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HomeMy WebLinkAbout08-15-18 Personnel and Finance (#3) U C'? \PEACES a x R 1865 OFFICE OF THE CITY CLERK KAREEMAH FOWLER, CITY CLERK PERSONNEL &FINANCE AUGUST 15, 2018 5:00 P.M. Committee Members Present: Karen White, John Voorde, Regina Williams-Preston(late) Committee Members Absent: Gavin Ferlic Other Council Present: Jake Teshka, Sharon L. McBride Other Council Absent: Tim Scott, Oliver Davis, Jo M. Broden Others Present: Kareemah Fowler, Graham Sparks, Bob Palmer Presenters: Eric Horvath, Therese Dorau, Kara Boyles, Jitin Kain Agenda: Public Works Department 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 Department Eric Horvath,Director of Public Works with offices on the 13th floor of the County-City Building, stated,Thank you,Council Members.Hopefully we will have some dialogue and you all will better understand what Public Works does. We will go over the highlights of our budget as well as the changes we are looking at in 2019. Our mission is to build a foundation for a thriving City. Essentially, we provide the most basic and fundamental household services and focus on enhancing people's quality of life. We also develop assets and infrastructure that helps support that mission. One (1) of the things I like to say is just imagine a day without Public Works, right? You wake up and you go to brush your teeth, you turn on the water but it doesn't come on, you can't take a shower, can't flush the toilet and you walk outside to get in your car and you see the trash and yard waste in a pile on the curb because it hasn't been picked up. You then drive on a bumpy road to work with the streetlights flashing red. You may get the picture that we are the really critical and most basic operations. We are very important for people's everyday living and quality of life. He continued,So our organization is broken down into five(5)different divisions. With me is Jitin Kain who is our Deputy Director and Kara Boyles who is our City Engineer. They will help with the presentation(which is available in the City Clerk's Office). We also have Therese Dorau here who is our Director of Sustainability. We have Kim Thompson who is our Deputy Director of Utilities which is our Water and Wastewater utility. We have Kelly Smith who is our Director of Solid Waste. We also have Pete Kaminski from our Streets and Sewers Division and Shaun Ward. INTEGRITY1 SERVICES ACCESSIBILITY JENNIFER M.COFFMAN BIANCA L.TIRADO JOSEPH R MOLNAR CHIEF DEPUTY/DIItECTOR OF OPERATIONS DEPuTy/DIREcroR OF POLICY ORDINANCE VIOLATION CLERK EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227 W.Jefferson Blvd.I South Bend,Indiana 466011 p 574.235.92211 f 574.235.9173 1 www.southbendin.gov ®CITY OF SOUTH BEND I OFFICE OF THE CLERK Also, Terry Swift, Ron O'Connor and Roxanne Lawson are our fiscal officers. Jeff Weaver is our Director of Information Systems and Kieran Fahey is our Long-Term Control Plan Director. We also have here Kara Grabowski who is our Director of Marketing. Feel free to ask any questions of any of us. What we do, in a nutshell, is maintain over 2,200 lane miles of streets,remove about 29,000 tons of trash each year and about 13,000 tons of yard waste. We maintain over seven hundred (700) miles of sewers, five hundred eighty (580) miles of water main, one hundred and sixty (160) signalized intersections and 3,000 street lights that we maintain. In addition, we work with AEP on about 20,000 more street lights.Now we have 10,000 catch basins and inlets we have to keep clean and maintained. We have about four hundred (400) miles of alley and almost 5,000 fire hydrants. He went on,Here(referencing the presentation) are the numbers for staffing. You can see,in 2018, one (1) person, our Sustainability Office. Currently, we have twenty-one (21) in Engineering, twenty-four (24) in Solid Waste, ninety-six (96) in Streets and Sewers and one hundred nineteen (119) in Utilities. I will say that our proposal for 2019 is changing this. Engineering will still be twenty-one (21) but we are looking to move the Director of Information Systems to IT and are looking to add a Project Inspector position. On Streets and Sewers, we are looking to add four(4) people who will do various functions of relief such as adding curbs and sidewalks, crack sealing and snow plowing. In addition, we will talk a little bit about our new AmeriCorps Grant. That is the South Bend Home Corps. and the Office of Sustainability.That will be two(2)full-time people running that program and ten (10) full-time members will be in that program. So that is an additional twelve (12) people that are partially funded by that grant and partially funded by the appropriation made by the Council. So currently two hundred sixty-one (261) and proposed two hundred sixty-five (265) and that is not counting the grant funding positions. Comparatively, if you go back about fifteen (15) years, Public Works was about three hundred and seventy (370) employees. It was right around three hundred and thirty(330) employees about ten(10)years ago. So we are down significantly from those numbers but we have asked for some additional folks in the 2019 budget to meet some really specific needs we have. He continued, I want to thank you for our Director of Marketing position. I cannot tell you how helpful that has been this I had not realized how helpful it would be until we actually got someone in the position and had them start doing some of this stuff. In terms of just being able to get increased public education and outreach on all the various programs we run, it has been hugely helpful to help promote those programs. Committeemember Regina Williams-Preston arrived at the meeting at 5:09 p.m. Mr. Horvath went on, We've been able to do a lot of social media stuff including brochures. We are doing a much better job getting the word out about what we do and, specifically, how people can access those services. It is really important that people understand what services are available to them and how they can access them. He continued, So now I would like to talk about some things we have heard from the Council and the community at large in terms of priorities. These are things we have thought very heavily about as we were going through this budget process. Curbs and sidewalks come up most every year. We have over seven hundred and fifty (750) miles of sidewalk in our City. When you look at the condition analysis and how many poor and very poor sidewalks we have in the City,we have over one hundred and twenty(120)miles of sidewalk that meet that poor or very poor condition rating. EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION ( EMPOWERMENT 455 County-City Building 1227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 f574.235.9173 T 0574.235.55671 www.southbendin.gov 2 CITY OF SOUTH BEND I OFFICE OF THE CLERK To put that in dollars, that would be about$38 million worth of sidewalk construction to get all of those up to speed. So obviously we are fully making a dent in that. We have been helped significantly by some Federal dollars as well as our Safe Routes to Schools Program. We worked with Council to increase the allocations and the amount of curbs and sidewalk we are doing every year. We continue to push that every year. Street paving and pot holes is another priority. According to the community survey, these are important to the residents and they also feel like they are not being addressed well enough. So we feel like these things have to be a top priority for us in 2019. Street paving, again, we have about one hundred (100) miles of street that, when we look at the PACER Rating,are a four(4)or below. That is the level at which we will start repaving the road. It is one hundred (100) lane miles. That is about$10 million dollars of paving work. He went on, Streetlights are an ongoing issue. Light Up South Bend has been a big partnership program with the Council. That program attempts to convert the streetlights to LEDs as well as adding new lights. We have some solar lamp posts as well. Traffic calming in neighborhoods is another priority. We opened that door up a couple years back because we were getting a lot of requests from neighborhoods as people were speeding through. We've put an emphasis on trying to figure that out. After we've done a couple of them, there are more requests. There is a huge backlog of requests for traffic calming in neighborhoods. We are doing our best to try and get caught up on that so you will see some additional funding in this year's budget to help us address some of those issues. And then street sweeping and drainage issues were also on the list. The drainage issue is something that continues to come up as a high priority for the community. It is something that we have a proposal on establishing a storm water utility rate. It is a huge issue in the City and is in most areas because it's a hidden utility. It is underfunded like a lot of our other long-term assets are. In this particular case for South Bend, it's not really underfunded as it is just unfunded. So there is no dedicated fee for storm water. The majority of cities have specific fees for storm water. In the past years,we have taken money from other dedicated funds and have used them for storm water. Most commonly, we've taken road dollars or wastewater dollars. So before I start talking about sustainability, are there any general overview questions at this time? Committee Chair White asked, In regards to AEP, I want to make sure I have the number correct, that is 20,000? Mr. Horvath replied, Yes, and I will get you an exact number. It may be a little less than that because I think it is 20,000 total and we maintain about 3,000. Committee Chair White followed up, And what is the maintenance process when lights are out that are owned by AEP? Mr. Horvath replied, In short, we've got a process where we determine if it is a City light or if it is an AEP light. Then a work order system is in place to follow up with AEP to get them to fix it. One (1) of the difficulties you have is sometimes it is not an easy fix, regardless of it being a City or an AEP light. Some people get frustrated and think it is as easy as changing the light bulb. It might actually be more electrical. I know there are a couple outstanding areas we are trying to address issues. The general process is that 311 will make sure it will get taken care of, whether it is AEP or the City, and that should be a pretty short turnaround time. Committeemember John Voorde asked, Did I hear correctly four(4) additional people in Streets? EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION EMPOWERMENT 455 County-City Building''227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221,f574.235.9173 TTD574.235.5567 www.southbendin.gov 3 CITY OF SOUTH BEND I OFFICE OF THE CLERK Mr. Horvath replied, Yes,that is correct. That is in our proposal for 2019. Committeemember Voorde followed up, Are they supervisory? Mr. Horvath replied, We get to answering that question later on in our presentation. Councilmember Sharon L. McBride stated, I have a compliment. I did go through the 311 system to assist someone with a light outage. I had good response both from the City and AEP. Within a week they had it repaired. AEP kept calling me to update me on what they were doing. The only thing that did not correlate was the 311 work order number didn't coincide with AEP. So it took them two (2) days for them to try and find out what was what. I want to commend you all for that. Committeemember Regina Williams-Preston asked, How much does it cost to put in a speed hump? Mr. Horvath replied, I can give you a rough cost. It is around $20,000 but it really depends on the road and drainage issues that are specific to that area. I think in some of the areas that are more proficient in doing them, you'll probably see numbers in the $10,000 to $12,000 range. We contract that out. Mr. Horvath continued, So now we are going to talk about sustainability,it is our office of one(1). As an office of one (1), Therese works really hard to make a big impact. We are trying to be a catalyst of helping make things happen. She has driven a number of projects and really has had some significant contributions for being such a small office. Her goals, as you can see(referencing a slide of the presentation) include helping all departments to think about sustainability on an ongoing basis in everything they do. We hope sustainability becomes a business-as-usual concept for us. We want to constantly think about the environmental impacts our construction has. She works hard to do that beyond just the City Government and in the South Bend community as a whole. She works with the Green Ribbon Commission which is a group that goes out to get greater awareness for sustainability in the community. There are a couple big things we are working on that look at our Green House Gas emissions and how that relates to Climate Change. We are trying to prepare for the impact of climate change in the community. Whether that is resiliency stuff or even heat change stuff, it's probably not a coincidence that in the short time I've been here we had a 1,000 year rain event and a five hundred (500) year flood. So engineers are going to try and figure out what that means in the future as the intensity changes. Those impacts are changing. We will have money in the sustainability budget to address this. We will start working on the climate change plan and I know the Council is wanting to do something in terms of policy on climate change. We look to work hand in hand on that in 2019. He went on,We also intervened in the I&M Rate Case.There were things we wanted to see happen not just for the environmental benefit but also to limit the impact to our residents, specifically our low-income folks. Through our intervention and we had other intervening partners with us, we were very successful. The rate they proposed was a nineteen point seven percent(19.7%)increase. The approved rate by IURC was seven point three percent (7.3%). The fixed portion of that for residential was ten dollars and seventy cents ($10.70) and that was lowered to three dollars and twenty cents ($3.20) as approved by IURC. So we were able to significantly reduce the impact on the resident's electric bills, especially to our low-income residents. That was no small matter as it was quite the undertaking. EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173 1 TTD574.235.5567 lwww.southbendin.gov 4 ®CITY OF SOUTH BEND I OFFICE OF THE CLERK He continued, We also established our first (I") public electric vehicle charging stations in South Bend. They are right out by the County-City Building. Something we are continuing to promote is cleaner burning fuels in vehicles. We are committed to the Global Covenant of Mayors for Climate Change and Energy. We have signed onto a few other climate partners. We have continued to provide leadership on climate waste and sustainability throughout the area. And then, as I briefly mentioned, the South Bend Home Corps. was able to get a$150,000 grant to start that up. You'll see in the budget that the facilities, energy management and guest electric bills will all stay in the Central Services Fund. We've split those out. Sustainability used to have two (2)people in it. One (1)person moved last year to facilities management. So that portion will be split out of the budget and will stay in Central Services. Sustainability and the AmeriCorps Program will stay in the General Fund. So that is where it is funded for 2019. He went on, We also have in the budget, you'll see $70,000 for technical support. One (1) is for the climate change plan and the second (2nd) one (1) is the streetlights, the AEP streetlights. That is trying to get them to convert over to LEDs or find some way that perhaps we even take them over and convert them to LEDs. It will be an undertaking to try to figure out what the best route is and then try to move forward with that in 2019. The South Bend Home Corps. is our AmeriCorps program. That will hit two hundred (200) low-income homes. We are going to work with home owners to help better understand their energy and water uses so we can help them reduce those costs. So we will do things like weatherization, a little salt, programmable thermostats, low flow aerators and tanks on toilets and things like that so they can reduce their water and sewer bill. Hopefully they will see savings on their electric, heat, water, sewer and all the way around. In addition to that, we will look at life safety issues such as radon and lead in the homes. We will work with partners to try and address those as well. Are there any questions on sustainability? Councilmember Jake Teshka asked, The Office of Sustainability is taking a huge hit on their IT allocation. What is the formula or rationale behind that? It is like eleven point three percent (11.3%) of the total budget. Mr. Horvath replied, I don't know specifically but I can get that for you for sure. So when you look at the IT allocations, it is really broken down as to where those costs came from. It has a number of different elements. One (1) element is the 311 piece. For Water and Sewer you will see those are pretty high because they get the majority of 311 calls. Then we've got some of the IT specific needs like computers and stuff like that. Therese Dorau, Director of Sustainability with offices on the 13th floor of the County-City Building, stated, I would say the IT budget just looks big because the rest of my budget is not that big. I don't have a lot of project expenses as most of my expenses are personnel related. Last year our IT budget included our energy management software but now that is moved and stays with facilities management so it is part of their budget. It may look big but IT is really good at showing all the added costs. Mr. Horvath stated, It actually did go down from$46,000 to $19,000 from 2018 to 2019. Keep in mind, we've kind of split the department. We moved the facilities management piece over. We can send you a breakdown of all those costs. EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173 TTD574.235.5567 wwvw.southbendin.gov 5 CITY OF SOUTH BEND I OFFICE OF THE CLERK Committee Chair White asked, You mentioned the South Bend Home Corps. program would hit two hundred(200)homes, is there a particular area of the community and who will identify where those homes will be? Mr. Horvath replied, We are working on that right now. We are working with a couple agencies and trying to get their help in identifying those. There are agencies already out there that are looking at making sure there is some way of verifying income and stuff. That can be a big process. I don't think we have that identified yet. Ms. Dorau stated, Our goal is to fill gaps that are missed by other programs. So a lot of the programs that use Federal or State funds have serious restrictions on who they can include in their programs. We want to be a little more generous and accommodating and help those folks that don't usually get accepted into those plans. Kara Boyles,City Engineer for the City of South Bend with offices on the 13th floor of the County- City Building, stated, Engineering manages the design and expansion of the seasoned structure. We see projects all the way through planning, design and construction. We are setting standards while also inspecting and permitting projects throughout the City. Our team (referencing a slide in the presentation) has around fifteen(15) full-time employees. That is anywhere from an Assistant City Engineer to a Project Engineer and a Project Inspector. We have three (3) inspectors that do construction inspection for the City. There is a manager for that team and then one (1) of those inspectors is dedicated solely to permitting while the other two (2) are project inspectors. That is any and all projects and there could be thirty(30)to sixty(60)projects split between those two (2) inspectors. You will hear and see in the presentation by the Parks Department that we are about to spend $30 million on six (6) projects alone. So with those projects coming, we feel there is a tremendous need for another project inspector. By bringing on another FTE, it would be one hundred percent(100%)allocated to the Parks Department but that inspector could help defer some of the costs we see that would typically be project costs but we could actually reduce the amount for inspection by bringing someone in house which would allow the dollars to be spent more toward the actual project. She continued, I will now highlight some of the accomplishments we have seen in 2018. We tried to emphasize the roadway improvements you are seeing all throughout the City. We are working on the cross streets, the Community Crossings Grant Project, taking advantage of the partnership we have with State of Indiana. That is a fifty-fifty(50/50) matching grant with the State. We have done some additional paving and have tried to incorporate other paving projects. For instance,we are doing a project at AmeriTech at the by-pass. Focusing on curbs and sidewalks this year we have Monroe and Studebaker Safe Routes to School happening. We are also getting ready to bid out LaSalle and Marquette.That is a fall 2018 project.We have added about a mile long trail along Boland Drive, so, adding connectivity in terms of connecting Portage and Riverside Drive. We have also bid out the annual curb and sidewalk which includes Council allocations this year and that just happened in June 2018. We've done some asset management work, some drainage projects and used some road funding in order to do $500,000 of small drainage projects. We did some traffic calming pilot projects this year for the first (1St) time. We were partners in the Safe Street Academy so we did those projects over in the Northwest Neighborhood area. She went on, I also like to point out that, while we are managing these projects, we are like consultants as well,throughout the City,to Venues,Parks&Arts, Fire,DCI, and anyone doing an EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Bvld I South Bend,Indiana 46601 j p 574.235.9221 If 574.235.9173 1 TTD 574.235.5567!www.southbendin.gov 6 CITY OF SOUTH BEND I OFFICE OF THE CLERK engineering project in the City, it is happening through us. Any time during the year there could be more than one hundred and fifty (150) projects underway. This (referencing a slide in the presentation) is what it looks like in 2019. We are going to be engaged in a variety of projects. Those projects include easy to see roadway and traffic projects, neighborhood engagement type projects such as traffic calming and lighting, facilities, Venues, Parks & Arts, the six (6) major projects and all the water projects. She continued,This next slide is in here every year as it gives you an idea of what our expenditures are like. You see a huge increase from 2018 to 2019 and it is very easily explainable. In the past, we would charge out salaries from the Engineering Department to the different departments in Public Works. So for instance,my salary would be partly charged to the General Fund but because we are doing water, waste water, sewers, streets and everything else, the other part of my salary was being paid for from the other divisions and they were actually in those budgets.Now, and you will see this shift in everyone's budgets in Public Works, all of those salaries will actually be shown as an expense and in revenue in the Engineering General Fund portion and will be allocated out to the various divisions. If you went back and did it the old way,we are actually down$71,000 for expenditures in 2019 compared to this ye of 2018. We are actually spending less but that is what it looks like. She went on, So I will now go through each of our funds that we use most. We allow the Streets Department to use a little bit of that money for streets supplies. Then we use that for many projects so you will see we have $5.7 million in expenditures planned from LRSA in 2019. Street maintenance and traffic signal maintenance is in every annual element of work.Under professional services, also MACOG, we have a partnership with them. Marquee maintenance is the same as what we did this ye . Something new you will see is outsourced street paving. So you see an additional $600,000 is LRSA for paving projects. Last year we used Motor Vehicle Highway to do that work. In 2018 we bid out$600,000 and were able to do eight(8) lane miles. She continued, Then we have a bunch of capital projects. Typically you're seeing traffic calming. In the past we budgeted, each year, a little more. This year we have proposed$250,000 and that is up from $100,000. The West Side Quiet Zone project is included here. This next element is the Century Center Dam repairs and I am sorry, it really should say South Bend Dam repairs. We know there are $30 million in capital improvement needs related to the South Bend Dam. This is the first (ls� time you'll see that in the budget as we try to begin and address those repairs. The Olive LPA Project, LID stands for land improvements and damages. So this is related to our Olive paving project. This is one(1) of our LPA projects so this is focused on the right of way expenses and the purchasing of permanent and temporary right-of-ways. The Community Crossings is a transfer that will go out to 265. 265 is the Community Crossings Fund. As a part of that program, the State requires each community to set up a special fund to spend out of for that grant. So the $600,000 is the portion the City pays that will be matching. We anticipate$600,000 from the State. Then the Bendix LPA project would be a transfer in from EDIT. So this is one (1) of the first(I") times I've been privy to asking for funds from EDIT for engineering projects. That is $2.5 million on the capital related to paving Bendix from Nimtz to Lincoln Way West. It is more than a paving project as it is called,what we call, a Complete Streets project. There is a road diet,new sidewalk. She went on, Special LOIT is a one (1) time distribution that we have been spending dollars out of. We plan to use around$65,000 this ye on a traffic signal study. That will focus on looking at our traffic management software. A majority of our signals are integrated into a traffic EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173 1 M 574.235.5567 lwww.southbendin.gov 7 CITY OF SOUTH BEND I OFFICE OF THE CLERK management system so that they can talk to each other. It is a very antiquated system as it still runs on DOS, I believe. It needs some investment. This is the beginning of walking down that path. This will help us begin to get some technical assistance with a professional traffic engineer that will help us look at signal timings not just for vehicles but for pedestrians as well. This is that Local Road and Bridge Grant which is Fund #265, so this is where we anticipate receiving $600,000 from the State and partnering with our $600,000 match. Our focus this year will be on City-wide paving. This past year we did the Community Crossings grant and we used that to do work around Edison and Ironwood. So we are doing intersection improvements. Edison and Ironwood was one (1) of the oldest intersections and signal systems in South Bend, so, it needed that upgrade. That investment is highly focused on the intersection as well as doing the paving all the way to the Corby Ironwood Rockne intersection. Then we did some paving from SR-23 and some concrete replacement. We spent almost$1.5 million on that project. She continued, We anticipate spending $1.2 million out of Major Moves for the Corby Ironwood Rockne intersection improvements. This project is an LPA Project so that represents our cost share in this project. Again, it is one (1) of our oldest intersections as well. This will help improve that intersection by creating a better level of service. That will happen in 2019. We deal with a variety of elements in working with other teams and departments. We are heavily involved with VPA. There is certainly a need for that added Project Inspector. There is around $30 million in construction related work. On average, if you were to consider how much the cost is to hire a professional inspector,it is roughly eight to twelve percent(8% - 12%), so, if you said ten percent (10%) of$30 million, that is a $3 million investment just there. I feel that number would be less with another inspector. She went on, We also do a lot of work with DCI. Any of their TIF-related projects where they are partnering with developments and providing TIF dollars,we are involved in managing all of those engineering related projects. There are a lot of projects and a lot of dollars. Millions of dollars that are just related to the TIF. The West Side Quiet Zone is anticipated to have $120,000 worth of projects that primarily focus on the Norfolk Southern Corridor. This work in 2019 will be focused on the Canadian National and the NICTD. There are $350,000 in planned improvements for that. All those improvements are pavement markings, signal warning signs or mountable medians. That money will spent to help us begin the designation of the West Side Quiet Zone. I mentioned that last ye we budgeted$100,000 for neighborhood traffic calming. We are requesting$250,000 this year. We had a very successful project this year with the demonstration at Hudson and Riverside. We are planning to make small modifications to that this fall. It will then be taken out for the fall and winter plow seasons but then we will be working on a design for, hopefully, a permanent installation in 2019. We did some speed humps on College and Sunnymeade. We have gotten feedback on those designs and we look to improve that design. We are looking to do a project along Longfellow this ye . We are also working with residents in Walnut Grove to come up with some potential traffic calming units. We have a long list of need there so that $250,000 will help us take a bite out of that list. She continued, Light Up South Bend will produce eighty(80)lights. They will be in districts three (3) and six (6). Also some of the funds are going to fix some of the lighting along Riverside near Leaper Park. We have about twenty(20) lights there that will be worked on. We are working with residents to make sure we get the right temperature on those lights. We just quoted out a project for Angela Bridge. You should soon see some fixtures on the Angela Bridge. It already has conduit in place. There are those areas where it just is not that easy for the lighting situations.The electrical EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building I227W.Jefferson BvldI South Bend,Indiana 46601 p574.235.92211f574.235.9173 TTD574.235.55671www.southbendin.gov 8 ®CITY OF SOUTH BEND I OFFICE OF THE CLERK issue along Riverside is similar to that on Michigan Street. We will try to take a look at that for next ye . Curb and sidewalk construction is annual.In addition to the work we are self-performing we are also bidding out a portion of that work. That budget is the same as it has been in the past at $700,000 as well as $150,000 for the portion we call the reimbursement program where residents can apply,hire their own contractor, and then get reimbursed. We've seen forty to seventy percent (40% - 70%) recovery by residents on that reimbursement program. I'll say, anecdotally, in 2018 we bid out curb and sidewalk,we looked at the average cost of doing a property versus the average over the past few years. Unfortunately the numbers this year were about twice as much as what we've seen in the past. That speaks to where the market is right now. A lot of our projects are coming in high. We tend to rebid quite a few projects. It is what it is, unfortunately. This year it costs us, on average, about $2,700 to do one (1) property's curb and sidewalk. Laster it was about$1,800 or$1,900. She went on,This is the Safe Routes to School program. This is a project that will be this fall. The actual construction cost for this is$1.5 million. The City's obligation is$450,000. I put this in here because it's actually in our 2018 budget. It was in our 2018 budget but it will be built in 2019. So we are excited to see that happen. That is 2,600 feet of curb and over two (2) miles of sidewalk. These projects really can make a dent in our needs. The Lincoln Way East Corridor Project is a sidewalk project as well. So in the section of Lincoln Way East from Sample to Twyckenham,this is a combination of work between DCI, Parks and us. It just so happens that this .ye INDOT is coming through and repaving that section of Lincoln Way East. We put this project together in coordination with them in order to do a little bit of a road diet. We are going to move the northern edge curb line in and then they will come along and do the paving. That will be moved in this fall because they are getting ready to do that work this fall. We are about ready to bid out that project. It is a little bit complicated as there are right-of-way issues there. Most of the property is owned by the property owners on the other side so that makes it an expensive project.We are still working out all those details. We won't be affecting any private property. That will be paid for with a combination of the River West TIF and the Parks Bond. She continued, We just had the public hearing for the Coal Line Trail. We are still in the public comment period and that closes next week. That is a two (2)phase project. It will begin at Lincoln Way West and will go to Riverside Drive. The second (2nd) phase will be Riverside Drive to the East Bank Trail. It is going to be a multiuse path,will be twelve(12)feet wide,there will be lining, amenities and signage all incorporated in that. We are excited for that. It is on target to be completed by 2020. That is funded by River West TIF. The 2019 Community Crossings project, as I mentioned before, it will be the $1.2 million and it is City-wide paving. We have $1.2 million of paving and I have also asked for an additional $600,000 from LRSA for paving. We are hoping to get$1.8 million of paving bid out to contractors next year in addition to what we would be self- performing. We are trying to make a difference there. She went on, The Western Avenue Corridor phase three (3) is the next segment of the Western Avenue streetscaping. We have budgeted $2 million from River West TIF as well as the future storm water utility capital. That will be four (4) blocks from Falcon to Dundee. We will also replace that old infrastructure. We have water main and sewers that will be worked on. Bendix Drive has been mentioned but that will be $4.8 million. The City's contribution will be $2.5 million.We plan to bid that out in the fall of 2019.The Corby Ironwood Rockne intersection,same thing, we will bid that out next ye . That is $1.2 million. The Olive Street project is not as far along as we want to be. We just began talking to property owners. I put this up here (referencing EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building I 227W Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173 TTD574.235.55671www.southbendin.gov 9 CITY OF SOUTH BEND I OFFICE OF THE CLERK the presentation) so we can anticipate that in the 2020 budget we will be looking for another $2.5 million for Olive Street. She continued,I put the 2018 flood up here to highlight the effort and the ongoing work happening that is related to the flood. We've been working with Robert Yeary and the insurance process as well as FEMA. They have been in town for quite a few months now. They are looking at our projects and are inspecting our projects. They are doing their due diligence. We are looking at, potentially, upwards of$3 million of project costs here. We have a good idea of insurance being involved in that. She went on, Streambank Stabilization is a little bit complicated. Of course you have right-of-way at the T intersection but you also have private property ownership on either side of that intersection. A portion of that bank is owned by the City and the other portions are private. We did, this ye , receive a DNR grant to provide some technical assistance to do an engineering feasibility study. That $45,000 is actually a max amount up to eighty percent (80%) so we can engage with a consultant to begin looking at what type of stream bank stabilization we could do here in the area. That is an unfunded element of work for us. The sewer and manhole rehabilitation is an annual project we work on,budgeting$1.5 million out of Sewer Capital.This past year we did work along the CSO eighteen(18)corridor and we are looking to try and do some sewer manhole lining along Diamond Avenue this year. Lining is a great way for us to take care of our assets in a non-invasive manner such that we don't have to tear up the roads. The CSO eighteen(18) corridor, I realize, is a little inconveniencing because it was such a large project. She continued, And then the Long Term Control Plan (LTCP). We continue to move and make headway as we move forward with IDEM and the EPA on the LTCP. This year we plan on continuing that effort. We are working on beginning to look at Green Stormwater Infrastructure. So we are proposing $200,000 for design work that would create templates and then begin implementing that in different areas throughout the City. She went on, We have some challenges and new initiatives for this next. Stormwater Utility is one (1) of them and Eric will follow up on that. We look to increase funding for traffic calming and do work on the South Bend dam and the West Side Quiet Zones.Another challenge is the LPA Project Funding. There are some great expenses hitting us all at once with three (3) of those LPA projects being with MACOG in 2020. The current bidding environment is also unknown and the market is very saturated right now. A lot of our contractors have a lot of work and we are sometimes not seeing them show up for our bids. The personnel changes include that new Project Inspector which will be one hundred percent (100%) allocated to Venues, Parks & Arts and then the engineering allocation is new this year. Committee Chair White paused the presentation and opened the floor to questions from Committee and Council Members. Committeemember Voorde stated, I went to a meeting the other day and neighbors by the Eddy Street Commons area, specifically Frances Street, have noted it is very dark. Is there some way that can be addressed? Ms.Boyles replied,Lighting is easy for us to take a quick look at.I feel like we've done that before in that area.I know about three(3)years ago I worked with a resident there and helped them initiate EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building(227 W.Jefferson Bvld I South Bend.Indiana 46601 p 574.235.9221 If574.235.91731 TM574.235.5567 www.southbendin.gov 10 .CITY OF SOUTH BEND OFFICE OF THE CLERK the lamp post project. We worked with them and that resident helped immensely. We can look at the actual street lighting, though, and we will see. Committeemember Voorde followed up, And on curbs and sidewalks, we still have a crew that does that. As the cost of contracting and bidding goes up, I'm sure you must balance that against adding another crew? Because sometimes it seems like if we did it ourselves it would be less expensive. I know even just a few years back, there was a whole year back log. The $600,000 spent on 8 lane miles, is that a benchmark of what$600,000 will do? Ms. Boyles replied, It depends on what is happening. If you are just milling and filling the road, the width of the road matters. If there is striping, casting adjustments, or any other things can lead to a higher cost but I think, when we did that bid, we did various subdivisions and what we saw was, literally, anywhere from $50,000 to $100,000 per lane mile. It just depends on different variables. Mr. Horvath stated, We typically see around $100,000 per lane mile when we outsource. When we do it, it is roughly $55,000 per lane mile. That does go up and down depending on what is going on. Even the cost of gasoline makes a difference. Councilmember Williams-Preston asked, So how much is allocated for sidewalks? Ms. Boyles replied, That number is $700,000 from MVH. So that is for the portion we bid out to the contractors. Councilmember Williams-Preston followed up, Is there any chance of increasing that? Mr. Horvath replied, We are getting there. What we have done is just do it with internal forces. In the 2019 budget we do have a fifty percent(50%)increase in allocation to every Council Member's allocation of sidewalk. You will all get an additional six hundred and twenty five (625) feet of sidewalk that you can allocate next year. We are adding another crew for that. We really have needs. We have other unmet needs in the other seasons that lined up really well. Jitin Kain, Deputy Director of Public Works with offices on the 13th floor of the County-City Building, stated, Every season we struggle with employees. We've tried bonus programs, wage raises, and everything in between. It is hard to get people to stay for an entire season. We would start with fifteen(15)people and would end with five(5).Leaf pick up is a big concern for residents and they want their leaves picked up multiple times a year so having the right man power is critical. We don't do much patching and sealing and that is an important part of preventing potholes from occurring. If we do more crack sealing, that could reduce the amount of potholes by twenty or twenty five percent(20% -25%). That is a huge thing for potholes. We have contracted some out this year but want to bring that in-house to do it for less money. Committeemember Voorde stated, Years ago, we could almost see this coming. Maybe it was looking ahead to the fiscal cliff, now curb, that Mayor Steve cut back on the total number of workforce. But in my mind, they did it from the bottom where they cut Street Department guys and those are the people actually doing the work. EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.91731 TTD574.235.5567 iwww.southbendin.gov 11 CITY OF SOUTH BEND I OFFICE OF THE CLERK Mr. Horvath replied, That is why we decided to add four (4) people. They are able to actually be on the ground and do the work. The Council has done a very good job in supporting our needs in the past and I think that is one (1) area we have done well in. We have done a very good job in keeping up with our capital equipment over the years. Committee Chair White asked, How much is in Major Moves? Also, we've not made mention of the Rainy Day Fund. Have you used those dollars? It would nice to have a sense of the whole budget and the fund sources. Mr. Horvath replied, We can get that information to you. Mr. Horvath continued, We are now going to go over stormwater. I will try to be quick on this but this will take subsequent meetings of the Council and will take us an enabling ordinance as well. Committeemember Voorde left the meeting at 6:13 p.m. Mr. Horvath went on, In a nutshell on stormwater, again, this is one (1) of those buried assets that is often forgot about until you have some major event and then our phones don't stop ringing for the next week. These are real issues for people. The issue we have is that there is no dedicated funding source for stormwater in South Bend. We are asking the Council to consider a new stormwater utility and the fee associated with that to support some ongoing stormwater needs. We will talk a little bit about that to give you an idea of what our proposal is and what we've got in there in terms of cost. I will glance over these (referencing a slide in the presentation). Again, any funding that we provide in the past has primarily been wastewater and road funding. Most stormwater programs across the nation look at the amount of impervious surface on a lot. Impervious surfaces are rooftops or a driveway hard surface where you get a lot of run off. Based on that square footage, they give you a fee that is associated with.that. A lot of the times what they'll do is they will sign an equivalent unit on a resident. So they'll look at how much impervious surface a residential unit has and then utilize that as a basis to look at commercial and industrial sites. He continued, So what we did was something related to that but modified to make it a little simplier to enact in the first (1 st) year. That was doing a flat rate of two dollars ($2) per resident per month and that will be put on their utility bill. Then based on the non-residential customers' impervious surface area, the bottom third, roughly, would be four dollars ($4) per month, the middle third would be eight dollars ($8), and then the top third on the larger properties would be twenty dollars ($20) per month. It is a modified approach to make it more simple to enact in the first (1St) place and still helps us generate some revenue to start building some capital infrastructure. The stormwater fee will be for all properties except unimproved lots and public right-of-way. If you have a vacant lot with nothing on it, there will not be a charge to it. You can see (referencing a slide in the presentation) some of the national trends, there are over 1,600 stormwater utilities in the United States. The national average for residential is sixty dollars ($60) annually. That is about five dollars ($5) a month, annually. He went on, We have outlined some of the needs we have that are most immediate. About $2.9 million between capital and professional services are highlighted. We are implementing this fee to meet capital needs more than anything. We have no intention of putting any operations or maintenance costs in here. Those are currently being born primarily by the wastewater utility. We EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173',TTD574.235.55671www.southbendin.gov 12 CITY OF SOUTH BEND I OFFICE OF THE CLERK have a number of compliance obligations from State Statute on municipal utilities that we have to follow and we have a full-time person to run that program. We are not suggesting it be included in that and we focus more on the capital needs that are not being met. We will continue to keep the operations and maintenance piece where it is in the wastewater utility. He continued,The other thing we have not included is anything related to the February 2018 flood. Part of the reason was that we didn't have the study so we weren't able to identify specific costs. In addition to that, where we have identified some specific costs on some of the public infrastructure, we don't know yet how much FEMA or insurance is going to cover. So we have been going through that process with them and that is continuing. We are probably pretty close to figuring that stuff out. Once we figure out what they are going to cover,we will know the funding gap there is on some of those issues. We will then be able to determine what those needs are as well. I just wanted to point that out that the$2.9 million identified does not include anything from the flood. In this though, we do have $500,000 budgeted for flood mitigation and that would be partly covering some of those issues we have from the flood but we don't know the total impact yet. He went on, So we put together a budget for the purpose of having something in 2019 of about $1.2 million where we focus on capital improvement projects. Professional services would be in support of those capital projects. These (referencing a slide in the presentation) are the ones we've outlined. Obviously this can and will change. This is our top ten(10)list right now but that is fluid until we are able to sit down and prioritize everything after we get some of these reports back from LFA and FEMA. So we've got$1.2 million budgeted and here is our list right now.We are looking at generating about$1.2 million a year,through the fee,to help cover some of those issues. He continued,There are eighty-six(86) stormwater communities in the State of Indiana right now that charge a stormwater rate. That is as of 2016. 1 didn't have more recent numbers on that. Of those eighty-six (86), the cities with a population greater than 25,000, there are twenty-nine (29) of them. You can see the fees here (referencing a slide in the presentation), the Statewide average for the eighty-six (86) communities is five dollars and thirty-six cents ($5.36) per month. That is the residential unit equivalent,so this is compared to our proposed two dollars($2).The cities with a population greater than 25,000, the twenty-nine (29) cities, the average is four dollars and seventy-three cents ($4.73)per month. So you can see, it is really close to that national average of about five dollars ($5) a month. It is pretty typical but it does vary significantly. Some cities are close to the two dollar($2)range then you've got some up to the ten dollar($10) or twenty dollar ($20)range for residential units. He went on, You can see here (referencing a slide it the presentation) what that would generate. So,we took the bottom third in terms of size,the non-residential properties,and that was anywhere from zero (0) to 5,000 square feet of impervious surface. The sampling we did used that average across all of our properties to get an estimate of the number of properties and multiplied it by the proposed rate. You can see the proposed rate of four dollars($4)per month for those small entities would generate around $61,000. The medium properties were 5,000 to 15,000 square feet of impervious area and charging eight dollars ($8) per month, that generates about $98,000 a year. Then the large properties that are greater than 15,000 square feet of impervious area, at twenty dollars ($20) per month generates about $263,000 per year. The residential piece, which is significant,is about 34,600 properties,at two dollars($2)per month,would generate$1.25 million. EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173 1 TTD 574.235.5567,www.southbendin.gov 13 ®CITY OF SOUTH BEND I OFFICE OF THE CLERK If we use this fee, it will generate enough money to meet the $1.2 million in needs that we've outlined in the budget. He continued,That nowhere meets the annual need that we have on capital,let alone the operations and maintenance. So were weren't trying to fully fund the stormwater utility needs because we felt like that would not be possible. It just made sense to at least start moving the needle in terms of trying to work on these assets and we take care of some of the drainage issues we have. There is nothing more frustrating for us,as problem solvers,to not be able to solve some of this just because we don't have the money. There are always going to be capacity issues, as well, in terms of having time to get to stuff. But, in this case, a lot of these storm things, we don't have any funding to actually attack them so it puts us in a really tough position. We are constantly trying to find ways to do it without having a funding source. We will be having further dialogue with the Council. I appreciate your understanding of this being at the preliminary proposal phase. We understand there needs to be considerable dialogue and community involvement throughout this whole process. We want to make sure we built this into the budget process so everyone has full disclosure of what that is going to be. Mr. Kain stated, Moving onto Streets and Sewers, here (referencing a slide in the presentation) is the organizational chart. There really are three (3) maintenance divisions. There is the Street Division, led by Pete Kaminski, the Sewer Division, led by Sean Ward, and the Traffic and Lighting Division led by Ed Gleckler. We've had a busy year so far but have had some accomplishments. We ended the season with some additional material. We got a pretty good rate on salt last year in 2018 so we are able to use that same rate to get ready for the upcoming winter season. We are currently rating our streets annually. We send crews out to rate the condition of streets using the PAZER System. That is a rating system from one (1) to ten (10), and that allows us to shortlist the streets that have to be paved that year and the following years. To date,we have paved about eight (8) lane miles. Our goal is eighteen (18) to twenty (20) miles a year. In the Traffic and Lighting Office, we've been busy with a number of things. We are focused on the maintenance of many of our signals and lights. We have also upgraded our lights to LED and that is about seventy(70) lights that have been upgraded. A big part of what Traffic and Lighting does is provide event support. So to date,about seventy-three(73)events have been supported and those are anywhere from small neighborhood block parties to large races and regional events. Our crews will work with South Bend Police to block streets and provide support. He continued, Our Sewers Office has been busy with maintaining large sewer lines. To date, we have cleaned and inspected about twenty(20)miles of lines. We've had some sewer back up issues this year as we have had some heavy rainfall. We have about sixty-four (64) backups caused by heavy rain. We have been very busy with cleaning inlets. About six hundred and twenty-eight (628) inlets were cleaned,just as a result of the February 2018 flooding. A large number of hours were spent in the areas that received a large amount of flooding. We've had a number of sewer mainline repairs. Eleven(11)is about average for the year but we are also seeing sinkholes appear and that is an issue we are constantly facing. That is, again, a reflection of the aging infrastructure we have in the community. For curbs and sidewalks, we've completed a good portion so far. We have a lot to complete. Our goal on the City crew side is roughly about 3,000 feet of curb and about 3,000 feet of sidewalk. We are making progress there. He went on, The ReLeaf Operation has been relying on technology to better map the leaf conditions we see throughout the City. We've deployed mobile devices to many of our crews in EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Bvld South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173 TTD 574.235.55671www.southbendin.gov 14 ®CITY OF SOUTH BEND ( OFFICE OF THE CLERK the Streets and Sewers Department and they have now been able to track every parcel. When they collect leaves, they can use their iPads and assign how much quantity, whether they've picked it up, and that starts to give us a better sense, neighborhood by neighborhood, how many leaves we are collecting. That then puts us in a better position to plan for the following years. Tree canopies are not equally distributed throughout the City and this helps us align our resources to the tree canopy and the leaves falling, and that creates more efficiencies. As we collect more data we will be better prepared for leaf pickup in the fall. He continued, We also use technology for paving. There is a paving map that tracks what is being planned,what is under construction,what is completed,and this is all available to residents so they can see when the crews will be out there. They can also see the rating of the streets. We are using technology to not only communicate with residents but also to enable the efficient operations of our crews. Other ways we are using technology is deploying programs like City Works to do work order management. That helps us better track work orders. We can track the labor,materials used, when our crews go to a certain location, and much more. That is all being generated through the system and we can close those work orders as we complete them. We expect to deploy this in other departments.We are using a program called RoadBotics. It is a new start-up that uses a technology where they can use smart phones mounted on dashboards of trucks, drive the City and they can analyze the video to determine street conditions. That is similar to what we do with our crews but it uses technology. The benefit of that is if we can use this technology, and we've done a pilot program already, it will give us an assessment of street conditions City-wide so the only streets our crews will have to pave are the worst rated streets instead of going throughout the City using manpower to rate the roads themselves. That allows for more time spent on paving. We are also piloting a program for road temperature sensors which gives us a sense of pavement conditions and, if we get better temperatures on pavement conditions, we can better deploy resources and material to attack those conditions. He went on, In terms of our revenue and expenses, you will see in 2018 and 2019, the revenue shows an increase. This is due to the gas tax money that is starting to come in. As a result, we are able to do more in terms of paving. The$600,000 of outsourced paving is reflected in this budget. In terms of our expenses,this(referencing a slide in the presentation)is just a little bit of a detailed breakdown. This will show the personnel increase which we have already talked about. Over the last few years we have invested in capital. We are not really doing too much this year in 2019 because we've been investing in capital already. As a quick highlight, the big thing here is our expectation that costs will rise again. Asphalt will rise and salt will increase in 2019. We have to prepare for those. The ask from the Council is for this crew to do more curb and sidewalk,ReLeaf, crack sealing and snow plowing. A crew is typically four (4). We have been using our Sewer Job Leader to do concrete oversight and we would like to have a Concrete Job Leader to do concrete oversight so that the Sewer Job Leader can focus more on sewer operations and the maintenance of those utilities. Committee Chair White paused the presentation and opened the floor to questions from Committee and Council Members. Committeemember Williams-Preston asked, Is there a map online like there is for paving, but for sidewalks as well?It just helps because people keep calling and no one knows when their sidewalk is up to be worked on.. EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227W.Jefferson BvldI South Bend,Indiana 46601 p574.235.9221lf574.235.9173ITTD574.235.5567 www.southbendin.gov 15 ®CITY OF SOUTH BEND I OFFICE OF THE CLERK Mr. Kain replied, We do have a sidewalk condition map that is a couple of years old now. That can be put online but we are trying to find ways to make that live. The paving is live so what they are paving today, you can see online. Part of the work RoadBotics is doing will eventually get us to where they can also track the rest of the infrastructure live. At that point we will have a sense of curb and sidewalk condition. Committeemember Williams-Preston followed up, So it's coming? Mr. Horvath replied, Hopefully RoadBotics will be able to alter their program because it is just a different animal. That would be really helpful. Mr. Kain stated, And the challenge with data collection is how you make that data relevant. It changes every year so we used interns a few years ago to map out the conditions of our curbs and sidewalks. But that was only one (1) year. If we have to do that continuously, that is a lot of resources needed.That is where technology can help and we are trying to get RoadBotics and other means to get live data. Councilmember Teshka asked,What kind of increase or what kind of funding are you planning on seeing from the Road Funding Bill? Mr. Horvath replied, It was very similar to what we had last .Year. It was about a forty percent (40%) increase in MVH funding for 2017-2018. In 2018 and through 2019 it is staying flat but it has not increased. Mr. Kain stated, Solid Waste is led by our new director Kelly Smith. Under Kelly are two (2) Superintendents. Over the last few years we have focused heavily on the transition of our fleet from diesel to CNG. We've also focused on moving from alley to curbside. The new trucks we are in the process of procuring are more of the automated arms. We are going away from the alley program and going completely to the curbside. In the alley you had pickers who were actually picking up the trash and they were having to pick thousands of properties a day. Automation helps us create more efficiencies. We are seeing an increase in the yard waste program. We did some changes to the solid waste ordinance last year to allow for more special pickups to make it easier for residents. Container management is a big part of what we do in Solid Waste.We are constantly, year round, in the process of collecting containers, cleaning those containers, trying to recycle them and then procuring new containers. So far we've delivered quite a few and those numbers (referencing a slide in the presentation)reflect the deliveries we have done this .Year. He continued, In terms of our revenue and expenses, you will see that the revenues are about the same. We had a slight increase in our expenses and that is primarily due to a couple of reasons. One(1)is our increase in allocations,so,we've had increases in our IT costs.Every time a resident calls 311, that call, if it is for Solid Waste is tagged as a Solid Waste call and then we get billed for the Solid Waste calls. If we have more calls,we have an increase in those allocations. We have had that increase,which is good in the sense the residents are using the service more but that means we are charged more for those services. We have also seen an increase in our insurance number. So about $30,000 increase in our insurance numbers. We are asking for, again, some capital. We are going to procure two (2) additional trucks next Year. Then this (referencing a slide in the presentation) is a more detailed breakdown of those expenses. The ending cash balance, because EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173 I TTD 574.235.5567 it www.southbendin.gov 16 CITY OF SOUTH BEND I OFFICE OF THE CLERK taken care of We've got a net capital asset value of about $55 million. The replacement value of that is several hundreds of millions of dollars. So we were well underfunded in terms of updating pumps, well fields and even pipes. We have pipes from 1875 that are still in the ground. This will help us get some of that stuff up to speed. You'll see here the layout of the capital and then the total layout. This one (1) is always a little misleading and should probably do it a little differently. In that $15 million of services is a transfer out of the capital money but we have to count that as an expense out of that Waterworks Operation Maintenance Fund and into the Waterworks Capital Fund. So that$3.766 million is capital that we are doing but is also kind of being double counted in that$15 million. He continued, In addition to that, as you all may recall, we have been very fortunate to have TIF support. A number of our significant needs are where we've got some of our facilities in TIF districts So for 2019, we will have TIF investment in water main, valve and hydrant replacement, in the North Station Treatment Plant, and upgrades in our fellows and bootcom reservoir booster station. That has been significantly helpful as well. On the wastewater side, some major accomplishments this ye include two (2)big ones. One (1)is the digester gas utilization. That is where we take our solids and process them to break down the waste and it is an anaerobic process that breaks it down into, essentially, dirt. Then we have a program where we one hundred percent (100%) beneficially reuse those solids and apply them to farm fields. In addition to that, as these bugs are in there, it generates a lot of heat, kills the pathogens, but as they are eating they are producing methane. So we take that methane gas and clean it and use it in our trash trucks. In addition, we spent about $14 million on secondary treatment clarifiers. This is a tremendous success in a lot of ways but it allows us to return a lot less activated sludge through the process so we will save quite a bit on electric fees and pumping. It also gives us additional capacity in the plant and that is something that needed to happen. So as we try to move our Long-Term Control Plan forward, it will be very helpful as we will have more ability to treat more flow. He went on, On the wastewater side you can see the revenues are pretty flat from 2018. The expenses are significantly lower. Again,that is primarily due to the capital piece. So you can also see here(referencing a slide in the presentation)that the expenses are still greater than the revenue, just like last ye and the year before,so we continue to spend down our cash balance. Having said that, we are still in a very strong financial position so it is not something we are concerned with right now.We just wanted to point that out that is what we are doing. We are doing that on purpose. Here is the total budget, you can see from 2018 to 2019 in various line items it has gone down, a total of about$9 million.A significant portion of that is due to the decrease in capital spending. He continued, Organic Resources, again, through the work with the Council, you may recall you passed an ordinance to get the bags out. We had,essentially, 100,000 cubic yards of trash out there and the State came in a said you have to take care of that. We were able to do that and really turn it from a trash to a treasure program.Now,we have really great quality compost. We are a certified compost through the US Composting Industry and we've increased our revenue on our compost about ten percent (10%) this year. That has been very successful. Finally, budget highlights, you will see some of the capital spending on the wastewater and water we have in there. I also want to point out that,included in these two (2)budgets,there are no position increases for wastewater but on the water side, we have five (5) positions that range from six to sixteen percent (6% - 16%) increases. It is a combination of bringing them in line with other similar positions in the City and additional responsibilities. Any specific questions you may have on those, we would be glad to provide additional information on that. EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Bvld I South Bend,Indiana 46601 l p 574.235.9221 f 574.235.9173 I TTD 574.235.55671www.southbendin.gov 18 ®CITY OF SOUTH BEND I OFFICE OF THE CLERK of the increase in our expenses, we do have enough in our cash balance that we can use. We have to think about 2020 and 2021 but this should help us with this , ear. He went on, The big highlight is the need for us to procure the two (2) trucks. We are seeing landfill costs increase. Our revenue is staying about the same but our costs do increase so we have a three percent(3%)increase in landfill costs,insurance numbers have gone up,truck maintenance cost seems to be going up and that is something we would like to control more. We are in the process of looking at some grants. We plan to apply for a grant to purchase the new trucks. There is no change in personnel.However,we are asking for a small more than two percent(2%)increase in our Solid Waste Director salary to bring it up to more of the standard for the industry. Committee Chair White paused the presentation and opened the floor to questions from Committee and Council Members. Committeemember Williams-Preston asked, What is the percentage of the increase of the director's salary? Mr. Kain replied, Six percent(6%). Mr. Horvath stated, I will move onto utilities but before I do, I would like to give a shout out to Solid Waste. We've had some transition as of late and we had a number of vacancies in some of our positions. Kelly Smith first(1S) came over from wastewater to help us out and we've kept her on full-time as a director and also LaMonte Taylor. And Sean Ward has also done things outside of his duties. Mr. Horvath continued, Utilities I will go through quickly. Basically, water and wastewater, we provide safe drinking water out of their tap. We then take it back to the wastewater plant and clean it before we discharge it back into the river. We have nine (9) well fields and five hundred eighty (580) miles of water main, seven hundred (700) miles of collection system pipe and one (1) wastewater treatment plant. Some of the accomplishments include doing a lot of work on lead. We are very fortunate to have non-aggressive water so it doesn't leach lead out of the pipes of homes. At the same time, no level of lead is safe and so we've done a number of things to help with outreach to make sure people understand that it is a real concern. There are ways to minimize those exposures and there are brochures that went out to every one (1) of our customers. We also put some stuff in schools to try and do education there. Then there is a valve turning program we started for the first (1St) time. The reason that is important is that we have a break or some issue where we have to isolate areas, we have to use the valves to do that. And if we don't have those working, after a number of years they rest, and then you might be closing down a whole section of the City. That is an important program we are doing now. He went on, To go over a little bit of the funding, you can see (referencing a slide in the presentation) that in terms of revenue, we appreciate the Council helping with the rate increase that is making a significant difference in our ability to actually do capital improvements in the first (1St) time in a very long time. You can see that we are projecting from 2018 to 2019 that we will have significantly more dollars available to put into capital and that is about$3.7 million. You can see that on the expense side, too, going up from $18 million to $22.3 million and that is largely attributed to the capital projects which you can see here. We were doing very little capital in 2016 but have been ramping it up in the last couple of years and really getting some of these major needs EXCELLENCE I ACCOUNTABILITY ( INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173 TTD 574.235.5567 1 www.southbendin.gov 17 ®CITY OF SOUTH BEND I OFFICE OF THE CLERK He went on, Big picture, there is one (1) additional FTE for inspection for engineering, four (4) for Streets for curbs and sidewalk,and then one(1)FTE is moving from Engineering to Innovation and Technology. We've tried as best as we could to listen to the needs we are hearing in the community and from the Council and move the needle a little bit in some of those areas. We know we aren't moving it as much as we've needed to but we are at least making significant strides in trying to get more sustainable assets. Committee Chair White stated, We thank you so much for your presentation. We thank all of your staff in terms of what you do to ensure the services we have for our citizens are in the best shape possible. We know we will probably need more time to ask some more questions. She then opened the floor to members of the public wishing to speak. Sue Kesim, 4022 Kennedy Drive, stated, Eric, I don't know how you do it. You had mentioned there being lateral lines that are over one hundred (100) years old. I'm wondering how big a problem that is. Is it just in a small area? Does there need to be additional funding? Smart sewers are great but my understanding is that there isn't always a drainage field to go to. Am I correct in my understanding? I'm wondering where you are with drainage fields. And I have a lot of questions that a lot of people bring up. One (1)of them is what is the cost per foot for a curb?And what is the cost per foot for a sidewalk? If they are going to pay for half of it they want to know what a reasonable cost would be. Mr. Horvath replied, In terms of the laterals, we have sewer mains and water mains which are public infrastructure.Now we've got these private lines that come off to homes. Laterals are what we call the sewer connections to the home. It is common that if we have a water main that is from 1875, that service line is probably similar in age. It may be a little newer depending on what has happened but the issue is we are trying to do a better job in figuring out what those assets are,what their risks are, what their vulnerabilities are so we can replace them. Age is not even a good indicator. I say that because we actually find that some of the older ones are actually less likely to break than some of the 1940s ones. Ms. Kesim interjected, Can you put, like, liners in them, or no? Mr. Horvath replied, You can on the sewer side and we are doing that. We have a sewer lining program we do every year. We also have a manhole lining program where we line brick manholes so the bricks don't fall in. We also have a sewer and water insurance program for this specific reason. It is really expensive to have a fix. If you have a fix on the sewer line that is in the road, it could be $15,000. So the City would pick that up through the insurance program. On the smart sewers, I will say we have had some really good meetings with the EPA and IDEM on our new LTCP. They are really excited about what we've done with the smart sewers. In fact the Region Five (5)Director of the EPA said she is inspired and impressed and would like us to be doing this across the nation. We have three (3) tanks in the program and our new program is a$200 million program. It is not inexpensive, but, it was a $713 million program. So this is significantly more affordable than the previous program but will still be quite a bit of investment we will need to put in. What we are trying to do with that program is really get big environmental benefit early through some things and get the low hanging fruit and the low cost stuff out first (I"). We are trying to optimize the existing system and do that with smart sewer technology. The most expensive infrastructure will need to follow later. EXCELLENCE ( ACCOUNTABILITY I INNOVATION ( INCLUSION I EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If574.235.91731TTD574.235.5567Iwww.southbendin.gov 19 ®CITY OF SOUTH BEND I OFFICE OF THE CLERK Ms. Kesim interjected, Do you have a timeline or are we budgeting out so we know? Committee Chair White asked Ms. Kesim to follow up with Director Horvath offline. Mr. Horvath replied, We will talk more about the LTCP later on in other meetings. Jim Bognar, 807 W. Washington Street, stated, We've been through this for about three (3) years, street lights. I'm going to try a different analogy with you. My significant other wanted to buy a white car. I say I've never seen a white car. Momma's not happy, nobody's happy, I got a white car.Now I see white cars. As I go around the community, street lights are out. I know there was a mention that some of it is underground and there are issues with that. Last year, you probably do not recall, we had a discussion where you were concerned about going in to talk to AEP to see whether they could do something about this. The goals you aspire to include developing sustainable assets and infrastructure and enhancing the community's quality of life. The mayor mentioned under residents' budget goals, number three (3), maintenance of street lights. I think we need to get the sustainability folks involved in this. I think there should be a focus, right now, before the end of this year to get with AEP to look at these lights. I encourage everyone in this room,as you drive around the community,look at the lights that are out. This doesn't take anything away from what you folks do but I think AEP has to be held accountable for this. We don't expect them to come and fix all of the lights but there is no opportunity to improve, clean, or maintain them,yet the City pays it.I think you and I have discussed,AEP doesn't really want to be involved in it anymore, but they are involved and we are paying. I think in every one (1) of these districts, Light Up South Bend is a good program but it has kind of been the one (1)that everyone mucks it up. How about we fix up what we have? I think you now have the staff and the resources to bring different departments in on this. I know of three (3) lights out by the school and the leeper park tennis courts that have been out for three (3) or four(4) years. Finally, one (1) last thing,we have to get some kind of idea of consistency in lighting. Are we sticking with Culver lights? Historical lights? I think this needs to be a priority before the end of the year and I think you need to come back to Council and tell them who owns what, this is where it is, and it needs to be addressed so neighbors and residents know what is going on with it. Let's hold AEP accountable. Councilmember Teshka stated, There is a lot that needs to be addressed here. Eric, your depth of knowledge is fantastic and thank you so much for that. I'm going to ask again, Jen, we got this yesterday at 9:00 a.m. and, you know, we are part time and we aren't all like Karen and have the benefit of being retired, so it takes some time to digest it and we need the full pictures. Piecing this budget out is really frustrating me without the big picture. I did some quick math through these funds and it looks like in just this portion of the budget we've got$9.1 million in deficit spending. It is really hard to see that and not get concerned when I don't have the full picture. Then we have this survey out that tells us that our residents are saying their number one (1) priority is this stuff. These are the basic City services that we are tasked with. Streets, sewer, water, and public safety are pretty much the basic City services. What our residents are telling us is that we are failing.No disrespect to you guys. I would love to get you more resources. Where does that come from? I don't know because I don't have a complete picture. I'm going to have to digest some of this stuff because it is too important to just blow through like this. I would love to get the information a little bit earlier and thank you for what you are doing. This is not a criticism of you, this is a criticism of the budget process as a whole and it is too important to just blow through. EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION ( EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Bvid I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173 I TTD 574.235.5567 I www.southbendin.gov 20 CITY OF SOUTH BEND I OFFICE OF THE CLERK Committee Chair White stated, We know there are certain departments, historically, that we have brought back and this is one (1) of them. Any questions and concerns, be sure to ask them. With no fiirther business, Committee Chair White then adjourned the Personnel and Finance Committee meeting at 7:08 p.m. Respectfully Submitted, Karen White, Committee Chair EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 227 W.Jefferson Bvld I South Bend,Indiana 46601 p 574.235.9221 l f574.235.9173 I TM 574.235.5567 j www.southbendin.gov 21