Dr. Varner,
however he prefers that the Council consider what he initially proposed of a 2.5%
base salary increase for himself and his entire staff.
Rita Kapola of Lakeville, Indiana, voiced concern that she cannot address items
when copies are not provided to the public. (Dr. Varner provided a copy of his
proposal at that time).
Dr. Varner voiced concern that all budgets "get pushed together" when not all
budgets need to be acted upon by the Council by the September 3Dtt' deadline.
He added that the Department of Local Government Finance now reviews those
budgets that affect the tax levy, with other funds not needing action until
December 31St. Dr. Varner then passed out amulti-page handout entitled Bill No.
55-D6 Budgets for Enterprise Funds" (copy attached}. He noted that when
budget information is received later by the Council a "time crunch" is created.
Council Member Puzzello stated that she recalls that when she was previously
on the Common Council that the enterprise funds would be acted upon separate
from the general fund accounts; and that there was mare time for the Council and
the Administration to review all of the budgetary proposals.
Dr. Varner then passed out amulti-page handout entitle "Fund # 377 and the
CFHF" (copy attached}. He noted that he is currently working an a spread sheet
which he will share with the Council when he has it finished. He Hated that this is
a fund that does not need action Haw and that the Council could act on it before
December 31St, He noted that the Council must "watch all of the dollars because
budgets are tight, however this cannot be done in a small time frame". His
spread sheet will show that the cost to the city will exceed $1 million to the
Personnel and Finance Committee
September 18, 2(306
Page 5
College Football Hall of Fame, with the Joint Committee having control and not
the Council, as a result of the new administrative agreement.
Council Member Pfeifer asked what the benefit would be to separate some of the
funds for Council action, noting that she has had a hard time scheduling times far
the Council to meet and consider the proposed budget.
Dr. Varner stated that the Council has the responsibility to be good fiscal
stewards of all monies. The additional time would allow to the Council to carry
out their fiduciary duties. He also would like access to an accountant in
reviewing some of these proposed budgets.
Council Member White inquired why
independent audit, to which Dr. Varner
marked for additional legal work.
current funds were not used for an
stated he thought the funds were ear-
Council Member Dieter suggested that the funds that need further review that
can be acted upon after September 3Qt" be pulled out and that the Council have
a "lock-down" session similar to how the Council Retreats were handled
Council President Rouse stated that the City cannot function like it did ten (10)
years ago; that there are more meeting now; that more research is needed; and
that more not less is being asked, especially of the Council. He stressed the due
diligence requirements which the Council must carry out when reviewing
proposed legislation, and budgets in particular. He stated that if the Council goes
forward without the proper attention being paid to an item that "it will come back
to haunt you".
Council Member Dieter inquired whether there was an agreement with regard to
the use of the Hall of Fame's name for the Hall of Fame Game Day project.
Mayor Luecke stated that that would be between the NFF and Game Day;
however suggested that Rick Walls could answer that question.
City Controller M. Catherine Fannello confirmed that the enterprise funds do not
have to be passed by the September 30t", however most cities do address these
funds and salaries by September 30t". Separation of the funds would be difficult
for her office since they will begin working on the capital budget. She stated that
she would like to have input in these discussions. She noted that the debt
service fund regarding the Hall of Fame must be passed by the September 30t"
deadline.
Personnel and Finance Committee
September 18, 2006
Page 6
Council Member Kelly stated that he believes there is a need for further
discussions on the proposed amount requested by Project Future. He noted that
the South Bend Tribune editorial in yesterday's paper provides another
perspective on why this funding request is needed. Council Member Kelly stated
that "we are all in this together regarding economic development, a paint he has
stressed far many years".
Community and Economic Development Director Sharon Kendall pointed out that
Project Future brings contacts with proposed developers which are needed for
development in South Bend. She stated that Pat McMahon is committed to
reporting to the Council on a periodic basis. She believes that Project Future
works well for all of us and are needed in light of Gity Plan.
Council Member Dieter stated that he believes that the Project Future request
should be reviewed on a yearly basis. information from them has not been
received in the pact and their perception of the Council is one of ignoring such
requests. He agrees with Council Member Kelly that we must all work together,
but more discussion is needed before he could act on their request.
Dr. Varner stated that Praject Future's past record is one of success, however
he has many concerns with regard to haw it is structured in relation to MetroNet.
It appears that now "empire building" is taking place, and the lack of timely
information being provided to the Council is an ongoing and growing problem.
He stated that he believes the two (2) operations need to be operated
independently. He stated that Pat McMahon needed to be involved with one (1)
of these operations and not both.
Mayor Luecke stated that Mr. McMahon stated that he had checks for $350,000
with regard to MetroNet..
Council Member Kelly stressed the need to work hard to bring new businesses to
our community and believes that Project Future is a needed player.
Council Member Puzzello noted that she has talked with Pat McMahan and
debated him an several topics. She would vote in favor of their request for one
(1 }year because they are working well for South Bend. She does have concerns
about information not being forthcoming when requested and this must be
addressed.
Council Member Kuspa stated that in order to get industries and jobs to our
community that South Bend must use every means available in today's world.
He sees Project Future as going out scratching for the Gity, and believes that Ms.
Personnel and Finance Committee
September 18, 2006
Page 7
Kendall's Office does not have the time or the money to do that. He stated that
everyone who is successful has a team of people working far them behind the
scenes. Commitments to provide information to the Council have been a
problem. Council Member Kuspa suggested getting opinions from companies
who have chosen to locate in South Bend should be contacted to see what role
Project Future played in their overall decision to locate here. He would like to
know first-hand how Project Future has promoted South Bend, and company
representatives could provide that needed information to the Council. He would
support their request for next year.
Council President Rouse stated that he is very concerned about the perception.
In an article that appeared in the South Bend Tribune on Saturday, Mayor Rea
and Mayor Steve were quoted and it Hated that Mishawaka cut their contribution
to Project Future from $44,000 to $22,000. Their request for five (5) years is
being made in light of the additional fund-raising which they would have to do to
meet their projected budget demands. A one-year approach would raise
questions and perception problems of how much South Bend believes is
necessary to keep South Bend moving ahead with regard to development.
Council Member Pfeifer questioned the need for afive-year commitment via a
resolution.
Dr. Varner stated that afive-year statement in the resolution would be non-
binding.
Council President Rouse asked the Council Attorney to address this issue, to
which she stated that the resolution is basically a position statement of the
Council. 1n the draft resolution which she has seen there is a section which
would make any proposed appropriation subject to the city having the financial
capability for such an expenditure.
Council Member Kirsits stated that it would "be tough to support an increase for
Project Future when its Director makes more than our Mayor and the Mishawaka
Mayor's salaries being combined". He voiced concern that Project Future never
comes to the Council and requests input on proposed development ideas and
that they just come to the Council when they are asking for money. Council
Member Kirsits stated that he could support the current amount of $110,000 for a
single year, but is very concerned that Mishawaka is only willing to pay $22,000
next year.
Personnel and Finance Committee
September 18, 20n6
Page 8
Council Member Pfeifer asked City Clerk John Voorde to provide the Council with
information on what St. Joseph County will be doing with regard to Project
Future.
Council Member White stated that she would not support decreasing the amount
of support for Project Future. She stated she could support their request for next
year and would require them to come back each year and be responsive to the
Council.
Council Member Pfeifer stated that she could support their current funding for
one (1) year, however they must show to the Council that they have clear goals
and dialogue with the Council to meet our expectations. She added that she
would like their Board to "look like a 21st Century Board".
Council Member White and Varner both suggested that goals should be included
in any resolution which is proposed for Project Future funding.
Council Member Pfeifer than asked for comment from the public.
Eric Brown of East Oakside in South Bend stated that he was a member of the
Board of Trustees of Project Future far ten (10) years. During that period of time
he never saw their budget; never saw any of their audits; and never saw their
economic strategies, He agrees with Council Member Pfeifer that their Board
needs to be and look like a 21st Century Board. He suggested that the City take
a "hard look" at all of their operations.
Dr. Varner suggested that they should also be required in the body of the
resolution to provided their Form 990 as well as their yearly CPA audit report.
Phyllis Steele of Osceola stated that she is a realtor and suggested that the
Project Future request should be considered and cut.
Council Member Dieter stated that due to the many calls and emails which he
has received with regard to the proposed closing of the greenhouses and
conservatories by the Administration that the PARC Committee and the Zoning
and Annexation Committee will be holding a joint meeting to address this. The
Council should have received the letter which he and Council Member Kuspa
sent to the Park Board and the Park Superintendent. He also had the Council
Attorney request after that letter went out a copy of the Notre Dame Women
Engineering Student Report an energy efficiencies and all of the proposed dates
when the Park Board will be taking formal action on this.
Personnel and Finance Committee
September 'i 8, 2006
Page 9
Council Member Kuspa suggested that the Council is also in need of the casts
for needed repairs to the bailer etc., to which Council Member Dieter stated he
would also request.
Mayor Luecke stated that he believed that Phil St. Clair was presenting
information to the Park Board to declare the buildings obsolete.
Council Member Pfeifer suggested that the Park Board should consider a
program similar to how we loan zoo animals, with regard to the plants to places
like Fernwood until this matter is resolve. She stated that everything needs to be
looked at.
Dr. Varner noted that many of the plants could not travel because of their fragile
nature.
Council Member Kelly stated that he had relatives who visited the Greenhouse
and Conservatory recently and were very impressed with it. He stated that the
City must do its best to save it and find fundingt.
Council Member Kirsits stated that he believes in saving history. However he
was there on an incident and stated that parts of the place are "rough" with
leaking gas.
Council Member Pfeifer suggested that at least an hour be ear-marked for next
Monday's Personnel and Finance Committee meeting.
There being no further business to come before the Committee, Council Member
Pfeifer adjourned the meting at 6:30 p.m.
Respectfully submitted,
Council Member Charlotte D, P eifer, Chairperson
Personnel and Finance Committee
Attachments