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HomeMy WebLinkAbout01-28-08 Personnel and Finance Standing Committee_._ -~-.. --- '> - Personnel and Finance Standing Committee l - ' 2008 South Bend Common Council The January 28, 2008 meeting of the Personnel and Finance Committee of the South Bend Common Council was called to order by its Chairperson, Council Member Thomas LaFountain at 4:17 p.m. the Council's Informal Meeting Room. Persons in attendance included Council Members Dieter, Varner, White, Kirsits, Henry Davis, Rouse, and Puzzello;, Mayor Stephen J. Luecke, Interim City Controller John Murphy, Public Works Director Gary Gilot, City Engineer Carl Llttrell, City Clerk John Voorde, Assistant City Attorney Jeff Jankowski, Martha Lewis, Mrs. Kopola, Hershel Frierson, Ken Marks President of the South Bend Firefighters Association Local No. 362, Jim Scucz Business Agent for Teamsters Local Union No. 364, Nancy Sulok of the South Bend Tribune and Kathleen Cekanski-Farrand, Council Attorney. Council Member LaFountain noted that the Committee Members include Dr. Varner, who serves as Vice-Chairperson, Council Members Oliver Davis, AI "Buddy" Kirsits and himself, who serves as Chairperson. Bill No. 82-07: Amending Section 2-213a of the South Bend Municipal Code Addressing the Table of Code Violations and Penalties: Council Member LaFountain noted that Assistant City Attorney Aladean DeRose sent a letter dated January 25th (copy attached) requesting that Bill No. 82-07 be continued until February 25, 2008. Dr. Varner made a motion, seconded by Council Member Kirsits that Bill No. 82-07 be recommended to be continued to February 25th, at the request of the Petitioner. The motion passed. Bill No. 89-07: Proposed Ordinance to Increase Maximum Wages of Teamsters Employees for 2008 and Approving Wages for 2009 and 2010: Council Member LaFountain then called for a formal presentation on Bill No. 89-07 which would amend Ordinance No. 9791-07 fixing and increasing the maximum wages of City Teamsters employees for calendar year 2008 and approving Teamster Employee wages for 2009-2010. Mayor Stephen J. Luecke made the formal presentation. He stated that Bill No. 89-07 would established City Teamster maximum wages with a 3% increase for 2008, 2% increase in 2009 and a 2% increase in 2010. He noted that when the Council passed Ordinance No. 9791-07 last September, before the state law deadline, that the Teamsters had not yet voted upon the City's proposal. Subsequently the Teamsters did accept his offer for three (3) years. He noted that often non-bargaining employees Personnel and Finance Committee January 28, 2008 Page 2 receive similar increase as those proposed for the Teamsters. He has filed an ordinance which will receive first reading this evening which would also increase the salaries of non-bargaining employees to the 3% level. Mayor Luecke stated that he is requesting that both ordinances be made retroactive to January 1, 2008. Interim City Controller John Murphy stated that the proposed Teamster increases "are affordable and within budget". He noted that not all salaried positions are filled. The City Administration will monitor the situation and if necessary will file an additional appropriation. Jim Scucz Business Agent for Teamsters Local Union No. 364, with offices located at 2405 East Edison in South Bend noted that he and Robert Warnock III are in favor of Bill No. 89-07. No one from the public spoke in opposition. Council Member Kirsits made a motion, seconded by Dr. Varner that Bill No. 89-07 be recommended favorably to Council. The motion passed. Bill No. 08-10: Resolution Regarding The Lease for the New Public Works Service Center: Council Member LaFountain called for the formal presentation on Bill No. 08-10 which addresses an amendment of the lease with the City of South Bend Building Corporation dated March 1, 2001 and an Addendum to the Lease dated April 23, 2001 regarding the construction and equipping of a new Public Works Service Center Facility. Interim City Controller John Murphy made the formal presentation. The resolution will authorize the city of South Bend Building Corporation to refund its 2001 COIT Lease Rental Revenue Bonds. As a result of this action, the city should realize a savings in debt service costs of about $90,000 per year for years 2008 through 2021. Hershel Frierson of Crowe Chizek, Indianapolis, Indiana noted that with declining interest rates, an interest rate of 3.7% will equal between $88,000 to $92,000 of savings per year. In response to a question from Dr. Varner, Mr. Frierson stated that the projected yearly savings is the amount after the cost of issuance. Re-issuance costs are calculated to be about $185,000. Council Member Kirsits made a motion, seconded by Dr. Varner that Bill No. 08-10 be recommended favorably to Council. The motion passed. Personnel and Finance Committee January 28, 2008 Page 3 In response to an inquiry from Dr. Varner, Mr. Frierson stated that there are additional Bills which will be filed with the Council which Crowe Chizek is working on which will result in additional savings for the City of South Bend. There being no further business to come before the Committee, Council Member LaFountain adlourned~meeting at 4:30 p.m. r~~ M~rfiber Thomas La Fountain, Chairperson Personnel and Finance Committee Attachments