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HomeMy WebLinkAbout09-24-18 Council Minutes REPORT OF SUB-COMMITTEE ON MINUTES TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: THE SUB-COMMITTEE HAS INSPECTED THE MINUTES OF THE September 24, 2018 MEETING OF THE COUNCIL AND FOUND THEM TO BE CORRECT. THEREFORE,WE RECOMMEND THE SAME BE APPROVED: TIM SCOT TES TIM APPROVED BY THE COMMON COUNCIL ON: October 8, 2018 ATTEST: KA*EAAH FOWLER, CITY CLERK REGULAR MEETING September 24, 2018 Be it remembered that the Common Council of the City of South Bend,Indiana met in the Council Chambers of the County-City Building on Monday, September 20,2018 at 7:00 p.m.The meeting was called to order by Council President Tim Scott and the Invocation(Pastor Michael A. Patton, Kingdom Life Christian Cathedral) and Pledge to the Flag were given. ROLL CALL COUNCIL MEMBERS PRESENT: Tim Scott 1St District, President Regina Williams-Preston 2nd District Sharon L. McBride 3rd District Jo M. Broden 4th District Jake Teshka 5th District Oliver J. Davis 6th District, Vice President John Voorde At-Large Gavin Ferlic At-Large, Chairperson Committee of the Whole Karen L. White At-Large OTHERS PRESENT: Kareemah Fowler City Clerk Jennifer Coffman Chief Deputy Clerk Bianca Tirado Deputy Clerk Graham Sparks Clerk Executive Assistant Bob Palmer Council Attorney Casey Colvin Public Relations Intern REPORT FROM THE SUB-COMMITTEE ON MINUTES Councilmember Gavin Ferlic made a motion that the minutes of the September 10th, 2018 meeting of the Council be accepted and placed on file. Councilmember Oliver Davis seconded the motion which carried by a voice vote of nine (9) ayes. SPECIAL BUSINESS There was no special business at this time. REPORTS OF CITY OFFICES Representing the City Administration: Suzanna Fritzberg, Deputy Chief of Staff Councilmember Karen White made a motion to suspend the rules to hear Resolutions at this time. Councilmember Gavin Ferlic seconded this motion which carried unanimously by a voice vote of nine (9) ayes. RESOLUTIONS BILL NO. 1 REGULAR MEETING September 24, 2018 18-53 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS LOT 5 U S 31 INDUSTRIAL PARK PHASE II AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A(9)NINE-YEAR REAL PROPERTY TAX ABATEMENT FOR NATIONAL DISTRIBUTION CENTERS, LLC Councilmember Gavin Ferlic, chair of the Community Investment Committee, reported that they met this afternoon and send this bill forward with a favorable recommendation. Dan Buckenmeyer, Director of Business Development for the Department of Community Investment with offices located on the 14th floor of the County-City Building, South Bend, IN, served as the presenter to this bill. Mr. Buckenmeyer stated, Good evening, Council. We have a property tax phase-in proposed. We are talking about a parcel in Portage Prairie on Dylan Drive. It is just north of Cleveland and Brick Road. This is about a twenty(20)acre parcel we are dealing with here for this phase-in. This is a great opportunity to keep a great company here in South Bend. As a side note, and I know the petitioner will expand on this,the petitioner had good reason not to locate in South Bend but a few good reasons are keeping him here. One (1) is the partnership and potential tax abatement offered by the City. The other is a great workforce which we are really proud of. They have one hundred and eight(10 8) fantastic employees that they want to make sure they keep in place here in South Bend. Mr. Buckenmeyer continued, In January 2018 this parcel was assessed at $23,500. They will be purchasing it for around $1 million. Again, this bodes well for raising and rising property values. Their private investment in that real property will be over $14 million. They anticipate an additional $4 million plus in additional personal property, machinery and equipment. It is a great project given that this is a property presently only generating$705 per year in property tax revenue. Our estimates are that it will generate over$312,000 per year in revenue post-investment.To break that down briefly, if you look over the nine(9)years of this tax abatement,if this investment didn't exist,we would only enjoy an additional$6,345 in property tax revenue. Even with the abatement, there will be over $1.1 million in tax revenue total over the nine (9) years. We will be revenue- positive in year two (2). There is no public investment in this one (1), in other words there are no TIF dollars going into this.We do anticipate helping them out on the equipment side later on down the road. Again, we are retaining one hundred and eight (10 8)jobs in the great workforce here in South Bend. Troy Adams,Director of Real Estate for NFI with offices located at 1515 Burnt Mill Road, Cherry Hill, New Jersey, served as the petitioner for this bill. Mr. Adams stated, I am here on behalf of NFI.NFI is a privately held third(3rd)party logistics company that is headquartered in Cherry Hill, New Jersey. We are in our eighty-sixth (86th) year of doing business. We are still owned by the same family. It started out in Vineland,New Jersey in 1932 with one (1)truck. The company now owns over 4,000 trucks, employs over 10,000 and has a presence across North America in the US and Canada. We also do global logistics. Most people know us for our trucks,however,we operate about 47 million square feet of warehouse space across the US and Canada. We have continued to grow with the economy and on our own through some acquisitions. We've been in South Bend for about four (4) years now. We started out with a facility in Ohio and decided we needed to move more into the central part of the upper Midwest.We located a warehouse in South Bend on Sample Street which is where we currently operate. It is a sublease. It expires and we thought long and hard about where we go when this sublease expires next. We embarked on a search about six (6) months ago throughout most of Indiana from Indianapolis on up north. We really centered in on the sixty-nine (69) corridor and Fort Wayne came up as where it may be best to locate. We contemplated buying a site by the airport in Fort Wayne. The math for the transportation costs from our model shows that we should be in Fort Wayne because of where we distribute. Mr. Adams continued, The reason we are making the decision, hopefully with your support tonight, to stay in South Bend is one hundred percent (100%) based on the employment we have 2 REGULAR MEETING September 24, 2018 here at the facility. We employ one hundred and eight (108) people. About half(1/2) of that are drivers and the other half(1/2) are warehouse personnel. In a three percent (3%) unemployment economy,to rehire over one hundred(100)people,fifty(50)truck drivers and fifty(50)warehouse personnel in a different part of the State,we think would cause quite a disruption to the operations. We are thrilled with the associates that we have. The operation runs phenomenally well. Kudos to all the economic development people and the Council for any workforce programs and other programs you have put out. We have a great workforce here in South Bend and we are pleased to expand. We are looking to move about seven (7) miles to the north to the aforementioned parcel on Dylan Drive and in Portage Prairie. We are currently subleasing 156,000 square feet. The project we are contemplating is purchasing twenty (20) acres and constructing a 232,000 square foot facility that we would own and operate. This (referencing a slide in a presentation which is available in the City Clerk's Office) is a concept elevation. Mr. Adams went on, It will be a concrete block modern distribution center. And then this (referencing another slide in the presentation) is the site plan. Doors are on both sides and there will be parking for all the employees and drivers. It is an aggressive timeline for construction but, with the City's support, we anticipate construction taking about one (1) year. We will start before the winter fully sets in and we would finish about a year from now. Development costs, as mentioned, are $14 million. That is privately funded by NFI. We then expect to invest about $4 million in machinery and equipment into the building for a total capital investment of$18 million. Council President Tim Scott then opened the floor to questions from Council Members. Councilmember Oliver Davis asked, Do you really have to leave the sixth(6th) district to go to the first(1St)? I mean I'm glad you're staying in town and everything. I wish we could find a spot for you on that side of town but I'm still glad you're on the West Side. Enjoy your last year on our side of town. I tell you, bless your heart. Moving forward, thanks for staying in South Bend. I appreciate that. Councilmember Regina Williams-Preston asked, If you did not get this tax abatement, would you still stay in South Bend? Mr. Adams replied, We would make the move south. Councilmember Regina Williams-Preston followed up, You are currently renting space from Lippert, correct? Mr. Adams replied, We rent a portion of its warehouse, yes. Councilmember Regina Williams-Preston then asked, Do you have any other business affiliations or connections to that company? Mr. Adams replied,None at all. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. Samuel Brown, 222 East Navarre Street, South Bend, IN, stated, I think this is a great idea by keeping it in the City of South Bend. My only question is are there going to be new employees once they get out to the new place? That's the only question I have but I am all in. Council President Tim Scott requested the petitioner to answer the question posed in the public hearing. Mr. Adams replied, Much like the development costs, we don't want to over-promise and under- deliver. So we have one hundred and eight (108) employees, we are moving into a much larger facility than we are currently in,we fully expect there to be some opportunities for job growth,but all we know is we are going to retain these jobs. I don't want to come here and throw out a number that may not be achievable. We like to stay pretty conservative with our estimates. Mr. Buckenmeyer stated, Councilmember Davis, even if it was a little facetious, I know you were talking about them leaving your district but I believe also part of.the reason they are leaving is because of the expansion of Lippert and a request by Lippert to start utilizing that space. 3 REGULAR MEETING September 24, 2018 Councilmember Gavin Ferlic made a motion to adopt Bill No. 18-53. Councilmember Oliver Davis seconded the motion which carried by a roll call vote of nine (9) ayes. Councilmember Oliver Davis stated, Thank you, Mr. Buckenmeyer, for putting in the stats about when we will break even. I appreciate you doing that because that really helps us in our whole argument regarding abatements.People like to see that and I'm glad you added that in.If you could continue to do that, it helps us in our whole argument. Thank you, sir. RESOLVE INTO THE COMMITTEE OF THE WHOLE At 7:18 p.m. Councilmember Karen White made a motion to resolve into the Committee of the Whole. Councilmember Oliver Davis seconded the motion which carried by a voice vote of nine (9) ayes. Councilmember Gavin Ferlic, Chairperson,presiding. Councilmember Gavin Ferlic explained the procedures to be followed for tonight's meeting in accordance with Article 1, Section 2-11 of the South Bend Municipal Code. PUBLIC HEARINGS BILL NO. 36-18 PUBLIC HEARING ON AN ORDINANCE AMENDING THE ZONING ORDINANCE FOR PROPERTY LOCATED AT 1939 & 1947 CHARLES STREET, COUNCILMANIC DISTRICT NO. 4 IN THE CITY OF SOUTH BEND, INDIANA Councilmember Oliver Davis, chair of the Zoning and Annexation Committee, reported that they met this afternoon and send this bill forward with a favorable recommendation. Jordan Wyatt, Planner for the Area Plan Commission with offices located on the 11th floor of the County-City Building, South Bend, IN, served as the presenter for this bill. Mr. Wyatt stated, The petitioner is requesting a zone change for the area outlined in red (referencing a slide in a presentation which is available in the City Clerk's Office). They are proposing to change from SF- One (1), Single-Family and Two (2)-Family District to LB, Local Business District. To the north are vacant parcels used for draining zoned LB, Local Business. To the west are businesses zoned GB, General Business. To the east is an office building zoned LB, Local Business. To the south are Single-Family homes zoned SF-One (1), Single-Family and Two (2)-Family District. This (referencing a slide in the presentation) is a view of the site looking to the east on Charles Street. The house to the left is currently vacant and is used for storage. The house on the east there, the white house, there is no tenant now but it is used as a Single-Family residence. And then this is the view looking to the west. Here is the site plan showing the expansion of the parking lot. South one hundred and twenty (120) feet of the east two (2) lots will remain SF-One (1), Single-Family and Two (2)-Family District. Bryan Wynen, 1820 South Bend Avenue, South Bend, IN, served as the petitioner. Mr. Wynen stated, Our business has grown over time and we would like expand the parking. As you saw by the pictures, we are going to maintain the front view so it will look residential still. We will be using shielding and fencing that is further back to keep the view of the cars in the back. We think this will be a great compliment to the needs of the commercial space as well as the residents living there on Charles Street. We have been there thirty (30) years now and are very familiar with all the people there and we try to be as neighborly as we can. Councilmember Oliver Davis asked, Can you share your experience of talking with the neighbors about that and what that was like? Mr. Wynen replied, We showed the neighbors the fencing we could put up and talked to them about leaving the home in place. Councilmember Oliver Davis then asked, And they were? 4 REGULAR MEETING September 24, 2018 Mr. Wynen replied, They didn't have much to say. They were just fine with it. Councilmember Oliver Davis stated, Thank you for going ahead and taking that approach to meet with them. I appreciate it. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. None from the public wished to speak in favor of or opposition to this bill. Councilmember John Voorde made a comment about an area of overgrowth while referencing a picture in the presentation. He stated, The people who live in this apartment complex walk the street quite a bit. I would like Public Works to look into that. Thank you. Councilmember Tim Scott made a motion to send Bill No. 36-18 to the full Council with a favorable recommendation. Councilmember John Voorde seconded the motion which carried by a roll call vote of nine (9) ayes. 37-18 PUBLIC HEARING ON AN ORDINANCE INITIATED BY THE AREA PLAN COMMISSION OF ST. JOSEPH COUNTY, INDIANA AMENDING CHAPTER 21 OF THE SOUTH BEND MUNICIPAL CODE, ARTICLE 14 SUBDIVISIONS TO DELETE CERTAIN LOT DESIGN STANDARDS THAT DUPLICATE LOT SIZE STANDARDS IN THE ZONING ORDINANCE, AND DELETE FLOODPLAIN DEFINITIONS THAT HAVE BEEN UPDATED IN THE ZONING ORDINANCE Councilmember Karen White made a motion to hear the Substitute version of Bill No. 37-18. Councilmember Tim Scott seconded this motion which carried by a voice vote of nine (9) ayes. Councilmember Oliver Davis, chair of the Zoning and Annexation Committee, reported that they met this afternoon and send this bill forward with a favorable recommendation with one (1) opposition vote. Angela Smith,Deputy Director of the Area Plan Commission with offices located on the 11th floor of the County-City Building, South Bend,IN,served as the presenter for this bill.Ms. Smith stated, What you have before you is the revised Subdivision Ordinance. In your packet there are actually two (2) versions. One (1) is a substitute version that was attached to the staff report from the Area Plan Commission and we are working on getting that clarified. This comes to you with a favorable recommendation. We worked closely with the Department of Community Investment. Michael Divita, Planner for the Department of Community Investment with offices located on the 14th floor of the County-City Building, South Bend, IN, served as the petitioner for this bill. Mr. Divita stated, We are bringing to you some changes to the Subdivision Ordinance. Since the present Subdivision Ordinance was created in 1982, changes elsewhere in the Zoning Ordinance for other City standards have been made to align with other City standards. Specifically, the lot- size standards were added to the Ordinance and that took effect in 2004. The City's floodplain regulations were revised in 2015. Those floodplain definitions now reside in those separate floodplain regulations and are no longer necessary in the Subdivision Ordinance. The Board of Public Works adopted new construction standards and specifications this ye that govern street and alley width and construction standards. Those standards are no longer in the Subdivision Ordinance. The primary goal here is not to change standards as it really is just to clean up those redundant or conflicting standards as they may make more sense elsewhere. We hope this clears up any confusion a sub divider might have as they go through the process. We ask for your favorable recommendation and approval and I am happy to take any questions you may have. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. None from the public wished to speak in favor of or opposition to this bill. 5 REGULAR MEETING September 24, 2018 Councilmember Jo M. Broden made a motion to send Substitute Bill No. 37-18 to the full Council with a favorable recommendation. Councilmember Oliver Davis seconded the motion which carried by a roll call vote of nine (9) ayes. Councilmember Gavin Ferlic stated, Today will be the second (2"d) reading and public hearing. This will be the last opportunity for the public to comment on Substitute Bill No. 38-18 and Bill Nos. 39-18 and 40-18. We will continue these bills in the Council Portion Only at the next Council meeting to be held October 8th, 2018. There will be no public comment, however there will be discussion among Council at that meeting. Leading into the next couple of weeks, certainly, if members of the public have additional comments, you're always welcome to reach out to any or all Council Members. Councilmember Oliver Davis interjected, Councilmember Ferlic said to reach out to all Council Members. What would be the suggested way to reach out to the Council Members in between now and the time we vote on the budget? Councilmember Karen White replied, Email or telephone. Councilmember Oliver Davis stated, Email, telephone,just wanted to put that on record that you can reach out to us from that standpoint. Call your Councilperson and email the Mayor from that standpoint. That's all, thank you. Councilmember Karen White requested City Controller Hockenhull to summarize the calendar to which the Council must adhere to regarding the process of voting on and adopting the budget. Jeri Hockenhull, City Controller for the City of South Bend with offices located on the 12th floor of the County-City Building, South Bend, IN, stated, We do have outstanding questions and I do hope to get responses to you by tonight. We will then have responded to all the questions that have been formally presented to us by Council so far. I think there may be one (1) more round we are getting but we will get all of those answers to you well before the October 8th, 2018 passage of the budget. We will continue to respond to any questions you have by email or phone, or stop in and see us. We do hope to pass the budget on October 8th,2018. The latest we can pass it is November 1St, 2018 but October 8h, 2018 would be ideal. Councilmember Karen White stated, We started this budget process on May 22nd, 2018. That was a public meeting held at Ivy Tech. That was followed by a meeting on July 12th, 2018 with NRC and the Administration. The first (1St) actual budget meeting we had was on August 1St, 2018. Including today's meeting, we would have had eleven (11)budget hearings. Each one (1) of those hearings have had public input and, again, I think the Council will have ample opportunity for debate and discussion as we move forward. 38-18 PUBLIC HEARING ON AN ORDINANCE OF THE CITY OF SOUTH BEND, INDIANA, LEVYING TAXES AND FIXING THE RATE OF TAXATION FOR THE PURPOSE OF RAISING REVENUE TO MEET THE NECESSARY EXPENSES OF THE CIVIL CITY OF SOUTH BEND FOR THE FISCAL YEAR ENDING DECEMBER 31, 2019 Councilmember Tim Scott made a motion to hear the Substitute version of Bill No. 38-18. Councilmember Oliver Davis seconded this motion which carried by a voice vote of nine(9) ayes. Councilmember Karen White, chair of the Personnel and Finance Committee, reported that they met this afternoon and send this bill forward with a favorable recommendation. Jeri Hockenhull, City Controller for the City of South Bend with offices located on the 12th floor of the County-City Building, South Bend, IN, served as the presenter for this bill. Ms. Hockenhull stated, The ordinance before you is an ordinance requesting to set the various rates for the various Funds that collect property tax revenue. We calculated these rates based on information that we put into our Gateway System through the State. The rates are very similar to 2017. I also wanted to be sure to note that these do not affect the property tax caps. These just have to do with the revenues throughout the County that will be distributed to the City. 6 REGULAR MEETING September 24, 2018 This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. None from the public wished to speak in favor of or opposition to this bill. Councilmember Tim Scott made a motion to send Substitute Bill No. 38-18, with a favorable recommendation, back to Committee of the Whole for Council Portion Only discussion and third (3`d) reading on October 8th, 2018. Councilmember Oliver Davis seconded the motion which carried by a roll call vote of nine (9) ayes. 39-18 PUBLIC HEARING ON AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING MONIES FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF SEVERAL DEPARTMENTS OF THE CIVIL CITY OF SOUTH BEND, INDIANA FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2019 AND ENDING DECEMBER 31, 2019 INCLUDING ALL OUTSTANDING CLAIMS AND OBLIGATIONS, AND FIXING A TIME WHEN THE SAME SHALL TAKE EFFECT Councilmember Karen White, chair of the Personnel and Finance Committee, reported that they met this afternoon and send this bill forward with a favorable recommendation. Pete Buttigieg, Mayor of the City of South Bend with offices located on the 10 floor of the County-City Building, South Bend,IN, served as the presenter for this bill.Mayor Buttigieg stated, Good evening, Council. I look forward to, in a moment, turning it over to the City Controller to walk you through the final budget presentation. I wanted to take a quick opportunity just before that,because of some late breaking news,to acknowledge and update the Council that we did have, as you may have heard, an officer-involved shooting this afternoon on Marion Street. We understand the person shot, the suspect, was taken to a hospital with nonlife-threatening injuries. The officer has been looked at but to the best of my knowledge was not injured.As with all officer- involved shootings, that is customarily investigated by the Metro Homicide Unit. Any further updates will come from them but as they update me, if there are any questions or concerns with the Council, I will be sure to keep you updated. I'm sorry for that to become part of what is on our minds this evening, but I knew that it was a concern and I thought I would go ahead and acknowledge that at the beginning. Mayor Buttigieg continued, So, turning from that to the matter at hand. First (1 st of all, I just wanted to thank the Common Council Member and Budget Chairperson White, Prresident Scott and every member of the Council who has been involved in this process.As was mentioned earlier, there has been a very thorough calendar and I think it is fair to say that each year we have been able to make the process more fine-tuned than the last. This year in particular, I really appreciate how members of the Council have worked with the Administration. I want to thank our City Controller, Jen Hockenhull, for her leadership within the Administration on this. Our focus as we suggested when we introduced the budget formally some weeks ago was to really respond to the Council's call for us to have a budget that focuses on neighborhoods. We have a number of different priorities, as always,jostling for attention. Hopefully, everything you see is in some way, shape or form part of our shared mission and program to enhance the quality of life in neighborhoods around the City. Again, Jen will go through some of the highlights of how our budget does that. I want to thank our team and everyone in the Administration who worked on this and also everyone on the Council that has helped us bring it to this point. This is, obviously, the introduction and not the end of this dialogue or vote but this is the best moment I have to express my hope that this budget is looked upon favorably by the Council. Thank you. Jen Hockenhull, City Controller for the City of South Bend with offices located on the 12th floor of the County-City Building, South Bend, IN, served as presenter of this bill. Ms. Hockenhull stated, First (1St), I would like to start by thanking everyone here for all of your time you have put into this incredibly long process. It has been a great process and we couldn't have gotten here 7 REGULAR MEETING September 24, 2018 without you, the input, the departments and the residents. Thank you to everyone in this room tonight and those who are not. I really feel this has been a great process and I appreciate everyone's support in it. Ms. Hockenhull continued, So I would like to start with where we have been. As the Mayor and Councilmember White pointed out, we started this process back in Maw with our resident input session. We had a budget kick-off meeting which many Council Members came to and they let us talk about where we see the budget. Better yet, and then I think the best part of the meeting, is when the Council Members tell us what they think. Getting that information in May is very helpful to us as we craft the budget. We've participated in ten (10) Committee hearings. We've heard from the residents,the Council and the department heads. We've gone ahead and listed them out here (referencing a slide in a presentation which is available in the City Clerk's Office)just in case anyone has forgotten when they have been and what we've discussed. Then tonight, we are here to give a very high-level summary. I don't want to go through in depth everything we've gone through for the last six (6) weeks. Obviously our doors are always open so please come to us and talk to us if you have any further questions or if you feel you missed the boat and we haven't given you the information you need for October 8th, 2018. Ms. Hockenhull went on, Our main budget focuses have been, for 2019, vibrant neighborhoods, resident engagement, public safety, health and human service education, capital investments throughout all the departments of the City, quality of place, business development and the support of our City workforce and departmental effectiveness. I've listed here (referencing a slide in the presentation) the Council's budget goals as your group has presented to us back in May and we feel we have, in some way, shape or form, addressed everything on this list and we hope that you agree. I will not read them but they have been addressed. And these (referencing another slide in the presentation) were the resident budget goals that we heard in our various meetings from the beginning.Again,we feel that all of these items are also addressed in some way in the 2019 budget. Our budget priorities as an Administration have remained the same for the last few years on an overall basis.Not only with the neighborhoods but with the safe community for everyone, a strong and inclusive economy and so forth. A lot of these slides have been in all of our other presentations and so that is why I am not reading all of them. Ms. Hockenhull continued, So I've decided to do the presentation a little differently this year. I'm just going to go ahead and highlight what I see, and I couldn't pick just ten (10) so I went with eleven (11), but I hope you agree with me and they aren't in any particular order but why you should vote for this budget. I do feel like this budget hits everything but, again, if I've missed something, let me know. So, why should you vote for this budget? First (lst) of all, park improvements. There might be a new park in your neighborhood next year. There is free wifi in many areas of the City. There is a lot of neighborhood engagement with heavy focus in 2019 both with outside partners as well as with new City staff. Council is receiving a larger allocation of curb and sidewalk dollars with the approval roval of the additional curb and sidewalk personnel in Public Works. There is significant funding for lead abatement related initiatives. This budget will allow for continued capital investment in water, waste water, EMS, Fire and all other departments in need of capital investment. We are continuing to approve those capital project budgets. We are not currently putting off capital just to save money or kick it down the road. We are continuing to fully fund our capital needs as of right now. Ms. Hockenhull went on, Our residents will have access to a life-long learning platform. We are doubling our budget for the owner occupied home repair programs that will assist the residents,as well as the neighborhoods. It's not just a one (1) house focus; It is a neighborhood focus. We continue to address some of the most vulnerable in our City with permanent supportive housing initiatives, opioid addiction services and workforce transportation programs. There are also workforce development programs included in there as well. We continue to take care of our employees. We need to take care of our employees in order for us to continue serving the residents of South Bend. We are doing that through the raises that were either in the bargaining agreements or the two percent (2%)raise throughout the City for non-bargaining employees. Our Health and Wellness Clinic, TRANSPO bus passes and other benefits allow us to make our City a great employer for great employees. The eleventh (11th) one (1) is that we are allowing improvements in our neighborhoods by providing for a housing program. It is a pilot program for Sherman and 8 REGULAR MEETING September 24, 2018 Harrison,Portage and Elway streetscapes and Western Avenue Phase Three(3)just to name a few. I hope that within these top eleven (11) that we've picked that we covered a lot of what you are asking for. If you want me to come back with another list on October 81h,2018,please let me know. I'm happy to review that again. Ms. Hockenhull continued, So where does our revenue come from? What is our revenue budget for 2019? As you can see (referencing a slide in the presentation), our total revenues are about $336 million. About thirty percent(30%) of that comes from charges for services. That is going to be our water, waste water and EMS fees. About a quarter(1/4) of them come from property taxes. I just want to note that we are budgeting very conservatively for property taxes. I've mentioned it before in our meetings but the State is very conservative when they give us our estimates and we have paid for a report to be done to estimate what our property taxes are going to be. Those results are pretty different so we are trying to err on the side of being more conservative. Hopefully next ygar we will be in front of you announcing a great surplus. For budgeting purposes, we want to make sure we are not over-spending and under-getting our revenue. We did also get good news back on our Local Income Taxes. They will be going up about ten percent(10%)for 2019. That is very positive news this year. Ms. Hockenhull went on,Now we have our expenditures. We are budgeting to spend about $368 million. As you can see, thirty percent (30%) of our expenditures are in the Enterprise Fund, so that does line up. Our Special Revenue Funds will include the parks, streets and sidewalks expenditures. Our General Funds is about eighteen percent(18%) of our expenditures and then we have our internal service funds and so on. That is our estimated budget for 2019. All of this detail is available online from the line item as well as summaries. We also wanted to show how we are spending the budget by each priority. We are spending about a quarter(1/4) of our budget on safe communities for everyone. Another quarter (1/4) of it is spent on a robust and well-planned infrastructure. You can't have one (1) without the other, so, really, we are trying to keep our neighborhoods and City safe by spending money appropriately. Ms. Hockenhull continued, We've talked a lot about cash reserves over the last six (6) weeks. What does it mean to have cash reserves? Why are or why aren't we spending it? I just wanted to throw a really quick slide up here to briefly talk about it. Cash reserves are cash available to meet the needs of the City's operations, specifically,unanticipated needs. So the City has a cash reserve policy for every single fund. Every year, in January, we come before the Council and give you a report that has our cash reserves and investment policies. All of that information is bundled together but every single Fund has its own cash reserves limit. As you can see, our target for the General Fund is thirty-five percent (35%). We always want to make sure that we have, at least, thirty-five percent (35%) of our annual expenditures in our account. At the end of 2019, after this budget, we anticipate to have about a fifty-six percent (56%) cash reserve level. As far as COIT and EDIT go, we will be at sixty-four percent (64%) and one hundred and three percent (103%) respectively, whereas our target is only fifty percent(50%). So while, yes, we are spending down overall,if we look at the entire bucket of money we have,we really need to focus on these General Plus Funds. So that is COIT, EDIT, General Fund and Public Safety LOIT. We are presenting you with a balanced budget in those Funds. We are having no spend-down in reserves in any of those four (4) funds and we will continue having very strong reserves in those Funds at the end of 2019 and going forward. I hope that makes a little more sense as we go through this process. We also have a Rainy Day Fund. That is our true savings Fund. We don't touch it and I believe the last time it was touched it was back in 2008. Money was taken out but put right back in in the same year. We have about$10.5 million in that Fund. Ms. Hockenhull went on, We also talked a lot about people. People make up a lot of our expenditures but they also do all the work in the City. We are budgeting for 1,145 employees for 2019. That is up about eleven (11) from 2018. We discussed this a great deal on September 19th 2018. Here is our head count summary. As you can see, about two thirds(2/3) of our workforce is under a bargaining agreement. We've got the Police, Fire and Teamsters Union which cover quite a big part of that pie. So when we talk about the salary ordinance, we are only talking about one third (1/3) of our employees, just as a reminder. We work really hard on our budget document annually and our budget process, so, I always like to point out that we did get the Distinguished Budget Presentation Award from GFOA and we've gotten that three (3) years in a row. We 9 REGULAR MEETING September 24, 2018 received some good news on our fiscal curb. We had the analysis reworked with the increase in the property taxes we had gotten recently. We are down to about a $1.94 million fiscal curb. That is down just under $500,000 from where we thought it was going to be earlier this year. We feel we have kind of figured out how to meet that $1.94 million hole we might see in 2020 based on moving some projects in 2019 and 2018. We've got some big housing projects that we've talked about that are focused in 2018 and will go away in 2019 along with some other items I will talk about here in a moment. $1.94 million is something we can handle and get through and we will be able to bring you balanced budget in 2020. Ms. Hockenhull continued, So here (referencing a slide in the presentation) is fiscal outlook. We feel that if we continue with business as usual, meaning everyone get their raises as approved, the health insurance goes up four percent (4%), just the normal everyday things that happen with inflation, we feel like if we don't anything different between today and 2020, we will have about $3.3 million deficit in our General Plus Funds in 2020.However,that isn't simply due to this fiscal curb. A lot of this has to do with Medicaid reimbursement levels at the Federal level so we are having some capital challenges in EMS and Fire. We used to use that money to fill those needs so we will be working on fixing that. We lost some Gas Tax receipts that we weren't expecting at the State level and we are working through that. Also the riverboat gaming revenue that we used to get that we won't be getting now. So, we've got a couple things that have happened that were out of our control that we will continue working through. Ms. Hockenhull went on, So to get ahead of these new challenges, we will continue looking at ongoing organizational refinements. Can we civilianize positions in Police and Fire? The hiring freeze isn't saying we won't hire anyone ever again come January..We are just going to be taking a really deep look into all the positions as they become vacant. We seek to continue identifying public-private partnerships if possible. We are investigating different funding sources such as grants. We are also looking at the budget in a two (2) year lens. Our concluding thoughts are that we have about a$368 million budget. Again, I'd like to point out that we've got a balance budget. We are giving you a balancing budget in your General Plus Funds. We continue to move toward the long-term balance while relying on modest reserves and modest increases in revenues. We continue to maintain the City's growth through continued investment in our neighborhoods, our people, in technology and measuring our performance for continued improvement. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. Samuel Brown, 222 East Navarre Street, South Bend, IN, stated, I'm a Human Rights Officer for the City of South and we're moving out into the County and we are very excited about that. The problem we're having is, we wanted our extra person in case we get a workload in the County. The problem with it is when you budget, I would like for them to try to look it over. We want to try and do our job. I would like for the Mayor to try and find us at least one (1) more person but we really need two (2). It would mean a lot. Right now, we are trying to serve the County but we are dragging our feet and are finding it hard to serve like we should. I'm praying we can try to find this money. Thank you for listening to me. Sue Kesim,4022 Kennedy Drive, South Bend,IN, stated,The Finance Administration did a lovely job on the actual presentation. I can see why they got an award and they made it easy to use. The citizens, we appreciate that. The point I would like to address is one (1) that has come up repeatedly. There are eighty (80) lane miles that are level four (4) or worse. According to Eric Horvath, that would take about $8 million to bring that up. I think people are tired of having their front ends go out and the pot holes. One (1) of the core things of the City is keeping those roads passable and in decent condition. I don't know where you are in terms of rearranging money but I think there needs to be $8 million to address those roads. This being the time heretofore set for the Rebuttal on the above bill, the presenter was given an opportunity to rebut. Ms. Hockenhull replied, We appreciate the comments. We will be sure to look through and see if there is anything we can do. $8 million for roads will be a stretch but we will look and come to the Council with information when we respond to these questions with additional information. There is a position for Human Rights in this budget. 10 REGULAR MEETING September 24, 2018 Councilmember John Voorde stated, I would just like to start by complimenting Council leadership, especially Karen White,the Administration, especially the Controller and her staff, for being so open and responsive to Council's questions. You don't have to have been around very long to know it didn't always work this way and it was far from being as open as it is now. Those of us who have been around can tell tales of back room deals to get votes and things like that. It is good that doesn't happen anymore. And there was very little solicitation of public input. So now, thanks primarily to Karen and Tim and with working with the rest of the Council Members, if we don't have the information that we think we need it's because we haven't asked. I don't know of anything that the Administration has not responded to. We don't always agree on specific amounts and I think there are still some things between now and October 8th, 2018 to be agreed upon or at least approached. I'm pretty confident that is going to happen based on what has happened already. I would like to applaud the Administration. Councilmember Sharon L. McBride stated, I would like to follow up again with a question about Human Rights because I was asked about it and I still don't think I got clarification. There is a part-time position in there but from my understanding there was a position in there that was removed. I am trying to get clarification on that. I think in its inception it was. Councilmember Karen White stated, I think in the 2018 budget process, at that time, the Human Rights Commission considered a budget based on them eliminating one (1) position. I cautioned them to do that as they would not know the impact of expanding into the County. They are asking for a part-time position based on the recommendation of the leadership. Councilmember Oliver Davis stated, I would also like to thank you, Jen. You followed up on my suggestion because I think it is important to put the numbers into terms.Not only from the financial point of view but it helps us argue our case for or against the budget in terms of sharing with citizens. It helps me get reasons of why I voted for or voted against it. In your case of course and tonight, voting for the budget. That's great because a lot of times we get caught up in the different numbers and not everybody is able to see that. Then people can say this is what is important for district six (6) or whatever district anybody up here is representing. So I appreciate that and I forwarded the recommendations you had sent to me onto the Council. I think that is important because people need to ask why did you vote for that budget and then I can say reason one (1), two (2), three (3), four (4), five (5), six (6), seven (7), eight (8), nine (9), ten (10), eleven (11) or whatever. I think people need to see that because I've been asked that. So the more we can put that in those terms is important. Toni ht I did share some concerns I had with the zoning issues so we will talk a little bit more about that and I'll share my notes about that. I'm not against the idea and concept but how we put that together and when we do that is something I would like to talk to people about.Are there any other considerations from Dianna Hess' neighborhood group?I would like for us to at least consider that again as we really push this whole concept about our neighborhoods. I think we have enough in our budget to do what the Administration wants to do and then also look at adding issues there to whatever disagrees, I know that some things wanted to be done lasts and they want to do some things this year and I understand that but I think that we can still do both and have enough funds where we can do that. I think that helps us to build the wheel toward that issue and not have, at this time in our Administration, have that friction. We want to get neighborhoods involved in a lot of ways. Not only through the Department of Community Investment but also through organizations like that. I think between now and October 8th, 2018, if some monies can be reconsidered to be put back. If it's not even the full amount, something toward that so that some people have had some insight and some kind of consideration. If you want to make some more stipulations with what they need to do in order to get that and they have to follow that or else it will be cut for next time, I'm all for that too. I just think that we have to honor that and they add a good service to our community and to look at issues like that. So those are some of the things that I would like for us to look at. I appreciate all the sidewalk issues and more issues coming from that. I am done and I will share more things in a letter. That's just where I am. Ok, cool. Thank you. Councilmember Jake Teshka stated, Jen, first (1St) of all, thank you. I applaud you and your team for the work you put into this. This is my first (1St) rodeo so putting all of this together, there is a lot. Thank you for all the work you've done. I would like to echo Ms. Kesim's sentiments about paving,roads and infrastructure. We did that City Survey and,unsurprisingly,roads, infrastructure REGULAR MEETING September 24, 2018 and Public Safety are the top priorities of our citizens. In terms of our budget, I think at the current rate we are paving, I don't think it's sustainable. We are blessed to live in a one hundred and fifty- two (152) year old City because it has rich history but it also has an aging infrastructure. I would like to see it addressed by continuing that dialogue in how we can further address our roads. Councilmember Regina Williams-Preston stated, I would like to thank you all again. It really has been a great process. Councilmember White, thank you for expanding the connection with the community. We really got out there and got that feedback. I think it says a lot. The very first (1St) thing we did was get feedback from residents. That is fantastic. Just a really quick thing on the NRC, I've been talking to them about some really important programming so I don't know who would be the person I need to talk to but I would like to talk to someone about the programming with regards to restorative practices that could possibly get into the issue of proactive strategies to reduce violence in our community. There is a lot of work happening in the schools and various other community organizations. NRC is interested in being a part of that so maybe we could provide some resources for that programming for in-reach. That is my favorite word. Maybe we can have a conversation but I would like to see that as Councilmember Davis mentioned. Let's try it again for another year and let's hit the goals that are set out and make sure we are figuring out ways to be sustainable. The City shouldn't support a non-profit ongoing but what can we do to make sure we are ready for that in the coming year? That's it, thank you. Councilmember Karen White stated, Most of you know that I really enjoy the budget process. I would like to thank the Council Members for your input and support as we are moving towards adopting the 2019 budget. I would also like to personally thank the City Clerk's Office and her staff. They've done a tremendous job in terms of ensuring the questions and powerpoints are available. Responding to nine (9) Council Members, I really appreciate all of your work and your staff as well. Maybe six (6) years ago we started talking about quality of life issues and really started focusing on neighborhoods. I have always made this statement but a city cannot be great without having great neighborhoods. As we continue to refine the process and as we continue to look at the various priorities, it is very gratifying to see those particular funding priorities that really impact the neighborhoods.I really appreciate the Administration listening and bringing forth those particular priorities that not only we have been sharing but what we heard from our citizens as well. I look forward to the next two (2) weeks and look forward to October 8th, 2018. Councilmember Oliver Davis stated, One (1) other question. I know we had a, it wasn't a budget meeting, well, we did have a budget meeting but we also had a special meeting regarding the people in the Leeper Park area and all the flooding. I want to make sure we have enough in the budget to address the issues the brought to us that night. I know there was some talk about not having enough to cover those things and that but I want us to make sure, even the rain we had last Thursday was amazing. When we have this heavy rain now it seems like its coming more and more and I want to make sure we have more funding in that area to cover situations like this because it is becoming more of a biyearly flood and not a five hundred(500)year flood from that standpoint, so,if we could really make sure we have that,that is a huge concern of mine.And since TRANSPO about to make their thing, I'm glad they worked with their budget and I'm glad for that and the fact that there are no fee raises on our budget so thank you. Councilmember Tim Scott made a motion to send Bill No. 39-18, with a favorable recommendation, back to Committee of the Whole for Council Portion Only discussion and third (3rd) reading on October 8th, 2018. Councilmember Oliver Davis seconded the motion which carried by a roll call vote of nine (9) ayes. 40-18 PUBLIC HEARING ON AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING MONIES FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF THE DESIGNATED ENTERPRISE FUNDS OF THE CITY OF SOUTH BEND, INDIANA, FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2019 AND ENDING DECEMBER 31, 2019 INCLUDING ALL OUTSTANDING CLAIMS,AND OBLIGATIONS, 12 REGULAR MEETING September 24, 2018 AND FIXING A TIME WHEN THE SAME SHALL TAKE EFFECT. Councilmember Karen White, chair of the Personnel and Finance Committee, reported that they met this afternoon and send this bill forward with a favorable recommendation. Jen Hockenhull, City Controller for the City of South Bend with offices located on the 12th floor of the County-City Building, South Bend,IN, served as the presenter for this bill. Ms. Hockenhull stated, Because we present our budget to you as a whole package with Civil City and Enterprise Funds, I do not have an additional presentation for this as it was all presented in the previous presentation. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. None from the public wished to speak in favor of or opposition to this bill. Councilmember Tim Scott made a motion to send Bill No. 40-18, with a favorable recommendation, back to Committee of the Whole for Council Portion Only discussion and third (3`a) reading on October 8th, 2018. Councilmember John Voorde seconded the motion which carried by a roll call vote of nine (9) ayes. 41-18 PUBLIC HEARING ON AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING, ADOPTING AND APPROVING THE SOUTH BEND PUBLIC TRANSPORTATION CORPORATION'S 2019 BUDGET AND LEVYING THE TAX AND FIXING THE RATE OF THE TAXATION FOR THE PURPOSE OF RAISING REVENUE TO FUND THE SOUTH BEND PUBLIC TRANSPORTATION CORPORATION, SOUTH BEND, INDIANA, FOR THE FISCAL YEAR ENDING DECEMBER 31, 2019 Councilmember Karen White, chair of the Personnel and Finance Committee, reported that they met this afternoon and send this bill forward with a favorable recommendation. Chris Kubaszak, Controller for TRANSPO with offices located at 1401 South Lafayette Boulevard, South Bend, IN, served as the presenter for this bill. Mr. Kubaszak stated, We are TRANSPO of South Bend. We serve South Bend and Mishawaka. We currently have one hundred and seventeen (117) total employees. We operate forty-nine (49) fixed route vehicles and an additional seventeen(17)para-transit vehicles.During 2018,our accomplishments include starting new ridership programs with Holy Cross College and IU-South Bend. That allows the schools to pay for free rides for the students and the faculty. We also had the record ridership for K through twelve (12) youth ridership. This year we offered it for free so the students K through twelve (12) didn't pay any fee to ride our buses. We had a budget goal of 12,000 rides and we ended it with 27,571 rides for the summer. We also partnered with MACOG to launch the yellow-line corridor route. What that does is it allows thirty (30) minute travel time from Mishawaka transfer facility to downtown Elkhart. In addition, we just purchased new technology to improve our para-transit service. That would improve our scheduling and our on time reliability. We've ordered our first (1St) round of bus shelters and are waiting to see if we can get those installed before the end of the year. Mr. Kubaszak continued, Our 2019 challenges that we expect to have includes having twenty- seven (27) fixed-route vehicles eligible for replacement. Per FTA requirements, we have to keep them a minimum of twelve (12) years before we can consider replacement. Those twenty-seven (27) are fourteen (14) plus years old so that is a priority that we have. If we replace our older vehicles we cut down on maintenance costs with that and we'll be changing those to CNG fuel instead of diesel fuel. There is always uncertainty in the Federal and State funding that we receive. We are also looking at the 2020 circuit breaker which will amount in an estimated $300,000 13 REGULAR MEETING September 24, 2018 decrease in what we receive. We also have annual increases in our insurance. Not only health insurance but our vehicle insurance and our liability insurance. The last one (1) is that our current collective bargaining agreement expires in November 2019 so we will be looking to enter into the contract negations in the summer of 2019 and we will have an update on that when we come into our next budget season on what that is looking like. Mr. Kubaszak went on, Of our revenue sources, thirty six percent (36%) of our revenue comes from property tax and County Option Income Tax. Another nineteen (19%) comes from State funding which is the Public Mass Transit Fund which is subject to the State changing it on a two (2) year cycle. We receive twenty-eight percent(28%) of our revenue from Federal Operating and Federal Prevent Maintenance. And then only thirteen percent (13%) comes from our passenger revenue. From an expenses standpoint, we spend about seventy-five percent (75%) of our budget on wages and benefits. In addition, another six percent (6%) on materials and supplies. We did balance our budget and our total budget expense is $10,617,606. When you look at our operating expenses compared to prior years, we are pretty flat. We've done that through making changes in our expenses and making some other changes in how we calculate average rates and other minor service stuff. Labor expenses have been very consistent. Our biggest change is us making up for our bad year in health insurance in 2017. Going back to the property tax, that is the other major one (1) we are reviewing right now. We had a study done from Umbaugh & Associates and they anticipate a decrease in property tax about $300,000 due to the 2020 circuit breaker. To put that into prespective, in 2022 we will receive about $2.9 million of property tax revenue and that will be the same amount we received in 2018. Some of the operating assistance we do receive has been pretty flat-lined from the State's standpoint and also relatively flat from the Federal side too. Mr. Kubaszak continued, Some of the 2019 priorities include introducing new technologies into our system. The first (1St) one (1) is our para-transit schedule. We just purchased that and we are looking to get that totally up and running by January 1St, 2018. That will help us improve our efficiency and scheduling on that. We will still continue with our ridership initiatives and look to new partnerships with other organizations besides universities.Additionally,we are going through replacing our current fleet. We did complete a Federal Competitive grant to get money to replace buses. We will know later in the fall if we receive that amount. We will also be applying for the Indiana Volkswagen Mitigation funds to help offset the twenty percent(20%) local match that we have to pay per FTA requirements. Councilmember Jo M.Broden asked,In terms of fiscal oversight and Board leadership adjustments you've made in 2018, could someone address some of those changes? Jamie Woods, General Counsel for the Board of Directors at TRANSPO with offices located at 420 Lincoln Way West,Mishawaka,IN,replied, Since January we have gotten a couple new board members and a new Board President. Mr. Jitin Kain has assumed the leadership as their Board Chair. He and I have met and the Board has changed some of their administrative bylaws and policies. As well, the whole Committee structure with regard to how they received information traditionally has been updated. The entire Board is receiving the information in advance of the meeting. Mr. Teshka has come on the Board as well. I don't want to say anything was ever bad. I've been with TRANSPO for over a decade and they are all very efficient people of good will. There was the one (1) administrative issue at the start of the year but other than that, it's really been a great year. I think these changes in place now will be able to ensure nothing like that happens again. Councilmember Jo M.Broden followed up,You mentioned ridership agreements. The South Bend Community School Corporation is looking at widening their walk radius for students to walk to school. I guess I would like to know if there is an ongoing relationship relative to our schools and transportation of students going to these public facilities. Is it on your radar or no? Mr. Kubaszak replied, Yes,there have been discussions with the South Bend School Corporation. I work on the finance end but I know there have been ongoing conversations with them. I can have our acting CEO and General Manager get back to you on that. Councilmember Oliver Davis stated, I just think that with the new changes they are talking about with the schools, it would be good for her to revisit that again. I believe the South Bend School 14 REGULAR MEETING September 24, 2018 Corporation would do well to work with us in intensifying that effort. The City of Mishawaka has something. Could someone explain what TRANSPO does for Mishawaka? Mr. Kubaszak replied, They are called school trippers. They offset the fixed-route that goes by. We just add an extra bus to that route during the morning to school and afternoon back home. It just adds one (1) more bus and it is open to the public so everyone can pay the same fare. Councilmember Oliver Davis stated, I could see us doing something similar here to add to what we are doing in Mishawaka. If we could look at that I think that would really help us. That one (1) extra bus really makes a difference. Councilmember Jo M. Broden stated, I have three (3) quick comments. Three (3) smart things. First (1St), your summer ridership got knocked out of the park. That is what kind of leads me into that South Bend School Corporation, you, know, can we take this perhaps a little bit further, particularly with regard to some of the older students and up. Your para-transit changes you've made in that program, I am very appreciative of that. And then the yellow-line is great. Thank you for those in particular. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. Samuel Brown, 222 East Navarre Street, South Bend, IN, stated, I have a watchdog group called Citizens United for a Better Government. TRANSPO, I would like to know if we have done a complete audit from the last director. How do you stand financially?I had a problem with him and I was worried about TRANSPO. I would like to know these answers because we all know that we want a good and sound bussing system. From the information I've got, the Dunbar homes got a route pulled. TRANSPO is not adequately serving all the people of South Bend. I hear the wonderful things they are doing with expansion and it sounds good but I've got some concerns. The last director was garbage and I'm not scared to say it. I'm telling you like it is. Him and I had a lot of words about that Dunbar housing project. People have to walk from West Washington down to Western. They have jobs out by the new Martins. Trying to walk down that hill then they have to walk back up that hill. I went to the board meetings and I haven't given up. The citizens, especially me, because I got information left to me by a really trustworthy person, think some of these things are wrong. I hope that we can dialogue and get it straightened out. The Dunbar homes, when they rerouted the bus, got a new hardship. They are elderly people. As fat as I am, I can not walk up that hill from Western Avenue to the Dunbar homes. I hope we get some dialogue to correct that. Jesse Davis, P.O. Box 10205, South Bend, IN, stated, Obviously public transportation is very important to the community as a whole, not just South Bend. While they are looking at their budgets and spending money to replace fleets and things,we have a couple public health and safety issues that are going on in Mishawaka. I know there are Council Members that have seen it. It has been all over social media. Number one (1), I've never run into that transfer center over there but there are people that have to sit there and wait for, sometimes, extended periods of times to get on the buses. I honestly don't know if there are restrooms there. If there are, are they out of order or something?Because there are two (2)businesses, a gas station and the old Bonnie Doons which is now a small restaurant,who frequently get people coming in and out wanting to use the bathrooms. I happened to be in the restaurant one (1) morning and a guy came off one (1) of the buses and tried to pass a counterfeit five (5) dollar bill to get change for the bus. When the lady marked the bill and said that's fake money,the guy hit the door and ran up onto a bus. I chased him to the bus and so I know they have a problem, obviously, with restrooms. They have a sidewalk that I'm assuming is owned by TRANSPO that runs from the walk back to the terminal. That sidewalk has been in such despair for well over a year. I shared a live video last week because an elderly women with a walker couldn't even lift the walker high enough to get around the heave on the sidewalk. Well,when I did the live video and I stepped on that big chuck of sidewalk which is almost as big as this podium, that whole sidewalk teeters. You could get your feet stuck on it, little kids could get their feet stuck on it and its been that way for over a year. It has been on social media and people have talked about it a lot and there is no way that TRANSPO doesn't know that that needs fixing. If we are going to spend money on CNG buses which are supposed to save us money in the 15 REGULAR MEETING September 24, 2018 long run, let's take some of those savings and let's take care of our maintenance issues so that things are safe because, otherwise, it could be a big lawsuit. This being the time heretofore set for the Rebuttal on the above bill, the presenter was given an opportunity to rebut. Mr. Woods replied, We certainly don't want any lawsuits and I appreciate Mr. Davis pointing that out to us. We will make sure Amy Hill, our interim General Manager, is made aware of that. As to Mr. Brown and the particular stop issue, I know there have been a lot of conversations to make sure the stops around the new Martins were favorable and accessible to the folks that would use those stops. If there are ongoing concerns those should be addressed to Ms. Hill as well. TRANSPO is subject to a State Board of Accounts audit. TRANSPO actually hosted the audit. The budget has been relatively flat-lined. Thank you. Councilmember John Voorde made a motion to send Bill No. 41-18 to the full Council with a favorable recommendation. Councilmember Karen White seconded this motion which carried by a voice vote of nine (9) ayes. 42-18 PUBLIC HEARING ON AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING ADDITIONAL FUNDS FOR CERTAIN DEPARTMENTAL AND CITY SERVICES OPERATIONS IN 2018 OF $672,857 FROM ECONOMIC DEVELOPMENT STATE GRANT (#210), $1,000,000 FROM DCI GRANT FUND (#212), $5,000 FROM GIFT/DONATION/BEQUEST FUND (#217), $699,700 FROM LIABILITY INSURANCE PREMIUM RESERVE (#226), ($960,000) FROM LOIT 2016 SPECIAL DISTRIBUTION (#257), ($337,632) FROM LOCAL ROAD &BRIDGE GRANT (#265), $28,100 FROM ECONOMIC REVENUE BOND (#281), ($55,000) FROM COVELESKI STADIUM CAPITAL (#401), ($124,050) FROM UDAG (#410), $28,100 FROM REDEVELOPMENT GENERAL (#433), AND $650 FROM SMART STREETS DEBT SERVICE (#756). Councilmember Karen White, chair of the Personnel and Finance Committee, reported that they met this afternoon and send this bill forward with a favorable recommendation. Jen Hockenhull, City Controller for the City of South Bend with offices located on the 12th floor of the County-City Building, South Bend, IN, served as presenter of this bill. Ms. Hockenhull stated, As we discussed earlier today, I will hit on the larger dollar items. The first (lst) one (1) of $672,000 for the Economic Development State Grant is a new lead grant we've received so we are just asking to appropriate those funds from the State. The $1 million of the DCI Grant Fund, and you'll see a lot of these for the Grant Funds, we receive the money in at the very end of the year so we are just trying to appropriate that. We received more than we anticipated and so we are just trying to budget for the funds we've received in prior years. There is $500,000 we are requesting from our Worker's Comp and Liability Insurance Fund. We got hit pretty hard last. And the very end of last ye there were several very large dollar items and the cost of those are trickling in throughout the year. This is requesting to increase that fund. Fingers crossed we are hoping this covers us through the rest of the year. We don't make the decisions on any of that stuff as there is a third (3rd) party that does that, we just fund it. The $199,000 for the Liability Insurance Fund is due to us setting up separate divisions and one (1) is called Catastrophic Events and we are just requesting to appropriate funds to cover some of the flood-related expenditures that hit the City. We are requesting $200,000 here and we are getting reimbursed by the insurance company so the money will come back into the Fund as we get it. The other large items are reductions in budgets 16 REGULAR MEETING September 24, 2018 and most of those are clean-up items. As we worked on the 2019 budget we realized some items, especially in the road funding area, needed to be reduced based on having to repay some State funds we received because projects came in under budget. Councilmember Oliver Davis asked, Projects coming in under budget, then what happens? Ms. Hockenhull replied, It related to the Safe Routes to School Projects. It happened in 2017 and we did the work in 2018 but the project came in under what we had though we were going to get. The State had given us money to begin with so we had to reimburse the money back to them. It was a fifty-fifty(50-50) match grant. We can't use that money for anything else. Councilmember Oliver Davis stated, Ok, I'm at peace. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. None from the public wished to speak in favor of or opposition to this bill. Councilmember Tim Scott made a motion to send Bill No. 42-18 to the full Council with a favorable recommendation. Councilmember Karen White seconded this motion which carried by a voice vote of nine (9) ayes. 43-18 PUBLIC HEARING ON AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, FOR BUDGET TRANSFERS FOR VARIOUS DEPARTMENTS WITHIN THE CITY OF SOUTH BEND, INDIANA FOR THE YEAR 2018 Councilmember Karen White, chair of the Personnel and Finance Committee, reported that they met this afternoon and send this bill forward with a favorable recommendation. Jen Hockenhull, City Controller for the City of South Bend with offices located on the 12th floor of the County-City Building, South Bend, IN, served as presenter of this bill. Ms. Hockenhull stated, Before you is the third(3`d) quarter budget transfer request. If we have needs for money in a different category but it is not an additional request it shows up on this form. They allow us to move money within the three(3)different categories set forth by the State and those are Personnel, Services and Supplies. We are moving some funds between those different categories. The only large one (1) on here relates to EMS Capital. Unfortunately on here it says Century Center Capital Fund but the fund number is accurate, Fund #287. That is related to moving money between Services and Capital. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. None from the public wished to speak in favor of or opposition to this bill. Councilmember Tim Scott made a motion to send Bill No. 43-18 to the full Council with a favorable recommendation. Councilmember Jake Teshka seconded this motion which carried by a voice vote of nine (9) ayes. 44-18 PUBLIC HEARING ON AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF AN AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $4,205,000 OF CITY OF SOUTH BEND, INDIANA, ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 2018 (POTAWATOMI ZOO PROJECT) AND AUTHORIZING AND APPROVING OTHER ACTIONS IN RESPECT THERETO Councilmember Karen White, chair of the Personnel and Finance Committee, reported that they met this afternoon and send this bill forward with a favorable recommendation. 17 REGULAR MEETING September 24, 2018 Aaron Perri, Executive Director of Venues, Parks & Arts with offices located at 301 South St. Louis Street, South Bend, IN, served as the presenter for this bill. Mr. Perri stated, We are very fortunate, as you are aware, to have the Zoo as part of the City of South Bend. The educational initiatives, the research, the conservation efforts that all happen there are phenomenal. All that aside, the economic impacts and the memories made there match those first (1St) categories, bar none. As you are well aware, we have a partnership with the Potawatomi Zoological Society. It's been a five (5) year partnership and is just about coming to a close. Earlier this summer, the Park Board as well as the Potawatomi Zoological Society (PZS) Board entered into a semblance of negotiations. We passed unanimously at the Board of Park Commissioners meeting in June 2018 a new fifteen (15) year agreement that recognizes the substantial amount of work that PZS has done with the Zoo. I think we can all agree the impact has seldom looked better. As part of that agreement, we went through and requested the Zoo to do a deferred maintenance plan. I think that has been shared with the Council. Those are things needed to keep the Zoo functioning at a very high level. There are also some upgrades that in involved in their thirty (30) year Master Plan that includes a marquee new entrance that will allow the Zoo to expand their educational efforts, become compliant in universal accessibility measures as well as accommodate larger groups. I think you've already heard this at a high level. One (1) final note before we get to the brass tacks, this fifteen(15)year agreement we put together really recognizes the fine work they are doing and the amount of money we are putting into the agreement over the fifteen(15)years actually reduces the taxpayer's burden. When the City was running the Zoo, we were spending about $1.3 million a year on Capital as well as Operations. Throughout the past five (5) years, we've been spending close to $900,000 per year on average. This new agreement will take us down to about $810,000 annually.That does reduce the taxpayer burden.We are able to do that by reducing our Operational subsidy in exchange for some upfront Capital investment. That is what we are talking about tonight. Marcy Dean, Executive Director of the Potawatomi Zoo with offices located at 500 South Greenlawn, South Bend, IN, stated, To echo what Aaron had talked about, these are the improvements (referencing a slide in a presentation which is available in the City Clerk's Office) that are associated with the $4.2 million bond we are talking about toni ht. Without the financing the bond amount is actually $3.7 million, so that is the number I will refer to as I go through our presentation. Of that $3.7 million, $2.2 million is going toward much needed deferred maintenance. That is necessary for us to obtain our Association of Zoos and Aquariums (AZA) accreditation in June 2019. As Aaron mentioned, we did have a deferred maintenance audit conducted August 2017 with outside inspectors. That audit was sent to everyone on Council last week. That lays out around$3.7 million of projects phased by Urgency One (1),Urgency Two (2) and Urgency Three (3) in terms of the necessity for accreditation. The $2.2 million will address Urgency One (1)which is the most urgent phase. Those are needs that need to be completed either before our June 2019 inspection or have a plan associated with it for our 2019 hearing which will be at AZA in September 2019. Ms. Dean continued, So to meet our AZA accreditation, the Zoo will be completing deferred maintenance items such as repaving guest pathways.For those who have come out you would have seen that we have several yellow markings and that is because we are trying to make sure that we don't continue the pattern of guests tripping. A lot of it is from tree roots that have busted up the guest pathways over the years. That is very important. Next is new carnivore containment for the leopard and the lion. That means current carnivore containment standards require assessable mesh, which is the AZA standard. The wire we contain our leopards and lions in rusts. There are some issues that come with that. New roofs on several buildings and new HVAC and electrical systems are in the queue. We know several of our electrical panels are out of date and need to be updated. We are also looking at newer and safer patron fences throughout the Zoo. We are needing new animal containment all throughout the East Barn. We also need new fencing throughout the Zoo Farm. We need repairs to several buildings. We need new decking for the alligator. We also need repairs to the tiger exhibit. All of these are Urgency One (1) big ticket items. One (1) thing not pointed out in the deferred maintenance slide is that we have several underground leaks that happen every year and part of that $2.2 million bond will help those issues as well. Ms. Dean went on, Then $1.5 million of the bond is designated for the final phases of our Zoo entrance. The Zoo entrance is a $3 million capital project and is part of the first (1St) phase of the 18 REGULAR MEETING September 24, 2018 Zoo's Master Plan. We are leveraging $450,000 of Regional Cities funding and we also raised $1.5 million of private funding that includes a landmark $500,000 gift. That is the largest gift in the Zoo's history. The Zoo's new entrance is designed to accommodate more guests per year and overall improve the flow of entry to the Zoo. Since 2014 when we formed the first (1St) private- public partnership with the City of South Bend and Venues, Parks & Arts, the Society has raised over $3.5 million in funds for new capital projects. The Zoo entrance project will address several issues. ADA compliant bathrooms and thoroughfares are big ones. We know the ways into our Zoo, right now, are not ADA compliant. Both hills are not ADA compliant. Several of our restrooms were grandfathered into non-compliance. This new building will be completely ADA compliant as well as have a family restroom. A new point of sale system is in the cards as well as our current point of sale system is archaic. There will be improvements to our gift shop as well. There will be twice as much space for education and classes and then a dedicated group and field trip entrance as well.That entrance also has a lot of needs.That is a general overview of the projects for what that$1.5 million plus the $2.2 million will be going toward. Randy Rompola, Barnes&Thornburg with offices located at 100 N. Michigan Street, South Bend, IN stated, We are serving as Bond Counsel for the financing. The Ordinance is a parameters ordinance which means it provides for the issuance of these bonds with a maximum interest rate of six percent (6%), a maximum principle amount and a maximum term. The intent is that once the bonds are sold we would have a rate locked in and we expect it to be less than six percent(6%). As part of the approval process, we need to identify not-to-exceed amounts and that's why those are set forth in the Ordinance. The bonds per the Ordinance are to be payable from the Economic Development Portion of the Local Income Tax.There are some bonds outstanding and these bonds would be issued on parity with those bonds. The Ordinance also approves a form of financing agreement with the Zoological Society. The bond proceeds, once the bonds are issued, would be deposited with a bond trustee. The Zoological Society would be spending the proceeds on the project. The bond proceeds would be released from the trustee to pay for those costs upon approval of a City representative. What is typical in these economic development transactions is a process by which the payment requisition would come to the City,the City would sign off and it would go to the trustee to be sure the monies are being spent for the projects referenced in the ordinance. Herschel Frierson,Crowe LLP with offices located at 135 North Pennsylvania Street,Indianapolis, IN, stated, We are serving as municipal advisor to the City on this bill. As Randy laid out,this sets the max parameters. Currently, looking at the market we are expecting about four percent (4%) but again, until we price the bonds we won't know that for sure. This is just more of a framework of what we come into. Councilmember Oliver Davis stated, Thank you all for the work you are all doing and for the presentation. I know we've talked about it being this bond and everything else being spread out over some time. If it was done in a shorter length of time, say ten(10)years,would we save money in doing it from that standpoint instead of having it extended out when you consider all the interest and everything else from that standpoint? Mr. Frierson replied, I will say the shorter the life of the bond, you'll be paying less in interest. At this particular point in time, I don't have that difference but certainly in the bond issue you will be paying less in interest. However, you will be paying higher in debt service to reduce the principle amount in a shorter period of time. Councilmember Oliver Davis interjected, Question for you. Given our financial situation having a double A (AA) rating and everything else, are we able to then, with all of our financial situation, pay it with shorter terms and pay more monies?That's what I would like to see instead of it being spread out if we are able to do it. You know, it's like the issue of wanting to finance your house over thirty (3 0) years or fifteen (15) years. If you are able to do it in fifteen (15) years, it makes better sense. Or on a car note, when I was going through a tough time I did it in six (6). When I was going through a better time I did it in three(3). And so,and we save money that way. So given the strength of the City's finances, are we able then to do it at a shorter time to save on interest and money while getting the Zoo their needs. At the same time we could save the taxpayer's money and we could use that money on other issues. Mr.Rompola replied,From a rating agency standpoint,the higher the annual payment on the bond, the more stress you have on finances. So you may actually place at risk the great rating the City 19 REGULAR MEETING September 24, 2018 has. The more expenses you have on an annual basis reduces, perhaps, the cash reserves that you may have so you may in the long run benefit by paying less interest but in the short term you may affect your credit rating negatively which may increase the cost of borrowing for other projects you may have. Councilmember Oliver Davis interjected, Well in this case, given the fact that it is $3.7 million, with that, I mean that is a lot of money when you consider it all. Given our whole City budget and everything else it is a small piece of that. So with only $3.7 million of it, would that low number, even though it's millions, add to the stress going on? Would it automatically take the bond rating down? Wouldn't our strength already cover that if it's only $3.7 million? Mr. Frierson replied, I think the bigger question is more of what the plan is and working with the Controller's Office. Projects will be coming out each and every year from a revenue standpoint and we will be consulting with the City, if they desire,to shift priorities or put a heavier burden on that revenue. As it stands right now in working with the Controller's Office, it has made more sense to stretch it out over twenty (20) years to keep the cash flow at a minimum level that is coming out. But that is definitely something you will have to talk about with your Controller's Office. Councilmember Oliver Davis interjected, I mean, if we did it in half the time,how much stress are we talking about? Me picking up water versus this is more stress, if I only pick up this it's less stress, but I can handle both of them without it hurting me. My thing is, there is sometimes stress and we use those words stress but it doesn't always mean that it doesn't bother me worth a dime or worth a thing. And then the second(2nd) thing on that is, what is the difference in payments? If you have a fifteen(15)year mortgage versus a thirty(30)year mortgage,yeah,you go from paying something from maybe a five hundred dollar ($500) a month mortgage to maybe a six hundred dollar($600) a month mortgage, but at the same time you pay it off and then you can utilize more when you look at the City strength down the long road too. Yeah it's a little hit per month but at the same time it's going down from that standpoint. So it's a give and take in apples from that standpoint but I think it helps us, as we look at these kinds of things to shorten while we have the financial strength of our credit. We may not always have that and my thing is when we have good credit, even in a home standpoint, they are still fifteen (15) year mortgages. But over the course there are rough times, and those are for longer periods of time, the thirty (30) year mortgage and everything else. Since we have a good time and we are in that, why can't we operate like that? That is where my concern is. The Zoo gets their money, the taxpayers get theirs, we're in good times, why can't we go for that? Mr. Frierson replied, That is something we can evaluate with the Controller's Office in lieu of other commitments they have coming out of those revneues. Councilmember Oliver Davis interjected, Is there a way that we can look at those revenues and delay this vote? Not because of anyone opposing the Zoo not getting their monies but a delayed vote where we can look at what the difference is like a mortgage. Are we paying six hundred dollars ($600) or five hundred dollars ($500) and can say that and then in two (2) weeks we can send that information, make it public, we have less money we are paying on the interest, the Zoo gets all their money,we get our savings for the City, it's a win-win for everybody else and we save money. Can we do that? Mr. Frierson replied, The way this bill is currently laid out is it states it will not exceed twenty(20) years. As we work with the Controller's Office, if it is the desire of the City and it makes financial sense of the City,we do have the opportunity to reduce the life. It is just not to exceed twenty(20) years so there is that opportunity to do that. Councilmember Oliver Davis interjected,The only reason I would,I mean,I like that and I'm glad you shared that. I would like to do something that is not to exceed ten (10) years but before I can do my due diligence in suggesting that to my colleagues, I would just like to see the numbers. You see what I'm saying? Because of the fact that I can see the numbers when my mortgage person told me what the advantage was for thirty (3 0) years or fifteen(15) years. I looked at the numbers and I was about to go to thirty (3 0) years and he said to me, if you go fifteen (15), here are your numbers and I looked at the numbers and went wow that is a little bit more but it saves in the long run. So I don't have these numbers and you don't have those numbers. I'm just saying if we could get those numbers within a short period of time, we can still make the decision and they still can 20 REGULAR MEETING September 24, 2018 have their money but we can take a look at it. Or we can just go ahead, if my colleagues feel safe enough, I'm ok with your wisdom, with their wisdom, and look at a ten (10) year deal and not a twenty(20)year deal. I'm even ok wit that but if somebody wants to look at those numbers, I think we are ok, I just prefer we look at a ten (10) year deal and make an addendum to that resolution for ten(10) years instead of twenty (20). I would be greatly in support of that. Mr. Rompola replied, As Herschel has said, the way it is set up it is only set up in parameters. So, certainly, there is nothing stopping the City from issuing bonds at less than a twenty (20) year term. The issue would be exactly what that should be. If rates were to go up a little bit and we lock in a ten(10) year term,that might not be fiscally prudent, but... Councilmember Oliver Davis interjected, But we don't know those numbers right now. Mr. Rompola interjected,And we won't know them,and I'm sorry to interrupt,but we won't know the actual interest rate until we sell bonds. So we have to have some parameters and that is what this bill sets out to do. Again, at the six percent(6%)interest rate,we certainly would never expect the tax exempt bond rate to be at six percent (6%). That would take us back to the 1980s but the term is the same way. If it is a twenty (20) year term and the bonds end up being eighteen (18) or seventeen (17) years or something less than that,that gives the Controller and the Administration the flexibility, based on what Herschel has said, all of the other parameters that we are focused on the coming years. It isn't next year or the year after it is the tenth (10th), the twelfth (12th), the thirteenth (13th) the fifteenth (15th) of whatever year of that financing know that the cash flow is there to make the debt service without reducing revenues. Councilmember Oliver Davis interjected, Granted but, Mr. Palmer, if we wanted to keep that and vote on it toni ht, is there some type of language that we could have? Because to me, if we just leave it where it is at twenty (20), there is no incentive to get it done at the ten (10) years or whatever or the five (5) years or whatever from that standpoint. I'm cautious to just say twenty (20) years from that standpoint. I would like to see this at a ten (10) year standpoint or a shorter amount of time so we can work on that. Do you see where my head is on that? Bob Palmer, Council Attorney with offices on the 4th floor of the County-City Building, South Bend, IN, replied, I do. I think the incentive would be the Controller's Office and the Administration to make the best economic decision on behalf of the City. If they look at the numbers and determine ten (10) years is a better fiscal decision for the City, they have the opportunity to do that, already, as it is written now. Councilmember Oliver Davis asked, As it's written now they would do that? Mr. Palmer replied, Yes, all this bill sets is the maximum term to be twenty (20) years. When it comes time to sell the bonds, we anticipate the Controller's Office, with the advice of Counsel, to determine the most economically beneficial term.They have the authority to do that based on what is in the bill as written. Councilmember Oliver Davis interjected, One (1) last thing and then I'm done. You said that they won't know that information? Mr. Rompola replied, Well, no. What Herschel referred to, we can look at different terms and different estimates of interest rates and predict what the rate might be at a particular maturity. So you would know whether ten (10), twelve (12) or fourteen (14) years, what the annual payment would be over the life of the bond at each of those maturities. So before the bonds are sold, the Controller's Office, with Herschel's advice, can determine what the economics would look like based on an assumed interest rate for each of those maturities. The idea is that we come to you, and this is very common for all types of bonds, with parameters so that the Controller's Office would have that authority,just prior to the bond sale, to work with Herschel to come up with the best economic deal for the City. Councilmember Oliver Davis interjected, And so when that comes up, will you all be able to provide us written documents of which one (1) you went with and why you chose that option that we can get to our public and we can see that? It would say we were able to handle a ten (10) or fifteen(15) and we handled it this way and that kind of stuff. I would like to know we are not just locked into a twenty (20)without any kind of parameters,that is my issue. 21 REGULAR MEETING September 24, 2018 Mr. Rompola replied, Right, and you're not. You are not locked into a twenty (20) year with this bill. It will be the Controller's Office, with Herschel's advice,making that determination just prior to the bond sale telling the underwriter here is what we want to see in terms of the bond maturity schedule. Councilmember Oliver Davis interjected, And you can give us that information right when you make that final decision and send it to the Council and we will be able to share that with our people? Mr. Frierson replied, I will work with the Controller's Office to communicate parameters of the final decision that will be economically feasible for the City. Councilmember Oliver Davis stated, Ok. I look forward to that document and if that could be a regular pattern because I haven't seen one (1) of those in the past but I will be requesting more going forward because there is a history of us saying twenty (20) plus twenty (20) then thirty(30) and everything else. We are getting a lot of pressure on us because it is working in the short term but people are saying what are we doing for our future? What are we doing from that standpoint and can we cover some of that under our good days because we don't know what challenges come down the road? As much as we can take care of in sun shine it would be better for us to do that instead of wait for the rain. I appreciate your time. Councilmember Jo M. Broden asked, So you were tasked with that twenty (20) year framework, right?Not to exceed that. So this is coming to us at this point and I want to know if you looked at other lengths and terms and crunched those numbers? You obviously came with a final product that is capped at twenty (20) years. So let me know that you either were asked to look at shorter terms and what those were and then if it's you or whoever else in the Administration, why did we hone in on the twenty (20)year cap? I understand the flexibility but does that make sense? Mr.Frierson replied,Yes and I appreciate the question. So,in working with the Controller's Office, in lieu of$3.7 million, we looked at the, and the desire was,to the look at a twenty (20) year. One (1) of the other caveats of that was looking at the asset of what was to be built. We wanted to stretch out the life of the bond to match the life of the asset. If it is the desire of the City, we can look at something shorter but in lieu of the life expectancy of the asset, that was the desire. Also, there are other potential commitments from the economic development portion of the Local Income Tax. We can look at something shorter. Councilmember Jake Teshka stated,I think you just hit on something that is important and that we touched on in Committee. I want to understand this too. I would much rather pay $3.7 million in cash. But what Ms. Hockenhull said in Committee was that this will be paid out of a fund that already has commitments that we are obligated to. So in essence, and this gets to the complexity of City budgeting and all of the different funding sources but, because it is coming out of EDIT funds, and we are already obligated to pay certain other things, we can't exceed a certain amount of debt service in a year. Is that correct? Mr. Rompola and Mr. Frierson confirmed, That is correct. Councilmember Oliver Davis interjected, The only thing about that is the fact that we help set those priorities and a part of that EDIT Fund and so therefore if we know this is going to help us save on this, then we can adapt or massage some of the priorities. When I was getting my house and the gentleman told me that it would be better to look at a fifteen (15) year mortgage, I just adjusted some of the other things because if I adjusted that bill to pay for that one (1)then I would get my house paid off faster. So when I looked at my priorities and he made that presentation to me, all of the sudden my priorities changed. You know, because, here I could have my house in fifteen(15) years and whatever I was going to spend that other one hundred dollars ($100) on per month,I can adjust that to something else or get a second(2nd)job and teach more clients and take care of that and then take care of this. So,while your point is well taken,if we see that other option then since we control with the input of the Controller's Office of what our priorities are, then we can say yeah we have these things but if we can save money with this then let's adjust our priority that way and come back from that way. So I see what that is. Do you see what I'm saying? 22 REGULAR MEETING September 24, 2018 Councilmember Jake Teshka stated, I think what Councilmember Davis is getting at, and what I've heard a lot during this budget cycle is,this body's main responsibility is these sorts of financial decisions. So for us to make this decision based on these maximums makes us kind of uncomfortable. Councilmember Oliver Davis interjected, That is correct. You hit it one hundred percent (100%). And so, therefore, if we could take it and prioritize. The idea of the Zoo getting their needs met, we are not debating that. The issue is in terms of tax dollars,if we have the cash, let's pay it. Since we are going to finance this,what is the shortest option possible that we may adapt things or adjust things to still take care of what we need and then take care of everybody else. That is all. Mr. Rompola replied, I would like to make two (2) points. I think the Controller's Office is well positioned to make that determination for the City. Also, these are being paid from the economic development portion of the Local Income Tax. That is based on the income taxes collected in the community and, yes,while the economy is good those taxes tend to rise. But if the economy drops off, that income tax tends to drop as well. So it is not as level as property taxes have been historically.Again,with working with the Controller's Office, you want to make sure that not only are we looking at priorities and how you spend the money you receive, you also have to be cognizant of the money coming into the City. Mr. Frierson stated, And, as mentioned before,this is not the only obligation that is coming out of the EDIT portion. Working with the Controller's Office, in lieu of other projects coming out and anticipated,the desire is to account for that and make it twenty(20) years. It leaves room for other opportunities as well. Councilmember Jake Teshka stated,We are not doubting the Controller's Office is well positioned to make these decisions. I think Councilmember Davis' concern is that they have been elected to guard the City's finances. Having a better picture would be helpful. Councilmember John Voorde stated, I think the Council also needs to be mindful of the fact that earlier this evening, we said we would like more money for roads, quality of life and neighborhoods. Every time we obligate ourselves to larger bond payments, that means less flexibility in our budget and less options to address other priorities. I like the house financing analogy too. I understand it. Things can get tight sometimes. I respect the fact that this Administration and the Controller's Office has the wherewithal to evaluate the things they would like to do now and likely do in the future and keep their options open so that this Council and the next Council has options.And,if we happen to get lucky enough with a good economy and money comes in greater than expected,we can always pay that bond off early to avoid longer term finance charges. Just like on your house, if we are in a position to make double payments as my ex-wife has done,we can do that.I'm on the side of there being more money for other capital improvements like streets and roads and all those basic services the City is responsible for. Councilmember Oliver Davis stated, I'm at peace. Councilmember Tim Scott stated, I respect what Oliver Davis is saying. However, this decision started with the Park Commissioner Board. It also went through the City and they have a legal obligation. The two (2) gentlemen in front of us also have a legal obligation to not commit to irresponsible bonds. There have been other people looking at this way before it got to us. We are not the sole responsible party in bringing this along. I think it is up to the petitioners and presenters to decide if they want this to be heard the way it is. Again, this is a maximum and a placeholder. We know the interest rate is probably not going to be at six percent(6%)and this Council has done this same thing over the years. It is a placeholder and it is only a maximum. We have to respect the presenter and the petitioners. If they want a vote on this,they need to ask for a vote and I think they have by bringing this forth the way it is written right now. The other point is we can renegotiate lower interest rates down the road.I also agree with Councilmember Voorde that bonds can be paid off earlier. I respect the petitioners and if they want a vote on this, I think we should vote on this tonight. Councilmember Oliver Davis interjected, I respect the petitioners also. I appreciate all wisdoms but we also have a fiduciary responsibility ourselves as elected officials. We have to do that. It is imperative for us to us to challenge you with these questions and to put a fire under you to let you know we are looking at you challenging you. We pay you big bucks to have you come up from 23 REGULAR MEETING September 24, 2018 Indianapolis which is great and I appreciate your wisdom. You are a very intelligent person that I can look at and I can see. Your insight is very great and all of the other ones but we also have insight here and intelligence here,too, that we have to have those conversations. And I appreciate this conversation whether we go thirty(3 0)years or fifteen(15)years.I don't think we are fighting over the issue of irresponsibility here.I am not challenging any of that.I am talking about priorities. Therefore, I'm glad that we had this because our citizens are asking us these questions through emails. For me to say the Administration is doing all this, they will ask why we are up here. We have to ask these kinds of questions and we have to challenge you and those kind of things and that is where I am. Thank you. Councilmember Gavin Ferlic stated, Just as a reminder, we are still in the question portion. Councilmember Regina Williams-Preston asked, Didn't I hear that voting on this tones doesn't preclude us from getting a ten(10) year bond or looking at different terms? Mr. Frierson replied, That is correct. Mr. Rompola stated, To clarify, if you vote on this tonight, you approve the parameters. Then it would be incumbent upon the City Administration to review with Herschel what makes most economic sense. It wouldn't necessarily come back before you for a vote. Councilmember Oliver Davis interjected, I'm ok with it not. My thing was not about a vote but to be informed on the understanding. My thing is, that is where I said it was an issue of once you determine that, I need to know that. Often times when you all meet afterwards, there is some kind of report and I have not seen that. Every time we do a bond. That kind of information I would like to have. Again, when we are getting emailed or Facebooked or all the other kind of stuff that you don't consider, it is just great to have. Councilmember Jo M. Broden asked, What are the total hours spent by the Bond Legal Counsel? Mr. Frierson replied, We are at a fixed fee so it is not based on a hourly rate. Councilmember Jo M. Broden followed up, And how far back does this go? Mr. Perri replied, They started working in Maw. Councilmember Jo M. Broden then asked, So the Zoo has had clean audits? Ms. Dean replied, Yes, every year. Councilmember Jo M. Broden asked, And the audit from the last AZA visit, could you round out the record and forward that to Council? Ms. Dean confirmed, Sure. Councilmember Jo M. Broden stated, Thank you. I think it is important for transparency's sake. The other question I had was a legal question with regard to the agreement and what happens once it expires. Is that an exclusive authority of the Park Commissioners Board? Will there be any Council involvement? Benjamin Dougherty, Deputy City Controller with offices on the 12th floor of the County-City Building, South Bend, IN, replied, I emailed it to you Councilmember Broden. It is a copy of the agreement recently approved this past June 2018 by the Park's Board and PZS to take effect January 1, 2018. That is the new fifteen (15) year agreement we have been discussing. The term of that agreement, which is a lease and management agreement for the Zoo property is limited to that fifteen (15) years. It will expire and conclude on December 31, 2033 unless there is an extension that is usually negotiated and agreed upon to take it beyond that date. That is the provision that states this that is referenced in the email I had shared. You will find it in Section two point four(2.4). I can't say where the renewal provision you had in mind comes from. Councilmember Jo M. Broden stated, It may have been from the existing. 24 REGULAR MEETING September 24, 2018 Mr. Dougherty stated, Perhaps so, I am not familiar with that agreement. Councilmember Jo M. Broden stated, So article two (2) section two point four (2.4), there is a provision. So that is within this agreement, correct? Mr. Dougherty confirmed, Correct. Councilmember Jo M. Broden followed up, Now with regard to article thirteen (13) section thirteen point one(13.1),the mayor has the authority to exercise an appointment to the Zoo Board. I want to know if the mayor is going to exercise that authority. Ms. Dean replied, He already has. Dave Nufer is our mayoral appointee through the end of 2019. He was sworn in last year. Councilmember Jo M. Broden then asked, So in terms of payments, 2019, that is the bulk of this, right? So, $3.7 million and then again in 2023 is $1.1 million. So those will hit. Actually I will hold that thought and come back to that. If I can recall the question I had, I will. This is a big deal for the City of South Bend, right? I think this Council as a whole has been very generous in terms of recognizing the deferred maintenance and wanting to hit those. I guess in terms of partnership going forward and the timing of your scheduled improvements, I don't want to be a fund and done kind of entity because this is big. I am not going to assert a Council Member on a Board or even we make an appointment to your Board because of you track record and what you've done. But I do think we would all benefit from the Council being brought along earlier in the process in this continued relationship. Ms. Dean replied, Yes and as we discussed in Committee earlier I am more than happy to attend any meeting to update on anything anytime. I would appreciate that opportunity. Councilmember Jo M. Broden stated, This is kind of a lot like my relationship with my kids. I ask a lot of questions because I care. I don't think there is anybody on this Council that has any other motive for asking questions other than being informed and being the best stewards. I think you have done an excellent job. Thank you for that. Councilmember Sharon L. McBride stated, I know there have been concerns regarding this back in July so I appreciate the communication. Bonds have been paid off early and I guess I want to state that if there is an opportunity to pay off the bond early, I ask we continue on with the voting tonight. If there is a way for us to be fiscally responsible and have cost savings, I am in support of that. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. Bob Urbanski, 21533 Golden Maple Court, South Bend, IN, stated, I'm a retired South Bend businessman. Since my retirement I've been spending my time on charitable and civic projects. About five (5) years ago I was asked by one (1) of the Zoo Board members to get involved when they were promoting the public-private partnership. I found out some facts and did so. It has been an incredible success since the City has agreed to do that program. In fact, listening to the City Controller, the City is wanting to do that with more things like that. It is a great example. Most currently, I've been asked to help with the deferred maintenance issue which needs correction before June 2019. The work that is involved in it is staggering. The amount of money,time, effort and planning is remarkable. I understand the mortgage analogy but from my own construction experience, delaying this is going to make it more expensive. It is imperative to get this moving as soon as possible. I humbly ask for your support for the Zoo. There are amazing things happening there and it is an amazing place. Alex Georgio-Rueben, 825 South Logan Street, South Bend,IN, stated I live in River Park and the Zoo is basically my neighbor. I am the parent of a special needs child. The updates to the Zoo to make it ADA compliant and to add a new family restroom would be extremely beneficial to my family and to other families in my position. I'm asking for you to approve this. The Zoo must evolve to maintain its current exhibits not only for safety and public enjoyment but also for animal welfare. 25 REGULAR MEETING September 24, 2018 John Anella, 124 South Jacob Street, South Bend, IN, stated, I would love to talk about the bond structure but I will make the case for why this is a good investment for the City of South Bend. I am speaking tonight about your continued investment in the Potawatomi Zoo. I am speaking as a neighbor and as a long-time Potawatomi Zoo Board. I live a mile from the Zoo and this morning, like many mornings,I woke up to the roars of the lions. I can't imagine there are many place where you can wake up or go to sleep with an experience like that. They are roaring from an enclosure that is badly in need of repairs and upgrades.Not only are those to ensure the health of our big cats but to also ensure the renewal of our AZA accreditation in 2019.There are many reasons to support the Zoo. Time does not allow me to mention them all so I will mention one (1) that is very important to me. A few years back we entered into the public-private partnership with the City. I can attest to its success. The partnership has resulted in great improvements to the quality of the zoo for the visitors, employees, animals and it has done so while saving the City money. A few years ago we conducted a water usage audit and discovered the Zoo was one (1) of the largest users of water in the City. In 2015, the Zoo used 54 million gallons of water and by 2016 we had cut that to 18 million gallons. That is a reduction of two thirds (2/3). That is 36 million gallons of water, annually, that was needlessly being dumped into the sewer system and being treated by the taxpayers and it didn't need to be. That saved the City hundreds of thousands of dollars and it also lessened the strain on our sewer system.As a resident of the Sunnymede Area,we know that sewer system can be over taxed at times. With nearly 250,000 visitors a year, it rivals Coveleski Stadium as one (1) of the top attractions for families in the area while also educating thousands of school children each year. This example of water conservation demonstrates the Zoo not only promotes conservation and protection of animals and their habitats globally, but also demonstrates its commitment to protecting and conserving the environment right here in our backyard. This is just one (1) example of why it deserves your support. I'll leave you with this. I'm not lion when I say you should support and visit the Potawatomi Zoo. You will be otterly amazed by how turtlely awesome it is. Mark Neal, 108 North Main Street, South Bend, IN, stated, I am the President of the Park Commissioners Board. For the record, the private-public partnership entered into five (5) years ago had the goal of creating a better asset at a lower cost without any impact on the then-City employees that worked at the Zoo. That was the commitment set forth by the mayor. The Zoological Society, very willingly, embraced that and I think they have more than honored that commitment. They have record attendance and record fundraising. They first(1St) addressed us to renew the agreement for five (5) more years. We then had the conversation about what all the needs were and the deferred maintenance needs are significant. You go to the zoo and you can see them. Consequently, the discussion then became if we could figure out a way to provide more money sooner with less money over the long-term, what that would look like. That is when the fifteen (15) year agreement came into play. We realized we could do a lot more now to make this asset a higher quality asset that should allow us to continue to attract more people, raise more private funds, have a better Zoo, a better quality of life asset all at a lower cost to the community. I think that has been demonstrated. I will personally take a mea culpa, and I apologize to Council. As the Park's Board, we did not come to you to say here is what we are looking to do to figure this out. It was something we looked at as a normal course of business but fifteen(15) and twenty(20) years is a long time. It was a commitment made that stemmed from a great partnership, we have all benefitted from that partnership and,therefore,we should continue it.Regarding the bond,there was a lot of discussion about the term. I would ask we do that as soon as we possibly can because we need to get the deferred maintenance going before June 2019. I would appreciate your support and thank you all,very much. Sue Kesim,4022 Kennedy Drive, South Bend,IN, stated,I am here as a citizen advocate so I have multiple comments from people. Sharon Banicki could not be here, and you all know her. She just had three words for you,the Council. Those three words were oh hell no. So,that was from Sharon. The animal advocates, I'm on a lot of animal groups, they want the Zoo closed. They don't want it supported at all. Some members of the public thought that the ground breaking before the approval of the funding showed that the Council is just a rubber stamp to the Administration and that the citizens have no voice. Others thought the parks have millions of debt and if they want this funded, they should use some of those funds. The citizens are tired of funding the parks and they want you to fund things like roads, water, sewers, address crime and lead issues. They feel your priorities are not straight. The total cost for twenty(20)years at six percent(6%)is too much. That is directly from me. I think if you give them that leeway, they will take it. I think it is up to the Council to say no, it is ten (10) years at five percent (5%) or less. We have this whole debt discussion, I think Council needs to reign some things in and exert some control on that. Anyway, 26 REGULAR MEETING September 24, 2018 for the most part the citizens think that your priorities need to stop being things like this and it needs to be the basics. If you're going to take a bond out, it needs to be something that everyone benefits from in their neighborhood. They are tired of seeing what could be their neighborhood, road or sewer funds. Someone said I'm tired of the shit in my basement, I don't give a whatever about the Zoo. Someone else said I don't give a GD about this, I want my roads fixed. I think you aren't understanding the frustration of the citizens of where your priorities are and where you are putting our money. So those were the comments I got, thank you for your time. Jesse Davis, P.O. Box 10205, South Bend, IN, stated, As our elected official and as a totally different body of the government than the Mayor's Office and the Administration, the Mayor's Administration are the ones who dream up these wonderful things. We elect you people to make sure our needs are taken care of, not wants, but needs. We think you should concentrate a little more on that. There were only three (3) Council Members up there, maybe four (4), who were even here when this became a public-private partnership. I sat through many Council Meetings where the Zoological Society wanted to, basically, take over the Zoo. It wasn't just a question of whether employees would be affected but where the tax payer's dollars would be invested and the Zoo would be saved. Mr. Perri came up here a while ago and said we were paying$1 million,now we are at $900,000 and now we will be at $800,000. We still aren't getting a return on our investment because if you're going to hand over a bond for $4.2 million, if you divide that over twenty (20) years, we are still paying out $266,000 a year. That is with no interest as it is just on principle. If we are only saving $200,000, we are still in the hole. When the Zoological Society took over they wanted to protect the employees but you also need to protect us. We don't want to keep sinking money into this. We were told it would be a grand Zoo once the Zoological Soicety took over. The burden was going to be off the tax payer for the most part but we aren't seeing that. The numbers do lie. Bottom line is if you pass this, the return on our investment is worthwhile. I took my grandson there lasts and I was not impressed. You said deferred maintenance. To me, deferred means it should have been done but it hasn't been done. Why hasn't it been done? Why did we put it off? It is increasing the cost and it is increasing the burden on the tax payers. That doesn't make sense. That is not fiscal responsibility for you guys to sit here and keep voting this stuff through. This being the time heretofore set for the Rebuttal on the above bill, the presenter was given an opportunity to rebut. Mr. Perri stated, I will be brief. I understand these things can be complex, a little difficult to navigate at times. There is no standard playbook for these types of things. This public-private partnership is one(1)that has proven to be fruitful and this financing package you are being asked to approve tonight is part of a very long agreement that we think will provide a significant return on investment. It leverages that public-private partnership,their time and resource,it decreases the burden on the tax payer and position's the Zoo to improve and expand its impact well into the future. I appreciate your support. Councilmember Tim Scott stated, I want to thank Marcy Dean for sending out the email to all the Council Members thanking them and giving them information. We need to do our homework on this and reach out to the parties we need to for questions. I do want to say that I do have respect for all my Council Members and their concerns and their due diligence. We have to look at it at different levels. I do it differently than other people and I didn't mean any disrespect earlier. There are time when we have to do our homework and I appreciate everyone being open and available for those questions and comments. Councilmember Oliver Davis stated, I liked what Mr. Anella did. So, I dearly love the Zoo. But to make this bearable, in terms of what this bond is dealing with, especially in light of the fact that on August 10th, 2018 it was announced that we had already pledged $3.7 million. Since we had already pledged that it was already out there,tonight showed we were not out-foxed by asking all these questions so we can do our due diligence to show that we have done all of our work. Whether that is through meetings or everything else, we have to show that because people think we are a rubber stamp.I really wish the ground breaking would have been done after all of this stuff tonight because it would have been better because it looked like everything was done ahead of time. So while it is good for us to ask these questions, the public needs to hear these answers themselves. I know a lot of things but if you don't know them and the people watching on Facebook or reading our records, they need to know that we ask questions. That is why I said to show that we are not 27 REGULAR MEETING September 24, 2018 out-foxed and that we can do that and so, therefore, I am glad to have had the discussion. I think in future references we will all work together. Councilmember Jake Teshka stated, I just want to echo some sentiments and thank Ms. Dean for all the information you provided. Thank you,Aaron, for the great work heading up VPA and Mark on the Park Board. Thank you for being available in helping with this information. Obviously there are timing issues and everybody has shared their thoughts on that. But the deferred maintenance piece, it was the City that deferred a lot of this. We hit on this in the Committee today. I wish we could pay cash for this and I wish there was extra money to pave roads with. I recognize that there are different funding sources. I think we have an obligation to this City asset for the maintenance that we, even though I wasn't here, had deferred. Thought I wish we paid for it a while ago and wish we could just pay cash for this,I look forward to many years of seeing what this good money goes towards. Thank you. Councilmember Jo M. Broden stated, I feel informed and ready to vote. I think this is a big economic development piece. I am ready to vote. Councilmember Regina Williams-Preston stated, One (1) of the things that was talked about in Committee was how valuable an asset the Zoo is to this community. With the conservation work that is happening,and all of these improvements,it will be a destination that will continue to enrich the children's education and bring more people to the City. Looking at this by itself I think it is easy to ask why we are putting all this money into this,what about roads?But looking at the budget as a whole, I have been very impressed with how the Administration has responded to what residents and Council Members have asked for in terms of really important things like curbs and sidewalks. That is going up fifty percent (50%) next year. There is money going to homeowners to fix up their homes. There are a lot of other pieces and I see it as a balance. I am always an advocate to the basic needs but it is also important to have those quality of life place making things. I want to thank all the folks and I want to thank the residents for keeping us on our toes making us look through those numbers and have those conversations. Even though it is almost 10:00 p.m., I think the conversation was rich and was important to have. We are doing a good job. Thank you all. Councilmember Karen White stated, I am listening to all the conversations, all of which are very rich and needed. I think that shows we are doing the work and asking those tough questions. That is our role to do so. Each Council Member has the right to ask questions. I really appreciate the Administration,the Bond Counsel,members of the Park Board and Mr.Perri all coming to respond to all the questions asked. I feel very comfortable moving forward. One (1) thing I would like to put on the table is that this is the result of not being able to respond to the maintenance needs. As we begin to look at other areas within the City, I think that is a conversation we need to have as we move out of this budget process. What other areas are we looking at that we have not been able to respond to?Either we pay now or more down the road. That is a good conversation to have. We are trying to refine the budget process and one (1) thing we talked about was the first (1'� discussion, next ye , being about debt. We are going to look at TIF and those areas before we look at everything else. I encourage the Council Members, if you have any questions, concerns, recommendations after we get through this budget process. Every year we try to do a better job. This is good intellectual discourse. I'm ready to move forward. Councilmember Tim Scott made a motion to send Bill No. 44-18 to the full Council with a favorable recommendation. Councilmember Jake Teshka seconded this motion which carried by a voice vote of nine (9) ayes. RISE AND REPORT Councilmember John Voorde made a motion to rise and report to full Council. Councilmember Jo M. Broden seconded the motion which carried by a voice vote of nine (9) ayes. REGULAR MEETING RECONVENED 28 REGULAR MEETING September 24, 2018 Be it remembered that the Common Council of the City of South Bend reconvened in the Council Chambers on the fourth floor of the County-City building at 9:53 p.m. Council President Tim Scott presided with nine (9) members present. Councilmember Oliver Davis made a motion to recess. Councilmember Tim Scott seconded this motion which carried unanimously by a voice vote of nine (9) ayes. Be it remembered that the Common Council of the City of South Bend reconvened in the Council Chambers on the fourth floor of the County-City building at 9:58 p.m. Council President Tim Scott presided with nine (9) members present. Bob Palmer, Council Attorney with offices on the 4th floor of the County-City Building, South Bend, IN, stated, By State law, Council cannot vote on the TRANSPO budget until ten(10) days after public hearing has passed. That cannot be voted on until October 8th, 2018. BILLS —THIRD READING BILL NO. 36-18 THIRD READING ON AN ORDINANCE AMENDING THE ZONING ORDINANCE FOR PROPERTY LOCATED AT 1939 & 1947 CHARLES STREET, COUNCILMANIC DISTRICT NO. 4 IN THE CITY OF SOUTH BEND, INDIANA Councilmember Gavin Ferlic made a motion to adopt Bill No. 36-18. Councilmember Jo M. Broden seconded the motion which carried by a roll call vote of nine (9) ayes. 37-18 THIRD READING ON AN ORDINANCE INITIATED BY THE AREA PLAN COMMISSION OF ST. JOSEPH COUNTY, INDIANA AMENDING CHAPTER 21 OF THE SOUTH BEND MUNICIPAL CODE, ARTICLE 14 SUBDIVISIONS TO DELETE CERTAIN LOT DESIGN STANDARDS THAT DUPLICATE LOT SIZE STANDARDS IN THE ZONING ORDINANCE, AND DELETE FLOODPLAIN DEFINITIONS THAT HAVE BEEN UPDATED IN THE ZONING ORDINANCE Councilmember Gavin Ferlic made a motion to adopt Bill No. 37-18. Councilmember Karen White seconded the motion which carried by a roll call vote of nine (9) ayes. 41-18 THIRD READING ON AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING, ADOPTING AND APPROVING THE SOUTH BEND PUBLIC TRANSPORTATION CORPORATION'S 2019 BUDGET AND LEVYING THE TAX AND FIXING THE RATE OF THE TAXATION FOR THE PURPOSE OF RAISING REVENUE TO FUND THE SOUTH BEND PUBLIC TRANSPORTATION CORPORATION, SOUTH BEND, INDIANA, FOR THE FISCAL YEAR ENDING DECEMBER 31, 2019 29 REGULAR MEETING September 24, 2018 Councilmember Gavin Ferlic made a motion to continue Bill No. 41-18 to be in Council Portion Only on the October 8th, 2018 meeting of the Common Council. Councilmember Jake Teshka seconded the motion which carried by a voice vote of nine (9) ayes. 42-18 THIRD READING ON AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING ADDITIONAL FUNDS FOR CERTAIN DEPARTMENTAL AND CITY SERVICES OPERATIONS IN 2018 OF $672,857 FROM ECONOMIC DEVELOPMENT STATE GRANT (#210), $1,000,000 FROM DCI GRANT FUND (#212), $5,000 FROM GIFT/DONATION/BEQUEST FUND (#217), $699,700 FROM LIABILITY INSURANCE PREMIUM RESERVE (#226), ($960,000) FROM LOIT 2016 SPECIAL DISTRIBUTION (#257), ($337,632) FROM LOCAL ROAD &BRIDGE GRANT (#265), $28,100 FROM ECONOMIC REVENUE BOND (#281), ($55,000) FROM COVELESKI STADIUM CAPITAL (#401), ($124,050) FROM UDAG(#410), $28,100 FROM REDEVELOPMENT GENERAL (#433), AND $650 FROM SMART STREETS DEBT SERVICE (#756). Councilmember Gavin Ferlic made a motion to adopt Bill No. 42-18. Councilmember Karen White seconded the motion which carried by a roll call vote of nine (9) ayes. 43-18 THIRD READING ON AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, FOR BUDGET TRANSFERS FOR VARIOUS DEPARTMENTS WITHIN THE CITY OF SOUTH BEND, INDIANA FOR THE YEAR 2018 Councilmember Karen White made a motion to adopt Bill No. 43-18. Councilmember Gavin Ferlic seconded the motion which carried by a roll call vote of nine (9) ayes. 44-18 THIRD READING ON AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF AN AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $4,205,000 OF CITY OF SOUTH BEND, INDIANA, ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 2018 (POTAWATOMI ZOO PROJECT) AND AUTHORIZING AND APPROVING OTHER ACTIONS IN RESPECT THERETO Councilmember Gavin Ferlic made a motion to adopt Bill No. 44-18. Councilmember Karen White seconded the motion which carried by a roll call vote of nine (9) ayes. BILLS ON FIRST READING BILL NO. 30 REGULAR MEETING September 24, 2018 45-18 FIRST READING ON AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, SETTING THE ANNUAL SALARY FOR THE MAYOR FOR CALENDAR YEAR 2019 Councilmember John Voorde made a motion to send Bill No. 45-18 to the Personnel and Finance Committee for their October 8th, 2018 meeting for Second Reading and Public Hearing. Councilmember Gavin Ferlic seconded the motion which carried by a voice vote of nine (9) ayes. 46-18 FIRST READING ON AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, SETTING THE ANNUAL SALARY FOR THE COMMON COUNCIL MEMBERS FOR CALENDAR YEAR 2019 Councilmember John Voorde made a motion to send Bill No. 46-18 to the Personnel and Finance Committee for their October 8th, 2018 meeting for Second Reading and Public Hearing. Councilmember Gavin Ferlic seconded the motion which carried by a voice vote of nine (9) ayes. 47-18 FIRST READING ON AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, SETTING THE ANNUAL SALARY FOR THE SOUTH BEND CITY CLERK FOR CALENDAR YEAR 2019 Councilmember John Voorde made a motion to send Bill No. 47-18 to the Personnel and Finance Committee for their October 8th, 2018 meeting for Second Reading and Public Hearing. Councilmember Gavin Ferlic seconded the motion which carried by a voice vote of nine (9) ayes. 48-18 FIRST READING ON AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA FIXING MAXIMUM WAGES OF TEAMSTER EMPLOYEES FOR CALENDAR YEARS 2017-2020 Councilmember John Voorde made a motion to send Bill No. 48-18 to the Personnel and Finance Committee for their October 8th, 2018 meeting for Second Reading and Public Hearing. Councilmember Gavin Ferlic seconded the motion which carried by a voice vote of nine (9) ayes. 49-18 FIRST READING ON AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, RE-AFFIRMING ORDINANCE NO. 10472-16 AND FIXING THE ANNUAL PAY AND MONETARY FRINGE BENEFITS OF SWORN MEMBERS OF THE SOUTH BEND POLICE DEPARTMENT FOR CALENDAR YEAR 2019 Councilmember John Voorde made a motion to send Bill No. 49-18 to the Personnel and Finance Committee for their October 8th, 2018 meeting for Second Reading and Public Hearing. Councilmember Gavin Ferlic seconded the motion which carried by a voice vote of nine (9) ayes. 31 REGULAR MEETING September 24, 2018 50-I8 FIRST READING ON AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, RE-AFFIRMING ORDINANCE NO. 10549-17 AND FIXING THE ANNUAL PAY AND MONETARY FRINGE BENEFITS OF SWORN MEMBERS OF THE SOUTH BEND FIRE DEPARTMENT FOR CALENDAR YEAR 2019 Councilmember Gavin Ferlic made a motion to send Bill No. 50-18 to the Personnel and Finance Committee for their October 8th, 2018 meeting for Second Reading and Public Hearing. Councilmember John Voorde seconded the motion which carried by a voice vote of nine (9) ayes. 51-18 FIRST READING ON AN ORDINANCE FIXING MAXIMUM SALARIES AND WAGES OF APPOINTED OFFICERS AND NON- BARGAINING EMPLOYEES OF THE CITY OF SOUTH BEND, INDIANA, FOR THE CALENDAR YEAR 2019 Councilmember Gavin Ferlic made a motion to send Bill No. 51-18 to the Personnel and Finance Committee for their October 8th, 2018 meeting for Second Reading and Public Hearing. Councilmember John Voorde seconded the motion which carried by a voice vote of nine (9) ayes. 52-18 FIRST READING ON AN ORDINANCE OF THE COMMON COUNCIL OF SOUTH BEND, INDIANA, ADDING ARTICLE 15, SECTIONS 14.157 TO AND INCLUDING 14.159 OF CHAPTER 14, OF THE SOUTH BEND MUNICIPAL CODE REGULATING THE USE AND OPERATION OF UNMANNED AIRCRAFT SYSTEMS Councilmember John Voorde made a motion to send Bill No. 52-18 to the Information and Technology Committee for their November 12th, 2018 meeting for Second Reading and Public Hearing. Councilmember Gavin Ferlic seconded the motion which carried by a voice vote of nine (9) ayes. 53-18 FIRST READING ON AN ORDINANCE AMENDING THE ZONING ORDINANCE AND SEEKING A SPECIAL EXCEPTION USE FOR PROPERTY LOCATED AT 121 EAST TUTT STREET, COUNCILMANIC DISTRICT NO. 2 IN THE CITY OF SOUTH BEND, INDIANA Councilmember John Voorde made a motion to send Bill No. 53-18 to the Area Plan Commission for their October 16th, 2018 meeting and to the Zoning and Annexation Committee meeting for Second Reading and Public Hearing on October 22"d, 2018. Councilmember Gavin Ferlic seconded the motion which carried by a voice vote of nine (9) ayes. UNFINISHED BUSINESS BILL NO. 18-55 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING A PETITION OF THE AREA 32 REGULAR MEETING September 24, 2018 BOARD OF ZONING APPEALS FOR THE PROPERTY LOCATED AT 1715 S. DALE AND 1717 S. DALE Councilmember Gavin Ferlic made a motion to send Bill No. 18-53 to the Zoning and Annexation Committee for their October 81h, 2018 meeting for Second Reading and Public Hearing. Councilmember Karen White seconded the motion which carried by a voice vote of nine (9) ayes. 18-56 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING A PETITION OF THE AREA BOARD OF ZONING APPEALS FOR THE PROPERTY LOCATED AT 340 E COLFAX AVE Councilmember Gavin Ferlic made a motion to send Bill No. 18-56 to the Zoning and Annexation Committee for their October 8th, 2018 meeting for Second Reading and Public Hearing. Councilmember Karen White seconded the motion which carried by a voice vote of nine (9) ayes. NEW BUSINESS Councilmember Oliver Davis stated, I wanted to honor the Fire Fighters that went to North Carolina. Let's do a resolution for that next meeting. Councilmember Regina Williams-Preston stated, A young woman came tonight and had to leave with her young children. I will make copies of her concerns and get them to all of you. She currently lives in Beacon Heights and her living conditions are absolutely deplorable. I will forward that information along. Councilmember Jo M. Broden stated, The contract with Solid Waste Management is coming up for a vote. If anyone wants information, reach out to me. Councilmember Oliver Davis stated, TRANSPO is searching for a new General Manager. I will invite you to meetings on that. PRIVILEGE OF THE FLOOR Sue Kesim, 4022 Kennedy Drive, South Bend, IN, stated, I spoke with the Chief and I made a suggestion that they look into getting a grant for seniors to get home alarms that live in high crime areas. Maybe they could get a company like SimplySafe to donate units. The Fire Department could put them in. I think REAL Services could determine who is in need because they know those seniors living on a fixed income. I think it would give some peace of mind. I'm suggesting that as a project and I know the Chief is extremely busy but I did ask him to reach out to REAL Services and partner with them. As you know,I'm always looking out for my seniors and this is something I thought about. They have lived in those homes for decades and now they are afraid to go outside and go to sleep at night. How can we make that better for them? If you have any resources, by all means put it out there. I think we need to help our seniors sleep better at night. Just wanted to put that out there. Samuel Brown, 222 East Navarre Street, South Bend, IN, stated, I wanted to talk about my drug house on 229 Sadie Street. The man is out doing his thing. I tried to call and find the status on him. The bottom line is I'm going to try a new approach. I tried calling the owner of the house he said he can't do nothing to help me. I'm going to talk to the drug dealer. Hopefully we have a good dialogue. He has young lady who is pregnant up in that house. I'm going to tell him what I want, man to man. I've been fighting this for seven(7) or eight(8) years. I'm not afraid. I could get this taken of if I wanted to but that is not the right thing to do. That is the old Samuel Brown and I've changed my life around. So I'm going to go to this drug dealer and have some dialogue with him. All I want him to do is to quit selling drugs out of that house. I want to ask him what I need to do 33 REGULAR MEETING September 24, 2018 to have him stop selling drugs around my grandkids. He might blow me off. Thanks for listening to me but if I'm not here next time don't bother coming to the funeral because I'll be dead. Councilmember Oliver Davis stated, We'll do a resolution, man, we'll do a resolution. ADJOURNMENT There being no further business to come before the Council, President Tim Scott adjourned the meeting at 10:15 p.m. 34