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HomeMy WebLinkAbout03-25-19 Personnel and Finance C°UTx 8 > i \, E C yUYPA , 186 OFFICE OF THE CITY CLERK KAREEMAH FOWLER, CITY CLERK PERSONNEL& FINANCE MARCH 25, 2019 4:35 P.M. Committee Members Present: Karen White, Jo M. Broden, Regina Williams-Preston, John Voorde Committee Members Absent: None Other Council Present: Jake Teshka, Tim Scott, Gavin Ferlic, Sharon L. McBride Other Council Absent: Oliver Davis Others Present: Kareemah Fowler, Graham Sparks, Bob Palmer Presenters: Dan Parker, Ben Dougherty, Dan Buckenmeyer, Eric Horvath Agenda: Bill No. 07-19- March 2019 Transfer Ordinance Bill No. 08-19- March 2019 Appropriation Ordinance- Civil City Funds Bill No. 09-19- March 2019 Appropriation Ordinance- Enterprise Funds Committee Chair Karen White called to order the Personnel and Finance Committee meeting at 4:35 p.m. She introduced members of the Committee and proceeded to give the floor to the presenters. Bill No. 07-19- March 2019 Transfer Ordinance Dan Parker,City Controller for the City of South Bend with offices on the 12th floor of the County- City Building, stated,This is a budget transfer ordinance. Looking at the detail section behind this bill(referencing the Council Member Agenda Packet which is available in the City Clerk's Office), you'll see that this ordinance does not increase or decrease the amount of appropriations. It just moves money from one(1)bucket to another.The largest dollar value in there is the$2.225 million related to the donation from the Pokagon Band. All that is doing is moving it to a different bucket so that we can track that in case they want to know how exactly that money is being spent. We can track that separately. INTEGRITY' SERVICE' ACCESSIBILITY JENNIFER M.COFFMAN BIANCA L.TIRADO JOSEPH R MOLNAR CHIEF DEPUTY/DIRECTOR OF OPERATIONS DEPUTY/DIRECTOR OF POLICY ORDINANCE VIOLATION CLERK EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227 W.Jefferson Blvd.I South Bend,Indiana 46601 I p 574.235.9221 I f 574.235.9173 I www.southbendin.gov CITY OF SOUTH BEND I OFFICE OF THE CLERK Committee Chair White asked, Can you give us some feedback in regard to that money received from the Pokagon Band? I want to make sure I have a clear understanding of how those funds have been allocated. Mr. Parker replied, Yes, so, this $2.225 million is the money for Howard Park specifically. That money is going to be received over the next four (4) to five (5) years. We've gotten $445,000 in from that and that is the first (1St) payment of five (5) that will add up to the total. There is also a $500,000 donation they are making toward the Bowman Creek project and we've gotten$100,000, and that is also the first(1st) of five (5)payments for that. Committeemember Jo M. Broden stated, The account numbers and account names are the same. Is,there a sub-number or some other detail, since this is a transfer? Mr. Parker clarified, For the Pokagon donation? Committeemember Broden replied, Yeah. Mr. Parker replied, The reason it is a different division of Parks and Recreation is, so we can separate that money and track it separately. It is#1101 versus#1150. Committeemember Broden stated, Sorry, my error. I apologize. Committee Chair White then opened the floor to members of the public wishing to speak in favor of or in opposition to this legislation. There were none. She then turned the floor back to the Committee for further comment or main motion. Committeemember Broden made a motion to send Bill No. 07-19 to the full Council with a favorable recommendation. Committeemember Regina Williams-Preston seconded this motion which carried by a voice vote of four(4) ayes. Bill No. 08-19- March 2019 Appropriation Ordinance- Civil City Funds Mr. Parker stated, Again, if you flip to the detail portion of this, unlike the previous bill, this actually does increase appropriations, and this is for the Civil City Funds as opposed to the Enterprise Funds. So, what we've done this time is split up the additional appropriations request into four (4) buckets. The first (1st) bucket is unanticipated expenses, which is what you would imagine additional appropriation requests are. Those are expenses that were not known at the time of the 2019 budget development and have developed since that budget development. The second (2"d) bucket is supported by new revenue. So, these are expenses related to new grants we have received in since our 2019 budget was developed. The two (2) largest items on there are related to lead grants, a Federal lead grant and a State lead grant we got. So, all those are doing is allowing us to spend the money we received from those grants. The third (3rd) bucket on there is capital projects. So, when we budget capital projects, we know the total amount of the capital project we want to expend,but it's difficult sometimes to know how much we will spend in 2019 versus 2018. So, all of these capital projects have already been approved. They are all related to the My SB Parks &Trails Initiative. The last bucket on there is what I call Administrative Items and, similar to capital projects, these are all items that were budgeted for in 2018 but were not expended in 2018 and they need to be carried forward into the 2019 budget. EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 1227 W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173 TTD574.235.5567 www.southbendin.gov 2 ®CITY OF SOUTH BEND OFFICE OF THE CLERK Committeemember Broden asked, The 2017 Park Bonds Capital, that's a 2017 though, correct? Mr. Parker replied, The bond was actually issued in 2017 but the money is being used for parks projects continually. So, that $500,000 is actually the amount remaining that is to be spent from that bond issuance. Committeemember Broden followed up, And what was the primary reason why that wasn't expended last year? Too many things on the plate, or what? Mr. Parker replied, It has to do with how we're rolling out the My SB Parks & Trails Project. So, the vast majority of the expenses are going to be spent in 2019. So, it's just how these projects are developed. But, they're all related to capital for parks. And, actually, because those are all bond proceeds, we can't spend that on anything else. We are obligated to spend those on park development projects. Committeemember Broden then asked, And your savings in the Disparity Study, where did that come from? Mr. Parker replied, So, the Council approved the Disparity Study in 2018. We only spent around $60,000 in 2018,so,this is just appropriating the rest of that$275,000. The total amount spent will be the amount approved. Committeemember Broden stated, Thank you for that clarification. Oh, I'm sorry, one (1) more. The East Bank and East Race flood damage in 2018, is there any FEMA or any other sources of funding toward that or is that the entire project? Mr. Parker replied, Yes, there will be some FEMA and insurance revenue that will come in to support this. The amount is still somewhat up in the air. Ben Dougherty, Deputy City Controller for the City of South Bend with offices located on the 12th floor of the County-City Building, stated, Long story short, the interaction with the insurance adjuster,who is managing those claims on behalf of the insurance carrier, are pretty lengthy. They involve detail and a lot of conversation between our engineers, both in-house and those that we hire, as well as the adjuster's retained engineering firm. So, at the end of the day, there is a lot of back and forth reviewing the scope of work to replace what was lost. We are honing in on the amount that will be covered and what is what we actually lost, as opposed to enhancing it further from where it was at the time of the flood. So, it is a pretty detailed and involved process, which makes it difficult to pin down a number of how much insurance proceeds we will actually walk away with. But, I can say with some certainty that I, and other including our Safety and Risk Division,are engaged with Engineering and the insurance adjuster and making sure we are focused on getting that right. Someday we will be able to say exactly what the dollar figure is,but we can't quite get there yet. Committee Chair White then opened the floor to members of the public wishing to speak in favor of or in opposition to this legislation. There were none. She then turned the floor back to the Committee for further comment or main motion. EXCELLENCE ACCOUNTABILITY INNOVATION I INCLUSION EMPOWERMENT 455 County-City Building 227 W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173 TTD 574.235.5567 www.southbendin.gov 3 40 CITY OF SOUTH BEND I OFFICE OF THE CLERK Committeemember John Voorde made a motion to send Bill No. 08-19 to the full Council with a favorable recommendation. Committeemember Williams-Preston seconded this motion which carried by a voice vote of four(4) ayes. Bill No. 09-19- March 2019 Appropriation Ordinance- Enterprise Funds Mr. Parker stated, This is the same as the previous bill, but this is for the Enterprise Funds as opposed to the Civil City Funds.Again,we try to get buckets.The first(1st)unanticipated expenses is the $200,000 which will augment the clean-up for the former Drewry's Brewery site. So, $200,000 is requested and will go before the Redevelopment Commission Thursday of this week and then $200,000 is being requested from the Enterprise Fund, specifically, the Consolidated Building Fund. That represents a spend-down from reserves but will kick-off the clean-up for the Drewry's Brewery. The rest of the items on there, under the administrative items, the first (1st) bucket of those are related to debt payments that were due in January of this year. Traditionally, those debt payments are made in December of the year prior to them being due. So, these were budgeted in December of 2018, but they were not actually made until January 2nd, 2019. So, they were budgeted in 2018 and we just need to carry that budget forward into 2019. The last item on there is actually a reduction in appropriations related to the storm water fees. That won't start until midway through the year, so we are reducing expenses that are to be paid from those storm water fees, accordingly. I'm happy to answer any questions you have. Committee Chair White stated, I know for the Drewry's site, I know citizens have really, for a long period of time, been requesting we respond to the unsafe condition. Will we, as a City, actively go after the developer so we can get some of these funds back? Dan Buckenmeyer, Director of Business Development for the Department of Community Investment with offices located on the 14th floor of the County-City Building,replied,As Dan said, this is part of a funding stack.We are requesting$200,000 here,another$200,000 will be requested from the Redevelopment Commission out of TIF Funds and then some Code funding will cover any over and above that when we go to bid. Anything we spend in cleaning up and remediating this property, those funds will be applied to the property tax bill of this property. Another thing important to note is that we are working right now to assure that on the property owner's May bill, in addition to taxes due right now, $70,000 in civil penalties will be applied to it. So, one (1) of two (2) things will happen. The land owner will pay for all the work we have done, to the tune of about,by the end of this year, $500,000, or, the process will start to ensue in which taxes have not been paid and the property will eventually revert back to the City. Committeemember Broden asked, With regard to the reserves in the Consolidated Building Fund, will those be at an adequate level? How would this change that? Mr. Parker replied,Yes. There is close to $2 million in reserves in the Consolidated Building Fund so, this will bring that down slightly,but they will still be well-above their reserve requirements. Committeemember Broden followed up, Ok, great, and then is there any salvage potential for the bricks and items that are there? EXCELLENCE ACCOUNTABILITY I INNOVATION j INCLUSION I EMPOWERMENT 455 County-City Building 227 W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 1574.235.9173 TD574.235.5567 www.southbendin.gov 4 40 CITY OF SOUTH BEND I OFFICE OF THE CLERK Mr. Buckenmeyer replied, Salvage potential is minimal. In our evaluation,the potential to salvage and palletize all the work involved with trying to salvage the bricks, causes the cost of doing so to be too darn expensive. Committeemember Broden followed up, Thank you, and then with regard to the administrative items and the debt payments not being paid until 2019, was there any penalty for those payments being late? Mr. Parker replied, No,they were not actually considered to be late. They were due on January 1st, 2019 and because that is a holiday, they were made on January 2"d and not considered to be late. Councilmember Scott stated, To follow up on Drewry's, there was a Code hearing on February 7thThe owner was here a week earlier, then left and did not show up to the Code hearing. At that time, I believe,he was asked if he was going to respond to this and he hasn't responded yes or no, so,pretty much a no response. Mr. Buckenmeyer interjected, Right, and he passed an appeal period in which he could have appealed this ruling and looked to work with the City. Once again, that period has passed. Councilmember Scott stated, In my opinion, time is up. We have to move this forward for the residents. Committeemember Broden asked, Will there be an updated list with regard to the storm water projects? I mean, there will have to be, but when will that be available? Eric Horvath, Director of Public Works for the City of South Bend with offices located on the 13th floor of the County-City Building, stated, It is available. I thought we sent that out, but I will get the detail and send them to you. A big part of that is going to Western on that sewer separation project there and then we've got a number of small drainage projects we are doing. I'll have to look but I can send you that information. There were few things that got cut and moved them to next year. Then, a couple projects we actually moved to wastewater funding, so, the flooding map we are working with USGS on got moved to wastewater funding as well as the backflow prevention valves, called a tide-flex valve on the storm sewers in the North Shore Triangle area. But otherwise, we had to move a couple of projects out to next year. Committeemember Broden followed up, Is there anything relative to Notre Dame and their property and all of that water that came off of the surfaces there? Mr.Horvath replied,Yeah,there are a couple things in relation to that.We don't have a plan firmed up yet,but we've walked that site a couple of times and have talked about different possibilities to capture that flow coming down. There is also a pipe we are getting cleaned that was blocked, so, a lot of that flow didn't have anywhere to go. Otherwise, we are still working on plans with them. Committee Chair White then opened the floor to members of the public wishing to speak in favor of or in opposition to this legislation. There were none. She then turned the floor back to the Committee for further comment or main motion. EXCELLENCE ACCOUNTABILITY ! INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173 I I U574.235.5567 vwvw.southbendin.gov 5 IDCITYOF SOUTH BEND I OFFICE OF THE CLERK Committeemember Williams-Preston made a motion to send Bill No. 09-19 to the full Council with a favorable recommendation. Committeemember Voorde seconded this motion which carried by a voice vote of four(4) ayes. With no further business,Committee Chair White adjourned the Personnel and Finance Committee meeting at 4:53 p.m. Respectfully Submitted, Karen White, Committee Chair • EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION ! EMPOWERMENT 455 County-City Building 227 W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173 I 10574.235.5567 vwvw.southbendin.gov 6